Working Woes ......

I remember watching a news report on the Mexico financial crisis somewhere in 1994. Due to the unfavourable circumstances then, there were doctors and lawyers who had to close down their practises and went to pick fruits in California. I wondered what it would be like if that ever happen to us here? Hopefully, it won't be that bad for us here this time around. As we have been told very often that our economy is insulated.

The sad news announced yesterday is that some 45,000 people will face the prospect of being temporarily laid-off during the Chinese New Year period due to falling demand. During this period, the factories will be on holiday for two to three weeks and working people has been asked to take leave. Some will be on paid leave and some on no-pay leave. Explaining that the lay-offs are due to a drop in orders, the factories felt that if they were to close for two to three weeks could reduce their output ad solve the problem of declining oders.  

The fact is that IMF had already indicated that it alone is no way capable of resolving this crisis and that this crisis could become worse. I am still trying very hard to imagine how the current global market meltdown won't affect the real economy here. The current state of our global economy which is very badly affected by the liquidity crisis seems to be getting worse. There are some instabitity of late. From hindsight, I am of the opinion that allowing the collapse of Lehman Brothers had been a mistake that had worsened the economic crisis. And if they again, allow the troubled US automakers go under just like that, it would be another grave mistake that may possibly lead to severe global depression.