Give a reply

I find a common experience of sending an e-mail to a friend or to a business contact, and do not receive a reply. I know that they had received it, because they reply when a send a reminder or a follow up reminder. They do not reply because they do not know how to respond, or the request was not clear, or do not have the complete information. It is almost like talking to someone, who does not talk back - just kept silent. Is this the right way to respond? What is a better way?

Learning to use a tablet

We are accustomed to a keyboard and a mouse. The touchscreen on a tablet replaces both of these accessories. This is why the tablet (such as the iPad) is so popular for people on the move.

I used the iPad during my trip to Sri Lanka and Jakarta. I bought a local data card. I was able to serve the Internet and use Google maps. It is light and convenient. It was able to avoid the use of old accessories - that was troublesome to carry around.

I look forward to a system of wifi connection that allows the tablet to be used in many places, without the troublesome registration, login and payment. It should be as seemless as the use of the data card.

Immigration forms

When I enter most countries, I have to fill up an detailed immigration form. It contains a lot of information that are taken from my passport.

At the immigration counter, I have to submit my passport to be scanned. All the information are now collected through electronic means.

Why is it necessary for me to spend a lot of time to fill up the information into the immigration form?

I also have to fill up a custom declaration form. I suspect that the form is not being used.

These immigration requirements were created over 20 years ago, in the days before the the electronic scanning of passports. After new technology was introduced, they could be discontinued or modified, but this was not done. Why? Nobody cares. After all, the burden is on the public.

There are a few countries that have taken the simple but bold step to stop the use of the immigration form - Dubai and the European unions. Some other countries have simplified the form considerably, e.g. Australia.

Perhaps, it is time for Singapore to take up this issue with the Asean countries? A good step is to simplify the form, by removing the non-essential information.

Supply and demand for property

Many people in Singapore believed that property prices will never fall in Singapore, due to our limited land and strong economy. They should take into account another important factor - demand for the land. Right now, we are enjoying strong demand from foreigners working in Singapore. But this demand can fall, when there is a global recession. At that time, there will be an over-supply of property and prices will fall. When prices fall, it can take a long time to recover. http://www.cnbc.com//id/45477559

Ultrabook

I like the Ultrabook - as it is light and have a full keyboard. It could be better than the iPad. http://money.cnn.com/2011/11/28/technology/ultrabooks/index.htm?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29

Flexible and separate currency

Should a country have a separate currency that can be made flexible? My personal view is "yes". Here is an article that argue in favour of the same outcome.
http://newasiarepublic.com/?p=34890

Student concession fares on public transport

I watched the episode on the student concession fares with much interest. The poly students have asked to be given concession fares, similar to what was granted for junior college students. The disabled have also asked to be given the concessions. Even the Young PAP, which is the activist part of the party that forms the Government, has to speak at Speakers' Corner.

This episode highlights the fallacy of the Government in avoiding responsibility to govern. They prefer to let such matters be decided by the market. After privatizing the public transport, they decided that matters of fares and concessions should be decided by the public transport operators - or maybe the Public Transport Council has some say (I am not sure)!

The transport operators know the answer - maximize the profits, so they avoid having to give concessions, unless they have to. Their argument is that any concessions have to be borne by the full fare paying public, but this is not really true, as it can also be borne by reducing the shareholder's profits. This is really a political question - which cannot be dealt with by the free market. So, it is back to the Government to do the duty that they are elected to do.

I wish to extend this reasoning to many other sectors of our public life. We cannot let matters be left to the market. The Government has to step in and take the political decisions for our society, including setting laws and rules of proper behavior. If they fail in their duty, our society must surely decline.

Tan Kin Lian


  

Loss of title deeds

Dear Mr. Tan,
I agree with you that advertising lost title deed is unnecessary and a waste of time and money, as I have a similiar experience sometime ago. After all how many people bother to read the classified advertisements in the papers.

The reply they have you in the Straits Times forum page today shows that this government is inflexible in their policy. The public needs someone like you to change their thinking.  Keep it up!

 

REPLY 

I have sent a follow up reply to the Straits Times and to the Land Office. Please write to the Straits Times and give your views as well.

Mobile app - to find your car

I have developed an app to help me locate my car. It is a simple app that allows me to take photo of the pillar to identify my car and also the lift lobby. I used it at Camden Medical Center. Although it has a small car park on 2 basement floors, it seemed unnecessary for me to use this app - but I tested it anyway.

After my dental appointment, I went to basement 1 to look for my car. Somehow, the car park looked different from what I expected. I could not locate the car after walking around the car park. I thought that I might have parked my car in B2.

I looked at the photos in my app. It confirmed that my car was on B1. I also saw the photo of a large sign where my car was parked (which I had forgotten). I found my car quite easily.

The app works like a photographic memory. I did not realize that it could be quite useful, even in a small car park. It is also easy to use.  It is also possible to use the camera app that comes with your mobile phone, but a special app to find the car is easier to use and more targeted. This app will be realized in Apple App Store in December.

Law of contract

Consumers may be subject to unfair contract terms. It is important to know consumer rights under the law of contract. An explanation can be found in FISCA website. http://easyapps.sg/assn/Org/Staff1/Information.aspx

A good dentist

I have a tooth ache and saw a dentist at T32 clinic at Camden Medical Center. The dentist was diligent in identifying the source of the pain, with the aid of technology. He explained the problem and discussed two possible solutions. He recommended the lower cost approach to see if it works, before exploring a more serious treatment later. He spent time to educate the patient and also to find the best solution. I had expected to pay a high fee but was surprised that the actual fee was much lower. He is a good example of a professional who looks after the interest of the patient and charges fairly.

Damage caused by currency fluctuation

Here is a good example of the damage caused by currency fluctuation. It is difficult for a business to make long term plans that affect investments and employment of workers.

http://www.cnbc.com//id/45431195

It takes a few years to plan and set up a factory and a longer period to recover the investments. The profitability of this business depends on predictability of the revenue and cost. If the cost can fluctuate wildly due to currency rates, it will be difficult for any business to invest.

It is a good idea to have floating exchange rates to reflect the economic fundamentals of a country. However, the wild swings, caused by large speculators such as hedge funds, are causing tremendous damages, beyond their useful purpose. There must be some way of preventing these big speculations. Perhaps, the proposal to impose a financial trading tax will be useful. Apart from preventing the wild speculation, it will also raise revenue for the government.

