THE BANKING SYSTEM AND THE FALSE ECONOMY

THE BANKING SYSTEM AND THE FALSE ECONOMY
By Dr. Mahathir Mohamad on April 25, 2009 10:11 AM | Permalink | Comments (56) | TrackBacks (0)
(This is the second instalment in a series on the trends that led to the present financial crisis)

1. Another contributor towards the per capita and GDP of the rich countries is the banking business.


2. Banks are apparently allowed to lend more money than they have, sometimes as much as ten times more. When they lend this money which they do not have, it became their asset on which interest can be earned.


3. Effectively they are creating money and earning profits from the money they have created.




4. Real businesses cannot do this. They cannot sell what they don't have nor earn income from services they don't provide. Doing business is therefore far less lucrative than banking. If the per capita and GDP excludes bank earnings then they should not be as high as is shown.


5. Because banks can lend more money than they have, the tendency is to lend as much as possible. In many rich countries banks offer to lend even when the clients are unable to pay.


6. If the banks lend 10 times more than the money they have then their profit must exceed the sum they would expect if they lend only the money they have from capital and deposits.


7. This extra money they earn is not real because it is "created" by the bank out of thin air. Nevertheless the profits earned from this money would be part of the banks profits and therefore the dividends for the shareholders. In the end they would contribute to the per capita income and GDP.


8. Banks also issue credit cards. The credit card holders expend far more than the money they have with the banks. The excess money is regarded by the banks as loans which may be charged a hefty interest of up to 18 per cent.


9. Since credit card holders often hold credit cards from several banks, the amount spent in excess of the money they hold with the banks would be very considerable. These bank loans from credit cards would again exceed the real money or assets of the banks.


10. The banks consider that even if some credit card holders fail to pay up, bank earnings from those who do pay would exceed the loss from non-payment.


11. The credit cards have effectively become money created by the banks. The earnings of the banks are therefore not from real money held in the form of capital or deposits. Yet the interest on loans via the credit cards would add to the profits of the banks. They would boost the share prices of the banks and contribute towards the profits of investors and eventually increasing the per capita income and the GDP of the country concerned.


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56 Comments
By crazy diamond on April 25, 2009 11:04 AM
Dear Tun,

How do you get these info's, such a informative and very good research you have done. If you do not keep telling us i'm sure no body knows it. That why it make your blog very interesting all the time.

BUSTANUL BISTARI BEY




By blink4blog on April 25, 2009 11:20 AM
Sir Tun,

My opinions:

1. I think our country should practice Islamic banking concept and conventional banking is proven failure.

2. The credit crissis in Malaysia is starting to rise, many people on the street owes lots of credit cards and currently most do just covering holes by digging soil from another. As we are all aware that to patch a hole we need more soil from the previous ones.

3. Personally i think the RM2.70 petrol hike is unnecessary and been executed without much consideration, planning and foresight. In less than a year the price of the petrol had came down and because of that action (hike), it had created a flip flop not only to our ex-PM but also the economy down turning faster than it should be. More and more social problems has arrised and the crime rate has never been higher before this.

4. I am slightly relief off the ground that now Dato Seri Najib is our new PM and hopefully he will manages finance of the country better than the ex-PM. Anyhow, it is too early to tell even when you appointed him also never expect such things happened.

have a nice weekend sir.

By Tedlive on April 25, 2009 11:24 AM
My friend from Canada has told me several times how people in the US lost their income, savings and house due to this. They were given loan 10 times more than their earning. People lives in houses that were 10 times more expensive than their monthly income and banks just throw out generous loan with tons of so-call benefits to lure people. Credit cards problem is an open secret where even in Malaysia, that's how bank earn money - from the monthly interest. Generally, Malaysian have 2 credit cards from 2 different bank. How does BNM keep track of this?

By lembahrezeki on April 25, 2009 11:38 AM
Salam Tun...

Proses ini dah berjalan sejak dulu lagi... tetapi kewangan jenis inilah yang menjadikan orang kaya semakin kaya dan orang miskin semakin papa.Kesian kami golongan rakyat pertengahan dan bawahan yang sentiasa berada dalam arus gelombang yang memungkinkan kami karam.

By zakaria ali on April 25, 2009 11:43 AM
Salam Tun dan keluarga.
Whatever you mentioned in your article is the conventional banking system. That is how that make profits from high interest rate, especially the credit cards. In future Banks will increase the car loans interest rate and increse the payment period so that they will earn more profit. The same goes to housing loans.
So, does our Islamic Banking System truly applies to ease the burden of our 1Malaysian?

By zakaria ali on April 25, 2009 11:44 AM
Salam Tun dan keluarga.
Whatever you mentioned in your article is the conventional banking system. That is how that make profits from high interest rate, especially the credit cards. In future Banks will increase the car loans interest rate and increse the payment period so that they will earn more profit. The same goes to housing loans.
So, does our Islamic Banking System truly applies to ease the burden of our 1Malaysian?

By rakyatengah on April 25, 2009 11:45 AM
Assalamualaikum,

Saya menyimpulkan,

Riba itu haram, jual beli itu halal.

Tidak kira riba masa beli rumah, loan kereta, loan ASB. Semua riba itu haram. Dan kerajaan kita telah lama membenarkan perkara ini berlaku.

Mana tidaknya ada parti yang mengelar kerajaan kita ini lebih kepada kerajaan kafir dan kufur. Dalam Al-quran dah nyata riba itu haram, jual beli itu halal. Tapi riba itu jugak yang dibiarkan.

Haramkan Riba di Malaysia.

Kerajaan seharusnya membantu rakyat dalam menyelesaikan masalah riba dari terus menular. 5 billion simulation plan akan terus menambah kehinaan sistem ekonomi sekiranya ruang riba semakin bertambah.

Sekian.


By CSL on April 25, 2009 11:50 AM
Dr. Mahathir,

Case studies regarding Proton for you as below. Can you comment about it?

http://www1.american.edu/TED/proton.htm

By zaman on April 25, 2009 11:58 AM
Salam Sejahtera Untuk Tun dan Keluarga.

1)Tun memang benar apa yang Tun huraikan.Sebalik nya bank bank yang buat cara begini ada lah sama saperti "loan shark". Malah lebih teruk lagi dari loan shark.

2)Salah satu cara kita boleh lah menabung di Bank Islam yang berlandaskan shariah.Dengan ini Bank Islam boleh berkembang dengan pesat.

3)Tun si nazri bongkak tu tak terima apa yang Tun katakan.Sebenar nya apa yang Tun utarakan adalah untuk membetulkan keadaan dan tohmahan bahawa Tun di belakang Najib yang membuat pilihat kabinet.Itu saja.

4)Saya sangat merasakan memang benar tak sepatut nya Najib memilih si bongkak ni.tak mengenang budi dan bersifat kurang ajar.

5)ADA KAH UMNO MAHU MEMILIH ORaNG YANG KURANG AJAR SAPERTI INI.APA KAH RISIKO NYA.

6)Tun teruskan perjuangan murni Mu.Kami sentiasa bersama Mu 100%.
InshaAllah dengan kesabaran,kejujuran dan ketekunan Tun Tuhan sentiasa memantu.

By Mis_bah on April 25, 2009 12:00 PM

Assalamu Alaikum Tun,

Thanks for your latest posted writing. It gave me some pictures and good lesson on how banks and economy system are working. At least you provide good information and explation in an easy way to understand the banking and economic complex operation.

Thank you.

By sujini on April 25, 2009 12:05 PM

Dr Mahathir,

Now I understand why banks are aggressively trying to sell their credit cards.
Certain banks even offered a preapproved credit card application. But this
previlege is of course based on the applicator's standing with the banks concerned.

Banks nowadays, called up their long-standing customers, to offer personal loans
and sometimes up to RM20,000/-, obviously with high interest rates.
One Islamic foreign bank now is giving a personal loan without any collateral as it is
scrambling to get business.

