LKY: Our investments in banks will go up

[makapaaa]

<TABLE id=msgUN cellSpacing=3 cellPadding=0 width="100%" border=0><TBODY><TR><TD id=msgUNsubj vAlign=top>Coffeeshop Chit Chat - LKY: Our investments in banks will go up</TD><TD id=msgunetc noWrap align=right>

Subscribe </TD></TR></TBODY></TABLE><TABLE class=msgtable cellSpacing=0 cellPadding=0 width="96%"><TBODY><TR><TD class=msg vAlign=top><TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR class=msghead><TD class=msgbfr1 width="1%"> </TD><TD><TABLE cellSpacing=0 cellPadding=0 border=0><TBODY><TR class=msghead><TD class=msgF noWrap align=right width="1%">From: </TD><TD class=msgFname noWrap width="68%">kojakbt22 <NOBR>

</NOBR> </TD><TD class=msgDate noWrap align=right width="30%">Feb-6 10:29 am </TD></TR><TR class=msghead><TD class=msgT noWrap align=right width="1%" height=20>To: </TD><TD class=msgTname noWrap width="68%">ALL <NOBR></NOBR></TD><TD class=msgNum noWrap align=right> (1 of 42) </TD></TR></TBODY></TABLE></TD></TR><TR><TD class=msgleft width="1%" rowSpan=4> </TD><TD class=wintiny noWrap align=right>6598.1 </TD></TR><TR><TD height=8></TD></TR><TR><TD class=msgtxt>MM Lee explains Singapore's long-term investment horizon
By Valarie Tan, Channel NewsAsia | Posted: 06 February 2009 2325 hrs
SINGAPORE : Singapore's Minister Mentor Lee Kuan Yew has said the country has over S$100 billion in reserves today, unlike the 1960s when the country first gained independence.

But the Republic has not relied on borrowing to fund its investments.

Mr Lee said: "Within three to four years, the economy must recover."

The minister mentor gave his forecast on the economy to 1,500 of his Tanjong Pagar constituents at a Lunar New Year dinner on Friday.

He said that the Singapore government turned many of its stocks and shares into cash early last year before prices went down. That was why the country was able to invest in the American banks.

Mr Lee explained: "When we invest, we are investing for 10, 15, 20 years. You may look as if you are making a big loss today, but you have not borrowed money to invest. You will ride the storm, the company recovers, your shares go up."

But he said that Singapore is not a master of its own economy.

He said: "Of all the economies in the world, we have the highest percentage of external trade - three and a quarter times our GDP. No other country has got that size of external trade. So when the external trade shrinks, remember it is going to hurt us."

Still, Mr Lee is confident Singapore will recover from the current downturn, due to various reasons like good labour relations and pro-investment climate in the country. But he said that giving handouts will not help boost spending and the economy.

"So those MPs who say, 'Give S$300 to every citizen and we will boost the retailers', they just do not understand the bigger picture. You give S$300 like that and it is gone in a shot, and all the things that they will buy, three-quarters of it are imported," he said.

Mr Lee added that, with luck, America's economy may recover by the end of this year or early 2010. He said the outcome of President Barack Obama's economic plans is expected in nine months. And by then, the Singapore government may have to update its record S$20.6 billion national budget.
[email protected]

</TD></TR></TBODY></TABLE></TD></TR></TBODY></TABLE>

 

[R4g3]

He still doesn't get it or he is just to defend a mistake with crappy excuses?

the point is not a matter of long term or short term, it is the timing.

They invest at the time when everyone think it is wrong, yet they go ahead without consideration of the peoples' opinions.

Even it is a long term investment, still no reason to buy at high price. If they have the slightest foresight, they will be buying it now, at just a small fraction of what they have spent. In fact if today they are still holding the cash, they will be waiting for a lower price and not buying, it goes to show how bad is the timing of their investment.

 

[shelltox]

+ they go ahead without consideration of the peoples' opinions+ Bro, i think i dont agree with this statement you mentioned. In investments, how many people really know anything about investments. Even the investments gurus the so called "Gu Shen" example warren buffet, li ka sheng/ soros had seen their portfolio halved . It is a very difficult period to invest in. The only investors who survived this mayhem are those who are long in Gold esp those who had bought gold when it was 250 an oz.

 

[theDoors]

+ they go ahead without consideration of the peoples' opinions+ Bro, i think i dont agree with this statement you mentioned. In investments, how many people really know anything about investments. Even the investments gurus the so called "Gu Shen" example warren buffet, li ka sheng/ soros had seen their portfolio halved . It is a very difficult period to invest in. The only investors who survived this mayhem are those who are long in Gold esp those who had bought gold when it was 250 an oz.

