Sunday, September 20, 2009
Bankers returning to bad old ways
It is quite sad that bankers are returning to the bad old ways - high pay and bonuses, when many people have lost their jobs and are struggling. I hope that the government leaders will be able to put things right. Read this article by Paul Krugman.
Views on Financial Planning book
Mr Tan
Thank you for all the efforts you have put in. As a layman,we sure to learn more about financial planning and investment through your books. All contents should be put in simple form to make a layman like me to keep on reading your books. I looking forward for your oter incompleted chapters. After reading your view in CPF Life, I now more confident to help my parents to take up this plan.
Thank you for all the efforts you have put in. As a layman,we sure to learn more about financial planning and investment through your books. All contents should be put in simple form to make a layman like me to keep on reading your books. I looking forward for your oter incompleted chapters. After reading your view in CPF Life, I now more confident to help my parents to take up this plan.
NOTE
About half the people like the simple format of the book. The other half likes it to be more substantial and in depth. I will be changing the content to be "more in depth". The next version will be quite different from draft 4.
Is the automated vehicle safe?
It should be quite safe. Read my views here. I am visiting France to see the Cycab in operation.
Shape Quiz
What is the origin of the shape quiz? How is it suitable for children, adults and seniors? Find out here: http://www.tankinlian.com/puzzles/shapes.html
Clubs for the jobless in America
I admire the ingenuity of the Americans in creating products to meet the needs of the day. Read about the job clubs here.
Learning from facts, not beliefs
The Straits Times has an article by our Finance Minister Tharman entitled "Learning from facts, not beliefs".
The Minster said that the global crisis is caused by "failure of regulations premised by beliefs that were not supported by facts", in particular the "faith in self-correcting markets". He argued that the government has a duty to intervene to stop asset bubbles from growing to an unsupportable level.
The Minster said that the global crisis is caused by "failure of regulations premised by beliefs that were not supported by facts", in particular the "faith in self-correcting markets". He argued that the government has a duty to intervene to stop asset bubbles from growing to an unsupportable level.
I agree.
There is another big market failure that has not been recognised in the paper - the failure to provide transparent and fair information to consumers. The sellers have more information than the buyers and can mislead the buyers into paying an inflated price that is far more than what the product is worth.
This is the modus operandi of land banking and structured products (e.g. capital guaranteed, linked products, dual currency products, high cost life insurance products) that were created by financial experts for sale on unfair terms to consumers (but generate high profit margin to the issuer). The sale of new property launches at unjustified high prices is also premised on the insufficient information available to consumers.
It is important that the regulation should also focus on providing transparent and fair information to consumers. FISCA will play a role by creating a white list of financial products.
I have build a website at www.easysearch.sg (Real Estate Data) that makes it easy for consumers to get information on properties. I urge consumers to do your research before jumping into making million dollar purchases that will tie you down for a lifetime.
Tan Kin Lian
There is another big market failure that has not been recognised in the paper - the failure to provide transparent and fair information to consumers. The sellers have more information than the buyers and can mislead the buyers into paying an inflated price that is far more than what the product is worth.
This is the modus operandi of land banking and structured products (e.g. capital guaranteed, linked products, dual currency products, high cost life insurance products) that were created by financial experts for sale on unfair terms to consumers (but generate high profit margin to the issuer). The sale of new property launches at unjustified high prices is also premised on the insufficient information available to consumers.
It is important that the regulation should also focus on providing transparent and fair information to consumers. FISCA will play a role by creating a white list of financial products.
I have build a website at www.easysearch.sg (Real Estate Data) that makes it easy for consumers to get information on properties. I urge consumers to do your research before jumping into making million dollar purchases that will tie you down for a lifetime.
Tan Kin Lian
FISCA - Verification of Financial products
FISCA wish to look for volunteers to help consumers to verify the financial products (including insurance policies) that they have bought.
The consumer will be asked to state what they have been informed about the product and the materials that were provided.
The volunteer (who must have the required certificate in insurance or investments) will check through the materials to explain if the verbal representations correspond with the written materials.
The volunteer will also point out if there are other facts (such as high upfront charges) contained in the materials that were not explained to the consumer.
If there was mis-representation or failure to provide satisfaction explanation by the person who sold the product, the volunteer will help the consumer to write a complaint to the relevant body. The admin fee will be $50.
If you are interested to be a volunteer, please write to kinlian@gmail.com.
The consumer will be asked to state what they have been informed about the product and the materials that were provided.
The volunteer (who must have the required certificate in insurance or investments) will check through the materials to explain if the verbal representations correspond with the written materials.
The volunteer will also point out if there are other facts (such as high upfront charges) contained in the materials that were not explained to the consumer.
If there was mis-representation or failure to provide satisfaction explanation by the person who sold the product, the volunteer will help the consumer to write a complaint to the relevant body. The admin fee will be $50.
If you are interested to be a volunteer, please write to kinlian@gmail.com.
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