Pay and you will get the answers

MAS is keen to know why some goods sold here are more expensive than in other countries or why the prices were different. A tender has been called to conduct a study on the causes. I think they roughly know that some of the factors could be labour, rent, tax, regulations, cost of living, markups, advertising, preference, the weather, hype, consumer irrationality, cost of govt, profiteering, no choice, monopoly, affordability etc etc. The affordability factor is unique to Sin as it means that the seller can sell at any price as long as the consumer has the money and willing to pay, or has no choice but to pay.

Paying for this survey will come up with a clear picture of the whats and the whys of expensive things. Hopefully it will be used to bring down prices so that things that are expensive for rubbish or wrong reasons can be made cheaper. But this is conditional on the caveat that the affordable logic is not used.

I think this will also be useful to me to know how to price my red bean soup too. Then I will know why my red bean soup is more expensive here than in Batam and JB. And for sure I will not price my red bean soup using the affordable logic as I cannot control the supply and demand.

And definitely the survey will help Boon Wan to price his HDB flats. At least he would know why the public flats here are more expensive than in other countries, if he still didn’t get it, and maybe he could then price the flats correctly, and be more affordable. Oops, don’t use the term affordable or the affordability logic can?

I strongly recommend that the Housing Minister also call for a tender to survey why housing prices are so high here. Tenders are useful instruments when conducted properly and the results would be objective and beneficial to who ever commission it.

High Speed trading ‘risky and unfair’ by AFP

This is the title of an article written by Agence France Presse a couple of months back. The gist of the article was about American finance experts raising the dangers and risks of high speed trading in Congress and warning of the consequences. They were all crying foul about how dangerous this animal is and that it must be put down. What they failed miserably to say was that this is cheating and an offence against trading rules and by laws, and against the principles of fair play, a level playing field that all regulators are expected to enforce to protect the traditional and retail investors.

‘”US equity markets are in dire straits. We are truly in a crisis,” said Mr David Lauer, a former trader and now a consultant on markets and high frequency trading at Better Markets ….High frequency trading now accounts for 50% to 70% of the volume on markets each day…But it simultaneously works in “dark pool” trading operations away from regulated markets, with computers able to work at hyper speed to exploit price anomalies and take advantage of buyers and sellers trading in traditional ways.’

This was what Lauer said to the Senate Committee on Banking. He was simply saying that the regulators of the exchange were working hand in glove with the high speed traders using computers, dark pools and tweaking the trading system, to cheat on the traditional traders. To put it even simpler, the regulators are part of the crime syndicate that were exploiting the trading system to cheat the traditional traders and getting away with it with the US Govt either sleeping or closing an eye to their crimes.

‘The effect is that traditional retail investors have pulled out, frightened by the volatility brought by HFT and the perception of unfair pricing…Mr Andrew Brooks of brokerage T. Rowe Price told senators “the almost myopic quest for speed has threatened the very market itself. There is a growing distrust of the casino like environment that the market place has developed over the past decade. We worry that the erosion of investor confidence can undermine our capital markets, which are so important to the economy.”’

Unfortunately all these efforts were in vain as Congress was a lame duck as many congressmen have vested interested to allow the cheating and crime to continue. Some could have participated in the crime themselves. The traditional investors would continue to be cheated and the stock market will continue to wind down to a stand still in time to come. By the end of the day when it becomes unbearable, it would be too late. And the criminals would have walked away with their loot, with the blessing of the US Govt and the appointed regulators to keep watch on the cheats. Who is there to watch over the regulators who became partners of the crime?

Is our market going to suffer the same fate? Are there any similarities?

What is this nonsense called unfair trading? There is no such thing as unfair trading in the stock market. Unfair trading is cheating and is an offence. Even keying in and withdrawal of orders with no genuine intent is an offence to create a false market. Buying and selling without change of ownership is also an offence. Are the computer traders doing this while churning the market and creating a false market? Are they allowed to do this? Anyone with a little privy to price sensitive information and traded on it is committing an offence for insider trading. And high speed trading is doing exactly this, with access to the stock market computer to have privy of orders and to exploit this to an advantage cannot be allowed but is allowed and accepted by the regulators as innocent as a little child.



When would the Americans call a spade a spade that HFT and computer trading are cheating and be made an offence? This is American nonsense at the highest level, allowing the computer traders to cheat on the innocent traditional retail investors. If the American Govt is not going to haul in the offenders, they will pay a very high price eventually with the collapse of the stock market and the end of NYSE.



The Americans must learn from SGX, to ban HFT and computer trading from the market, to protect the interests of traditional retail investors and the capital market. Unfair practices and cheating will never be allowed in SGX. That is why our market is so sound and solid as a rock, with trading volumes increasing and growing.

Two thirds of jobs created went to foreigners

Lim Hng Kiang has quoted some numbers on jobs created over the last 5 years and how many of these jobs went to locals and foreigners. He said, ‘In the last five years, we have been generating something like 120,000 jobs a year, of which 40,000 are Singaporeans and we end up with 80,000 foreign workers. Going forward we have decided that this is no longer tenable over a long term.’

