World entering "Great Recession"

Dominique Strauss-Kahn; the head of IMF- International Monetary Fund has named the current recession as “Great Recession” and IMF forecast global growth in GDP- Gross Domestic Product is only 0.5% this year.

The world economic climate is glooming. With deep recession in US and there are a lot of pay cut and cessation of employment happened in the nation, the financial tsunami can hit the ground anytime. To prevent the market being worse; our government has thrown MYR 60 bil stimulating mini package to stimulus the market from slide to the financial crisis.

The RM 60 bil is divided into four levels. It mainly used to create job opportunity and to help the cease of company. The package is not transparent enough to tell whether it would work well or not. And, some people wondering why portion of the fund to be used on education purposes and not mainly use to save the market from the crisis?

Hopefully the package is working well by creating lot of job opportunities and the spending power of the nation will then increase. Besides to save the market from the crisis, our government also needs to look into the solution to prevent the rampant crime rate in the country and to deal with the issue of the foreign labors.

With the great recession is coming, we shall not complacent instead we should cut down the unnecessary expenses (- a reminder to myself as well :p ) and save more. This year will be a tough year to the nation, hopefully the RM60bil would use in a proper way. Last but not least, hope the year of Ox will bring back the “bull” market to the world.