WTSAWTD

This is a slight variation from WYSIWYG. WTSAWTD means What They Said And What They Don’t. A couple of years back, we were told that big funds would be invited to trade in the stock market, to provide liquidity so that the market will be active and investors can buy or sell easier. Trading activities would increase and good business for everyone. Bid sizes were also reduced for the same purpose. Expensive stocks would be split to make it easier for the small traders to buy one or two units at lower capital outlay, ie more business also. Computer tradings would be introduced and facilitated to improve liquidity and volumes. Everything was done for the good of the market and small investors. Then lunch breaks were even removed and the carrot, more trading hours mean more business, at least another ten per cent increase in business. Derivatives are good, sophisticated instruments for the sophisticated fools. With all these changes, the stock market would fly to the moon.
 
All this has come to past. The volumes get thinner and thinner. The small traders were wiped out, sent to the cleaners. Who made the money was obvious. The stock market is a zero sum game. One makes another must lose.
 
Many good things were said and many not good things were not said. No one talks about how dangerous the big funds and their computers were to the small traders. No one says anything about redesigning the trading system to facilitate the computer traders to clean up the small traders. No one says anything about the unfair advantages of the computer traders and the trading system against the small traders. No one says that no lunch break was to allow the computers to keep trading without having to square and reopen their positions. No one says smaller bid size allows the computers to trade at lower cost and can move faster or can manipulate the stocks more efficiently against the small traders. No one says the losers were the small and big traders not using computers. No one says anything about who are the absolute winners in the market. No one says the number of genuine traders in the market has drastically been reduced and that if the computers stop trading, the market will come to a stand still or turn into a grave yard.
 
No one is going to say that the market is dying. And they are still saying the market is doing very well, in the pink of health. And to make it looks pinker, bring in the makeup artist for the dead, HFT will be introduced to increase volume and liquidity again. Now, what are they saying about HFT and are they not saying about HFT this time?

Health of citizens is health of nation

We need more babies. Our TFR is falling and this is bad. Why is it bad and why do we need more babies? It is to replace the ageing population and to keep the GDP growing, period. Can we not let the population fall naturally and let the GDP shrink proportionally? Cannot, must have more babies to provide the workforce to keep the economy healthy. Babies are important to the economy. Then why should bringing up babies be the responsibility of their parents, to pay for their growing up, medical and social expenses, including education? If the govt or country needs the babies, why shouldn’t the govt pay a portion of their upbringing, including healthcare?
 
There is a 20 to 25 years of cost to grow a baby into a productive worker to feed the economy. No babies, no workers, no economy. The babies are important and so are their growing and productive years. The only time they are less productive, not useless to the economy, is when they are in their retirement years. But not working does not mean not contributing to the economy. They consume goods and services and have to pay for them. They are still contributing to the economy.
 
If the people are so important to the govt and the economy why shouldn’t the govt take care of their health and well being? Without a healthy population, there is no healthy economy. Actually, like it or not, ultimately the people pay for their health and well being. There is no other way, but only a matter of nuances. Either the people pay directly or the govt pays from the taxes collected. The taxes are public money, not someone’s money, not OPM but TPM, The People’s Money.
 
To put things simply, the govt needs the people to be healthy to contribute to the economy, to produce goods and services, to consume goods and services, to pay taxes and to pay the thing called the govt. Why should the people pay for their good health to feed the economy and to pay the govt to be the govt? It is the govt and the system that needs the people, not the other way round.
 
The prevalent thinking now is to make the people pay for their healthcare directly. Can other ways be found? The govt will claim that it has no money to pay except to increase taxes. That unfortunately is true. So how? Ask the people who are being paid millions for the solution lah. So simple also dunno. Pay them millions for what? Heheh, they will tell you the best solution is for you to pay. Problem solved.
 
Gambling income for healthcare
 
We don’t have the two casinos before. Can the taxes from the casinos be applied to provide healthcare for the people? Why should this new and additional income be spread to other uses? Why not devote this source of income to care for the people’s medical well being? Why cannot? And if not enough, why can’t we take some from the Tote Board? The health of the people is key to the health of the economy and to generate revenue to pay the people called the govt.
 
Self Insured to take away insurance cost
 
The other point is to self insure at the national level. No need to pay to a huge organization and staff to manage an insurance scheme. No need to worry about paying for the middle men and profits for the shareholders and fat bonuses to the top management. This should do away with the unnecessary insurance cost.
 
National Healthcare must be basic and limited
 
A national health scheme must be limited in nature, nothing extravagant. Such a scheme must be limited to C class equivalent of services and care. Anyone who wants better services must pay for it. And it should all be about healthcare and not cosmetic care or frivolous medical treatments. The medical professionals can list out what to be excluded from the scheme. The medicine and equipment can also be generic if available. Anything better should be over and above and be paid by the patients that demanded for them.
 