In summary, over the last 5 years 600,000 jobs were created and only 120,000 went to Singaporeans. Could the numbers be extrapolated backwards for a 10 year period and could the number be 1.2m jobs created with 400,000 going to locals and 800,000 going to foreigners? How long has this ratio of employment favouring foreigner been going on that Hng Kiang now realised that it is unsustainable and must be stopped? He said that his ministry would now be more selective and stringent in the type of companies to bring in and the type of jobs that would be created.

His projection is that this year 80,000 to 100,000 jobs will be created and between 40,000 to 60,000 foreign workers would be added to the workforce. The numbers of jobs created for foreigners would still be around 50 to 60 percent. The country is thus creating more jobs for foreigners than for locals even when the govt is going to be more selective going forward. Only if some of the jobs created can go to local PMETs, the unhappy noises would be much lesser.

‘To cow play harp "对牛弹琴!"

Following SDP’s detailed proposal for a NOM public housing scheme, many well meaning citizens have voluntarily cracked their heads to come up with many meaningful proposals to salvage the mess created by the housing policies. This is a really thankless task, not being paid a single cent, and at their own time and resources, they are passionate enough to do the sums. This is not the kind of thankless task that are paid in the millions and no answers. The thinking, effort and solutions should rightly come from those that are paid in the millions. True or not?



Another thorough proposal was in the Sunday Times yesterday by Chua Mui Hoong, a veteran establishment spokesperson. She was given more than half a page in the paper on her proposal, ‘How to cool the HDB resale market’. This effort is not the free labour type like those of SDP or other citizens but still free in a way as she is not responsible for the housing policies and the mess. Her job is to write for the paper.



What she suggested in her proposal made good sense, and so were the proposals in the SDP paper. All were made with good intentions to help the struggling minister and ministry to do a better job. But I must say again that it would all be in vain as the ministry and minister were thinking that they have done a damn good job. So what is the fuss and all the unnecessary proposals and recommendations for?



There are many reasons why all these proposals will end up in the dustbin. Firstly, they all assumed that there is a big problem that needs to be addressed. Secondly, they assumed that the ministry and minister did not know their stuff or did not know how to solve the problem. Three, accepting the proposals is as good as an admission of incompetence. How could lay people not paid for the job have the audacity to think they know better? And how could the professionals be made to look dumb?



The last point is always a hurdle and a big farce whenever an institution or person asked for suggestions. Accepting other people’s idea is acknowledging one’s own incompetence or shortcomings. And not accepting after opening the mouth to ask is an act of insincerity. Think Natcon.



What I don’t believe is that the highly paid super talents could not think of all the recommendations put up by the laypeople and the public. They are paid humongous salaries not for nothing. They are exceptionally talented and how could the less talented ignoramus think they could think better? Doesn’t make sense right? So, what is happening? To scratch or not to scratch?



The ‘to cow play harp’ is not really a good analogy. This phrase applies to the hopelessness of playing music to one that doesn’t understand music at all. Here the cow is no ordinary cow but a wise cow, a clever cow who knows what is happening and how to solve all the problems. What is holding back the cow or preventing the cow from coming out with a complete and effective solution really beats me. Excuse me for the pun.

Painting with your camera

The painters are some of the most talented artists around. They train hard, work hard and acquire great skills in wielding a very primitive instrument developed thousands of years ago and still in its original form, the brush, to create and paint great works of arts and masterpieces. A good piece of brush could be had for a few dollars.

What the painters can do the photographers can’t despite the highly expensive and sophisticated precision instruments in their hands. The camera is not only a piece of fine engineering tool but also a computer added in. The best could fetch several tens of thousands of dollars. Any decent piece of camera of professional grade would cost several thousand dollars.

Other than in capturing great shots that are newsworthy, not many photographers are able to create photos that could come near to a masterpiece of an artist/painter. Are the photographers ready to accept the limitations of their expensive tool and resign to the fate that photography is only photography and still found wanting when compare to what a cheap piece of ancient primitive brush can do?

This is about to change. The camera can paint. There are still many limitations that the camera cannot take the photographers to the world of paintings. But with a new technique that I have developed, the world of paintings is beckoning. Using the technique called The Art of RAR, short for Reflection and Reflection, I am able to create paintings using the camera. My experiment into this realm of photopainting is still in its nascent stage, but the potential of painting with the camera is only limited to the imagination and creativity of a photopainter. Some of my works can be viewed at www.artofrar.blogspot.com.

The kind of paintings that could be created from The Art of RAR technique could vary from realism to abstract art with ease, using only natural light and the natural environment. More creations are waiting to be discovered in a control environment with the right set ups and accessory equipment. Photography is not going to be the same again. Photographers need not be limited by what they were used to be doing with their cameras and could venture into many unknown frontiers of artistry. Technology has given the photographer and their cameras room for more creativity and innovation and experimentation.

The Art of RAR is only a small step forward.