Like a never ending flu, i caught it again just as it was about to go.
I hoped it wasn't the DIY feng shui tips i picked up online that made me so ill-ish. Wanted to rearrange my furniture to give my room a new look rather than have a 'good' feng shui.. but i guess i just screwed up.
I don't really believe that the arrangement will change anything, and the whole feng shui thing was solely for my own amusement. If anything is worth noting, the direction of my bed was that of when i 1st got arthritis in 1999. Since then, i've changed the arrangement of my bed till now.. maybe it is better to be safe than sorry. I'm going to shift back my bed later le.. lol.
Enough of the economy.. cyclical or systemic. Monetary injections alone is not enough to solve both. However, it beats having no remedies at all. There isn't going to be a 180 overnight change.. and so there is still time to get ready for a new economic landscape a few years down. After solving the liquidity issues, there is still the consumer confidence index.. which isn't as easily moved by billions of injections alone. It really takes time. Just hope and hope that things will eventually turn out fine, and that there is sufficient resources to tide over such times. It's a rare one.. once in a century downturn leh.. where to find?
I hoped i won't be a liability when i start work.. and hopefully i can be of some value-add. Some is perhaps not enough.. must be a lot more. Still pondering over getting ACCA-ed.. but really like not helping a lot wor.. plus, accounting is ever-changing.. so once started, there will be frequent re-training and updating of the accounting standards.. not easy at all. As for jap classes, i won't be doing it for now.. coz i won't be needing it any time soon.
Showing posts with label Finance. Show all posts
Showing posts with label Finance. Show all posts
Wednesday, November 26, 2008
Sunday, November 16, 2008
What a 'Wonderful' World
Was super late for band pract today, coz saw an opportunity to re-park the kuti R1. The R1 was under my stewardship for a week coz sis was overseas. Of coz, i could have driven the kuti R1 to boonlay (and be on time).. but really, it was a bit too small for such a long journey. Also, the last vios incident (check 12/8/06 entry) got me banned from driving.. at least on the then vios. Now the vios was sold.. and in its place, the kuti R1.
And so i took the R1 round the carpark.. and found that it was indeed very light. On the PIE, i think the R1 can fly lor. Really very small.. 3m by 1.5m.. haha.. at least now my parking won't miss. So shifted the R1 to the spot designated by my sis, coz that was supposed to be the 'safe' spot. R1 is 600 cc only.. i think if i put my baobei horn in, already the engine cmi.
Decided to take public transport instead.. and so was super late. Reached at around 10.30am, and the actual practice haven't start.. Today warmed up with the big big note piece - "what a wonderful world". LOL.. how ironic.. it isn't wonderful at all with all the downturn and retrenchment lor.. and also, the 1st read with rather "what a horrific world".. haha.. i guess it's the instrumentation ba.. we really need more parts... if not it's quite empty also. Actually the song was nice.. but i didn't quite like the arrangement.. too many in unison le.. of coz, i think the piece is graded quite easy.. see the size of the notes already can tell le.
What a horrific world.. another round of retrenchment from the FIs, and another round of rally for worthless structured financial products. High notes 5, minibond series 5 and 6, and now pinnacle notes series 9 and 10. When will all these ever end? I have nothing to say liao.. apparently, something is very wrong here, no matter from whose point of view.
On a slightly brighter side, the village got its first xmas card for 2008 wor... and it was addressed to......... pakki! LOL.. and he got his own economic/xmas package in advance too. 3 bags of dog biscuits, 1 bag of yogurt for dogs(wonder what the..), and a tube of toothpaste.. all courtesy of the village chief. In this downturn, i think pakki is the most fortunate de lor.. and i still can't get over the fact that he got xmas card addressed to him.. LOL.
And so i took the R1 round the carpark.. and found that it was indeed very light. On the PIE, i think the R1 can fly lor. Really very small.. 3m by 1.5m.. haha.. at least now my parking won't miss. So shifted the R1 to the spot designated by my sis, coz that was supposed to be the 'safe' spot. R1 is 600 cc only.. i think if i put my baobei horn in, already the engine cmi.
