Uncertainties are still remained

Due to the recent the US downgraded and Eurozone debt crisis, the investors are afraid of their investments would become a piece of paper. Yet their fears have given impact to the stock markets as mass of selling off have been ongoing and the gold price was hit to the high record while the investors put their remaining money on the gold investment.

No doubt, the US has no any idea but to print more money in order to boost the economy of the US that has been weaken since past decade. Also, a near zero interest rate policy has been approved and implemented until year 2013. In Euro, because of the default by Greece, the union has fallen into the debt crisis as the members have to spend hundred of billions to save Greece. But the European Central Bank(ECB) has made an remaining policy of Europe Dollar up to 2% interest rate.

I don't talk the ways of these two regions in policy-making. What I would like to talk is Malaysia. Malaysia was one of the most concerned market in the region. Yes, Malaysia was but is not for now. Since the year 1997's crisis, Malaysia tightened its monetary policy to avoid short-selling of the Ringgit Malaysia which Malaysia was hit and economy got damaged by the mass selling off of Ringgit Malaysia by foreign fund group(there was alleged that was Quantitative Fund, controlled by prominent investors, George Soros).

Until now, Malaysia remains same state as before as its economy growth eased and slowed, nothing improvement has been done. Government has launched a lot of infrastructure and construction projects to boost the economy. Well, this only benefits the GLCs. It doesn't work on expanding economy but it hits the property price to high record ever. Rather than that, government did nothing on other sectors like education. We do have many jokes in policy-making of education that whole Malaysians fed-up with their(policymakers) inconsistency.

In the stock market, most of the companies share prices are undervalued. Due to the stock market tumbled, many of the people are getting away from it. The daily-trading volumes are decreased to 30%, which only almost 300-400 out of 1000 stocks are being traded in daily. This data shows that people no longer believe in the official news or announcements as they rather to believe in rumours.

Still, weaken currency has hit the trading between countries especially exports. Malaysia relies on export as one of the main income of Malaysia. Not only ringgit but the US dollar is being depreciated rapidly currently until 1 dollar=RM 2.97. Domestics consumption is enough to spur the confidence of consumers.

I wonder why uncertainties are still remained and fluctuation currently. Do we have any medicine to recover back?