Thursday, December 24, 2009
Why roulette is better than land banking
Dear Mr. Tan,
Read this article
http://www.learnmoney.co.uk/advice/advice-87.html
Land Banking Companies
Why the majority of them are (legal) scams
UK land sold by Land Banking firms have about a 1% chance of receiving planning permission over the next 20+ years.
That means you have a 99%+ chance of owning a piece of land that is almost completely worthless.(the land is typically marked up by 1500% when you buy it and resale on the open market without planning permission is almost impossible)
In roulette you have a 2.7% chance of winning if you put all your money on a single roulette number.
You will also find out immediately that you have lost all your money and should learn very quickly not to gamble. If you win Roulette will also give 35 times payout not the two to three times offered by the land banking companies.
If I were to sell a single roulette number with a 3 to 1 payout for winning as an amazing investment opportunity I am sure I would be shut down and probably put in Jail.
Can anyone explain why are Land Banking companies not subject to the same scrutiny ?
Read this article
http://www.learnmoney.co.uk/advice/advice-87.html
Land Banking Companies
Why the majority of them are (legal) scams
UK land sold by Land Banking firms have about a 1% chance of receiving planning permission over the next 20+ years.
That means you have a 99%+ chance of owning a piece of land that is almost completely worthless.(the land is typically marked up by 1500% when you buy it and resale on the open market without planning permission is almost impossible)
In roulette you have a 2.7% chance of winning if you put all your money on a single roulette number.
You will also find out immediately that you have lost all your money and should learn very quickly not to gamble. If you win Roulette will also give 35 times payout not the two to three times offered by the land banking companies.
If I were to sell a single roulette number with a 3 to 1 payout for winning as an amazing investment opportunity I am sure I would be shut down and probably put in Jail.
Can anyone explain why are Land Banking companies not subject to the same scrutiny ?
SCMP: Investors offered 80 pct payout for Lehman products
Many investors in Singapore would wish that they have the same kind of assistance that is offered in Hong Kong. Read this report.
Repaying bailout funds
During the global financial crisis, many banks were on the verge of collapse. The collapse of one big bank could trigger the collapse of other banks, risking the stability of the entire global financial system. The US Government stepped in to provide billions of taxpayer funds under the TARP (troubled assets relief program) program to stabilize and restore confidence in the system.
The taxpayers were shocked that these bailed out banks continue to pay huge bonuses to their top executives. The Government decided to introduce caps on the salaries and bonuses that could be earned by these executives.
Many bailed-out banks have decided to return the TARP money, so that they can continue to be relieved from the caps on these huge bonuses. They are able to get money from their shareholders, as the global financial system has now been restored. They can go back to the "good old days".
How did the banks make huge profits during these "good old days"? They take big gambles. They bet billions of dollars on financial trading and on creating asset bubbles, through housing, mergers and acquisations, leveraging and financial engineering (also called "innovation").
If they get it right, they make billions of dollars of profit. If they get it wrong, the hold the global financial system to hostage.
The world has to put a stop to these huge gambles. The banks should be banned from these types of gambling. They key role is to do basic banking services, such as collecting money and giving loans to businesses and households. It may be boring, but it is a valuable service that builds real wealth.
As long as the governments condoned and even encouraged such gambling behavior, in the name of creating "financial hubs", the global financial system will continue to be at risk.
Tan Kin Lian
The taxpayers were shocked that these bailed out banks continue to pay huge bonuses to their top executives. The Government decided to introduce caps on the salaries and bonuses that could be earned by these executives.
Many bailed-out banks have decided to return the TARP money, so that they can continue to be relieved from the caps on these huge bonuses. They are able to get money from their shareholders, as the global financial system has now been restored. They can go back to the "good old days".
How did the banks make huge profits during these "good old days"? They take big gambles. They bet billions of dollars on financial trading and on creating asset bubbles, through housing, mergers and acquisations, leveraging and financial engineering (also called "innovation").
