It’s as good as official. Singapore is headed for recession as the global financial crisis sweep across the world.
With the US economy wilting under its worst financial crisis since the Great Depression, Iceland on the brink of national bankruptcy and countries across Europe and Russia rescuing banks left, right and centre, the news isn’t too unexpected. After all Singapore is heavily dependent on trade, so when our export markets in the US and Europe suffer, so do we.
What worries me is the fact that some economists say that the slowdown could last 2 years. Almost all of them have written off 2009 but the fact that some of them have written off 2010 as well worries me. This shows me that there’s a lack of confidence that the U.S can solve their subprime mortgage problems. And given that more than two-thirds of our country's economy is driven by external demand; that is bad, bad news.
Just 2 months, the Singapore's government cut its forecast for economic growth this year to between four and five percent and recently Finance Minister Tharman Shanmugaratnam warned that we could be stuck in an economic downturn for "several quarters".
Bad news on the left, worse news on the right. Look like there’s tough times ahead for everyone.
Wednesday, October 8, 2008
Tuesday, October 7, 2008
What About the Economy?
With the world stock market in a nosedive, you would think that the economy would be first and foremost on the lips of anyone running for political office. Not so for the U.S of A.
In their bid to be the U.S President, character assassinations emerge as the tactics of choice in John McCain-Barack Obama race. GOP presidential nominee John McCain and Sarah Palin fired the first shot raising Obama's relationship with a former 1960s radical. Under accusations that he was "palling around with terrorists who would target their own country" Obama fired back, bringing up the past scandals of John McCain.
John McCain’ s role in a banking scandal and his past connections to a private group that supplied aid to guerrillas seeking to overthrow the leftist government of Nicaragua 20 years ago are all now on U.S news. In acts of supreme irony, both sides are accusing the other of a political smear campaign.
Here’s a suggestion to both of them: Talk about the economy and how you are going to fix the problem. That way neither of you needs to worry about any “smear campaign”. I am sure most Americans, and most of the world, are far more interested in the economy than your past scandals.
In their bid to be the U.S President, character assassinations emerge as the tactics of choice in John McCain-Barack Obama race. GOP presidential nominee John McCain and Sarah Palin fired the first shot raising Obama's relationship with a former 1960s radical. Under accusations that he was "palling around with terrorists who would target their own country" Obama fired back, bringing up the past scandals of John McCain.
John McCain’ s role in a banking scandal and his past connections to a private group that supplied aid to guerrillas seeking to overthrow the leftist government of Nicaragua 20 years ago are all now on U.S news. In acts of supreme irony, both sides are accusing the other of a political smear campaign.
Here’s a suggestion to both of them: Talk about the economy and how you are going to fix the problem. That way neither of you needs to worry about any “smear campaign”. I am sure most Americans, and most of the world, are far more interested in the economy than your past scandals.
Monday, October 6, 2008
Asia Bailout Fund
A week after the U.S Congress reluctantly passed the $700 billion bailout package, it seems Germany and Europe has to follow suit. Germany just had to guarantee all bank savings and stepped in with the biggest bank rescue in their country's history, as the world financial crisis has moved from the US economy to the world at large.
Thus far, it seems that the massive US bailout package has done little to calm investor nerves with major stock markets dropping almost daily. I put the blame on those idiots in the U.S Congress who voted against the bailout the first time. Wall Street dropped 777 points after that vote and that increased the turmoil that has shook stock markets around the world.
Leaders of France, Germany, Britain and Italy now pledged to step up coordination on tackling the financial crisis, but refused to set up a joint bailout fund for European banks. They may not have a choice anymore.
The German government’s emergency rescue package of Hypo Real Estate (HPE), the country's fourth-largest bank, follow French Bank BNP Paribas agreement to take control of ailing finance group Fortis's operations in Belgium and Luxembourg. Saving banks seems to be the new hobby in the financial world now.
However after the bailouts in the U.S and Europe, maybe it’s time for Asia to wonder if this is the time to set up a fund for banks as well. After all, it’s only a matter of time before a bank in Asia is hit. Why not set up a bail-out fund beforehand?
Thus far, it seems that the massive US bailout package has done little to calm investor nerves with major stock markets dropping almost daily. I put the blame on those idiots in the U.S Congress who voted against the bailout the first time. Wall Street dropped 777 points after that vote and that increased the turmoil that has shook stock markets around the world.
Leaders of France, Germany, Britain and Italy now pledged to step up coordination on tackling the financial crisis, but refused to set up a joint bailout fund for European banks. They may not have a choice anymore.
