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MAS vs Forbes Magazine
The rising Singapore property has been targeted by Forbes magazine with Forbes contributor Jesse Colombo warning that Singapore is headed for an "Iceland-style meltdown". In 2008, Iceland was brought close to bankruptcy due to the vast over-expansion of its banking system and he argued that Singapore is heading down a similar road.
With the report coming out, the Monetary Authority of Singapore (MAS) moved quickly. The MAS released a statement stating that Singapore is not facing a credit bubble and that "serious observers and investors are not in doubt about the country’s financial health."
Now I give them credit for moving so fast on the report, but that statement is just the wrong thing to say. This is Forbes we are talking about. They don't come any more respected and prestigious than Forbes. You are just not going to get any traction going against Forbes magazine.
What the MAS need to do is argued against the case Mr. Colombo made against Singapore. Mr. Colombo say that Singapore's ultra low interest rates have led Singaporean households and companies to borrow more, fueling a surge in property prices that similar to the US housing bubble which imploded in 2008.
The MAS should be arguing against this. They should state the various steps the Singapore government has taken to cool property prices (weak as they are) and that Singapore's position is hardly unique. For example, China's property bubble is far far worse than Singapore's.
That's what the MAS should be saying, not going after Forbes. When you say "serious observers and investors", you don't get much better than Forbes Magazine.
- http://hardhitting-nobs.blogspot.sg/2014/01/mas-vs-forbes-magazine.html
The rising Singapore property has been targeted by Forbes magazine with Forbes contributor Jesse Colombo warning that Singapore is headed for an "Iceland-style meltdown". In 2008, Iceland was brought close to bankruptcy due to the vast over-expansion of its banking system and he argued that Singapore is heading down a similar road.
With the report coming out, the Monetary Authority of Singapore (MAS) moved quickly. The MAS released a statement stating that Singapore is not facing a credit bubble and that "serious observers and investors are not in doubt about the country’s financial health."
Now I give them credit for moving so fast on the report, but that statement is just the wrong thing to say. This is Forbes we are talking about. They don't come any more respected and prestigious than Forbes. You are just not going to get any traction going against Forbes magazine.
What the MAS need to do is argued against the case Mr. Colombo made against Singapore. Mr. Colombo say that Singapore's ultra low interest rates have led Singaporean households and companies to borrow more, fueling a surge in property prices that similar to the US housing bubble which imploded in 2008.
The MAS should be arguing against this. They should state the various steps the Singapore government has taken to cool property prices (weak as they are) and that Singapore's position is hardly unique. For example, China's property bubble is far far worse than Singapore's.
That's what the MAS should be saying, not going after Forbes. When you say "serious observers and investors", you don't get much better than Forbes Magazine.
- http://hardhitting-nobs.blogspot.sg/2014/01/mas-vs-forbes-magazine.html
