10/05/2012

It is criminal to force our young into huge debt



Do not force our young into acquiring huge debt in the purchase of properties. This is a very wicked thing to do when seemingly responsible people are blowing the trumpet of prudence and not spending beyond one’s means.

Young people, fresh from schools, should be encouraged to save rather than to force them into buying big ticket items that run into several hundred thousands or millions of dollars and hang a big mortgage mill on their necks. They should be saving their first few years of income to act as security, to cushion from upheavals and upsets in the early stage of their lives.

The govt should make it a priority to provide young people the opportunity to buy their first flat, to start life, in a thrifty manner. The outrageous income ceilings on first time buyers of public housing is daylight robbery, forbidding the young people from a little savings and forcing them to spend all their income/savings in their first home.

Only very wicked people would conceive of such a policy and peddle it as good. As it is, public housing is no longer cheap and the ceiling is obnoxiously low and unjustified.

44 comments:

Veritas said...

GOD of the Christian, Jews and Islam do not condemn usury without reason. The whole PAP are banksters.

LKY's wife dad Kwa Siew Tee was father of FX in OCBC.

Teo Chee Hean's dad, Teo Cheng Guan was chairman of OCBC.

Tony Tan's family owns large chunk of OCBC and uncle was CEO Tan Chin Tuan.

Tharman was SG central bank CEO.

The list goes on.... Without putting young people in debt, all these blood suckers will beg for food tomorrow.

Anonymous said...

This demonic scheme of robbing the young to feed the property speculators is evil to the core.

Chua Chin Leng aka redbean said...

I can accept the private sector or business people to aim for all the profit they can get.

I cannot accept a govt for doing that or for wringing its hands and say, what to do, it happens.

agongkia said...

My suffering on huge debt is not yet over,its time for our young to take over me.

Anonymous said...

Same mentality as mean testing in hospitals, forcing people to pay more for things they did not want to pay.

Just to grab your money, they don't care about morals, ethics or prudence.

Veritas said...

Hi RB

In strict economics terms, these landlords and usury are not even generating profits. Few people knows that there classical economist who the neo-liberal whore make phoney claims their mantle, make strict definitions between profit and economics rent.

Profits are generated by tangible capital asset with labor inputs. Rents are something like real estate where you extract wealth from hapless people, giving no values in return.

Accounting profits and economics profits are different thing.

Chua Chin Leng aka redbean said...

Who is encouraging this kind of robber? In today's paper, the pre school operators are saying that the rents for HDB void decks for pre schools are being bidded up to the point when operators find it unprofitable to run the schools.

And who is operating the bidding system, who is profitting and who is paying for it?

And rentals are running many small biz out of biz unless they can pass the cost to the consumers, the average Sinkies.

Basically, the average Sinkies are paying the profiteers.

Anonymous said...

While I congratulate myself for being asset rich, I feel I am benefiting on the burden of future generations. Nothing I can do because the government has make the decision to push property price up just to fulfil their prophecy of asset enhancement for HDB owners.

I am still not sure if asset enhancement benefit people more or the government. I would think the latter gain more. As an individual, you cannot gain much if you only have one property. The enxt property is not going to be cheap either. However, the government will gain regardless in terms of transaction, property tax and taxation.

Anonymous said...

Red bean, alamak, yesterday you said the scheme was good mah and I totally supported you. Now you said no good so I am totally confused like the 60% hor.

The music must not stop so the 80% will continue to vote for the government and the assets enhancement policy though I am not sure exactly who is being enhanced.

HDB already suffered billion dollars losses doing market price subsidies so we should not allow HDB to lose more money. The other side of the entry is SLA, I don't know whether they are making or losing and if losing, then the counter party to SLA whether they are making or losing money. All quite complicated mind you.

All I know I am a property owner and I feel rich and do not wish a price correction and then I feel poor.

As for my kids, they all plan to migrate so no issue mah. May be later I can sell at a Hugh profit and join them overseas for my retirement leh.

Chua Chin Leng aka redbean said...

Anon 10:39,

There are always many sides to a coin, not just two sides. I posted different views to provoke discussion.

I think the best choice for Sinkies is to hope that the prices hit sky high, sell and migrate.

Anonymous said...

