Obama's housing plan - socializing losses?

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In his report on CNBC, Santelli said responsible homeowners would end up subsidizing other people's bad behavior.

From the floor of the Chicago Board of Trade, he turned to traders and said: "How many of you people want to pay for your neighbor's mortgage that has an extra bathroom and can't pay their bills?" The traders booed that notion, and Santelli said: "President Obama, are you listening?"

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below my take on Rick Santelli's rant..

....it is very onerous and punishing to expect decent responsible hardworking americans setting out a new home and family completely within their means in 2006 or 2007 (say monthly repayment below 31% of household income)...

home prices may have fallen 30% to 50% because an irresponsible neighbour defaulted and his property foreclosed at fire sale price and even hardworking folks perfectly able to pay the mortgage may default (rational default)...

who is to blame?..cnbc anchors can repeat lopsided sensationalized comments about socializing losses and privatizing gains when the housing plan is to help 7million of their responsible fellow citizens caught in this global collapse and yet they are quite happy to attack Obama when he criticized the $18billion Wall Street bonuses as the "height of irresponsibility" and "guys please show some restraints"...so some segment of the press are quite happy with privatizing gains and socializing losses when the $18b bonuses go to the powerful Wall Street boys that caused or allowed the collapse under their watch (their greed causing miseries to hundreds of millions around the world) but not so happy when it goes to 7million of their fellow americans...I guess that is the "height of irresponsible reporting"...

still Obama administration has lost the initial spin and in a free debate it is necessary to hear all sides...so it is important to address the real concern of the american people about not subsidizing the unworthy (Wall Street fat cats or irresponsible Main Street next door neighbour..and don't worry about restricting bonuses - there are lots of perfectly decent hardworking Wall Street folks waiting to contribute once the fat cat culture is gone..)...but ignore the rants and not add any credit to it...

Job Credits - stimulative package Singapore style

no one quarrels with dipping into Singapore reserve...extraordinary/unprecedented times require extraordinary measures...Obama said it, Kevin Rudd said it, but I guess no plagiarism there...

not totally bought-in on whether job credits is innovative...something is innovative if it is a new way to solve a problem...job credits is new thinking no doubt just not sure if it solves the problem...NTUC is lately adamant against CPF cut...Lim Boon Heng earlier said it is across the board and penalise workers in companies that do well despite recession...Lim Swee Say said when rebutting Low Thia Khiang "does WP want Job Credits or 9% CPF cuts"...Low is seasoned enough to say he don't want both..haha...job credits is labelled as "smart bomb"...not quite sure why it is smart bomb when it is also across the board for all S'pore and PR workers with CPF account? if the purpose is to lower costs for employers (supposedly to temporarily keep jobs but as many have said why would employer pay $7500 and wait 3 months to get back $900 credit if he don't need the workers?), so what is the difference as far as employers is concerned whether it is 9% CPF cut or job credits? the only difference is whether the employers' savings come from $4.5b job credits or from workers CPF...but if we cut workers CPF then the $4.5b can be spent in a targetted way for specific group of workers or industries or income level, so higher income workers above $4.5k/month will have effective pay cut (from CPF cut but better than lose job) but then the $4.5b pool from reserves can be more targeted to help either certain low income group (workfare etc) or certain targeted industries...why is job credit a smart bomb when it is "one size fits all"? taxpayers don't want to subsidize already profitable companies nor companies which will fail anyway after getting "temporary" job credit bailouts for 1 year?

of course there could be other reasons for not touching CPF-maybe it will trigger property loans repayment default etc...but those reasons maybe should be investigated and communicated...maybe messy to have temporary 1 year 9% CPF cut vs one-off job credit scheme (hmm..not sure about that)...maybe part of job credits are for government linked agencies so go back to consolidated accounts anyway but unlikely that is big % of $4.5b?

though many brilliant minds (scholars) have gone into job credits and government as always have studied thoroughly before introducing an idea, still no harm to listen whether WP or PAP or others if there are other views, considerations, solution, or at least revisit issue and explain better...

