Monday, 14 September 2015

Hands Dirtying Act

And here we thought that Najib is on swell terms with Goldman Sachs.

Maybe there is a pouting moment here, what’s with the whole controversy swirling around 1MDB and Goldman Sachs' role.

Anyway, I digress.

This is in relation to the supposed reactivation of govt equity investment firm , Valuecap, “to shore up the country's stock market”.

The amount – while certainly more than, urm, RM2.6 b – is pretty small when compared to the money pumped by the Chinese government to “prop up (its) plunging stock market.”

Of, course China’s equity market have tumbled like an unstable pack of cards line atop each other to start with.

Didn’t do much help and the bigger fear would then what if the government then decides to stop hoarding and pull out.

Our stock market have seen better days, but as is forever the economic cycle, there will be bulls and there will be bears.

So why the RM20b injection?

And where is this fund coming from?

Why the selected stocks and who decides?

At what point which Valuecap stop, urm, propping and starts selling again to recoup?

Or is there going to be no recoup?

Can Najib simply, simply take RM20b from the national coffers to pump into the share market which is supposed to be market driven without the Parliament's okay?

RM20b is not exactly peanuts and last generations.

Why is the govt getting its hand dirty again with such a commercialized move? Doesn’t 1MDB provide any experience on the folly of doing so?

Or are we missing a bigger picture here?

Not us, of course.

1 comment:

Anonymous said...

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