Lucky Tan and Mini-bonds

Read this article by Lucky Tan.

From 5Cs to 5 Ks

Are Singaporeans still craving for the 5C's : Car, Condo, Credit Card, Club membership and Career?



Looks like Car & Condo will be elusive because of Higher COEs and High Property Prices for now whereas, on the other hand, looks like some are concerned about the 5K's

Kiasu (scared of losing)
Kiasee (scared of dying)
Kiabor (scared of wife)
Kiaboh (scared of having nothing)
Kiachenghu (scared of government)


LN

US Securities Exchange Commission sues Goldman Sachs

The US Securities and Exchange Commission has taken the bold step to sue Goldman Sachs for fraud in connection with the creation of complex financial products that are sold in the market. They involve the packaging of the sub-prime mortgages into collateralized debt obligations and credit default swaps. One argument put forward by the SEC is that Goldman Sachs knew that the sub-prime mortgages were already in trouble at the time that these products were created.

This is only the first step. Many other investment banks were also involved in creating similar products and may face similar actions by the SEC.

Our equivalent of the SEC is the Monetary Authority of Singapore. I hope that our MAS will also see if there is scope for similar actions to be taken in Singapore in respect of the complex products that were sold here. These products, such as the Mini-bonds and Pinnacle Notes, have caused huge losses to the retail investors in Singapore.

Tan Kin Lian

News clippings:
http://dealbook.blogs.nytimes.com/2010/04/16/s-e-c-sues-goldman-over-housing-market-deal/
http://www.reuters.com/article/idUSTRE63F3LM20100416

Reward for finding car key $30

There is a reward. Click here:

Overseas orders for Financial Planning book

I received a few orders from overseas for my book, Practical Guide on Financial Planning. I am not sure if they are from Singaporeans who live or work overseas or from foreigners who like to learn about financial planning for their own environment. A large portion of my book contain financial education that is applicable in other countries as well.

Tan Kin Lian

COE and car prices

I spoke to someone, who is familiar with the motor trade. He made the following points:

a.  The recent change resulted in a drop of 40% in COE allocation. This caused COE prices to shoot up due to the cut and also to increased demand generated by fear of further price increases. It is better to have a more stable market, rather than fluctuating prices to drive consumer behavior.
b.  Taxis are now in the same category as private cars. They should be kept in a spearate category as the owners of taxis are driven by commercial consideration.
c.  There is need to improve the feeder services, so that more people will take the train and buses at the interchanges.
d.  Taxis should be considered as public transport. They are more efficient than cars and do not require parking spaces. The taxi fares should be simplified into a flat rate structure. Taxi drivers should be allowed to own a taxi licence and build a taxi business, rather than be renters of taxis.

I agree with these points and will bring them up at the TV program tonight. I will also raise them in other occasions in my blog.

Tan Kin Lian

Vera has artistic intelligence

I made the shape of a cat using the tangram pieces. I asked my grand-daughter Vera (3 years old) what is the picture. She looked at it for a short time and said "Cat".  Next, I  made the shape of a man sitting down. She said, in a naughty manner "House". Later. She said "Man". My tangram book containing 100 puzzles and solutions, will be available soon and can be bought online.  I will take advanced orders now.

Tan Kin Lian