The German government’s emergency rescue package of Hypo Real Estate (HPE), the country's fourth-largest bank, follow French Bank BNP Paribas agreement to take control of ailing finance group Fortis's operations in Belgium and Luxembourg. Saving banks seems to be the new hobby in the financial world now.
However after the bailouts in the U.S and Europe, maybe it’s time for Asia to wonder if this is the time to set up a fund for banks as well. After all, it’s only a matter of time before a bank in Asia is hit. Why not set up a bail-out fund beforehand?
Sunday, October 5, 2008
Stupid Move by NTU
On the week when opposition figure J.B. Jeyaretnam died, a simple case from Nanyang Technological University showed actually what the man has been fighting against all his political life.
The Nanyang Technological University's broadcast network had ran a small news bulletin on Chee Soon Juan after he visited the school in late August to meet students and hand out fliers. For some reason that I failed to understand, school officials pulled the bulletin off the airwaves and stopped a planned news article about Chee's visit.
What is this "concern about school media airing "unsolicited views" from an "uninvited" person"? What harm can a small bulletin do? Isn't it more advisable and smarter for the NTU to just let the students run the bulletin? How long would people remember a simple bulletin from the university's broadcast? Hell, how many people/students actually listen to the school's broadcast anyway?
But in banning the broadcast, about 60 people now gather at Speakers' Corner to protest the decision and Chee Soon Juan now has more airplay than ever before. I truly fear for the students of the university when the officials of the school are so stupid. Talk about a decision that backfired. Chee Soon Juan may a vocal critic of the government but what harm can a bulletin actually do to the school or the PAP?
But a protest against the ban of the bulletin at the Speakers' Corner by the students and former students from the university in question, that's news! If I am part of the PAP, I will be less than happy with the school officials of NTU.
The Nanyang Technological University's broadcast network had ran a small news bulletin on Chee Soon Juan after he visited the school in late August to meet students and hand out fliers. For some reason that I failed to understand, school officials pulled the bulletin off the airwaves and stopped a planned news article about Chee's visit.
What is this "concern about school media airing "unsolicited views" from an "uninvited" person"? What harm can a small bulletin do? Isn't it more advisable and smarter for the NTU to just let the students run the bulletin? How long would people remember a simple bulletin from the university's broadcast? Hell, how many people/students actually listen to the school's broadcast anyway?
But in banning the broadcast, about 60 people now gather at Speakers' Corner to protest the decision and Chee Soon Juan now has more airplay than ever before. I truly fear for the students of the university when the officials of the school are so stupid. Talk about a decision that backfired. Chee Soon Juan may a vocal critic of the government but what harm can a bulletin actually do to the school or the PAP?
But a protest against the ban of the bulletin at the Speakers' Corner by the students and former students from the university in question, that's news! If I am part of the PAP, I will be less than happy with the school officials of NTU.
Friday, October 3, 2008
Too Late China
In a desperate damage limitation exercise, China has recalled all exported milk powder sold overseas before 14/9. As China continued to move to contain the scandal over tainted milk that has sickened thousands of children, I have only one thing to say, “Too little, too late.”
Reports state that the first case was reported last year, and the Chinese government knew about the tainted baby milk formula about 1 month before the Olympics. Everything was hushed up to protect profits for the companies and the image of image during the Olympics.
Meanwhile, babies got sicker and sicker. Then the first baby died and the scandal exploded. Right now at least four children are dead and 53,000 babies are sickened in mainland China alone due to the greed of the companies.
China’s food safety reputation was never strong to begin with and with this case, whatever was left of it has been destroyed. Countries around the world have announced steps to ban and recall products containing Chinese milk. If anymore of the sick 53,000 babies die…
I can say with some conviction that China can forget about damage limitation because no one is going trust a single word of what they say. What they need to do is overhaul the safety standards in China and have strict enforcement of those standards. Until that happen, forget it. No one will buy any food with ‘Made in China’ on it.
Reports state that the first case was reported last year, and the Chinese government knew about the tainted baby milk formula about 1 month before the Olympics. Everything was hushed up to protect profits for the companies and the image of image during the Olympics.
Meanwhile, babies got sicker and sicker. Then the first baby died and the scandal exploded. Right now at least four children are dead and 53,000 babies are sickened in mainland China alone due to the greed of the companies.
China’s food safety reputation was never strong to begin with and with this case, whatever was left of it has been destroyed. Countries around the world have announced steps to ban and recall products containing Chinese milk. If anymore of the sick 53,000 babies die…
I can say with some conviction that China can forget about damage limitation because no one is going trust a single word of what they say. What they need to do is overhaul the safety standards in China and have strict enforcement of those standards. Until that happen, forget it. No one will buy any food with ‘Made in China’ on it.
