dinarpmkum

The public is presumably aware that virtually all western economies are drowning in sovereign debt -- a problem that grows worse as the clock ticks.  Nothing going on in Europe or the US (count Japan in there too, though they are not thought of as 'western') changes the dynamic of spiraling out-of-control debt and sluggish, if not collapsing, economies. States within the US have their own problems.  There is no way for California or Illinois to avoid bankruptcy and several other states are right behind them. But, in all of this, we have forgotten about our cities.  Almost without exception, American cities are headed down the road to bankruptcy.  Their problems are similar to the problems of the states -- public pension and health care promises that have never been properly funded.  We are already seeing policemen and teachers being laid off so that comfortable public employees can retire at twice the national average income or more.  Expect more of that un...

Was back in Ipoh for a memorable weekend for my alma mater's Centennial Reunion Dinner, what a blast. Julie Song from Indulgence "instructed" me to visit her new place called "burps&giggles" (its exactly behind the famous Kong Heng, house of mirrors, in old town). I will just let the pictures tell you the story, its easily the loveliest, most rustic, romantic cafe  I have ever come across. So, for your next trip, besides Ipoh taugeh chicken, Hakka mee, beef noodle, dry chicken curry nasi kandar @ Yong Suan, Funny Mountain taufoofar ... you should add burps&giggles to your Must Go To list. the entrance nostalgic knick knacks all over the place  my lunch, bam-bam burger with chunky fries (with melted cheese and truffle oil)  go through the backdoor and you have a quirky yet sublime place called the "lazy lane", great atmosphere to unwind and enjoy an environment just like the 40s and 50s "concubine lane" every corner, every angle is a p...

Higher education claims a higher and higher percentage of the nation's resources.  No longer the land of the underpaid, it is routine for administrators to make high six figure incomes and many university presidents make well over seven figures.  Sounds like Wall Street, only better.  The work hours typically include six months vacation every year.  Not a bad deal. But not good enough, apparently, as colleges and universities demand more and more with higher tuitions and higher expenditures from government at all levels. One of the more insidious parts of this disgraceful situation is the expansion of student loans by the Obama Administration.  The main thrust of this is to increase the tuition levels at all schools to take advantage of this new source of funding.  Knowing that students can borrow, schools have created internal departments that are designed to educate and encourage students to take on debt so that the schools can further boost their own tui...

General election is around the corner. External environment was not so promising, following the no ending of European debt crisis, world economic slowdown, and recent tension between China and Japan. I believe all of these would be some key factors being taking into consideration to formulate the Malaysia Budget 2013. Goodies? Bonus? Cash handout? Themed as " Prospering The Nation, Enhancing Well-Being of the Rakyat: A Promise Fulfilled ". Our prime minister, who is also Finance Minister, tabled the 2013 Budget at Dewan Rakyat yesterday. Over here, Finance Malaysia blog would only touches on some key points: Economic growth projected to expand between 4.5% - 5.5% Federal Government's revenue in 2013 is estimated to increase to RM208.6 billion Continuation of BR1M of RM500 to households earning not more than RM3,000 a month and also extended the aid to cover a payment of RM250 for single unmarried individuals aged 21 and above, earnings not more than RM2,000 a month RM 1...

There is an old joke about the doctor, lawyer and the economist, all three, stranded on a desert island with nothing to eat.  They stumble upon a tin can of vegetables.  How do you open the tin can?  The doctor proposes to give it aspirin, the lawyer says 'file a brief.'  The economist?  The economist says: "assume that we have a can opener." Economists have a well deserved reputation for assuming away difficulties.  Simon Johnson's article in today's NY Times is a good example.  Johnson correctly points to the US National debt as very serious problem that needs a solution and needs it now.  His article suggests that there is an easy solution.  In Johnson's own words: "And American politicians could find other ways to restore federal government revenue to where it was in the late 1990s while also bringing health care spending under control." Sure, just bring me that can opener.  How does one "bring health care under control."  Johns...

Many of you would have seen this already. Trust the English to put a skit up thats relevant and makes fun of the evolving English language. Smart and sassy, 15m viewers cannot be wrong. Please note that Orange is a telco service provider in the UK.