Lower cost to those who need healthcare/Pay for use
 
The operating cost of a national healthcare scheme should avoid the costly frills of extravagance. The people can then be at ease of being assured of a basic healthcare plan and they need only to pay a small fee, at outpatient poly clinics or when hospitalized. There is No need to pay upfront whether they need or do not need through insurance premiums or minimum sums in the Medisave. Free the people’s savings for more immediate needs. A national healthcare scheme should not be entirely free to avoid waste, but not so prohibitive and costly. With the bulk of the cost coming from the casinos, the amount to be paid by the patients on needs basis can be greatly reduced.
 
Option to pay for more
 
The people would also have the choice of paying for higher level of services and the frills that come with the higher fees. What should come under the national health scheme and what should not can be worked out by the professionals.
 
Recompute healthcare costing/No ransom from the sick
 
Another area to review is the computation of cost. As a national health system, items like land cost need not be included or at least not marked to market. Without a profit motive, the cost should be more of consumption, recurring operating cost and cost of replacement. No market forces or mechanism nonsense.

These are just some general thoughts for input into a national healthcare scheme. The health of the people is the concern and interest of the state and not just the individuals. The details can be worked out by the people who are paid to do the job. At the moment the minds seem fixated to a particular model already. Can the authorities explore the unbeaten path, to take a plunge into uncharted waters? No insurance premiums to be paid up front, (paid by gambling revenues) free the people from their worries of huge medical bills without ripping their pockets by all kinds of funny schemes that boils down to the same thing…make the people pay?
 
Give people the choice
 
Give the people the CHOICE to pay, not the choice on how much and when to pay or compulsory to pay with eyes fixed on the money in the Medisave of citizens? A basic national healthcare system supported by gambling revenue and without having to tax on everyone who may not need to use it must be the way going forward. The people cannot be held captive by insurance and insurance and insurance and nothing else. The people cannot be forced to pay and pay and pay, compulsory some more with no option to opt out.
 
What is the point of paying out of this world salary if they cannot come out with out of this world solution? Is it too much for the people to expect or even demand out of this world solution? Some of the features mentioned above are not even out of this world, just plain commonsense and better utilization/allocation of funds with no wasteful payments into a nation wide insurance scheme when every daft Sinkie is made to pay like Santa Claus. Paying insurance is like making everyone pay for a few who are in need. We need a scheme where the sick need not be bankrupt by hefty hospital bills and the healthy need not have to pay. Are we so bankrupt of ideas? Shall we send a few teams overseas to learn from those that are not so talented than our top talents?
 
See, no need to make everyone pay insurance premiums, no need to lock people’s savings in the Medisave Minimum Sum scheme, no need to waste manpower to have a big organization to collect and manage the money. Unless of the course the whole objective is to take more money from the people, another devious taxation under a ‘for your own good’ scheme, then no need to waste time on feedbacks or CONversation with the people. Just make Medishield Life COMPULSORY. PERIOD.

DBS doing National Service

‘Thousands of HDB homeowners are turning to DBS Bank for a mortgage product that guarantees savings.
 
Those who took up a POSB HDB loan when it was launched in April could be looking at savings of as much as $1,600 by next month, calculations from DBS showed.…
 
The first POSB HDB loan pilot launch – where homebuyers enjoyed a floating-rate loan with interest capped below the HDB concessionary rate for 10 years – was fully sold.
The bank is now into its second offering, which charges the same rate but for eight years, said Ms Lui.
 
The current POSB HDB loan charges for the first eight years the three-month Sibor (Singapore interbank offered rate) plus 1.38 per cent, capped at the CPF Ordinary Account rate. The current CPF Ordinary Account rate is 2.50 per cent.
Thereafter, the loan charges three-month Sibor plus 1.48 per cent. The September three-month Sibor is 0.374 per cent.
 
The HDB concessionary loan now charges 2.60 per cent, which consists of 0.10 per cent plus the CPF Ordinary Account rate of 2.50 per cent. Based on the three-month Sibor of 0.38 per cent, borrowers who switch from the HDB concessionary loan will pay a lower interest rate of 1.75 per cent.
 
For a homebuyer refinancing from the HDB in April, based on a loan of $400,000 and 25-year tenor, the potential savings over six months amount to $1,684.
And should interest rates rise over the next eight years, DBS guarantees that it will be capped at the CPF Ordinary Account rate of 2.50 per cent or 0.10 per cent below the HDB concessionary rate….’
 
The above is posted by Thoughts of a Cynical Investor in his blog. What is obnoxious is that bank housing loan rates have been below the rates charged by HDB for years and why is HDB is charging 2.6%? Making money from daft citizens is so easy as long as they don’t complain.

WP’s frightening silence

The Workers Party has skipped many controversial social and political issues with a stony silence. Many critics have accused the WP for opting out, for losing its balls, and choosing the easy way out by keeping silence. This non committal strategy is frowned upon by those who expect the biggest opposition party to take the ruling party on important issues, at the very least. And many have expressed disappointment with the WP, some even claiming that it has been bought over by the ruling party.
 