Decided to take public transport instead.. and so was super late. Reached at around 10.30am, and the actual practice haven't start.. Today warmed up with the big big note piece - "what a wonderful world". LOL.. how ironic.. it isn't wonderful at all with all the downturn and retrenchment lor.. and also, the 1st read with rather "what a horrific world".. haha.. i guess it's the instrumentation ba.. we really need more parts... if not it's quite empty also. Actually the song was nice.. but i didn't quite like the arrangement.. too many in unison le.. of coz, i think the piece is graded quite easy.. see the size of the notes already can tell le.
What a horrific world.. another round of retrenchment from the FIs, and another round of rally for worthless structured financial products. High notes 5, minibond series 5 and 6, and now pinnacle notes series 9 and 10. When will all these ever end? I have nothing to say liao.. apparently, something is very wrong here, no matter from whose point of view.
On a slightly brighter side, the village got its first xmas card for 2008 wor... and it was addressed to......... pakki! LOL.. and he got his own economic/xmas package in advance too. 3 bags of dog biscuits, 1 bag of yogurt for dogs(wonder what the..), and a tube of toothpaste.. all courtesy of the village chief. In this downturn, i think pakki is the most fortunate de lor.. and i still can't get over the fact that he got xmas card addressed to him.. LOL.
Thursday, November 13, 2008
Fallout
Nowadays like a lot of rare happenings around sg. Really uniquely sg.
Days ago, one guy attempted to rob one of the local banks.. but his plan was foiled.. coz he never shaved properly. Then today, one worker was killed by the beh hors in the zoo.. wah leh.
Maybe partly due to lehman fallout i think. It was really an oversight from those that was supposed to save it IMO. See what the lehman fallout do to the whole economy and well-being of the society? People got affected by it's ambiguous product, and the FIs suffer from having to assume responsibility due to goodwill, and then the staffs got affected becoz the FI had to cut cost. Now the whole economy is in shambles and it is no wonder that some might do irrational things.
And due to the credit crunch, even the IR also got affected. Too much betting on the IR le.. even before it was opened. Should it fail, it would likely to be another one of those lehman fallout.
Heard from my friends that the retrenchment exercise started.. and now it's only the finance sector.. it is really gloomy lor. Hopefully they will get to keep their jobs.
Days ago, one guy attempted to rob one of the local banks.. but his plan was foiled.. coz he never shaved properly. Then today, one worker was killed by the beh hors in the zoo.. wah leh.
Maybe partly due to lehman fallout i think. It was really an oversight from those that was supposed to save it IMO. See what the lehman fallout do to the whole economy and well-being of the society? People got affected by it's ambiguous product, and the FIs suffer from having to assume responsibility due to goodwill, and then the staffs got affected becoz the FI had to cut cost. Now the whole economy is in shambles and it is no wonder that some might do irrational things.
And due to the credit crunch, even the IR also got affected. Too much betting on the IR le.. even before it was opened. Should it fail, it would likely to be another one of those lehman fallout.
Heard from my friends that the retrenchment exercise started.. and now it's only the finance sector.. it is really gloomy lor. Hopefully they will get to keep their jobs.
Thursday, November 06, 2008
The Cocoa Plantation
So it was in the early december.. and on the contrary, i think it is the best time to get moving. Perhaps this, perhaps that, i'm quite tired of being forced into doing things (thankfully the villagers are very patient with me).. whether i want or not. So today, i've set a date to start my OJT (on job training) on the cocoa plantation, with official taking over after the CNY. I guess i couldn't be more ready.
The whole year and a half was so fruitful (i've exhausted so many of my hobbies).. and really, i wonder where all the vineyards and papaya plantations came about. Perhaps on lower grounds, hence things are not the same. I've given quite some thought on how things will be.. yet unfortunately, the bigger picture is not that i can foresee. Of coz it would be nice to be able to use my now cmi banking and finance knowledge in the relevant field.. but really.. they take just about any other discipline.. so 多我一个不多,少我一个不少.. although i truly believe that they could have made a greater distinction rather than just that few finance papers. If so, in the 1st place i just take the papers can liao.. why waste a good 3 years?
