2. Short selling is not speculation. It is manipulation of the market with almost certain success to be had. Other investors or buyers would lose money as they would be left holding the devalued shares or money or whatever.
3. Malaysia had banned short selling in the past. We regarded it as unfair and damaging to genuine investors.
4. I read in the Financial Times of 24th May that “Europe plans ban on naked short selling”. Angela Merkel, the German Chancellor has unilaterally banned “naked shorting of Eurozone sovereign debt instruments and shares of 10 German banks”. This has caused a “financial turmoil” meaning the short sellers are unhappy that they cannot manipulate the market anymore. Merkel asked how people can sell something they don’t have.
5. The Europeans and the Americans are still hoping to keep all the “financial products” which they must know are what precipitated the current crisis. They are still refusing to review, modify or discard the monetary, banking and financial systems that they had devised and which they abused in order to get rich quick.
6. If we in Malaysia or other developing countries were to have this state of mind, then they would say that we are in a state of denial. And some locals will also echo their words.
7. I have no say in the Government but I think Governments should take note that not copying the West is not a sure recipe for failure.
8. In fact we should not consult Western people in the running of our country. They don’t know our situation and their advice would not be good for us.
9. And we should note that even when they know a lot about the affairs of their own countries, they often bungle things. It is they who messed up the world’s finances.
10. We are not always right of course. But I think we know our situation better than foreign consultants. We know our situation and the character of our prople. What may be good for the West may not necessarily be goof for us. Besides we know now that the very developed west can make very many horrible mistakes.
11. I will leave it at that.
In the late 1980s, Bank Negara under Governor Jaffar Hussein, was a major player in the forex market. Its activities caught the attention of many; initially, Asian markets came to realize the influence Bank Negara had on the direction of forex market. Alan Greenspan acting the Federal Reserve chairman later realized Bank Negara’s massive speculation activities and requested the Malaysian central bank to stop it.
Salam Tun yang dihormat,
Yes, I agree with your statement that “not copying the West is not a sure recipe for failure.”
Just one example- Bankruptcy of the west’s Lehman brothers with their Mini Bonds losses had affected not just thousands of investors in the west, but also people in South East Asia who had invested in them encouraged by their local banks. Just because banks in the west back then find that sub-prime investments are sound and okay, that does not mean we should follow blindly. As a result, hundreds of people in Singapore for example, had lost their investments, some their life savings. And can you believe it that some of these investors invested blindly, without fully understanding their money goes into sub-prime ? Yes its a fact.
And that is just one example out of many many others.
Yes blindly copying the West is not the smart thing to do.
Wassalam
Syed Ian
website: kuih raya
http://www.kuih-raya.com
Salam Tun.
Allow me to put on record the headline news from Bernama News on the external trade deficit under the ‘liar & slanderer’ Anwar’s short tenure as Finance Minister, for mr. Wenger J Khairy’s attention/perusal.
1) 26. 01. 1996 -Malaysia records RM9.8b trade deficit in Jan. to Oct. 1995.
2) 12. 04. 1006 -Higher imports worsen trade deficit in 1995. (this also implied M’sia experienced trade deficit in 1994)
3) 25. 02. 1997 -Trade deficit for M’sia in 1996 lower than 1995.
4) 07. 02. 1998 -Malaysia records RM0.4b surplus in external trade in 1997. (the surplus arise due to last few months after Anwar sacked all recorded trade surplus)
5) 05. 02. 1000 -RM6.7b trade surplus in Dec. 1998, RM58.4b in 1998.
6) 06. 11. 2002 -Trade surplus for 59th consecutive month since Nov. 1997.
The same news were reported in the New Straits Times and the Star then. The above facts contradicted your statement, and please stop all your hero-worship of the worst culprit called Anwar.
I couldn’t open the file which you’re referring (Wenger Khairy 07/06/2010 at 1.42am), just to check in case you misunderstood your own reference.
Salam Tun.