Risk of investing overseas

I read a newspaper article about a British mining company having a dispute with an Indonesian company on a joint venture after discovering coal in their land. This incident shows the risk of investing overseas, where the law may not be clear and the partner may not be reliable (and I am not referring to this specific incident).

The same risk applies to a small investor who wishes to buy shares and properties overseas. You may be subject to risks and other expenses that you are not aware of. It is better to invest in local shares (and let them take care of investing overseas). At least, you know what the law in your own country.

There is still the risk that the management of the company that you have invested in, may be venturing overseas and be subject to the same type of risks. At least, they are better equipped to handle these legal and other issues - compared to an individual. In the same vein, it is better to avoid companies that are venturing overseas, without the experience. I have read stories of big listed companies involved in million dollar disputes over contracts with foreign parties.

Labor unrest in China

Factories are cutting the overtime that workers depend on to supplement their modest base salaries, after a drop in overseas orders.

According to CLB, the average basic wage for electronic workers is about RMB1,500 ($236) a month, but rises to RMB2,500 with overtime. “Their basic wage is never enough on its own without overtime,” Mr Crothall said.

http://www.cnbc.com//id/45422953 


My comment: The cost of living should be in line with wages. It is risky to ask a worker to depend on overtime work (which depends on global growth) to earn enough to pay the bills. If the cost of living is kept within control, this type of risky situation should not arise. The greed of the rich is pushing up the cost of living - and this is happening all over the world!

Difficult to operate a small business

Dear Mr Tan,
I am just starting a new business of importing some baby products. I have done some market research and was intending to send a proposal to NTUC Fairprice to consider. Can you advice - is this the right way to go about doing it?

I have also seen in some forums, it is not easy as a new comer who has no connection or do not know anyone inside beforehand. I really hope you could share with me how I should approach them? Or who should I contact?

REPLY
Three years ago, I approached Fairprice to sell some of my products. They required me to pay a joining fee of $1,000 and to go through quite troublesome procedures. They also want to take a big cut from the sales amount and require me to handle the delivery to all their outlets and collect back the unsold stock. I abandoned the idea. (Note: connection does not count -as I knew the managers. Only money count!).

It is not easy to sell products to these big retailers. They want to charge you a lot of money before you make the first dollar. Their payment terms are also quite bad. (I had to wait one year before collecting payment for the sale of my books though a book distributor!).

If you wish to go into this business, make sure that it is a big business, otherwise, the costs will kill the business.

Currency speculation cause damage to the economy

This article explains the damage that currency speculation is causing to the economy of many countries. The speculation is being promoted by the financial sector, i.e. the hedge funds, banks and other financial institutions. It is time to find ways to stop the harmful speculation.

http://singaporemind.blogspot.com/2011/11/world-of-wild-fiat-currency.html

Population and public transport

Alex Au has written a good article. I like the point about feeder service taking 15 minutes to arrive. This is the weak point of our transport system. He also question about the need to increase our population to 6 million. I agree that we should not increase the population, as Singapore is already too crowded and the facilities are inadequate.

http://yawningbread.wordpress.com/2011/11/24/additional-public-transport-capacity-hard-to-estimate-benefit/

Visit to Sri Lanka

I have just returned from a 5 day trip to Sri Lanka. I went to Kegalle and Kandy and also took a tour of Colombo (apart from attending an insurance conference). It was a nice experience for me, to enjoy the warm hospitality and friendliness of the people of Sri Lanka.

My return flight on Sri Lankan Airlines was delayed by 10 hours. They put me up at a beach hotel quite close to the airport. Although it was inconvenient to be delayed so long, I had the chance to experience a short holiday at the beach, and to learn about the livelihood of the people in the village, which caters mainly to tourist.

Should the Euro break up?

Several experts have said that the Euro has to be broken up and some countries, like Greece,should issue their own currency. How will this help to solve the debt crisis in Greece?

Greece now issue government bonds in Euro. Because of the risk of insolvency, the interest rate on these bonds have shot up. If Greece were to leave the Euro zone and issue their bonds in their own currency, i.e. the Drachma, the interest rate will be even higher as the investors have to face the risk of default and depreciation in the currency.

How will having their own currency help the Greek government? I have an interesting observation. The Greek government is not able to collect sufficient tax revenue to pay their expenses - e.g. due to tax evasion. They can continue to fund their deficit with debt in their currency. The interest rate will shoot up and the currency will depreciate over time. The depreciation in the currency is a way of lowering the standard of living for the people, who are living beyond their means. It is also an indirect way of taxation.

High inflation has its other negative impacts but this is a separate matter. It seems to be a good idea for each country to have its own currency, rather than to join a strong currency like the Euro.

There was a similar situation during the Asian Financial crisis. The currencies of several Asian countries were pegged to the US dollar. As this was unsustainable, the pegs were broken, leading to quite severe damage. After the currencies were unpegged, they were able to adjust to their right level and their economy regained their strength.

It looks like the Euro will have to break up.

Banks Accused of ‘Dishonesty’ on Reform

Bankers’ efforts to water down tougher new regulations by claiming they will harm economic growth are “intellectually dishonest and potentially damaging” and could inspire an even more robust crackdown, a leading UK regulator has warned.

“A profession which should stand for integrity and prudence now supports a lobbying strategy that exploits misunderstanding and fear,” said Robert Jenkins, who was named in July to the 11-member Financial Policy Committee, a new body charged with protecting financial stability.

“Banks can strengthen their balance sheets without harming the economy. They can do so by cutting bonuses, by curtailing intra-financial risk-taking and by raising term debt and equity,” he said.

http://www.cnbc.com/id/45412860

My comments: These are strong words, but I agree with the views expressed by Robert Jenkins. Actually, I prefer that commercial banks should return to their core functions of payments and loans, and should not be speculating in the markets.

Governance without guilt

I saw the phrase "Governance without Guilt" used in the Colombo newspaper. It refers to the concept that governance (of the country and business corporation) should be done ethically, i.e. without guilt. I also saw the phrase used for the garment industry, i.e. "Garment without Guilt". This is the Sri Lanka response to the greed and corruption that is now quite prevalent in the business and government sectors.

