The future of the Singpaore Economy [ with Poll ]

Last edited by Emperor SSuF on Mon Apr 27, 2009 3:32 am; edited 1 time in total

We all know its a recession right now. But where will it go from here?

In a year's time, will the economy move up, down or have not much movement?

You decide

You know what i see coming next after this recent havoc on the economy?

The oil prices will increase and everything will sink again.

The oil prices already went down. Last year they went up due to rising demand.

It came down again after the recession hit due to sudden lack of demand. Its a bit amazing how the demand suddenly changed.

Last edited by SSuFKing on Mon Apr 27, 2009 12:02 am; edited 1 time in total

Anyway, people are starting to buy cars again.

Buy cars = people are more willing to spend
Buy cars = people are going to pay for petrol
Buy cars = Car industries will start making profits soon
Buy cars = Higher demand for petrol

Higher demand for petrol = High oil prices
Low amount of oil on earth = High oil prices

Doesnt seem to me like its inevitable unless scientists find an alternative which is feasible.

Last edited by Emperor SSuF on Mon Apr 27, 2009 3:30 am; edited 1 time in total

SSuFKing wrote:: Anyway, people are starting to buy cars again.

Buy cars = people are more willing to spend
Buy cars = people are going to pay for petrol
Buy cars = Car industries will start making profits soon
Buy cars = Higher demand for petrol

Higher demand for petrol = High oil prices
Low amount of oil on earth = High oil prices

Doesnt seem to me like its inevitable unless scientists find an alternative which is feasible.

Are there any economists out there to prove such a theory?

If you think about it,

more cars = more petrol used = higher demand = greedy oil suppliers jacking up oil prices.

And with the amount of oil decreasing at a rapid speed, no doubt there will be a day when prices will be so high that only the rich will be able to afford it.

For example if you are the supplier of something rare. You would obviously sell your stuff to the one who would be willing to pay the highest price to make maximum profit. No one in the right mind would sell off that last bit of oil for a really cheap price unless they are doing it for charity.

Well, people always seem to be finding the oil somehow. What is the real estimate of the total world's oil anyway?

Also, going green is IN! Necessity is the mother of invention. When oil runs really low, people everywhere will be scarmbling to find the lastest 'green' source of energy, including glowing green nuclear power.

I am not sure about the long term future of oil, but for now, its really havoc out there. The oil price went to its highest just before the recession. And now its price is really low. It doesn't seem to be making total sense.

Posts : 3 Reputation : 0 Join date : 2009-04-27

Respectfully I believe next year will have plenty of ups and downs in between...

If you think about it, just right before the recession, the stock market was doing very well.

People have more money to buy cars. If you have observed the car plates on the singaporean cars. Just right before the recession, people were so willing to spend, the car registration plates jumped from SGR all the way to SJK within a year. Combined with the efforts of other countries, the demand for petrol increased. Greedy merchants increased the oil prices. So when recession hit, it hit real hard too. Business go bankrupt, people couldnt afford paying for a car including parking, car installments, petrol prices, road tax and stuff so they had to sell their car. And demand for the oil dropped drastically, so did oil prices. If you think about it, all this oil came from fossil fuels, meaning they came from long dead carcasses of dinosaurs or whatever living things so it is actually limited. Sooner or later, these carcasses will run out, and so will the oil. Oil prices will drop again only when they find a new enormous source of oil. The merchant who finds it will be able to sell his oil at low prices to attract more buyers, and competition will force the other merchants to match his prices to not lose out.

There have been signs that the stock market has bottomed out! Ha! Well, I think the economy will recover in time.

Businesses are still not out of the woods yet. Unemployment rates are high, and profits are low. The stock market is the first to suffer and first to recover. The rest of the economy is soon to follow the down and then the up. The only question is the timing.

Well, stocks have "bottomed out", but I don't think they'll bounce back up. Not in a long long time. Especially now with the job market being pretty unstable.

Seems like a unanimous agreement that the stocks won't have much movement.

Either that, or we are unsure how it will move.

More deer market next year..

Btw sometimes the oil prices are not solely dependent on the supply and demand of the economy at play..
As much as oil prices have certain impact on the market outlook, there are other factors that are responsible as well..

Other factors like? And i guess deer market means not much up and down since bull is up and bear is down.

There are usually fundamental (related to the core value and foundation of the economy) and sentimental factors (related to the usually short-term moods & swings of the economy)..

These are further divided into internal & external factors..
I am writing from memory so I might miss out something ya..

Internal factors are like governments' social, economical and political policies, unemployment/employment rates, consumption rates, inflation rates, interest rates, inter-banking rates etc..

External factors are like international conflicts, acts of terrorisms, natural disasters, inter-countries' social, economical and political policies, inter-banking relationships, market and trade trends and sentiments, oil prices, exchange rates, import, exports between countries etc..

Deer market is a "Question-Mark" market environment..
No one knows what & when to buy, sell or hold..