Allow me to put on record the headline news from Bernama News on the external trade deficit under the ‘liar & slanderer’ Anwar’s short tenure as Finance Minister, for mr. Wenger J Khairy’s attention/perusal.
1) 26. 01. 1996 -Malaysia records RM9.8b trade deficit in Jan. to Oct. 1995.
2) 12. 04. 1006 -Higher imports worsen trade deficit in 1995. (this also implied M’sia experienced trade deficit in 1994)
3) 25. 02. 1997 -Trade deficit for M’sia in 1996 lower than 1995.
4) 07. 02. 1998 -Malaysia records RM0.4b surplus in external trade in 1997. (the surplus arise due to last few months after Anwar sacked all recorded trade surplus)
5) 05. 02. 1000 -RM6.7b trade surplus in Dec. 1998, RM58.4b in 1998.
6) 06. 11. 2002 -Trade surplus for 59th consecutive month since Nov. 1997.
The same news headlines were reported in the New Straits Times and the Star. The above facts contradicted your statement, and please stop all your hero-warship of the worst culprit called Anwar.
I couldn’t open the file which you’re referring (Wenger Khairy 07/06/2010 at 1.42am), just to check in case you misunderstood your own reference.
Dearest Tun,
May I…
wenger khairi june 7,2010
Your explanation is impressive,and I am convinced that you are the big minded type unlike most of Tun’s supporters who are mostly small minded influenced by Tun simplistic views.By the way…
1- How come when we achieve surplus you attribute to the Finance minister,but when we don’t you attribute it to Tun.Why the double standard?.For your information Anwar is the finance minister since 1991.
Doesn’t it occur to you that we were only able to achieve this surplus in 95,96 after Tun has successfully build the foundation, after aggressively selling Malaysia and doing the right things since taking office?That Rome was not built in a day?
2- That the capital flight became significant only from 2002 onwards.Why not once the controls were introduced in 1998,why only 6 years later which also happen to coincide with the year Tun announced his resignation?Has it got to do with the lack of confidence the investor has in his incoming successor ?After all most of these capital flight happen during the tenure of our Bapa Kegemilangan Pak Lah.You should be blaming Pak Lah instead of Tun,again why the double standard?Is this the way big minded people behave?
3- Wenger boy,there are two sides to everything.Micro-macro,positive-negative,pro-cons,etc.You talk in detail of short selling from the micro aspect which Tun himself will admit that it is complicated,and that you are indeed a genius.But as a PM one is only concern on the macro aspect-which is not really so complicated.That when speculators pool their resources together and short in very huge quantity,the effect on the market can be disastrous…I think it’s common sense isn’t it?
4- Tun has been successful in his political career mainly because of his simplistic view of things.Which is actually an asset for anyone who want to be successful in their carriers too.Wise man say the formula to be successful is just the simple KISS-and if Wenger doesn’t know , stands for Keep It Simple,STUPID!
Tks Tun.
SALAM KASIH DAN SAYANG
AYAHANDA RAKYAT TUN
IZINKAN,
By DinKakYah on June 9, 2010 2:04 PM
Tun tersayang..
on lighter note.. do not start a sentence with ‘and’. Pakar bahasa tak suka.
PAKAR BAHASA KAMI SI AJIS… TULIS ‘SHORT-CUT’…JIMAT RUANG DAN MASA.
DAN DAN PAKAR BAHASA ‘LONG AND WINDING’ TAK SUKA, KENAPA PULAK YE?… HE HE
ALFATIHAH, AMIN
Ps. Laughter is still the best medicine
Salam Tun.
