Forbes : Singapore economy headed for Iceland style Meltdown

[princess_morbucks]

http://www.forbes.com/sites/jessecol...tyle-meltdown/

[minority]

One thing other than the talk abt crash. the article never mention that face iceland crash was caused by the government and businessman taking huge risk and the citizen borrow to the hilt.

with all the cooling measures. as well as the LTV and TDSR limits would limit the exposure of the banks. Also the goverment have been prudent and thats why we need to have a strong reserver to back it.

on the surface the article try to draw parallel of iceland n Singapore but we are also not the same as iceland in many scenarios.

As long the policies continue to be prudent there if the slow down hits. there might be some defaults. but as long there is no run on the banks the general economy will remain intact.

[propertyhans]

look at the contributor bio. At the same time, the author also predicts that there is a bubble in Canada, Australia, Nordic countries, China, emerging markets, Web 2.0 startups, U.S. higher education, and more........like that everybody can also predict future. Another attention grabbing contributor.

[Trevortan]

look at the contributor bio. At the same time, the author also predicts that there is a bubble in Canada, Australia, Nordic countries, China, emerging markets, Web 2.0 startups, U.S. higher education, and more........like that everybody can also predict future. Another attention grabbing contributor.

The contributor is a bear writer. Almost everything he writes is negative about the global market. Bears everywhere

[bargain hunter]

he's bullish on Japanese stock market. today nikkei is currently losing almost 500 points, lost 3% following the dow.

The contributor is a bear writer. Almost everything he writes is negative about the global market. Bears everywhere

[thomastansb]

The article only states private condominium of 1 to 1.2M. More than 80% of the people stay in HDB and most people bought at 100 to 300k. What a lousy article.

One thing other than the talk abt crash. the article never mention that face iceland crash was caused by the government and businessman taking huge risk and the citizen borrow to the hilt.

with all the cooling measures. as well as the LTV and TDSR limits would limit the exposure of the banks. Also the goverment have been prudent and thats why we need to have a strong reserver to back it.

on the surface the article try to draw parallel of iceland n Singapore but we are also not the same as iceland in many scenarios.

As long the policies continue to be prudent there if the slow down hits. there might be some defaults. but as long there is no run on the banks the general economy will remain intact.

[k00L]

There is not much original insight - what is presented is basically a meshup of previous articles from various sources. There are circumstances that put Singapore in a much stronger position that iceland e.g. fiscally sound, +ve current account, local banks are very well capitalized, highly liquid

Mr Tharman is keeping a close watch on Singapore banking and financial industry. We can ask our MPs to pose this question in parliament for an official answer

[minority]

The article only states private condominium of 1 to 1.2M. More than 80% of the people stay in HDB and most people bought at 100 to 300k. What a lousy article.

Yeah like i say this is 1 bias and not well research articles. Also Iceland downfall was due to government overlevarging and the fall of lehmen and bear trigged a default.

Singapore on the other hand are very careful with its expenses. ensure a solid reserve as well as many levels of protection.

Oh.. who is it I keep hearing Some C guy keep wanting to "raid the reserve?"

[k00L]

look at the contributor bio. At the same time, the author also predicts that there is a bubble in Canada, Australia, Nordic countries, China, emerging markets, Web 2.0 startups, U.S. higher education, and more........like that everybody can also predict future. Another attention grabbing contributor.

He can claim bragging rights if any one of these come true, and then put on his bio that he predicted this and that... so lame

[oops]

The trend seems to be back to basic nowadays.. Govt seems to be trading excess growth for votes.

[minority]

The trend seems to be back to basic nowadays.. Govt seems to be trading excess growth for votes.

well the people want slow down they get a slow down.

But actually it will be " This is not the SLOW DOWN I want!!" Correction. People want a no change in life style but without need to work so hard. Yet after all the labour crunch… many will realized they have to become the labour or pay more for the labour they so much looks down on and despise.

[minority]

well maybe good to slow and crash. then many in this forum who missed the boat can board. but when the crunch time comes will see who is man enough to board.

Also without a crash people don't seem to think all we have could be transient. maybe after a crash people will appreciate and value what we have more.

[RCT]

Let's just hope that whatever the government have done will prevent a meltdown similar to what happen in Iceland. If that happen, it will affect everyone and not just those property owners. So seriously, let's hope that day will not come.

[limfc]

source: http://app.mof.gov.sg/reserves_sectionone.aspx
============================

Q5. Why does the Government not disclose the overall size of our reserves?
MAS and Temasek publish the size of the funds they manage. As of 31 March 2013, the Official Foreign Reserves managed by MAS was S$320 billion, and the size of Temasek’s portfolio was S$215 billion.

============================

so, i think dun need worry too much ah, ah gong has enuff moola for small / minor setback?

[oops]

Does anyone know how deep is Temasek reserve. What are those small property players n developers to them? The key for govt now is to win votes.

[oops]

http://m.sbr.com.sg/residential-prop...op-21-23b-year

Capital appreciation days may be over.

