Picatho's causeries

I told a friend that I had a frugal meal of "Chinese sharkfin" (a figurative expression refers to fried rice vermicelli "meehoon" by Penangists) last night. He immediately japed at me for being too frugal to torture my stomach and teased forwardly that monies couldn't be carried away at a time when our both legs have had strengthened into straight set.

I smiled and retorted that money is indispensable to life, especially during this financial hard time; wasteful acts will make you die first; thrifty acts will make me survive longer. Blithely, both of us had laughed out loudly for our amusing caricatures before our farewell ta-ta.

Yes, neither none of us is wrong nor correct. It's a circumstantial matter of the timing to save or to spend. But I think most of the Chinese are more conservative than Americans of large number who are abundant in living for deficit spending. That's how different culture of spending made different world within countries.

From the economic perspective, nearly 70 percent of activity is derived from consumers. If everyone saves during a slack period, economic activity will decrease, thus making everyone poorer. Deflation as well as the devaluation of liquidity will follow suits, thus making the market into a dead-lock situation just like the marketplace status quo.

On the other hand, if everyone spends and continues to put his money into investments, economy will grow, GDP will surge, development will be boon, thus making everyone richer. The burble game will be back to its spindle. Then you'll see everybody is busying making his job and be able to spend happily.

Recently, economists are reasoning over a point of whether the series of government's financial stimulus would re-instill confidence into the minds of the masses. And when will the market be alive again. Every suggestion does have its own justification and all are really ambiguous.

Despite the w00t & w00t of cash handouts by various governments. My contention is that eventually the market will be back to its normal life as soon as people have forgotten fear, the fear of economy plunging. Usually people tend to forget bad time in short time!