Deregulation is good for the banking and finance industry?

Who said so? The West said so. The bankers in New York and London said so. So we just follow, blindly, and things will be just fine. Today’s frontpage news,

‘SINGAPORE: The Monetary Authority of Singapore (MAS) has censured 20 banks in Singapore, after completing a year-long review of their rate-setting processes.
Singapore's central bank also wants to introduce a new regulatory framework to criminalise any future rate fixing activity.

Three local banks and 17 foreign banks have been censured by the MAS.
The local banks are OCBC, DBS and UOB.

The foreign banks are ING, Royal Bank of Scotland, UBS, Bank of America, BNP Paribas, Barclays, Credit Agricole, Credit Suisse, Deutsche Bank, Standard Chartered Bank, ANZ, Citibank, JP Morgan Chase, Macquarie, Bank of Tokyo-Mitsubishi UFJ, HSBC and Commerzbank.

133 traders from these banks tried to manipulate the Singapore Interbank Offered Rates (SIBOR), the SWAP offered rates and foreign exchange spot benchmarks….’

The above is quoted from Channel News Asia online.

When the last financial crisis hit, the world’s financial institutions and framework were threatened to go down and collapse. Thanks to all the great recommendations for deregulations to allow the bankers to do as they pleased. And no man of any importance was found guilty or put behind bars for the crisis. The govts of the West could not find anyone doing anything wrong. How could they when the govts approved of what they were doing? Everything was legal and all approved by the govts. Oh, just one and because he was mad. It was written in his name, Madoff. So this Madoff was the only one found mad enough to be caught.

And did they know what caused the financial crisis? Yes. And did they do anything to prevent it? No? The whole damn system of frauds continues to run merrily in ever bigger scale and churning more paper profits.

So now what, 20 banks and 133 traders were caught here! Would any big fish going to answer or be put behind bars? No. I don’t think they can find anyone with a name ‘mad’ to nail. And ‘There was no evidence of “successful manipulation”.’ So most of them will get away scot free ya? Maybe a few small guys will be made an example of. The rest will get a tap on the wrist. Be good, be nice. Go home now.

And a big pleasant surprise, MAS is going to introduce new regulations and make some of these fraudulent practices criminal. Are we out of our mind? Deregulation is the right thing and the right way to go. More regulations are going against the recommendations from the Mecca of world finance.
Maybe we have come to our senses, that all that glitters from the West is not really gold. We need to find our own footings and do what is right from what we know best. It is time to stop blindly following the mad and irresponsible West in their destruction of the financial system. It is time to take stock, do the right thing, get rid of all the snake oils and dangerous products being sold here. Return the banking and finance system to basics, to the real business of banking and finance and not gambling and horse racing.

A few regulations are not going to help. It is the whole system designed by the West and the toxic products that need to be thrown out of the window. It is time to stop hiring the crooks from Wall Street and Fleet Street. It is time to send them home. It is time to do the right thing to protect our banking and financial system, to slow down, to scale down the wild wild west, free wheeling nonsense. As a financial centre, it is time to reset the standard and adapt only the safe practices, and be prepared to lower the expectations of the cowboy robber bankers. Only then can our system be shielded from the wild swings and frauds of the western system. We need to find our own way. The present one is flawed and treacherous.

There is an urgent need for a think tank group to examine what were wrongs and fraudulent practices and to make amends quickly.

Social Media, the new fourth estate that cannot be ignored

It is about 10 years since the internet becomes another serious source of news and voice for the masses here. The lighter touch by the Govt, should the citizens be grateful to this, has allowed social media to gain acceptance by people seeking a more honest view of things and events in the country. Of course social media will have its hordes of very one sided view bloggers, just like main media. But on the whole the more rational middle ground is emerging to give more credibility to social media as an alternative voice.

The recent events surrounding so many controversial issues have enhanced the status and importance of social media for that perspective that cannot be found in the main media. Social media is gaining an ever larger group of followers and readers seeking for the truth, a balance to the one sided reporting of main media.

The new role of social media can be seen in the recent protests in Hong Lim Park. Though these events were strangely not reported in the main media until the day after, social media is now able to inform and mobilize the public to attend such events of mass appeal. More national issues that somehow would not be spoken off in the main media, like AIM, or understandable issues, will see more coverage by social media. Yes, social media has its role cut out with the main media doing what is the right thing and reporting on the right thing.

The social media will report on its own version of the right thing, with scars and warts and stench. In this aspect, the main media has no equal and cannot compete. And social media is there for free, and written by volunteers whose qualifications and integrity are no lesser than those paid reporters and journalists.

Another role that will take on more prominence in social media is to demand for action from public and private institutions. It was the norm in the past to write to the main media for complaints and grievances of the small people that were ignored by institutions. Writing to the main media, and if found suitable by the editors, would elicit immediate responses from the agency or institution concerned. The qualification is suitability in the judgement of the editors. If it was found unsuitable, then it would not see daylight.

Social media will not enforce such censorship. Everything will be published except the outright objectionable. So, genuine complaints and grievances will enjoy air time in social media as they are. And no institutions can afford to ignore what is written in social media. Social media cannot be ignored.

Politically the Govt has come to accept the increasing role of social media and likely to make readings of what were published in social media necessary, particularly the well established websites. Many people are also attracted to the refreshing angles of news and views of social media and making social media a must read daily.

This is what the fourth estate is all about. The old fourth estate in the guise of the main media has been found dead, strangled and buried. The new fourth estate in the form of social media is doing what it should do and expected to do, the conscience of society. It is the real fourth estate that cannot be shut down or gagged. It is fluid, formless and elusive and will slip through any dragnet to emerge stronger, across oceans, and more relevant and more needed by the masses, to represent the interest of the masses against any oppressive regimes.

