Too Big To Fail

"The Treasury, the Federal Reserve and the FDIC said the federal government would guarantee roughly $300 billion in losses at Citigroup on its troubled assets and inject $20 billion more into the bank. That new capital injection was on top of the $25 billion given to Citigroup weeks ago as part of the $700 billion bailout passed by Congress in October. "- CNN

Citigroup as the fourth-largest bank in America and empoly over 300,000 workers is considered a financial giant that is "too big to fail" by government. Failing of such a big instituion will have negative repercussions not just on those employed by Citigroup but the economy as a whole. In times of financial crisis, loan freeze and groomy economic out-look, government must minimize any risk that will further dampen the economy. However, there are opposing voices from the tax payers, questioning government about "bailouts" to "those who cause the problem-namely the bankers". Furthermore, will this act of government bailout and rescue plan further increase moral hazard by other banks to take on excessive risk??

It is a necessary decision for the government to enact this rescue plan amist political unfavoritism on ths side of tax payers but it is a measure that must be taken to prevent the crisis to snowball further into a deep depression. The most important thing to do now is to boost investor and consumer confidence to the pre-financial crisis level but it is a tough thing to do as people are worrying about retrenchment, cutting down on consumption, employers are more careful about employing new workers, investors are doubting when the stock market will improve and even banks are more careful on loans, leading back to insufficient funds for prospective investment that may give the economy a boost. A look at the recent news will further paint a gloomy economic outlook- with paycuts for civil servants in Singapore and the fearful picture of ten of thousands of fresh graduates in China applying and fighting for the limited bank job opening of about 1000 position and willing to take up salary of as low as S$600. I guess the worst have yet to come as the snowball gets larger.

Reference:

http://money.cnn.com/2008/11/24/news/economy/bush_treasury_statement/index.htm

http://money.cnn.com/2008/11/23/news/companies/citigroup/index.htm?postversion=2008112411

COE at $2 !!

Result of COE open bidding for November 2008 is stunting. COE price for Cars (1600 cc and below) dropped from the usual 10k+ to $2!! Maybe Singaporean already feel the impact of a recession and cutting back on consumption and luxuries. Retrenchment of staff from major banks like DBS and Citigroup may have affected ppl's confidence on their job security and this further lead to lower consumption. As mutiplier K can be said to aid in a mutiplier effect in times of boom leading to economic growth and GDP to increase, like wise in times of recession, it will have its regressive effect. Few weeks ago, Mr Goh urge Singaporean to spend and he use paradox of thrift to show the irony of "saving too much". How long can the domestic driven consumption sustain and cushion our economy? We will see when the big wave hits us.

Parted

She's been with me since I was undergoing NS, she accompanied me till I ORD and followed me into my uni-life. Can't forget the times i spend alone with her. The wonderful memories and numerous fun moments she gave me. It's sad and I am feel quite unbearable when I have to let her go... I play with her one last time before I send her away far away to the game shop. Yup... I finally sold my sony ps2.

the list

After the recess week, deadlines for papers are chasing after me and work is piling non-stop. Managed to finish public finance project on monday and had to go school on deepavali to get it done. Things slow down abit after presentation on tuesday. Went down to k-box buffet to disconnect my cable to the school reality and to celebrate joan's 21th birthday.

Quite proud of myself for completing a number of assignments, essays and other mini tasks for the past 2 days due to the piling pressure to get things done and to strike them off my list! These task include stat assignment, 3 philo blog posts, political ritual essay. Planning planning and planning, always planning to produce the perfect work but somehow actually work didnt start, only mental work is done. In time of rush hour like this, i have to resort to nike slogan of "Juz do it", it's how i manage to finished my soci paper by just starting the first step of opening a new blank word documents. I somehow have to tell myself to stop thinking and start doing. :)

Fiona Xie & Food

Was watching lonely planet from Channel 5 featuring fiona xie when I settled down after fetching my furry pet hm. What a good mix of placing a gorgeous babe wif some glorious food. Mediacorp is pure evil, igniting my desires for food and making me hungry at this late timing seeing all the wonderful hk dim sum. There's this very appealing "come home to five" advert of fiona xie dressed up in white carrying an umbrella; she look like a cute bunny inside:). Switched to the new oKto channel and saw some show featuring sort of like a horror movie themed with NS reservist trapped in a deserted islands.
Although most tv content aren't that interesting, i find myself glued to the screen, unwilling to press the OFF switch. It gave me short term escapism from revising thru my I.O assignment (10%) and Public Finance Project that are both due on coming Tuesday. Tml's holiday but no holiday for me as I will be BTS(back to sch) for project. ~~

Opening Of New Blog

Wanted to try out something new again and decided to start from scatch a new blog. This blog will be experiemental site for trying new template and skins :)