Allow me to put on record the following news headlines from Bernama News on Malaysian external trade during & after Anwar’s era as Finance Minister, for Mr. Wenger J Khairy’s attention/perusal:
26. 01. 1996. M’sia records RM9.6b trade deficit in Jan 95 to Oct 95
12. 04. 1996. Higher imports worsen trade deficit in 95 (this implied trade deficit in 94 as well)
25. 02. 1997. Trade deficit for M’sia in 96 lower than 95
07. 02. 1998. M’sia records RM0.4b surplus in external trade in 97 (surplus arise due to last few months of 97 after Anwar was sacked all recorded surplus)
05. 02. 1999. RM6.7b trade surplus in Dec 98, RM58.4b in 1998
06. 11. 2002. Trade surplus for 59th consecutive month since Nov 97
Similar news headlines were reported by the New Straits Times and the Star at about/same dates as the above.
The biggest things that happened during the ‘liar & slanderer’ Anwar’s short stint as Finance Minister were:
1. Create his inner circle of cronies (Azmin, Zahid Hamidi, Rahim Ghaus, Abrar, Lankhorst, Nik Hasni, Sukma, himself,…..) become OKB (orang2 kaya baru), then lied to M’sians & the world “Dr M is corrupt & practice cronyism”, which his ‘I can fool them all of the time’ followers still foolishly believe
2. Ensure the then DPM (the late Tun Ghaffar) ‘kalah tanpa bertanding’ for the Dep UMNO President post by not providing any budget to Kementerian Luar Bandar & by distributing truckloads of sweets to Umno divisions (a practice which the budak ‘kurang _jar (KJ) & ex-MB from S’ngor did during the last UMNO Youth tussle)
3. Became the ever willing crony & best of friends with the Yankees
TQ
Tun tersayang..
on lighter note.. do not start a sentence with ‘and’. Pakar bahasa tak suka.
Tun,
There is no perfect finacial system yet. We shall agree to it.
The true economy concept is there is money when there is production and work.
However modern economy could mean one make billion of ringgit by clicking computer button.
That’s why o pakcik in kampung can sweat for the whole day earning RM50 whereas our so call degree, phd holder could make 1 million ringgit in less than 1 hour without even need to have a office.
Inilah creation barat. Is it good?
Whatever the answer is, we have adopted the system because this is how the world runs
Kita tak boleh menyingkirkan diri di dunia kita sendiri dan syok sendiri.
I believe we should take the good points,improvise it and may be give our input for the better of the world. We may contribute, we may thank the west for their contribution but do not ever bow to them as what Tun said. However it is not nice to condemn them.
A wise man says, make the best out of it. Make more friends less enemies.
We shall all contribute to the world.
Riverman
Assalammualaikum.. Apa khabar Tun;
Tulisan Tun berkesan membuka minda rakyat.
PASARAN SAHAM
Sistem pasaran saham ni ada lah system Kapitalis, diamalkan Amerika oleh KAUM PEMODAL, yang sebahagian besar adalah terdiri daripada orang Yahudi.
SHORT SELLING dalam pasaran saham dibenarkan dalam system Kapitalis, iaitu kaedah dan idea untuk MENGAUT KEUNTUNGAN, dengan cara MANIPULASI system dan manusia; untuk mencari wang panas bagi mengumpul kekayaan kaum Pemodal.
Sistem Yahudi ini menjadi ikutan seluruh dunia termasuk Malaysia, kecuali GERMAN, yang dari dulu tidak suka mengikut ajaran dan telunjuk Yahudi.
SISTEM KAPITALIS
Dalam sistem Kapitalis, kekayaan dicari dengan kaedah MANIPULASI, melalui pelbagai cara, iaitu manipulasi menggunakan kepintaran untuk mengaut keuntungan tanpa perlu bekerja kuat, tetapi menggunakan tenaga orang lain (dengan sedikit insentif) untuk mencari kekayaan.
Akan tetapi seluruh daya pemikiran dan idea, ditumpukan sepenuhnya mencari jalan bagaimana untuk mengaut keuntungan dengan cara manipulasi keatas orang lain, keatas sistem dan KEATAS APA SAJA SEBANYAK MUNGKIN.
