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.

The Disgustingly New, Normal

Are we seeing the so called new normal with regards the Ringgit vis-à-vis the major currencies?

I hope not especially since we are so looking forward to an overseas trip early next year.

Still some time to pray that the current levels are not “the new normal”, Amin.

Anyway, to continue on my light ranting: the weakened Ringgit will push the comic book price up summore.

Out soon. Can't wait.

Sheesh.

How I wish I am working and earning in Singaporean Dollar where this is concern.

Imagine getting Brian K. Vaughan’s acclaimed “Saga” - the compilation la – for less than 25 units of the currency.

(I’m using this NOT in relation to 1MDB’s “Units, just units” ya. Please.)

Here, you’re paying something like 80 or thereabout units per volume.

Imagine if both you and your Singaporean comic geek counterpart is earning the same amount of units in monthly salary of say 3,500 units – a realistic figure for a slightly experience junior staff.

That would mean if you happen to the whole set currently available – Volumes 1 to 4 (5 is out soon, Yay!) – you’re gonna be spending 9.15% of your monthly salary while the dude across the Causeway spends 2.86% of his.

Crossing over use to make some sense those days of the old  normal (is there such a word?) as even converted, comic books prices are still on the lowish side compared to buying over here.

Unless Borders / Kinokuniya go the Big Bad Wolf Super Duper Sale’s route, that is.

Now, the cost differentials from conversion is almost equal or worse.

Every now and then, I continue re-reading my old, loose issues, comic and you can still see the price tags – I’ve gotten copies at RM1.80 and RM2.50 mint - pasted on the covers.

Ooh, I so hate this new normal thingy.

WTF! @ Crash Boom Bang

These must really be desperate times for our government.

The latest bomb is a The Edge report that an EPF-led consortium is close to buying three parcels of prime land in the Klang Valley.

Producing verbatim snippets here:
“204 acres of land near Jalan Cochrane, Kuala Lumpur. It reported that the provident fund was also the favourite to buy two parcels of land at Rubber Research Institute in Sg Buloh and Jalan Ampang.

According to The Malaysian Insider, property consultants have valued the land in Ampang at between RM150 and RM250 per sq ft (psf), the land in Jalan Cochrane at RM100 to RM200 psf, and the site in Sg Buloh at RM8 to RM12 psf.”

My maths isn’t that good and I might get things wrong here but a guestimate for such an adventure of acquiring Jalan Cochrane alone would cost the EPF led Consortium a hefty RM888.6 million at the lower price or RM1.78 billion at the higher price.

That’s a whole lot of our money to be spent.

I remember the DPM’s statement on the above sometime back and in my mind names like YTL, YNH, Sime, SP Setia, Mah Sing (to name a few) came up as the possible contenders to snap up these prime zones.

These housing Juggernauts are after all well equipped to profit when the good times returns.

I have never been more wrong in my life.

EPF yet again. ValueCap’s injection is still ringing in our ears.

Just like the suspicions cast by many of grubby hands wanting a dip in IJN’s cash reserves, the EPF is - for the umpteenth times - THE honey bowl of which everyone - even those in the streets, that's you and me – want to desperately open up.

Never mind that its our "Simpanan Hari Tua".

Hence the reduction in our monthly contributions: where despite public assertions that many would want to maintain was still forced upon us with silly administrative procedures.

Sometimes its justified for parents to dip into their children’s saving during rainy days, but it is utterly reprehensible to eye the savings as the MAIN option, and especially when the net effect does not in any way benefit the family as a whole.

Pray tell how this move to acquire prime land would benefit the Rakyat?

Does it mean that EPF would sell off the land to a third party?

But at what cost? The additional premium would surely put off any buyers who would probably rather be a first hand purchaser for such transactions to make business sense.

Would they develop it themselves, then?

EPF; in the property business. It’s highly risky, especially since even our giants in the housing sectors seem to be taking things easy for the time being.

And this is despite some having ample liquidity in their accounting.

Just like the IJN piratisation - (ahem.. excuse me) I mean - privatization, move, this doesn’t make sense.

Except for this: The national coffer is empty.

A worst-case scenario whichever way you look at it.

Crash Boom Bang.

Do say a prayer.

Latte Swirly

Just how big a hole have the smart alecks of Wall Street dug for the world to refill?

Looking at the figures being asked as (ahem!) bailout from the US Treasury Department is really a surreal experience:

AIG: US$150 billion (supplementing an earlier USS$85 billion)

Nine US banks: US$125 billion

GM, Ford and Chrysler: US$50 billion (on top of US$25 billion earlier)

Freddie Mac and Fannie Mae: (not stated, but both are sitting on US$5.3 trillion worth of mortgage which probably had lost much of their value)

Had Treasury Secretary Henry Paulson (ahem) injected funds into investment bank Bear Stearns and Merrill Lynch after they got into trouble, it would have been another US$395 billion and US$44 billion respectively.

Then there’s the so-called stimulus package that’s the highlight in this country and Japan and China at US$1.95 billion, US$51 billion and US$586 billion in recent times. The US stimulus bill is set at US$700 billion and some news analysts are saying that it won’t be enough .

Note: Ours was by far the cheapest stimulus package and whether or not that would help the country would be seen next year; the year EVERYONE is saying will be much worse than this year.

Exports are down, as the Americans and the Europeans are no longer buying items they do not really need that much.

A sure sign of how bad things are is that latte lovers are forgoing Starbuck’s for the cheaper brands, the French are having lunch at McDonald’s and Americans are throwing into the dustbin all offers for credit.

Just what is happening to the world's finance and how did we let it get THIS bad?

Back at home, though, everything seems handy dandy so much so that a 10 to 20 cents reduction at the Mamak restaurant makes front page !

Pop quiz (said in the deadpan manner ala Keanu Reeves): How many 20 cents coins do we need to fill the hole that seems to be sucking the world’s confidence in the economy?

Don’t bother answering, though.

If the bests minds in the world cannot fathom just how deep the shit we’re in, the rest of us might as well just sleep over it and carry on the best we can.

And, yeah, enjoy the 10 cents less for tomorrow’s roti canai and tea tarik, and 20 cents for Nasi Kandar.

Hopefully, the portion served’s still the same.

Just last night my wife and I shopped at Mydin and out flew RM360 from our wallet for groceries.

I did splurge a bit: bought smoked chicken breast slices when I really shouldn’t have, but, hey, what is life without all these little pleasures to make it more bearable.

Might as well become a hermit and go sit/chant/whatever in a cave somewhere.