[redbean]

Don't compel if you can't guarantee

The govt is making CPF Life compulsory for CPF contributors by 2013. And it claims that the payout will be for life. But it also has a provision to say that if the fund is insolvent, it can stop paying to the CPF members who have paid money into the scheme.

Halimah Yaacob has correctly pointed out that “the relationship between the CPF Board and the CPF members, however, is not just a legal contract (but) a social contract as the board has a social responsibility to manage CPF funds prudently in order to help Singaporeans meet their retirement needs.” Straits Times.

Did the CPF members ask to be in the annuity scheme? NO.

It is the govt that is compelling the CPF members to put their money into the scheme. If that is so, the govt better guarantees that the money is there and will be paid to the contributors as promised. Otherwise don't make it compulsory. The provision not to pay is unacceptable.
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what i posted is just my personal view. feel free to disagree.

[redbean]

That deadly deficit hangover

Tharman was talking about economic principles and the need for exit strategies and direct, targeted help. On govt spending and fiscal policies he warned that govts need an exit strategies for over spending or else the bubble will burst.

This tickles my thought about exit strategies for the high property prices and the payback of our CPF money. What kind of exit strategies are there to prevent the bubble bursting, or to prevent the poor 99 lease holders from seeing their multi million dollar properties turning to 0 value when the leases expire? And the huge CPF debt owed to the CPF contributors, how and when would they be returned? Delaying payout, shifting the goal posts, more schemings, would only delay the problems but would not solve it. In fact the problem will only snowball unless there is a workable exit strategy to pay back when the money is due.

The two nightmares that Singaporeans are facing are, one, when their properties, worth millions of dollars, become nothing. The second nightmare is when they realise that the CPF money is only a dream, to feel good, to be happy reading the numbers on a piece of paper and feel very rich.

And yes, Tharman still thinks that it is a bad idea not to tax on basic necessities. It is better to tax on them and then targetted the money collected to those who need the money. An excellent strategy which I still don't agree. Just like the strategy of escalating property prices.
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what i posted is just my personal view. feel free to disagree.

[redbean]

What integrity to protect the small investors?

We want fairness, fair odds to trade in the stock markets, to win and lose fairly. We demand a fair trading system and fair treatment from the regulators. No loaded dice in the stockmarkets. These are the minimum conditions that small investors should expect from the stockmarket trading system. Allowing a trading system to be loaded against the small investors is not only unfair, but CRIMINAL. It is a crime amounting to cheating or collaborating with the cheats to rip off the small investors.

There is a very revealing article in the ST today, of course it must come from the gods in America, in Wall Street, from the New York Times. Our demigods and immortals are blind or ignorant to such revelations. Even if they do, they won’t make a whimper of it. The best they could do is to copy an article, like this article, and innocently push it out to the public. For what? To educate who?

High frequency trading moves in blink of an eye

‘Critics say if offers unfair advantage over traditional trading.’ The big boys, hedge funds, are making millions and billions by the use of sophisticated trading systems and computer programmes to trade against the small investors. And the verdict is simple. They win and the small investors lose. Programme trading has been put in practice for many years with the consent of the regulators who knowing very well that it is unfair to the small traders. They are accomplices to the crime of robbing and cheating the small guys. Period.

Not only that the big funds have technology on their side, the trading rules are also on their side, and aided by a big war chest, the unfair advantage they have over the small investors is unimaginable.

Why were they allowed to participate in an unfair game where integrity, honesty, transparency and fair play are fundamental principles of the whole trading system? They provide volumes, they churn up volumes, giving the fictitious image that the market is active and trading with high volumes. It was all a big farce. It was all programme trading that contributes to the high volume, buying and selling at the same time. Syndicates manipulating the stockmarkets are frown upon and apprehended for cornering the market, for market manipulation. Is programme trading in the same league?

Where is the integrity to ensure a level playing field for all? Where is the integrity to protect the small guys? Or is it another case of immoral morality, exploiting the innocent small guys with a loaded dice?
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what i posted is just my personal view. feel free to disagree.

[redbean]

Peeking into stock orders 'an unfair advantage'.

'The hallmarks of our markets are that they are open and above board, and the little guy has as much of a chance as the big guy.' - Senator Charles Schumer, Chairman of the Senate rules and administration committee.