Thread that was started in May 2006 in SPUG forum that says that there will be financial storm in 2007.
http://www.spug.sg/forums/showthread.php?t=82145&highlight=financial+storm+2007

Thread that was started in Nov 2007 in SPUG forum that says that the US banking system will collapse.
http://www.spug.sg/forums/showthread.php?t=90248&highlight=collapse+banking+system

 

[neddy]

What banks? The banks are selling the profitable divisions. What's left are the empty shell, a fraction of what is being purchased.

<TABLE id=msgUN cellSpacing=3 cellPadding=0 width="100%" border=0><TBODY><TR><TD id=msgUNsubj vAlign=top>Coffeeshop Chit Chat - LKY: Our investments in banks will go up</TD><TD id=msgunetc noWrap align=right>

Subscribe </TD></TR></TBODY></TABLE><TABLE class=msgtable cellSpacing=0 cellPadding=0 width="96%"><TBODY><TR><TD class=msg vAlign=top><TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR class=msghead><TD class=msgbfr1 width="1%"> </TD><TD><TABLE cellSpacing=0 cellPadding=0 border=0><TBODY><TR class=msghead><TD class=msgF noWrap align=right width="1%">From: </TD><TD class=msgFname noWrap width="68%">kojakbt22 <NOBR>

</NOBR> </TD><TD class=msgDate noWrap align=right width="30%">Feb-6 10:29 am </TD></TR><TR class=msghead><TD class=msgT noWrap align=right width="1%" height=20>To: </TD><TD class=msgTname noWrap width="68%">ALL <NOBR></NOBR></TD><TD class=msgNum noWrap align=right> (1 of 42) </TD></TR></TBODY></TABLE></TD></TR><TR><TD class=msgleft width="1%" rowSpan=4> </TD><TD class=wintiny noWrap align=right>6598.1 </TD></TR><TR><TD height=8></TD></TR><TR><TD class=msgtxt>MM Lee explains Singapore's long-term investment horizon
By Valarie Tan, Channel NewsAsia | Posted: 06 February 2009 2325 hrs
SINGAPORE : Singapore's Minister Mentor Lee Kuan Yew has said the country has over S$100 billion in reserves today, unlike the 1960s when the country first gained independence.

But the Republic has not relied on borrowing to fund its investments.

Mr Lee said: "Within three to four years, the economy must recover."

The minister mentor gave his forecast on the economy to 1,500 of his Tanjong Pagar constituents at a Lunar New Year dinner on Friday.

He said that the Singapore government turned many of its stocks and shares into cash early last year before prices went down. That was why the country was able to invest in the American banks.

Mr Lee explained: "When we invest, we are investing for 10, 15, 20 years. You may look as if you are making a big loss today, but you have not borrowed money to invest. You will ride the storm, the company recovers, your shares go up."

But he said that Singapore is not a master of its own economy.

He said: "Of all the economies in the world, we have the highest percentage of external trade - three and a quarter times our GDP. No other country has got that size of external trade. So when the external trade shrinks, remember it is going to hurt us."

Still, Mr Lee is confident Singapore will recover from the current downturn, due to various reasons like good labour relations and pro-investment climate in the country. But he said that giving handouts will not help boost spending and the economy.

"So those MPs who say, 'Give S$300 to every citizen and we will boost the retailers', they just do not understand the bigger picture. You give S$300 like that and it is gone in a shot, and all the things that they will buy, three-quarters of it are imported," he said.

Mr Lee added that, with luck, America's economy may recover by the end of this year or early 2010. He said the outcome of President Barack Obama's economic plans is expected in nine months. And by then, the Singapore government may have to update its record S$20.6 billion national budget.
[email protected]

</TD></TR></TBODY></TABLE></TD></TR></TBODY></TABLE>

 

[poore]

if ppl dun buy at all....all retailers will close down!

 

[The_Latest_H]

My stance about these investments has always been consistent: we shouldn't invest in these banks and insurance companies at all. Period.

LKY still thinks its prudent, but I believe its political. And when business decisions are made because of politics, it often turns out bad. That's why I oppose Temasek and GIC investing in these banks.

We must be careful in getting out of this industry, as we were careless in getting in, to paraphrase President Obama's quote about Iraq.

 

[0939]

All along LKY never believe in giving handouts to the people. $300 will be gone in 60 seconds. Its not the Govt mistakes. It is our our mistakes for not being prepared ourselves when time in need.