Within a matter of days, two outspoken MPs from the ruling party have lashed out at the WP for their reticence on the hijab issue. They accused the WP for sitting on the fence by not taking sides and leaving the PAP to make a stand that is not well received by the Muslim community. It will cost the PAP dearly in votes from the community. This has made the PAP fuming mad as it cannot win on this issue.
 
WP’s silence is the best strategy for the moment. Let the PAP confront the Muslim community alone and take the blow. WP only stands to gain by being neutral. The strategy works if it can extract strong reactions from the PAP. And judging from the frustrating comments by Indranee and Hri Kumar, the WP is not only scoring without lifting a finger, it puts the PAP in a very defensive and uncomfortable position and feeling the full weight bearing on them. The attack also proves that WP has not been bought over or has sold out on its political mission.
 
The strategist in Low Thia Khiang is showing itself again. The PAP has been rattled and could not do anything about it except to provoke the WP to stand up and be shot at. You can bet the WP would stay even lower and let PAP face the wrath of the Malay community all alone.
 
Who says a political party must always kpkb to be effective? WP’s silence is not only effective, but also very unnerving.

There was a time – Jean Yeo

This is a six part series produced by Jean and Pedro and shown on Channel 5 at 9 pm every Monday. Tonight was the first half of the 1964 racial riot in Singapore. The next half will be shown on ncxt Monday. I am not sure how many of you have seen this episode and the other episodes of early Singapore.

I was in Secondary Two then. Still a bit young to really understand what was going on but could not miss the fear and tension of those days. My memory was still vivid on that night, in a coolie keng in Borneo Road. This was a row of double storey prewar houses with 9 units attached together and an open verandah on the upper floor. One unit was occupied by a lone Malay family, two by Indians, one of which was an Indian coolie keng. The rest were Chinese families. Though only nine units, there were many Chinese families as each family occupied just one room with the exception of three units. There were several rows of shophouses along the adjacent Nelson Road. The nearest cluster of Malay residents was in a govt quarters at Miri Road about 50 metres away. It was a mixture of Malays, Indians and a few Chinese families.

I was sitting there with more than ten Chinese coolies, all male singles from China in their 40s and 50s. Remembered them looking at me, an excited little boy in their midst. They did not say anything to me. They were very calm and did not seem to want to do anything or were bothered by the news of the racial riots in Geylang. No weapons were prepared, but as coolies there were many wooden poles under the long beds if needed. There were no talks of going after the nearest Malay kampong in Radin Mas a km away.

Outside there were movements of people. The gangsters had a job cut out for them. They became the much needed guardians of the neighbourhood. Over the few days of curfew, nothing really happened in the neighbourhood. Not a single incident. The Malay family were not disturbed at all. But one could imagine their fear living in a Chinese neighbourhood.

I think this was the normal state of affairs in many areas when the non Malays were the majority. The clashes were in Malay majority areas in Kampong Glam, Geylang and Eunos areas. This could explain that the riots were likely to be incited by foreigners.

The only event that came pretty close was the death of a woman that I happened to know. I used to call on them to collect night soil removal fees, the bucket system that we provided as a side income to some of the households in kampong Radin Mas. It was weeks later that news of her killing reached us. That dreadful night her family members heard her scream just a little distance from their attap hut. It was not the right thing to be brave to rush out. They collected her body the next morning on a path leading to their home. By then we had stopped providing the service and I no longer run all over the kampong to collect the monthly fees.

The tragic event of 1964 was called a racial riot in Singapore. The non Malays clashed with the rioters and fought for their lives. And there were the presence of impartial law enforcers to keep everything in control. Though we were in Malaysia, the patrols were conducted by teams of mixed racial origins officers to ensure that every incident was evenly handled. Within the local communities there were really no bad blood or deep rooted baggages to allow the riots to be blown out of proportion.

The riots in neighbouring Malaysia and Indonesia were misnomers. They were killing the Chinese in those days, with the partial law on the side of the killers. Many Chinese were brutally killed in both countries that the Chinese media termed the events as ‘pai hua’ or killing of Chinese. They were not racial riots but highly racist mobs out to kill the Chinese.

This dark part of our history came and gone and hopefully would not be repeated again. The HDB policy of allocating flats to different ethnic groups to prevent any concentration of a particular race had its origin from this tragic past. We must not take the small discomfort and inconvenience of such policies lightly and think it is ok to remove them without taking heed to our history. What happened in 1964 was nothing compares to the events in Malaysia and Indonesia that were best not spoken. The wounds have healed but the ugly scars are still there.

It is worth watching the second part of the 1964 riots next Monday and to hear the personal encounters of the people who are still living with us. We must learn from our past, our history and our mistakes and not to let it ever be repeated. We must not be complacent to what can go wrong once again. Never take racial harmony for granted.