Thursday, October 2, 2008
EPL this Month
The month of September is over, and the season has only just begun. But this being the EPL, teams has already started to move and the league table is beginning to take shape.
Top Teams this Month
Chelsea- New manager Luiz Felipe Scolari has turned Chelsea into an attacking team faster than even I thought he would. With Deco in the middle, Chelsea has a true playmaker and things look good at Stamford Bridge. The loss of Micheal Essien is a big blow but Chelsea has a big enough, good enough squad to play through the injuries.
Liverpool- Manager Rafael Benitez must be thanking his lucky stars that he managed to get Fernando Torres. Torres is the reason Liverpool is at joint top of the EPL thus far. This is a good thing because it seems that Benitez got it wrong in the transfer market again. Robbie Keane looks like a bust to me, but as long as Fernando Torres keeps scoring, Liverpool will have a chance at the title.
Hull City- After 5 games, Hull City is sixth in the EPL? Hull City has had a dream start to their first EPL season and boss Phil Brown is the reason for it. Phil Brown has a side that is difficult to beat, full of spirit, and unafraid of the other teams. How many sides had beaten Arsenal at the Emirates? One, which was West Ham, Hull City was just the second. They keep this up and Hull may still be in the EPL next season. Who would have bet on that?
Surprise Team this month
Man City- After firing Sven-Goran Eriksson and hiring Mark Hughes, things look bad for Man City. Suddenly, Thaksin Shinawatra sold the club to the Abu Dhabi United Group, big money flow into the club, they signed Robinho, and they are the team everyone wants to beat. Just another month in Man City where the only certainty is uncertainty.
Disappointing Teams this month
Manchester United – Man Utd may have won the battle to keep Cristiano Ronaldo, but they have been struggling thus far in the EPL. I will be the devil’s advocate here and say this, “I think Dimitar Berbatov may be a bad buy for them.” Berbatov is a great player with silky skills and a great touch, but I think he does not fit into the style of play Man Utd has. Sir Alex Ferguson want a willing runner upfront who will run into the channels and create open space for his midfielders to run into. That is not Dimitar Berbatov. Unless Berbatov changes his style of play, Man Utd will have a problem upfront.
Tottenham Hotspur- Tottenham supporters must be wondering what the hell is going on with their team. After winning the Carling Cup, Spurs fans would have to be forgiven for thinking this is the season for them to push into the top tier of the EPL. Things have not turned out that way. Juande Ramos has to face a problem most managers faced when they are winning; bigger teams will poach your top players. 11 players left the club since the Carling Cup win with 7 new players coming in. His top 2 strikers, Dimitar Berbatov and Robbie Keane, both forced Spurs to sell them and the team now looked weak upfront. However I think if Spurs keep their cool and give Ramos time, things will get better. He has signed a couple of very good players and it is still a good squad. Give him time and things will get better.
Newcastle- I’m not a Newcastle fan so I may have a more unemotional view of things. I have to say this, “Why are the fans turning on Newcastle United’s owner Mike Ashley?” I can understand why they are unhappy with the departure of former manager Kevin Keegan, but Mike Ashley is true fan of Newcastle who has done good things for the club. Would they prefer their club to be in the hands of some Nigerian consortium who no one has ever heard of? Besides, it’s not like they got a bad deal on James Milner. The player wanted to go to Aston Villa anyway! How is that Mike Ashley’s or Dennis Wise’s fault? Sometimes, football fans are just crazy.
Top Teams this Month
Chelsea- New manager Luiz Felipe Scolari has turned Chelsea into an attacking team faster than even I thought he would. With Deco in the middle, Chelsea has a true playmaker and things look good at Stamford Bridge. The loss of Micheal Essien is a big blow but Chelsea has a big enough, good enough squad to play through the injuries.
Liverpool- Manager Rafael Benitez must be thanking his lucky stars that he managed to get Fernando Torres. Torres is the reason Liverpool is at joint top of the EPL thus far. This is a good thing because it seems that Benitez got it wrong in the transfer market again. Robbie Keane looks like a bust to me, but as long as Fernando Torres keeps scoring, Liverpool will have a chance at the title.
Hull City- After 5 games, Hull City is sixth in the EPL? Hull City has had a dream start to their first EPL season and boss Phil Brown is the reason for it. Phil Brown has a side that is difficult to beat, full of spirit, and unafraid of the other teams. How many sides had beaten Arsenal at the Emirates? One, which was West Ham, Hull City was just the second. They keep this up and Hull may still be in the EPL next season. Who would have bet on that?
Surprise Team this month
Man City- After firing Sven-Goran Eriksson and hiring Mark Hughes, things look bad for Man City. Suddenly, Thaksin Shinawatra sold the club to the Abu Dhabi United Group, big money flow into the club, they signed Robinho, and they are the team everyone wants to beat. Just another month in Man City where the only certainty is uncertainty.
