APEC 2024 Peru. Biden shafted to a corner in the back row. Xi in front row next to Peru's President
6/10/2007
myth 143
Rising cost and prices are bad
I think this is a myth. Cost of living going up, GST up, prices of properties going up, rentals going up, fees going up, salaries going up, all these are actually good for the country. Singapore can only be saved when all the costs are up, the higher and faster, the better.
You don't believe me? The laws of economics are like gravity. What goes up must come down. Any irrational and unjustified increases will strain the system and the system will break. Then all prices and fees and salaries will fall down like apples.We should quickly jack up all the prices.
While we are complaining about having too many foreign talents and workers here and not knowing how to stop the flow, it is starting to slow down. And yes, they are finding it too expensive here to live with the relatively low income vis a vis cost of living. And the shops in Orchard Road will be ghost town if the prices keep going up.
Soon people will stay clear of this place. Only the super rich and real super talents will come. And these are the people that we really need.
Quickly, jack up the prices and see them fall.
Oh, don't you worry, the rising costs are still affordable to the foreign talents, so they will say. Then they will start to compare with New York, Tokyo and London. Of course they will not compare with Bangkok, KL or Jakarta.
ReplyDeleteOh, don't you worry, the rising costs are still affordable to the foreign talents, so they will say. Then they will start to compare with New York, Tokyo and London. Of course they will not compare with Bangkok, KL or Jakarta.
ReplyDeleteThey may whine but the Only thing these foreigners have is Money. So no worries just enjoy the ride, let our assets go up and retire in Bangkok or Chongqing when you have made enough. This place is just our hotel dont get too serious.
ReplyDeleteYes, we should have as many foreigners here as possible! They are your retirement ticket.
ReplyDeleteThere real estate market are really benefiting only a small group of players. Developers, flippers and the government are the main beneficiaries as far as capital gains and tax duties are concerned.
ReplyDeleteThose small guys from the heartland will feel the heat of inflation in the years to come. It seems everyone is rushing to increase prices including hawker stalls and soon the taxi surcharges as suggested, etc
If you are lucky to have made your money, keep it and stay quiet. Let the rest fight among themselves. Dont kaypoh.
if i have invested in a lot of high end properties, i will pray that more rich foreigners will come here and buy them. if not i can go bust servicing the hefty interest rate for the loans.
ReplyDeleteRising prices and costs are neither 'bad' nor 'good', but merely a consequence of human beings exercising their preferences in the market.
ReplyDelete...however... there has been more than usual increase in S'pore's money supply, and lots of lending going on for property and stocks.
I believe there is a (credit) bubble, and it is growing. Will it burst? When? No one can say.
I look on it this way— the market is picking up where it left off in 1996-1997. Before the '97 crash, rents were astronomically high. In '94/'95 HDB's were fetching all-time-high prices. Private sector salaries were way high, some people in S'pore earning more than people in New York with comparable jobs. Expats were getting fantastic packages, en blocs were happening....
Then in '97 CRASH! Crash and burn. Governments quickly blamed George Soros. Mahathir locks up Anwar, and then locks up the assets by imposing severe market controls.
I remember only a few years ago rents were at all time lows—landed properties for below 2k a month, 3 room HDB for under 1k..., the consumer was enjoying himself... but now the market has returned, and picking up from where it left off in '96/'97 before the crash.
So party on lah... those pieces of badly designed dirty paper with the picture of the a dead Malay president is actually worth-LESS, and it will be worth LESS and LESS as time goes on.
I was told Chateau Petrus (Bordeux, of coruse) sales are up. Prices of a 'good' vintage starts around $4k. I know of people (Singaporeans) who won't step into an establishment if they didn't have an inventory of Chateau Petrus, and these buggers and their can drink 4-5 bottles a night—at 15-20k a bottle, that's 60-100k (dirty paper).
So let the good times roll!
Guy beware of economics crisis every decades & is round the cornor soon... Save your $$$ prepare for the worst to come.
ReplyDeleteAs in most bubbles it will get much much much better before it gets worse. I wonder if there should be any need at the end of the day to convince the voting majority that this on-going transformation is good given that it is benefitting only a narrow section of the local populace.
ReplyDeletePeople are already complaining about impending price increases everywhere I go.
what is the problem? no problem if your wage increase is more than 20% or if you are filthy rich.
ReplyDeleteall the increases added will be between 10 to 20% at the most.
but if your increases is less than this amount, sorry lah.
I am really surprised that the feedback unit didnt consider the talk on the ground about "prices" everywhere are going thru the roof. This is a real problem that even the angmohs are sounding out and it is unprecedented that angmohs should worry.
ReplyDeleteFeedback Unit only wants to "hear the good stuff". Price increases are so rampant, and they are talking only about NETS.
ReplyDelete