Black September

This is perhaps once of the worst Septembers in my life. It’s been nothing more than one bad news after another.

Firstly, melamine contaminated dairy products in China caused harm to some 53,000 people. Some of that harm is permanent. I read that some babies will be subjected to kidney dialysis for the rest of their lives when they grow up. And this is not the first time we heard of Chinese food products that is hazardous to our health. Here are some other incidents I can actually remember:

  1. 2005 – My favorite canned fried dace with salted black beans was found to contain formaldehyde above acceptable levels. Frozen eel was also affected and for a period of time I noticed that many Japanese restaurants here in Singapore took everything with Unagi (eel) off their menus. (Formaldehyde is a preservative and embalming chemical that can cause cancer.)
  2. 2007 – Hong Kong’s Hygiene Authority detected chemical contents (nitrofurans metabolite) in Ma Ling’s canned luncheon meat. (Nitrofurans is a kind of drug derived from furan that is used to inhibit bacterial growth. Frequent ingestion of nitrofurans is poisonous and might even cause cancer or death.)

I felt so let down and disappointed because I grew up eating some of these Chinese food products. In fact, you can give me 5 cans of SPAM for the price of 1 can of Ma Ling Luncheon meat and I wouldn’t have traded it away. The reason being I have grown to love the familiar taste of some of these brand names and I felt sad because their products are now no longer available on the shelves in supermarkets.

Now, Chinese food products have become synonymous with ticking time bombs. You basically won’t know which one will be next. I am appalled and disgusted when I looked at the list of dairy products taken off the shelf here in Singapore.

White Rabbit Milk Candy too?! Damn those unscrupulous mainlanders who introduced this infernal substance into the milk. Is there nothing you would stop at just to make a few more quick bucks? Is getting rich so important for you that it doesn’t matter to you another fellow human being will be consuming this crap? Stop that bullshit about this being some kind of Western conspiracy simply because the same has been practiced in America or elsewhere… that argument is as good as it is safe to eat shit because you seen another animal ate it.

The Chinese consider years with the number ‘8’ are good because the pronunciation of the word ‘8’ in Chinese is almost the same as the word for striking it rich ‘发’. But to me that word also has the meaning of fungal Bloom in Cantonese [‘fatt mold’] which to me isn’t really a very good thing since you can’t eat your moldy stuff, can you?

I am convinced that my view of ‘8’ is the right one because in the past 10 years, both years ending with ‘8’ have been nothing but disasters. In 1998, there was the Asian Currency Meltdown. In 2008, we are confronted with this financial mess in the U.S. that has caused financial markets worldwide to fall as if down a bottomless pit!

Since early March this year when Bear Stearns went bust, one financial institution after another went belly up. Fannie Mae, Freddie Mac, Merrill Lynch, and Lehman Brothers. Even AIG, a famous insurance company, is threatened.

Now, investment banking is history in Wall Street – both JP Morgan and Morgan Stanley have become banks. But is this the end yet of the woes yet? Or is there really more to come? Just only a few days ago Wachovia was driven into the arms of Citibank and even now I read about the problem spreading to Europe. It makes one wonder at times if the light at the end of the tunnel is not actually an oncoming train. Just don’t be surprised that when you wake every other morning, you hear news about trillions of dollars wiped out in the financial markets overnight and yet another financial institution going bust.

If you think this doesn’t affect you, then you are terribly wrong. There is going to be lesser money moving around, or money is going to be moving around slower. Jobs are going to be lost because these financial institutions are going to cutback on spending. It is going to be harder to get loans and investments are going to fall which means that less new jobs are going to be available. Finally, if you have investments in unit trusts which you haven’t been looking at for awhile, don’t faint when you see that half of your money had been vaporised over the past 10 months!

I was thinking that it would be the last day of September 2008 would past uneventfully but it has one last ‘fxxk you’ for us all. The U.S. House of Representatives failed to pass the US$ 700-billion ‘bail-out’ bill and for us in Singapore, one of our main opposition figures, Mr. Joshua Benjamin Jeyaratnam passed away in the hours of the early morning.