 

[Merl Haggard]

He still doesn't get it or he is just to defend a mistake with crappy excuses?

the point is not a matter of long term or short term, it is the timing.

They invest at the time when everyone think it is wrong, yet they go ahead without consideration of the peoples' opinions.

Even it is a long term investment, still no reason to buy at high price. If they have the slightest foresight, they will be buying it now, at just a small fraction of what they have spent. In fact if today they are still holding the cash, they will be waiting for a lower price and not buying, it goes to show how bad is the timing of their investment.

That's what a senile 85 year old man would deliver, and that's the high price we all have to pay
for this old & senile scum who clings onto power.

 

[Nice-Gook]

Who is to adjudicate those justifications?Where is the transparency.

Why not let the voters sees the right and wrongs of such investments.Its human to err but people should be aware too.

 

[halsey02]

The poof iz in de pooding....or the proff is in the 'fooling'? whichever, long term investments...when your grand children get marries & old man is long gone...you will get good returns from these banks investments. "nothing ventured, nothing gained"...

or the firoegn presses are lying...?
=====================================================

UBS to report historic loss

UBS' annual net loss is believed to be between 14.1 and 19.4 billion Swiss francs.-AFP

Sun, Feb 08, 2009
AFP

ZURICH, SWITZERLAND - SWITZERLAND'S largest bank, UBS, is expected to announce the biggest loss in the country's history when it releases on Tuesday its results for 2008, a year that saw the national icon tarnished by the subprime crisis.

But if there is a silver lining for the bank, which has been the target of a huge state rescue package, it lies in the fact that analysts say UBS has now hit bottom after its stock price fell 82 per cent since the summer of 2007.

For that reason, the loss of nearly 20 billion Swiss francs ($25 billion) the bank is expected to announce for 2008 on Tuesday should not surprise markets, analysts say.

'The bank has already publicised its problems to a large degree and the fall in the stock price should not be so large,' said a trader in Zurich.

Last November, UBS posted a net profit of 296 million Swiss francs for the third quarter following a year of losses, but warned that a renewed loss was looming for the following quarter.

The numbers expected to be unveiled Tuesday are staggering, reflecting the fact that UBS was one of the banks hardest hit by the US subprime loan crisis.

Its annual net loss is believed to be between 14.1 and 19.4 billion Swiss francs, according to estimates from Swiss financial news agency AWP.

The loss for the fourth quarter alone is expected to be between 5.9 billion and 7.5 billion Swiss francs for the bank, which has already written down about 46.9 billion dollars' worth of assets.

'The fourth quarter was clearly difficult for UBS,' a Deutsche Bank commentary said, adding however that removing 'toxic' non-liquid assets with help from the Swiss central bank along with restructuring efforts meant 'UBS has passed the worst'.

Customer confidence in the bank has in turn taken a hit, posing a major problem for UBS, which has hemorrhaged capital as a result. Customers pulled some 83.6 billion Swiss francs from the bank in the third quarter.

Under a rescue plan unveiled in October, the Swiss government injected 6.0 billion francs in new capital to UBS and lent US$54 billion ($80 billion) to the bank to transfer its non-liquid assets into a separate fund.

The massive spread of so-called 'toxic' assets - mainly linked to financial instruments now worth very little because of the US home-loan crisis - throughout the global banking system is at the core of the crisis since it broke in August of 2007.

The bank also said in January that it would slash more jobs from its trading unit, adding to 9,000 job reductions already announced over the past year. -AFP

 

[Hope]

The poof iz in de pooding....or the proff is in the 'fooling'? whichever, long term investments...when your grand children get marries & old man is long gone...you will get good returns from these banks investments. "nothing ventured, nothing gained"...

or the firoegn presses are lying...?
=====================================================

UBS to report historic loss

UBS' annual net loss is believed to be between 14.1 and 19.4 billion Swiss francs.-AFP

Sun, Feb 08, 2009
AFP

ZURICH, SWITZERLAND - SWITZERLAND'S largest bank, UBS, is expected to announce the biggest loss in the country's history when it releases on Tuesday its results for 2008, a year that saw the national icon tarnished by the subprime crisis.

But if there is a silver lining for the bank, which has been the target of a huge state rescue package, it lies in the fact that analysts say UBS has now hit bottom after its stock price fell 82 per cent since the summer of 2007.

For that reason, the loss of nearly 20 billion Swiss francs ($25 billion) the bank is expected to announce for 2008 on Tuesday should not surprise markets, analysts say.

'The bank has already publicised its problems to a large degree and the fall in the stock price should not be so large,' said a trader in Zurich.