Customers out there must be extra careful to take up these tempting offers
from banks. In difficult times, one has to be prudent in expend.
On the other hand if you are in dire straits, especially if you are a Bumi contractor,
it is good to take up such offer rather than going

By Nothing but wind on April 25, 2009 12:09 PM
Dear Tun Dr M,

I have dealt with several medical doctors as I am provide Accounting service to them. Nearly all of them are weak in Accounting and Economic. However, I have been following your article and conclude that you pose a challenge to the economist at large by providing clear and in dept information using common terms and using only the unavoidable Economic Jargons.

It is very true that only in the east the conditions and criteria for loans and mortgages are very tight. In some Western Countries even those who are bankrupt or blacklisted would be able secure loans and credit cards. The reason is, as you simply put it as "the money they do not posses",so every cent received from them is added to profit directly.

I would welcome a complete overhaul on monetary system and money management to avoid and restrict its abuse.

By BHTan on April 25, 2009 12:17 PM
Dear Tun,

Respectfully, I would like to share with you below as I had worked in the Card Scheme world for a number years.

Your description of Credit Card Companies of printing virtual money may be inaccurate. see example below:

1. A merchant have rendered RM100 worth of its service/product to a card holder in day T.

2. On day T+1, the Card Acquirer of the Merchant (the card acceptance Bank) will pay the Merchant RM100 less the 2-3% commission fee. i.e., the Acquirer is out of its pocket 1st.

3. On day T+2/3, the Card Scheme of the Acquirer (Visa or MasterCard or Amex) will repay the Card Acquirer RM100 less 1% to 1.5% commission fee

4. On the same T+2/3 the Card Scheme will deduct RM100 from the Card's issuing Bank (the Issuer)'s settlement account but reimburses it with 0.5-0.8% of interchange fee.

5. The issuer will bill the card holder at the month statement for the RM100. If the Card Holder can't repay the RM100 in full then the revolving interest of 24%/year will be charged.

From the above example, you can see that the Merchant is funding the RM100 for about 1 month max and then the card holder will need to pay up or to pay for the funding cost thereon.

Hence, there is no such thing as printing free virtual money to fund the payment transaction life cycle in the Credit Card scheme world.

I don't know about the personal or corporate loans. As far the credit card world, what you had said may not be holding the truth, respectfully.

Sincerely yours,

BH

By pemikir negara on April 25, 2009 12:48 PM

Salam kepada idola saya,ayahanda Tun Mahathir..
Saya ingin mengetahui pendapat Tun mengenai "Islamic Banking".Saya ingin tahu adakah bank-bank dimalaysia mengamalkan pure islamic banking atau hanya system bank konversional yang telah rebranding dengan nama islam.Pada pendapat Tun,adakah sistem bank Islam yang boleh dibentuk tanpa dengan mengkenakan interest untuk pinjaman atau simpanan?Saya masih ingat sistem wang dinar yang telah cadangkan oleh Tun dan adakah sistem ini mampu menangkis masalah ekonomi yang telah disebabkan oleh spekulsi kewangan ini.Saya berharap ayahanda dapat menguraikan isu ini, penjelasan ayahanda akan memberikan idea sebenar dalam konteks yang ilmiah.
Terima kasih. Semoga Tun berdua dan seisi keluarga sentiasa dicucuri rahmat Illahi, dunia dan akhirat.

Wassalammu.


By Abi Qalam on April 25, 2009 12:55 PM
Salam YA Bhg Tuan..

Urghhh.. damn credit cards.. that plastic ALONG!!

By nkcheng on April 25, 2009 1:20 PM
The sun is constantly giving the energy to the earth. The plant converted the solar energy and store the energy in the form of carbohydrate, oil (palm) etc thru photosynthesis. The farmers exchange their time, sweat and blood with money, created by smart human being.
The smarter people created the finance system, using their brain to get the cheapest goods either by printing(creating) money or by force.
The poor asians struggling to plant all the raw materials needed to feed the whole world,but the smarter group is enjoying by living on stock market,finance,soccer,insurance,future market,sueing each others....
So we have to follow the rules of game created by the smarter group or we have to think other wise?

By yourlifeilive on April 25, 2009 1:21 PM
WHAT I'VE FOUND MORE DISTRESSING IS THE AMERICAN BUSINESS MODEL WHICH MAKES THE U.S. EVEN MORE PROSPEROUS AT THE HUGE EXPENSE OF POORER NATIONS. ONE GOOD EXAMPLE IS THE COMPUTER INDUSTRY WHERE MOST HARDWARE IS MADE TO LAST FOR ONLY SO LONG AND SOFTWARE SOLD ON A LICENSING BASIS, AGAIN FOR SHORT PERIODS. SUCH PRACTICE BEING MEANT TO SQUEEZE THE CONSUMERS DRY WHILE THEY REMAIN BEHOLDEN TO ITS TECHNOLOGY.

BUT DON'T LET'S DESPAIR TOO MUCH! OTHER COUNTRIES ARE CATCHING UP FAST IN TECHNOLOGY AND IF THEIR COMPANIES WOULD SELL THEIR PRODUCTS AND SERVICES WITHOUT THE STRANGLEHOLD OF THE AMERICAN BUSINESS MODEL, THE TIDE WOULD TURN WITHIN YEARS.

AMERICA WOULD BECOME OUR POOR LITTLE POOR COUSIN.

By Suhaimi on April 25, 2009 1:28 PM
Dear Tun,

I agree with your comments on The Banking System and The False Economy.

‘Money Makes Money’. That is the summary that I can conclude from the Banking System and False Economy topic discussed by you in this blog.

However, the banking system is the best alternative that society wants. Although many banks collapse because of wrong practice especially abroad, we cannot deny the significant of banking system and its role for the success and prosperous of the country.

Although many banks in other countries fall down one by one like domino’s theory, the public still guaranteed with the return by the government. Scenario in Malaysian’s banking sector is different ball game. Action or promotion efforts by the banks are generally backed by government. Government is using banking system to channel the economy plan for the country.

Imagine if the country without banking system. How to stimulate economy plan? What and where is the channel for the money to be disbursed? Who is the party to distribute the fund?
I believe that many commentators in your blog will give many ideas and suggestions such as establishment of special body, special committee, and special group....everything special!!!!!...but In many cases, the title ‘special’ in only on the name. During implementation, the ‘special’ people are the person who manipulate the system for their personal benefits.

Let’s look forward, forget about blaming the banking system and false economy, and focus more on how to improve the banking system and economy. We are now having other alternative in Banking system i.e. Islamic Banking system and economy.

All religions and beliefs either Islam, Christian, Taoism, Buddhist, Hinduism and even atheism want and prefer a good things in all aspects of life.

We should focus more on the banking or system ‘MAIN PLAYERS’ to ensure that the objectives are always on the right track and is in a good hand. Be it government or bankers, only the genuine and transparent people can drive whatever system without any manipulation.

‘Pisau Di Tangan Kanan, Timun Di Tangan Kiri’


By JJJ on April 25, 2009 1:36 PM
salam Tun,

I am tickled at this comment from ABI from a previous post.It is unintentionally funny...


By ABI on April 25, 2009 9:50 AM
You talk as though you are an acknowledged eonomic and financial expert in the world! You stance have always been negative and destructive: That you are always right and wise, but the others are morons! What popycock!
ABI


my comments - (B)ABI! you only know how to talk cock!Jealous ke?...it's obvious your level of intelligence is inferior to Tun's but please do not impose on a great mind.Kail panjang sejengkal...

Otak sepesen dengan PakPandir08,Dr. Ayam Syed Alwi dll. yang sewaktu dengannya,hanya tahu mengutuk dan memperkecil tapi tiada komen membina.Pegi dahhh!!


