Taking care of babies

I have seek wisdom from people around me on taking care of babies and children. My question to them is “when taking care of babies, what do you think is the most important thing?”

Here are their answers:

1) “Discipline. Never beat them or lay hands on them. Do not pamper them too much or they will walk all over you. “advised a mother of 4 children.
2) “Health” came from a grandmother.
3) “Happiness and freedom,’ said my mum
4) “looking after them,” from my mother-in-law
5) “Understanding our children”, from yours truly.

The best gift to give a child is a happy childhood. This is priceless. - Quoted my mum. I fully agree with what she said.

What do you think?

Insiders selling

Recently, I took a look at Bank of America, Fifth Third Bank and found out that many directors are buying the shares. This usually means the bank is doing well. Until one look closer.

A closer look revealed many officers selling the shares. For the many directors buying, I noted that they are buying at zero cost a share. In short, the directors buying does not mean much as they pay nothing to get more shares. It is the many officers (insiders) selling that woke me up. How can the company be doing well if so many middle rank staff is selling the shares? Do they know something that we outsiders don’t?

Surely, we outsiders know less about the bank than the insiders. I suspect it is wise to follow the track of insiders to be careful of banks stocks such as Bank of America and Fifth Third Bank now.

My Mum – an independent thinker

At a time, 40-50 years ago, when most people are very traditional in thinking and superstitious, my mum was ahead of her peers. She was able to think independently instead of listening to the majority. For example, in taking western medicine, she knew that it comes with side effects. For minor illnesses like running nose, slight fever and cough, she advocates to let the body battle the virus rather than see a doctor. Needless to say, she has her own home remedy for running nose, cough and slight fever.

In stark contrast, many elderly folks believe in seeing doctor or Chinese sinseh for minor illness. I also realize that the more superstitious a person is, generally, the poorer they are. This is true in Macpherson area, where many poor folks live. During the ghost festivals, many offerings are lighted along the corridor near the void decks. This is more than what I have seen in other towns like Serangoon or Bishan.

A look at Wikipedia confirmed my mum was on the right track. As many flu, cold, running nose, cough cases are caused by virus, this mean that medication by doctor does not help. In fact, it is recommended on the internet to let the body fight against the virus.

Thanks for the great advice. Thank you, mum.

The uncertainty ahead

It is reported in the news that there are 1 Million foreign workers or more working in Singapore. Assuming a $1,000 per month paycheck, this is $1 Billion per month ( or $12 Billion a year) in income to foreign workers. Most of this money will go to their rent, food, drinks, and savings being sent back to their home country. This savings transferred back home will fuel a construction and housing boom in their home country. This $12 Billion is only for Singapore. How about countries like Taiwan, Japan, Hong Kong, Malaysia, Australia etc…? if this money stops flowing to the foreign workers, the construction and housing boom in China, India, Malaysia, Vietnam etc… may end.

There are many 6- 9 – year old normal car plate vehicles in car parks such as Toa Payoh, Bishan, Ang Mo Kio etc which are hardly used in daytime. Someone is paying taxes, maintenance, parking for these vehicles. If the job market remains good, then the car taxes, maintenance will be paid. Should the job market weaken, these vehicles may be sold early. If many of these cars are sold, the car market prices will dive.

In view of such situation in Singapore, it can be said that there is an excess of vehicles and foreign workers in Singapore. As such, car prices and foreign workers numbers can only go one way down.

My complaint was listened to, finally!

A few years ago, when I learnt that HDB linked the prices of new flats to prices of resale flats. I complained that it is not the right way to price the flats.

Why? The reasons:

1) We knew that market always have bubbles. By linking the prices together, during a property price bubble, HDB new flats prices will follow the prices of resale flats and be inflated. HDB will earn fat profits. During a downturn, the prices of resale flat will be depressed and new flats prices will be sold maybe below cost.

2) HDB mission is to provide affordable flats to families, and linking the prices together contradicts this mission.

3) A resale flat in a mature estate like Ang Mo Kio can never be compared to a new flat in Seng Kang because of the difference in availability of amenities like schools, child care facilities, buses, roads, MRT, market, shops etc. As such new flats must be sold at a price much lower than resale flat and not linked to resale flat.

A better way is to price the new flat slightly higher than the cost of building the flat. This ensures HDB make small and stable profit rather than earn big profit in boom years and suffer losses in downturns. Finally, the new minister has listened to my complaint and has delinked the prices of new flats to resale flats.

Now, I have another complaint. The cleanliness of the public toilet in coffeeshop, market, CC, is in third world standard and not first world. Can we do something about it?

What happens when a country go bankrupt?

I got the answer from wikianswers.

From the link below:
http://wiki.answers.com/Q/What_happens_if_a_country_goes_bankrupt

First of all, bankrupcy is highly unlikely. If a country is heading towards bankruptcy, they will:
1) Form trade agreements to increase trade
2) Seek loans from allies
3) Seek assistance by offering military benefits

i) For USA, they have signed many Free trade agreements with South Korea, Singapore and other countries. I suspect trade agreements to increase exports can only do so much for USA and is unable to turn the trade deficit into a surplus within a year or two.

ii) USA may also seek loans from Japan, Europe and many allies. But Europe is facing a crisis of its own and may not be able to save itself. Japan may help, but they face slow growth. Other allies may want to help but their financial situation makes it impossible.

iii) Only Japan may give assistance by accepting military benefits. But as long as Asia is peaceful, this may not be significant to Japan.
If all fails…

1) The stock market will crash and credit will seize
2) All financial institutions will fail
3) All government funded programs will end (such as medicaid, defense, police, education, infrastruture support like roads, utilities etc)
4) Business will close and jobs will be lost
5) There will be mass rioting (and no police to stop the rioters or fire fighters to fight the fire)
6) Everyone will start killing each other for food
7) The rich will buy the country and turn a democracy into a dictatorship

Will this happen? I sincerely hope not.

Could the COE prices for car be an indicator of the economy and stock market?

When things are rosy like now, COE prices for car are at $80,000, a 5- year high, home prices like Bishan flats broke the million dollar mark in recent history; the economy is in a boom which is about to go into a downturn. It is as predictable as the four seasons.

Recently, the government has introduced new measures to cool the car market and this means the car COE prices will likely go down by next year. If these new measures to regulate car and house prices are coupled with a credit crunch, the prices for cars and houses will fall by at least half.

As a proof of this theory, year 2009, just after the credit crisis of 2008, we witnessed the low of COE prices at $5,000 to $10,000. When the economy is flushed with cash in year 2012, COE prices went up to $80,000.

The coming weaker COE prices may also mean a weak stock market and economy. Let us await and see.