****Sistem Multi Level (MLM) yang mirip system PIRAMID adalah antara contoh manipulasi keatas SYSTEM dan MANUSIA ciptaan Kapitalis yang amat popular dan digemari di seluruh dunia (selain manipulasi Ekonomi, Saham dan Perdagangan Matawang).***
Amalan manipulasi; terutama keatas Manusia ini telah lama diguna semenjak dari ZAMAN PENJAJAHAN Kolonial lagi; yang ketika itu mengamalkan SISTEM PERHAMBAAN (Kunta Kinte) untuk tenaga buruh paksaan secara percuma atau menghisap darah dengan upah tidak setimpal mengerjakan ladang dan kilang milik kaum Pemodal.
PENJAJAHAN BENTUK BARU
AMALAN MANIPULASI keatas pihak lain ini masih diteruskan dalam abad ke20 hingga ke abad 21, iaitu dalam bentuk PENJAJAHAN EKONOMI oleh negara kaum Pemodal yang kebanyakannya datang dari Negara mengamalkan system Kapitalis.
Dengan kaedah lebih lembut, Penjajahan Bentuk Baru ini adalah dalam berbentuk penguasaan ekonomi (tanpa di sedari) melalui pelaburan FDI ke Negara Sedang Membangun yang banyak terdapat tenaga buruh murah.
Sistem ini amat popular dan menjadi ikutan bagi kebanyakan Negara Maju dan Negara Membangun lain. Pelaburan INSENTIF BURUH ini adalah satu kaedah bentuk baru MANIPULASI keatas pihak lain bagi mengaut keuntungan dan kekayaan oleh kaum Pemodal.
Kedatangan pelaburan bentuk ini(FDI) amat diperlukan oleh Negara Mundur dan Sedang Membangun yang banyak tenaga buruh bagi merancakkan ekonomi mereka tanpa di sedari bahawa itu adalah satu system MANIPULASI halus yang tersembunyi. Tq Tun.
Ayahanda Tun,
Not only the best of the best speculator and manipulator, they are also the best of the best ACCUMULATOR, of hutang or kekayaan will depend on how much they know about the universal norms and economics indicators.
Dear Tun and Readers,
It is one thing to be slandered. It is one thing for some commentators to claim: ” Your arithmetic are even worse than the minimal economic knowledge that you possess, just explain how you calculate ?”
For the particular person (100% Tun supporter displaying classic symptoms of shooting the mouth off without checking the facts)
Malaysia Trade surplus from 1993 – 1997
Calculated as Export-Import
Source: Jabatan Statistik
http://www.statistics.gov.my/portal/images/stories/files/ArchiveTimeSeries/Akaun_Negara.pdf
Pages 19 & 20
The economy registered a trade surplus of RM 3.5 billion and RM 2.5 billion respectively in 1996 and 1997. Your contention that DSAI did not preside over any trade surplus is not supported by fact.
Not understanding a “long-short” combination belies who you are. Perhaps you need to refer to wiki. As practitioners, we do not need to learn our job from the Internet.
I do not know how you equated the trade surplus into this equation. Trade surplus is a function of the export sector and the import sector. Short selling is about the rules governing the capital markets. For capital markets we look at the Financial Account of the Balance of Payments. Maybe you need to look it up in wiki.
What i was trying to show that like whilst we compete to sell our barang mcm keropok, kereta, kain, kasut dan lain lain in the international market place, we also compete to attract monetary flows to our capital markets. Preventing short selling reduces the liquidity. In the early 1990s, nobody would think that Thailand could attract more money into their capital markets than Malaysia, but right now it happens on a regular basis. The difference between CAPITAL flows into Thailand vs. Malaysia is >USD 100 billion over the last 8 years or so.
I meant to insert the > sign but mistyped the = sign instead. I admire Tun’s supporters including an Acturial Science student that picked it up. Our money is well spent in sending our youth for complicated and expensive courses as they demonstrate that they can add and subtract.
