Temasek sells BoA stake

Posted: Sat May 16, 2009 9:49 am Post subject: Temasek sells BoA stake

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Temasek would have lost in the region of a total of US$5Billion in this venture.

Recalled that there were comments that the previous leader was commended to have brought value and huge contribution to Temasek and Singapore. How do you reconcile this now?

This loss dwarfs the economic package to pull singapore around and infact any other major projects as far as I can recall.

Can those in charge please come and explain this and how if it will impact ordinary Singaporeans like their CPF etc. plus whose head is going to roll for this or is this another of those "honest" mistakes.

Posted: Sat May 16, 2009 7:28 pm Post subject:

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i recalled that a few months back, when the citi, merril lynch, etc crashed, it was reported that temasek might have lost a few tens of billions. and then the govt came out and defended that these are long term investment...up to 15 years or more. so why sell now and loose our hard earned money ?

Posted: Sat May 16, 2009 9:14 pm Post subject:

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Are we going to continue to act dumb? Time and again, our money gone down the drain. Money which is due for us for retirement is deferred over and over again.

It is time ppl should not be so dumb by acting decisively in your constituency when the time comes. For goodness sake, don't use trivial matters such as lift upgrading for decision making. It just make us look stupid in the eyes of our neighbours, such as Malaysia, Indonesia and Thailand.

If ppl don't act smart and bold, then nobody in this world going to help us. Are we going to follow the path of Junta country where ppl has to flee to neighbouring countries to look for a living while the junta drinking XO and Cognac brandy like water.

Posted: Sat May 16, 2009 11:14 pm Post subject:

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The problem has almost always been that non-conformist views from non SG sanctioned think tanks are not taken (seriously) when making decisions. Besides, rewarding those who make decisions (irregardless of merit/profit consideration(s)) when making deals/proposals etc should not be condoned. These people should only be rewarded for their efforts when their decisions result in increased net profit (and improved competitiveness) without (majorly) negatively affecting the livelihood of Singaporeans.

Anyway, the probability of Singapore taking no action to "recoup" the losses is negligible. Therefore, expect the cost of living to go up as well as other measures designed to generate/extract more revenue (e.g: CPF limit or CPF withdrawal age to go up, increased GST/bus/taxi/mrt/petrol/edcation etc costs). Singaporeans would be pleasantly surprised if Singapore's cost of living drops (instead of increment).

Posted: Mon May 18, 2009 1:41 pm Post subject:

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Temasek Holding had lost 2 IR to the US, what to do let face it? i envy people going to reach 60, at least they still have some leftover for them in the CPF.

By the time i reach 60, everything will be different. I wonder will our CPF like the Japanese Pension Fund or the US Security Assurance fund being (misuse) squeeze till the last drop. By then I will get nothing from my CPF account.

Can i stop contribute to the CPF?

Posted: Mon May 18, 2009 1:59 pm Post subject:

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Hmm... i'm beginning to doubt the think tank in Temasek... are they really top notch or worst than the 5th grader?

Lehman Brother can fall i can understand... but BOA... if this giant bank falls... i think the fall of US as a country is not far behind... Since Temasek has already suffer such a huge paper loss... why not wait for it to recover especially after a frenzy plunge in equity which bound to have a technical rebound...?

Posted: Wed May 20, 2009 6:56 am Post subject:

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To be fair, no one could predict it...no one in the investment community. So why are you so quick to shoot our own guys when things don't look good! In investment is like in business, is about how well you do relative to the market.

The only ones that made money were the short funds...

Posted: Wed May 20, 2009 9:55 am Post subject:

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What's the use of having billions of dollars in our reserve when people managed it lost billions in investments?

Singaporeans work so hard for years and contributed to this huge reserve and we lost few billions so easily in a matter of months.

Posted: Wed May 20, 2009 5:25 pm Post subject:

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guys,

its an honest mistake.. lets move on..

Posted: Wed May 20, 2009 11:23 pm Post subject:

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Singapore is well known for cautiousness and pragmatism. Before it buys a combat plane it went thru rigorous process 3 to 5 years before it buys it.
When people offer you something on a plater and so eagerly, any seasoned people would be able to smell a rat miles away. Mind you, these people are men of worldly experience, some are ex-ministers and some current ones. Yet, they invested Singapore hard-earned money on a whim and lost billions.
In China, they would have being executed by firing squard but here in Singapore, they are still enjoying million dollars salary.
In commercial world, heads will roll like ten pins.
In USA, they have the decency to resign or force to quit.
Here, they behave as if nothing has happened.
Here, they have audacity to charge Durai for his mischief but I am sure if the authority wants to dig, they will find some monkeys are up to some mischief-makers and causation.