At least i know accounting is so much different.. even with a rojak qualification, i still need to undergo a course of a few years in order to get to being a chartered accountant. Those with relevant qualification need to work for a few years to get the 'entry permit' to getting ICPAS. Years leh.. not months. So it is no wonder to me why mis-selling of products is prevalent.
Anyway, some are just a distant dream.. not that i'm really unwilling to let go of anything.. it's just that i want to experience almost everything. That explains why i'm so clueless. But it's all alright now.. i think i've got quite a bit to learn at the plantation.. and maybe, it shall be for quite a while.
The whole year and a half was so fruitful (i've exhausted so many of my hobbies).. and really, i wonder where all the vineyards and papaya plantations came about. Perhaps on lower grounds, hence things are not the same. I've given quite some thought on how things will be.. yet unfortunately, the bigger picture is not that i can foresee. Of coz it would be nice to be able to use my now cmi banking and finance knowledge in the relevant field.. but really.. they take just about any other discipline.. so 多我一个不多,少我一个不少.. although i truly believe that they could have made a greater distinction rather than just that few finance papers. If so, in the 1st place i just take the papers can liao.. why waste a good 3 years?
At least i know accounting is so much different.. even with a rojak qualification, i still need to undergo a course of a few years in order to get to being a chartered accountant. Those with relevant qualification need to work for a few years to get the 'entry permit' to getting ICPAS. Years leh.. not months. So it is no wonder to me why mis-selling of products is prevalent.
Anyway, some are just a distant dream.. not that i'm really unwilling to let go of anything.. it's just that i want to experience almost everything. That explains why i'm so clueless. But it's all alright now.. i think i've got quite a bit to learn at the plantation.. and maybe, it shall be for quite a while.
Tuesday, November 04, 2008
Zap Zap
Visited the demo today again.. and never felt so nervous for quite some time. And it was all done after a series of 'zaps'.. but not quite. The whole thing actually took an hour or so.. and never was breathing such a tedious task. But i'm so darn glad this is over.
Just in time, my dental appointment was brought forward.. thankfully that it was this morning. Received a call at 9, and by 10, was already at j8 to collect the whitening kit. And maybe, time to cut down on caffeinated drinks liao.
And today the FI called with invitation to stir coffee the next week. Wondered what will the outcome be... and how will the matriarch will react to the outcome..
Just in time, my dental appointment was brought forward.. thankfully that it was this morning. Received a call at 9, and by 10, was already at j8 to collect the whitening kit. And maybe, time to cut down on caffeinated drinks liao.
And today the FI called with invitation to stir coffee the next week. Wondered what will the outcome be... and how will the matriarch will react to the outcome..
Friday, October 31, 2008
My Purchasing Power and the "Minibong"
Been plummeted by purchasing powers that i cannot keep up.. or rather, not willing to. Strangely, the student's lifestyle seems inferior somehow. I don't know, perhaps i'm not belonging to the "young and unfazed" group of people under this gloomy economic climate.
Of coz things might be slightly better if any funds could be recovered from the soured "minibong". Following the stories of the defunct structured products seems kind of dramatic.. almost daily coverage on the matter, and yet, nothing new. I'm not convinced that things will turn for the better anytime soon. Received an acknowledgment letter from one of the FIs selling the "minibong".. and again, it was nothing new.
"Buyers' beware".. of coz i agree. But when sellers do not disclose the potential risk, it is something very wrong. Either the sellers themselves don't even know what they are selling, or they are trying to hide the shortcomings. In any case, i'm sure this is not right. By disclosure, don't use the black and white defense. Black and white doesn't mean anything if it is not understood by people. Not everyone get A1 for their angmor de ok? So.. please explain. Plus, in some cases (at least if was a definite in the matriarch's case) the prospectus was handed over AFTER the whole thing was signed. Will it be ok to say that the buyers didn't read carefully (read simi lor..)as they were do not have the prospectus? Many of the buyers don't even know what a prospectus is by the way, not to mention that they are supposed to read and understand before making a purchase. It is therefore, the responsibility of the staff to make it known to them. Since commission is given, responsibility will have to be assumed.. if not pay them just to ask people to sign papers meh? One thing for sure.. the next time if i ever need to sign any documents.. i make sure i bring a voice recorder with me.. better still, bring a dvd cam.