Good morning Ayahanda Tun,
I have posted the star online spotlight for the week especially for sudin, the layman, and Wenger J Khairy, the self-claimed Economist who does not know what is Actuarial SCIENCE, to read by assuming that Malaysians are MELAYU and UMNO, as per the resident population figure by the “lebih kurang” mentality government aka politicians is currently 28 millions people including Sabah and Sarawak…….
Some statistic figures for some countries’ resident population must be included so that sudin and Wenger J Khairy must know before they advice measures that is good for MELAYU to enable Tun Dr Mahathir Mohamad to consider….
**SH..Ayahanda Tun, sudin budak MELAYU tu memang kurang_ajar la, langsung tak kasi muka kat PM MELAYU KE-5 Malaysia KAMI ni, stabbing his SIL from the back. PM MELAYU KE-4 dan anaknya No. 4 pun kena bad-stabbing jugak…..
The Total Resident Population:-
1. The United States: 309,426,000 (309.426 millions)currently.
2. Singapore: 4.48 millions since 2005
3. Hong Kong: 7,026,400 (end-2009)[1] (7.0264 million)
4. China:1,358,650,000 (1.35865 billion) since 2008.
5. UAE, Japan, South Korea and Taiwan are allies to US.
These are 2 MELAYU, acting like advisor to Tun Dr Mahathir Mohamad:-
1. sudin dislike KJ because KJ is kurang_ajar since KJ is clever. sudin is from Johor?
2. Wenger J Khairy said “SHORT SELLING IS BAD FOR CRONY CAPITALISTS AND THUS WE SHOULD BAN IT”.
3. The western countries ban short selling for a short period through “government intervention” since there are many investors who knows sikit2 already claim himself better than Tun Dr Mahathir Mohamad, Mr Lee Guan Yew and Mr Li Ka-sing (Both these Chinese are Teochews, maybe Dr Chua thinks that he is a Teochew, so he assumed his lucky star is shinning brightly (due 2 fengsui kut?) that he is Ka-Ki-Lang to these prominent leaders.
4. Can Wenger J Khairy explain the rationals why Malaysia should follow US by printing more RM?
5. Is RM the most demanded currency in the Globe?
6. By printing more RM will depreciate US$?
7. By printing more RM can weaken Renminbi, the Yuan?
8. Does Wenger knows what is International Trades and its Cultures?
9. Does Wenger heard of Actuarial SCIENCE honours degree?
10.Can Wenger answer the Questions left unanswered at this end of this spotlight?
11.Can Wenger make BNM to print more RM?
12.BNM report directly to Wenger J Khairy, not Malaysia’s Agong?
13.MOD reports directly to sudin, the layman, not Malaysia’s Agong?
Saturday June 5, 2010
What
Salam Tun.
Allow me to rebut the sickly & appalling comments posted by Mr. Wenger J Khairy, the self-proclaimed economic expert (03/06/10 at 12.32pm & 02/02/10 at 11.47am).
1. Malaysia did not achieve even a single year of trade surplus during the ‘liar & slenderer’ Anwar’s tenure as Finance Minister. However one month after he was shamefully sacked (for homo sex), Malaysia had achieved trade surplus every single month until the end of Tun M’s reign. Just like ‘donplaypuks’, ‘rarunasalam’, & others alike, you must be Anwar’s “I can fool them all of the time” followers.
2. The manner you relate ‘perpetual’ deficit budget (?, check your facts, Tun implement for 2-3 years only) to trade surplus, please don’t bother to explain and embarrass yourself further because you don’t know.
3. You don’t even understand the meaning of ‘short selling’, instead what you tried to explain at length is in fact normal share trading and you even created a new word ‘long selling’ (he,he,he…). Have to inform Wikipedia/Oxford on this new word. Please don’t write/refer to us ‘too technical to understand’ because technically there’s nothing difficult in share trading!