Unhappy with Singaporean Airlines

I met a Singaporean at the lounge in the hotel in Colombo. He had been travelling first and business class on Singapore Airlines for 20 years. Recently, he gave up on Singapore Airlines and now travelled on Asiana Airlines (from Korea). He was disappointed with using the new SIA website. He also found the counter service (often manned by foreigners) to be unsatisfactory. He now lived in Hong Kong as a permanent resident and travel around Asia for his business. 

Bank charges and anti-trust law

The attempt by some banks to impose debit card charges might violate the anti-trust law, as the banks and the associations might be acting in collusion. http://money.cnn.com/2011/11/22/news/economy/banks_antitrust_review/index.htm?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29

In Singapore, we have the Competition Law, which has similar functions to the anti-trust law in America. I hope that our regulators will also look at the practices of banks, telcos and airlines in Singapore - as they are likely to follow the practices in America.

I prefer an environment where a business charge a package fee for its service and avoid making additional charges for additional items that should be part of the package. By imposing extra charges, the business is making life more complicated for its customers and also adding to the administrative costs. Often, the customers are not aware of the additional fees and are held under ransom - when they need the additional services.

The practice of charging additional fees has promoted a law-maker in the USA to introduce legislation to prevent some of the bad practices. While this legislation is not likely to be supported, due to the strong industry lobby, it goes to show the bad business practices.

http://money.cnn.com/2011/11/22/news/companies/baggage_fees/index.htm?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29

Investing in the stock market

Retail investors have been avoiding the stock market due to uncertainty, but corporations are buying back their own shares, as they represent good value. http://www.cnbc.com/id/45402485

Be educated on financial matters

I received a few requests from consumers asking for my views about specific insurance policies that they are considering. I asked them to attend the financial planning workshop to be held on Saturday 26 November. Details can be found here:
http://easyapps.sg/assn/Org/Event.aspx?id=5

I also asked them to read this document:
http://tankinlian.com/admin/file.aspx?id=444

Living with your parents after college

Hi Tan,
We posted an article that we thought you and your readers might be interested in having a look at, “10 Financial Benefits of Living With Your Parents After College” (http://www.businesscreditcards.com/bootstrapper/10-financial-benefits-of-living-with-your-parents-after-college/). Just thought I'd let you know that you would be interested in featuring or mentioning it in your blog.

Tips on Financial Risk Management

Read these tips to get an idea about the important risks that you have to take care of, and how to make the right decisions.


http://tankinlian.com/admin/file.aspx?id=595&PK=6a384d176546102f919ef4fa093d18bf

Medical records on Picasa

I found a good way to store my medical records that may need to be retrieved in the future. I took photos and uploaded them into Picasa. Here is an example of my spectacle prescription that is stored in this manner:

https://picasaweb.google.com/114697964702306407039/SpectaclePrescription?authkey=Gv1sRgCLnN1YLjtrvQTQ#5676484064970023762

I want to encourage people to keep their medical record on Picasa by taking and uploading the photos. This may come in handy, when they need to refer to another doctor needs to see their old medical records.

Google Maps and iPad

On arrival at Colombo Airport, I bought a pre-paid data card for my iPad. It was a great decision. I was able to use Google Maps during my visit to Kandy and also around Colombo. Google Map tells me where I am at any time (using GPS) and allows me to look at the buildings and roads nearby. I was also able to use Internet connection at any place. Steve Jobs had done a great service to mankind in developing the iPhone and iPad and the Maps from Google are also great!

Selling agents

Contributed by Anthony Hobrow


I had an unsolicited telephone call on my mobile from an Indian outfit purporting to represent HSBC, offering me a loan and/or overdraft facility on great terms. Terms that got instantly much better when I said ”no”! I refused to give my details until I had checked these people out with the bank itself. So I emailed my bank and asked if they were genuine agents; I did this in my interests and in the interests of the bank.


The emailed response I got, 3 days later, was “All banks in general engaged 3rd parties to cross sell their credit products. HSBC does so as well. However I am not sure if Efusion Solutions is one of them, as these are arrangement set up by other departments. “


A wholly disgraceful response. (Nb It subsequently turns out that Efusion is a genuine agent).
Always check out unsolicited calls before revealing any personal details.


Anthony Hobrow
Direct Asia

Logic Challenge

How good is your logic? Try these puzzles: http://tankinlian.com/admin/file.aspx?id=379
More of these puzzles can be found here: http://projects.easyapps.sg/iShop/public/common/File.aspx?file=45
You can buy the book at www.tankinlian.com/ishop

Manage your personal risks

Dear Mr.Tan,

I would like to seek your professional advice on getting the coverage. What happen is because my company's insurance has a maximum claim of only $3000.

As this is too little coverage, I thought of getting additional coverage myself.  Please advise what is adequate and which is the cheapest plan.

REPLY

How old are you?

How much are you earning now?

Are you in good health?

You should attend this workshop and learn how to manage your personal risk

http://easyapps.sg/assn/Org/Event.aspx?id=5 

Medical insurance is just one of the risk. There are more important risk for you to take care of.

Cinnamon Lakeside Hotel, Colombo

I am staying at the Cinnamon Lakeside Hotel. The service is excellent. The staff are knowledgeable and helpful. It is the best service that I have experienced in a hotel. Here are some photos of the view from the balcony overlooking Cinnamon Lake and of the breadfast at the executive lounge of the hotel.

I tried Kiri Bath, which is rice baked with coconut. It was delicious.

I had to connect three devices to the wifi network of the hotel. The I.T. staff came to my room to allow the multi-access. He was knowledgeable and got all of them working soon. He also told me what the issue was and how he solved them.He logged into his server to allow access to the 3 devices.

Make better use of natural resources

During the past two decades, we have been over-consuming our natural resources. We extract the mineral resources at low prices and used the low wages in developing economies of Asia to manufacture products at low prices. The prices are so low that it is better to buy and throw away, rather than repair them, when they become faulty. We neglect to count the cost of disposal, and dispose products in a manner that damages the environment.

The days of low prices is probably over. We now see ballooning prices for mineral oil, gold, silver and other commodities. Food prices are escalating.  Wages are also escalating in many countries are also moving up. The flood in Thailand, tsunami in Japan and other natural disasters are reducing supply and jacking up costs.

