Some Town Councils collected our S&C fee and invested in structured products like DBS high Notes, Lehman’s brother minibond, Jubilees notes and Morgan Stanley Pinnacles notes.
It was S$16 millions in total. (Another S$3 million in Pinnacles notes in danger of losing all)
And they were all worthless.
Zero.
It was this sum of money that we could not earn in our lifetime
And they just told us it was gone.
They went in with their eyes opened.
They have excellent learning, unlike the 62-year-old retirees with no primary education. They just like to have safe fixed deposit but were told to buy complex products that they were told it was principle-guarantee.
They did not know, but these people knew.
They knew what they were doing.
They also knew that high returns high risk too.
They read the fine print too.
And it was not just one person but many people involved.
But still they went in.
When things happened as it always, they blamed on others like our 158-year-old Lehman’s brother and low fixed deposits interest rate could not offset high inflation. But not themselves.
They told us that they did not expect it to collapse as it has AAA+ rating.
Like our trusted banks, they told you beautiful stories and sidetracked you the main point that they have made wrong decision and pushed all the blame.
When you owed them money, you will get fine for not paying.
When they lose your money, they needed not pay anything at all.
Not even a single cent.
Trust no more.
Monday, November 24, 2008
Monday, November 17, 2008
Love story II
Benchmark crude oil futures rose to almost US$155 per barrel in July but have since fallen to below US$60 four months later.
Back before July 2008, companies which expected oil prices to continue rising locked in three-month futures contract so that they can protect themselves.
They hedged their fuel cost by buying contracts for fuel at a predetermined price for future delivery and it helps them save millions when oil prices climb.
But when price drop, they have to book the unrealised losses on their account.
But not SP Services Ltd.
They have made the mistakes in locking the three-month future contracts in July for a price of US$155. They have bet the oil would continue on its upward climb.
However, oil began to plunge to US$100, and then US$60.
It was 100-120% drastic drop.
And they have made the wrong bet.
Instead of the helping consumer paying less for the electricity bills, we have to pay even higher bills for the wrong bet made by SP Powergrid.
They should book the unrealised losses and reported in their books.
But unfortunately it was not the case; they passed on the losses.
On the other hand, they book record profits.
And the top management got their fat bonuses, with our money.
Just like the Lehman brother’s minibonds.
They told you beautiful stories, showed the wonderful charts after charts, and explain points by points but did not mentioned that they have made a grave mistakes and this mistake will be undone by us, the consumers.
Trust no more.
Back before July 2008, companies which expected oil prices to continue rising locked in three-month futures contract so that they can protect themselves.
They hedged their fuel cost by buying contracts for fuel at a predetermined price for future delivery and it helps them save millions when oil prices climb.
But when price drop, they have to book the unrealised losses on their account.
But not SP Services Ltd.
They have made the mistakes in locking the three-month future contracts in July for a price of US$155. They have bet the oil would continue on its upward climb.
However, oil began to plunge to US$100, and then US$60.
It was 100-120% drastic drop.
And they have made the wrong bet.
Instead of the helping consumer paying less for the electricity bills, we have to pay even higher bills for the wrong bet made by SP Powergrid.
They should book the unrealised losses and reported in their books.
But unfortunately it was not the case; they passed on the losses.
On the other hand, they book record profits.
And the top management got their fat bonuses, with our money.
Just like the Lehman brother’s minibonds.
They told you beautiful stories, showed the wonderful charts after charts, and explain points by points but did not mentioned that they have made a grave mistakes and this mistake will be undone by us, the consumers.
Trust no more.
Wednesday, November 05, 2008
a lover's story
An investment bank had betrayed customer’s trust and cause financial tsunami.
And other banks and reminiscing films followed their unscrupulous ways and sold their products to vulnerable ordinary people like 62 years, primary school education retirees.
Like any other lovers, they swept your feet away with sweet words promising fantastic interest returns.
They spoke honey-words, brought you candle-light dinners, best French wines, good food, shopped for exquisite and expensive jewelries, stayed in luxurious hotels.
You signed the applications form blindly without perceives the tiniest fine print that anything happened; you will lose despite the capital guarantees.
Likes other profit-greedy companies, our most-trusted banks followed their footsteps.
Like any exotic things it comes fast and goes fast as well.
Like exotic names as minibonds, High five notes series.
When they collapsed, they placed their blame on other but themselves.
Like any lovers whom they made the girls pregnant, they told them the child was not theirs.
Like any lovers, they have betrayed their trust and caused you miserable, sorrow and heartbreaking.
Like any lovers, they ditched you with unborn child.
In this case, the child was a worthless paper.
Like any other pregnant mother, you have to fight on, bring justice to light and let the world see through his filthy, unclean and foul soul.
Trust no more.
Saturday, November 01, 2008
gloomy days ahead
already retrenchment has happened fast and furious.
watch out:
Gloomy days just started.
Subscribe to:
Posts (Atom)