4. You challenge Tun M to come up with evidence on short selling manipulation, but are making countless sweeping accusations! You’re making my funnybone tickle itself (he,he,he,…)
5. Your arithmetic are even worse than the minimal economic knowledge that you possess, just explain how you calculate
“So difference between capital flows Thailand vs Malaysia = USD100billion (sic)”, which I presume you picked up from the air.
There are umpteen more sickly & appalling areas to write/comment from your entries, but I’ve enough laughs already. And don’t bother to reply my earlier comment (dated 04/06/10 at 6.42pm) on your entry, because you’ll make yourself look more foolish!
Apa khabar Tun;
Tulisan Tun dapat membuka minda rakyat.
PASARAN SAHAM
Sistem pasaran saham ada lah system Kapitalis yang diamalkan di Amerika oleh KAUM PEMODAL yang sebahagian besar adalah terdiri daripada orang Yahudi.
SHORT SELLING dalam pasaran saham dibenarkan dalam system Kapitalis sebagai satu kaedah untuk MENGAUT KEUNTUNGAN dengan cara MANIPULASI untuk mencari wang panas bagi mengumpul kekayaan kaum Pemodal.
***Sistem Yahudi ini menjadi ikutan seluruh dunia termasuk Malaysia, kecuali German yang dari dulu tidak mahu mengikut ajaran dan telunjuk Yahudi.
SISTEM KAPITALIS
***Dalam system Kapitalis, kekayaan dicari dengan kaedah MANIPULASI melalui pelbagai cara dengan menggunakan kepintaran untuk mengaut keuntungan tanpa perlu bekerja kuat dengan tenaga sendiri untuk mencari kekayaan.
Akan tetapi seluruh daya pemikiran dan ideanya ditumpukan sepenuhnya bagi mencari jalan bagaimana untuk mengaut keuntungan dengan cara manipulasi keatas orang lain dan keatas sistem sebanyak mungkin.
Amalan manipulasi keatas orang lain ini telah lama diguna semenjak dari ZAMAN PENJAJAHAN Kolonial lagi yang ketika itu mengamalkan SYSTEM PERHAMBAAN untuk tenaga buruh paksaan yang mungkin secara percuma atau upah tidak setimpal dan menghisap darah untuk mengerjakan ladang dan kilang kaum pemodal.
BENTUK PENJAJAHAN BARU
AMALAN MANIPULASI keatas pihak lain ini masih diteruskan dalam abad ke20 hingga ke abad 21 ini, tetapi dalam bentuk PENJAJAHAN BARU oleh negara kaum Pemodal yang kebanyakannya datang dari Negara yang mengamalkan system Kapitalis, iaitu dengan cara penguasaan ekonomi Negara lain melalui pelaburan FDI.
Sistem ini amat popular dan menjadi ikutan bagi kebanyakan Negara Maju dan Negara Membangun lain. Pelaburan INSENTIF BURUH ini adalah satu kaedah bentuk baru MANIPULASI keatas pihak lain bagi mengaut keuntungan dan kekayaan oleh kaum Pemodal.
Tatapi kedatangan pelaburan bentuk ini(FDI) amat diperlukan oleh Negara Mundur dan Sedang Membangun yang banyak tenaga buruh bagi merancakkan ekonomi mereka tanpa di sedari bahawa itu adalah satu system MANIPULASI halus yang tersembunyi. end
Dear Tun,
I admire your writing on this issue. Let’s leave it at that. Wenger J. khairy said we would go bankrupt if we ban short selling. Rediculous. How can you ban something bad can bring about bankruptcy to the country? I am not trying to bodek Tun or humiliate you. We are talking sense and some are talking nonsense.
You seem to disagree with Tun’s financial administration of the country in his 22 years as Prime Minister and you admire DSAI for having 2 years of surplus budget during his tenure as Finance Minister. I take the opposite stand. I admire Tun’s financial administration of the country in his 22 years as Prime Minister. He was dynamic, engaging, hands’ on, functional, visionary and most of all he brought development, full employment and prosperity to our nation. We are grateful to him.