What is happening in Wall Street and many stock exchanges across the world where the hedge funds are operating is that they tapped into the main exchange operating system to peek into stock orders from other investors. This gives them a 0.03 sec lead time to compute and place their orders to take advantage of other investors with their powerful computers.

According to the Tabb Group, it reported that these high frequency traders accounted for more than half of all the trades and pocketed 'about US$21 billion in profits last year. Who lost?

Schumer wants a stop to such advantage against the small investors and wants to prohibit trading by high frequency traders. Well, the Americans have some decent man to call a thief a thief. There is conscience to do right and justice.

Do we have such high frequency traders trading here and taking advantage of the small guys? If there are, what are we going to do about it? Or why did we allow this go on for so long? Fair game? Caveat emptor? This is worst than minibonds!

Are we fair to the small investors? If billions have been lost by the small investors because of such malpractice, who is going to pay for it? No one is responsible for sure. Does anyone know what is happening?
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what i posted is just my personal view. feel free to disagree.

[redbean]

Sophisticated investors welcome, family jewels not for sale

By Shamim Adam
July 29 (Bloomberg) -- Temasek Holdings Pte, reeling from the
aborted appointment of Charles "Chip" Goodyear, said it lost more than
S$40 billion ($27.7 billion) in asset value and that the sovereign fund
may allow public investment for the first time.
The Singapore investment company will seek "sophisticated
investors" and won't sell the "family jewels" for short-term gains,
Chief Executive Officer Ho Ching, the wife of Singapore's Prime Minister
Lee Hsien Loong, said in a speech today in Singapore. ...

All sophisticated Singaporeans are invited to invest in Temasek to take advantage of the expertise it has accummulated over the years. Temasek has a scintillating record of, if I remember correctly, registering 8% or 15% growth over the last couple of decades.

And Singaporeans should feel comforted that family jewels will not be sold. DBS, SIA, NOL, Singapore Land etc are safe for now. Unfortunately the power stations were not managed by Temasek. Or else they would not be sold. Was Raffles owned by Temasek before, and was it a family jewel, or was it a national heritage?

Let's make an effort to keep some of our inheritance and not to sell everything for a little short term monetary profit. Let's not sell Alaska!
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what i posted is just my personal view. feel free to disagree.

[redbean]

New chief at SGX/Building castle on shifting sands

Magnus Bocker has been recruited from New York, the finest financial centre of the new world. He was the President of Nasdaq OMX. I am not going to belabour the foreign talent or lack of local talent debate. I am looking at this appointment and what direction is the SGX heading?

Having a foreign head with a wealth of experience in M & A of stock exchanges, like Chip Goodyears experience in commodities, can we expect that SGX will be heading in this direction, more mergers with other exchanges? The concept is brilliant, as brilliant as the acquisition of huge international banks. The disastrous failure of the latter was due primarily to bad timing as well as buying rotten apples without knowing it. We do not know what we are in for.

In the case of growing SGX into an international financial centre in the league of NY, London or Tokyo, my fear is that we are taking too big a bite that we could not swallow. The way the current stock market is running is a case in point. Without a critical mass, a big and sustainable local fund, and relying on an over representation of foreign funds, we are completely at the mercy of these funds. When they are in, we all laugh to the banks. When they decide to pull out, we will be caught high and dry. There is no escape, and many local investors, no matter how big, will be hanged by the cleaners. Their investments can be totally wiped out. This has been our experience. Are we blind to it and still think that this is the way to go? Think big but not too big.

Or should we take a step back and ask ourselves whether we should know our strength and weaknesses and play at a level that we can manage and control with lesser risk? Look at our football league. This is what we are and where we will be. Don't deceive ourselves to think otherwise unless we are prepared to throw our money away.

The international funds are rich and have plenty of money, but they are very mobile and not only that they will move their funds at will to where the opportunities are, they will exploit the weaknesses of the local market and investors and clean everyone out if they can.

Do not play with danger that we cannot control. The minibond saga, the failed investments in foreign banks and in anything foreign, the Scam chips, Malaysian chips, are painful lessons that we must learn from. We are not smarter than them. If we go this way, the biggest disaster that will come our way will be the collapse of the stock market.
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what i posted is just my personal view. feel free to disagree.

