Re: GIC is sitting on a substantial loss close to US$7.4 billion on its UBS stake

Quote:

Originally Posted by terkan The problem with GIC and Temasek is that they are run by politicians who are misfits in the financial world because of their mindset. First thing politicians do is to push the blame away. Second thing is that they hide everything good or bad. In investment, objectivity is key. If you make a mistake, it is ok since there are risks involved in any investment. We must not hide the mistake and therefore take no action in case we are found out. Admit it and go for the next deal. The best traders are those who have lost and lost big but they come back to fight another day. Unfortunately, I feel the mindset of those who run GIC and Temasek is not appropriate. The results of these two agencies are tied to their political fortunes. This should not be the case. There must be separation between politics and managing our sovereign funds. Otherwise a good government can fall because of some unfortunate circumstance in the financial world. The government must give up their control of every little penny in our piggy bank and let the professionals do the job. They are elected on the belief they provide good governance and not because they are Wall Street whizzkids. On the other hand why should they be shunted away from national issues which are important and game changers in the lives of Singaporeans? Please rethink your philosophy.

Actually I think SGporeans should be trained to be more responsible with money, then govt dun need to manage CPF etc, bet on UBS Ponzi etc... in the future.

Yes, PAP's grip over GIC/ Temasek/ economy may win them some votes but this grip if a very very fragile one... pls remember, we are a sunny island surrounded by 200million Muslims. Whilst I've nothing against Islam in particular, I consider all religion a very powerful thing- like nuclear technology. Use it safely and responsibly and U have cheap 'clean', abundant electricity but we all know of outcomes of nuclear fission gone awry: Fukushima, Chernobyl, Hiroshima, Nagasaki. Such is its nature that we have to handle all religion with reverence and good faith.
Likewise we must not lax on transferring a significant proportion of our proceeds from 'recreational' gambling to religious scholarship and theological study. I understand that for lack of coordination and funds is one reason why the Indonesian rehab system for convicted terrorists just puts them all in one big jail only to create a more determined and united terrorist network upon their release.

Rather then spend exponentially upon further beautifying, defending and fortifying our 2 iconic casinos, Singapore must urgently position itself not a a sin city but as a Mecca of scholarship and charity where people of all religions can gather in peace.

Otherwise, MBS will only become a trophy target for any number misguided Muslims mired in technological illiteracy and economic poverty, the by-product of unregulated capitalistic expansion. (Victims of land grabs, illiteracy, corruption etc)

The example of any other religion can substitute Islam in the context of my description but I've made reference to it simply because that's the reality Singapore is in, Indonesia is the world's most populous Muslim country.

PS: I called UBS a Ponzi because whilst it splurges on Corporate relationships and the dressing up of its image, inadequate thought and funding probably went to internal financial controls. Did UBS really think that they would be making a killing by giving by allowing Mr Adoboli unlimited games at the international trading online 'casino'?

Reference:
- 'Rogue trader at UBS racks up S$2.48-billion loss': "UBS shares plummeted by 8 per cent to 10.07 Swiss francs late yesterday in Zurich... The share price plunge is bad news for GIC, which holds a 6.4-per-cent stake in the Swiss bank. Based on the last traded price, GIC is sitting on about 7 billion francs, or S$10 billion, in unrealized losses, even after taking into account the 2 billion francs it received on the coupon before its 2008 investment was converted to shares last year." [TDY, 16Sept2011][pict1][pict2] 

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24Sept2011: Re: GIC is sitting on a substantial loss close to US$7.4 billion on its UBS stake