Miracle on Hudson River

plane crash-landed on busy Hudson river next to Central Park and all 155 passengers & crew rescued..a miracle no less because of the 57 year old captain's intelligent calm skillful handling and the rapid response by 14 commuter ferries, fire department, coast guard and fast, effective evacuation of passengers by the brave crew (captain walk up and down the sinking plane twice to check that all are rescued before being rescued himself) etc...an unusual "double bird strike" stalling both engines at 3000 feet by a flock of geese minutes after take off caused rapid loss of altitude from 2000 feet to 400 feet and narrowing options, and pilot had to make a series of sharp turns to negotiate the plane to crash land on the narrow stretch of Hudson river, where temperature is -7degC, and only 1 passenger broke both legs, all safely rescued including baby and passenger on wheelchair...the best inspirational story to be read and reread on Readers Digest for a long time...

kudos to a Korean Court which jailed a Korean man 30 months for raping his Filipino wife...he got the poor Filipino women in 2006 through dating agency and was accused of repeatedly forcing her to have sex by threatening her with stun gun and knife...this a first in Korea's male-oriented society, seems only other case was a man convicted of indecent assault on estranged wife.. come to think of it, not sure this ever happened in Singapore?

a Singapore van driver hit two 9-year-olds on a pedestrian crossing near Old Airport Road on their way home from school, landing both in hospital and leaving one still unconscious with head injuries. the 2 had almost reached the end of the crossing when a van came "very fast" and hit them...such reckless drivers should be banned from the roads forever!

a China women was sentenced to death, convicted of hiring a killer to kill her own 9 year-old son in order that she can have a child with her second husband..the man she married after her 1st husband died already had a daughter. she hired the killer to kill the girl but she got away, so she got her son from the previous marriage go to a meeting with the killer who then strangled him. such sentenced are usually commuted to life subsequently...it is easy to blame China's one child policy however one must be inhuman or totally deranged to commit such unspeakable horrors....

a China maid in a Shanghai county put a 1 year old baby on a chopping block and slashed her with a kitchen knife..the father rushed into the kitchen and snatched the baby away after the mother heard her screams...the mother was also injured when she struggled with the maid...the baby suffered 5 slashes, needed 100s of sutures, one injury severed the nerves and her face was totally scarred...

so many sad things happening in every corners of the world, what with Gaza, Zimbabwee etc...at the same time, the world is becoming more aware, proactive, green, and maybe Obama will bring hope and leadership to the world and leave our next generation with their earth's inheritance intact!

any other day

had my weekly swim at Keppel Club...just 16 laps (junwei is on 20 laps)..feels good. weather getting just bit colder...pool water is cold even at 10am..

went to Domes cafe @ Dempsey to pick up something from a banker...

Jun & I decided to go makan nasi padang at Kim Seng Road but I decided last minute to have pig trotters at the hawker centre instead...very unhealthy but shiok...hehe...

it was 12.20pm just ahead of lunch crowd...put my food tray on a 4 seater table & went back to get the second bowl of pig trotters for Jun. had a minor tiff with the young girl mid-twenties on the next table...went like this (this is our table...I am sitting here, my food is here...I was sitting here before you...when I put down my food (tray) you said nothing...you just put down & went off so fast...) whatever...anyway solution - there was an empty table 10 feet away so I moved my food over no point expense my mood on this unproductive thing (you don't own the food centre, my friend) --- in my mind she placed nothing on the next table...and you cannot reserve the next (2nd) table for 4 when you have 4pax and already occupy 1 table of 4 especially when the hawker centre is getting crowded...

anyway had a real enjoyable lunch (sinful things usually enjoyable hehe) get back do some work and later may go gym before my evening engagement....

Tai Wah Pork Noodles (bakchomee) #02-17 Hong Lim Food Centre

wife and youngest daughter went shopping at vivo-city.

wanted to get out of the house so drove to Shaw House. walked through Isetan Orchard. things are really expensive even with 50% off 70% off sales, what with the recession?