Of coz it is NOT in ALL case that staffs are that irresponsible or ignorant. And it won't be a surprise some investors that bona fide knew of, and accepted the risk when they signed the papers are also asking for compensation. Therefore, it is up to the relevant parties to make this distinction, and to make fair compensation when necessary. A long process for sure, and it won't be surprised if i'm pissed at the slightest thing. Just don't ask me why i'm still drinking that 30 cents sachet coffee.. of coz i know there are better ones out there.
Of coz things might be slightly better if any funds could be recovered from the soured "minibong". Following the stories of the defunct structured products seems kind of dramatic.. almost daily coverage on the matter, and yet, nothing new. I'm not convinced that things will turn for the better anytime soon. Received an acknowledgment letter from one of the FIs selling the "minibong".. and again, it was nothing new.
"Buyers' beware".. of coz i agree. But when sellers do not disclose the potential risk, it is something very wrong. Either the sellers themselves don't even know what they are selling, or they are trying to hide the shortcomings. In any case, i'm sure this is not right. By disclosure, don't use the black and white defense. Black and white doesn't mean anything if it is not understood by people. Not everyone get A1 for their angmor de ok? So.. please explain. Plus, in some cases (at least if was a definite in the matriarch's case) the prospectus was handed over AFTER the whole thing was signed. Will it be ok to say that the buyers didn't read carefully (read simi lor..)as they were do not have the prospectus? Many of the buyers don't even know what a prospectus is by the way, not to mention that they are supposed to read and understand before making a purchase. It is therefore, the responsibility of the staff to make it known to them. Since commission is given, responsibility will have to be assumed.. if not pay them just to ask people to sign papers meh? One thing for sure.. the next time if i ever need to sign any documents.. i make sure i bring a voice recorder with me.. better still, bring a dvd cam.
Of coz it is NOT in ALL case that staffs are that irresponsible or ignorant. And it won't be a surprise some investors that bona fide knew of, and accepted the risk when they signed the papers are also asking for compensation. Therefore, it is up to the relevant parties to make this distinction, and to make fair compensation when necessary. A long process for sure, and it won't be surprised if i'm pissed at the slightest thing. Just don't ask me why i'm still drinking that 30 cents sachet coffee.. of coz i know there are better ones out there.
Tuesday, October 28, 2008
Theme Dental
Another one of those overhaul in the month of october. "If not now, then when?".. lol.. wait till the economy is even worse? Till then, i don't even know whether i can afford all these.
Got my teeth cleaned, and luckily, i don't have any cavity. Got the mold made for teeth whitening, and really, options are plenty.. and so is the price. Of coz i chose the cheapest.. but the outcome won't be as significant also.
Anyway, what to do? Economic downturn, and so is the paradox of thrift. There is much at stake this year, and maybe even more the coming year.
Got my teeth cleaned, and luckily, i don't have any cavity. Got the mold made for teeth whitening, and really, options are plenty.. and so is the price. Of coz i chose the cheapest.. but the outcome won't be as significant also.
Anyway, what to do? Economic downturn, and so is the paradox of thrift. There is much at stake this year, and maybe even more the coming year.
Sunday, October 26, 2008
船到桥头
Nobody in the right mind would want a recession.. but when it happened, there's really nothing much an individual can do. Sadly (perhaps thankfully), i was a year late in graduating. By now, the landscape have changed so much that it is no longer easy to find the 'right' job. Nothing like this before.. not 911, not even sars.. and certainly not the 97 crisis can par. So what is it? 1929 in 2009?
As a retail investor, of coz i don't feel happy that my investments are gone like that. Yet on the macro scale, it isn't my wish to see the FIs suffer just becoz of this. Just really too bad that things had to turn out to be as such. Of coz there are certain individuals who really have to take a lot more responsibility then the general public. As such, the free market theory can no longer function under the influence of behavioral finance.
