If the US, stock market crash, how would it effect us in singapore???

Question

If the US biggest stock market crash in history, What is the effect on singapore, others than our currency go down. Investor in singapore?? property market ?? Cost of living ?? Interest rates in bank?? where all the $$ goes to??? I

Answer 1

Singapore and Asia in general will come down even harder than the US market in the event of a wallstreet crash. First of all, markets are global, and attract investors from all countries. Second of all, most of the US imported goods come from Asia, and if we stop buying, you stop making.

Answer 2

It will affect the stock market badly resulting in a lot of people losing money which is bad for the economy as people's spending power decreases. Investor sentiment will turn sour in tandem with the stock market. If the condition persist, the central bank may consider cutting rates to boost the economy. This may assist the property market as the effect of the interest rate cut filters through the economy.

However the rate cut will weaken the currency and encourage inflation which means an increase in the cost of living. Therefore the central bank has a delicate balance between rate cut and inflation in their hand.

Answer 3

Lots of stuff bought in America are made in Singapore. Most of the Hard drives I buy are made there. If the stock market crashes here then a lot of import companies will go broke. Therefore they cant afford to buy products from Singapore. In turn affecting the economy there as well.

Answer 4

Well, the US does import textiles and some agricultural goods from Sing, so if the market crashed people would have less money, and therefore would buy less which inturn would lower the ammounts that we imported, other than that, if Sing has a lot of US currency based assets or investments, it would be hurt badly.

Answer 5

Worldwide markets would also go down.

Why not look at what happened in Singapore in 1987 when it crashed to get an idea what would happen now.