Jeng3

By bullthegreat on April 25, 2009 1:48 PM
Assalamualaikum Tun,

Ini kali pertama saya memberi komen walaupun telah mengikuti blog Tun ini untuk sekian lama. Saya mengganggap blog Tun ni sebagai salah satu wadah untuk saya mencari ilmu. Terima kasih untuk semua maklumat yang Tun sampaikan, sehinggakan orang awam seperti saya dapat memahaminya.

Saya bersetuju dengan pendapat Tun tentang ekonomi pada masa ini. Apa sahaja yang berlaku pada hari ini adalah hasil dari satu proses doktrin ekonomi yang telah diterapkan sejak beratus tahun, dalam satu rancangan untuk melaksanakan penjajahan moden. Mahu atau tidak, kita sebagai warga dunia pada masa ini terpaksa mengikut apa yang telah ditetapkan itu. Oleh kerana kebergantungan kita kepada sistem ini, kita dengan mudah boleh di cucuk hidung untuk mengikut telunjuk mereka.

Oleh yang demikian, penjajahan terhadap kita hanya boleh ditewaskan dengan merangka satu bentuk pendidikan baru yang akan diterapkan beratus tahun juga. Tidak guna kita berbicara tentang usaha merubah sesuatu jika usaha itu hanya sekadar usaha 10 hingga 20 tahun. Tidak guna juga melakukan satu tindakbalas yang hanya berbentuk luaran tanpa ada satu tindakan jangka panjang. Pada pendapat Tun, apakah berkesan tindakan kita memboikot barangan US sedangkan pada masa yang sama kita mengharapkan mereka membeli barangan kita?

Untuk melakukan tindakan jangka panjang kita memerlukan perubahan dari setiap sudut. Bagaimana melakukannya? Itulah yang perlu difikirkan oleh setiap pihak dari rakyat jelata hingga ke pemimpin negara....tanpa ada apa-apa kepentingan sampingan. Terima kasih.







By raden on April 25, 2009 2:03 PM
Dear Tun
masalah ekonomi yang dihadapi oleh dunia sekarang ini adalah disebabkan mereka tidak memegang asas dan tonggak ekonomi tersebut yang bahwasanya ALLAH MAHA REZEKI

By JJJ on April 25, 2009 2:36 PM
salam Tun,

sorry again for being out of topic..another joker from a previous post.Excerpts from his PHd in 'Pencacai Taik' thesis...


"By Dr Syed Alwi Ahmad on April 23, 2009 12:09 AM
Dear Malaysians,

Let me ask you this question. Where is Multi-Media Super Corridor today ? What about Cyberjaya ? The answer is > MELINGKUP

If you really want to help the plight of the Malays - you must address the Education and Scientific issues in the Malay community. If the Quran contains so much science - as some here claim - then why is it that the Muslim world is so far backwards scientifically ? But of course Mahathir does NOT dare to focus on this issue. He prefers to make enemies."

My comments - By the way he is questioning the Holy Quran,he must be;

1.salah seorang Melayu sesat diSingapura.Maklumlah dah moden...ada beribu melayu tak sedar diri dan murtad disana.

2.An impostor with a grandiose sounding online nickname.Might not even be a real Malay...

3.An ignorant person who did not bother to study world history on how western powers became rich and advanced on the back of conquering,colonizing,pillaging,abusing,raping Arab and Muslim countries for hundreds of years.Slowly but surely the trend is shifting although they are doing their very best to sabotage these newly industrialised economies.FTA's,the media,ratings agencies,NGOs etc. are all deployed to achieve this unsavoury intentions.

4.Bought his credentials online from bogus universities,or graduated in a questionable field of study.Even if he is what he claims to be,there must be something seriously wrong with his mental and reasoning faculties,brought about,maybe,by an incurable disease.

p/s -by the way please jangan bagi malu sedara mara saya kat Singapura.Your views are skeweredly,individualistically tunnel visioned and do not reflect the views held by many who look up to Tun.My sedara mara might even ketuk your kepala if given the chance!

And don't worry,DSNTR will focus on our country's multimedia aspirations to correct the faults of sleepyhead AAB.

This guy is good and capable.That's why the opposition are going all out to discredit him through whatever means necessary including conspiracy theories.

Again,from one Singapore son to another,SHUT UP!


Jeng3




By JJJ on April 25, 2009 2:44 PM
salam Tun,

As usual off - topic...

A BIG THANK YOU to the Perak State Government for auctioning off the Toyota Camry cars.

Malaysians irrespective of political beliefs SHOULD NEVER EVER belittle thier own national aspirations,projects and symbols.

No amount of rationalising their actions can undo their harmful and devious deeds.TRAITORS!

Wassallam

Jeng3

By zabidimohamed on April 25, 2009 2:56 PM
something which i had never thought of. thank you tun.

By Republic on April 25, 2009 3:42 PM
Selamat Petang Tun,


Be it simple interest or compound interest, it is a burden and is against one's will!

Prophet Muhammad's Last Sermon
"...You will neither inflict nor suffer inequity. God has judged that there shall be NO interest(riba)..."

By ramlee on April 25, 2009 4:11 PM
The credit card is actually a plastic money lender or plastic along !

By Samurai melayu on April 25, 2009 4:19 PM
Salam Tun,

Saya setuju pandangan tun dan inilah cara perniagaan pihak bank yg rakyat perlu tahu,teruskan berkarya dan memberi ilmu pada kami rakyat kerana sesungguhnya rakyat sudah mual dgn politik haru biru ini, saya juga ingin mengucapkan tahniah buat PM Datuk seri Najib kerana telah memberikan kestabilan ekonomi yg mana kita boleh lihat bursa saham KLCI terus meningkat,tahniah DSN.
Akhir sekali dikesempatan ini saya ingin mengucapkan ribuan terima kasih pada Tun kerana telah memberikan kami penjelasan dlm segala bidang. Saya doakan agar Tun sekeluarga sihat sejahtera dan semoga dirahmati ALLAH didunia dan akhirat- amin -
sebelum itu saya menyeru dan memohon kepada semua agar melayari weblog saya dialamat
www.malaysianviewers.com, kerana didalamnya terdapat cetusan rasa hati dan pandangan rakyat, saya juga berharap agar pihak kerajaan dapat melayarinya demi kebaikan semua. Sekian wslm

www.malaysianviewers.com

By kamal ahmad on April 25, 2009 4:22 PM
Salam kasih dan hormat Ayahanda Tun.

Well Tun, this is on "false economy" too my comment this time. My pathetic devalued two cents. Anyhow,over these past few years, I have been contacted by many “lawyers” claiming that they are stuck with my inheritance or at least with someone else’s having the same surname with me. The amount has been all in the millions USD. I lost count at USD300+ million. I don’t need their money, I am happy driving my Volkswagen. The sad story of my “purported” uncles or aunties’ demise has always been heartrending; plane crash, rebels got to them, murdered by political rivals, poisoned and so many more. However I take pride that none of them had been hit by lightning. That would have been a cause for concern, I truly hate to say. Anyhow, with so many uncles and aunties claiming to be my relatives there, I never knew my grandfather had “ventured” into Africa before taking the steamer to Malaya from India then. I knew that people think he is Arabic, due to the steamers point of origin, but it has been good PR for business all these years, so we don’t mind. But now, I am even getting marriage proposals from many princesses in Africa. In particular Nigeria. And my kind loving wife has quit choking my pathetic throat at marriage proposal number 35. But Tun, I got this new scam in my email today. Name and address withheld of course (but for a price we do full recitals you know), anyhow, I thought that I share it with all here. Be careful with your emails these days folks. More scammers than spammers now. Do not reply, do not ever reply. They would thrive on that kind of reaction from any of us. Just delete - is my free advice to all. I no stupid.

________________________________________________________________________


From: Withheld

How do you do? Am pretty sure that all is well with you. Just wanted to contact you regarding your interest in a business opportunity. We are offering a solid long-term business that is backed by an easy marketing SYSTEM that anyone can do.