Personally, I have seen Mr JBJ selling his party newspaper (when he was with the Workers’ Party) and then his books at either Raffles Place or the exit of the MRT near the Starbucks at Raffles City. It is to my eternal regret that I have never spoken to the man, though I did buy the WP papers off him when I was either a kid or a teenager.

There’s not much I could remember of the man, except the intensity in his eyes and that determined look on his face. While I have written my disagreement with his methods on some of my blog entries and also with some of the things he championed, I nevertheless respect the man’s tenacity and his ‘never give up, never say die’ attitude in doing what he believed is for the best for Singapore’s political landscape.

There will be some of us who will miss you, Mr Jeyaratnam. Rest in peace.

An Imagined Coffee Shop Conversation

Ah Beng met Ah Seng for breakfast this morning. One of the things spoken about was the failure of the U.S. House of Representatives to adopt a financial bailout plan and the crashing Asian stock markets.


Ah Beng: Ah Seng ar, got see the news or not? The USD 700-billion plan finished leow. They reject leh.

Ah Seng: Ya lah. The kanninah Republicans purposely one lah.

Ah Beng: Izzit?!

Ah Seng: You never read meh? The McCain say the Obama and Democrats dunno what shit ‘putting politics ahead of country’ . Say what this lao chabor Nancy Pelosi kong jiao wey then make the Republicans angry and voted against.

Ah Beng: Nancy Bo-loh-si? No screw? Tiang lai eh?!

Ah Seng: Simi no screw? Screw your backside then you know! Ask you read more papers never read. She the Democrat’s Speaker in the U.S. House of Representatives lor.

Ah Beng: Orh. Like that also can? Simi lan man, country going to die leow still like that? What she said man?

Ah Seng: Ya lor. This Republican assholes do asshole thing leow then say ‘I do lang jiao thing because all you lang jiao lang make me do one’ . Anyway, the Bo-loh-si say ‘this is the costs of the Bush administration’s failed economic policies’ lor.

Ah Beng: Diew.. that’s the facts what! Money anyhow spent go fight all these lan sai war in Iraq and simi ah-foo-han until bankrupt.

Ah Seng: Ya lor.. I also say.

Ah Beng: But Ah Seng ar… they doing good for their own people what. If not they vote for it then end up American people pay money to save the world. You ask me take my money save my neighbour I already don’t want already!

Ah Seng: Lan jiao, understand?! All along the rest of the world subsi-die the Ang-mo-ni-kans one. All these other countries like China and Japan buy their debts so they can enjoy life. Now got some of their people after enjoy life don’t wanna pay… like that you agree or not? Don’t let the chow angmoh bluff you man. If they don’t pay up you and I may also kenna because hor, some of our unit trust investments dunno got buy their stupid debt or not.

Ah Beng: Nabeh.. macam like eat leow don’t wanna pay!

Ah Seng: Ya lor. But this is actually called raising debt to pay debt.

Ah Beng: Har? Liak boh kiew leh.

Ah Seng: Nabeh… I explain to you. For example, I borrow $1000 from you at interest $50 a month for 10 years. Then as long as I pay the $50 interest a month to service the loan will always remain $1000 mah. But half way I no more money even to service the loan… so I go and borrow $3000 now from Ah Lian to pay the interest. Later 10 years up leow, I go and borrow from Ah Hway to pay your $1000 at another interest rate. You say like that can pay finish or not?

Ah Beng: Jialat man… $1000 debt become… wah I math fail bway hel lah… But then where all that money go?

Ah Seng: Wah lan eh! Why other chow ah beng so smart you so kamlan one? Use your blain lah. Because I spend all the money go tour, buy car buy house, chiong KTV and kio kway and enjoy life lor. Sometimes I buy new parang go bia jwee with Hussein, go and kaypoh in Ah Tiong’s family business, or purposely make other people family quarrel and break up also need money what. All that F-22 and aircraft carriers you think no need money to pay? Go everywhere beat people up and how lian show off also need money what!