Disappointing Teams this month
Manchester United – Man Utd may have won the battle to keep Cristiano Ronaldo, but they have been struggling thus far in the EPL. I will be the devil’s advocate here and say this, “I think Dimitar Berbatov may be a bad buy for them.” Berbatov is a great player with silky skills and a great touch, but I think he does not fit into the style of play Man Utd has. Sir Alex Ferguson want a willing runner upfront who will run into the channels and create open space for his midfielders to run into. That is not Dimitar Berbatov. Unless Berbatov changes his style of play, Man Utd will have a problem upfront.
Tottenham Hotspur- Tottenham supporters must be wondering what the hell is going on with their team. After winning the Carling Cup, Spurs fans would have to be forgiven for thinking this is the season for them to push into the top tier of the EPL. Things have not turned out that way. Juande Ramos has to face a problem most managers faced when they are winning; bigger teams will poach your top players. 11 players left the club since the Carling Cup win with 7 new players coming in. His top 2 strikers, Dimitar Berbatov and Robbie Keane, both forced Spurs to sell them and the team now looked weak upfront. However I think if Spurs keep their cool and give Ramos time, things will get better. He has signed a couple of very good players and it is still a good squad. Give him time and things will get better.
Newcastle- I’m not a Newcastle fan so I may have a more unemotional view of things. I have to say this, “Why are the fans turning on Newcastle United’s owner Mike Ashley?” I can understand why they are unhappy with the departure of former manager Kevin Keegan, but Mike Ashley is true fan of Newcastle who has done good things for the club. Would they prefer their club to be in the hands of some Nigerian consortium who no one has ever heard of? Besides, it’s not like they got a bad deal on James Milner. The player wanted to go to Aston Villa anyway! How is that Mike Ashley’s or Dennis Wise’s fault? Sometimes, football fans are just crazy.
Wednesday, October 1, 2008
Passing of a Singapore Fighter
Opposition icon, Mr JB Jeyaretnam, died from heart failure on Tuesday morning and it is a sad day for Singapore. The former Secretary-General of the Workers' Party was 82 and I feel sorry for the loss of this great fighter.
Mr JB Jeyaretnam, better known as JBJ, fought his whole life to bring change to Singapore and was the first to break a government monopoly on power in Singapore when he won a seat in parliament in 1981 Anson by-election. I, like most Singaporeans, know JBJ better as a thorn in the side of Singapore's Minister Mentor Lee Kuan-yew and the reason why Singapore abolished the Privy Council in 1989. The abolition followed a decision of the Privy Council in 1988 that criticized the "grievous injustice" suffered by JBJ at the hands of the Government of Singapore.
That in affect gives you an idea of JB Jeyaretnam. A man who never gave up on fighting the good fight despite all the lawsuits and smears directed at him. Most Singaporeans, including me, would have given up years ago. I will not fight like him (who wants to be a bankrupt) but I respect him because I know he will fight when others would have quit. I mean the man even recently formed the Reform Party after leaving the Worker’s Party. That tell you this is a man that will not give up.
I will admit I don’t quite understand him (to form a new political party in Singapore when most Singaporeans avoid politics like the plague) and I don’t have an inch of his fighting spirit but maybe it’s because of that, that I am truly sorry he is no longer around.
Mr. Joshua Benjamin Jeyaretnam, may you rest in peace. You will be missed
Mr JB Jeyaretnam, better known as JBJ, fought his whole life to bring change to Singapore and was the first to break a government monopoly on power in Singapore when he won a seat in parliament in 1981 Anson by-election. I, like most Singaporeans, know JBJ better as a thorn in the side of Singapore's Minister Mentor Lee Kuan-yew and the reason why Singapore abolished the Privy Council in 1989. The abolition followed a decision of the Privy Council in 1988 that criticized the "grievous injustice" suffered by JBJ at the hands of the Government of Singapore.
That in affect gives you an idea of JB Jeyaretnam. A man who never gave up on fighting the good fight despite all the lawsuits and smears directed at him. Most Singaporeans, including me, would have given up years ago. I will not fight like him (who wants to be a bankrupt) but I respect him because I know he will fight when others would have quit. I mean the man even recently formed the Reform Party after leaving the Worker’s Party. That tell you this is a man that will not give up.
I will admit I don’t quite understand him (to form a new political party in Singapore when most Singaporeans avoid politics like the plague) and I don’t have an inch of his fighting spirit but maybe it’s because of that, that I am truly sorry he is no longer around.
Mr. Joshua Benjamin Jeyaretnam, may you rest in peace. You will be missed
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