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Economic Daily News: Where is Taiwan's policy of 'change'?

Economic Daily News: Where is Taiwan's policy of 'change'?

Taiwan editorial abstract (File 5 of a daily roundup) U.S. President Barack Obama won 63 rounds of applause throughout his 68-minute-long State of the Union speech. Not much new was mentioned in his speech, but the goals he set involve considerable challenges.
Many of the problems faced by Taiwan are similar to those faced by the United States, though different in terms of focus and direction.
For example, under a loose monetary policy, big Wall Street banks that created the crisis have instead become the greatest beneficiaries. Obama has therefore unveiled plans to impose a new tax on the largest financial institutions and limit the trading activities of big banks.
In Taiwan, those who have gained from a loose monetary policy are not banks, but property developers. Over the past few years, the vast majority of salary earners have not received pay hikes. So why have housing prices continued to skyrocket? The answer is the reduction of interest rates and the introduction of measures such as prolonging the mortgage maturities from 20 years to 30 years and exempting borrowers from repaying principal in the first three years of the mortgage.
These allow salary earners to buy homes that are twice as expensive as before, even though their incomes have not increased.
Borrowers are being held hostage by property developers. While the U.S. has taken action against the Wall Street fat cats, do we have a way to deal with the property fat cats? (Jan. 30, 2010) (By Y.F. Low)




Updated : 2021-06-16 16:57 GMT+08:00