Zerohedge Article about Singapore

[Runifyouhaveto]

warren may b proven to be the next biggest idiot. who supports gold? peter schiff, jim rogers, marc faber, etc.

Mr buffett is no idiot. He is a respectable philanthropist.

A RUN's friend used to teach at Mr roger's children's school. He told me vomit blood; rogers gave teachers a financial talk and this is his track record in the last 7-10 years.

- He wrote a book A bull in China
since the book was published, china's SSE never recovered till pre-2008 olympics level
- He told them farmers will drive Lamborghini soon.
Soft commodities crashed after that, those teachers who bought Olam and Noble locally lost more than 50%.
- He said, gold will super rally because of fiat-printing.
After that, Gold crashed 20-25% from 1600-1800 level.


Actually, the three famous time-tested gurus should be Mr buffett, Mr Li and Mr Soros, just that three of them adopted different styles.

 

[laksaboy]

To put it bluntly, there isn't one economic theory that can single-handedly explain Singapore's success; its economy combines extreme features of capitalism and socialism. All theories are partial; reality is complex.

What's so hard to understand? Singapore is a corporate fascist state.

Also, you would dream to have a 'socialist' state healthcare in Singapore. No 'you die is your business' stuff in Scandinavian countries.

 

[palden]

Sinkapoo is a controlled economy, not free liberal economy where Govt is laid back. Papz Govt is like a sotong, not blur but extremely smart, with tentacles in every business in sinkapoo. The papz have not gone into the funeral business yet, only a matter of time.

NTUC casket considered?

 

[Runifyouhaveto]

- Economics is politics
Economic arguments are often justification for what politicians want to do anyway

London School of Economics and Political Science
because
Economics = Political Science

 

[syed putra]

Singapore exports fail to gain boost from key markets
Non-oil exports plunge 7.5pc last month, despite pick-up in US and European demand
http://www.scmp.com/business/economy/article/1535190/singapore-exports-fail-gain-boost-key-markets

We can always build another casino :p

Everybody building casinos nowadays.There is a new one in yangon I heard, by genting. Another few planned in australia, japan. and probably one more in genting owned by berjaya. it was supposed to be built in JB, but I think changed sensitivities.

Anyway, singapore's location made it an ideal place for trading, oil processing,manufacturing (low logistic costs due to location and infrastructure) and availability of labour, especially from neighbouring countries.

 

[krafty]

common sense and also including logical thinking of why things happen.

Five Things They Don’t Tell You About Economics
by Ha‑Joon Chang
http://thelittlebluebook.co.uk

- 95% of economics is common sense
You don’t need a degree to understand it

-Economics is not a science
Despite what the experts want you to believe, there is more than one way of ‘doing’ economics

- Economics is politics
Economic arguments are often justification for what politicians want to do anyway

- Never trust an economist
It is one thing not to foresee the financial crisis; it’s another not to have changed anything since

- We have to reclaim economics for the people
It’s too important to be left to the experts alone

 

[Runifyouhaveto]

"We Are In Uncharted Waters" Singapore Central Bank Warns Of "Uneasy Calm" - 25 Jun 2014
http://www.zerohedge.com/news/2014-...ters-singapore-central-bank-warns-uneasy-calm
And he’s telling banks to get ready for something to happen.

 

[Runifyouhaveto]

Take opportunity on the current calm water and follow the smart money; try to borrow as much as possible at fixed rates.

This is why companies are busy issuing bonds, including govt.

 

[Runifyouhaveto]

Why Singapore is a poor role model for Hong Kong
http://www.scmp.com/comment/insight-opinion/article/1541760/singapore-poor-role-model-hong-kong

- These opponents of public housing in Hong Kong prefer to forget that 80 per cent of Singapore's housing is controlled by the government's Housing Development Board. Though owners can sell, the board has many restrictions which make a nonsense of real private ownership.

- Singapore's performance would probably be even worse if comparative statistics reflected its huge reliance on temporary, low-paid workers. It has over 200,000 foreign domestic servants - more than Hong Kong does relative to population size. In a population of 5.4 million, only 3.3 million are citizens. The number of foreigners on various types of employment pass now stands at 1.3 million. Some 336,000 of these are skilled people who have helped raise productivity. But 985,000, or nearly 30 per cent of the workforce, are low-skill employees with work permits.

- Hong Kong does not share Singapore's reliance on foreign capital and labour. Despite its huge foreign exchange reserves, Singapore's gross national income is less than its gross domestic product. Hong Kong is the opposite.

 

[krafty]

bro run, why is this so? won't they adjust the interest rate higher?

Take opportunity on the current calm water and follow the smart money; try to borrow as much as possible at fixed rates.

This is why companies are busy issuing bonds, including govt.

 

[krafty]

Debts everywhere: Loan-to-deposit ratio hits 16-year high in May

https://sg.finance.yahoo.com/news/debts-everywhere-loan-deposit-ratio-081700764.html


