Reckless Spending Will Cost Malaysia Plenty
George Soros was right about Mahathir Mohamad ("Mahathir speaks out," Asian Business, May 4). What is so disturbing is that a country such as Malaysia can have a Prime Minister who has no understanding of economics. When banks are allowed to abuse fractional reserve banking mechanisms with their government's blessing to create excessive debt, surely the Prime Minister cannot blame rational individuals for selling the instruments representing such recklessness? And, as usual, the burden of this government-sanctioned growth frenzy and the resultant damage will have to be borne by the man in the street.
Mahathir's notion that one has to help the "troubled companies" shows how little he really cares for the poor. The Malaysian elite has embraced greed to such an extent that they lost all sense of reality. The markets brought them back to earth, even if it was a little late. Sadly, the average hard-working Malaysian will have to suffer undeserved setbacks and tremendous hardship directly as a result of reckless mismanagement.