[redbean]

Bravo, Great Eastern

If we want to know what is being responsible and trustworthy, look no further. The name is Great Eastern. As a follow up to the Lehman minibonds and Pinnacle notes debacle, Great Eastern has voluntary taken the step to payback every cent its clients paid for a similar product. This is quite embarrassing to the other renowned and reputable organisations that were involved in the fiasco and refused to compensate fully or compensating a pittance.

The whole episode and the pathetic handling of the cases with consumers having to fight tooth and nail to claim back their losses said that there is an urgent need for a truly independent body to protect consumer interest. Unfortunately, with the overlapping of roles and interests, and personalities involved, such an organisation is practically impossible to find, not that it cannot be formed, but there is no political interest to have one. The web of being connected is amazing in this little dot.

The minibond saga is like all the organisations are banded together on one side and the consumers, the little people, on one little miserable corner with a gungho maverick in the form of Tan Kin Lian as their defender. it is an ugly sight like in the Miserables.
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what i posted is just my personal view. feel free to disagree.

[redbean]

In Praise of Human Decency

Great Eastern has done a coup of sort to offer a big payout when it does not need to. In fact the precedent has been set for it to play by the market practice and save a lot of money, except for the pain and loss the investors will continue to bear.

One question is whether Great Eastern has crossed the line to the extent of undermining the correct business practice and the rule of law here that we are so proud of, and chose to invest in a bit of morality, ethics and human decency, which are only good for the souls but not for the bottom line. It was a rare moment indeed in a country that crows about making money at all cost, where scoundrels are praised and held in high esteem, and not how the money was made, where making money is the end all, with no qualms about human decency.

Investors have been complaining that they were questioned by high and mighty officers of financial institutions demanding only to know if they understood English, and if they had signed on the documents. If either was a yes, no further explanation was needed, and out of the door they went, with minimal or no compensation. Legally right, legally binding but morally shameful.

Technically and legally, the financial institutions are right by applying the rule of law. That could be the reason why they were so arrogant that they were doing the right thing. It's all legal. The investors understood and signed the documents. These were enough not to compensate them fully or at all. Caveat emptor man! Just as much we need to protect the investors, the financial institutions also need to be protected under the rule of law.

So which should overrule the other, the rule of law or morals and ethics? I think when in court the rule of law will be upheld and not any wishy washy stuff like morality, ethics or empathy. We cannot undermine our system of correct business practice, our rule of law, and compromise on such rulings. The peddlers of snake oil also need to be protected under the rule of law.

My view is that Great Eastern must have come to the conclusion that the product must be flawed and morally not right to make this kind of money from the their customers. They have set aside all legal and technical arguments in their favour and chose to make a human decision to return the money to their clients. The decision of Great Eastern speaks a lot about the quality of their leadership. Something we find very lacking in this materialistic world and something we only heard in motherhood statements but not in practice.
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what i posted is just my personal view. feel free to disagree.

[redbean]

GE did it for its own good?

This is another angle that some people viewed the generosity of the Great Eastern offer. And some of its competitors also quickly jumped in to join the chorus. Indeed GE will gain some PR mileage in this initiative, and sure its customers and the general public will see GE in a different light, definitely more favourable than the mechanical FIs.

After the dust has settled, after all the evasions, dodgings and excuses, people are still going to see GE as a more reliable, trustworthy, dependable and customer friendly organisation instead of an aloof, legalistic, calculative and you die your problem organisation.

Then one may also want to ask, why didn't the rest of the FIs also think like GE, pay out and make their customers happy, do a one time PR exercise, absorb the losses, which is really peanuts, and save some of the uncles and aunties and their nest eggs? Is this not a worthy cause, a decision that is human, decent and being seen as a caring organisation to do business with? Or maybe these FIs are so entrenched in their position as market leaders that there is no need to spend on goodwills or to cultivate trustworthiness from its customers, that the customers will surely go back to them for more business. No, no, this is not the proper way to do business. It will undermine our business integrity. We need to protect the snake oil sellers so that they will continue to do their business here. it will encourage more snake oil sellers to relocate here, a perfect place to sell snake oil.

I am very sure that all those badly hit by the fiasco and badly treated by the FIs will swear never to do business with them anymore. Say whatever you like, GE has done a very human and decent thing, to benefit itself and also the customers. We need more financial institutions that are run in a more humanly ways, where the interest of the customers comes first.
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what i posted is just my personal view. feel free to disagree.