The days of cheap manufactured products are over. We have to get used to more expensive products and have to use them more carefully. We have to change our wasteful habits. This education process has to start with our young people, as they are brought up in a wasteful environment.

Make your own flexible annuity

This article explains that you can get a higher annuity when you buy it at a time when interest rate is high. But, the problem is that you do not know whether interest rate will go higher or will fall. So, you may be waiting for a long time.

http://money.cnn.com/2011/11/17/pf/expert/annuity/index.htm?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29

A better way is to have a flexible annuity that you build on your own. This is explained in my Financial Planning workshop that is held on 26 November 2011.

http://easyapps.sg/assn/Org/Event.aspx?id=5

Colombo, Sri Lanka

I will be in Colombo, Sri Lanka for the next five days to attend a conference and also to take a holiday. I am staying at the Cinnamon Lakeside Hotel. The staff are polite and helpful. This is the best service that I have experience in my years of travelling.

Tips on life insurance coverage

A young man asked me, "How much life insurance do I need and what type of policy to buy?" The answer can be found here: http://tankinlian.com/admin/file.aspx?id=589

The world’s local bank... but I wish it wasn’t!

Contributed by Anthony Hobrow


I am trying to get my partner a joint bank account with me and a credit card. This will take two weeks the bank says. BUT worse is that the bank regards this as a new relationship requiring another minimum holding of S$200,000. This is for a customer who has been loyal to this bank for 43 years!! So if I complied I would have S$400,000 on deposit with this bank, earning almost zero interest. Luckily I had my London branch manager fix it for me and I have not had to do the deposits. I am not sure it is good that this bank is the world’s local bank – it seems to me they are hugely better in London than here in Singapore. Ten days on and I still don’t have the new cards or accounts!!


They even told me I couldn’t change my relationship manager unless I started a new account. Believe me, we have no relationship and a fresh start with someone new is in the interests of both me and the bank!


Anthony Hobrow
Direct Asia

How to buy Term Insurance

Enquiry: 
Hi Mr. Tan, I am so happy to find your blog where provides me some good advises for buying insurance. I know that you suggest people to buy "term" and invest " ETF". I agree with your points to do so. However I found it is not easy to find " guaranteed renewal term" policies. Can you please advise. 


REPLY
Read this FAQ

http://tankinlian.com/Admin/File.aspx?id=56

Cheating - as defined in the Penal Code of Singapore

Cheating – Whoever, by deceiving any person, fraudulently or dishonestly induces the person so deceived to deliver any property to any person, or to consent that any person shall retain any property, or intentionally induces the person so deceived to do or omit to do anything which he or she would not do or omit if he or she were not so deceived, and which act or omission causes or is likely to cause damage or harm to that person in body, mind, reputation or property, is said to "cheat".For example, A cheats if he intentionally deceives Z into a belief that A means to repay any money that Z may lend to him when A does not intend to repay it, and thereby dishonestly induces Z to lend him money.Cheating is punished with imprisonment of up to one year, or a fine, or both.

Cheating is a crime and action has to be taken by the state, i.e. it is not a civil matter. If a person deceives another person and receives money from the victim, the person is committing the crime of "cheating".

If a forex trainer claims that his technique is guaranteed to make money, and the representations are false, the trainer is deceiving the students and can be charged for the crime of "cheating" them of the fees that are being paid.

Effect of Deduction

Hi Mr Tan.
I am signing a policy soon. But I don't understand what the effect of deduction is. It's a AXA policy called INSPIRE FLEXI 2. After reading your blog, I tried to do the calculation but am more puzzled. Attached are the 3 pages of the illustrations. I hope that you can advise me.

REPLY
The Effect of Deduction is the amount taken away from your future savings. You can see that this is a large amount. Why are you investing in a life insurance policy when so much is being taken away?

It is better for you to invest on your own, e.g. in the STI ETF, as advised in my book. You can buy term insurance for your life insurance protection. Please read my books for a better understanding on this matter. www.tankinlian.com/ishop

You can also attend the FISCA talk on 26 Nov 2011 - register here: http://easyapps.sg/assn/Org/Event.aspx?id=5

In the meantime, you should not take up the life insurance policy, especially as you do not understand these important matters.

Ask Mr. Tan

I have received question from readers of my blog on life insurance and financial planning. I usually ask them to read my books which are available from www.tankinlian.com/ishop. Often, the answers can be found in these books. In the future, I will ask them to make a donation of $200 to FISCA, before I look into their question.

Higher business costs

I met the owner of a chain of coffee shops. He told me that his business is being squeezed by higher rentals and shortage of manpower. His employees keep resigning, as they can get better wages elsewhere, after the government clamped down on the work passes. He feels the pressure of squeezed margins.

I said that to look at this matter in a different perspective. The higher rentals and wages apply to all of his competitors, and does not hit him alone. So, the higher costs will have to be translated into higher retail prices for his products. As long as he is more efficient that his competitors - and he is selling this coffee and breakfast at lower prices - he will be able to do well. People will still need breakfast and coffee, so they will continue to patronize his outlets, even after he has adjusted his prices to cope with the higher costs.

Higher prices are bad for the consumers - but this has to be solved at the government level - to moderate the rentals for business outlets. It is good for wages to be adjusted upwards, as the workers need to earn enough to feed their family.

I welcome the move by the government to build more markets at HDB estates - and hope that these outlets will be rented at non-tender prices. If they are at moderate levels, it will help to moderate the rentals in the private sector as well.

Flexible Pensions

The state pension systems adopted in many advanced countries are now in deficit, due to ballooning cost and under-funding. This does not mean that the pension system is inferior to the provident fund system (such as the Central Provident Fund operated in Singapore). The provident fund system also has its pitfalls.

The key weakness of the pension system is its rigidity. It aims to pay the pension in predetermined amounts when asset values and economic conditions can fluctuate significantly. A better solution, which has not been tried, is to have flexible pensions, i.e. the amounts will be changed according to the underlying value of the assets. This type of flexible values are already embodied in mutual fund investments and can be applied to make pension payments flexible and keep the system solvent over the long term.

There are two key advantages in the pension system. First, it provides for pooling of investments over the long term, by professional fund managers. This is much better than allowing the retirees to take out their provident fund savings to invest on their own - as most lay people cannot manage their own investments.