[eng81157]

Let's just hope that whatever the government have done will prevent a meltdown similar to what happen in Iceland. If that happen, it will affect everyone and not just those property owners. So seriously, let's hope that day will not come.

the glaring flaw of the commentary is to analyze the two countries as isolated economies and consequent conditions/factors.

case in point, iceland itself is not connected extensively to the global economy, unlike Singapore. secondly, the characteristics of our economy and industries are not exactly similar - they export fish, we export semicon chips and petroleum products.

while the article is not hogwash, it definitely isn't as critical and insightful as some may think or claim. verdict: useful to know, but inconsequential

[sabian]

Worse than A Levels Econs standard. Cut and paste effort.

[princess_morbucks]

http://www.channelnewsasia.com/news/....html?cid=FBSG

Channel NewsAsia ‏@ChannelNewsAsia 7m

Responding to a Forbes article, Monetary Authority of #Singapore says Singapore is not facing a credit bubble http://cna.asia/1eGblgq



SINGAPORE: The Monetary Authority of Singapore (MAS) on Tuesday said Singapore is not facing a credit bubble that puts the country or its banking system at any risk of crisis.

This was in response to media queries after a Forbes article claimed that Singapore is facing a dangerous credit bubble, fuelled by ultra-low interest rates.

The article cited several risks including Singapore's ratio of household debt to GDP, rising property prices and potential crisis in the banking system should non-performing loans increase when interest rates start to normalise.

The lengthy article dated January 13 was titled "Why Singapore's Economy Is Heading For An Iceland-Style Meltdown." It was written by a contributor who claims to be an economic analyst.

The MAS emphasised that serious observers and investors are not in doubt about Singapore's financial health.

On the unusually low global interest rates, the MAS said it is clear that they have stimulated credit growth and an increase in property prices in recent years.

However, decisive steps have been taken to cool property demand and prevent excessive leverage.

The central bank also highlighted three facts which it said 'stand out clearly'.

First, the property market is now stabilising and new housing loans have also been declining.

Private home prices in Singapore rose by one per cent in 2013, with a 0.8 per cent decline in the fourth quarter. This is after a three per cent price increase in 2012 and annual increases averaging 12 per cent per year during 2010-2011.

The MAS added that new housing loans fell by 35 per cent on year in Q3 2013.

Second, household balance sheets are on the whole strong and property asset values are significantly higher than the debts incurred.

The MAS explained that "the average loan-to-value ratio of outstanding housing loans stands at a healthy 47 per cent as of Q3 2013, implying a large buffer in asset values”.

Lastly, the MAS said Singapore's financial system is robust.

It cited a recent assessment program by the International Monetary Fund that showed Singapore's financial system would remain sound even under severe stress scenarios which include a sharp increase in interest rates - together - with a steep decline in property prices.

The MAS said Singapore's banks are resilient, with strong financial and capital positions.

The MAS said Singapore's triple-A rating from all the major rating agencies is not an aberration and that it attests to the country's economic and financial strength, including its sizeable foreign reserves.

- CNA/fa

[relax88]

Mas come out this statement, make many bears angry

[RCT]

Mas come out this statement, make many bears angry

此地無銀三百兩...................

[gemstone]

Tharman barred more people from joining the life debt slaves by introducing debt ratio, while those already carrying those burden continue to pay lor even with capital depreciation. If this don't give the desired results, expect more curbs on foreigner ownership lor (temporary bullshit) That's the game.

[Ringo33]

The fundamental difference between Singapore and Iceland is that Singapore is running a ship with budget surplus and Singapore is still country of saver rather than borrower and thats the reason why Singaporeans can still afford to buy property even with 40% down payment.

Also Singapore is a country that has got high number of expats and foreigners which will help support the pricing of property, unless we have reason to believe that suddenly Europe and USA will slash the income tax policy and economy will start to grow at high single digit.

Many analyst fail to understand that Singapore government doesnt run this country like their, PAP run this country like a company and thats the reason why Singapore can become Singapore today.

What surprise me is that the same analyst doesnt even mentioned HK in the same report.

After what Temasek did to Muddy Waters, I am sure many will be trying to proof that they are better.

[Arcachon]

Iceland’s jailed bankers ‘a model’ for dealing with ‘financial terrorists’

http://rt.com/op-edge/iceland-bank-sentence-model-246/

http://www.youtube.com/watch?v=5R7DczXyIcA

[Arcachon]

http://www.youtube.com/watch?v=YH0_JQW--gc

[bargain hunter]

http://en.wikipedia.org/wiki/Jesse_Colombo

author is a 27 year old young boy.

and gahmen responded to him.

[oops]

Just like musical chairs. Once music stop, the standing will take d burden.

[propertyhans]

http://en.wikipedia.org/wiki/Jesse_Colombo

author is a 27 year old young boy.

and gahmen responded to him.

Sigh. The boy got what he wanted. Now more people will click and view his articles. And then he can demand higher fees for his anal.. analysis.

[stl67]

Mas come out this statement, make many bears angry

Yah lor...Iceland, Greece, Spain, Italy are so badly manage....

[eng81157]

http://en.wikipedia.org/wiki/Jesse_Colombo

author is a 27 year old young boy.

and gahmen responded to him.

it is not the age of the author that mattered, but the platform from which the article was released. Forbes is has global repute and so there is a need to refute flawed analysis.