I disagree with Temasek Review

I disagree with Temasek Review, or more specifically with an article titled, Buoyant property prices a sign of rising debt as opposed to rising wealth? by a Singaporean. This is what I disagree with and I quote the first paragraph, With property prices escalating into no man’s land, we see paper wealth rise with the proportion of debt. This is brought about by loose housing policies coupled with the loose granting of Permanent Residence to foreigners, this diabolic formula creates a surge in demand, and inflates prices way beyond their actual value and affordability. Ok, I disagree only with the last phrase which I have highlighted in bold. Who says our property prices are way beyond their actual value? Our property prices are exactly what they are, determined by the market of course. And no one can fight or manipulate the market. It is real market price. And secondly, who says they are beyond Singaporeans’ affordah..bility? I read everywhere in the media and in official speeches that Singapore property prices are affordable. And the govt is ensuring that they are affordable. So they must be affordable. Period. Ok, I must agree that high property prices mean high debt. High debt means high risk and can be turned into a nightmare for the debtors. I pray they don’t have to jump off their market value and affordah…ble properties when a crash comes along.

What is bucket shop?

Those trading in stocks and shares or in financial products are quite familiar with the term bucket shop. The term is often not look at kindly and smell of distrust and a con job. They are supposed to trade in commodities like coffee bean, sugar, oil, wheat, pork belly etc etc. The general impression is that new investors often were attracted by the good returns and also tended to make money in the first few trades. Subsequently they will lose their pants, lock, stock and barrel. They have a similar modus operandi. They make sales talks of good returns to their potential customers. And whatever trades they ‘executed’ in the early part of the game often ended in big winnings. Then they will advise the investors to put in more money for bigger wins. Most investors obliged thinking that it was so easy to make money. And they will pump in more money and will receive monthly statements of winnings that will make them smile. The catch is that they cannot withdraw whatever money they put in. Their brokers will try all means to prevent them from withdrawing their money. These could be sweet words of good returns or more schemes to keep their money in. And if they fail to persuade the investors from withdrawing, the investors will be hit with their first shock, losses. All their trades will now be reported as losses and big losses. And any withdrawal will be less than they put in or even nothing left. In worst cases, they even owe money to the bucket shops from big losses. The trick of bucket shops is to keep asking their clients to put in more money and more money and to generate glowing reports of profits in their monthly statements. And the clients will be very happy just looking at the reports. What they did not know or did not ask is whether there is really any money left. Often actually not a single cent is there. The money is all gone except on paper, printed in the monthly reports sent to the clients, to make clients happy and to encourage clients to put in money into a bottomless pit. In short, this is what bucket shop is all about. Put in money and don’t expect to see it anymore.

TOC to be gazetted as a political association

Just read this from the TOC site. They have received an email saying that the PM will be gazetting it as a political association. By this it means that it cannot receive financial and other support from foreigners. My crystal ball says that in the next election TOC may go all out to be a political party and contest the election with its own slate of candidates. And my feeling is that their candidates could be as worthy as any candidates to be field by the rest of the parties. This is an interesting development in the politics of Singapore. Go for it TOC.

More caring MPs

Several hot issues were raised in Parliament yesterday. High COE price was expected to be in discussion. Though the outcome was that measures have already been taken to prevent speculation, the most crucial part that contributed to the high COE price was left untouched. The present system is flawed in the sense that a bidder can bid any astronomical price without having to pay for it and only pays at the lowest successful bid price. If nobody can see that this is a big flaw and should be removed, nothing else needs to be said except to live with this brilliant system. The MOE scholar’s involvement in child pornography was another hot issue. Lee Bee Wah suggested that schools should divulge more information on scholarship applicants for the ministries to make more comprehensive assessments before granting scholarships. This is definitely a good suggestion. I have a better one. Parents must also declare the misdeeds of their wards applying for scholarship. You just don’t know what they did at home or out of school. See, all areas covered. Sure no more errant scholars. Another interesting issue was on parental responsibility in raising children. Parents who are unable to take good care of their children will have their children taken away. Let’s welcome 1984 with open arms. Now we can have another kind of police squad calling on the homes to take away children. And the state should take over the responsibility of raising these children. Sylvia Lim and Halimah Yaacob were against such an idea as it may break up families. And rightly, as they said, who is better to provide parental care other than the parents. Another MP suggested educating the parents on how to bring up children. I got a better idea. No one can get married unless they attended and passed a course in parenthood. A Parenthood Certificate will be the pre requisite to register a marriage. Without proper education, once married and children are born, it will be too late. Rice is cooked. Let’s prepare the rice first before they are cooked. Wow, I am coming up with so many brilliant suggestions for free.

China could win the war with the US without fighting

The stealth fighters, the carrier killer missiles, the anti satellite missiles, have changed the picture of American dominance in the military theatre. They were once untouchable. They were once the only one who could attack any country without being attacked. That was how powerful and formidable the empire was. Now the balance of power is changing. No doubt the Americans are still Number One. But it is so cheap to send 20 carrier killer missiles to sink an aircraft carrier and 7000 crews and a few hundred aircraft plus munition for desserts. How could China win a war with the Americans without fighting? Just read the panic in the American Defence Dept on China’s revelation of a stealth fighter and you will know what I mean. Yes, the Chinese is very far behind in military technology. But there is fear in the Americans that the Chinese are getting closer. And they need to run faster, much faster. They, I mean the Americans. Their military doctrine is all about unmatchable superiority in fire power and technology. They want to keep at a far distance from the rest of the world. What does this mean? They need to spend more to be much further ahead of China or their nearest competitor. And all China needs to do is to keep on the chase. For every dollar the Chinese spent, the Americans will be spending ten thousand times more. At this rate, the American economy will simply break down. They don’t have the dough and cannot afford it. Keeping up will mean bankrupting the Treasury faster. The Americans will revolt when they become the new pauper of the 21st Century. They will not believe that they cannot afford to buy cheap Chinese made toys for Christmas. When that day comes, which is very soon, they will break up into several independent states. China should just keep pushing the Americans to bankrupt themselves. That’s the way to do it.