The second benefit is the pooling of longevity risks. Those who die younger draw out less, and allows the pension fund to pay the pensions to those who live longer.

The fear about insolvent pension schemes can be addressed by building in the flexibility to the pension payments.  In good economic times, the pensions can be bigger. In bad times, they can be smaller. The pensioner can cope with fluctuating pension amounts (provided that the adjustments are modest and made every six months). When they receive a smaller payment during an economic downturn, the cost of living will probably be lower - so the smaller pension payments may still be adequate.

It is time for Singapore to convert CPF Life into a flexible pension scheme and to make it attractive for retirees to invest their savings (other than the CPF minimum sum) in a sound pension scheme.

FISCA Financial Planning Workshop - 26 Nov 2011

The next FISCA financial planning workshop is available for registration now at http://easyapps.sg/assn/Org/Event.aspx?id=5
The last workshop was well received. Here are two feedbacks:

Ong:  I think the seminar is very relevant especially for young people who have recently joined the job market. It can really help make good investment decisions and avoid pitfalls that could ruin people's lives. The talks on Financial Planning today were both interesting and enlightening. Mr Tan Kin Lian's delivery is frank and very helpful, especially in understanding financial planning and  insurance policies. Kindly keep me inform of his future talks.

Najmi: Thank you for such an informative session earlier. I thoroughly enjoyed it and learnt a lot from you and Mr Ling today.  

One participant sent an e-mail to all his friends to recommend that they attend the workshop.

Rates of GST

Here are the current rates of GST adopted in various countries:

Australia 10%
Canada 5%
Hong Kong (abandoned)
India (to be introduced in 2012, rate not decided)
New Zealand 15%
Singapore 7%
Germany 19%
Japan 7%
Sweden 25%
UK 20%

I am not able to draw any conclusion on this matter. I dislike GST and prefer the government revenue to come from income tax. But, it seemed that many countries are implementing GST.

My view: In Singapore's case, there is no need to have GST as the government collects a lot of revenue on sale of land and vehicle tax. Furthermore, welfare benefits in Singapore is quite low. We are in a similar situation as Hong Kong, which does not have GST. 

Inefficient and bureaucratic bank process

Contributed by Anthony Hobrow

Banking in Singapore leaves me frustrated at every turn. I am not sure how much is the fault of the bank and how much is detailed regulation by MAS but the end result is a system where there appears to be no authority granted to the front line, excessive paperwork and very long process times. It is not the same in London.

With the same international bank I can get an overdraft facility in one short phone call. Here it has taken paperwork and two weeks! I even had to provide copy payslips when the bank has access to every receipt and payment in my account in UK and in Singapore and has access to 40 years of my banking history!! What possible purpose can a payslip serve?

I needed a new credit card as my card failed sometimes to work when I was travelling. In UK this would have been couriered next day to wherever I was. Singapore could not send me a new card. I had to be with a faulty card until the end of my trip and then collect a new one when I got back. BUT the worst thing was they cancelled my old card and took the account off the internet banking facility, before I had the new one! The card was not lost or stolen, just worn and intermittently didn’t swipe well.

Anthony Hobrow
Direct Asia

Mortgage insurer in big deficit

It seems that there will be extremely difficult times ahead for the USA. The Federal Housing Agency insures the mortgages on many homes. They are facing a big deficit and need to be bailed out by the Government. Wow! http://www.cnbc.com//id/45305350

If we look at the problem of the housing market in the USA, the lesson is that property prices should not be allowed to go up too high - as it will eventually have to burst. A good benchmark in the past is that property prices should be 3 years of the average income of the main bread winner (and excludes the income of the spouse). The USA has allowed the property prices to go up under a deregulated environment - and is now suffering the pain of adjustment.

The situation in Singapore is worse, as our property prices - in relation to the average income - is worse than USA. It is now being propped up by foreign buying - but we cannot count on this source of support for a long time. (Note: Dubai was in a similar situation with its property market at a high level due to foreign funds, but it has now burst.)
  

Bank failed to get customers to accept fees

JP Morgan Chase has to give up the trial on several bank fees, due to non-acceptance by its customers:
http://money.cnn.com/2011/11/15/pf/chase_bank_fees/index.htm?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29

Pension and provident fund

There is a difference between the operations of a pension fund and a provident fund. A pension fund promises fixed benefits to the pensioners and may face a deficit when the value of its assets fall below its obligations. This is explained here: http://www.cnbc.com//id/45307724

In a provident fund, the amount due to the members vary according to the value of the assets. If the assets earn a low yield, the interest credited can be quite small and may fall below the rate of inflation. The members have to bear the fluctuations of the market.

I am personally in favor of a provident fund system, as it is better for the risks to be spread among its members, rather than in the government. But, it is also important that the provident fund be invested efficiently to earn a market rate of return for its members, and the administration expenses, including the cost of managing the investments, be kept at a low level (which is possible due to the economy of scale).

The Central Provident Fund in Singapore started on the right track, but over the years, it has grown to be too complicated. It is time to move back to its basics.

Better to have small businesses

A good economic system has many small businesses that compete in the market to offer good service at a transparent price. You can see many good examples in the retail trade, food and in hair dressing, tailoring and other personal services.

Large businesses are needed for manufacturing, but the distribution can be done through small retailers. This is the model for the sale of household and electronic products.

It should be possible for banking services to be operated by small banks who can serve the customers in the community for banking services. There is no need for each bank to develop an expensive computer system, as they can tap into a common system, similar to the arrangement where the Singapore Exchange provide a centralized service to the stockbrokers.

The argument that we need big banks to be able to afford the investment in computer system to operate efficiently is flawed. It has led to large banks increasing their profits to excessive levels, by charging high fees to customers, and also engaging in risky trading. We now have the situation of "too big to fail" when banks make big losses on their large bets - which has to happen from time to time.  We need to make banks smaller, so that they can be subject to the discipline of the market. See http://www.cnbc.com//id/45307122

There is a similarity with the operations of large transport and telephone companies. There is a similar argument that they need to be large to afford the investment in the infrastructure. It is easy for these large businesses to abuse their pricing power to make big profits. A better approach is for the infrastructure to be developed and owned by the state and rented out to the service providers.

The current business model in many countries, including Singapore, favors big businesses, but it also leads to excessive profit margins for these businesses - leading to higher cost for consumers. We need to have a new economic and business model for the future.