Our business is simple and we use a SIMPLE SYSTEM ... we market a breakthrough health product (HARD CURRENCY) with the power of mouth to mouth and Internet marketing. (EXCHANGE).

I will like to work with you on a very profitable business on currency exchange in all type of hard currency with market value, due to

the current and present Economic recession in the world market on Wall Street and Main Street in the US . In regards to difficulties in capital market, i will like us to do some profitable business on currency exchange, mostly with currency such as USD, Malaysia Ringgit, Euro, Pounds, Singapore dollar and Brunei dollar, i mean currency of high Economic value.

I will supply all this currency to you, under a very special arrangement into your destination of your choice, and you arrange for a banker or a local money exchange who can help us to change the money, not with market value, but with street value base on high interest rate.

NOTE: The amount is up to millions so if you want it to be Singapore Dollar, Malaysia ringgit, USD, EURO, POUNDS or Brunei Dollar also, ( IT DEPENDS HOW MUCH YOU WANT TO CHANGE) , i will supply to you. So that we can work on it.
Eg; I will supply 200,000 Singapore dollars legal tender that can be changed in any bank or any money changer in an exchange rate of 40,000 usd, or i supply 100,000 Malaysia ringgit legal tender in an exchange rate of 10,000usd,

( PLEASE ASK A QUESTION LIKE THIS,,,,IF I BRING 100,000 USD OR MORE THAN THAT HOW MUCH WILL BE MY INTEREST ??? ). X

I will provide details information on how we will work on this issue , immediately i receive your acknowledgment identifying interest in working with me on the subject matters. Looking forward to your urgent reply.

Best regards to your success.

Please kindly contact me at: 044- (withheld)
____________________________________________________________________

By Melayu Boleh on April 25, 2009 5:04 PM
Artikel yang cukup bermanfaat.

Adakah sistem bank yahudi yang mendapat sambutan hangat daripada orang Islam perlu dirombak dan digantikan dengan sistem Bank Islam yang dianaktirikan oleh orang Islam sendiri?

Renung-renungkanlah dan Selamat Beramal...

By NASH on April 25, 2009 5:04 PM
SALAM TUN,

I AM NOT SURE WHETHER YOU ARE REFER TO MALAYSIAN BANKS OR IN GENERAL.
AS FAR AS MALAYSIAN BANKING SYSTEM THE LENDING IS LIMITED BY LIQUIDITY RATIOS AND SINGLE CUSTOMER LIMITS WHICH IS CONTROLLED BY BNM.IT IS NOT THAT EASY AS WHAT YOU SAY. IF BANKS CAN LEND AS WHAT YOU SAY ALL BANKS CAN START LENDING WITHOUT LIMIT AND EARN HUGH INTERESTS WITHOUT BASE. AT THE END THE SHAREHOLDERS PACK THEIR INTERESTS AND BACK OFF.
IN MOST CASES THE FAILURE IN BANKING IS DUE TO UNEXPECTED FALL IN THE VALUE SECURITIES CHARGED SUCH AS SHARES AND PROPERTY MARKET AND MOST OF ALL INEFFICIENT MANAGEMENT PLUS CORRUPTION AND POLITICAL INTERFERENCE.

THANK YOU

By pakbelalang on April 25, 2009 5:33 PM
KUALA LUMPUR: The Umno Supreme Council agreed on Friday to hold a special general assembly at the end of this year to amend party constitution pertaining to the party's election process to make it more transparent, open and democratic.

comment:

Kita lihat setakat mana pemimpin-pemimpin UMNO berani membuat perubahan besar untuk memulihkan semula keyakinan rakyat terhadap parti UMNO.

UMNO must change totally its "rusty image". Even its logo must change.Get rid of the useless "rusty keris" and replace with a symbol that reflects a real ONE MELAYU !! Our cultural, social, educational and political environment have changed drastically and UMNO must "overhaul" its vision and mission to face new challenges. Our needs and aspirations are now totally different from 50 years ago. We are now living in a very complex and sophisticated world and we must adjust accordingly. Our hopes and expectations are very high and we expect UMNO leaders to be more focus and transparent in carrying out their responsibilities. They must be seen at all times to have the highest integrity of the first order or else UMNO will failed miserably to get the respect due from the Malays.

Surprisingly, Tan Sri Rafidah is still in the limelight being appointed as a member of MT.Well, I hope Sharizat is comfortable with her around.

By ahh on April 25, 2009 5:51 PM
yang nie saya sokong tun bile orang tak boleh nak bayar depa kejar teruk teruk cuma cara kejar mintak hutang tuh lebih baik sikit dari ah long jer.

Saya tak kesian kat bank yang bagi pinjam tapi apa jadi pada orang yang mendapat pinjaman tersebut dan tak boleh nak bayar.berjaya dalam negara semestinya tidak kerana ada hutang banyak.Pastu pulak orang yang nak betul2 pinjam tak bagi.

contoh kalau kita takda duit nak buat perniagaan nak pinjam tak bagi tapi kalau kita ada syarikat untung beratus ribu sebulan bukan main lagi datang siap tunduk untuk bagi pinjaman.Tujuan asal nak bagi pinjam pun tak betul semuanya untuk keuntungan.Orang nak pinjam nie orang yang takda duit jer.itu yang bank tak faham sampai sekarang.sebab depa duk buat macam yang tun cakap kat ataslah. Pastu dok salahkan orang.

By anakbudu3 on April 25, 2009 6:08 PM
Assalamualaikum Ayahnda Tun n Bonda,

Bab ni cukup membengangkan!

Zaman laa ni adaka yang tak utang bank? rumah? kereta? pendidikan anak2? insuran? pelaburan? kalu ada yang tak pernah utang bank tu, tabik spring laa. mungkin yang duduk betui2 nun di ulu sana nu, makan apa yang ada di keliling rumah, anak2 tak bersekolah, ke bandar jauh sekali, api, ayaq takdak. Pendek kata mungkin takdak dah kut lagu tu...pekebun kecikpun paling tidak utang koperasi...utang tokey baja, tokey hardware atau tokey perabut...

tengok orang2 besaq yg dapat credit dari bank semata2 nak beli saham, bersepah2. kes MB selangor kena saman ngan Bank Islam sampai 66juta tu apahal? kaya rupanya dia nih!! patutla b.abi kepung dia sangat...rupanya boleh tunggang tegolek tumpang senang...kalu orang politik, terkenal, semudah tu dapat utang bank juta2, tak payah bayaq pun takpa, tunggu saman. kalu orang kecik macam kita, nak pinjam 5,6 ribu pun banyak soal, padahal jaminan bayaq balik ngan gaji, kecikpun bayaq balik...tak boleh lari, potongan gaji pa?? tapi punyala payah nak dapat, kadang2 pi mai pi mai berkali2, sampai longgaq kepala lutut, baru depa lepaih...


tu tak cakap lagi bab layanan di bank. kalu yang masuk tu jantan, pakai smart, takdak duit pun takpa, tapi kerani2 pompuan tu pi dok layan macam raja...kalu ala kadar macam makcik nak pi market, buat endah tak endah saja. maklumla, jarang mai bank...makcik tak sekolah, tak pandai nak guna transaction machine kat luaq tu, terpaksa mintak tolong kerani di counter...bila makcik tu mintak tolong isi borang jumlah keluar simpanan dia sendiri, bukan utang sapa2, 20,000 @ 30,000, baru melopong sakan, hambik kau. depa tak tau makcik tu bulan2 masuk lebih dari gaji depa kerja di bank tu. rumah2 n kedai2 sewa dia n lain2 pendapatan lagi...mau kena belajaq jgn tengok luaran saja...

