LIE KY LHL PAP have arranged the economy such that everything in demand will rise except our salaries
Wednesday, October 10, 2007
Singapore Economy : Too Hot to Handle!For the past 2 weeks I've been getting telephone calls from property agents offering to sell my place. To chase these pesky agents away, I told one of them that I'm not interest in selling unless he got me a buyer at $100K more than the selling price of comparable neighboring unit which was sold 3 months ago. 3 days later the agent called back to say he has an eager buyer. Oops, I was forced to admit that I'm not interested in selling my unit because I'll have to look for another one if I did...in such hot market I would really dread being buyer. A friend suggested I take the money, rent a place until the property market crashes then buy at bargain basement prices. I'm not going to sell my home just for money - I'm staying put.
Companies expanding their businesses have been driving up the commercial rental market. I heard from a friend dealing with office property that the sentiment is "now or never". Businesses fear that if they don't sign the leases now, they will be waiting "forever" to get office space for expansion.
MAS which does not control interest rates will probably allow the Sing$ to appreciate against the falling US$....the last I checked the US$ has fallen to multi-year lows of $1.47. Any cooling will have to come from slowdown in major markets such as the US. In the meantime, PM Lee might do what he did in 1996 ...but this time he might get Minister Tharman to do it - PM Lee (then Finance Minister) killed the ultra-hot property market of 1996 with a set of draconian measures that sent shivers down the spine of the most hardened speculators. For property speculators that faithful day in 1996 was like 911 - a day they will never forget. I remember being in office the next day and there were 20 people at the pantry discussing the set of measures - all looking very stunned. Really wonder when the govt will step in this time....perhaps they can invoke the ghost of 1996 just to calm the animal spirits.
Strangely, there're alot of things inflating the govt can't do much about but when it comes to wage inflation, the solution is to bring in more foreign labor. About half the new jobs are filled by foreigners. The population has expanded to a record 4.68M ...the one of the fastest per capita expansion for a nation in the world! The people coming in has caused rentals & property prices to escalate at the same time helps to cool wage inflation. So your wages on average will not rise faster than the things in limited supply like property, fresh fish, concert tickets, medical care etc.
Nice setup isn't it?
RH: MY ACQUAINTANCE, A FORMER POLICE INSPECTOR, AND HIS LAWYER FRIEND, EYEWITNESSED LEE KUAN YEW RIGGING THE 1997 CHENG SAN GRC ELECTION. READ MORE AT MY BLOG ENTITLED "I CAME, I SAW, I SOLVED IT" :
[ALSO AT THE ABOVE BLOG, LIE KUAN YEW's LIES, WRONGFUL JAILING, TORTURE AND BEATING TO DEATH OF INNOCENT POLITICAL PRISONERS]
READ ALSO MARTYN SEE's INTERVIEW WITH ME AT:
MY ARCHIVE OF WORKS AT: