A brilliant strategy gone awry
The concept and strategy to invest in some of the biggest financial institutions by GIC and Temasek were a brilliant move. These financial institutions are the strategic centres in the movement of funds across the world, and proxies to the world economy. Having an interest in them, a controlling stake, is akin to the days of the British Empire when they controlled all the strategic sea ports. If GIC and Temasek were successful in this endeavour, we would have transformed ourselves as the controller and master of the world financial system. Unfortunately things did not turn out as planned. I can superficially see three possible reasons for the disastrous loss of billions of our savings. 1, it could be professional incompetence. But this is unlikely to be acknowledged as everyone involved in the plans are professional trained and experts in their fields. And they must have done their due diligence. 2, and very obvious, is the blinded trust of the American system and corporate chiefs. We looked like bright eyed little children in awe of the Americans, and believing in everything they said and did, thinking that what we see would be what we get. And we bought cart loads of rotten eggs. Then when the smell came forth, the Americans came with more baskets of rotten eggs, and we bought again, trusting them completely. Now we knew that the system was rotten and the salesmen were crooks, selling rotten eggs without telling us so. 3. The third reason is providence. When the mandate of heaven is passe, no matter how brilliant and able our people are, things will go wrong, and go disastrously wrong. Man proposes, heaven disposes. Having said that, the concept and strategy are still sound and should not be forsaken just because of the failure. With the experience of all the bunglings, we could be wiser in making our next move. Of course, hoping at the same time that providence is kinder and in our favour.