Ni satu hal lagi,

Ada ke guna plastik melambangkan kekayaan? tu yang orang laa ni berlumba2 buat. Kalu takdak duit, buatla cara takdak duit, tak payahla pakai credit card sebab cukup bulan tinggai abuk, baik tak baik, kena utang sana sini pulak nak bayaq utang credit card...tu bukan lambang kekayaan, sebenaqnya lambang menuju kepapaan adalaa...orang yang bulan2 masuk beratuih ribu takpa laa. Ni kalu baru start kerja, setahun tak sampai RM30,000.00 dah nak guna credit card, eksyen nak mampuih...lepaih tu ujung bulan, mula la buat muka seposen ngan makbapak nak langsaikan utang credit card...

dont trust the use of credit card as a means of transaction because it will cause the clients to accumulate debts in something they never purchase - extra charges on services, late payment charges, hidden interests n legal charges n what not...

users are being conered to pay extra charges even when they never purchased anything. many people had bitter experience using credit cards n the more hideous n bitter part of credit cards comes to surface with the legal firms act as agents sending claim letters to the extend of blackmailing clients, extorting them to face legal actions n so on, even when the amount is not that outstanding... sometimes just like bread crumbs.

Sometimes, conman with the help of an insider in a bank, can use our details to get the access n a friend of mine was nearly declared bancrupt when he couldnt n didnt want to pay a large amount of debt appeared under his name...n there are many other business cons n cheats in banking business that can cause defamed of innocent people...

Peniaga kecik, peladang, petani, pekebun, nelayan mungkin lega sikit bila agrobank bagi kelonggaran pinjaman/credit, cuma berlaku jujurlah pada diri sendiri membayar balik utang2 tu. Kemudahan yang ada jgn dipersia-siakan, membuat kerja yang baik, menggunakan kudrat dan yg penting sekali, kerja halal, seribu kali lebih baik dari kerja mendajal orang lain...HIDUP RAKYAT JELATA!!!

jgn termakan hasutan mereka yang suka tengok negara huru-hara. kalu kita ikut gelagat depa, takdak hasilnya. depa takpa laa, boleh dapat duit senang2, main politik 24jam, kerja dok hentam kiri kanan, memang dah takdak kerja lain nak buat, berceramah pagi petang siang malam, sedekah orang bagi dalam kupiah bergantang2, masuk poket depa tak dak rasa bersalah sikit habuk...senang banyak hidup macam tu..

kita bersengkang mata berkerja, menggunakan tenaga empat kerat ni jgn dok pi layan depa2 tuh. kalu anak2 kita tak boleh belajaq, bukan depa nak tulong ajaq, kalu anak2 kita lapaq, depa bukan rajin nak mai huloq, kalu ikut depa, silap haribulan kita kena tangkap, bukan depa nak tulong masuk dalam sama atau tulong lepaih, balik2 salahkan kerajaan yang selama ni buat macam2 nak tolong rakyat...dah ramai orang terkena, insaf2la wahai anak muda...jgn biar fikiran dan darah muda anda disogok dgn cerita2 senjakala yang tak sudah2 dari penglipurlara tua lapaq kuasa nak jadi ketua negara...tanyala ibubapa atau orang tua yang kenal siapa dia ATAU bacalah dari banyak sumber yg ada, jgn terima bulat2 apa yg anda baca dari satu sumber saja sebab yg bulat2 tu biasanya taik kambing saja......

Ayahnda Tun n Bonda,

Inilah kisah rakyat biasa, tak punya nama, tak hambat glamor n hidup semata-mata kerana dijadikan Allah hambaNya, berbakti pada tanah ayaq, bangsa dan agama, untuk mencukupkan keperluan diri, keluarga dan membesarkan anak2 menjadi insan cemerlang, gemilang dan solehah, InsyaAllah, anak2 diingatkan sentiasa bersyukur kpd Allah, berterimakasih kpd ibubapa, guru2, rakan2 yg baik dan suatu hari nanti boleh memberi kembali bakti kpd negara yg tlh banyak memberi jasa -dari UPSR, PMR, SPM, DIPLOMA, IJAZAH mungkin anak2 akan sambung SARJANA, PhD, InsyaAllah...semuanya hasil jasa kerajaan...sekolah, buku2 teks, tenaga n kepakaran guru2, masuk kolej/universiti...

anak2 saya tak pernah dapat biasiswa masa di sekolah sebab saya cikgu tp saya selalu nasihat anak2 supaya selalu bersabaq n jgn lapaq yg bathil sebab bukan hak kita...InsyaAllah, kalu ada rezeki tak ke mana...biar saya susah laa ni utang bank n koperasi nak bagi anak2 belajaq...bukanla nak kata saya ni baik sangat tapi selalu diingatkan oleh mak dan arwah bapa, jangan ambik kalu bukan hak kita....kalu jumpak 5 duit pun jgn ambik...nanti rezeki ditarik balik berganda2...

Bab biasiswa ni pun satu. Pelajar2 yang tak layak ramai yang mohon n dapat biasiswa walaupun ibubapa berpendapatan lumayan, adik beradik tak ramai, dua tiga orang saja tapi bila isi borang biasiswa, TIPU kata duduk dgn nenek, mak sedara, tok sedara, kerja kampung, ramai tanggungan dll walaupun ada ibubapa mereka berniaga besar, doktor private, lawyer dan sebagainya tapi dah tulih dlm borang duduk dgn orang lain yg susah kononnya, dapatlah biasiswa tu...inilah kenyataan yg berlaku di banyak sekolah harian n asrama penuh. Yang sebenarnya, mereka yang tak layak langsung ni lupa bahawa bila makan hasil bukan hak kita, belajarlah bijak macam manapun, tak akan mendapat berkat...percayalah. kalu senang kemudian haripun, tak bahagia, kucar-kacir, hati tak pernah aman sebab darah daging dicemari duit tak halal sejak dari zaman budak lagi...ntahlaaa

Semoga apa yang dipaparkan menjadi pedoman kita semua.

Semoga Allah SWT memberkati Ayahnda n Bonda berdua sentiasa...

Semoga allah memberkati jua arwah Ayahku...
Wassalam.
just my brain wave...

By thebigdipper on April 25, 2009 6:14 PM
Dear Tun,

Thank you for enlightening us.

So it's obvious now that the whole western way of life
is based on a very false premise. And to think that they
have managed to fool the rest of the world for so long.
And of course they have managed to pull this off only with
the great connivance of their media.

And another thing, the western media is wont to pretend
that they are all so liberal, free and great defenders of
democracy. Particularly those in Britain, France and
Australia, which only makes us really want to puke.

We know very well that they kowtow into the dust to please
their masters i.e Jewish interests.

The truth is the western media is just a lot of
bunkum.



By thebigdipper on April 25, 2009 6:15 PM
Dear Tun,

Thank you for enlightening us.

So it's obvious now that the whole western way of life
is based on a very false premise. And to think that they
have managed to fool the rest of the world for so long.
And of course they have managed to pull this off only with
the great connivance of their media.

And another thing, the western media is wont to pretend
that they are all so liberal, free and great defenders of
democracy. Particularly those in Britain, France and
Australia, which only makes us really want to puke.

We know very well that they kowtow into the dust to please
their masters i.e Jewish interests.

The truth is the western media is just a lot of
bunkum.



By jack on April 25, 2009 6:43 PM
Dear Tun i thought that the banks like any other business go under if they do bad lending practises.......

By bloghound on April 25, 2009 6:46 PM
Dear Tun,

Does Malaysian banks practise fractional-reserve banking? I hope they don't but that is very unlikely because it gives greater profit than full-reserve. I wouldn't be surprised if the inflation will keep rising because more and more money will be created out of thin air and printed because of the practise.

What you wrote can be summarised in a few words. Profits and greed caused the financial crisis. It has always been.

Blogh

By sputjam on April 25, 2009 7:35 PM
That is why singapore chose to be the financial centre of the region.

By eriksblog99.blogspot.com on April 25, 2009 7:44 PM
Ah, This is part of the conspiracy of the rich.
the only way to rob a bank now, is to own the bank itself.
With the banks allowed to profit on derivatives, this will lead the middle class and poor to suffer from inflation and they will always be dependent on debt to finance their lives. this will leave them to be deeper in debt and thus, owing their lives to the bankers.