Ah Beng: Ya lor these kanna sai Ang-mo-ni-kan, always go everywhere kaypoh and ya ya papaya. Now then I know they take our backside as face skin go and show off.

Ah Seng: But the Ang-mo-ni-kan people dunno lah. They will be not happy because they think they are using their money to save the world when their country already so much problem.

Ah Beng: Diew man. Clinton balanced the budget… but almost kenna impeached for a BJ. Hopefully he got a BBBJ man. Anyway why this ceebai Bush screw up big time kenna nothing? Should impeach him man.

Ah Seng: I also like that say. After impeach leow should also trial him for war crimes at the Hague too. Hundreds of thousands of Iraqis boh dai boh zee die because of this.

Ah Beng: * looks at watch * Ya… hey man I gotta go for work leow. Tomorrow same time same place, ok?

Ah Seng: Ok man. I better rush too… our MRT more and more world class. World class packed. Bye!


2008 Financial Crisis

Bear Stearns, Fannie Mae, Freddie Mac, Merrill Lynch, Lehman Brothers, AIG… and coming up next – Morgan Stanley.

We are in one hell of a big financial mess and it appears nothing is safe from it. And what can we do about it? Nothing, abso-fxxking-lutely nothing.

Since there’s no use worrying, let’s have a laugh!

AIA: Damage Control

Working in a bank has certain privileges and one of them including getting access to financial news before the others. I heard about problems with AIG on Monday morning, along with Merill Lynch getting sold to the Bank of America (with Temasek Holdings allegedly making some US$5 a share or so on paper value from that) and Lehman Brothers filing for bankruptcy.

Sadly, while I have such news about the turmoils in the financial market, the shortcoming is that I become completely blind as far as local news is concerned. I didn’t know there was a long queue of concerned policy owners down at AIA branches today even though I am pondering if I should start liquidating some of my investment plans to save whatever that’s left of my investments.

When I reached home today, I found this in my mailbox from my agent – an attempt to do some damage control to the situation.

Dear policy holder,

AIA assures all policyholders that it is able to meet all the obligations to policyholders. We would like to refer you to three articles published today in The Straits Times, Business Times and Lianhe Zaobao.

Quoted from The Straits Times

“When Contacted, the Monetary Authority of Singapore said yesterday that AIA Singapore is required under the Insurance Act and Regulations to maintain sufficient financial resources to meet all its liabilities to policyholders at all times. AIA currently meets these regulatory requirements. MAS will continue to monitor the financial position of AIA”

Quoted from The Business Times

” In Singapore, BT understands that AIA , as with other insurers here, maintains separate insurance funds for policies. Any sub-prime losses that may be borne by AIG at the group level are understood to have no impact on Singapore policyholders.”

While it is all good that the MAS has assured us that our investments are safe, and in spite of the fact that I worked in a bank, I wondered if that the MAS has real time monitoring over AIA financial status to be sure that AIA could pay up if they are required to liquidate their assets to pay us all. The reason of my concern is that in spite of MAS stringent requirements, Mitsui Oil (Asia) Pte. Ltd still managed to lose $81 million when a 35-year-old trader had falsified data since spring to cover up the losses.

Being complete clueless as to how these regulatory requirements are enforced, I wondered if MAS has now already moving in to audit AIA Singapore. Otherwise, with what can we be assured that everything will be alright? Thus I am two-minded as to what I should do about my policies. On one hand, I felt that if I start cashing out, then it would make AIA’s collapse a self-fulfilling prophecy, since when enough people withdraw their money, then it is possible that AIA would suffer some cash-flow issues. On the other hand, I am unwilling to risk what I have remaining in there, with the possibility of losing even more and even all of my money in these investments.

I think all I can do now is pray to God that the MAS’ assurance will be good.


Included: * Newspaper cutting from Zaobao