Many people pass on everyday, some famous some ordinary folks ... everyone will leave their own legacy and their influence to people around them. No one is more important or less so than the next one. Andy Williams was way popular way before I was even born. I think his passing deserves a mention cause I have rarely read a bad article about him, and he performed very well for a very long time. A gifted crooner, at a time when crooners were highly respected. A gentle soul whose voice brought us memories of wonderful melodies and lyrics for decades past and decades to come. ------------------- Andy Williams , whose soothing baritone and relaxed performing style made him one of America's top pop vocalists and a popular TV variety-show host in the 1960s when he recorded hits such as "Moon River" and "Days of Wine and Roses," has died. He was 84. Williams, who announced in late 2011 that he had been diagnosed with bladder  cancer , died Tuesday at his home in Branson...

Riots are now turning violent in Greece and Spain.  Police surrounding the parliament building in Madrid last night were seen on videos beating demonstrators.  The Merkel-Sarcozy-Hollande-Geithner-Bernanke-Draghi policy is bearing fruit.  Civil society is breaking down in Greece and Spain.  The NY Times has a lengthy, front-page story yesterday about formerly middle class Spaniards foraging for food from garbage trucks.  That this is becoming a common scene in Spain was the thrust of the article. This will only get worse.  Unemployment and starvation is the ultimate outcome of the modern welfare state and it is now on display in the Eurozone with more yet to come.  Spain is still dithering about whether to alter 'early retirements' under their social security schemes.  This would be funny, if it weren't tragic.  Who is going to fund those who are already retired?  One might ask a similar question in Greece.  Are American and German ...

Have you seen this? If you haven't been to an IMAX movie you haven't seen this. Obviously this documentary uses a lot of simulation footages but the realism is palpable. You do feel you could have been in the spaceship ... but to be cooped up for 7 months to travel to Mars is no joke, you probably need some sedation drugs to hibernate or else you will go crazy in an enclosed space for a prolonged period. Still, we have figured how to get to Mars but how to get back? Its a huge lot further than the moon. But one can already see and feel the magnificent achievement from the joyous faces of the people at NASA. Its a wonderful feat by fellow planetarians to just get that far. Now, when can AirAsia get us to Mars for RM1.99??? Actually, travelling to Mars as a commuter is not that far away. Have you heard of the sharpest guy in town called Elon Musk, co-founder of PayPal, sold it and now is running Tesla the magnificent electric car, he has a company SpaceX which aims to transport p...

Yes, it seems like I am cooking all dishes for pregnant women, but somehow I love these dishes. I have tried and tested and refined this so many times till I got it right. Somehow, many seems to be fearful to try to cook this, I hope this will demystify the dish. Ingredients are relatively few: Old ginger or Muntong ginger (about the size of a hand) Good sesame oil One pig trotter (get the front legs not the hind legs as the latter is way too fatty) One packet of black beans One small bottle of sweetened vinegar One large bottle of black vinegar Gula melaka 4 eggs Get your pig trotters from Sanbanto if you can, they have very good quality pork there. Start with 3 pots. One to boil the trotters (a must) to rid of the impurities or else you will get a stinky smell. Dry roast the black beans for 10 minutes till all are crackling and split. Boil to make hard boil eggs. Once you see sufficient impurities on the trotters pot (after 10 minutes or so), remove and wash clean, set aside. Now boi...

Shila Amzah, who knew .... against top singers from other Asian countries, and winning comfortably at each round. She won over the 9 esteemed judges made up of well known producers and major top singers. OMG, her rendition of the two famous Mandarin songs, Forever Love and Zheng Fu, were delivered in immaculate intonation and the emphasis on the words were appropriate and meaningful. To win over the mostly China audience and judges must say a lot as there were other Chinese artistes as well. Loved the costumes as well. Well done! ND Lala must be so proud!

Angela Merkel says the right things and does the wrong things.  As a conservative leader, she and her conservative sidekick Nicolas Sarcozy, led the Eurozone down the bailout track while loudly proclaiming that responsibility for foolish behavior would not be rewarded.  But rewards were soon forthcoming from Merkel and Sarcozy.  Merkel still strikes the pose of frugal leader while steamrolling Germany toward the largest bailout in world history. Merkel talks about saving the Euro.  The issues in the Eurozone have little or nothing to do with saving the Euro.  The Euro is doing fine.  What is not doing fine is the fiscal situation of the Euro member states.  They are all going bankrupt, including Germany.  What currency is in place is of little importance if you cannot pay your debts and the Eurozone cannot pay their debts.  What they have is a temporary reprieve and a lot of conversation.  The endgame in this is all too obvious.  Bu...