By Tuan Yaacob on April 25, 2009 8:32 PM
Salam,
This time round Tun talked a lot about rich countries. I dont know since when Tun is so naived as to what is happening in his own backyard. A lot of bank loan in Malaysia given to Datuks, Tan Sris who are not real businessmen or unable to pay. Bank Managers are forced to give loans to these people as they are well and politically connected.
Bank Bumiputera problem never solved during your administration.


By HOT ZOOM on April 25, 2009 8:50 PM
Pengawalan dan kestabilan ekonomi bergantung kepada pemerintahan sesebuah negara yang stabil dah kukuh dan pelabur asing tidak merasa kerugian kiranya mereka mahu melabur dinegara itu.Pemimpin negara kita perlu telus dan bijak agar pelabur asing minat melabur dinegara ini.Peningkatan ekonomi bukan sahaja akan meningkatkan pendapatan orang tertentu sahaja,tapi perlulah diberikan kepada semua peringkat tan 'memilih bulu'.Barul adil dan saksama.
Tak mahu cakap tak serupa bikin.

http://zoompanas2.blogspot.com

http://jomkongsipeluang.blogspot.com

By Rimba Emas on April 25, 2009 9:03 PM
Salam buat Tun berdua moga dirahmati Allah s.w.t hendaknya.
1.Kepercayaan yang kuat terhadap pesan Nabi Muhammad s.a.w supaya kembali kepada al-Quran jika segala masaalah kebuntuan umat manusia atas rezeki pemberiannya setiasa jadi rujukan yang saya junjung setinggi-tingginya.

2.Ikutkan hati saya selagi system riba dan jalan-jalan yang menyerupainya digunakan sentiasa menyerap perasaan was-was jika menggunakannya maka keamponan sentiasa di pohon moga jalan yang lurus ditunjuki.

3.Rakyat walau pun mempunyai pilihan tapi kalau system itu bukan yang tertulis bagai kata Allah s.w.t kemanakah kita sebenarnya?

4.Soalannya adakah riba telah juga terguna oleh permainan atas nama Islam ?

5.Di lihat kebaikan dan keburukan oleh riba sentiasa berpusing dan tiada kesudahan.Waima bank di Amerika walau pun memberi peluang rakyat miskin berpeluang mendapat pinjaman.Tapi menjahanamkan kedudukan Bank mereka.Sebabnya Bank itu juga diguna pakai oleh pelabur-pelabur mereka di luar negara melalui pinjaman.

6.Ramai yang menggangur maka kurangnya permintaan untuk membeli barangan.

7.Pengeluar pula tidak sanggup mengurangkan harga barangan semaksimumnya kerana takut kehilangan keuntungan atas harga bahan-bahan sebaliknya di tolak ke pekerja-pekerja yang diberhentikan.

8.Semuanya disebabkan kenaikan harga bahan-bahan yang asalnya didapatkan secara percuma kurniaan Allah s.w.t.

9.Bank di Malaysia memilih jalan selamat mengenakan harga tinggi terhadap bunga.Rakyat miskin tidak berpeluang membuat pinjaman untuk kereta yang besar.Barangan-barangan terbaru semuanya di letakkan harga tinggi disebabkan system bank-bank ini membolehkan rakyat berhutang.Akhirnya rakyat yang bekerja dikilang-kilang yang eksportnya ke negara Amerika yang terjejas.Kehandalan kita menjaga bank-bank mengurangkan kehendak rakyat miskin.Sistem kita adalah untuk memperbanyakkan pelaboran rakyat luar.Rakyat kita diharap makan gaji dengan pelabor ini.

10.Kerana Bank Malaysia tidak kena tempias dan satu-satunya adanya Bank Islam di dunia.Dulu dipinggir kini pengaroh glokal untuk menaikkan Islam maka berbagai system dicipta manusia melarikan asas tulin dalam al-quran menyebabkan ramai bukan Islam menyertainya.

11.Adakah system ini akan mendekatkan diri kita dengan Allah s.w.t.
dan menyelesaikan masaalah ekonomi dunia ?

12.Kesan malaksanakan hanya yang tertulis dalam al-quran banyak membawa ramainya umat yang beragama Islam.Sebaliknya yang menambah, mengubah-gubah serta mengunakan nama Islam menyamai sistem konvesional.

13.Wahai Sistem ekonomi ikutlah al-Quran,wahai harga bahan asas kembalilah keharga asal mu kerana kau mengambilnya secara percuma dari Allah s.w.t,wahai barang kembalilah keharga asal serendahnya,wahai manusia berniagalah sejujur-jujur mengikut hukum asal al-quran,tiada riba dalam perniagaan cuma hadiah yang ditetapkan sampai bila-bila itulah jalan untung yang sebaik-baiknya.

14.Walahua'lam.







By shahrul on April 25, 2009 9:46 PM
well,what can we do about it? Nobody want to use the Islamic way...

By jamilmalik on April 25, 2009 10:24 PM
DEAR TUN,

1) BANKS AND OTHER FINANCIAL INSTITUTIONS TOUCHES EVERYBODY'S LIFE IN THE MODERN WORLD. LIKE IT OR HATE IT, WE ALL HAVE TO USE THEM SOMETIMES. BE IT TO TRANSACT A VERY SIMPLE TRANSACTION LIKE ATM WITHDRAWAL TO CAR-LOAN OR HOUSING LOANS.
2) GETTING A BANKING OR FINANCIAL INSTITUTIONS LICENCES IS LIKE GETTING RIGHTS TO MAKE TONS OF MONEY. THAT IS WHY PEOPLE ARE WILLING TO PAY MILLIONS JUST TO GET HOLD OF SUCH LICENCES.
3) IT IS A BUSINESS SO EXCLUSIVE THAT THE BANKS CAN CHARGE FOR ALMOST ANY AMOUNT FOR ITS SERVICES. IMAGINE BANKS CHARGE COMMITMENT FEES IF YOU DON'T USE YOUR OVERDRAFT FACILITY. NOW THEY EVEN CHARGE RM5 PER MONTH IF YOUR ACCOUNT IS DORMANT, AND THEY CONTINUE TO DEDUCT FROM YOUR ACCOUNT UNTIL IT IS ZERO!

4) HOWEVER, HERE I LIKE TO BRING TO YOUR ATTENTION OF HOW THE ECONOMIC GAP BETWEEN THE RACES(I JUST HATE TO MENTION IT BUT ITS REALITY) IN MALAYSIA FROM THE FOLLOWING STATISTICS AT THE RECENT AMANAH SAHAM NASIONAL WEEK:

4A) ASN LAUNCH NEW ASN SHARES TOTALLING 3.33 BILLION SHARES
4B) 999MILLION SHARES ALLOTTED TO CHINESE RACE OR 100% WERE TAKEN-UP WITHIN ONE WEEK;
4C) 1.665BILLION SHARES ALLOTTED TO MALAYS BUT ONLY 0.006% OR 7.65MILLION SHARES WERE SOLD;
4D) 499.5MILLION SHARES WERE RESERVED FOR INDIANS, BUT BETTER TAKE-UP RATE THAN THE MALAYS OF 0.2% OR 53.5MILLION SHARES SOLD.

WHAT DOES THE ABOVE STATS TELL YOU? SIMPLE TRUTH AND NO POINT DENYING THAT LARGE PORTION OF OUR ECONOMY ARE FIRMLY IN THE HANDS OF BROAD BASE OF CHINESE COMMUNITY.

