9/07/2011

Still squeezed out of public housing

Lim Chong Wee wrote to the ST that he still could not qualify for Exec Condo when there was another big article claiming that it is so EC to buy Exec Condo now than DBSS. Yes they have raised the ceiling to $12k which technically means that Lim Chong Wee will now qualify. But there is another clause about eligible only after 30 mths from selling a private property.

Lim is one of those poor rich guys who was forced to take a hefty loan to buy private market when his income was deemed to be rich enough to live in private properties. The truth is that with $10k or $12k, and taking a huge loan, these people are finding it a squeeze. Their only usefulness is to help to inflate the prices of private properties to make their owners get richer.

In the mean time they will have to empty every cent in their CPF to afford those ridiculous prices. And these will be the people ended with nothing to withdraw from their CPF savings when they retired. And no body know why they have little savings! One big chunk taken away by the property and another big chunk by minimum sum and Medisave. The candle burns at both ends.

Of course he is complaining. But to the very rich, they want to force this group of people to think they are rich and must feed on caviar and foie gras. Poor buggers, caught in a cruel scheme. The ugly reality is that going to private properties will put a tremendous strain on them. They look good with their private addresses and cars, but not much left for their retirement.

The really rich are those earning $50k or more monthly. Those in the $10k to $20K bracket could live very comfortably if not being forced by the system and some dickheads to spend every cent they earned. They are not supposed to be thrifty, to be prudent, to save for their children and old age. They must spend and spend to help the economy and support the private property market for the dickheads to get richer.

This is the perfect middle class squeeze. Not because they have to support parents and children, but to support the private property market.

The intriguing protocol list

A state’s protocol list is a simple ranking of the seniority of govt officials which will then determine who they meet, where they stand or where they sit. In our case we have the President listed as number one followed by the Prime Minister, the Chief Justice and other ministers. In a way it is also the pecking order of the house and taken very seriously. Don’t mix this with the protocol list coming from Caldecot Hill where Jack Neo can be listed as the President, Mark Lee as the Prime Minister or Zoe Tay as the number one.

With the changing of the guards after the last GE, things started to look a bit complicated and messy with the stepping down of some senior ministers to become officially just an MP. As MPs, their standing in the protocol list will drop several rungs and they will no longer be in the limelight. But this may not be true in our case and how much real political power they wield could only be seen in an official function.

The National Day Celebration was the first public event to see who is the top dog and who are just members of a team. I missed this event and did not witness the changes. Then we have the swearing in of the new President and I managed to catch a few glimpses over the news. I saw MP Lim Boon Heng sitting about 15 or 20 rows behind the ministers. I tried looking for MP Mah Bow Tan and MP Wong Kan Seng but failed to locate them. Probably blocked by other guests. Now where is MP Lee Kuan Yew. I think I did not see him either.

The one that was sitting in the front row together with the senior ministers was MP Goh Chok Tong ESM. So what did it say? His ESM is real, equivalent to a senior minister. So he is a minister and not an MP. So, is he getting paid as a minister too, and carrying out duties like a minister? He is definitely being paid a pension of a minister plus his MP allowance and or ESM appointment. Those who think that he is no longer a minister and will share the protocol ranking of Tin Pei Ling will be mistaken. Boon Heng, Kan Seng and Mah Bow Tan will now rub shoulders with Tin Pei Ling and other new MPs at the National Day Parade stand. But Chok Tong ESM will still rub shoulders with ministers of his ranks.

And his picture is in the ST today, shaking hands with President Lee Myung Bak of South Korea. What would the latter be thinking? Is he shaking the hand of a minister or an MP? Or an honorary minister?

Does our new protocol list say anything about who is really the bosses in our political structure? What is the official title of LKY? Ex or former Mentor Minister or MP? Today the ST addresses him as former Prime Minister.

9/06/2011

Notable quote by Leong Kai Yan

‘Serving NS in non combat positions just as taxing.’ By Leong Kai Yan.
This is an article in the ST forum today by a Kaiyan Leong. I didn’t know that Kaiyan is a western word like Tom or Jerry to be placed in front of a Chinese surname, or is this the right way to write Chinese name? I am getting out of touch with the new generation. Anyway, a better version will be ‘Serving NS in non combat positions just as dangerous.’ Ok, this is my version.