Deficit, surplus or balance budget come under macro economic theory. We must set up our premise of what we aim for the country. We aim for full employment without inflation for the country. We prescribe deficit, surplus or balance budgeting depend on the state or condition of the economy at the time. Our national income is divided into spending and saving. Saving is considered leakage. Ceterus paribus, the leakage will bring about shrinking economy and therefore widespread unemployment, wastage of resources and suffering to the people. To offset the leakage we have deficit budgeting. The government spends the saving of individuals by investing in development or infrastructure projects. Government spending employs resources or factors of production bringing them into employment. But if the government over spends it may bring about inflation which is not desireable.
Only Japan can afford to have balance or surplus budget because they have full employment. They are flushed with surplus capital and liquidity. The Japanese do not have to work for another 100 years and can spend on their reserves due to their economic success since the 70s.
Tun brought prosperity to our nation. We have North south Highway, Putrajaya, KLIA, AND Patronas twin towers. Our country’s economy under Tun was so successful that millions of indonesians and bangladashis came to seek employment in our country. Tun helps to feed millions of household. Tun banyak pahala. Tun Dr Mahathir is a legend.
Tun invented Capital Control and saved the country from economic destruction by foreign predators.
Tun should be appointed economic advisor with executive power to the government.
amin tan
SALAM BUAT TUN BERDUA MOGA DIRAHMATI ALLAH S.W.T
1) MAAF RIMBA EMAS BARU KEMBALI DARI PENYAKIT DEMAM PANAS YANG LEBIH PANAS SEPERTI KEKEJAMAN TENTERA ISRAIL TERHADAP KONVOI BANTUAN KE KEM GAZZA. ALHAMDULLILLAH DENGAN IZIN ALLAH S.W.T KINI KEMBALI TENANG SETENANG KEMBALINYA RAKYAT MALAYSIA KEMBALI.
2) UNTUK KOMEN ‘ SHORT SELLING ‘INI AGAK LEMAH MENGIKUT KUDRAT KEMBALINYA TENAGA SEDIKIT DEMI SEDIKIT. WALAU BAGAIMANA PUN RIMBA EMAS BERFIKIRAN SEBALIKNYA, APA TU..??
3) BILA TUN KATA ‘ SHORT SELLING ‘ SATU MEKADISMA YANG DAPAT MENURUNKAN HARGA TERFIKIR PULA RIMBA EMAS ALANGKAH BAGUSNYA PERKARA INI JIKA DI BENARKAN KEPADA ORANG RAMAI KHUSUSNYA MEREKA YANG BERPENDAPATAN RENDAH KERANA INI SATU ‘DURIAN RUNTUH’ YANG DAPAT MERENDAHKAN HARGA BARANGAN.
4) TUN FIKIR BAGI PIHAK PEMERINTAH ATAU PELABORAN NEGARA. BAGI MEREKA YANG TIDAK MEMILIKI BARANGAN TERSEBUT TETAPI HARGANYA JIKA TERLALU TINGGI MAKA BOLEH BERLAKU IBARAT BARANGAN YANG TELAH DIHARAMKAN SEBALIKNYA IA TELAH DIHALALKAN OLEH ALLAH S.W.T.
5) ALLAH S.W.T PERNAH MENEMPELAK GOLONGAN ISRAIL INI SALAH SATU SIFAT YANG ADA PADA MEREKA IALAH SUKA MENYUKARKAN PERKARA MUDAH ATAU PERKARA ASAL MENJADI SUSAH,BERSUSAH PAYAH KERANA ASYIK MENYOAL KEMBALI PERKARA YANG DIPERINTAH OLEH ALLAH S.W.T. AKHIRNYA PERKARA ITU SENTIASA BERTUKAR-TUKAR SEHINGGA MENJADI PAYAH.
