The New Path of FINANCE

When I first read the Reform Financial Bill, I was quite excited because it is supposed to overcome the hick ups of the recent credit crisis. But as I read it over and over again there are some things which need more attention.

Referring to my twitter, the consumer protection agency should protect the consumers of FSI's. I mean it just doesn't make sense if a bank receives tax payers money and yet still pay huge bonuses to its top execs.

Obviously the exceptions for big cos in derivatives trading is a major set back. The big cos have all the resources and will to make money, yet they will be spared the regulation on speculative trading, I presume. Initially companies trade in futures, options, cds, swaps etc to hedge against systematic risks but as time passed by everybody will speculate. By then 'BETA' will be a thing of a past.So a big company with vast resources will escape the evil mechanics of speculative trading but a small one will be subject to harsh regulations. It is not fair to the small fish.

The most interesting part is where the government can dismantle a healthy firm if they are considered a grave risk to the economy. So I guess Fannie Mae and Freddie Mac, GM, Chrysler would fall in this category. What if the white house did not approve tax payers money to bail out these firms? Certainly the US economy would come to a halt.Maybe BP and Enbridge would also fall in this category. But BP is British (with an American CEO of course) and Enbridge is a Canadian firm. I guess NAFTA(North American Free Trade Agreement) and free world is the obvious answer.

The word is CREDIT. To have a clean balance sheet banks can rely on Mae and Mac. Yes the bank's balance sheet is healthy BUT the burden has shifted to Mae and Mac. Mae and Mac have no one to turn to except the government in order to clean its balance sheets.Its like transferring our credit cards balance from one bank to another. No matter where we move those credits it is still there in the cycle. We must find a way to eliminate that cycle. In my opinion this is the real cause of credit crunch. The property bubble and high interest rates is just part of it.

BUT as my critics will say who am I to talk a lot about bankruptcy, winding up and foreclosures...

I knew from October 15th 1990, as I reached KL, Malaysians hated me. And it will be 20 years come 15th October 2010. Malaysians DISLIKE me but I am not allowed to go to Canada.Isn't that stupid? If Malaysians hated me say 1001 times then I also hate Malaysians a million times.

PORNOGRAPHY and Sugar Price

Please accept my apology for writing incorrectly the new sugar prices. Well the new sugar price is RM1.90 per kg.

PORNOGRAPHY

I totally disagree with Tun Dr Mahathir when he suggested that pornography be censored in Malaysia. To me sex and pornography is a separate entity.... Thus the reason why many people accused me of failing my Saskatchewan studies because I watched too many pornographic videos and photos while in Canada. Well if that is the case why until now I am still single? I must be lured with full libido energy if I'm too obsessed with porno materials BUT until now I am still single. I have NOT been with any women i.e.if you know what I mean since October 1990. And believe me I vomited like shit when I watched gay movies but I enjoyed watching lesbian videos.

Understand the word BLACKMAGIC???

REUNION

In December 2003, I attended a small gathering with my fellow friends who went to University of Saskatchewan College of Commerce. Initially I was reluctant to go but when I talked to my parents they encouraged me to attend the reunion.

But as an incomplete student status I felt awkward at that gathering.Mainly because I was nobody, no great pay, no nothing and just drive a compact Perodua Kancil.

As I think about it I realized that my departure from Saskatoon in October 1990 was a relief to my fellow friends and maybe to the faculty at College of Commerce too.I knew some faculty members were in Malaysia between 1991 to 1998 and yet I WAS NOT invited to any of the gatherings.Obviously a sleezy me would not be welcomed at 5 star hotels.

I also understand now why my matriculation friends also deserted me! Well its life when I am nobody, poor and have no status.

When I settle down it will be a small wedding like the late King Hussein of Jordan when he married Lisa Halaby! I don't want to fork out any single cents to you people.Thereby my pocket will still be full of cash, hopefully.

Gas Price Increase

AS of Friday 16 July 2010,


Petrol Ron 95 : 5 sen increase to RM1.85 per litre
LPG : increase 10 sen to RM1.85 per kg
Diesel: increase 5 sen to RM1.75 per litre
Sugar: increase 25 sen to RM1.75 per kg
Petrol Ron 97: to be determined by the automatic pricing mechanism (currently at RM2.05 per litre)

PROTON 25 Years

I watched the Silver celebration of Proton on TV1 last night. Among the attraction is the new Proton Emas. Proton was set up on May 7, 1983. Its first Saga model rolled out on July 9th 1985.

PM Najib's speech was as spiritual as ever except for the part when Najib encouraged the consolidation of Proton and Perodua. Merging Proton and Perodua must be done accordingly. Remember General Motors was an entity made up of various brands such as Buick,Cadillac,Pontiac,Chevy etc and yet in 2009 GM has to borrow from the North American Governments and eliminated some brands i.e.Pontiac.

Anyway, I look forward to buying my first Proton because as a nobody and poor who would be a beggar if I go to Canada, the only automobile I can afford in Malaysia is either Proton or Perodua.

To the Proton team - KEEP UP THE GOOD WORK

O.P.R.

BNM Monetary Policy Committee decided to increase the OPR by 25 basis points to 2.75% on July 8th 2010

Thus the floor rate is 2.5% and ceiling rate is 3%

I would envisage the OPR increase would halt at this point taking into consideration PM Najib's advise on the impending slower 2nd quarter growth.

CANADA DAY

July 1st 2010

Tomorrow is Canada's National Day. I understand that Queen Elizabeth will be in Canada to honor the National Day.

Happy 143!!

Belacan and CenCHALOK

My instructors at University of Saskatchewan always ask me what is the menu whenever we had special functions such as Hari Raya or the National Day gatherings. Often the questions asked were how hot and how spicy the delicacies were?

However there are other Malaysian dishes which were not served during those occasions.For instance budu, belacan and cenCHALOK. The reason why we did not serve it was that Canadians could not stand the smell of these delicacies.For every house, room or apartment which I rented there were always complaints when I cooked my belacan.

Belacan in simple term is prawn paste.We would cook the belacan before mixing it with chilli.Although the smell is bad to Caucasians the taste was good.As for cenCHALOK, this delicacy is from Melaka and we can eat it raw.

BAY STREET

Why didn't I go to Bay Street while in Canada? Obviously Toronto is a few hours flight from Saskatoon not to mention the fares.Bay Street as Canada's financial district is a must for anyone who studied finance in Canada but I blew it am I not? I was in Toronto only once i.e. from 18 August - 21 August 1987. Even though the programs at the then Malaysian Students Department was packed, I managed to sneak time to go to CN Tower. As I view the tower from the aeroplane I knew I had to go up CN Tower when I touched down at Lester Pearson.

There is something missing if someone with financial background never set foot on Bay Street.Its like my name without Val. Of course I would like to set foot on world's financial centers i.e.Bay Street Toronto Canada, Wall Street New York USA and The City London UK. It hurts when you cannot practise what you have learned.

One day%%%