Singapore’s growth in the third quarter badly missed expectations on Friday, potentially signaling weakness around the region. Now why am I highlighting Singapore? Singapore is looking into developing its nation into a regional financial hub and aims to rival Switzerland at it. Being a small open economy, if Singapore is bad, it will usually give some headway to how the other the other regional economies might perform.
US being the nation which we look for, for sign of economic direction certainly does cause some worries when you look at its economic position. The US has been in a low interest environment since 2008 and this has caused a loan growth which is much bigger than 2008 sub prime crisis loan size. So now you know why the FED is thinking over and over again just to increase any interest rates. If you are still new to economics and have no idea what Sub Prime issue is, go watch the BIG SHORT.
All that I can say that we are heading into critical times in the economy where Central Banks are using all kinds of tools to prolong the ailing economy. Just be prepared when the major reset comes.