Singapore Guarantees!!!

[halsey02]

Wonder why the about turn, Thaman still yaya say no need this morning.

Thaman is another puppet on a string, his MASTER'S VOICE is pulling the strings by remote control.

Question?, will the 100% gurantee, squeeze the banks here?. That means they will have to increase their deposits with M.A. Singapore!, and less money to lend, and will it lead to credit squeeze?

Will it become a dog chasing its own tail effect?

 

[theblackhole]

...

Will it become a dog chasing its own tail effect?

how will this affect simple folks like us in the heartlands? thank you.

 

[theblackhole]

Re: Singapore Guarantees!!! MY ASS!!!

I am sorry to tell you that it means NO PROTECTION TO US.

The rather it means that you are liable to protect FOREIGN DEPOSITORS instead!

Because PAP govt use ABSOLUTELY NOTHING BUT OUR $$$$$ TO GUARANTEE anything, that means anything goes wrong, the PAP govt will empty our tax payers dollars to make good the huge foreign deposits.

PAP is only fearing the withdrawal of huge foreign deposits so it is offering OUR PEOPLE's liability to guarantee them. That's all! Nothing for you to be relax and happy about at all! Don't be stupid!...

They offered OUR ASS to foreigners as guarantee!....

Think clearly to understand this properly, how does PAP guarantee Singaporean's deposits? With what? With Malaysians' money to bail us out? With Indonesian's money to bail us out? With PRC's meney to bail us out?

Understand morons?

You're so wise and so sharp. So all our savings shaky like hell lah...So what you propose we morons do? Thank you.

 

[phouse3]

Last week, the PAP announced a S$150 billion deposit guarantee back by our reserves. The President used his 2nd key to unlock our reserves.

It is clear now that the PAP has no intention of using fiscal measures in case of a drawdown. As most people have suspected, a typical taxpayers bailout is politically sensitive. Moreover, fiscal measures like deficits, raising taxes or borrowing will become the babies of the PAP.

Wanting to preserve our credit rating is just an excuse (see point 4. below).

So, reserves have to be earmarked. Current liquid reserves must be set aside or some fixed reserves have to be converted to liquid ones.

A contingent liability is still a liability in every sense of the word. There is no free lunch and costs are involved.

1. Opportunity costs in the form of lower returns;
2. Social costs in the form of Singaporeans waging their nesteggs to guarantee the safety of capital for (foreign) deposit-holders in case a (foreign) bank fails;
3. Market distortion costs - a riskier foreign bank currently paying higher interest rates will attract more deposits when the risk element is levelled *. The guarantee is discriminatory to banks (especially local banks) with better standing; and
4. Credit deterioration costs - a contingent liability will have to be taken into account by any credit rating agency worthy of its salt.


(* Ultimately all banks will pay about the same interest rates during the guarantee period.).

 

[Einfield]

I believe the PAP is for themselves only, the reason our reserves is still round, is because they have absolute control over it.

If not, we will see something like Ah Bian, where state money is transferred offshore into personal accounts.