Who says the horse is sick? Who says it is a workhorse, a farm horse? It is every inch a thoroughbred, and a winner. This is the other side of the coin. I read somewhere that several hundred companies are queuing up to list in the SGX. With all the listing fees, the bottom line of SGX will be extremely healthy.
I think every little company here or in China or anywhere in the world would want to be listed here. It is quite easy to raise several millions or tens of millions when liquidity is plentiful. After collecting the largesse, the viability of the company is a different story. Many unforeseeable events can happen quickly and the business could easily fail.
Nevermind, can always start another new company and a new listing. And there are still plenty of willing investors with plenty of money waiting for new IPOs.
There were horror stories of foreign companies running road, with their top management disappearing into thin air. There were stories of companies being scavenged and only a shell was left. But they were not many enough to turn into a horror serial. It is normal for such things to happen.
SGX is the best run Asian stock exchange and competing with HK as the number two biggest exchange in terms of capitalization. Never mind if it hosted a large number of penny stocks in its main board. There will be more companies from the second board being elevated to the first board to make up for the losses.
And the volume of trades is increasing to the region of billions daily. At $1b trades a day, at 0.3% commission rate, that is a cool $3 million revenue to be spread among the industry players. Divide by a workforce of 6,000 heads, that will give an average of $500 per head daily. It is a very healthy industry.
If they can get all the companies waiting in the pipeline to be listed, the industry should be able to absorb another 1,000 staff with more money to spread around.
It is definitely not a sick horse. Just another side of a story. Look at the volume and volatility over the last few days! This is great time for stock trading with great opportunities to make a pile. Just keep selling, no need to think, and sure to make profits. The banks have lost something like 30% of their values and the major shareholders must be licking their wounds. But for traders, especially big funds and their wonderful high speed computers, they must be making a killing.
For small investors, sell the blue chips, or if not, wait for a while longer, they will soon become penny stocks. Then go in and scoop them up in buckets and wait for another 30 years. Sure to go back to $30. Our stock market is doing excellent and many traders and investors are making plenty of money. Good times are here again.
With the volumes in the billions, SGX must be collecting quite a lot of clearing fees. Broking houses must also be harvesting a lot of commissions. The industry is well and alive, and kicking.
10/05/2011
Shsssssh…Don’t tell anyone
When one has some money, it is better to keep quiet and don’t let anyone know. The moment words get out that someone has a pile of money, soon the money will be gone, if he is lucky. If not, his life too may be gone with the money. For those people still trying to ask GIC and Temasek to reveal how much they have in their kitties, please don’t. It is not so much about the big funds raiding them or attacking them in the stockmarkets. The things that would happen would be very simple and innocent, and with good intention.
Remember the American financial crisis? No, nobody remembers. They only remember the Global financial crisis. But it is the same thing. It was the American financial crisis that turned global, affecting the world. The main causes, subprime loans, housing price collapsed, CDOs, CDS, toxic notes, leading to the collapse of several major American banks and the rest of the financial world. They would not want to admit or lend the name America, to the worst financial fiasco in modern history.
What happened was that they knew GIC and Temasek got plenty of money and came to talk to them nicely. Citibank, Merrill Lynch, UBS, Barclay etc etc were queuing up at the door, like the Europeans now in China. GIC and Temasek were just too polite to say no. After all they just had too much money and lending some money to them was nice and proper, and good investments if they turned out to be good. The results, probably tens of billions down the drain.
This is the biggest danger in telling people that you have plenty of money. It stimulates people to think of ways to have a share of it.
Domestically the same story was repeated several times. The people have plenty of money in the CPF. This one unfortunately cannot hide. Public knowledge. So when people got so much money in the CPF, they can afford to buy a lot of things. And HDB flats were then sold to them, at market prices, according to their affordability, ie how much they had in their CPF. So a flat can be sold at $100k became $200k, became $300k, and still very affordable viv a vis the CPF savings. The rest is history. The CPF savings were depleted.
Then the medical professions also wanted a share of the money in the CPF kitty before it was emptied. They came out with a Minimum Sum Medisave Scheme, and a chunk was taken from the kitty for this noble cause. Cannot touch except for them or until mati.
Wait wait. The insurance man came and said I also want some. And CPF Life was born. Did anyone say money for gambling chips?
Anymore money left in the CPF kitty? See how dangerous it is to let people know you have money in the kitty? This is grandma’s wisdom.
Remember the American financial crisis? No, nobody remembers. They only remember the Global financial crisis. But it is the same thing. It was the American financial crisis that turned global, affecting the world. The main causes, subprime loans, housing price collapsed, CDOs, CDS, toxic notes, leading to the collapse of several major American banks and the rest of the financial world. They would not want to admit or lend the name America, to the worst financial fiasco in modern history.