2 years ago during CNY period I bought 3 pairs of Timberland shoes for like $250! now even with 30% off similar Timberland shoes are costing $250 less 30% (or $175!)..where is the sales?

walked along Scotts road. now they have sidewalk cafes for McCafe/McDonald's, Starbucks, Canele...and bubble tea is like $1.20 only. walk over to Level One (thought it was still Metro! how long have I not been here).

contemplated taking the $2 McDonald's double-decker cheese burger, but decided to drive off to Hong Lim food centre to try out the Tai Wah bakchomee instead. got behind a constant queue of 6-7 and got my $4 meekia dry after 15-20mins. think this is the best (& cheapest!) I tried of the 3 Tai Wahs (recently the eldest and youngest brother had a public spaton the Straist Times), better than the one at Crawford Court and Vivo Food Republic (about same as the Marina Square stall which had closed down). the noddle is springy (qq), the vinegar a tad too much, the 2 meatballs, liver, pork slices, minced pork, 2 dumplings, dried dace all great stuff worth the queueing.

the Outram Road char kuay teow @#02-18 was closed, but there is longer queue even at Kee Kee wanton noodles @#02-49. the curry chicken noodle Heng Kee at level one is closed, but the Ah Heng curry chicken at level 2 (the one I prefered) is open. <>

"Money No Enough 2" by Jack Neo

last evening, my whole family went to watch "Money No Enough 2" at the club.

this was the second time my wife and I saw the movie. my 2 daughters like it. my son slept through parts of it. my wife didn't like the depressing theme which she viewed as real, something encountered in daily life and not funny, and that the audience found it funny and laughed throughout the movie.

I thought it was really good, very realistic in capturing the behaviour of Singaporeans (and perhaps people in general) as my elder daughter also said. I felt the movie was no slapstick. the fact that the movie was peppered with laughter throughout showed that the audience really identified with the many scenes and instances in the movie. that my wife felt the issues were real and everyday problems and the theme was depressing also showed that the movie has substance and insight and is not just bent on gaining laughter.

the 3 brothers each suffered setbacks of their own making, whether it was due to greed, reckless irresponsibility in the youngest brother (Mark Lee), selfishness and hyprocrisy especially in the second brother (Jack Neo). the problem of the aging mother striken with diabetes and alzeimer is indeed real, an everyday struggle for many, and discomforting.

it is all too easy to judge until one is faced with a constant daily nursing effort, costs (rising healthcare costs and priorities of a profit-driven listed hospital group are the issues in focus here!) and inconvenience coping with a aged, sick and immobile parent (like having to wash 6 towels a day soiled by urinary incontinence of a diabetes patient etc). parents are generally willing to cope with sick or disabled child and stoically assume the hardship for a lifetime yet the same people often are not likely to do the same for their parents (or probably even their spouse) less than grudgingly. perhaps it is human nature that love for our children are largely unconditional but the same may not apply to parents, spouse or another adults, whereas the protective feeling towards our children always remain that way even when they become adult.

while my view is that we should tend to our aged parents as we would our children, sick, bedridden or striken by alzeimer, I am unwilling to judge others. also I do not think I can be a very sensitive or caring caregiver (certainly less useful than a professionally trained caregiver) though not a grudging one-in my case it is moot as my parents passed away when I was 18 and 19.

anyhow my view is that quality of life for both the one needng care and his(her) family would improve if Singapore and elsewhere develop and expand more professionally managed retirement homes where proper healthcare, nursing and leisure/community needs are met by professionally trained caregivers. people should still take care of their aged parents and not dumped them in the old folks home, but at least there is a real choice and quality alternative, not one where old folks feel unwanted and deserted.

anju restaurant @ arashiyama : "superb yuba & black hair Japanese beef set"

Arashiyama is a 15miutes ride from Kyoto station (via JR Sagano line Kyoto Station Saga-Arashiyama Station). It has everything for a 1day excursion (or 1 night ryokan stay) on the outskirts of Kyoto from Togetsukyo bridge over Hozu river to bamboo grove to tenryuji temple. We had an excellent stay at togetsutei ryokan recently on 17.12.2008 (the kaiseki is tops) and we chanced on a really great lunch the next day at Anju Restaurant located along the road from togetsukyo bridge along Saga Tenryuji Ktatsukurimichicho just past Tenryuji temple entrance and before reaching the bamboo grove turn-off.

