Consumption Driven Philippine Economy

**niky** · December 9th, 2013 04:54 PM

Originally Posted by uls

aside from OFW money flooding the economy consumers also have easy access to credit (credit cards, car loans, personal loans, housing loans)

you'd think everyone's getting rich

many are just piling on debt

The OFW issue masks this problem. As another analyst has pointed out, remittances alone can't explain the increase in consumer spending...

In fact, easy credit is a huge global issue. You'd think 2008 never happened the way banks are handing out low interest loans.

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And there are the big cash inflows from investment money looking for a place to park while the US economy melts down. Investment money that will evaporate once things return to normal.

**uls** · December 9th, 2013 05:07 PM

Originally Posted by niky

And there are the big cash inflows from investment money looking for a place to park while the US economy melts down. Investment money that will evaporate once things return to normal.

yes and the US economy is already recovering and hot money is flowing out of the Phils.

just look at USDPHP

sell pesos buy dollars

**vinj** · December 10th, 2013 09:19 AM

Originally Posted by uls

yes and the US economy is already recovering and hot money is flowing out of the Phils.

just look at USDPHP

sell pesos buy dollars

Exactly what was discussed in a briefing i attended over a month ago and again, during a treasury meeting yesterday. Money is going out-out-out.

As for us regular Juans. Money is nowhere to be found so we have no issues on where to invest.

Originally Posted by Ry_Tower

My boss told me na may chinese philisophy din daw na usually, even sa chinese, third gens yung umuubos din nang pera kasi nga spoiled na eh. So even now na they are on top, they are wary of that pitfall. So that bodes well for them because they have learned from history.

My former boss is 3rd gen and sobrang praning on that saying kaya ayan... ang kuripot tuloy.

It's not only about saving the money or that they are lazy, but its possibly the business sense is not as good or they are not as hard driven since they have "fall backs". The business environment nowadays is also different from before.

**badkuk** · December 10th, 2013 10:41 AM

He probably remembers what happened back in 1997

**jhnkvn** · December 10th, 2013 11:57 AM

It is of poor business to actually be kuripot. Since kuripot and simply being efficient are two separate things.

In my case, we're second-generations from the family. The Chinese saying is that "The first, grows the business. The second maintains it and that the Third squanders it away." We simply try to bypass that by simply diversifying -- para lagi first-generation sa business

**niky** · December 10th, 2013 02:36 PM

The problem is the number of eggs and the number of baskets. There are just too many baskets to fill come third gen.

Too many bosses. Too many mouths to feed.

Actually, some businesses last past the fourth. Some fold even before the second. (particularly in the US)

It all boils down to how the future generations are raised. If any generation is raised to expect and take prosperity for granted, without the urge to build and foster the business like the first generation did, then they won't be interested in continuing it.

**Ry_Tower** · December 10th, 2013 05:26 PM

Originally Posted by niky

The problem is the number of eggs and the number of baskets. There are just too many baskets to fill come third gen.

Too many bosses. Too many mouths to feed.

Actually, some businesses last past the fourth. Some fold even before the second. (particularly in the US)

It all boils down to how the future generations are raised. If any generation is raised to expect and take prosperity for granted, without the urge to build and foster the business like the first generation did, then they won't be interested in continuing it.

Add to that is that this is the genaration where most quarrels occur. Mas madami na din sumasawsaw na in-laws.

**A121** · December 10th, 2013 10:26 PM

Originally Posted by uls

from the article posted by Monseratto

exactly

aside from OFW money flooding the economy consumers also have easy access to credit (credit cards, car loans, personal loans, housing loans)

you'd think everyone's getting rich

many are just piling on debt

debt is really cheap nowadays. kesa ibangko mo na talo ka sa pagkababa ng interest or itayo mo ng negosyo na walang pupuntahan, ibili mo na lang ng Fortuner.

same as real estate - dahil sa baba ng interest rate sa bangko (mas madaling magpreserve ng capital), bili muna ng real estate para mabenta ng mahal in the future.

**dcph172** · December 11th, 2013 01:18 AM

Originally Posted by uls

yes and the US economy is already recovering and hot money is flowing out of the Phils.

just look at USDPHP

sell pesos buy dollars

Hello. Is this solid advice? Cos if it is, ill definitely exchange some peso tomorrow? Also, do you think it will ever reach 55:1 again? I still have some usd from the 55:1 level of early 2000's.

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**uls** · December 11th, 2013 01:29 AM

Originally Posted by dcph172

Hello. Is this solid advice? Cos if it is, ill definitely exchange some peso tomorrow? Also, do you think it will ever reach 55:1 again? I still have some usd from the 55:1 level of early 2000's.

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ey sorry that isnt advice

i'm just saying foreign funds are selling pesos and buying dollars and heading back home