Curtain call for the Equity Market?

Stanchart is closing down its equity operation in Asia! More than 200 staff will be laid off. What does this mean? A major bank cannot make money or even losing money in the equity market? It must be. No banks would close down a profit making business.
Is this the beginning for more banks closing down their equity businesses? When banks are finding it tough to make profit in equity trading, what are the chances of the retail traders? You mean the retail traders are still around, still in business and trading with profits while the banks are closing shops? Does anyone want to know, bother to know, what is happening to the retail traders, to all the players including broking houses and remisiers in the equity business?
 
Who cares? It is no one’s business. The equity business can go bust, life goes on. Equity is only a small part of a bank’s business. Some banks even offer free or near to no commission for this service.
 
What about derivatives? Are derivatives related to the equity business and dependent on the existence of an equity market? Would the collapse of the equity market lead to the collapse of the derivative markets? Can the derivative market exist without the equity market or a dysfunctional or dormant equity market?
 
The immediate problem, maybe not a problem, is the loss of jobs in the Stanchart and maybe other banks following suit, to close down their equity business. Who would be the people laid off? Theoretically it would be those in the equity division. Or would a bank choose to lay off Singaporeans in other departments to save the jobs of foreigners in the equity division? To retain the foreigners from the equity division, a bank can transfer their foreign hires to other departments by getting rid of Singaporeans there. Possible? Likely?
 
What would be the case when banks start to close down their equity divisions? What would happen to the stock market when more banks take the path of Stanchart?

Kopi Level - Yellow

Be deaf frogs for once and do what you think is right

Funny for me to make this the title of my article. Singaporeans have been asking for change for the better in the last two decades more or less. Some may go to the extreme to say Singaporeans have been asking for change for the last 50 years. Let’s be reasonable and sensible and when things were right and good, we have to admit that they were good. And when things are not right and not good, we have to face them squarely. The pain and unhappiness did not happen over night nor did it happen 50 years ago. We were doing well, people were getting better off, life was good, everyone was upgrading, in education, in jobs, in income, homes and lifestyle.

The change started only two decades ago. We hit our golden age two decades ago and many things started to come back down to earth. Today the mantra is about downgrading, don’t aspire for university education, go for job retraining to become waiter or security guard. And if you are stubborn, and did not want to downgrade, go and become taxi drivers. Sell your homes and down grade to smaller homes or go to Batam, Bintan and JB if you cannot afford to live here. And pretend that cycling is good, car ownership is bad. So buy bicycles instead of buying cars. If cannot afford to eat in restaurants, hawker centres are just as good. You got to do that fast before the big boys buy them over and upgrade them to foodcourts.

My apologies to those doing exceptionally well and are sneering at this kind of loser commentaries. Yes there are many winners, but many more losers. And the losers are kpkbing for change. Actually change is easy if you only believe in yourself. Trust yourself, trust your own judgement and trust your own intellect, that what you see is real and you cannot run away unless you do something about.

It is time to be deaf frogs, act like deaf frogs, and do the right thing. Do what is right for you, for your children and grandchildren. It is as simple as that. Don’t expect the daft to do anything for you. You have to do what is right and ignore the noises around you.

Daft Sinkies must wake up and know what they want and do what is right. Start by being deaf frogs and act like deaf frogs. Or you would be boiled and turned into dead frogs.

Are Sinkies ready to be deaf frogs?

Kopi Level - Yellow

Roy Ngerng – The saga takes a nasty turn

For more than a month, nothing was heard of Hsien Loong’s libel case against Roy Ngerng. Privately I thought the two parties were trying to work out an amicable settlement out of court. I personally thought that would be a good thing for both parties. An outright confrontation when both refused to give an inch and went for body blows would only hurt both badly. None will walk away triumphant but with wounds and bruises all over. So I thought wise counsels must have prevailed and both will walk away with the least harm possible. Then I read Roy’s article posted in The Real Singapore, ‘ROY NGERNG: PM LEE TAKES ISSUE WITH 9 MORE OF MY BLOG ARTICLES TO PAY HIS LAWYERS $50,000 - 11 January 2015 - 1:48pm’

What Roy wrote in this latest article was not what I hope to see. Roy was acting like someone being pushed to the wall and would either scale over or bite back with all he got. It is a case of you want me dead, I will fight you to the end. And Roy has little to lose.

I have a lot of misgivings after reading the article. This development is bad for both of them. What happened? I can only guess that Hsien Loong was given the wrong advice again to raise the stake, to take Roy to the High Court and to demand higher compensation in the process. Assuming Hsien Loong won and Roy is made to pay a huge sum for damages, so what? Roy would be down and likely be made a bankrupt. Or he could go to the public for financial support to pay the damages like before. The latter would only excite more negative emotions and bad publicity for Hsien Loong and his party.

