Friday, December 9, 2011

The insult from REDAS

Redas was disappointed by the lack of consultation over the government's latest move to raise the stamp duty on private property transactions. I am appalled how shameless and guilty looking Redas is. I am even beginning to wonder what Redas relationship with MND top leaders were like before Khaw Boon Wan took over. I imagine Redas was completely oblivious how they might look to the rest of us. I imagine in the business as usual before, there were many private consultations? I can only logicise here. Therefore it didn't look out of place for Redas to make a public statement like this isn't it? Response like mine, and I am sure there must be others who also have noticed the same are now serving like a mirror to reflect Redas awful face.

Redas should never never suggested that they be consulted. Never. To think they complain it like their god given right. To continue to pretend that they are serving our national interest when all along they were completely narrow minded about their self interest. The same but less sophisticated ruse used on the US Congress on the other side of the world by lobbyists. Anyway when Mah was on the job, oftentimes it looked like he got his education of the real estate business from Redas members.

Grow up Redas and don't try to encourage the government to become more like the Chinese. Promote the rule of law and fairness.

At lunch today, a friend suggested that although the stamp duty hike were directed at deep pocket buyers, the pain could be devastating on the developers who had taken out huge loans from the banks and projecting ever higher sale prices. If property prices collapse, at what price point would it threaten the stability of our banks? I have by proxy counted on the founding families of UOB and OCBC to be solid risk managers. I do not trust half witted DBS to do the same. Sadly you don't need all three, only one too big too fail institution is enough to threaten the financial system. Well, for now this is just a speculative thought. We need some numbers and analysis to reveal the true picture. I am just assuming a responsible MAS would have done the stress testing, but of course if DBS and the foreign were to fudge the numbers, and like many big bulge banks had over the years, all bets are off.

It is really hard not be Romans when in Rome! I am watching the stock price of our banks. Meanwhile the property counters are convincingly in the doghouse. And I didn't pick up any Capitaland the last time I blogged about them in being dragged to the cleaners. I tried to read a good ten years worth of annual reports and gave up after three years. Analyzing them properly is a job for a full timer.

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