[redbean]

Nasdaq and BATs to stop flashing orders

'New York: The Nasdaq stock market and BATs Exchange will "voluntarily" stop offering flash orders, a controversial service that gives certain firms an advance look at market bound trading orders....' This is the first para of a REUTERS/Bloomberg report in the ST today. How could any responsible exchange allow this to be put in practice in the first place? To let it go and then to put a stop to it after being investigated is unacceptable. How many of such unfair practices have been allowed into the system?

The US watchdog is still reviewing all the 'illegal' and unfair practices and will be putting a stop to them. Top on the list is 'high frequency trading' which gives the big boys an unfair advantage over the small investors. Are such practices criminal? Shouldn't someone be held accountable for allowing them to be in practice?

Do we have such unfair practices in our stock exchange, and if there are, are we going to keep quiet about it because we don't have a powerful watchdog like the Americans to bring justice and fair play to the small boys and continue to let the sheep stumble blindly to the slaughter house? I hope, really hope, that we are clean and no unfair practices were allowed into our system. I can only hope, but I have this nagging suspicion....
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what i posted is just my personal view. feel free to disagree.

[redbean]

The NDP was a security nightmare

I was there and experienced the crowd, 30 to 40 people deep, some areas more, all along the Esplanade from the floating platform to Collyer Quay, including the whole stretch of Benjamin Sheares Bridge. And the area in front of Asian Civilisation was also packed with families and merrymakers out for a good time, or just to soak in the atmosphere.

It was a great feeling to see so many happy people enjoying themselves in comfort and with peace of mind. On the other hand, it was frightening should a bomb or two exploded in their midst. The carnage would be huge and ugly. Pray that it would never happen in such an event or anywhere here in paradise.

The security people must have done a great job, and at the same time keeping their fingers crossed that thing would turn out alright, that everyone, adult and child, could go home contented, after an evening outings.

But no matter how good the security people are, there are going to be some misfits, misled, misinformed and stupid people among and around us that will do the unspeakable and cause injury, pain and anguish to the innocents. How could we, as a people, stay together as one harmonious family, and prevent those who would want to do harm our friends and families to give up their evil and wicked designs?

Only the people acting as one can avoid such a painful happening, only when the people are prepared to stand up and tell on those who want to do us harm, to turn them in instead of harbouring them. Without the cooperation and involvement of the people, the ordinary citizens, the evil ones will have found friends to hide and conceal them, to swim among them and waiting to strike at the next opportunity.

We cannot afford to alienate our people and push them to the other side. We need to really be an inclusive country and count on every citizen as a member of a bigger family, to live and play and enjoy a peaceful lifestyle, free from dangers and harm.

300 to 400 thousand people were out there enjoying themselves and without a care about their own safety. We have taken these for granted. It is progress in a way. A kind of achievements. But we cannot depend on being lucky all the time.
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what i posted is just my personal view. feel free to disagree.

[redbean]

Making money above ethical considerations

We need ethical leadership. We need ethical management. We need ethical business practices. Making money at all cost, with no regards to ethics will make us look no different from the loan sharks, the pimps, the gambling den operators or prostitutes.

The fact that I have to post this means that unethical leadership, management and business practices are prevalent in our system. The minibond fiasco and other unfair practices in the financial system, the fraudulent practices and corruption in public and charitable organizations, are only the tip of the iceberg. Everyone knows but no one is talking. Anyone who dares claim that he does not know is either pretending or lying.

Do we have people with the guts to stamp out such violations of ethics and human decency in our organisations ? There are some individuals who are in very privileged positions to do so, to stand up against this degeneration in ethical standards in our system. Sadly, they are not doing anything, probably enjoying the ride.

Has anyone learn anything from the recent fiascos and big sums of money lost, with many people at the brink of suicide for losing their life savings, for blindly following the American schemes and scams engineered by the Ivy League graduates? They are no better than the scams of loan sharks.

When will we start to think, to question how we make money, whether the business model is ethical and fair to customers, to employees and to associates and shareholders? Or shall we just exploit the weak and the small, grab their money and run without feeling any guilt?

