Greed and irresponsibility

'Too few bankers challenged the wisdom of lending poor people more money than they could afford to buy houses that were over-priced. As for those who did best out of capitalism, too often they flaunted extravagant lifestyles. No wonder the public has turned on them with a vengeance now that capitalism has gone off the rails.' The above was quoted from The Telegraph and posted at TOC. It succintly tells the same story around the capitalist world of greed and profit at all cost, without morals and responsibility. Bankers just want to lend as much as they could for profit. Developers just build and build to sell at ever higher prices. And everyone singing, oh so clever. Profit is good. No one, including the bankers, bother to ask whether it is value for money. Sell the properties as high a price as one can get. To be able to get suckers to buy is a great talent. The suckers can die later, doesn't matter.

Abusing Hong Lim Park

Tan Kin Lian's gathering at Hong Lim was affected by an Indian Cultural Event staged at the same venue. And the attendance to Kin Lian's talk was dwindled to 200. Surprisingly many still chose to turn up despite a call to cancel the talk. Why should a cultural events be staged at Hong Lim when approval for such events should come quite easily anywhere? Hong Lim as it is reputed for, is for the airing of social political issues that cannot be done anywhere else. Community and cultural activities organisers should bear this in mind and hold their events at other more appropriate venues.

Terrorist Attacks!

This is almost an unstoppable threat that many countries are facing. And we have to face the grief with the tragic death of Lo Hwei Yen in Mumbai. She was there, wrong place and wrong time. Nothing more, nothing less. Terrorist threats can be any where, can be at home if we are not careful. It was a sad and unnecessary loss of a young bubbling girl, one of us. It is natural that all of us feel the pain and sorrow, from the President, PM, SM, DPM and everyone in the street, her loved ones, her relations and those who do not know her. Not often that we have to feel this way as a people. Our security forces can do all they could, but don't expect them to provide a net that can keep the terrorists out. They will slip in if they want to. Just don't give them a reason. Don't stir the hornets' nest. 10 gun totting terrorists in Orchard Road or Shenton way will kill more than the 200 in Mumbai for sure. Let's keep vigilant and pray that it shall not happen here. And pay some remorse to those young men who died in NS in the call of duty to keep this place a safer place. They were not in the wrong place and the wrong time. They were there specifically to serve the country. And many have died. And the tragedies of their premature deaths were never less than dying in Mumbai. Their parents lost their sons, some, only sons, for the country. We need a little outpouring of grief the next time another young man dies in the course of duty for the country.

Go home early to make babies

Last week I read that Japan is encouraging its young to go home early to make more babies. The same justification as in many countries, an older and dying population needs renewal. You need two young to support an old. So the world is all clamouring for more babies with more monetary incentives. Is this a good thing? The equation, if fully practised, will lead to a population explosion. And this mother earth is already gasping for breath to keep up with sustaining a 6b population. They are expecting it to go to 8b in the near future. There are physical stress, resource stress, climatic stress and political stress facing civilisation and mother earth. Instead of a trimming exercise which nature does every now and then to shed some weight, we are trying to put on more. The ingenuity of humankind will find its way to survive with ever growing population, or it shall perish. When will human kind admit that mother earth can just support that much lives and it is time to stop adding on? Why the rambling, let's go for the 6m or 10m. Things will go work out naturally.

Gambling with your only asset

Gambling or trading with your home or gambling with your only asset or flat, private or HDB. Not many are house owners. Does this statement tickle anyone? Many of us just have a flat that we called home. This is all we got, the most expensive asset. Shall we be trading this every now and then? At the way we buy and sell our flats, and the way prices fluctuate up and down, we could be buying and selling the same flat over and over again. And if we are lucky, we may end up with some extra cash, or lose some in most cases as the transaction cost is not low. So, shall heartlanders be gambling with their only asset? Or is it a good idea for this asset to keep running up in value? Should be good isn't it, that a flat one bought 20 or 30 years ago is not worth 10 or 20 times its value. Time to cash out and downgrade, and make a tidy sum. The question is whether this process is worth it, downgrading for a little more pocket money. Often the downgrading is not meaningful as the price difference between a 5rm and 4rm or 4rm and 3rm is so small after subtracting transaction cost and the normal appreciation of the value of money invested. The small gain is an illusion. To be meaningful, the downgrade must be fierce, 5rm to 3rm or rental flat, or private to a smaller HDB flat. The other fallacy to this ever increasing price paradox is that property prices should go up in leaps and bounds over the years. Using the past statistics, a 5 rm flat that was priced at $27,500 in the early 70s is not priced at $500K, nearly 20 times in monetary gain. If this is to hold true into the future, a 4rm flat selling at $300k today must fetch $6m into 30 years time. How much will an average Singaporean's income be for him to be able to afford this palace in the sky? Would it be better if this only asset be allowed to appreciate in a slower pace over time without it becoming a betting instrument, swinging wildly, and owners sometimes happy, sometimes angry. For the young, always angry because it is like chasing a fleeting dream. Is it likely that our average young executive or a supervisor will be getting a monthly salary of $30k or $50k? Possible, and our currency will be no different from the infamous banana money. I think many countries are in such a state at the moment. We can be one too.