How so, sitting in the comfort of aircond offices can be dangerous meh? Why not? He can be electrocuted when typing on the keyboard. Or he could trip over a carpet or a slippery office floor and hit his head against a sharp corner of a furniture.

Or the secretary may pour a cup of hot kopi on his face by accident and burn his whole face. What about a ceiling fan dropping down and chop off his head?

Mine, non combat positions are terrifying and truly dangerous. A jeep or tank can overturn. So can a car on the road. Both equally dangerous. A hand grenade exploding? What about the danger of a letter exploding when opened?

I concede that non combat positions are equally dangerous, and taxing too. No wonder not many PES A NSman were allowed to be in non combat positions. Oops, there are some exceptions to the rule.

The indictment of a prime minister

Iceland has taken an unprecedented step to indict its Prime Minister, Geir Haarde, for being the cause of its financial collapse. The charges were ‘intent or gross neglect, mostly violations against the laws of ministerial responsibility.’ According to another law maker, Ath Gislason, Haarde’s great sin was omission. He did nothing and allowed the world financial crisis to hit Iceland to ground zero.

Some law makers were kinder and put the blame squarely on his predecessor, David Oddson. Oddson did something very familiar to countries that are suckers to the flawed American financial system, by allowing the privatization of banks and ‘liberalized banking laws, paying the way for a brief period of prosperity and the bank’s risky and ultimately self destructive behavior.’

What happened in Iceland is a common phenomenon in many western countries, a brief period of ecstasy before doomsday comes. The stock markets too got a small lift, but the collapse is just around the corner. With liberalization, it is like giving a licence to kill to the bankers and big fund operators.

It is so lucky that we have no reason to indict any politician here. They have all done well in their ministries and everything is just fine. Some thought there were a few cases that deserved to be indicted. Some thought the time is not ripe. The financial system and the stock exchange, and the nation’s reserves, are still kicking and looking healthy, just like the housing bubble. Let’s hope that they stay that way and there is no need to indict anyone as the consequences of a bad judgment and decision can be fatally destructive and beyond redemption.

When would stock exchanges be sued?

When the Lehman bonds and High Notes turned out to be lemons, many investors suffered huge losses across the world. There were compensations and pay back to some investors, notably the ignorant and less well educated uncles and aunties.

The well heeled and branded investors, known simply as sophisticated investors, were not so lucky. Even the sellers of the toxic notes were spared except some low level clever sales people who were found to have fouled only because they sold to the ignoramous. If the clever sales people targeted the intelligent and sophiscated investors, it was caveat emptor. No trouble at all. Under the same logic, they could even sell poison.

The bottom line is that the notes were dangerous but intelligent investors should know the risks involved. They were dangerous but not poison. They were not snake oil but high risks financial instruments.

The financial institutions were taken to task not because of faulty products but not telling enough of the risks. No one really was found guilty of any crime except some low level sales people, also not for crime but maybe a bit negligent.

Last week the American govt took up a suit against more than a dozen financial institutions for selling flawed products during the housing crisis. What this means is that someone and some institutions could be found guilty. The names of those senior people instrumental in the packaging of the toxic products have been compiled and awaiting prosecution. This is a serious development as the products were never seen to be at fault.

What if the banks and financial institutions were found guilty of selling snake oil or fraudulent products, or guilty of fraudulent practices? Would the banks and financial institutions here also be found guilty for selling snake oil as well? At the moment everyone is walking around with a hallow on his head, like angels. Water under the bridge, no point digging out shit to get people to court.

The seriousness of the American govt suit against the financial institutions and the legal implications can be widespread, depending on the findings. If fraud can be established, many heads will roll. Those heads over here may have to face the music as well.

An interesting article in the ST yesterday titled America’s great bank robbery by Nassim Nicholas Taleb and Mark Spitznagel is worth reading. It discussed the elaborate schemes of bankers and fund managers in transferring their client’s wealth into their own personal accounts. This kind of day light robbery is not confined to the US but affected all the financial systems modelled after them. The same players, the same systems and the same copycats, all lining their pockets with quick easy money.

Would the stock exchanges be next to be sued?