It is a very frightening thought to see hordes of young people crowding at property launches, emptying their savings and taking big loans to buy that little piece of flat.

It is mind boggling.

Anonymous said...

New HDB flats are getting smaller yet our well informed minister said otherwise. This frightening!

Lost4ever said...

Dear Mr Chua

Are we in a PONZI scheme with no outlet??? Waiting for the last person in??
Or we are in a modern day slavery scheme where daft sinkies are being driven into working endless hours to meet the monthly housing payment??
Having such a stupid life style will ensure that kids per child bearing couple will perpetually be under 1... to allow the PAP to continue to import more FT... to ensure GDP growth...
Will come a day when we cannot kick the CAN down the road anymore, no more road, just a CLIFF.... sigh

Chua Chin Leng aka redbean said...

This is the new economics. Just kick the can further down the road.

You want to have children, remember that bringing up on child is going to cost $1m and each child when thinking of settling down would have to prepare another $1m to buy a public flat. And this sum will get bigger and bigger.

Those with 2,3 or more children, they are really asking for trouble.

Anonymous said...

rb
If ever there was a doubt about your sincerity, this article should put it to rest.

"I cannot accept a govt for doing that or for wringing its hands and say, what to do, it happens."

ANSWER
=======
The government is the private sector. The private sector is the government.

In the west, this is called fascism. When government and employers work together to screw the workers.

http://simple.wikipedia.org/wiki/Fascism

patriot said...

When leegalized corruption is not corruption,
then leegalized robbery is no robbery, right?
And what if the people accept leegalized corruption and robbery willingly???

I think Redbean do not understand Sinkies, at least on the 60%.

patriot

patriot said...

When leegalized corruption is not corruption,
then leegalized robbery is no robbery, right?
And what if the people accept leegalized corruption and robbery willingly???

I think Redbean do not understand Sinkies, at least on the 60%.

patriot

Anonymous said...

Red bean, I just pulling your leg lar to say that I am confused. I can tell you that I am very clear what this policy has done to sinkies. All my kids wanted to migrate as they are largely driven out as they refused to be enslaved for 30 years for a pigeon hole. Unfortunately the 60% can not see it.

Chua Chin Leng aka redbean said...

I think you get me wrong lah. This high property price thing is the best thing that can happen to Sinkies.

$1m become $10m. $10m become $100m. $100m become $1billion.... ten generation or twenty generation, forever no need to work and getting richer every day.

Now I am confusing everyone: )

Anonymous said...

no need to confuse lah, just need to add ZEROs to the currency and it just becomes banana notes and all will be billion, trillion and zillions....

Anonymous said...

Red bean alamak now I am confused when I thought I was clear then confused.

I definitely like your latest new idea and waiting for the day I can sell my only debt free property for 100 million. Mean I still have 96 million to go. I hope the government asset enhancement policy can speed up a bit more.

Anonymous said...

Alapak redbean, why didn't other countries think of that. Just keep building houses, keep increasing the property prices, let Singaporeans buy and live off the house flipping incomes.

Where is there a need to work? Who cares about university rankings? Just import foreigners to do all the work, like the oil rich Arabs and Middle Easterns.

Anonymous said...

Are we subsidizing America's debt through QE?
Is that a primary reason for this crazy inflation?

Veritas said...

USA QE is culprit for our inflation. Yes and No. QE certainly drive up our asset due because we allow free flow of capital. PAP certainly has a lot of bullet if she wants to use them since she owns 90% of the land.

PAP can sell 100msq HDB at $100 000 if they want to. Or they can impose a Mahathir style capital control. But then, there is no way you can help the people without destroying all our evil banksters and landlord.

Over the years, our elite has move diametrically opposite to the well being of people.

Anonymous said...

USA is already enslaving its young through usury. the young americans owe US$1 trillion in debt to the american banks in the form of student-loans. even if a person becomes bankrupt, his student-loan cannot be written off. if he dies, his parents/guarantor must pay. the young americans are saddled with student loans, credit card debts, mortgages. and most of their homes are underwater, that means the value of the home is way below the amount they owe the banks. i hope s'pore would never allow student-loan trickery to be instituted here. because of student-loans, even before they start work, young americans are already in debt, enslaved.