Why do 10,000 investor have to make a lot more s/h suffer? Actually, both parties are the victims - victims of this financial crisis. For who is really responsible, perhaps there is no answer. Finger pointing to history, might as well blame the ones who discover the new world.
Anyway, after the blood-letting of friday (of which IMO is over-reaction in the SR), it just proved that this is no ordinary crisis. Already on the way to 1600 pts and below, 50% of the index wiped out just a year after the bubble.
The usual crowd seems to be hibernating somewhere, even on a saturday. Something is not very right somehow.
Was at boiler today for a belated bday celebration of some sort. Of coz was very delighted in seeing my schoolmates, especially the OG of long ago. Really, i never regret joining the orientation camp 4 years ago, and i wondered whether is it possible to forge such ties in the jobbing world. Too much complications and competition, it won't be easy.
Finally having some hint on my path.. and perhaps might end up in the chocolate factory after all as a replacement. The greater future is too far to foresee, and it is my wish to be of some help after a quarter of a century. It was never the pay, for i owed too much. So long as the village (and the chocolate factory) is safe and sound, i will be very glad.
Will be very busy for the coming month due to some personal matter to attend to (i'm not getting married by the way...lol), and if i fail to attend to any bday celebrations, i will sms the bday wishes.. so no worries. Will only be free around december. And then the finale for this whole load is at NSC on 7th jan (perhaps later due to one more schedule and the outcome) the following year. Hopefully not something in the LR. In some way, it is not something to not worry about, yet it isn't something worth being sleepless over. I'm sure that 船到桥头自然直.
As a retail investor, of coz i don't feel happy that my investments are gone like that. Yet on the macro scale, it isn't my wish to see the FIs suffer just becoz of this. Just really too bad that things had to turn out to be as such. Of coz there are certain individuals who really have to take a lot more responsibility then the general public. As such, the free market theory can no longer function under the influence of behavioral finance.
Why do 10,000 investor have to make a lot more s/h suffer? Actually, both parties are the victims - victims of this financial crisis. For who is really responsible, perhaps there is no answer. Finger pointing to history, might as well blame the ones who discover the new world.
Anyway, after the blood-letting of friday (of which IMO is over-reaction in the SR), it just proved that this is no ordinary crisis. Already on the way to 1600 pts and below, 50% of the index wiped out just a year after the bubble.
The usual crowd seems to be hibernating somewhere, even on a saturday. Something is not very right somehow.
Was at boiler today for a belated bday celebration of some sort. Of coz was very delighted in seeing my schoolmates, especially the OG of long ago. Really, i never regret joining the orientation camp 4 years ago, and i wondered whether is it possible to forge such ties in the jobbing world. Too much complications and competition, it won't be easy.
Finally having some hint on my path.. and perhaps might end up in the chocolate factory after all as a replacement. The greater future is too far to foresee, and it is my wish to be of some help after a quarter of a century. It was never the pay, for i owed too much. So long as the village (and the chocolate factory) is safe and sound, i will be very glad.
Will be very busy for the coming month due to some personal matter to attend to (i'm not getting married by the way...lol), and if i fail to attend to any bday celebrations, i will sms the bday wishes.. so no worries. Will only be free around december. And then the finale for this whole load is at NSC on 7th jan (perhaps later due to one more schedule and the outcome) the following year. Hopefully not something in the LR. In some way, it is not something to not worry about, yet it isn't something worth being sleepless over. I'm sure that 船到桥头自然直.
Thursday, October 23, 2008
$1.65 Painkiller can't cure this
The $1.65/pill painkiller worked surprisingly well for AS.. and actually, it was manufactured to be easier on the stomach... just so it happen to cut down on instances of allergic reaction too.
So i tested the new painkiller today, with no side effect.. maybe also no painkilling effect.. lol.. got used to it so much that i can't feel the difference.