While Hsien Loong would have his plate full with many hot issues in his National Day speech, I hope he will touch on the subject of ethics and moral responsibility in corporate practices, including ministries and govt linked organisations. We need moral leadership to bring back ethical conducts and human decency in the pursuit of profits and doing businesses. And actions are needed, not just motherhood statements.
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what i posted is just my personal view. feel free to disagree.

[redbean]

National Day Rally 2009

The most impressive part of the rally must be the last video clip on the future Marina Bay area. It is a future worth looking forward to. With its completion, we will really transform into another level of economic progress. During the National Day Parade I was staring at the diminutive Asia Insurance Building, once upon a time the tallest building in the island. Today it is dwarfed by its undescribed neighbours, everyone towering above it by twice its height. And the new Marina Bay area is another leap ahead from the present waterfront at Raffles Place and Shenton Way.

I could imagine myself strolling along the Sands IR and enjoying the great sights and the richness of the surrounding. Then I wonder if I can afford the luxury within. Or maybe I shall join Wally and pitch tent at Changi Beach where the air is free, the stars and the views are free. Easier on the pocket.

Our infrastructure will be first class. The several MRT lines that will complete the transport grid will make moving around so convenient, if one can afford it. Come to think of it, travelling to Changi to pitch tent by MRT is not going to be cheap.

What is needed but missing in the rally speech is how to upgrade the pay check of the average Singaporeans. Can the pay check be bigger to meet the higher cost that is expected in a first class city living? Or shall the people be told to spend within their means, and join Wally?

I have a better idea. I will turn myself into a professional gambler to qualify for a VIP card, free room and services and free food. I don't have to step out of the Marina Bay area anymore. Just live in the IR, for free. With my miserable income which I can confidently said is at least 3 or 4 times what Wally is getting, or more if he is a pensioner, I still think I will not be able to afford that kind of luxury.

Now, for all the pensioners and would be pensioners, unless they have a couple of millions in their savings to last 20 or 30 years, they better find a job that will keep them employed till they are 70 or 80. Retirement or unemployment is no longer an option, but for the yodas. Yes, Hsien Loong did show a pic of Yoda in his presentation.
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what i posted is just my personal view. feel free to disagree.

[redbean]

The remarkable Garden of Eden

What are the great things in the Garden of Eden. One thing for sure, man was innocent, so innocent that he went about naked without knowing it, thus knowing no shame. And his job was to tend the garden dutifully, knowing no right and no wrong. In other words man shall be unthinking. And he must be kept that way, for he was forbidden to know, not allowed to eat from the Tree of Knowledge. God did not want man to know too much, not to be as clever as him.

There was also the Tree of Life, and man must not eat from it to live forever, like God. The line between man and God is very clear.

The essence of the Garden of Eden is that man shall live there happily doing his part, tending the orchard. It was a life of blissful ignorance, and be like a worker. Thinking is not needed, everything will be taken care of. Leave the thinking to God. And God has all things planned, with all his wise schemes.

And when man tries to be too smart, to be like God, he shall be banished from the Garden forever. Just follow orders and man will be ok. The Garden shall be guarded by a cherubim and a flaming sword to keep those banished from returning.

How many of you would like to live a life of contentment in the Garden of Eden, full of ignorant bliss and no worries? And mind you, there is a paternalistic God looking after all your needs.

Sorry Tommy. We are no Venice or Geneva. We are Eden.
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what i posted is just my personal view. feel free to disagree.

[redbean]

Landslide or freak election, Army will not move in

Catherine Lim asked LKY yesterday if he would send in the army should there be a freak election. And the answer is no. So opposition parties can feel safer now, that the army would not do the unthinkable, or no one would do the unthinkable.

LKY's reassurance was based on the serious thought that this govt had put in to design a near perfect system with the President as the last man to protect the money in the reserve. The President will be there to block any attempt to spend the reserve, as if this is the only threat to the nation should an opposition party comes to power.

The underlying assumption is that the President is infallible, a man of unquestionable integrity and will not change side and join the new govt to loot the country's coffer. I am not referring to the incumbent President. There are many Presidents that will come our way.

Should Singaporeans sleep well, that this assumption is good enough to save the country when that day comes? If Presidents are immortals or demigods, I think everything will be fine. The only problem is that scoundrels can come and pass themselves off as saints.

Maybe sending in the army is a more pragmatic option.
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what i posted is just my personal view. feel free to disagree.