by Matthias Chang
I will let you on a secret.
Jet fuel price is skyrocketing!
But, what has this got to do with Pak Lah’s cronies?
Well, many of them have directly and indirectly latched on to the wings of AIR ASIA - the cheap-fare airlines that was the darling of the spin doctors and investors. Having the Minister of Transport (the previous two especially) as your sympathetic Godfather was a bonus. All “good things” don’t last forever.
And the good times are coming to an end. There won’t be any more champagne parties for Air Asia. Already, in the USA cheap-fare airlines are heading for the scrap heap. To cover up their financial stress, Air Asia is already levying surcharges on other items as a short term measure to maintain airfares at current levels. But, this wayang kulit has to end and price increases will be inevitable! There won’t be any more cheap flights. Expect to see requests for government bailouts.
When the financial tsunami finally hits Malaysia, companies that will be most vulnerable will be companies like Air Asia and those companies in the car business which are highly leveraged. Pak Lah’s cronies who are in the investment banking business up to their eyeballs will also suffer massive losses when their values hit south in the stock market.
Pak Lah’s cronies are all involved in these business and they ARE BLEEDING MONEY! And there is no blood transfusion available. The banks that were financing these businesses are stuck. If they provide more funds, it is throwing good money after bad. If they don’t provide additional liquidity to meet short falls and increasing costs, bankruptcy stares right into their faces!
If you have invested in these counters, get out when you can. But, if you have plenty of cash, you can buy exotic cars for dimes in the dollar. In so far as the shares of these companies, you can frame and hang them up as a reminder of your greed and stupidity.
Pak Lah’s cronies have been bleeding money and will be bleeding more money in the months ahead. Therein, lies the pain and agony because these cronies are in a dilemma.
It is only a matter of time before UMNO do Pak Lah in for screwing big time in the 12th General Elections. But the cronies are hoping and persuading Pak Lah to stay on so that their “investments” will not end up in smoke. But each time, UMNO members at Branch and Division levels calls for his retirement, they suffer a minor heart attack.
The billion question: “Do we liquidate and run with what we have in hand, or do we hold and wait for our fortune to turn for the better?”
Some have already liquidated and have made all the preparations for their get away – houses overseas, children studying abroad and minimum cash balances in local banks, with the bulk in foreign banks!
Oouch!!! Did I say foreign banks? Yep, and that is why they are also in a fix, what with these big global banks suffering massive losses and for all intent and purposes, insolvent. When these banks holding their ill-gotten gains fold up, I can assure you that they may very well jump from the 20th floor rather than face reality and shame. This is a given.
Don’t bother prosecuting them for corruption. It will be a waste of public funds. It is better that we watch them do their own thing.
These are desperation times and desperate people will do desperate things.
So when you read the news, please be careful, as there is more to it than meets the eye. I don’t mean just the main stream media but also some of the blogs as well. They are playing a subtle double game, part of Pak Lah’s web of deceit and deception.
In due time, I will expose them and named them specifically and lets see whether they dare sue me for defamation.
For now, I urge all of you to be vigilant.
19th April 2008