Sunday, June 27, 2010

Layman Analysis of the Economy

I may have sounded quite depressed in my recent posting. While Singapore's economy is running red hot, my postings are getting less optimistic each time.

If you compare the global economy to a patient's health, this patient was in intensive care unit back in 2008. After tons of blood infusion (i.e. stimulus packages), he is now out of danger but will still require life support system to ensure that his condition stays stable. While the whole world is rejoicing and celebrating his near miracle survival, the doctors and nurses are staying vigilant and are more apprehensive of his situation.

Then, after one year or so, his other organs (i.e. employment data, housing) start failing. Worse still, he starts developing other life threatening problem (i.e. euro crisis).

The global economy has not recovered yet. Will he be re-admitted back to intensive critical unit again? Only time will tell. And, that's the reason why we should stay vigilant and not be complacent.

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