Last November, UBS posted a net profit of 296 million Swiss francs for the third quarter following a year of losses, but warned that a renewed loss was looming for the following quarter.

The numbers expected to be unveiled Tuesday are staggering, reflecting the fact that UBS was one of the banks hardest hit by the US subprime loan crisis.

Its annual net loss is believed to be between 14.1 and 19.4 billion Swiss francs, according to estimates from Swiss financial news agency AWP.

The loss for the fourth quarter alone is expected to be between 5.9 billion and 7.5 billion Swiss francs for the bank, which has already written down about 46.9 billion dollars' worth of assets.

'The fourth quarter was clearly difficult for UBS,' a Deutsche Bank commentary said, adding however that removing 'toxic' non-liquid assets with help from the Swiss central bank along with restructuring efforts meant 'UBS has passed the worst'.

Customer confidence in the bank has in turn taken a hit, posing a major problem for UBS, which has hemorrhaged capital as a result. Customers pulled some 83.6 billion Swiss francs from the bank in the third quarter.

Under a rescue plan unveiled in October, the Swiss government injected 6.0 billion francs in new capital to UBS and lent US$54 billion ($80 billion) to the bank to transfer its non-liquid assets into a separate fund.

The massive spread of so-called 'toxic' assets - mainly linked to financial instruments now worth very little because of the US home-loan crisis - throughout the global banking system is at the core of the crisis since it broke in August of 2007.

The bank also said in January that it would slash more jobs from its trading unit, adding to 9,000 job reductions already announced over the past year. -AFP

Fucking hell,those Anh Mohs or whoever who sold their bank shares to Madam Ho Ching must all be laughing their ways to the banks-DEPOSIT only.

I believe strongly that it has been inside jobs,and the target was non-other than Madam Ho Ching.

Poor Madam Ho,she lost a fortune,I feel sad for her and for us.

 

[Adidas]

that is provided those banks do not close down.
but now looking at massive paper's lose.

 

[Merl Haggard]

Fucking hell,those Anh Mohs or whoever who sold their bank shares to Madam Ho Ching must all be laughing their ways to the banks-DEPOSIT only.

I believe strongly that it has been inside jobs,and the target was non-other than Madam Ho Ching.

Poor Madam Ho,she lost a fortune,I feel sad for her and for us.

The purchase of UBS has got nothing to do with Ho Ching, but LKY.

 

[Einfield]

Father in law defending daughter in law's screw ups, nepotism is making him less credible, doesn't matter if he is right or not.

 

[neddy]

Father in law defending daughter in law's screw ups, nepotism is making him less credible, doesn't matter if he is right or not.

Lee Kuan Yew has always practice double standard, just that people did not realise. I quitted Singapore too long ago. Is he still god in the peoples' eyes?

 

[snrcitizen]

Mr Lee explained: "When we invest, we are investing for 10, 15, 20 years. You may look as if you are making a big loss today, but you have not borrowed money to invest. You will ride the storm, the company recovers, your shares go up."

He can say all he wants right now, but he won't be around in 10,15, 20 years to answer when all the investments are into non-existent banks. Be careful of old men who promises you a rosy picture.

 

[depeche]

The Republic has not relied on borrowing to fund its investments cos they got their funding from our CPF and yet all these years the return on our interest is a mere 2.5%...now, they don't even allowed the withdrawal of our CPF...so no matter the investment is up or down...long term or short term, it just doesn't benefit we singaporean at all...

 

[neddy]

The Republic has not relied on borrowing to fund its investments cos they got their funding from our CPF and yet all these years the return on our interest is a mere 2.5%...now, they don't even allowed the withdrawal of our CPF...so no matter the investment is up or down...long term or short term, it just doesn't benefit we singaporean at all...

They need to have good credit ratings and accountability to borrow from outside. Moreover, they need to pay more for borrowing costs.

Lee Kuan Yew is not stupid, but he know Singaporeans, in general, will be taken in by him.

All these climate of fear surrounding him is like the virtual cages we put our pets in.

2.5% returns cannot even match inflation. Someone is keeping the rest of the returns.

 

[Merl Haggard]

He can say all he wants right now, but he won't be around in 10,15, 20 years to answer when all the investments are into non-existent banks. Be careful of old men who promises you a rosy picture.

Hi Comrade, this no-shamed old scum thinks he can still sell like the way he could during the 80's and earlier.

Ever wonder why he's trying so hard to defend G Aye See's disastrous acquisition? He's feeling so damn guilty!

G Aye See's recent decision to acquire US bank shares was none other than this senile old fart's!