He thinks there is such thing as a free lunch

[buff]

couldn't believe what i read in the papers this morning, quoting our finance minister II:

"as a rule, you like ot borrow in a currency that is depreciating so you can pay back less"

i didn't realise that such opportunities to make free money exist in the world...
only m'sians are smart enough to think of these things!

ps moderator: if this is too sensitive, then apologies and pls remove... but couldn't 'tahan' when i read it... what will the world think of m'sians? :mad:

[Fulat]

hey!! Malaysia Boleh mah!!! I am no accountant or know much about forex but if we borrow in USD and payback in USD and our RM is peg the USD, can we actually save money? looks like only the USD is sliding, so if we borrow in Euro or yen, then possibility is we are paying back more? Can the senior managers and directors of accounting firms out there advice me? otherwise, I would like to refinance my home based on depreciating currency....

[Alkapocino]

ps moderator: if this is too sensitive, then apologies and pls remove... but couldn't 'tahan' when i read it... what will the world think of m'sians? :mad:
Ummm..it sounds good to me. ;)

[Dino]

ps moderator: if this is too sensitive, then apologies and pls remove... but couldn't 'tahan' when i read it... what will the world think of m'sians? :mad:

Discussion of current events is encouraged.

[daBoss]

couldn't believe what i read in the papers this morning, quoting our finance minister II:
"as a rule, you like ot borrow in a currency that is depreciating so you can pay back less"
someone needs to explain to him the concepts of finance and economics. it's an embarassment actually - i bet some of his advisors are squirming now...

[Dino]

someone needs to explain to him the concepts of finance and economics. it's an embarassment actually - i bet some of his advisors are squirming now...

He could the the smartest fella among that lot you know!!! :rolleyes:

[KoChun]

He could the the smartest fella among that lot you know!!! :rolleyes:

:eek: OMG!!! I want to apply for that post liao.

[buff]

hey!! Malaysia Boleh mah!!! I am no accountant or know much about forex but if we borrow in USD and payback in USD and our RM is peg the USD, can we actually save money? looks like only the USD is sliding, so if we borrow in Euro or yen, then possibility is we are paying back more? Can the senior managers and directors of accounting firms out there advice me? otherwise, I would like to refinance my home based on depreciating currency....

in theory, the way to make money is to borrow as much USD as possible and then repeg RM.

so borrow USD100 = RM380. later, re-peg to say USD1=RM3.5. only need to pay back RM350. instant saving of RM30. somemore USD interest rates very low... anyone got USD to lend me ah?

m'sia boleh!

[Alkapocino]

:eek: Are you sure? Think again! :)

[buff]

:eek: Are you sure? Think again! :)


:confused:

[song cm]

in theory, the way to make money is to borrow as much USD as possible and then repeg RM.

so borrow USD100 = RM380. later, re-peg to say USD1=RM3.5. only need to pay back RM350. instant saving of RM30. somemore USD interest rates very low... anyone got USD to lend me ah?

m'sia boleh!

Theoritically, he is not wrong but it is quite absurb to make this type of comments....there are too many other areas to consider, the immediate one would be that the US imports would be "cheaper" thus affecting our balance of trade which is oredi at a severe deficit level...

On the personal side...I am all for re-pegging as the USD are severely overvalued...plus my coy has quite a lot of debts in USD...hehe

[Voon Chan]

To borrow fund in foreign currency is not an easy task. A lot of factors & the cost of borrowing (m can be very high) must be carefully examine. Currently there is a lot of foreign fund in the country.

Re-pegging RM? We are exporting our product to the world heavily. This exercise will cause our product & services to be too expensive & difficult to compete with the rest of the world. If we can't export, our unemployment rate will go up. If everyone is looking at a small picture, ie themselves then the economy of our country will suffer as a whole.

[buff]

To borrow fund in foreign currency is not an easy task. A lot of factors & the cost of borrowing (m can be very high) must be carefully examine. Currently there is a lot of foreign fund in the country.

Re-pegging RM? We are exporting our product to the world heavily. This exercise will cause our product & services to be too expensive & difficult to compete with the rest of the world. If we can't export, our unemployment rate will go up. If everyone is looking at a small picture, ie themselves then the economy of our country will suffer as a whole.

wah, this has turned into a chatroom for economists, whether 'real' or 'wannabe' ... as they say, u can ask 3 economist and they will give you 9 opinions....

happy debating ;)

[Alkapocino]

:D Really funny buff. I no need to eat lunch already( too much air due to laughing). You still want to borrow my buckaroos. I still have some. :p