My wife and I both had the 3900Y set. Except for the wagyu (& fish) it was an entirely yuba set. This was a really great combination for us. While we were both keen on good yuba set (having tasted a really marvellous 3500Y set at a yuba restaurant along the road leaving kiyomizu temple during our last trip) we decided though that we would not pay that kind of money again for yuba no matter how good the yuba was so we skip the yuba restaurant Shigetsu in Tenryuji even though it came with good reviews.

We had yuba sashimi, and it was really nice - fresh, refreshing just ike sashimi (but nothing like real sashimi nevertheless), a deep fried yuba dish which is really really superb, a bean paste starter, a simmered dish beancurd, 2 fried fish pieces with roe, and mochi dessert+ a fried starch cube - nicely sweet and tasty similar to sweet non-savory version of Korean nian gao.

The main course was a good grade wagyu sirlion steak done rare (though my wife complained that hers was more like medium rare). It was marbled and very tasty and tender. In my opinion, this Anju set is really value for money. The wayu steak would have cost upwards of 2500Y in any average Kyoto restaurant, and the yuba set w/o the steak would be almost a match for a 3000Y set in a good yuba restaurant.

superb value set dinner & nice views - Southern Court @ Granvia Hotel Kyoto

my wife and I had a great dinner at Southern Court recently (18.12.2008) during our stay there.
generally we avoid western and chinese food in Japan since wagyu and Japanese food are of great quality and value and there is no need to risk paying high price and getting mediocre non Japanese food (though we were presently surprised to have nice cheap comfort food italian/spanish pasta/paella at Pronto @ Kyoto station - that's another story)..
so the 4200Y (inclusive tax) almost fine food 4 course set dinner +coffee at Southern Court was a real treat.
there was the usual amuse bouche and bread (quite average). my wife then started with a raw tune salad and I had a "smoke" salmon. the smoke salmon was Japanese style and we realized that Japanese smoke salmon at international buffet breakfast (mostly bad) and ryokan (good) were the slightly dry, smoke variety..this is quite unlike the usual western smoke salmon or chef's own freshly cured salmon. As it turned out the smoke salmon was a braised salmon that was prior smoked and it was really good-very flavourful and not too salty, even better than the tuna salad which itself was tastier than most you get in Singapore.
this was followed by a pumpkin soup, quite ok decent quality I guess nothing fantastic.
next we both had sirloin rare for main course. this is no "black hair Japanese beef" of course but it was still a rather good steak and nicely done and flavourful.
this was finished off with dessert and coffee..both good...
service quality by the young waiting staff is above average and polite as in 99% of Japanese outlets.
for 4200Y tax inclusive this is really great value (even with the ridiculously high 100Y=S$1.70 forex rate).
go give yourselves a treat!

