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Visitors to my website will recall that way back in June, when I first launched my website, I posted an article which I wrote on the 19th April 2008, entitled: Pak Lah’s Cronies Are Bleeding Money But They Are Also Stuck Not Able to Liquidate.
This is what I wrote:
“I will let you in on a secret. Jet fuel price is skyrocketing. But, what has this got to do with Pak Lah’s cronies? Well, many of them have directly and indirectly latched on the wings of AirAsia – the cheap fare airlines that was the darling of the spin doctors and investors … And the good times are coming to an end …”
So it did not come as a surprise when Business Times reported on 29th August 2008 that:
“Low-cost carrier AirAsia Bhd said that second quarter net profit plunged 95% to RM9.4 million due to foreign exchange losses and high fuel cost.”
Worst is yet to come for this low-cost carrier. Badawi’s cronies are all feeling the squeeze and soon they will all be running to the Government for bailouts.
For the past one year, the Investment Banking scenario has been rather quiet, after the great fanfare that the ponzi schemes hatched by these banks would usher in a new era of financial innovation and super profits for the smart bankers. Again, Badawi’s cronies played the leading role and believing in their own spin plunged head-on into this discredited gambling business.
By end of the year and into the first quarter of 2009, watch out for these banks to fold up and the scoundrels lining up before the Ministry of Finance for bailouts and rescue!
This time round, Badawi’s cronies will not be able to get tax-payers’ monies to cover-up their financial hocus pocus. The Opposition parties in Parliament will scream murder and expose all their misdeeds, now that they control 5 critical states and have the resources to mount effective campaigns to attack the “too little too late” policies of the Badawi regime.
The next big fallout will be in the property sector. Corporate bankruptcies will be worse than 1997. Badawi’s regime is still taking the attitude that it is best to hide all the adverse data. So don’t expect any significant initiatives in the 2009 budget.
The 2009 budget will be a “spin budget”, long on rhetoric about helping the people, but short on substance and meaningful policies that will address the real consequences of the global financial tsunami.
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