COE at $2 !!

Result of COE open bidding for November 2008 is stunting. COE price for Cars (1600 cc and below) dropped from the usual 10k+ to $2!! Maybe Singaporean already feel the impact of a recession and cutting back on consumption and luxuries. Retrenchment of staff from major banks like DBS and Citigroup may have affected ppl's confidence on their job security and this further lead to lower consumption. As mutiplier K can be said to aid in a mutiplier effect in times of boom leading to economic growth and GDP to increase, like wise in times of recession, it will have its regressive effect. Few weeks ago, Mr Goh urge Singaporean to spend and he use paradox of thrift to show the irony of "saving too much". How long can the domestic driven consumption sustain and cushion our economy? We will see when the big wave hits us.