Posted: Thu May 21, 2009 12:00 am Post subject:

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When a top gun is involved, it is an honest mistake but when a small fry makes a silly mistake, he is given a walking certificate like staff involved in Selamat escapade. To me, he makes an honest mistake by trusting Selamat. Would you buy it? Of course not!
Anyway, an honest person would never indulge in complicated, shaddy and risky deals as it goes against his nature.
A mistake is a mistake. no question about it.
When I was working government service, I did make mistakes and were punished for them in spite of quoting my favourite phrase in all myexplanation:
"To err is human and to forgive is divine" No divine intervention was fore-coming.

Old Man Harry, then it seems that you don't much about investments....loss of money does not always mean professional mistake, lack of knowledge or competency. The decision is made with the information available at the time. Investment is not "make money" but "win money" because every $ earned, someone loses it. Do you see investment bankers, brokers, fund managers in China being executed by firing squard? or being punished in any other way around the world except for having their bonus cut???

Investment is part art, part science...it is about how many more times you get right and earn money than lose money. Not about zero losses.

Posted: Thu May 21, 2009 8:16 am Post subject:

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I thought I heard someone saying buying into American banks was a long term investment.

Why let go at loss now? Long Term? WT....

I truly believed them when they said long term investment as it made perfect sense, but now... ai...

They are sure going to get back what they've lost thru the usual way... from the citizens... one way or the other.

Posted: Thu May 21, 2009 1:38 pm Post subject:

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Bank of America’s shares up 74% after Temasek sold its stake.

Could it be that the real reason for BOA's troubles is "Temasek"'s leader's bad luck or bad judgment?
Buy A, A's previous owner kuna kick out due to a coup, but B, B close shop etc etc

Posted: Thu May 21, 2009 3:28 pm Post subject:

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Sad. it's either "we go in too early"....or " we sold to early"..... what happen to the super brains we are supposed to have running our government corporations.?

Posted: Thu May 21, 2009 11:52 pm Post subject:

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I agree I dont care or know much about investment. I do know it is a form of legal gamble, buying of shares is another form of gambling although you may beg to differ.
You may try to disguise investment as a form of art and science, but in actual fact it speculative gambling like placing your bet football.
Just like football bettings, you need an element of luck and speculative skill and how many times you get right.
What I find hard to stomache is that these worldly experience investment specialists could be conned into investing billions of hard-earned money, saved over a long time, without firstly do a due deligent study of banks concerned. They based their judgment on banks' past reputation.
I was surprised at the speed of the decision.
If your friends always driving RR cars and living in prime bungalows, suddenly pop up at your humble HDB door step to ask for loans or investments to pop up their finance, don't you smell a rat?
There should be accountability irrespective of whether the decision is made by humble Ah Kow or mighty minister. If you made the wrong decision, you should have the moral courage to be counted and punished. Take resonsibility for your action and not hookwink the public by claiming it is long term invetsment when you off-loaded it within a year at a loss.
I do know of a case in China where the poor guy was packed off to heaven for investing his provincial money in speculative shares and properties, resulting a great loss.
In any case, the ex-boss of China Aviation Oil or whatever its name, was packed off to jail for his wrong speculative investment.
Just like a football coach, if your team always lose your game you will be sacked as happened in the English Leauge.
NO DOUBLE STANDARD!

Posted: Fri May 22, 2009 7:42 pm Post subject:

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Another way of looking at investment is doing BUSINESS. You buy an asset from someone then sell it to another person at higher price and make money. If you choose your asset or goods wrongly, then you lose money. Simple. Its just business.

You can also add value by buying then change the business and resell at higher price...like Lone Star. Just different way of doing business.

Posted: Fri May 22, 2009 8:54 pm Post subject:

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The way the transactions opened and then closed abruptly, it is no different from those old aunties and uncles in the hawker centres buy and sell shares - buy high sell low - and end up with lots of debts and loan sharks chasing after them.

Only difference is in the value of the money lost.

Frankly , I am confident I can do a much better job than these people. All my investments are in tact, I have not sold out during the down turn, and have accumulated more when near the bottom.

Shame , Temasek, really Shame.

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