If they get it right, they make billions of dollars of profit. If they get it wrong, the hold the global financial system to hostage.
The world has to put a stop to these huge gambles. The banks should be banned from these types of gambling. They key role is to do basic banking services, such as collecting money and giving loans to businesses and households. It may be boring, but it is a valuable service that builds real wealth.
As long as the governments condoned and even encouraged such gambling behavior, in the name of creating "financial hubs", the global financial system will continue to be at risk.
Tan Kin Lian
Goldman Sachs and synthethetic CDO
Here is the reply from Goldman Sachs to the New York Times article on synthetic CDO.
Insuring a home for the right value
Read this report. You need to insure your home for the cost of rebuilding, and not on the current value of the home.
Are Singaporeans less hard working and hard driving?
Here is an interview given by Mr. Lee Kuan Yew to the National Geographic magazine:
http://ngm.nationalgeographic.com/2010/01/singapore/jacobson-text/3
Quote:
Over time, the MM says, Singaporeans have become "less hard-driving and hard-striving." This is why it is a good thing, the MM says, that the nation has welcomed so many Chinese immigrants (25 percent of the population is now foreign-born). He is aware that many Singaporeans are unhappy with the influx of immigrants, especially those educated newcomers prepared to fight for higher paying jobs. But taking a typically Darwinian stance, the MM describes the country's new subjects as "hungry," with parents who "pushed the children very hard." If native Singaporeans are falling behind because "the spurs are not stuck into the hide," that is their problem.
Unquote:
I find this remark to be quite unfair to Singaporeans. Already, they have to study very hard in schools, such that many children do not have time to play and enjoy their childhood. The male citizens have also to serve National Service. I read that many immigrants are not willing to become Singapoore citizens if they are required to serve National Service.
In spite of these efforts, Mr. Lee said that the Singaporeans have become "less hard-driving and hard-striving".
http://ngm.nationalgeographic.com/2010/01/singapore/jacobson-text/3
Quote:
Over time, the MM says, Singaporeans have become "less hard-driving and hard-striving." This is why it is a good thing, the MM says, that the nation has welcomed so many Chinese immigrants (25 percent of the population is now foreign-born). He is aware that many Singaporeans are unhappy with the influx of immigrants, especially those educated newcomers prepared to fight for higher paying jobs. But taking a typically Darwinian stance, the MM describes the country's new subjects as "hungry," with parents who "pushed the children very hard." If native Singaporeans are falling behind because "the spurs are not stuck into the hide," that is their problem.
Unquote:
I find this remark to be quite unfair to Singaporeans. Already, they have to study very hard in schools, such that many children do not have time to play and enjoy their childhood. The male citizens have also to serve National Service. I read that many immigrants are not willing to become Singapoore citizens if they are required to serve National Service.
In spite of these efforts, Mr. Lee said that the Singaporeans have become "less hard-driving and hard-striving".
Confidentiality agreements
We read many inside stories about confidential decisions taken by large corporations which were leaked to the media. These information were leaked out by their employees who were covered by confidentiality agreements. The employees talked to the journalists and asked for their names to be not published.
Many investors in Singapore are required to sign confidentiality agreement by the financial institution and by FIDREC. They dare not even discuss the matter with people that they need to seek advice. I find that these investors are rather naive about their legal rights and how to respond to such legal matters.
Compare their behavior with the American employees who are willing to give information to the media that were supposed to be covered by confidentiality agreements, on the understanding that their names will not be quoted and that the information cannot be traced to the source.
Many investors in Singapore are required to sign confidentiality agreement by the financial institution and by FIDREC. They dare not even discuss the matter with people that they need to seek advice. I find that these investors are rather naive about their legal rights and how to respond to such legal matters.
Compare their behavior with the American employees who are willing to give information to the media that were supposed to be covered by confidentiality agreements, on the understanding that their names will not be quoted and that the information cannot be traced to the source.
Subscribe to:
Posts (Atom)