Mr. Tan,
Many of the investors here bought the the Mini Bonds before the sub-prime crisis surfaced in the 2H of 2007. At that time, the bonds didn't look high risk, did it?
Given its rating at that time, people knew there was a small chance the issuer would default. Even banks and other companies could fail at any time--there is a small chance. But in good times, people were willing to take the risk.
There are many banks and insurance companies currently having the same rating as Lehman had before it failed. Would you call them "high risk" too?
REPLY
You appear to be speaking for the financial institution that sold the products.
The credit linked securities are high risk. It is not just the risk of Lehman Brothers. The risk is muliplied at least 10 times due to the way that the product is structured. Even in good times, this product should never be approved and should never be sold.
Read this explanation:
http://tankinlian.blogspot.com/2008/10/possibel-wrong-doings-in-structured.html
I have written about it more one year ago, when times are good, to ask investors to avoid this type of product. (At that time, I was not aware about the extent of the risk - due to its complicated structure and lack of tranparency. I am now horrified to learn about the extent of the risk.
Sunday, October 12, 2008
Low cost investment funds
Many retirees lost their life time savings through bad investment products sold by the trusted financial institutions. These institutions sold products that earned a high profit margin, but were highly risky to the retirees.
There is a need for a new institution, similar to the Central Provident Fund, to serve our retirees. This institution should operate as follows:
1. Be non-profit driven
2. Offer a few large, well diversified funds of Government bonds, corporate bonds, equities and property REITS.
3. The funds should have low fees, just sufficient to cover the operating expenses
4. The operating expenses should be kept low through streamlined, efficient systems
5. No commission should be paid for the marketing of these funds.
This is similar to the concept of the "private pension plans" that was considered by the Central Provident Fund a few years ago, but was shelved. It is time to revive this plan and offer it to both existing CPF members and also to retirees.
It is also desirable for the fund to enjoy some tax benefits, so as to encourage people to invest their savings in these funds.
There is a need for a new institution, similar to the Central Provident Fund, to serve our retirees. This institution should operate as follows:
1. Be non-profit driven
2. Offer a few large, well diversified funds of Government bonds, corporate bonds, equities and property REITS.
3. The funds should have low fees, just sufficient to cover the operating expenses
4. The operating expenses should be kept low through streamlined, efficient systems
5. No commission should be paid for the marketing of these funds.
This is similar to the concept of the "private pension plans" that was considered by the Central Provident Fund a few years ago, but was shelved. It is time to revive this plan and offer it to both existing CPF members and also to retirees.
It is also desirable for the fund to enjoy some tax benefits, so as to encourage people to invest their savings in these funds.
Elected President of Singapore
Dear Mr. Tan,
Several people have called you to stand for elected President of Singapore. The country needs a person of integrity and courage to speak for the ordinary people and act as a check and balance against the current Government. You can play this role effectively and will get the support of the people. Will you consider?
Several people have called you to stand for elected President of Singapore. The country needs a person of integrity and courage to speak for the ordinary people and act as a check and balance against the current Government. You can play this role effectively and will get the support of the people. Will you consider?
Hit by Forex Losses
Are you hit for forex losses?
Do you wish to meet other investors in the same situation?
http://www.petitiononline.com/PCFXT1/petition.html
Do you wish to meet other investors in the same situation?
http://www.petitiononline.com/PCFXT1/petition.html
Dual Currency Deposit (DCD)
From a journalist:
In Europe the DCD (dual currency deposit) product is generally only marketed to High-net-worth individuals through private banks and is rarely seen in any retail networks, probably because many retail investors in Europe don't speculate in currencies. But in Asia the DCD is a very popular instrument among retail investors.
The product is relatively simple but, as is emerging now, dangerous too. There is no protection on the product and when steep currency movements occur the deposit can be hit badly.
I'm looking into number of products that are denominated in either SG$ or HK$ against the Aus$. About a month ago a lot of investors got burned, and i believe the same has happened over the past week. I will probably also incorporate FX accumulator and decumulator products in the story as there has been some movement there too.
Action: If you have invested in these products and had suffered large losses, and wish to shrae your story (maybe not using your real name), you can send your story to kinlian@gmail.com
In Europe the DCD (dual currency deposit) product is generally only marketed to High-net-worth individuals through private banks and is rarely seen in any retail networks, probably because many retail investors in Europe don't speculate in currencies. But in Asia the DCD is a very popular instrument among retail investors.
The product is relatively simple but, as is emerging now, dangerous too. There is no protection on the product and when steep currency movements occur the deposit can be hit badly.
I'm looking into number of products that are denominated in either SG$ or HK$ against the Aus$. About a month ago a lot of investors got burned, and i believe the same has happened over the past week. I will probably also incorporate FX accumulator and decumulator products in the story as there has been some movement there too.
Action: If you have invested in these products and had suffered large losses, and wish to shrae your story (maybe not using your real name), you can send your story to kinlian@gmail.com
Weekly Speeches at Speaker's Corner
I have registered to speak at Speaker's Corner, Hong Lim Green as follows:
Date: Sat 25 Oct, 5 to 7 pm
Date: Sat 1 Nov, 5 to 7 pm
Date: Sat 8 Nov (cancelled)
Date: Sat 15 Nov 5 to 7 pm
My speech will be short, for about 10 mins.
After hearing my speech, the investors can gather in groups (according to distributor, product or postal district) to exchange views and discuss collective action.
All the best.
Date: Sat 25 Oct, 5 to 7 pm
Date: Sat 1 Nov, 5 to 7 pm
Date: Sat 8 Nov (cancelled)
Date: Sat 15 Nov 5 to 7 pm
My speech will be short, for about 10 mins.
After hearing my speech, the investors can gather in groups (according to distributor, product or postal district) to exchange views and discuss collective action.
All the best.
Tan Kin Lian's speech at Speaker's Corner
Mr. Tan,
Here is the YouTube Video Clip link of your speech at Hong Lim. I broke it into 2 parts because unedited file too large:
http://www.youtube.com/watch?v=rQ3xTRnd8J8 (PART 1)
http://www.youtube.com/watch?v=WCfpgMinQvI (PART 2)
Thomas Choy
Here is the YouTube Video Clip link of your speech at Hong Lim. I broke it into 2 parts because unedited file too large:
http://www.youtube.com/watch?v=rQ3xTRnd8J8 (PART 1)
http://www.youtube.com/watch?v=WCfpgMinQvI (PART 2)
Thomas Choy
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