Domestic deposits continue their 2-month decline.
Singapore's companies are borrowing more and saving less, while domestic banks are struggling to retain and attract deposits. Data released today by the Monetary Authority of Singapore revealed that domestic banking unit (DBU) deposits were down 0.3% month on month in May, while DBU loans climbed by 1.1%.
A report by Barclays noted that system loan-to-deposit ratio (LDR) jumped to 110.6% in May, from 109.4% in April, another record high since 1998.
"The May monetary statistics from the Monetary Authority of Singapore (MAS) show that deposits contracted for the second consecutive month. DBU deposit base has experienced no growth while DBU loans rose 13% y/y. The system loan-to-deposit ratio (LDR) jumped to 110.6% in May, from 109.4% in April, another record high since 1998. Deposit competition will continue intensify, in our view," noted the report.
Here’s more from the report:
Growth in May was mainly driven by DBU corporate loans (+1.5% m/m) in general commerce and business (+2.7% m/m), financial institutions (2.3% m/m), and manufacturing loans (+2.2% m/m). Growth in non-housing retail loans slowed to 0.2% m/m.
System deposits contracted for the second consecutive month, down by 0.3% m/m in May (Apr: -0.8% m/m), mainly led by a 0.8% m/m fall in DBU deposits. DBU deposit base has fallen by 0.7% y/y and 0.2% ytd. ACU deposits increased 0.5% m/m in US$ terms and 2.6% ytd.
As loans grew and deposits contracted, system LDR climbed to 110.6% in May (April: 109.4%), another record high since 1998. We believe funding costs will rise as banks compete on pricing to retain and attract deposits.
Moreover, with the implementation of the Basel III liquidity rules (including the Liquidity Coverage Ratio and the Net Stable Funding Ratio), we believe banks will increasingly focus on deposit funding both in SG$ and in foreign currency. The three local banks have said that currently they are comfortably placed to meet the rules.
DBS (OW) remains our top pick among the Singapore banks given its strong deposit franchise and positive leverage to rising rates, followed by UOB (OW) which has strong fee income generation capability and a solid risk management track record.
We rate OCBC as UW as we believe it will have to raise capital to fund the acquisition of Wing Hang Bank, which remains the major overhang.

 

[Runifyouhaveto]

bro run, why is this so? won't they adjust the interest rate higher?

Dear Leader,

interest rates/yield has two factors, dictated by central bank (factor 1) + market forces (factor 2)

Factor 1:
US has already openly hinted that rates will go up in mid-2015. Even boss sam's NZ has hiked rates recently.
This means that rates are currently low now and will increase in 2015

Factor 2:
something is gonna happen, that's why there is a mad rush for bonds now.
Demand up = Bond Price up = yield down

The current pressure from Factor 2 (yield down) is higher Factor 1 (rate going up, but not up yet) = cheap to borrow money now and definitely more expensive 12 months later.

This is why companies and govt are busy issuing bonds (borrow money) because bonds allow them to fix the rate till maturity/redemption.



my 2 cents

 

[krafty]

roger out...thanks bro...

Dear Leader,

interest rates/yield has two factors, dictated by central bank (factor 1) + market forces (factor 2)

Factor 1:
US has already openly hinted that rates will go up in mid-2015. Even boss sam's NZ has hiked rates recently.
This means that rates are currently low now and will increase in 2015

Factor 2:
something is gonna happen, that's why there is a mad rush for bonds now.
Demand up = Bond Price up = yield down

The current pressure from Factor 2 (yield down) is higher Factor 1 (rate going up, but not up yet) = cheap to borrow money now and definitely more expensive 12 months later.

This is why companies and govt are busy issuing bonds (borrow money) because bonds allows them to fixed the rate till maturity/redemption.



my 2 cents

 

[Runifyouhaveto]

roger out...thanks bro...

Dear Leader, let me know when you have properties that are more than 70% paid-up (not 70% loan-outstanding).

 

[krafty]

me just an average guy, dun have any spare property, still servicing, thought of selling my HDB and run road...but now..current market...better leave it as it is...:o

Dear Leader, let me know when you have properties that are more than 70% paid-up (not 70% loan-outstanding).

 

[Runifyouhaveto]

me just an average guy, dun have any spare property, still servicing, thought of selling my HDB and run road...but now..current market...better leave it as it is...:o

RUN to where? mi want to send my children overseas too. You got kids?

 

[krafty]

no kids...divorced, humping my way around...you are a good father who think for your children. i have ever mentioned in a thread before that when i was still in school, i see my friends being sent to australia and canada, i wonder why. as i grew up, i understand that sinkieland has no future for your grandchildren generation.

RUN to where? mi want to send my children overseas too. You got kids?

 

[Runifyouhaveto]

no kids...divorced, humping my way around...you are a good father who think for your children. i have ever mentioned in a thread before that when i was still in school, i see my freinds being sent to australia and canada, i wonder why. as i grew up, i understand that sinkieland has no future for your grandchildren generation.

i hear you.

Ok dear leader, you should leave. Sell your HDB, buy 3 apartments in Adelaide university town, take some small AUD-loans to reduce your taxes. Stay in one, and rent the other 2 out. So nice, everyday see young people. If the uni students default on tenancy, you can still bonk them.

if you don't like angmoh place, rent out your HDB in sg, and buy a small nice condo in malaysia (not johor) and buy at least 500K of ringgit bonds from good banks like public bank or CIMB. With sg rental income + malaysian bond income, you don't have to work anymore + live until song song in Malaysia.

my kaypo 1.9 cents

 

[krafty]

bro, you see me very up, even if i cash out, little cash left for me in cpf.

i hear you.

Ok dear leader, you should leave. Sell your HDB, buy 3 apartments in Adelaide university town, take some small AUD-loans to reduce your taxes. Stay in one, and rent the other 2 out. So nice, everyday see young people. If the uni students default on tenants, you can still bonk them.

if you don't like angmoh place, rent out your HDB in sg, and buy a small nice condo in malaysia (not johor) and buy at least 500K of ringgit bonds from good banks like public bank or CIMB. With sg rental income + malaysian bond income, you don't have to work anymore + live until song song in Malaysia.

my kaypo 1.9 cents

 

[Runifyouhaveto]

bro, you see me very up, even if i cash out, little cash left for me in cpf.

slowly bro