The role of social media is still in the process of defining itself. And this is only its nascent stage.

The tragic choice of a troubled and distraught mother

We have all read about the 31 year old unemployed mother who dropped her 9 year old son from her flat. The poor child died. The poor child was a special needs child, needing special attention and special school. The poor mother had to stop work to look after him full time. And she has only her own mother to support her with her mother’s miserable income of $1,000 pm. Yes, a $1,000 income in the richest country in the world is miserable, barely enough to keep one alive. Some will disagree and claim that a $1,000 income could afford to buy a public flat and get by. Well some will believe it is possible.

How could three persons, an old lady, a young mother and a special needs child lived on a $1,000 income. Maybe there were some handouts from the govt or some charitable organizations. This is a tragic story of the lives of three miserable beans trying to get by in one of the most expensive country in the world.

How many of you think it is easy to live with $1,000? After deducting some of the compulsory bills and expenses there would be nothing much left. The three would be lucky if the remainder was enough just for food and nothing else. No matter how reclusive a life they led, there must be plenty of other expenses to pay for, the schooling for the child, the medical expenses, and what not.

What choice is there for the young woman, for the poor child and the poor grandmother? What kind of existence, with money not enough, and with nothing but a life centred on caring for the needs of the special child. Don’t ask me.

Anyone in this most expensive city in Asia and probably the whole world, if struck by a sickness that needs repetitive care and medicine, unless one is a millionaire, how many will earn enough just to take care of the medical needs and medical bills? A person with kidney problem and needing dialysis, mind you the cheapest is still going to cost at least a $1000 a month if I am not wrong. An aged or invalid in a nursing home is going to cost a couple of thousands at the lower end and pray no extra medical costs. There are those that need chemotherapy, physiotherapy or ‘whateverapy’, as long as the treatment is prolong, the poor chap is going to be bankrupt in no time, or the poor chap is going to bankrupt the family members.

Long term medical care, long term care for the special needs children, long term care for the aged etc etc are very unaffordable. Many families are shouldering such emotional baggage and financial burden and only they themselves understand the meaning of medical cost.

The poor woman, now in prison for delivering her son, would probably think it is better to end it all. The poor child will be her life of living hell. She would have nothing else to live for short of a miracle, a little mercy from some kind souls.

How many people are in the same plight, and pondering to do the same, to end it all, in the most expensive city in the world where every one other person is a millionaire or half a millionaire? Not many of these millionaires or half a millionaires can afford a long term illness or long term care for a member of his/her family. It is no joke.

The poor woman in prison is likely to remain in prison for the rest of her life. She just switched from a prison without bars to behind bars. The latter may be less demanding financially and emotionally less draining. At least she will have a life of her own to live for, behind bars. At least she set free the poor boy trapped in a flawed body. Some may disagree and think it is better for the boy to continue to live. What about her mother, now with all $1,000 to herself for as long as she can work?

US China relationship, a changing balance

The ex CIA agent seek protection in Hongkong/China from the Americans has become the next most famous case after Julian Assange to thumb his nose at the empire. The Americans are furious and demanded for more information and the whereabouts of Edward Snowden from China. They are applying to extradite Snowden from Hongkong to the US. Would it happen? Or would China squeeze the Americans by the balls, as had the Americans did it to China for decades and in so many cases in the past?

China has responded to the Americans by claiming ignorance. They did not know of Snowden’s whereabout or anything that Snowden has leaked. Is this not familiar? This is the exact reply and position taken by the Americans whenever there is a dissident hiding in the US or helped by the US to escape to the West. The Americans would simply answer, ‘We don’t know’. So China is learning from the Americans, ‘We don’t know.’

The strange thing is that an American now feels that China is a place he can feel safe from the clutches of USA, the evil empire. Before this event, the safe heaven is always North America. And dissidents escaped from everywhere, from China, to be safe in America.

Would there be more western dissidents seeking solace, comfort and safety in China? Heheheh. The wind is changing direction.

And oooooohhhh, Edward Snowden has disclosed that the Americans have been hacking into China and Hongkong since 2009. And the Americans are accusing the Chinese of hacking into American institutions as if the Americans were all so innocent. Tsk, tsk, tsk….And perhaps Obama was so happy to use this incident to pressure Xi or to embarrass him in the recent visit. Perhaps Xi is now on the hot line to Obama asking him if he cares to explain.

The pot of gold at the end of the rainbow

The exuberance of foreigners working in this little island is understandable. They need not be at top management to be able to see the pot of gold at the end of the rainbow. And if they do rise to top management level this is heaven on earth. After their stint in the island, with good quality living and a reasonable income, many would have made a small fortune to bring home and live a life very much better than their contemporaries. Many could even join the ranks of nouve riche back in their countries.

Look at the Singaporean counterparts, the citizens of this island. Unless one is in the top 10 or 20 percent of the income bracket, many will remain in the asset rich and cash poor category, feeling rich but living from hand to mouth, every month just enough. Many will remain living in their HDB flats, unable to own a car, and trying to feel good, to justify taking public transport to work or to play.

Where is the pot of gold at the end of the rainbow for the average Singaporeans? Many of the PRC Chinese, India Indians, the Pinoys, Malaysians, and other Southeast Asians will be returning home rich while just an average Joe here, earning much less than the average Singaporeans. Isn’t it an irony, a kind of sick joke, that many of the citizens of one of the richest country in the world will spend the rest of their lives chasing the rainbow but not finding the pot of gold. On the other hand, the average foreigners are all counting the days when they can return home rich, some very very rich. Many will have their dreams fulfilled with great certainty.

Why like dat huh?