What happened was that they knew GIC and Temasek got plenty of money and came to talk to them nicely. Citibank, Merrill Lynch, UBS, Barclay etc etc were queuing up at the door, like the Europeans now in China. GIC and Temasek were just too polite to say no. After all they just had too much money and lending some money to them was nice and proper, and good investments if they turned out to be good. The results, probably tens of billions down the drain.
This is the biggest danger in telling people that you have plenty of money. It stimulates people to think of ways to have a share of it.
Domestically the same story was repeated several times. The people have plenty of money in the CPF. This one unfortunately cannot hide. Public knowledge. So when people got so much money in the CPF, they can afford to buy a lot of things. And HDB flats were then sold to them, at market prices, according to their affordability, ie how much they had in their CPF. So a flat can be sold at $100k became $200k, became $300k, and still very affordable viv a vis the CPF savings. The rest is history. The CPF savings were depleted.
Then the medical professions also wanted a share of the money in the CPF kitty before it was emptied. They came out with a Minimum Sum Medisave Scheme, and a chunk was taken from the kitty for this noble cause. Cannot touch except for them or until mati.
Wait wait. The insurance man came and said I also want some. And CPF Life was born. Did anyone say money for gambling chips?
Anymore money left in the CPF kitty? See how dangerous it is to let people know you have money in the kitty? This is grandma’s wisdom.
10/04/2011
High-Frequency Traders May Face Tougher EU Market-Abuse Rules
By Jim Brunsden
Sept. 13 (Bloomberg) -- The European Union is considering
listing “specific examples of strategies using algorithmic
trading and high-frequency trading” that should be banned and
punished by regulators as market manipulation.
The measures to increase investor protection and reduce
volatility are part of plans to clamp down on market abuse in
the European Union, according to a draft of the proposals
obtained by Bloomberg News.
“There are particular automated strategies that have been
identified by regulators which, if carried out, are likely to
constitute market abuse,” the document says. “Further
identifying abusive strategies will ensure a consistent approach
in monitoring and enforcement by competent authorities.”
High-frequency traders have come under increased
regulatory scrutiny following the so-called flash crash in May
last year, during which the Dow Jones Industrial Average briefly
lost almost 1,000 points.
Michel Barnier, the EU’s financial services chief, has said
the tougher market-abuse rules are needed because current
sanctions are too weak.
Under the proposals, regulators would get the power to set
maximum fines for financial services companies of at least 10
percent of their annual sales. Individual traders would face
fines of at least 5 million euros ($6.8 million) for the worst
infractions.
Traders found guilty of “intentionally” engaging in
insider dealing and market manipulation should face criminal
sanctions that are, “effective proportionate and dissuasive,”
according to the draft rules.
Under the plans, which would need approval from governments
and members of the European Parliament, unsuccessful attempts to
manipulate markets should also be punished.
The above is a Bloomberg article.
Europe is talking about hefty fines and criminal charges to traders abusing the system through the use of high frequency trading. The criminal aspect of this methodology is clear but have been ignored by the regulators in the US where it originated. The unwillingness of Congress/Senate to pass laws to rein in the destructiveness of high frequency trading is criminal, and understandable given the incestuous relationship between the law makers and the banksters.
Europe is slightly away and could be relied upon, relatively, to take actions against the rogue part of high frequency trading. Regulators who slept with the devil will dance with the devil and protect the devil. Hoping that the Americans will take action earlier is not going to happen and Europe may be the saviour to this menace.
Sept. 13 (Bloomberg) -- The European Union is considering
listing “specific examples of strategies using algorithmic
trading and high-frequency trading” that should be banned and
punished by regulators as market manipulation.
The measures to increase investor protection and reduce
volatility are part of plans to clamp down on market abuse in
the European Union, according to a draft of the proposals
obtained by Bloomberg News.
“There are particular automated strategies that have been
identified by regulators which, if carried out, are likely to
constitute market abuse,” the document says. “Further
identifying abusive strategies will ensure a consistent approach
in monitoring and enforcement by competent authorities.”
High-frequency traders have come under increased
regulatory scrutiny following the so-called flash crash in May
last year, during which the Dow Jones Industrial Average briefly
lost almost 1,000 points.
Michel Barnier, the EU’s financial services chief, has said
the tougher market-abuse rules are needed because current
sanctions are too weak.
Under the proposals, regulators would get the power to set
maximum fines for financial services companies of at least 10
percent of their annual sales. Individual traders would face
fines of at least 5 million euros ($6.8 million) for the worst
infractions.
Traders found guilty of “intentionally” engaging in
insider dealing and market manipulation should face criminal
sanctions that are, “effective proportionate and dissuasive,”
according to the draft rules.
Under the plans, which would need approval from governments
and members of the European Parliament, unsuccessful attempts to
manipulate markets should also be punished.
The above is a Bloomberg article.
