#209 learning to live within one’s means

Man has short memory indeed! The last recession was about 6 years ago here in Singapore?

Have we picked up since then? Or are we gliding further? Up a little and slide further?

Have we learnt our lessons since?

Recession, panic selling in the stock market, credit crunch gale force sweeping Europe might be blessing in disguise — though painful!

This is perhaps a time when man is forced to wake up to learn living within one’s means — no more borrowed money or assumption to making easy money!

A time to be true and honest with self…no more living in pretense or deception!

#207 who do you trust?

Having money is a problem these days. Putting money in the bank is no consolation either.

You lose your hard earned cash when a financial institution collapsed. I was told you could file for misrepresentation — that the profile of products bought did not suit the personality of one. How does this work?

The high turnover of officers serving you in the banks leaves one insecure and lacking continuity especially for the smaller or new savers. 

Why the high turnover of bank officers? The officer has to perform, otherwise the manager will be breathing down his neck daily. Should he not perform according to portfolio, the officer is shown the exit. If he did well, he was rewarded handsomely.

The latest news: Iceland is a country that is going bankrupt! What does that mean? Will those who had savings in the banks see these evaporate?

#196 a new financial world emerging?

It seems the global financial crisis we’re experiencing at the moment is deeper and more serious than anticipated.

The collapse of Lehman Brothers has caused domino effect on many financial institutions creating turmoil, tsunami, hurricane… Is this the true face of credit crunch?

Below a video clip of NY trader Arthur D Cashin Jr with almost 50 years of experience on turbulent times — the fear today is “Who can I trust to trade with?”


Will there come a time when there will be no American-based investment banks at Wall Street? A new financial world emerging?

Are we heading towards the Great Depression?


I’m curious about the credit crunch…banks like UBS made huge losses. Several countries, like Singapore (forked out $14billion?), to help bail out UBS.

Now into whose pocket did the cash go into? Where did these monies go?

Surely there must be someone or organisations benefiting these massive losses. Or is this a case, over the years, there were lots of misappropriation of funds and bad audits?

In stocks and shares, one suffers book loss. What does ‘book loss’ mean? If that means virtual money, then why the jitters?

Can anyone explain these happenings?

Furthermore, there is high inflation around the world.

Is the world heading deep economic depression?


Subprime and credit crunch are symptoms of a lack of integrity in the banking system. 

Has this encouragement ‘to live on credit’ taking its toll? Whoever started this ‘living on personal credit is the smart way’ is reaping ill harvest!

The interesting thing is the management sets quotas and expects its employees to rake in good profit margin. If the employee cannot deliver, he is axed. What should he do? Change the numbers to fill the quota…and a tale of downfall! When problem arises, the management (rather top executives) looks for a scapegoat among its underlings!

In the event, guess where or what does the management use to plug the hole? Yours and my money — the taxpayers! The average people’s hard earn money…the executives continue to draw their salaries! There are situations where executives would conveniently take their share out before the collapse!

For subprime, those who cannot service their home loans, lose their houses…who cares if they live on the street!??!! (sic!)

Is there big bucks to be made? Can one make big bucks without digging one’s grave? If there were, surely there’d be ‘oodles’ of rich people around.

The truth is we lie to one another in the name of risk-taking! It’s true that unless one takes risks, one cannot move forward or achieve a target. However there are risks worth taking and risks not worth taking. Risks itself is neutral but when there is manipulation, trouble sneaks in and spirals.