What would these bode for Hsien Loong? I could not see any good coming out of this for him. There is nothing of benefit to Hsien Loong. It would not only be a hollow victory but worse. How would the people look at Hsien Loong in his tenacious pursuit of this case? I am sure Hsien Loong would know that it can only do him harm than good. Then why pursue this case to such an unpleasant ending that would cost him dearly politically?

Who would benefit from the fallout of this case? Definitely not Roy, and not Hsien Loong. It would be like the proverbial saying, when the clam and crane fought, the fisherman would stand to reap the rewards. Who is or are the fishermen in this case and waiting eagerly and patiently on the sideline for the two to fall? Who would stand to gain the most when both parties ended in the gutters?

I must say I am taken aback by this latest development. Why is Hsien Loong forced to take this drastic step and in the process hurt himself more than he could hurt Roy? Some may think otherwise and thought this is a good thing for Hsien Loong, that he is doing the right thing. I choose to disagree. I would advise Hsien Loong to take the middle path if asked.

Kopi Level - Yellow

Sin City going upmarket – everything 6 stars!

Things are getting better in Sin City. The Jewel at Changi is going to be developed as a destination for air travelers.  Tourists around the world will fly here just to see the Jewel like seeing the Great Wall or the Pyramids. The rich will just fly to Changi to shop at a 6 star shopping paradise. On a cautionary note, just make sure it would not be run by rogue retailers.

As the most expensive city for the rich and famous, everything has to go up scale to pamper the super rich and share their appetite for the good stuff. Recently there was a report of a 6 star dog hotel with pipe in music, leather bed linings, fully aircon, room service and massages for the dogs’ needs on demand.

The latest is a 6 star columbarium in Sengkang West with all the high tech leading edge technical stuff for the dead to RIP. But this has met with a little resistance as the ‘would be residents’ nearby were up in arms against its location, too near to their 3 star HDB flats.  Though they were claiming all kinds of reasons to protest, I think the real reason is the disparity in wealth when their lodgings are the ordinary run of the mill HDB flats while the columbarium will be fitted with the latest gadgetry and all the glittering stuff, laser beams and pipe in music.

This must be it. How can people be living in less comfortable quarters than the dead in their luxurious 6 star niche apartments? The inequality and wealth disparity are simply unacceptable.

Where else or what else will be upgraded next to 6 stars? I think Geylang will be a good candidate. All the red light joints can be redeveloped to be luxurious suites to pamper the rich, to amuse them and make entertainment an art or a new life style where the rich would patronize the place in their limousines. Let the rats go somewhere.

Kopi Level - Green

Born to rule, made to rule or you are told they are Good to rule?

The debate as to why PAP is seen as the only political party fit to rule, to be the govt, or PAP candidates are simply ruling material, talented politicians while the opposition parties and candidates are NG is still very hazy in the minds of Sinkies. Why would anyone put up by the PAP is a political talent, an unquestionable talent to rule? Maybe I should use a very simple elaboration to clear this myth.

Let me put up a few famous sons of Singapore as potential candidates in the GE, Quah Kim Song, Fandi Ahmad and Sundram Moorthy. There is no intent to show any disrespect to any one of them. Assuming the PAP would to invite them for tea and found them suitable to stand as its candidates, they will instantly be deemed as good catch, good enough to sit in Parliament as MPs or maybe even ministers. Tiok boh? Every PAP candidate is either born to rule or made to rule by wearing the PAP badge. Their ability simply manifest itself, just like that.

On the other hand, if they are chosen by the WP or SDP or any of the alternative parties, what do you think? Would they be ridiculed and called names or condemn as unfit to be MPs? An easy line of attack will be not enough As or not distinguished academics or professionals. Footballers are a different type of professionals. Only academics and industry professionals, civil servants and uniformed chiefs are worthy to be politicians. You can bet the PAP would not put up any non academics as their candidates.

Maybe change the three names to some academics or professionals like Eugene Tan, Yang Razali Kassim and Janadas Devan. It would be quite easy to see these people as government material with very little doubts. But if they are to put on the badges of SDP or WP, would they be seen as the same good candidate material for political office? Anyone got any doubt of their abilities to be able to run the country?

Why are people forming different opinions of candidates immediately not because of the quality of the individuals but by the badge they wore of the party that put them up? Why are those wearing the PAP badge become instant good politicians, Born to rule and Made to rule but not those from the alternative parties?

Branding, brainwashing, conditioning or because the Sinkies have lost the ability to think and judge for themselves? Why is a duck better than a chicken as a politician or vice versa? Why choose a duck over a chicken? Any difference, or what is the difference? The badge, the party? Because someone said the duck is good and the chicken is no good?

Have the people forgotten how to think for themselves?  The people of Hougang and Punggol East have started to exercise this innate ability to think, to think what is good or NG, and to make their own judgement. Yes, the people are starting to think, and it is as simple as that. When the people start to believe in themselves and dispelling the myth that they are daft, there is hope. Remove the shackles and set yourself free from the evil spell of being daft.

Kopi Level - Green