Affordability Key to HDB flats

Ignatius Lourdesamy is working overtime to reply to the numerous questioning of HDB pricing of its flats. So far HDB has been explaining that the flats are all affordable as there is a range of flats to fit every pocket. The issue is why are the people not accepting this explanation and why are the people so unhappy with HDB? There seems to be a big gap of difference or perception between the two parties. In a way HDB is right. Just buy within your means. Just work out on 21% of your income and go for the flats that one can afford. The buyers must be wrong here. If they cannot afford a bigger flat, they must buy a smaller one. The other issue which many are still having a big doubt over their heads is with respect to the costing of the flats. First is the commercial interest and market pricing policy of HDB. This must have cheesed off a lot of the buyers. The second point is the costing. How did HDB work out their costs? The most important part of this puzzle is the land cost. I don't think anyone is going to agree with the way HDB cost their land. And that may be the reason why this is often spoken but no details will be given. Then there are the other costs which the people will be curious to know. HDB is a public housing organisation to build flats for the people. It is not a commercial or private enterprise no matter what it calls itself. It has a public responsibility to serve the interest of the people for the privilege position it is in. At the rate it is going, the animosity towards HDB will keep growing when its priorities do not match the perception and interest of the people it is supposed to be serving.

What I would call a badly managed and irresponsible stock market

Financial institutions across the world are licking their wounds and there were many red faces around. One exception is the stock markets. Despite the meltdown, no one is complaining, it seems, and the plight of the investors losing their fortunes were left untold. Many stock markets are victims of the financial tsunami. They cannot be sheltered from the onslaught. But many could have fared better while some actually dealt themselves in with many bad decisions. Some of the things I dread are as follows. 1. Reckless and rapid flooding of the market with IPOs. 2. Lack of control over dubious corporations. 3. Allowing the market to be manipulated or cornered by syndicates. 4. Allowing short selling in an imperfect market. 5. Hands off to irresponsible corporations making cash calls when liquidity is tight. 6. Allowing the erosion of values of stocks when some intervention is necessary. 7. Continue to multiply market instruments through more derivatives. 8. Deregulations when regulations is seriously wanting. These are some of my preliminary thoughts.

GIC lost 25% on paper

The media quoted LKY saying that GIC's portfolio fell 25% from its peak and was managing only $150b. For the 25% fall, I will strongly recommend that GIC take out a couple of billions to reward the staff for such a scintillating performance. It has greatly outperformed the market indices which fell about 40%. On the second point of $150b, I am very puzzled. Why was it reported in so many media reports that GIC was managing something like $550b? This is not a 10 or 20% error. It was inflated by almost 4 times what GIC has. Now, which is the real number? No one should question LKY as he is the GIC Chairman and it was like words from the horse's mouth. Some may wonder how come GIC is managing a portfolio that much smaller than Temasek. But fact is fact. Would the reputable and highly reliable media do some ground work to confirm the facts?

Riding a fast train or a Titanic

LKY had a dialogue with the media organised by Thomson Reuter yesterday. His mind was still as lucid as ever though his body may not be willing. Picturing him climbing the steps to a rally platform or walking the ground is not going to be easy. The question is whether he still wants to be in charge. Some may challenge this proposition, that he is no longer in charge and the baton has long been passed to Chok Tong, and now Hsien Loong. Come again? What would one make out of a man who would jump out from his grave if he senses something is wrong and say that he is not in charge? Then again, with so many hitches and slips and things going badly wrong, LKY is still very cool, as if nothing has gone wrong. Two possibilities. Either nothing is wrong or he doesn't think that they were wrong. If nothing is wrong, he does not need to do anything. If he does not think they were wrong, even if they were seriously wrong, then he still does not need to do anything. So what is happening? Are we like the rich and famous making merry inside a Titanic, having full trust in the ship, the captain and his crew, unknowing of the giant iceberg and rough sea outside, in the dark? Maybe the Titanic is not a good example. We could be in a fast train, rushing at full speed ahead, with clear sky, maybe a bit hazy at times, and under talented drivers. Is there a cliff ahead that the train will fall over? No, all clear ahead. We have control. LKY said he did not see a need for a snap election now. If he is in charge, that's it. If he is not, a snap election there will be. Who is in charge ultimately, or maybe the election is just an issue that the one in charge can step aside but keep an eye on it from the sideline. Will LKY never be in charge?

Rainbows and omens

The sighting of rainbows is now arousing a lot of interests. Every sighting keeps people guessing, is it a good sign or a bad sign? The lightning strike on the merlion is definitely a bad sign. It caused damages and money to repair. And some tourists may not have the chance to take pictures with the merlion in the background. It may be a disappointment in their holidays here. Rainbows are a different kind of things. They don't hurt or harm anyone. Quite a pretty sight actually. And they appear often after a downpour, washing away all the bad stuff in the air and on the ground. It gives the impression of a new begining, leaving the unhappy past behind. A better and promising tomorrow awaiting. That's what a rainbow says.