Anyway, other things to perhaps, be happy about. 3 FIs announced yesterday that they will compensate/buyback the failed structured products from those deemed vulnerable. By vulnerable they mean those old and/or those that receive little education. Sadly, the matriarch of my village failed to qualify for either criteria. Strangely, it seems that everybody else is supposed to know what a swap is by default. And if you fail to inform investors of the exact risk/reward profile of the product in detail, and then shift all responsibility to investors just becoz they signed on the dotted line is kind of without ethics. And to get staffs not meeting the mark through extensive training or education/knowledge to serve the general population is definitely not a very professional thing to do.
Compensating on a case by case basis is goodwill on the part of the FIs, but vulnerable doesn't always have to apply to old people and those that received little education. Again, finance is not something that everybody knows.. unless it is incorporated in your daily job, or you happen to study finance. Some of the terms like swaps are not something everyone can understand. It isn't a surprised that many still thinks that the structured product is a bond. Why not? the name itself is already misleading. But to compensate through certain criteria is as if that the rest really deserve it for putting implicit trusts in those that sell them the products, so when it fails, they OBG right?
However, i must say that the FIs are working very hard to find a resolution. And now for the rest, there might be an option of letting the product to run for another few more years till maturity. Yet, it just prove to be even more sleepless nights.. imagine having to wake up every morning wondering whether your investment is safe.. and it all happened becoz you thought it was having a similar risk profiles of a bond.
So that day on ST, someone said that it is unfair for FIs to compensate for the losses of the investors becoz it is in black and white. And then this someone compared the investors to gamblers of a casino saying that you can't demand a return of your chips from the casino operator just because you lost them on the tables. And if this is possible, the shareholders of listed companies can also demand compensation for a fall in share prices. IMO, if it doesn't happen to you, you won't feel the pain.. however, that is besides the point.
For:-
(the "you" refer to the author of the article)
1) Investors are not gamblers. You gamble with that knowledge of losing everything.. but bond investors (as some of the investor are being misled into thinking that they are bond investors) are those with low risk profiles. Heard of risk aversion? Heard of equity premium puzzle? (and even though so, the minibond is NOT even a bond, so there might be no premium puzzle)
2) Gambling is a zero sum game. Either the casino wins or the punters win. There is no win-win situation. Investing on the other hand is SUPPOSED to be a win-win situation for the FIs and investors.
3) Investors do not over-invest. They just failed to diversify. Why diversify if you truly believed that this so called "bond" (which i must stress again is not a bond) is SUPPOSED to be safe? Then you will diversify your interest away don't you? And failure to diversify is not over-gambling.
4) Gamblers can choose whatever game they wished to play, without the dealer influencing them on their decision. Some sales staff from the FIs try to sell the structured products to people who just want a simple fixed deposit. You really think those being swayed by the sales staffs really deserved it? Do you think they represent the product in a fair manner?
5) Shareholders are owners, investors are lenders. In anycase, lenders are creditors that have a priority claim higher than that of a shareholder in the event of insolvency. To par shareholders with lenders is another load of bull. If they are the same, why don't they share some of the profits with the investors?
6) Shareholders can hold the management liable if they failed to perform (for example the dropping of share prices) in the coming AGM by replacing those responsible.. but for the investors, what real option do they have in this case? Lawsuit? Protest? And even so, they do not solve the root of the problem.
I'm just short of flaming the author.. and already this entry is slightly altered to omit the more unfriendly expression. But after reading his/her full article, it is something really IHO (in his/her opinion), and perhaps the greatest mistake is making it into the ST.. that's all.
Of coz, to make shareholders pay (through a fall in share prices) is not fair, neither is making taxpayers pay through fiscal/monetary policies. For sure, this is hardly a win-win situation.. coz someone, somewhere, has already won. The money is somewhere else, maybe in some high-end SPA, but nowhere near that is.
There won't be any solution soon, and the solution won't be as clear cut as those being compensated in full. Every decision is critical.. and so it is putting a lot of stress on the village's matriarch. You think she really deserves it?
So i tested the new painkiller today, with no side effect.. maybe also no painkilling effect.. lol.. got used to it so much that i can't feel the difference.