Europe is talking about hefty fines and criminal charges to traders abusing the system through the use of high frequency trading. The criminal aspect of this methodology is clear but have been ignored by the regulators in the US where it originated. The unwillingness of Congress/Senate to pass laws to rein in the destructiveness of high frequency trading is criminal, and understandable given the incestuous relationship between the law makers and the banksters.
Europe is slightly away and could be relied upon, relatively, to take actions against the rogue part of high frequency trading. Regulators who slept with the devil will dance with the devil and protect the devil. Hoping that the Americans will take action earlier is not going to happen and Europe may be the saviour to this menace.
When America was rich
When America was rich, or when England and the Europeans were rich, it was like a matter of fact. The world just looked on, maybe a bit envious, but wanted to be rich like them. The world even forgot how the Western empires became rich, literally over their dead bodies, through conquest and looting, but they called it colonisation. This sounded much more pleasant as if colonising other countries to get rich, stripping away their resources and human rights and rights to ownership of their land, were a natural, normal and acceptable thing.
Now China is getting rich, by sheer hardwork, working for lesser pay, stinging and savings, no killings, no looting, no colonising, just plain hardwork.
Now watch this video and observe the expression and sense the mood and the words used to describe China's economic growth. I am wondering if it is amusing or what?
http://www.youtube.com/watch?v=1cNJw9U5bqc
Now China is getting rich, by sheer hardwork, working for lesser pay, stinging and savings, no killings, no looting, no colonising, just plain hardwork.
Now watch this video and observe the expression and sense the mood and the words used to describe China's economic growth. I am wondering if it is amusing or what?
http://www.youtube.com/watch?v=1cNJw9U5bqc
No more space for roads?
When I heard of this news I was kinda, really? We have plentiful of land for housing, in fact we are going to increase the population to another few millions for sure, or our growth will go negative. There are millions waiting to be received by our open arms. Housing is definitely not a problem as we can just build and build, by getting the priorities right, by allotting more land for private properties and bigger profits.
When roads are declared as limited, when car population is limited, when COE prices are going to hit ninth heaven, what are the implications? For those who really need cars out of pure necessities, be it work or physical needs, like the aged, invalids, and the happy broods of children, what’s next? Life is going to be a misery, no joke.
What about the high end new citizens or PRs? They need cars, plenty of cars, as they can afford it, as a hobby. Even the local rich are collecting cars with some having tens or more in their collections.
Car ownership is not just a means of transportation to some. But the crucial purpose of car ownership is transportation. Should there be a rethink and review of car ownership policies in the light of the increasing constraints and high prices?
This is also applicable to ownership of properties. With limitation of land, of course some assholes will say ‘who said so’, land is for the building of homes, a roof over the heads. Land for investment and speculation, is going to drive property prices out of the reach of many. A rethink with respect to land for residential purposes, for the citizens, is urgent. How the govt is going to apportion land for strictly residential purposes or for the speculators to use as chips in their gambling game is tricky, or maybe not, if everything is about getting full value or profits.
Living in paradise is going to be very tough for the aspiring young who wanted a good life, ie good housing and ownership of private transport. It is also going to be a big struggle, and frustrating for the daddies and mummies with 2 or more children, and those with handicapped oldies at home. How are people going to have more babies?
Don’t worry, the marginal people will opt to move out. The very rich who have no problem with money, with $100k COE and multi million dollar shoeboxes will be happily wading to our shores.
The whole social framework and life style will not be the same again.
When roads are declared as limited, when car population is limited, when COE prices are going to hit ninth heaven, what are the implications? For those who really need cars out of pure necessities, be it work or physical needs, like the aged, invalids, and the happy broods of children, what’s next? Life is going to be a misery, no joke.
What about the high end new citizens or PRs? They need cars, plenty of cars, as they can afford it, as a hobby. Even the local rich are collecting cars with some having tens or more in their collections.
Car ownership is not just a means of transportation to some. But the crucial purpose of car ownership is transportation. Should there be a rethink and review of car ownership policies in the light of the increasing constraints and high prices?
This is also applicable to ownership of properties. With limitation of land, of course some assholes will say ‘who said so’, land is for the building of homes, a roof over the heads. Land for investment and speculation, is going to drive property prices out of the reach of many. A rethink with respect to land for residential purposes, for the citizens, is urgent. How the govt is going to apportion land for strictly residential purposes or for the speculators to use as chips in their gambling game is tricky, or maybe not, if everything is about getting full value or profits.
Living in paradise is going to be very tough for the aspiring young who wanted a good life, ie good housing and ownership of private transport. It is also going to be a big struggle, and frustrating for the daddies and mummies with 2 or more children, and those with handicapped oldies at home. How are people going to have more babies?
Don’t worry, the marginal people will opt to move out. The very rich who have no problem with money, with $100k COE and multi million dollar shoeboxes will be happily wading to our shores.
The whole social framework and life style will not be the same again.
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