The lesson from Stanchart and Barclay

Two giant banks, with world reputations to maintain, were caught with their pants down for playing dirty. And they were not the only two. Stanchart was reputed to have accepted Iran’s money to the tune of $310b when there was a sanction against it. Barclay and many big banks were rigging the Libor that undermined the integrity of the whole banking industry.

Yes, they cheated for the sake of profitability, like drug smugglers cheating with their lives. The latter faced the death sentence if caught, but they kept coming. Nothing is going to deter them from risking their lives to make money. And nothing is going to keep men in high position from their fraudulent and greedy ways to make money.

There is a saying that nobody will go into business to make losses. People will risk their necks and lives just to make money. The stock exchange is claiming how much it has cut trading cost to boost business and equity trading. Cutting cost seems to be their preoccupation and raison d’tre for a blooming stock market. There were some early gains for the exchange, but for how long? Does the cut in trading cost led to a more vibrant market or is it a corollary to the early demise of the stock market? At the rate it is going, the cut in trading cost is immaterial. The vibrancy and participation in the stock market is zilch or nearly there. The volumes reported were mostly clocked by computers. The traders and retail investors have gone into hibernation or dead.

How would cutting of trading cost help in reviving the stock market? Why was it that the market was so vibrant and the industry doing so well when trading cost was so much higher? Is there a correlation? The economists were the champion of liquidity, pumping more money into the economy to keep it growing. Why remove the liquidity in an industry that needs the commission to lubricate and pay for the jobs it supported by cutting cost, cutting the fuel it needs?



From what is happening, the lower trading cost is putting an end to the industry and it is only a matter of time before the sun set on this once lucrative and active industry. The trading cost is not a real issue in a healthy market. The trading cost is only material to those who need to capitalize on small margins and marginal cost to make money at the expense of small retail traders.

Is low trading cost a gimmick or a deadly concoction that will send the stock market to the graveyard? Many traders and retail investors are already there, dead and buried. Obviously the low trading cost did not do them any good. In fact they could be the direct victims of low trading cost.

What do you think? Still sleeping like Rip Van Winkle?

Pang Yingfen - The “heroine” of Henderson Road

‘In June 2010, she helped 13 needy households pay more than S$10,000 in expenses. Now, she has helped 60 needy families pay more than S$30,000 in utility bills, expenses and rent.

One of these families had an outstanding utility bill of S$8,500, and water and power supply have been cut for some time.

The “heroine”, Ms Pang Yingfen, was particularly concerned when she met the family. The golf club membership agent has been actively involved in charity work for the past 20 years, Lianhe Wanbao reported….’ Copied from Insing.com.

Among the families helped was one with 12 children with the oldest aged 14 and the youngest in nursery. The parents are in prison and the utility bill was $8,500. There are people in very tough times and there are very kind people out there who are living angels to those that need help. Pang Yingfen works with a group of helpers who are doing their part to help the less fortunate. Bless the samaritans and the people in need.

A medal of contention

Feng Tianwei and the women table tennis players were battling their guts out at the Olympic Games representing Singapore. Feng has won the much awaiting Olympic medal for the country. No one is denying the effort and hardwork the table tennis players have put into the games for the glory of Singapore. Yes, Feng won and another medal from the team event. It is time for celebration to welcome our Olympic medalists home after a victorious outing.

What is unexpected and uncalled are the vibes, anger and unhappiness expressed by some Sinkies. Some said there was nothing to celebrate, some said they were ashamed of the medals, some even worst.

The medals were to do us proud, and to happen just before the National Day is opportune to be a reason to stimulate more patriotism and pride of being Singaporeans. But this is not going to be, at least in a large section of the population. For those who disagree with this buying of foreigners to win sports medals, hope they should not take it out on the players. They are just sports people, playing their sports, their profession. They are not politicians and only doing their job, to make a living. Spare them the personal attacks and let them enjoy the fruit of their labour.

