2/11/2015

Temasek rated as high risk by S&P

Temasek is now at war with S&P rating agency for grouping it together with countries like Greece and Jamaica. These two names, Greece and Jamaica, send shivers down the spine of any organisation or country when they are seen as like them. How can Temasek be like Greece and Jamaica? Sure Temasek cannot tahan and must respond, to get out of this bad neighbourhood. If only our govt could get out of the 3rd world neighbourhood and stop stuff more 3rd worlds into this island. You cannot be 1st world filled with 3rd world bodies, like you cannot be AAA when in the company of Greece and Jamaica.

Why would S&P make such a drastic move, is it motivated by some sinister agenda? Even a layman would be wondering how come Temasek is down there right at the bottom of the pile of shit. The reason is logical. It is the criteria used in the assessment, or selective use of data. Some people used data selectively to search their agenda. I will write about this latter. In this case it is unlikely that S&P is targeting Temasek or Hongkong by this move though highly possible given the western agenda.

According to our Singaporean foreign talent, Chris K, an executive director in the finance industry but not wanted here, probably not good enough in the local context but good enough to be in London and Toyko, the rating is based on Standalone Rating and Asset Liquidity. His full article on this subject is posted in TRE.

Standalone Rating means rating the agency as a separate entity, divorced from its association with its mother organisation, like assessing the son on his own merit and not be affected by the halo of his father, or in Temasek’s case, not to be affected the Singapore as a country. With Singapore as a backing, like the trumpet they were blowing, there is no risk. What is losing a few hundred billions? We can sell power stations, hotels, banks, airlines, and even the whole island if needed be. See how safe Temasek is?

The second point is Asset Liquidity. Temasek is big, very big, and owners of very big assets. This can be a plus or negative depending on the situation. Big assets are not readily and easily disposable at short notice unless selling at a discount. Big assets are not easily bought as the buyer needs big and deep pockets. So buying big assets should be cheaper right, like bulk purchasing. Only fools will buy big assets and pay a premium for it when there are no other buyers with the same deep pockets. There is a story that some big banks and funds have been aggregating assets to make them big, like a monster, to dupe the fools with deep pockets to pay for them with OPM. Anyway that is just a story.

Chris K also added that some organisations with AAA rating are tempted to take unnecessary risk, as they think they are too big to fall. With their huge financial bankings, they act and behave like a monster, stomping around and grabbing anything they could lay their hands on, with OPM in their pockets. Such risky behaviour is implicit, like a philandering son out on a rampage to show how much money he has.

So, does Temasek has a case against S&P for being shafted into the wrong hole with the wrong company? Or should Temasek’s rating be AAA as it is owned by the Singapore Govt and has the whole island and the Govt assets, and the CPF also, a source of cheap fund, to fall back on? A prodigal son is AAA because his father is a tycoon.

17 comments:

Anonymous said...

Temasek's rating will remain as AAA, as long as the Sinkie opposition is not ready to be govt. Hence it is the Sinkie opposition, not S & P, that will decide AAA or what not rating.

Anonymous said...


Scary! Very Scary! Very Very Scary!

Can anyone enlighten us whether
will this rating affect our CPF!?

Cheers.

Anonymous said...

/// A prodigal son is AAA because his father is a tycoon. ///

Let me see.
This seems to suggest Father is the source of wealth creation.
And the prodigal son is the hole in the ship where all the money goes ... never to be seen again.

So the father is a stand alone asset. Probably safe to lend money to him.

The prodigal son is a stand alone liability.
Better not lend him any money.
Never ending national service for the father.

Anonymous said...


Scary! Very Scary! Very Very Scary!

Can anyone enlighten us whether
will this rating affects our CPF!?

Cheers.

Anonymous said...

The rich, and the educated elites should be worried over such things since they have more to lose. Why you worry so much?

patriot said...
This comment has been removed by the author.
patriot said...

And how if the father, as in the Said Analogy expires?

There is no immortal.
You know!

patriot

jjgg said...

Take away all the investments introduced by the government and ask yourselves..would you AAA temasick based on their track record of investments n trading?

Anonymous said...

@ patriot
February 11, 2015 9:42 am
-------
If the father in the analogy is the Singaporeans who have been subsidizing the Pretend Action Party for 50 years .... then it is clear that the father is immortal.
Because Singaporeans will always vote for the Pretend Action Party.

Matilah_Singapura said...

The truth will set you free...but first...it will piss you off!

Yo, Temasek, you should educate yourselves by learning a new word:

T R A N S P A R E N C Y . Can or not?

The said...

/// Yo, Temasek, you should educate yourselves by learning a new word:
T R A N S P A R E N C Y . Can or not? ///

Learning from the father leh. Father opaque; prodigal son non transparent.

patriot said...

@Anon 10:11am

Soon we shall all get to see.

I somehow depend much on intuition and hunch in living.
To be frank I tennd to have this funny feeling that Sinkies will one day wake up to find that Sin the Cuntry has became Sin the City. You're the Master of Yourself and no citizen of anybody.

patriot

Amortal said...

Father makes lots of many through various ways and means over 40 years of hard, tedious, sometimes ruthless and heartless works.

Come along with a son, who could not keep his excellent wife alive for long after bearing him a daughter and a son, had to die mysteriously, and then he remarried a manly-looking and manly-ambitious 2nd wife, who took over control of almost everything on the tiny island and become the World's 3rd Most Powerful Woman by Times Magazine Standard.

One in-charge of GIC and the other in-charge of TemaSICK. Both used Other People's Money derived from their hard-earned savings for a very prolonged period of time.

Investments or gambling, who knows? Who is to say one way or another? The accounts and dealings are kept almost totally secret from public scrutiny.

What can go right must go right. Likewise, what can go wrong must go wrong. Without due diligence and careful analysis of each investment or dealing, can there be wise or even good investment results? Can, possible. By fluke, a stroke of luck, or god's pity upon the commoners' money.

Whatever Rating or Ranting is not at all important. What is important is how profits and losses are made and distributed to the people where the source of money come from, or account to the people where reckless mistakes and inconceivable blunders are made.

Have they been done? No. Why not? Because it will take 500 Man-Years?

Buuuull Shiiiiit!

b said...

S&P has got it wrong several times. Its data is never meant to be reliable but only 'believe' to be reliable. We all know all dangerous belief is. Temasek should be group with countries such as swiss and lux.

b said...

"Both used Other People's Money derived from their hard-earned savings for a very prolonged period of time."

- anyone at the top of the foodchain does this.

Anonymous said...

Alamak! TummySick.
Going to lau sai very soon.

Anonymous said...

Just wait for Murphy's Law to do justice to the honest men.