8/12/2007

Myth 157 - The American Financial Myth

What goes round will come around. The Asian financial crisis that battered Asian economies and made them look like little boys in the world of high finance, and making the West looked like school masters having a thing or two to teach the unsophisticated Asian govt, was a humiliating experience to say the least. And IMF came around, with the Americans in charge, dragged the little Asian boys by the collar and cane on the other hand, and reprimanding, these are the things that Asian govt must do. No buts. Asian govts were told to open up their books, revealed all the bad debts, more transparency, more regulations and controls, no more subsidies, closed down badly managed financial institutions, basically, to get their straw houses in order with strict financial control, thrift and prudent govt expenditure. The Asian economies were badly managed, or Asians just could not manage them and needed the expertise of the West to clean up their acts. It is time Asian govts pop over to Washington and see what Asians can do to help the Americans. They have badly mismanaged their financial institutions and are literally broke. Not only the sub prime loans but also huge trade deficits and wild and unrestrained spending. How about Mahathir going there, representing Asian financial institutions, carrying a bag of goodies and a cane and telling Bush to pull up his socks? Imagining Mahathir telling Bush to rein in all the bad debts, closed the loss making institutions down, tighten belts, no more deficit spending, no more money for wars, and more regulatory controls and transparency? And if all these still fails to bring back the American economy to health, Mahathir can teach them to stop the greenbacks from trading and fluctuating freely. Fix the exchange rate for the greenbacks, institute currency control and stop speculations. That would be the American nightmare. What happens to all the world class financial gurus? How could America's financial institutions be so badly mismanaged and allowed to go on for so long? Did they know what the hell was going on or do they know the fundamentals of economics? Cheap loans, high credit risks, deficit budget, are all the ingredients to a major economic crisis. The next thing that will come around are the diseases on livestocks and natural disasters that the Asians are experiencing. You cannot run. It will come around.

8/11/2007

Preventing a meltdown

Across the world, all the central banks are pumping money into the economy and stock markets to avert a meltdown, except for those who have delinked themselves from the American capitalist system, eg the muslim states and Myanmar. What an irony. They are saved from a world system that is built on greed, exploitation and mismanagement by the Americans. And the Americans are pouring good money to chase after bad money, US$38 billion in the last few days to buy up bad sub prime mortages. When the fundamentals are wrong, it will go badly wrong. Spending and living on credit without thinking of repaying, or extending credit to unworthy customers, like our Ah Long, are awaiting a disaster of unimaginable proportion. The Ah Longs will find all ways to recover their loans. The Americans think that there is no need to recover these loans and will keep refinancing them over time, just like their trade deficits. Can it last? While the Americans were deceiving themselves into the sub prime mortgage industry, the bad thing is that they are exporting these poor credit risks to the rest of the world. Many unsuspecting countries and funds were lured into investing in such mortgages. And Murphy's Law was waiting to prove itself right anytime. Dow was down about 200 pts last night but managed to crawl back to lose only 31 pts. What a close call.

Myth 156 - Saving not enough

Singaporeans, at least 80% of them, are having a nightmare that they have insufficient savings for old age and retirement. Why is there so much hype and obsession about savings? Insufficient savings have been an issue as old as prostitution. The people of the world have insufficient savings to retire like kings and queens. But many will still live and survive even with little or no savings. The present assumption is that everyone must retire with a huge nest egg, scrimping from their daily needs, so that when they retired, they will be richer and have more money to spend than when they were healthy, young and working. And there is also this assumption that the cost of inflation will outrun all their savings and they will never have enough. Another part of the equation is to take away all family support and the asset esp the HDB flat that will also become quite a bundle with inflation. And of course when all these oldies are old and feeble, they need to spend more to live like healthy young things with a growing appetite to spend and party. And now people are encouraged to work for as long as they are alive. Actually as long as one is able to find a job that one can work till one drops dead, there is no need for savings. The longer one works, the shorter one has to live on one's savings. So the lesser savings is needed. If only more jobs can be created for the oldies. Who needs all the pretty young salesgirls or salesboys when these jobs can be done by granddads and grandmas, and at lower cost? Singaporeans are over saving, and for what? Oh to feed the ever increasing hospital bills and other cost of living.

8/10/2007

Price Survey

With so many incidents of price hikes and profiteering, the Dept of Statistics should conduct a survey on the prices of food sold in all hawker centres and food courts, plus shops. The survey form shall list out all the items on sale, what is the latest price, when was it changed and what were the last three prices. Make this a compulsory survey like the household surveys and not completing them honestly will be heavily fined. Once the hawkers and stall holders have submitted their guilt in black and white, then go after them one by one, at your own time.

Singaporean Dictionary v1.1

With a few new additions The Singaporean Dictionary of famous phrases, in jest. (To be added on as more gems are discovered) Affordability: It means affordable according to the income of the person saying it. Brutal Truth: Utter only by the super rich and super talents. Equality: Some have more rights than others. Or as in Animal Farm. Foreign talents aka Fallen Trash: Not very bright foreigners but can replace Singaporeans on cheaper pay. Foreign workers: To compete with local workers to keep wages low. GST: Tax to benefit the poor and lower income citizens High Pay: Free of corruption Honest Mistake: Free from accountability. A learning process for taking risks. IR: Another term for Casinos Let's move on: Enough. We have decided and no one should say anything more about it. Case closed. Local talents: Only in demand overseas Majority: If 1 million did not vote and 3 voted, 2 is a majority. Means Testing: An opportunity to strip a citizen down to bare all his poverty. Mee Siam Mai Hum: Uniquely Singapore National security: My security, or the security of whoever saying it. NKF: Every Singaporean knows what it means. Pah Si Buay Chow: Stay on as long as the pay is good. Peanuts: As it is, good for monkeys only. Political talents: The best of all the country's talents. Privatisation: This is a process to make public service organisations more efficient. Once they are privatised, the have to operate to make profits. Inevitably all become more efficient. Quitters: Applicable to Singaporeans who can't make it here. Redbeanforum = online rantings in futility? ;P Retirement age: Not applicable in politics Shareholders' interest: This is used to justify profit at all cost. The shareholders' interest is supreme to the interest of the general public or the country. Straight As: Above average students. Anything below is average or below average. Straits Times: Tongue in cheek views of professional journalists for nation building. Subsidies: Govt subsidises, the people pay. Super talents: Measures by income . Tooth: Tooth that Singaporeans believe in. A variation of truth. Transparent: For me to know, for you to find out. Unemployed: Refers to lazy and choosy individuals. World class: This has many definitions depending on the context. World class govt: Highest paid govt. This is unchallenged. Will appear in Guinness Book of Records soon. World class public transport: Sardine packed public transport. World class universities: Based on the criteria of assessments and number of foreign students and lecturers tweaked to fit to the expected model.