Singapore will say thank you to Wee Cho Yaw

I read this comment in TRE on my post ‘The equity casino is going to draw its curtain soon’.

new world order:

October 31, 2015 at 1:07 pm  new world order(Quote)

The derivative market is worth a quadrillion dollars of bubble awaiting to burst.

When it burst, it will be the crash of all crashes.

Most of the banks will be affected, and depositor can expect their cash deposit to be used for bailing in the collapsing bank.

Therefore, you people should crash the bank before it crashes

 

The derivative game is like building a house of cards with nothing but air. It is pure shuffling of papers, printing papers as money. What it takes is for a few cards to be pulled out and the whole house of cards will simply collapse and nothing is left. The last American financial crisis did not teach them anything and the bubble is now even bigger, building the banking and financial industry with a fraudulent system is simply idiocy.  The next collapse will bring the banking and financial industry its knee.

The other lesson of too big to fail is still being followed here mindlessly like the Two Child Policy. No one had the guts and wisdom to turn it around when it was over taken by events and the changing economic needs in the island. There was the talk of Singapore could not have too many banks but one or two big banks. The lesson of too big to fail in the USA fell on deaf ears again. It was so fortunate that there was Wee Chow Yaw to resist the intent to cut down the number of local banks to one or two banks.

When the banking industry collapses due to the fictitious and fraudulent derivative trades, yes it is still bringing in big money but unsustainable, just like what is happening to the stock market. The stock market has collapsed if one is willing to see the truth. The denial that it is still healthy and kicking is irresponsible. When the derivative market crashes, all the banks now laughing at the easy profits will go bust, and so will their high net worth customers.

Then we will say thank you to Wee Cho Yaw. Because of him we still have 3 local banks and hopefully at least one or two will still be standing. Those banks still deep in derivative trades should quickly wind up their dabbling in this fraudulent instrument or at least cut down the exposure substantially to minimize the exposure should that day comes. All fraudulent schemes are like Ponzi Schemes, unsustainable and must collapse. It is a matter of when, not how. A scam is a scam.

Hopefully there will still be a UOB and a OCBC left. But they must not join the derivative band wagon and get intoxicated in the easy money. It is better to earn decent money from solid traditional banking than gambling. The banks and financial industry must not be turned into legalized casino with little or no regulations. At least the casinos are very well regulated and the risk minimized. Or at least no gambler is gullible enough to think otherwise punting in a casino. But a banking and finance industry, with deregulations and little regulations and allowing itself to turn into a casino without the strict regulations is creating a false sense of security. Everyone is pretending that it is not a casino in different forms.

The end game will come soon. There are two major risks. A highly risky banking and finance industry dabbling with derivatives and still drugged to think derivatives are the new designer’s drug for the well heeled or sophisticated clients. The other risk is too few local banks, only 3 and if 2 were to go, could even be 3, there will be nothing left.

But the experts would have everyone to believe all is fine.