Yushui Village in Lijiang, Yunnan, with snow mountain backdrop and cascading waterfalls.
6/05/2009
How to recover Temasek's billion dollar losses
Bad timing is the main cauee for the big losses that Temasek sufferred. Too eager to buy and too eager to cut losses summed up the events that are now the talk of the town. Buy high and sell low! These are decisions made by the best financial managers that money can buy. On hindsight, many will be asking, 'Is that the best that Temasek could do?' Anyway, it is money under the bridge. Gone.
But not to worry. Another big cause to the big losses was the hollowing of our own stock market when huge money were park in the US and Europe instead. This lack of interests in our own blue chips, which Temasek has quite a huge portfolio, allowed these stocks to be dumped to less than half their values at the worst time. Now with the realisation that we should cover our backside while venturing into unknown territories, money is now being ploughed back into our stock market. And we are seeing some rapid surges in the value of our battered blue chips.
Another way to raise more money and improve the bottom line is to offer more rights issues. Soon all the money lost will be made back from our own market and from our own investors. Our investors will help to boost up the bottom line and make up for the losses. This is the comparative advantage of being the big boy in the local market, the knowledge and control over how things are and will be.
Wall Street is like a jungle infested with thugs and robbers. There is safety on home ground. How come we didn't think of that in the first place? Will the flirtation with the American dream end? Will we still throw money after all the great American financial gurus to bring home the bacon?
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12 comments:
Redbean said: How come we didn't think of that in the first place?
Redbean, redbean, don;t you know that the elites are infected with the "foreign is always best" snobbery? It is the same snobebry that has them tootign their horns about the world-class stature of NUS, NTU, SMU, but at the same time quietly send their children to study in the UK, US and Australia. The lesser mortals call people like that "hypocrites". :-)
Without visibility unfortunately this is all speculation. That's the beauty of the GIC/Temasek system - totally bamboozled stakeholders.
Great blog Redbean, excellent contributions to The Times Online as well. Keep it up.
The Billions lost will be recouped in no time.
Temasek is going big time into commodities. Right move. Come 2010, the world with its ever expanding urbanite population hankering for more of the good things in life will be the catalyst for a strong commodities rebound including fossil fuel.
Trust me, buy commodities. The Aussie dollar is a good bet. I am looking at 1.35 Sing to an A$ in 2010.
Wally Buffet.
'The billions lost will be recouped in no time'
I totally agree. Look at the big banks in the US. They appear to be making a lot of money now, only that it is at the expense of the American taxpayers.
First they write down the bad toxic assets, forced the government to pump money in to prop them up, who (the Govt) in turn sell those bad toxic assets cheaply to others, which the very same banks were known to have bought back and put into their books at much higher values, and then took the revaluation as profit. Who are the suckers? The American public.
Lost Citizen
No government, least of all the western ones will ever allow their economies to sink to the depths of the Great Depression. They rather thin out the pockets of all citizens then let the banks, the foundation stones of the capitalist economy, sink to the abyss. Some will be allowed to go the way of the dodo, but most will carry on business as usual.
This current glitch will not last. Yes, you read right. I said "glitch". That's what it is.
Wally Buffet.
That's what I thought too, like what Matilah have said, ways to recover the losses is through taxation.
Maybe can also consider reviving the estate tax which ceased last year. Revive it, tax the rich who left a fortune behind. Estate tax is like collecting tax money from ghost, ghost don't get to vote.
another way to achieve that is to up the gst; better still, perhaps the auth cud consider stretching the cpf withdrawal period to the maximum, so that the funds can be taken out only upon the sighting of the death certificate. (like medisave, special accounts?)
what abt tobacco, liquor taxes, exit toll collections, gambling (IR) taxes, ERP fees? .... all they need to do is to just up them all in one go and the billions lost will be recovered in no time.
Is there a need for recovery ?
Just sell the whole island and make it others' baby.
liberalise the FT policies. let tom dick and harry come in to buy up all the bungalows and shophouses. problem resolved.
yes matilah, magic formula. $1 for me, $1 for all, $1 for me, $1 to be shared by all.
CPF/Medisave, is another magic, like Allandin's lamp. either increase the lock up money, they just did, or push back the repayment time. either way works. they just raised the lockup money.
I never said "share". I said tax the people until they bleed. The poor ministers need money. Have a compassionate heart and give all you have or the govt will forcibly take it from you.
Now kneel down and pray for the well being of your ministers. Pray, fucker, pray until you cry!
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