We've all heard about the joy of giving, but what if the money that we are giving away is someone else's money?  Wow! What a thrill.  That's the attitude of the Charlottesville City Council as they parcel out taxpayer money with little or no thought.  After all, they reason, these are only small amounts of money.  There is, of course, no concern by the City Council that the money that they are giving away so blithely is not their money, but taxpayer money.  Here is the URL for this amazing story: http://www2.dailyprogress.com/news/2012/sep/22/last-minute-funding-vexes-council-ar-2226729/ The attitude expressed by City Council members in Charlottesville is typical of liberal attitudes everywhere towards taxpayer money.  Dole it out to your friends with reckless abandon.  Just multiply all the numbers in the article by 10 million and you have the US government, the government of California, Illinois, Greece, Spain, Italy, etc.  It is easy to be char...

You would think that the US economy was booming and all was right in the world if you are a regular listener to the major TV and radio outlets in America.  Recently, I was in Eastern Europe and was pleasantly surprised to read in foreign newspapers the issues that Americans face in the upcoming election -- the economy, foreign policy, the deficit, etc.  Back home, these issues don't seem to be of any interest to the media.  Such issues are of interest to voters, but they rarely see them discussed on NBC, ABC, public TV and the like. The big issues, according to US media, is whether or not a presidential candidate is willing to release their tax returns from decades ago or sidebar comments the candidates may have made before they were candidates that have absolutely nothing to do with any of the important issues.  The media is in the "gotcha" business.  It isn't just that they favor one party or another, it is more that the media doesn't really seem interested in...

Jerry Brown's $ 28 billionbudget gap in California turns out to be a mirage.  Brown considered the $ 28 billion number a crisis for California, when he strode into the Governor's mansion.  A blue ribbon committee founded by Democrat and Obama advisor Paul Volcker has studied the budget gap in California and come up with a different number, or should I say, a range.  The outcome of that study is discussed in today's New York Times in an article by Mary Williams Walsh.  The actual California budget gap, according to the Volcker committee is somewhere between $ 167 billion and $ 335 billion.  Ooops! Even this is a dramatic understatement of California's plight since the combined unfunded liability of CALPERS, CALSTERS, and the nine largest county pension funds in California is well in excess of $ 1 Trillion, which is a multiple of the assumption being used by California's state government in assessing the budget gap.  So, the committee is trying to be Californ...

Before jumping into the bandwagon of private retirement schemes (PRS), we should understand the PRS framework first. What is the structure behind the scene? Does our invested money in safe hands? Who are the regulators? These were the few typical questions we should find out. No worries, all of these will be answered here... (yeah, give us a "Like" ) Manufacturer? PRS are offered by approved PRS Providers . Each PRS will include a range of retirement funds from which individuals may choose to invest in, based on their own retirement needs, goals and risk appetite. Book-keeper? The PPA functions as a record keeping and resource centre for data on all transactions performed by contributors. It will facilitate transactions and promote efficient administration. The PPA will also act as a resource centre for data and research relating to the PRS industry in Malaysia. Safe-keeper? The assets of each PRS will be segregated from the PRS provider and held by an independent Scheme Tru...

Wherever you look, the American financial service sector is retreating.  The decline of US pre-eminence in world finance began with the regulatory overkill of Sarbanes-Oxley legislation in 2002, but the real death blow was the Dodd-Frank Act of 2009.  The future will be in Hong Kong, Shanghai, Singapore.  London may survive this, but that remains to be seen, but New York is definitely fading.  Basically, American financial strength is being legislated into weakness. You wonder why?  Have stocks done poorly.  On April 24th,1995, a scant 17 years ago, the Dow Jones Industrial Average closed at 4,303.  Yesterday, the DJIA closed at 13,577, about 3 1/2 times as high as the 1995 level.  (This result includes the 2008 financial crash).  Is that bad?  Has the average investor been screwed?  Is this why pension funds are in trouble?  The market hasn't delivered enough?  How much is enough? Why this rush to destroy American financi...

Like almost every public pension plan in America, the Chicago teachers' public pension plan is not going to survive.  Mary Williams Walsh's article in today's New York Times lays out the numbers.  With just over $ 10 billion in assets the fund is paying out more than $ 1 billion more than they take in every year.  The end is clear. Why is this the case?  Because it is very easy for politicians to make promises of things that they will do in the future, while providing benefits right now.  Social Security operates on this premise.  Give the benefits now, pay for them later.  But, of course, they never pay later.  That part is simply kicked down the road. We have already witnessed pension funds cutting the benefit payments for folks that have already retired.  We are about to see a wave of such actions.  The Chicago teachers fund is in much better shape than the Illinois state employee fund.  So, guess where that one is headed. The cr...