HAS THE NEW ECONOMIC POLICY FAILED? NO AND YES! THE NEP HAS PUT LOTS OF CASH INTO THE HANDS OF FEW. FOR EXEMPLE, ANANDA KRISNAN WAS MADE SUPER-SUPER RICH BY THE GOVERNMENT THRU MAXIS/ASTRO/TANJUNG/IPP BUT WHAT ABOUT THE INDIAN COMMUNITY IN GENERAL. THEY ARE STILL POOR. ANOTHER EXAMPLE, DAIM ZAINUDDIN CREATED HALIM SAAD, TAJUDDIN RAMLI, WAN AZMI AND SEVERAL MORE TO BECOME SUPER RICH BUSINESSMEN OVERNITE, THEY MAYBE WIPE-OUT FROM THE MAP, BUT THEY ARE STILL RICH LIVING ON THEIR SAVINGS. BUT THE MALAYS IN GENERAL STILL LIVING POORLY.
THE CHINESE ON THE OTHER HAND, HAD MORE THAN TWO GENERATION HEAD-START IN BUSINESS IN MALAYSIA AND KEPT CONTROL OF MOST OF THE BUSINESS SECTORS. WHEN YOU ARE IN BUSINESS, SURELY YOU WILL HAVE THE CASH AND RESERVES. THATS A REALITY.

THERE IS NO FORMULA TO SUCCESS OTHER THAN HARDWORK IN BUSINESS. IF YOU ARE A GOVERNMENT SERVANT, THIS IS WHERE MOST MALAYS ARE, THE BEST IS THE PENSION FOR LIFE. SO YOU WON'T GET RICH.

SO THE GAP WILL BE THERE!

SAD TO SAY, THE NEP MUST CONTINUE TO HELP THE MALAYS AND INDIANS AND OF OTHER RACES IN SABAH AND SARAWAK INTO BUSINESS AND MAKE THEM STAY IN BUSINESS.

IT MAY TAKE ANOTHER 10 OR 20 YEARS, SO BE IT.

THANK YOU.

JAMILMALIK88

By MALAYSIADREAM on April 25, 2009 10:38 PM
********************************************************************

Interesting indeed..!

It's the same way appplied by "David Copperfailed"..!

that made him the "The World Most Creative Illusionist Magician"

..earning lots..of..lots..of money by "cheating publicly & legally "

..winning lots..of..lots..of applause & cheering by "deceiving

openly & lawfully "...! Too bad there are so many..many more peoples

in the world are still the fans of "David Copperfailed" seemed to be

approving by his "Creative Minds".....!

That's truly amazing..No wonder..He is the Only Man In the World Can

Made A Kid Flying......!We'd all seen that actually happened....!

********************************************************************

By jerry.in.sg on April 25, 2009 10:54 PM
Dear Tun,

thank you again for another informative piece of article.

I know there are more to come.

I hope you will be given an avenue by the current government to utilise your sharp acumen in economics.

I believe your experience and advise will only benefit our country.

Always regard you highly in my heart.

jerry.in.sg

By heicalmy on April 25, 2009 10:59 PM
Salam Tun,
Dukacita sungguh bila PM baru pilih Nazri,dia ini tak habis habis kritik Tun .Mungkin sakit hati yg tak bolih padam .Patut dia hargai pendapat orang bukan terus melemahkan kebenaran yg diberi .Mungkin hendakan Glamor murahan .Memang jenis Talam Dua Muka,Lalang ikut angin tunggu 4 tahun lagi.Orang Kampong lebih pandai cakap dari dia.
Teruskan Idea Idea Tun untuk Pembangunan Malaysia.
Jambatan Bengkuk mungkin bolih digantikan dengan Terowong seperti Smart Tunnel.Kebebasan masuk dari mana saja dan mendarat dimana saja.

Salam .

By sarjan hassan on April 25, 2009 11:24 PM
assalamualaikum Tun,
trying to absorb and comprehend Tun's latest piece.any chance to have it in Bahasa Malaysia?
terimakasih atas sumbangan Tun.semoga sentiasa dilindunggi ALLAH SWT.

By siam kedah on April 25, 2009 11:25 PM
Dear Tun,

I cannot see anything wrong with banking business making profits by multiplying the money deposited into their system. This is a known fact and each and every banks in Malaysia is doing the same. Banking is leveraging on the trust from their clients. Once they have the money in their account they are legally allowed to provide loans to people who needed capitals for their real business. If Pak Cik and Mak Chik don't want to trust the banks they can keep their money under their pillows. What is the benefits of keeping papers?

Even politicians are using the same leverage in their business. UMNO leaders leveraging on the trust given to them by Pak Cik and Mak Cik in kampung. Even 14 percent Malaysian voted for UMNO in the last elections Najib is still the PM for all Malaysians. Can we say Najib is and in fact all Prime Ministers as false politicians.

I beg to differ with you on this subject Tun. You cannot say the banking business is a false and politicians business as legitimate.




By crazy diamond on April 25, 2009 11:27 PM
Dear Tun,

This is out of context. I'm a bit dissatisfied with UMNO recent decision in appointing Shafie Apdal as Kedah State UMNO chairman. It seems to me there is no charismatic leaders from Kedah anymore which a bit weird to me. To say that Kedah have no more charismatic leaders is totally untrue, but I do believe that they have every reasons until have to make that decision. For me to appoint Mukhriz in leading Kedah state is justifiable even though he seems short of experience needed, but he is your son (you have been sort of in fluency factor for most of Kedahans, no doubt about it). I think UMNO have to consider this factor anyway.

The recent move / action taken by Najib to meet people directly by walking around to several places in KL has shown his desire to narrow the gap between people and leaders, races and other races, religion and other religions. I'm pretty sure it will eventually turn into positive result which we can see it in the next PRU Insyaallah.

I do hope Najib will consider and examine your views in several matters you have brought up in your blog or even in newspapers. He have to avoid the same mistake that Pak Lah has done during his premiership. This has been thought in your recent comment about the importance of history to mankind which I felt it was relevant to not only leaders but also to a normal person. First mistake is forgivable second same mistake is unacceptable.

BUSTANUL BISTARI BEY

By Lahm on April 25, 2009 11:45 PM
Dear Tun,

Yes Capitalism has failed. Islamic banking or more regulated financial system is needed. The problem with Islamic banking is the brand name itself. Although the system is liked by some westerners, the brand "Islam" would not interest many especially those in the western financial hemisphere. More regulated market will go totally against the principle of the American philosophy. So, this financial crisis is more difficult to overcome when compared to the great depression where the solution was to create financial systems such as the split of consumer banking and central banking. It needs change in the fundamental thinking of capitalists or rather pure repent from being greedy.

By Mas Merah on April 25, 2009 11:53 PM
Salam TUN

1 MAKLUMAT BARU BUAT ORANG SEPERTI SAYA, APA YG TUN TULIS DI ATAS.

2 NAMPAK SUDAH PERUBAHAN DALAM UMNO SEPERTI PELANTIKAN BANYAK MUKA BARU UNTUK MENGETUAI UMNO NEGERI TUN, CUMA PANDANGAN SAYA SUPAYA UMNO KURANGKAN/TIDAK CAMPUR TANGAN DALAM URUSAN JABATAN-JABATAN KERAJAAN DI KELANTAN.

3 RAKYAT TIDAK SUKA, TERUTAMA DALAM JABATAN PELAJARAN KELANTAN.

TQ

By leading on April 26, 2009 12:14 AM
Tun,

Yes, they are agressive too. Without appying for it, I am sure many have even received cheques amounting up to RM20,000 from credit card issueing banks before.

Regards,
www.leading.com.my

By Capt on April 26, 2009 1:10 AM
Dear Tun, may i add this too ?

What is a sub-prime loan?
In the US, borrowers are rated either as 'prime' - indicating that they have a good credit rating based on their track record - or as 'sub-prime', meaning their track record in repaying loans has been below par. Loans given to sub-prime borrowers, something banks would normally be reluctant to do, are categorized as sub-prime loans. Typically, it is the poor and the young who form the bulk of sub-prime borrowers.
Why loans were given?

