MAS restricts property loans

Kudos to MAS for the timely action before we run into grave financial risk. This would certainly make the front page in our newspapers this morning.

In mid August I suggested that only MAS can do something about this now. Didn't take them too long to move on this.

Nobody knows if these measures are sufficient but I think it prudent to act lightly than be heavy handed. I wouldn't be surprised the government has to act again. They can fold their arms only if positive price expectation is destroyed. It is really hard to fight the Fed QE3.

Like it or not, we are all helping to pay for the West's mistakes. During the Asian financial crisis, the region paid its own bills. Such is life,  no wonder everyone wants to be the hegemon.