Recession is imminent...

The signs are showing. Governments all over the world are pumping money to revitalize the economy. Banks are lowering interest rates and increasing credit limits. Compulsory pension fund contributions are being reduced to encourage consumer spending. Hypermarkets are running 24/7 fire sales. And yet the populace are not buying it, preferring to safekeep cash in these troubled times.

Recession

What is recession?

When economy is suddenly affected by drastic changes (e.g. collapse of the US stock market), people are more reluctant to spend money. Hence, businesses have to reduce prices to encourage more consumer spending. But in order to keep prices low, they have to retrench staff or reduce employee salaries. Thus people have less money to spend. The cycle continues.

And here our minister is smiling because our hypermarkets are reducing prices...

KLCI down 10%, trading halted!

This is unbelievable. I wonder how will the MSM spin this?