Anonymous said...

How many here approve of the govt's policy of making our young and citizens pay so much for public housing when the cost is, we all know, peanuts?

Anonymous said...

Looking at the finished product of any HDB flat, I do agree with annon 2:53 that it is really cheap and not worth anything close to the selling price. Who is making money?

Anonymous said...

Redbean Sir,
Nothing is too sinful or evil in Sin.
What more when those incharge are
using medical aids to keep their hearts and brains
working. Without medical aids, they would
had been in hades long ago. They maybe alive, but part of their spirits are gone.

Anonymous said...

"It is criminal to force our young into hugh debt" unquote.

I would say, it is inhuman to encourage the young parents to have children when the housing mortgage is already so heavy a millstone around their neck.

These are all evil schemes just for the benefit of economic growth with no human compassion, no morality and no responsibility.

Worse than animals!

Walau said...

For the sake of the young, I have no problem even if my property value dropped by 50% cause it does not matter to me as I live in it and can not and will not sell.

But for the government I think they have a problem as they can't sell land at that inflated price anymore

Anonymous said...

It's amazing that you guys can't see the truth that's right in front of you.

The core business of the PAP government is property development of land in Singapore.

Veritas said...

As we KPKB, PAP prints monies again. Below is from Reuters.

SINGAPORE - Singapore's central bank is expected to ease monetary policy next week by slowing the local dollar's pace of appreciation, according to a Reuters poll, amid signs the economy likely slipped into a recession in the third quarter.

The published "low" inflation (last month 3.9% low??) rate is probably phoney and to set the stage for PAP to print.

Our inflation rate last is greater than 5% and PAP now still print like crazy.

Veritas said...

Our inflation rate last year is greater than 5% and PAP now still print like crazy.

Anonymous said...

Singapore - The Matrix Reloaded.

Anonymous said...

Well now they added 5 more years to the usual 30 years loan

Lost4ever said...

We have to spend 20 years studying.. 3 years pre-school..
6 years primary....
4 to 5 years secondary...
2 to 3 years JC or Poly....
3 to 4 years University...
....
Another 22 to 24 months of National Service... plus 10 years reservist...
.....
On top of that, a few years to pay the study loans.... plus a few years to find the right partner...
.....
Than... the BLOODY 35 years of housing loan......
....
Now you see why no babies, more sick in the head....
....
Its a BLOODY slave system, daft Sinkies are slave to the ruling parties and the super rich and bankster, you either pay to the government or the banks....
.....
Its a dead end!!!
....
No wander people committing suicide, jumping of the very flat they lease....
SIGH!

Anonymous said...

every where i go nowadays, almost every single young person i meet, if asked, tells me he/she will never retire in singapore. in fact they say they'll work and live overseas if there is better opportunity. they'll just use s'pore as a starting point, a stepping stone. they don't feel 'connected' to s'pore anymore. not much. they feel the politicians care for numbers more than for the people. they feel society cares only about money. when a society becomes too pragmatic, too practical, it loses its soul. hence, the emptiness the young feels.

Anonymous said...

Ever wonder why
tis tiny dot is call
Singalore?

Anonymous said...

The silly Singaporeans are really very sick.
They elected their leaders again and again just to curse them everyday all year round.

It makes one wonders if all Singaporeans are sadists.

Unbelievable.

Anonymous said...

Not all lah! At least 40% are not stupid. But they are still dragged into the mud by the other 60%. Now, I think the 60% would never consider themselves stupid, but just 'pantat gatal'

Anonymous said...

Singaporeans simply deserve to be grilled and cooked. No doubt about it.

Anonymous said...

No boiling.
Should be skinned
alive then fried wth
low heat.

Chua Chin Leng aka redbean said...

Hi Walau, welcome to the blog.

The govt should just print enough money once for all to clear what ever they owe to the people and stop gambling with the people's momey.

Thye should wind down the operations of GIC and Temasek and invest seriously on good assets and not taking big risks and hoping for big returns. Money saved from the high risk adventure can be plough back tothe people or at least not coveting the people's savings.

Anonymous said...

thanks, old man. i will kill u last, when the revolution comes. kidding , ofcourse. *wink winky nudge nudge