Anyway, other things to perhaps, be happy about. 3 FIs announced yesterday that they will compensate/buyback the failed structured products from those deemed vulnerable. By vulnerable they mean those old and/or those that receive little education. Sadly, the matriarch of my village failed to qualify for either criteria. Strangely, it seems that everybody else is supposed to know what a swap is by default. And if you fail to inform investors of the exact risk/reward profile of the product in detail, and then shift all responsibility to investors just becoz they signed on the dotted line is kind of without ethics. And to get staffs not meeting the mark through extensive training or education/knowledge to serve the general population is definitely not a very professional thing to do.
Compensating on a case by case basis is goodwill on the part of the FIs, but vulnerable doesn't always have to apply to old people and those that received little education. Again, finance is not something that everybody knows.. unless it is incorporated in your daily job, or you happen to study finance. Some of the terms like swaps are not something everyone can understand. It isn't a surprised that many still thinks that the structured product is a bond. Why not? the name itself is already misleading. But to compensate through certain criteria is as if that the rest really deserve it for putting implicit trusts in those that sell them the products, so when it fails, they OBG right?
However, i must say that the FIs are working very hard to find a resolution. And now for the rest, there might be an option of letting the product to run for another few more years till maturity. Yet, it just prove to be even more sleepless nights.. imagine having to wake up every morning wondering whether your investment is safe.. and it all happened becoz you thought it was having a similar risk profiles of a bond.
So that day on ST, someone said that it is unfair for FIs to compensate for the losses of the investors becoz it is in black and white. And then this someone compared the investors to gamblers of a casino saying that you can't demand a return of your chips from the casino operator just because you lost them on the tables. And if this is possible, the shareholders of listed companies can also demand compensation for a fall in share prices. IMO, if it doesn't happen to you, you won't feel the pain.. however, that is besides the point.
For:-
(the "you" refer to the author of the article)
1) Investors are not gamblers. You gamble with that knowledge of losing everything.. but bond investors (as some of the investor are being misled into thinking that they are bond investors) are those with low risk profiles. Heard of risk aversion? Heard of equity premium puzzle? (and even though so, the minibond is NOT even a bond, so there might be no premium puzzle)
2) Gambling is a zero sum game. Either the casino wins or the punters win. There is no win-win situation. Investing on the other hand is SUPPOSED to be a win-win situation for the FIs and investors.
3) Investors do not over-invest. They just failed to diversify. Why diversify if you truly believed that this so called "bond" (which i must stress again is not a bond) is SUPPOSED to be safe? Then you will diversify your interest away don't you? And failure to diversify is not over-gambling.
4) Gamblers can choose whatever game they wished to play, without the dealer influencing them on their decision. Some sales staff from the FIs try to sell the structured products to people who just want a simple fixed deposit. You really think those being swayed by the sales staffs really deserved it? Do you think they represent the product in a fair manner?
5) Shareholders are owners, investors are lenders. In anycase, lenders are creditors that have a priority claim higher than that of a shareholder in the event of insolvency. To par shareholders with lenders is another load of bull. If they are the same, why don't they share some of the profits with the investors?
6) Shareholders can hold the management liable if they failed to perform (for example the dropping of share prices) in the coming AGM by replacing those responsible.. but for the investors, what real option do they have in this case? Lawsuit? Protest? And even so, they do not solve the root of the problem.
I'm just short of flaming the author.. and already this entry is slightly altered to omit the more unfriendly expression. But after reading his/her full article, it is something really IHO (in his/her opinion), and perhaps the greatest mistake is making it into the ST.. that's all.
Of coz, to make shareholders pay (through a fall in share prices) is not fair, neither is making taxpayers pay through fiscal/monetary policies. For sure, this is hardly a win-win situation.. coz someone, somewhere, has already won. The money is somewhere else, maybe in some high-end SPA, but nowhere near that is.
There won't be any solution soon, and the solution won't be as clear cut as those being compensated in full. Every decision is critical.. and so it is putting a lot of stress on the village's matriarch. You think she really deserves it?
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