In roughly five years leading up to 2007, many banks started giving loans to sub-prime borrowers, typically through subsidiaries. They did so because they believed that the real estate boom, which had more than doubled home prices in the US since 1997, would allow even people with dodgy credit backgrounds to repay on the loans they were taking to buy or build homes. Government also encouraged lenders to lend to sub-prime borrowers, arguing that this would help even the poor and young to buy houses.With stock markets booming and the system flush with liquidity, many big fund investors like hedge funds and mutual funds saw sub-prime loan portfolios as attractive investment opportunities. Hence, they bought such portfolios from the original lenders. This in turn meant the lenders had fresh funds to lend. The sub prime loan market thus became a fast growing segment.
What was the interest rate on sub-prime loans?
Since the risk of default on such loans was higher, the interest rate charged on sub-prime loans was typically about two percentage points higher than the interest on prime loans. This, of course, only added to the risk of sub-prime borrowers defaulting. The repayment capacity of sub-prime borrowers was in any case doubtful. The higher interest rate additionally meant substantially higher EMIs than for prime borrowers, further raising the risk of default.Further, lenders devised new instruments to reach out to more sub-prime borrowers. Being flush with funds they were willing to compromise on prudential norms. In one of the instruments they devised , they asked the borrowers to pay only the interest portion to begin with. The repayment of the principal portion was to start after two years.

How did this turn into a crisis?
The housing boom in the US started petering out in 2007. One major reason was that the boom had led to a massive increase in the supply of housing. Thus house prices started falling. This increased the default rate among subprime borrowers, many of whom were no longer able or willing to pay through their nose to buy a house that was declining in value.Since in home loans in the US, the collateral is typically the home being bought, this increased the supply of houses for sale while lowering the demand, thereby lowering prices even further and setting off a vicious cycle. That this coincided with a slowdown in the US economy only made matters worse. Estimates are that US housing prices have dropped by almost 50% from their peak in 2006 in some cases. The declining value of the collateral means that lenders are left with less than the value of their loans and hence have to book losses.
How did this become a systemic crisis?
One major reason is that the original lenders had further sold their portfolios to other players in the market. There were also complex derivatives developed based on the loan portfolios, which were also sold to other players, some of whom then sold it on further and so on.As a result, nobody is absolutely sure what the size of the losses will be when the dust ultimately settles down. Nobody is also very sure exactly who will take how much of a hit. It is also important to realize that the crisis has not affected only reckless lenders. For instance, Freddie Mac and Fannie Mae, which owned or guaranteed more than half of the roughly $12 trillion outstanding in home mortgages in the US, were widely perceived as being more prudent than most in their lending practices. However, the housing bust meant that they too had to suffer losses — $14 billion combined in the last four quarters - because of declining prices for their collateral and increased default rates.The forced retreat of these two mortgage giants from the market, of course, only adds to every other player's woes.
What has been the impact of the crisis?
Global banks and brokerages have had to write off an estimated $512 billion in sub-prime losses so far, with the largest hits taken by Citigroup ($55.1 bn) and Merrill Lynch ($52.2 bn). A little more than half of these losses, or $260 bn, have been suffered by US-based firms, $227 billion by European firms and a relatively modest $24 bn by Asian ones. Despite efforts by the US Federal Reserve to offer some financial assistance to the beleaguered financial sector, it has led to the collapse of Bear Sterns, one of the world's largest investment banks and securities trading firm. Bear Sterns was bought out by JP Morgan Chase with some help from the Fed.The crisis has also seen Lehman Brothers - the fourth largest investment bank in the US - file for bankruptcy. Merrill Lynch has been bought out by Bank of America. Freddie Mac and Fannie Mae have effectively been nationalized to prevent them from going under.Reports suggest that insurance major AIG (American Insurance Group) is also under severe pressure and has asked for a $40 bn bridge loan to tide over the crisis. If AIG also collapses, that would really test the entire financial sector.
How is the rest of the world affected?
Apart from the fact that banks based in other parts of the world also suffered losses from the subprime market, there are two major ways in which the effect is felt across the globe. First, the US is the biggest borrower in the world since most countries hold their foreign exchange reserves in dollars and invest them in US securities.
Thus, any crisis in the US has a direct bearing on other countries, particularly those with large reserves like Japan, China and - to a lesser extent - India. Also, since global equity markets are closely interlinked through institutional investors, any crisis affecting these investors sees a contagion effect throughout the world.,__ somehow its effect to me at Kapas Island/Malaysia will show as drop in tourist coming over to the island.

Cheersmate,
PirateKing


By kwoonfai on April 26, 2009 1:21 AM
Dear Tun, basically what you have mentioned summarizes the inherent flaws found in capitalism and the fractional reserve banking system, which is of course practiced by our banks as well from cimb, bsn to public bank etc. An ideal, sure-profit business model of creating money out of thin air. Does it seem coincidental that their founders are filthy rich?

But at the end of the day, what are you trying to implicate then? To embrace socialism in Malaysia? (which is doing very well for China anyway) I guess it's rather difficult. Or ask the majority Malaysians to change overnight and start saving now, given their naturally spendthrift nature (which are further exacerbated by Western media which indulge in exuberance)? But even if they have the intention to save, many are enslaved by heavy debts generated from necessities such as (especially) cars and housing. Taking Proton as an example, your initial benevolent intention of spurring the country's development by introducing locally made cars has now unfortunately degenerated into a debt-generating instrument for many Malaysians. It does not take a nuclear scientist to figure out that car prices in Malaysia are artificially and grossly inflated due to the protectionist market present here and many have to resort to banks to finance their purchases.

Malaysia's economy is now basically facing great difficulties as more and more rakyat are consumed by never ending amount of debts, inflation and heavy dependency on commodities-based exports. If nothing radical is done to further promote the k-economy (and generate wealth from foreign countries), Malaysia will face the same fate as the US or Indonesia someday. The very reason that US is still able to withstand the credit crunch (albeit technically speaking their economy is bankrupt) could be attributed by their strong technological developments and creative industry (media, movies, music etc), which primarily deals with intellectual properties such as patents, copyrights, royalties and such.

India, despite a relatively poor country in comparison with ours, has companies like Infosys, Satyam, Wipro and Tata which are multi-billion companies. Same goes for China (alibaba etc). Malaysia has none (forget about InventQ), which is very devastating given your humongous effort to spur the k-economy via your MSC initiative. Something is very wrong here and should be examined.. the facilities are here but the entrepreneurs and human capital are missing. Where are they? Brain drain perhaps?

This is very surprising given the fact that Malaysia's unique multi-cultural society enables their rakyat to communicate and comprehend in various global languages (namely English, Malay, Chinese etc). Basically Malaysians are very talented and smart.. yet when it comes to wealth generation we are lagging behind couterparts like India and China (where once we were ahead of them). Just my 2 cents.

By amin tan on April 26, 2009 1:59 AM
Dear Tun,

Forgive me for saying this. Maybe it is new to you but to any economics student what you are saying is actually basic banking principle called credit creation. But the way you sensationalise it sounds so negative and criminal using "false economy", "thin air". In banking like in life in general good will, trust, credit worthiness, subprime are important factors. It is not cheating when banks lend more than their reserves because reserves are essentially idle money. It has been calculated statistically and allowed by bank negara for banks to lend up to 10 times their reserves.
Likewise in the case of individuals buying houses and cars on basis of deferred payment or instalment. They dont have that kind of money at the point of time when they buy the house or car. they only pay the deposits. But they deferred payment in instalments for 25 years or 5 years or whatever. This is good for the wellbeing of the people since it helps to create demand as production has exceeded demand due to advancement of technology and automation.
What a waste of resources and material wealth if we allow people to buy only up to the amount of money they actually possess like doing away with credit cards and credit creation. Think about it carefully and deeply, it is and it allows wealth creation. It is modern economy, Sir.
Amin Tan

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About Me
Dr. Mahathir Mohamad
Putrajaya, Malaysia

Prime Minister of Malaysia
1981 - 2003













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