Finally got my hands on a box of La Escepcion, Selected Finos Panatela. Heard so much about it for the past few months and wrangling here and there for just one box.  (not my fingers if you were wondering) In 2011, Habanos brought back an old Cuban brand La Escepción. as an Regional Edition for Italy. The size is a 6 1/2 x 38 Panatela called Selectos Finos, a size that had never been offered by La Escepción prior. La Escepción is one of the oldest Cuban cigar brands with its introduction by owner José Gener sometime in the late 1850s. It was always thought of as a sister brand to Hoyo de Monterrey, mostly because Hoyo was also started and owned by José Gener, albeit after the La Escepción brand. La Escepcion     Year of foundation:  1850's decade Tobacco Country:  Cuba Tobacco Procedence:  Vuelta Abajo Factory:  La Corona First of all, we may remark a very funny anecdote. The name of these cigars is La Escepcion, but had to be La Excepcion (...

Liz Alderman's article in the New York Times today, "Euro or No, Economics of Everyday Greek Life is Eroding" provides a glimpse into the future of the western economies.  Economic and civil order has broken down in Greece.  The rising popularity of the neo-nazi party (now at 18 percent of the electorate) is gathering in the fruits of the collapse of the Greek welfare state.  In time, democratic government will collapse in Greece to be replaced by one of the extremes.  The so-called centrist governments cannot deliver and will not survive. Greeks expect the promises of past governments to be honored.  That is an expectation that has no hope of reality.  Their frustrations are spilling over into everyday economic and political life.  The beginnings of a similar breakdown are evident in Spain, Portugal and Italy.  No government can survive by imposing a program of austerity.  Their citizenry still believes the lies that they have been told for ...

There was a great article in The Star a few days back which had a couple of fund managers being negative on Astro IPO. When I read further I was shocked at the valuation. At an indicative price of RM3.60 (this is the price that has been set for bumiputra investors) and based on its earnings of RM629.6mil for its financial year ended Jan 31, 2012 (FY12), this translates to a price-earnings ratio of 38 times.  I have written that I like Astro IPO as a dividend play, BUT at RM3.60, the price-earnings ratio is more than 30 times and the dividend yield is only 2%. Now this pisses me off. I have been defending AK's strategy to delist and relist as they were still within the rules operating at the time. You come back with a dividend play scheme and if its really RM3.60, you can go fly wau. Luckily it was an indicative pricing, today's article came out with firmer details.  Astro Malaysia Holdings Bhd, a pay-TV firm, has set an indicative price range of 2.70-3.00 ringgit per...

OK it seems I have nothing much to say about the markets over the last couple of weeks. Share with you all another minor passion of mine, cooking - freestyle. I hate recipes. If I like something, I will try and decipher and breakdown the dish and put them together my way. For more traditional ones, I will get my mum to give the basic ingredients and away I go to come up with something I really like. Today I felt a stirring and yearning for Drunken Chicken Ginger Broth. Its easy yet so satisfying, and heaty. Try it, you will love this version: Unless you brew your own rice wine, any Hua Tiew wines will do, all supermarts have them, about RM10-14 per bottle, try to get two different brands for "depth". Use only drumsticks and thighs, chop into pieces. Here is where it gets tricky, USE only Buntong Ginger (Muntong Keong), it costs a huge premium to normal ginger and is only available at morning markets. The ginger is so refreshing, you can even bite into it like a fruit to enjoy...

Borrowing for investment may be a good idea.  Debt is not a bad thing.  It can be a good thing.  It depends upon what you are borrowing for. Borrowing to finance a new business or to expand an old one is a good idea.  Borrowing for investment purposes is generally a good idea. Borrowing is generally a bad idea if you simply borrow to finance consumption that you cannot otherwise afford.  Eventually 'consumption borrowing' will lead to disaster since nothing is taking place that can pay off the debt that is being created.  This is the type of borrowing that is taking place in western economies today. As much as politicians talk about 'investing in our future,' what they invariably mean in practice is financing consumption for a favored part of the electorate.  Rarely if ever is modern government spending intended to finance investment of any kind.  Paying more money to your favorite public employee, including teachers, is not a form of investment -...