The key issue is the scheme that led to these contentious medals. Is it worth it, to spend so much to bring about a hard fought medal only to be met with so much criticism and division among the people? Is it something the people wanted or something the govt or a few individuals wanted? Or is it a medal that we can do without?

This National Day may be time for reflection on this national glory and the justification for it. A medal for contention in the Olympics or in the world arena is not really the same as a medal of contention among the citizens of a country. I think it is money not worth spending.

Would there be a rethink as to how to continue down this contentious road of division. No need to say it was a mistake. Just do what Boon Wan did on the housing policies. Keep doing what is right and overturn whatever is wrong. He still has a lot of stones unturned as the damage against the people is severe and the lives of many were aversely affected, including delaying marriages and not giving birth to babies. Shit, who wants to make babies when there is no roof over his head? And when is the price of 99 year lease flat coming down? They cannot go up forever as the lease must surely expire. Is this another gimmick, that the price of a 99 year lease flat will continue to appreciate forever?

By the way, spend that kind of money for the medals, is it prudent and spending within our means? I think with so much money around to splash, it is definitely within our means to do so. What about being prudent?

6 Sikhs killed by gunman in Wisconsin

6 Sikhs were shot by a gunman in a temple in Wisconsin on Sunday 5 Aug 12. In the land that prides freedom in anything and everything, freedom to practice religion included, freedom to own guns, hate killings because of skin colour is still common in the USA. Many of the killings and racist bashing of coloured people in the US go unreported. Last month a Sikh taxi driver was beaten and last year 2 Sikhs were shot dead as reported by AFP after this latest shooting.

The hate crimes committed by the white Europeans are pervasive and happened in all continents, in Europe, UK, Australia and New Zealand. It is very rare that hate crimes were committed by coloured people against the white Europeans anywhere. The good thing is that coloured people often regard the white Europeans as gods, as people who championed human rights and equality, and they love and worship them. Unfortunately the white Europeans have this deep seated hatred for coloured people and this would surface at the slightest provocations or irritations. In the US and Europe and many white dominated societies and countries, there exist many extremist racist supremacy groups that are targeting at coloured people.

Let’s hope that the coloured people will take such hate crimes in their stride and live harmoniously with the white extremists in their midst. Don’t antagonize them, integrate with them, try the pacifist way of Gandhi, turn the other cheek, and there shall be peace all round.

But please, don’t call the white European racists. They are the most peace loving people in the world. They only take to shooting or bashing coloured people once in a while, maybe high on drugs or after a movie like Batman. They did not know what they were doing. Make love to them and they will love you in return.

PS. The killer was identified as Wade Michael Page, a war veteran. I am assuming that he is a white American. I may be wrong as I do not think this is an act of a coloured American.

What’s the real problem?

Khaw Boon Wan made the statement that he believed all the first timers who wanted to apply for a BTO flats in non mature estates would have a chance to do so. Is this statement comforting? At first glance it is like saying all those first timers who applied would get their flats, but no. Actually Boon Wan was talking about the chance to apply, nothing about getting the flat. Why is there a need to say this? Any first timer can apply if they have not been kicked out of the system.

This is like saying the NPark needs foldable bikes and foldable bikes are lighter than non foldable bikes. Anyone disagreeing to these statements, or are these the concerns? What are the real issues in both flat applications and the Bromptongate?

What about those first timers that have waited too long because of the cutting down in building flats and ended being kicked out of the scheme when while waiting, their income exceeded HDB? Many young people fell victims to the mismanagement of housing programmes then. They were simply told to empty their savings to buy private.

Now Boon Wan is discouraging them from applying for the 50 year loan gimmick. So what should they do, cannot apply for HDB and not advisable to apply 50 year loan? But the young people don’t really have so much money to splurge. So, would Boon Wan undo the mistakes of his predecessor and allow all the young people that were affected by the arrogant policies to buy a public flat, to be prudent and buy within their means? Just because some jokers said public flats are affordable, so it is affordable? Or just because some jokers decreed that you earn so much you must be able to afford private properties?

What do you think?