Saturday, March 28, 2009

Transparency creates OPACITY, is it??



HI:p..It's been a while i haven't keep in touch with my blog. So, let's take a look what i had written here..Let's see how GREAT undergraduate engineer talk about economy.

The economic downturn begin to creates crises in Malaysia, more jobs were cut-off due to minimising the cost involved & instability economic is worried by many people from each level. Nobody is exceptional in this case & it is the tipping point for everyone. I have GOOD question to ask :"Why some stocks plunge precipitously after a good run and why it is so hard to recover?". This question is asked to any Malaysian, i really hope someone can answer me.



Refer to the Transparency: Whether it can prevent future crises. I have the same thought like every economist around the world that the current economic should have the transparency to strengthen the international financial architecture. Today, every people realized how terrible economic could effect their social life and of course the world. The strange things that i realized from the current crisis, the credit crisis is happened in full transparency & completely in front of everyone. Where does this TRANSPARENCY play its role for?? Does it creates opacity to the people around the world?? well, i do hope i can find the ANSWER here.

Transparency refers to a process by which information about existing condition, decisions and actions are made accessible, visible and understandable. Transparency refer to action & is NOT about WORDS. After the Asian crises in 1997, the reforms made in accounting and disclosure made information more accessible. If you guys, go to the website, you would find information disclosed by Lehmans, AIG, the Fed, Bank of England, warning about the risks but still the crisis still happened. I think every people agreed that the roots of crisis is so complicated that almost no one understood where to begin to stop the crisis. Plenty of information but such information was not understandable. So, would more rules on transparency will help???

Refer to Andrew Sheng, THINK ASIAN Article, he said "instead of making a complex system more complex, and adding more regulation to already complex rules, we should try to make things simple and understandable." People tend to make each system more complex and make others confused in order to make more money. That's the reality. No one really wants to admit it but i do. He also added that "lots of professionals, including lawyers, LOVE to make things very complicated so that they can make more money by providing complex advice."I'm also not exceptional from this case because i believed the more complex we tend to give to other people, more respect and money will come after that. Well, it's really FUNNY to say so BUT it's reality. (coz i'm always speak in more complex ways!!)



As conclusion, the economic crisis happened due to the UNCLEAR Transparency which is too much unidentified credit is plunged into it. The huge losses of bussiness, the toxicity, the prices collapsed as well as huge illiquidity might be the big contribution to the current crises. It is the fact that no one really understand the current crises and no one know how to begin to sto the crises. There is a quotes say "Action speaks louder than words" could clear off the transparency that we misunderstood and we hope that at the same time it creates opacity to save the world. Like "Smoking Kills" printed in each boxes of cigarette, but people still smoke. Well, it's the real facts of life and i hope the quotes could be taken seriously after this.

3 comments:

~OcEaNuS~ said...

ah, another copy n paste?


p.s. thats y i prefer to write abt MYSELF, MY LIFE and PPL AROUND ME THAT I CARE n u have no right to criticize me, tats y its called personal blogging on my side of garden.

aMMerZ said...

~oceanus~

let's get a straight, i'm not just copied the whole stuff there but i do analyze the article. My interest is more on economic side, i did a little digging there to ensure i got truth resource NOT just copy paste,if i did that, of coz people will come me Fool. It's how i wrote.Never mind, later, i will convince u aby my writing.

~it's good comment~
A.b.e.l dun mind to be criticize for good reason
~innocent boy look still in learning process~

aMMerZ said...

typing error:

*come = call

*a should be "it"

take note on that!!haha:p