Scam - invest in gold bars

This is a way for the scammer to mark up the price of the gold bar by 23%, without the investor realizing it. The scammer distracts the investors by offering a complicated structure of interest payment, buy back guarantee and delivery of the physical gold bar. The investor overlooked checking the real price of gold. http://tankinlian.com/admin/file.aspx?id=186

Live trading account shows profit

There were a few comments about a particular forex trainer who was able to impress the audience with a live trading account that showed profit. If I want to deceive people, I can also show a live trading account that shows profit for the previous day, and I can do it on any day. How do I do this impressive show? Make a guess. It is not difficult - for people who knows how to perform magic!

Positive experience with online website

I have made online bookings with a few airlines. My best experience is with Sri Lanka Airlines. Their website is simple. I completed the online booking with little effort and quite quickly. They focused on what needed to be done, and did not distract the customer with options that are not really needed.

Simplify and make life better

I have quoted a few examples about how things are being done in Singapore that lead to a stressful life ,  unnecessary work and expenses. They are caused by blind adherence to rules, disregard for the trouble caused to the other party and excessive focus on security (even for small amounts or risks). I have also suggested some practical ways to simplify these processes for the benefit of the customers and the staff.

We should be ready to ask "Can we simplify the way that things can be done, to make life easier for all?" I like to ask my readers to help identify other issues and suggest how they can be simplified.

Bank fees

Banks are adding new fees and increasing existing fees to boost their profits. This is happening in America and is likely to be implemented in Singapore in the future.

http://www.cnbc.com//id/45286104

Difficulty with booking an air ticket

I booked a ticket with JetStar. Their website is slow and buggy, so it was quite a hassle to make a booking. They offer many complicated and unnecessary choices - which are meant to give additional marketing revenue, but increased the difficulty of using the website.

After going through the hassle of selecting the itinery and the seats, I had to make payment. I painfully entered the details of my credit card (as MAS refused to allow the airline to store the credit card details) and confirmed the payment. I had next to wait to receive a verification code sent to the mobile phone. When it arrived (after some delay), I entered the verification code. There was a long wait and finally the website went blank. I clicked on another webpage and found that the payment was not processed - as the verification code had expired.

I went through the pain of making another booking. This time, it was rejected as it was a "duplicate booking". I am unable to recall the previous booking, so I deleted the original booking and make a new booking.
My third booking was  rejected as a "duplicate booking". So, I am now caught in limbo and don't know what to do. I searched for the hotline of Jetstar and could not find it.

I draw this conclusion - the website designers try to put in too many options, which made the process complicated. MAS comes in to impose requirements in the name of security, but no one looks at the whole process and think about simplifying the process for the consumer.

Creating hassle

I wrote a cheque for ABC Property for $1,000. There was a mistake in the name - as it should be ABC Properties. The bank refused to bank in the cheque. They refused to call me to verify if I had intended it to be for ABC Properties. They just returned the cheque for correction.  It had to be sent to the payee who has to mail it to me. And I have to mail it back.

Wow - this is Singapore! All this hassle for a relatively small sum. The bank is so rigid and so unthinking; the staff prefer to avoid responsibility and stick to the rules blindly. Do you wonder why life is so stressful and costly in Singapore? The reason is found all over the place!

Difficulty with Open Net

I had a lot of difficulty with Open Net. A few months ago, they sent me a letter asking to arrange for installation of Open Net in my home. I responded.

Their engineers were not able to install the line. There was some problem that involved the PUB. I do not understand what the problem was. The matter was not attended for four months.

This morning, I called the hotline of Open Net to find out the status. I made many calls over two hours. Their automated system keeps saying "all our lines are busy". Busy - the whole morning? No indication on when they are able to take my call? I wonder if they really have any staff answering the phone calls!

This type of bad service is quite common with many organisations in Singapore - government agencies and businesses. I suspect that they created so much hassle with their regulations and procedures that they staff are not able to cope with the calls for assistance.

Let me relate my experience with a telco in Cambodia. They may be less advanced in their infrastructure, but they have much better service on their call centers. When I was placed on hold, the message was ... "you are placed 5th in the queue". This keeps reducing on each announcement. I did not have to wait long to be served.

How an expatriate avoided mis-selling by his bank

Dear Mr. Tan,

Soon after I moved to Singapore I was offered an investment product from one of the world’s largest banks. It purported to guarantee me a return about four times higher than the then interest rate on deposits. I asked what the risk was and how the product worked; clearly there was risk – the bank was not going to pay me all that return for nothing. The bank representative was totally unable to explain the product or the risk and just ended up saying “well a lot of my customers bought it and they never asked me questions like you do”!! All I can say is more fool them if they bought without understanding. It was a gamble by the way on the movements between two currencies. As for the Bank..well to be mis-selling in this age of increased regulation and supposed consumer protection is indeed staggering.

Golden rules. If you don’t understand the product; don’t buy. If salespeople cannot explain a product in simple, clear language, devoid of jargon, then they don’t understand it; don’t buy. If it sounds too good to be true; don’t buy.

Anthony Hobrow
Direct Asia

Blind adherence to rules

I am worried about several negative aspects of the Singapore mindset. One is the blind adherence to rules. We follow rules blindly and are not prepared to make exceptions, even when the consequence is negligible and helps to remove stress for other people.

Recently, I have to make the final payment for the purchase of my office. I have to apply for a cashier order (i.e. the vendor's lawyer will not accept my company's cheque). I also have to visit my lawyer's office with the company stamp and with the secretary to sign the documents in front of the lawyer. Why are all these requirements necessary? The roads were congested and there were insufficient parking space in the lawyer's office - so this requirement adds to the hassle and the cost.

The lawyer's assistant checked the cashier order thoroughly and found that the amount was short by 2 cents. Sorry, the cashier order cannot be accepted. She called the lawyer for the vendor who said that the amount has to be exact. I was asked to apply for another cashier order and to make another appointment to finalise the formalities. I lost my temper.

Finally, they agreed to take my 10 cents in coin to make up the difference. This will save me the cost of another cashier order (I don't know how much I am being fleeced) and a lot of money and hassle to make another trip.

I have seen so many examples of blind adherence to rules in Singapore. I am worried for the future of our country.

