What's the big deal?

The current financial crisis is not really a crisis if one is prepared to look at the problems objectively. We are not the poor beggars of third world countries. In fact many Singaporeans are still very rich, worth half a million or a million at least, in assets. See, the problems start to fritter away when you are clear and see things in the correct perspective. Unlock the value of your assets. Singaporeans can't go around begging when they are living in big houses or expensive flats. Those in 5 rm flats can downgrade to 4 rm, 4 rm to 3rm. They will be cash rich immediately. When the finances are not in order, how can they still think of staying in 5 rm or 4 rm flats and ask the govt for assistance? And for the 3 roomers, go for the HDB studio or go for rentals. They must thank the govt for the foresight to build more smaller flats and rental flats. But a better solution is to sell and take all the monies to neighbouring countries like China, India and Indonesia. JB is not a bad place too, cheap and good. And one can live in peace without worrying about old age and being sent to JB's nursing homes. Go there now and chop a place first. Brilliant huh?

11 days to unlock the reserves!

Nathan said it took him 11 days to say yes to dipping into the national reserves. Or was it 1 day since the official proposal was submitted to him and he approved it on the next day? Or would it be better if he sat on it for a month before deciding on it, perhaps taking some time for deep prayers and seeking divine guidance? Is the number of days an issue? I think not. When an issue like this comes up, it must be seen from the merits of such a request and all the circumstances that are pushing for it. What should be adequate is for able men in the Presidential Council to deliberate and make their recommendations to the President based on their independent judgement of the case. One may want to ask whether this is possible but that is very subjective. Anyway, what is $4.9b when we have a few hundred billions in the reserves? The more important question is how much of our reserves have been lost. Can the President or Parliament enlighten the people on this? When the unofficial numbers are so staggering, it is necessary to clear the air and set the record straight and move on from there. No amount of shadow play can avoid or delay the disclosure. It must be out. It must be told even if the chin will drop to the floor.

Selfish capitalism

A reality check In today's troubled times, Singapore's political leaders and businessmen may do well to read what is published here. The Times UK. Feb 16, 2009 By Alice Thomson and Rachel Sylvester Pride, avarice, lust, anger, gluttony, envy and sloth: sometimes it feels as if Britain is in the grip of the seven deadly sins. There are arrogant politicians, greedy bankers, lecherous television presenters, furious trade unionists, obese children, competitive shoppers and an underclass of people who do not work. To the doom-mongers, British society is not broken, it is shattered. According to the Archbishop of Westminster, the economic downturn could be the very thing that brings us to our senses. “It's the end of a certain kind of selfish capitalism,” Cardinal Cormac Murphy-O'Connor said. “This particular recession is a moment - a kairos - when we have to reflect as a country on what are the things that nourish the values, the virtues, we want to have ... Capitalism needs to be underpinned with regulation and a moral purpose.” ... "It has been difficult to bring up children with the kind of values we want. Let's face it, we now have a ‘me, me' society, a more consumerist society, a utilitarian society, and our values and virtues have become diminished." “Some of it has got to do with having too much. If your worth just depends on your wealth, that is not healthy. Your worth should depend on who you are.” Nothing exemplified this better than the bonus culture in the City. “I hope people have come to their senses. I don't know why they got such big bonuses. I would cut them out altogether.” Bankers, he said, “were just wanting to make profits but in ways that were rash, and they thought they could continue on this bonanza without querying their excesses. "The industry is so focused on money. Unless that is underpinned with a moral sense and regulation that makes it clear money is only a tool for living, then it is wrong. I think sometimes there weren't enough controls on the City. The above is an extract of an article posted in www.littlespeck.com. The full article, though about Britain, is a good reflection of the woes and sickness of the capitalist countries we are in today.

Are our reserves affected?

We have been told that Temasek lost $58b and GIC is likely to fare worst in absolute numbers, maybe more than $100b. The combined sum is no small change, not the kind of money that people burnt away for the nether world. This is real money and a huge sum in all counts. So, how much of the loss is from our reserves? Or shall I ask, are our reserves affected at all? Can we presume that GIC and Temasek are managing some money that came from our reserves, or what they are managing are independent funds that have nothing to do with our reserves? If the latter, then there is no need to ask further questions about losses or depletion to our reserves. So far we are led to believe, from all the official statements made, that there is a dent, big or small depends on one's appetite, in our reserves. Sometimes back the media reported that our reserves were about $200b. If the combined losses of GIC and Temasek were part of this $200b, we are in big trouble. Oh, another question. How much of the reserves or the losses were the people’s money from the CPF? I am asking these questions because they have not been asked and it is awkward to expect the MPs or ministers from the govt to ask them. I will be glad if they prove the public expectations wrong and start to ask for more clarifications instead of leaving the bulk of the asking to the NMPs and opposition MPs. Inderjit Singh is one of the few exceptions to ask questions related to our reserves. But we are not getting any wiser and the above questions could clear some air as to how bad is the damage to our reserves, if there is any damage at all. The other incredulity is that despite the thick layers of protection to our reserves, once in the hands of fund managers, they could be used for high risks investments. We protect our reserves from our people but not from fund managers. Does this make sense? Oh, if all the money lost is not part of our reserves then all my comments are hot air.

Singing the Singapore Song

Obama and Congress are tightening the screws on the thieves in Wall Streets. And the thieves are screaming, 'If you don't pay us well, we will jump ship!' Now, after the mess they created, who or which country will be in the right frame of mind to want to pay them more to bring them into their fold? Or which country will have so much lose change to pay these thieves the ransom they are asking? I forgot to add that the restrictions placed on the compensation of these thieves are only good in paper. They are exceptional talents and will find ways to pay themselves whatever they deem fit. A thief is always a thief, no matter how much he is paid.