You don't have to agree!

Make 2009 a different year. For a start, tell yourself that you don't have to agree with everything other people say, especially politicians. When the politicians say it is good for you, double check, triple check, to see if it really is. If the politicians say it is fair, do the same, many times over. And if they say this is the best solution or policy, don't simply take their words for it. And don't just disagree, say it out, make it loud and clear. And if the politicians is talking cock, make sure he is reminded of it. Let him or her knows. This is what all the world class education that you are getting should mean. It should make every educated one a thinking person with a mind of his own. Not sheeples without a brain. Make a difference in 2009!

Rescue Pack 2009

Come 20 Jan 2009 a rescue package is expected to be unveiled by the govt to help the people from the financial crisis. There are high hopes of new year angpows to tie in with the Chinese New Year a week later. This is going to be a tough CNY if no windfall is coming from somewhere. The govt is not expected to fail the people and will deliver like it did many times in the past. There will be handouts. But through past experiences the handouts must be squeezed out from somewhere. There is no free handouts and the people should also know better. This time it is going to be a bit tricky for the govt as the economy is also in technical recession and trade is contracting. Then the investment vehicles are not expected to do well. The known high profile investments in western banks are bleeding profusedly. What the people have yet to be told is the bigger picture of all the other investments by Temasek and GICs. They too can't be doing well when all the best fund managers in the world are going broke. If it is going to proclaim another profitable year, you can expect people to think of Madoff. But the govt is going to find the money to help the people. Where will this money come from?

Who is richer?

Things are not what they are today. What you see is not really what you get as many factors come into play. A person in Malaysia or Indonesia may own 2 or 3 houses but each costing $100k or $200k. A Singaporean may own just one HDB flat with a value of $700k. Who is richer? And the picture could change if the person owning 2 or 3 houses actually got them fully paid up or owes the bank a small loan. The Singaporean could be tied to a $500k loan and need a steady income to service that loan. And add to this, the cost of living in the neighbouring county is relatively that much lower than here. A dollar there could buy so much more. Who is richer?

What is Sinking Fund for?

Quek Soo Beng’s letter in the Today paper yesterday asked some pertinent questions about the Sinking Fund and the Town Councils Act and role with respect to the fund. For all intent and purposes, the money collected from the residents in the form of conservancy charges etc and placed in the Sinking Fund is for the purpose of maintaining the estate. It was never meant to be used for investment purposes. Should the Town Council intend to invest the money, the main concerns will be capital preservation and not risking it for higher returns. The provisions of the Town Councils Act may be give the wrong impression that it is expected of them to use the Sinking Fund for investment. This unintended function of the Town Council may lead to situations where the main function of the Sinking Fund be forgotten and with the residents contributing unnecessarily more money to it. When the Town Council sees its role as investing the money collected, then there is no limit as to what is enough in the Sinking Fund. And when there are profits from investments or when the Sinking Fund is bloating with excess, there will be no requirement to return the extra fund to the residents. And for all purposes, the residents may be expected to contribute more and more, for investments and more returns, and for the building up of a bigger reserve. It is therefore very important that the purpose of the Sinking Fund be made very clear, ie., to set aside enough money to maintain the estate. And when the amount is sufficient, then it should stop collecting or increase the conservancy charges. The collecting of conservancy charges is not for fun or for the purpose of keeping for rainy days or for investment. When there is a need for more money for estate management, the fees may be raised accordingly. For expediency and contingency purposes, Town Council may want to set aside a little more as a reserve. This amount too must be spelt out. Otherwise the reserve can be for 20 years or 100 years.

How I wish....

With so many frauds being disclosed, with so many people losing their fortunes, it is sad that the only person they could point the finger at is Madoff. What about all the thieves that have enriched themselves all these years in the financial industry? The auditors, the regulators, the CEOs, etc etc? Are they all innocent? How I wish America is a communist state today. You know what the communists did to the thieves that plundered and stole the people's money? They either decapitated them or shot them in a firing squad. But with a justice system that pays big money to the lawyers to find someone guilty or to defend the thieves and make them innocent, there will be no natural justice but the justice of money and power.