Where are the thieves?

Cheap loans were bundled as triple A financial products for sale. Not unlike tainted milk. Rating agencies collaborated to give them the green lights. Govt regulators cheered them on or went to sleep. And the public were conned to part with their billions and trillions. And the thieves got rich, outrageously rich. Why is there no question being asked now, and why is it that no one is guilty for creating such a colossal financial mess? The anger in the main streets of America is understandable. The second point is equitable compensation. The super talents must be paid their worth in salary, bonuses, perks, stock options and golden parachutes. They deserved them more when they make millions and billions for the organisations. Pay must be performance linked. These sound so familiar and logical. Make billions paid millions. What happens if lose billions? Oh, sorry, just a bad decision. Give me my golden parachute. Bye. This is about the worst case scenario for corporate failures, the bankruptcy of mega institutions, the lost of billions and trillions of dollars and the lost of jobs for all the employees, not forgetting the destruction of a financial system. Where are the responsibility and accountability? The fat cats wanted to be paid in gold when they performed. But if they failed to perform, all they lose is the job. Is this an equitable formula? Gambling on billions of other people's money, risking other people's money, with only huge gains when the bet is right and nothing to lose when they lose? I sure love to be in such positions. Is it time to revisit such a sure win formula for success?

Reaching for the Pinnacles

The Pinnacles in Duxton Plain and many of the new HDB flats in town are priced to resale market prices, at a small discount. When has the policy of selling HDB flats at a subsidy, to selling at market subsidy, and now to market price discount took effect? What the latest policy means is that the price will keep going up depending on the demands. If people are still so crazy about pushing HDB prices to the pinnacles, let me remind them that the main cost of the current US financial crisis is due to high property prices, prices beyond what the average Americans can afford. Even the top traders in Lehman Brothers who were buying million dollars homes, more than one, were caught in the crisis. They borrowed money using their Lehman shares as collateral. When the shares became worthless, they were stuck with million dollar debt. Some several million dollars in debt because of the high gearing and high mortgages. We are in a similar situation. It will screw us when the time is ripe. The hardlanders' income is not going to rise like the million dollar man. In fact many were told not to expect any increases or employers were told not to raise their pay. How could they afford HDB flats that are going to cost more and more? Now, why must HDB flats keep going up just because the market prices are up and not because of cost? Profit is one reason. The next is the need to shore up the property prices so that those with expensive private properties can sell them at ever higher prices. Who are these people with vested interests to keep property prices going one way, up, up and away? The real losers, yes they are the losers, are the hardlanders. They will have to keep paying for the same little space in the air at higher prices. It will come, the bubble must burst. When salary does not rise as fast as the prices of HDB flats, prepare for the bust.

JBJ - The most enduring fighter

Yes, JBJ passed away finally. He fought a good fight. May he rest in peace. He is the most enduring fighter in the Singapore political scene. His political career stretched as long as those of LKY. And he fought LKY all the years, in elections, in Parliament and on the streets. Parliament will miss him. There is always the possibility of him returning to Parliament after he set up his new party to contest for election again. Now he is gone. Amen.

Paying forward - Electricity tariff 21.5% hike

Oil prices falling but Singaporeans are going to face the biggest electricity tariff hike in 8 years. And they are expected to pay 21.5% more for the rest of this year. And Singaporeans should count themselves lucky. The Energy Market Authority CEO Khoo Chin Hean said it could have been worst. Luckily we buy forward and thus only need to pay a smaller hike. Singaporeans got to be thankful. I think we should find a way to buy spot when it is cheap and buy futures when it is cheap. Can there be a way that does not restrict the buyers to just buy future when it is high despite cheaper spot price? Storage and delivery?

Bail out plan rejected

The Americans rejected their leaders. That is what it amounted to. And Dow Jones plunged 777 pts. The years of lawlessness, abuse of power, greed, corruption and lack of control over the recklessness of the Bush govt and the greedy men in Wall Street finally caught up. The Americans are not going to be led by these greedy and irresponsible men. Any lesson to learn? Don't forget that we are a small copy of corporate America.