Easy money has been floating around for quite a while...
We are all quite familiar with near zero interest rate.
It has caused a world-wide rise in property prices in almost all major cities. And some people here believe this myth..and they attribute it to the PAP and the strong government that make the property owners here prosperous.
The low interest environment has made it less attractive to save but instead to keep on borrowing and spending. Many borrowed to buy houses and more borrowed to buy more houses and hence the property boom worldwide. On the same note low interest rates kept our saving level low. And the value of thrift is somewhat muddled.
Ms Yellen , at this Friday FOMC should just do it..raise the rate and let the market suffer the pain.
She should not pass the pain and mess to the next generation to shoulder.
Ms Yellen should gesture and send this signal.
We are all quite familiar with near zero interest rate.
It has caused a world-wide rise in property prices in almost all major cities. And some people here believe this myth..and they attribute it to the PAP and the strong government that make the property owners here prosperous.
The low interest environment has made it less attractive to save but instead to keep on borrowing and spending. Many borrowed to buy houses and more borrowed to buy more houses and hence the property boom worldwide. On the same note low interest rates kept our saving level low. And the value of thrift is somewhat muddled.
Ms Yellen , at this Friday FOMC should just do it..raise the rate and let the market suffer the pain.
She should not pass the pain and mess to the next generation to shoulder.
Ms Yellen should gesture and send this signal.