Playing with fire

Banks are supposed to do an honest business by taking money from depositors and lending them to businesses at a higher interest rate and to make profits from the spread in interest rate, less the operating expenses. To make profit, they have to work hard, provide good service to their customers, work efficiently and earn an honest profit.

But, the banks found an easier way to make super profits. During an economic slowdown, when savers are risk averse and accept negligible interest rate, the banks used the money to speculate in all types of asset classes - housing, forex and government debts. It seemed so easy to make money, especially on government debt which was considered to be "safe". They can make a good margin on lending money to the government to earn a high interest rate - better than the money lent to businesses.

But,governments can become insolvent. We now have a situation where the government of several European countries are not able to repay their debts and found it difficult to refinance their short term borrowings. This is the crisis in Greece and possibly Italy. When these governments cannot repay their debts, the European banks that bought their debts get into financial difficulty, causing a potential banking crisis.

http://financialedge.investopedia.com/financial-edge/1111/How-PIIGS-Defaults-Could-Affect-The-Markets.aspx?partner=ntu11#ixzz1dFm08zM8DISCLAIMER:

Banks should be required to go back to their traditional business of handling payments and giving loans to small businesses. They should not be speculators in asset classes, including government debts. These asset classes should be invested by mutual funds.

Bright Sudoku - qualify to be a Sudoka master

Do you qualify to be a Sudoku master? You can practice Sudoku and move up the grades, starting from white belt up to black belt (grade 7) and finally red belt (grade 8). This app available now on the Nokia platform and will soon be available on the Apple platform (iPhone & iPad). Watch this video:
http://www.youtube.com/watch?v=BHCU9YfYkCE

Getting people to enrol for Forex training course

Dear Mr. Tan,
I heard from a friend who went his preview about how X (a forex trainer) slashed and reduced course price to attract people to join his course. My friend felt X was treating the audience like clowns. He mentioned X slashed the price until around $300. While everyone was running to the back to sign up, he then finish writing $300 per month, and not just $300.


I have attended other seminars before and I think it is normal, but not to the extent of not finish writing to somehow cheat people. Most people would just state their actual course fee was (example) $20k, slashed to $10k, $5k, eventually $2.5k to make people think they are having great deals (not just Forex).


Regarding the (named removed) website, I saw people complaining about him writing $X amount per month installment which added up to be more than the course fees. I believe it was 0% interest just like most schools are doing now. After searching around online for feedbacks, I felt many people are complaining about him that he is more of a motivational speaker and sales person than a trainer. I watched some videos of his and I felt too.


Hopefully people could be more caution before signing up for courses.

Staged accidents

A staged accident is created by a syndicate involving a criminal workshop. The workshop boss arranged for an accomplice to drive on the expressway and brake suddenly, causing the following vehicle to crash into its rear. Another accomplice will appear quickly with a tow truck to bring the accident vehicles for repair. This will be followed by a big repair bill for the vehicle in front (which belonged to the syndicate).

This type of staged accidents had been happening for many years, but nobody bothered to take any action. One day, the driver of the following vehicle was the son or a prominent politician. He related the matter to his father who brought up the matter to the authority. This caused the authority to take action. For the next few days, there were big stories in the media and the term "staged accidents" was coined. There was a furor, because this was considered to be reckless driving.

This happened in a certain country about 10 years ago. Guess the name of this country, where nobody takes action until it involves an important person's family member?

Unethical forex magic trick

Dear Mr Tan,
I strongly suspect that (name removed) is performing an unethnical forex magic trick to lure gullible students to sign up for his forex courses. Please see one of his video (link removed). He probably have an accomplice behind the scene to feed him the calls for long or short. His accomplice may be somewhere else having access to the chart on the screen and signal long or short call by simply calling his handphone. One on his left pocket and the other on his right pocket.

I am a forex trader myself and i am very sure this is a scam. Please help to unweed this unscrupulous forex school before more gullible students fall into the trap.

Re-admission to Universal Studio

The rules of Universal Studio Singapore said that "for same day admission, you must present the Studio admission ticket and hand stamp for re-entry".

I recall visiting the theme parks in America where they recognize the hand stamp (or similar tags). They do not require the admission ticket to be shown as well. I wonder if this reflects the peculiar  requirements in Singapore - where it is usual to add to the hassle for customers?

Benchmark for housing prices

An American told me that 30 years ago, the banks will give a mortgage to the borrower to buy a house for not more 3 years of the income of the breadwinner (and the income of the working spouse is disregarded). The bank also required the borrower to make a down-payment of 10% for the house.

If this rule is applied in Singapore today, the average price of a 4 room HDB flat should be $120,000 (assuming an average income of the breadwinner to be $40,000).

The price of HDB flat that is being charged is about 3 times of this benchmark - and a 4 room HDB flat is considered to be quite modest, compared to a typical house with a land in America. (See http://en.wikipedia.org/wiki/Public_housing_in_Singapore)

This shows how costly are HDB flats in Singapore - and they are considered as "public housing". No wonder, both parents have to work and they still do not have enough money for retirement. The housing is far too expensive.

HDB flats are getting smaller and more expensive

This is an interesting perspective told by Lucky Tan

http://singaporemind.blogspot.com/2011/11/smaller-flats-doesnt-mean-lower-quality.html

MF Global Singapore clients

Mr Tan,

Your reader might be interested in this news.

http://www.themalaysianinsider.com/business/article/nearly-half-of-mf-global-singapore-client-monies-held-abroad/

 SK

My views
It is better for Singapore investors to keep their accounts with local brokerages, rather than foreign brokerages, due to this type of problem. The local brokerages are more likely to keep their money in Singapore. Even though the client's monies are kept outside Singapore, I believe that they belong to the clients and should be returned to the liquidators on demand. I don' think that the foreign banks or other institutions have the right to reject the request of the liquidators to return the monies. But, it seems that international finance is getting very complicated and risky.

Role of government in regulation

I read this interesting story about the problems faced by the regulators on regulating neutrality on the Internet http://tech.fortune.cnn.com/2011/11/11/what-next-for-net-neutrality/?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29

It is clear that there is a need for a neutral party, i.e. the regulator, to set the rules to ensure a level playing field for all the parties, and for consumers to have access to unbiased information. But the big businesses are challenging the role of the regulators, using their lobbyists and lawyers and will bring the matter up to the Federal Courts.

