3/26/2010

Property bubble is good

Justin Chiu of Cheung Kong Property lives by the religion that property bubble is good. It has to be. High property prices mean big profits for his company and big bonuses for him. Every property developer must live by this religion, or they should not be in the property business. They are in to make money, big money. They are not in a charity business. Sorry, I think I must qualify this. Some charity businesses are also very happy with big bonuses. No one should demand that property developers build properties and sell at a loss or at subsidized profits. That is fundamentally wrong. They must make the most profits they could from their projects. They must sell at market price, as high as the market can afford. It is not their responsibility to make sure that properties are affordable and reasonable. That is the job of the govt. The govt is responsible to the people and has a moral duty, a social contract, to house the people in decent homes, not in dog’s kennel. The roles of the govt and property developers are different. It only becomes a problem when a govt thinks it is a property developer, to max profits and a property developer thinks it is the govt and sells property at a loss. But in a world when the lines are blurred, when confusions set in, when the govt is not the govt, when the developer is not the developer, the people will become collateral damages in a greedy game of profits.

8 comments:

Anonymous said...

My faculty must be faulty !

How come me cannot tell the differences amongst businessmen, cheats, charity workers, robbers and political leaders ??? They all seem alike to me in SIN.

But, does it matters ?

Chua Chin Leng aka redbean said...

Obama is tackling the biggest heist of the century. And he can't even call the robbers criminals. And the robbers are more powerful than him in many ways.

Who are the crooks, who are the police? Let's see how Obama settle the issue.

Anonymous said...

That's how it ended in Animal Farm. The pigs and humans look just alike.

Anonymous said...

Hi;

me forgot to add PREACHERS, Magistrates and Lawyers to the list in the First Comment.
It is important, so i come back to add in the PIOUS Lots.

Some Singaporeans even claimed that Singapore is a Police State. But, me feels differently. Ah; it must be due to my faulty faculty.

Anonymous said...

The Police are invisible, You mean ?

Chua Chin Leng aka redbean said...

Can I disagree? With a few exceptions, I think the police is doing an excellent job. Don't blame them. They are overworked and they have priorities to handle.

Matilah_Singapura said...

Yes, I agree. High property prices are very good.

Why?

Because the higher prices go (due to inflation of money and credit supplies) the more spectacular the crash (aka in expert-speak as a "correction"). I prefer the word "crash" or "collapse" or "bust" to "correction" because of the immense negative emotional impact of those darker words.

"Crash" means people are getting severe negative emotional experiences -- lives are being ruined, families break up, suicide rates increase, banks forclose... due to making "buy" decisions from their unrestrained euphoria and praise-worthy mental states when prices were going up, up, up!

So be happy that you can party now on the back of other peoples' stupidity and reap great rewards in the future when these folks are gasping for air or bashing up their family members due to unbearable stress, anxiety and hopelessness.

Enjoy!

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