superb teppanyaki course dinner @ Osaka

my wife and I had an excellent teppanyaki set at Chibo Dotombori Osaka last evening before flying back to Singapore today.
we chanced on the restaurant Chibo while strolling along Dotombori and trying out the Okonomiyaki and level 1. realizing that there is a teppanyaki restaurant on level 5 we went back the next evening and really enjoyed a superb meal.
our set was 4980Y and we added 1000Y for Japanese beef ("black hair wagyu") so 5980Ypax.
the set started with a quite extraordinary amuse bouche (chef's compliment) of abalone in light vinegared sauce (about 4 thick slices, maybe it is just shellfish but it sure taste like awabi)...I think the Chinese style braised abalone with brown sauce is tastier and better textured but my wife is completely bowled over!
next came a tasty dish of tuna (diced cubes) mille feuille with 2 nice pieces of crab cakes, followed by scampi teppanyaki - just a small 1/2 scampi each..fresh, tasty, not fantastic but I guess part of a quite good course dinner...
this was followed by a teppanyaki seabream with crispy skin on top, very enjoyable indeed.
next came the highlight of the evening, the teppanyaki steak. each person only has 75g, but this is superb stuff - the meat is so marbled and flavourful and really unforgettable. the 2 sauces-vinegared with some radish and teppanyaki sauce with dash of mustard are good but just a touch of sea salt is really good enough to enjoy the full flavour of the wagyu! being greedy and really you can't get this quality of wagyu in Singapore and the price is much cheaper in Japan, we ordered another 100g wagyu to share for 3700Y.
the carbo dish was a choice of okonomiyaki and sobayabi with choice of toppings, so we picked 1 each - okonomiyaki with octopus and pork (nice but honestly the one at level 1 Chibo "bistro" is even better!) and yakisoba with bacon & scallop. dessert was a mango parfait nice but not spectacular.
the service is sterling and the chef was really artful and the dishes all appeared like french fine food, quite unlike in Singapore.
this is really one of the best value for money course dinner. the only that rival is the teppanyaki course lunch at Gosanbo at Hotel Granvia @Kyoto station, and kaiseki at some ryokans.

Suggestion to Obama Transition team

hi

not sure if it will work or how difficult it is to implement...
but if subprime is the original trigger (though it is really a manifestation of excesses, bubble, corruption & incompetence of the last 8 years) and subprime poisoned the CDO baskets which originally comprises supposedly healthy assets before the global financial meltdown and credit crunch, then is it possible to focus on auctioning off removing subrpime and toxic assets (NOT the entire bank loan portfolios with mostly "would-have-been" healthy loan assets..
instead of just pumping US$250b orUS$750b into Wall Street (and Main Street), can a government entity be set up to buy ONLY the subprime mortgages INSTEAD of the CDOs tainted with subprimes(and otherwise "would-have-been" healthy bank loans which overnight became non performing as a result). this will take away the multipier effect and maybe reduce by 10x or 20x the taxpayer's $ required for the buyout.

this is NOT a bail out at all but a commercial transaction as if banks were to sell "would-have-been" healthy loans and shares at bashed down prices, then they can sell subprimes at bashed down prices so $0 even so that confidence can return and "would-have-been" healthy loan portfolios will begin to recover to "would-have-been" fair price...
if subprime were bought out at $0 or 10% or even 30% of the price then most will NO LONGER be subprime as the borrowers would now be able to pay their mortgages and the housing price even at a high 30% are already higher than the current illiquid hosuing market...(whereas banks, savings & loans, freddie mac, fannie mae are going for $0 bankruptcy or 10% or their peak price)
this way-

1. subprime borrowers can to keep their home and continue to pay their mortgage with dignity and NOT force out of their homes, which is 1 of your main themes...
2. taxpayers may even make some $ from buying out subprime at based-down prices...which at 10% of 30% of original house price must be the bluest chip loan asset
3. Wall Street get a chance to recover and return value to its shareholders and bondholders with removal of subprime (which hopefully also remove toxic assets...this may not fully be as there are also "subprime" in credit card and other loans...then such individual subprime loans should be auctioned and NOT the baskets....basically any type subprime loans where borrowere default today but unlikley to default if priced at 10% or 30% should be bought out and remove and the remaining loans will hopefully be back to performing again w/o default...
4. Obama adminstration provide leadership and regulatory oversight but NOT bureaucracy being forced to manage commercial entities (likely inefficiently and stifle innovation and "change" despite being well-intentioned and not yet corrupt at the beginning...this risk is there...)..the adminstration can continue to provide leadership and regulatory oversight w/o being shareholder of Wall Street
   all the best...the world needs a strong healthy leader and innovative non corrupt america
   

brgds
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