America has clearly gone too far down the road in letting the businesses have their way. Their economy is collapsing, and is now being propped up by massive debts. It is likely to lead to dire consequences.

The US government has failed to govern. I am worried that Singapore may be in a similar situation.

Danger to the world economy when growth stalls

Quote from Mohd El-Erian of Pimco, manager of the world's largest bond fund.


"The concept of stall speed is not something that's familiar to the markets," he said. "That's what I find is terrifying. We can talk about the probability of recession when unemployment is already too high, when the financial deficit is 9 percent of (gross domestic product), when interest rates are already at zero percent and when a quarter of the homeowners are already underwater on their mortgages. That is a terrifying concept. That is why everything must be done to avoid a slowdown in growth."


http://www.cnbc.com//id/45253864

Interest rate on bank deposits

Which bank offers the best interest rate on fixed deposits in Singapore? The lowest interest rate for 12 month deposit is 0.075% (less than 0.1%) and the highest is 0.625% (less than 1%).
Find out from FISCA website, http://easyapps.sg/assn/Org/Information.aspx?id=5

Should you invest in foreign currency to earn a higher interest rate? Here are the tips. Remember to consider the cost of coversion from Singapore dollar to the foreign currency and converting back. After considering this cost, and considering that the interest rate is so low, it is not worth investing in foreign currency. Read this:
http://tankinlian.com/Admin/File.aspx?id=91&PK=49eface4e1da102d8bb0a4b0889554e4

Managing your retirement savings

This article give a useful explanation on how to manage your retirement savings and point out to some financial calculators on the Internet that you can use.

http://money.cnn.com/2011/11/10/pf/expert/retirement_withdrawal_strategies/index.htm?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29

Occupy Wall Street - the issues

1. "#OWS is fighting back against the corrosive power of major banks and multinational corporations over the democratic process, and the role of Wall Street in creating an economic collapse that has caused the greatest recession in generations." It goes on: "The movement is inspired by popular uprisings in Egypt and Tunisia, and aims to expose how the richest 1% of people are writing the rules of an unfair global economy that is foreclosing on our future."


2. Our current capital markets are structured around a dangerous lie -- that the sole function of the corporation is to return value to shareholders. Under this construct, every action undertaken by Wall Street traders, mortgage brokers and the rest make perfect sense and are morally unambiguous. It was their job to sell as much as they could, to grab as much value as possible, in order to return that value to shareholders. So long as shareholder-value-maximization remains our governing principle, no change in regulations will change the fundamental behavior. Executives are simply acting according to their incentives.


http://management.fortune.cnn.com/2011/11/09/what-occupy-wall-street-got-right/?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29

Itialy is too big to bail

The problem for Italy and the global financial system is serious.

http://money.cnn.com/2011/11/09/news/international/italy_crisis_bail/index.htm?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29

IMF chief - world risk "lost decade"

Quote: "Our sense is that if we do not act boldly and if we do not act together, the economy around the world runs the risk of downward spiral of uncertainty, financial instability and potential collapse of global demand... we could run the risk of what some commentators are already calling the lost decade." 


http://www.cnbc.com//id/45217763

Instant Photos

I need 2 color photos for a visa application. I went to the instant photo booth at SMU. The charge was $8. It seemed to be rather high. I wonder how the students could afford it. It seemed to be more costly that I had expected.

Americans move accounts to credit unions

Many Americans are unhappy with recent increase in bank fees that they move their accounts to credit unions.

http://money.cnn.com/2011/11/08/pf/credit_union_switch/index.htm?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29

Here are some of the reasons:

http://money.cnn.com/galleries/2011/pf/1111/gallery.move_your_money/index.html?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29

High prices in Singapore

I went to the Challenger Store to look a laser presentation remote device. They should me a few Targus models costing more than $120 each. This was rather expensive, as my friend told me that he bought a device for less than $30 in Sim Lim Square.

I went online to search for this item. A few Targus controllers were offered at Amazon store at around USD 50 (excluding shipping). This seemed to be at about half of the price charged by Challenger. I finally decided to buy another brand and paid less than $20 including delivery charges.

This episode seems to show that prices are really expensive in Singapore! It must be due to the high rental and staff cost.

Forex trading - developing the skill

Here are some tips on how you can develop your skills in forex trading, without having to pay high fees to attend a course. It also warns you that trading is like gambling, similar to visiting a casino. But it can be fun.

http://tankinlian.com/admin/file.aspx?id=594&PK=576c64ff5af6102f8aebde1ae83d78a1

Settlement without admitting wrong-doing

If big banks get to settle with the SEC without admitting or denying any wrongdoing, what good does a settlement do in the end?

By Eleanor Bloxham, CEO of The Value Alliance and Corporate Governance Alliance

FORTUNE -- To admit or deny -- that is the question -- or one of them anyway, that the SEC will have to address when they respond to Judge Jed S. Rakoff's review of the regulator's recent settlement with Citigroup. Although Citi has agreed to pay $285 million and make minor reforms, the bank is neither admitting nor denying that they failed to properly disclose the risks of mortgage-related investments to clients in the run up to the housing crisis.

http://management.fortune.cnn.com/2011/11/07/big-bank-sec-settlements-toothless-face-savers/?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29

My comment: At least this is one step better than Singapore, where wrong doings go unchallenged - due to lack of regulatory action.

Warren Buffet and stocks

Warren Buffet is confident about investing in US stocks during the current global uncertainty. He takes a long term perspective.

http://money.cnn.com/2011/11/07/markets/buffett_stocks/index.htm?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29

Here is the fundamental to back his optimism. Profit of companies are at a record level.

http://www.cnbc.com//id/45195111

Customers move to credit unions

Quote:

NEW YORK (CNNMoney) -- Credit unions and small banks say they've seen big jumps in new account openings thanks to this weekend's "Move Your Money" and "Bank Transfer Day" initiatives, but do the big banks even care?

Digital Federal Credit Union, the largest credit union in New England with 330,000 total members, welcomed 133 new members on Saturday. That's 56% higher than the average 85 account openings it sees on a typical Saturday.

http://money.cnn.com/2011/11/07/pf/move_your_money_day/index.htm?section=money_topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29

Note: Credit unions are member based organisations, like the cooperative societies in Singapore, that provide basic services to members, including savings and loans.