Bank Run coming soon?

[eErotica69]

you mean more people are taking loan from them then people depositing with them ? Don't make sense le if they ownself not enough money how they lend people ?

Bro, in Economics, is called Credit Creation.

http://business-finance.blurtit.com/103108/what-is-credit-creation

 

[johnny333]

not too sure about whether confidence level in ringgit dropped.

but i knew that malaysia FD rate is much much higher than sg..so that is why i stupid put my money in Malaysia FD, who knew now currency losses is much more higher than the FD yield

ok, also malaysia loan interest rate also much much higher than sg. well, people still borrow to invest, probably. because all think property easier and faster way to grow rich eg..iskandar housing is forming a bubble now.

also, most malaysian own at least one car or more..this will also increase loan.

Putting all your eggs in one basket is risky. That is why I diversified my investments into 3 countries: Spore, US & Malaysia.

All my Spore CPF investments are under water So I understand your feelings of loss. :(
Investing is a long term affair & in the future the ringgit may recover? That is why I am keeping my Malaysian shares.

With the strong US$ the dividends I am getting from my US investments make up for the losses in Spore & Malaysia