6) KITA SENDIRI JELIK DENGAN TINGKAH LAKU KETURUNAN BANGSA ISRAIL INI TETAPI TIDAK SEDAR SIFAT-SIFAT INI MENJALAR DIDALAM SISTEM JUAL BELI ATAU KAEDAH YANG DI GUNA PAKAI KERANA TERLINDUNG OLEH PERKATAAN RIBA SAHAJA.
7) RIBA INI LUAS BUKAN BERMAKSUD PADA BUNGA SAHAJA TETAPI KEPADA JALAN-JALANNYA JUGA SAMA SEPERTI HUKUM ZINA BUKAN SAHAJA PERKARA ZINA TETAPI DARI AWAL PERJALANANNYA LAGI BOLEH MEMBAWA DOSA.
8) JADI ‘ SHORT SELLING ‘ MENJADI HARAM JIKA KEMUDARATAN ATAU ADANYA TINDASAN ATAS PERBUATAN ITU.
WALLAHU’ALAM
******A WORD OF GRATITUDE FROM THE SLEEPING UMMA TO DR. TUN MAHATHIR MOHAMMED *****
Dear Dr. Tun Mahathir,
On behalf of the sleeping Umma,
On behalf of the SIlent Umma,
On behalf of the Cowardice of the Umma
On Behalf of the Passive and Complacent Umma
Thank you for all your efforts in supporting and assisting in the numerous ways the Gaza Peace Flotilla.
Most of the news about your generosity and help for the Gaza Peace Flotilla efforts are found in the foreign press and unfortunately NOT IN THE ARABIC or Main stream press.
I want the readers to know that behind the scene Tun has been a driving force and shining beacon of support and help for the Gaza Peace Flotilla in every way he can.
We love you Tun
We love you O’ Tiger of Malaysia.
Not all Muslims are sleeping. We see and we hear and we truly Love you from the bottom of our hearts. I just wish there were more leaders like you around the world.
As an Arab, i am ashamed of all our failures and silence.
I hold myself first responsible and look up to your leadership and mentorship.
Malaysia is truly lucky to have a MALAYSIAN TIGER that is so generous and humble, as all his efforts are done with very low key humility. So were the deeds of the Sahaba (God Blessings be upon them). They did the good deeds and their humility forbade them from publicizing it.
But i must say, Tun’s deeds must be publicized, for they are a role model for all the Peace Loving people around the world Muslims, Christians, Jews and Others that believe in peace and freedom.
May God Bless Malaysia for Producing such a Nabigha (Arabic word means a Unique one”, who never ever stopped caring and loving the Umma.
I just wanted to let you know that we know your great generous deeds.
We Admire you.
We love you.
And may God bless you and your family forever.
Al Salamu Alaykum Wa Rahmatu Allah Wa Barakatu
God Bless Tun the Tiger of Malaysia
God Bless Tun and family
God Bless Malaysia
SALAM KASIH DAN SAYANG
AYAHANDA RAKYAT TUN
IZINKAN,
By Mohd Ali on June 4, 2010 4:46 PM
…
(10) I
Salam Tun yg di sayangi dan amat dihormati,
Untuk wenger J. Khairi yang dikagumi kehebatannya ,
Part A
(1) Perbuatan memohon maaf berulangkali adalah satu langkah yang cukup hebat dan hanya orang yang hebat sahaja mampu melakukannya. Kejujuran memohon maaf juga sesuatu yang maha hebat, jadi tidak dinafikan anda memang hebat lagi maha hebat. Orang hebat mengunakkan akal dan ilmu bagi menilai dan mengamalkan sesutu yang baik secara jujur dengan kesungguhan serta berterusan. Kita adalah bertanggongjawab atas apa yang kita lakukan jika kita benar2 jujur dan kesilapan boleh dielak @ dikurangkan sekiranya pertimbangan kita wajar dan tidak di pengaruhi sentiment
Apa khabar Tun;
Tulisan Tun dapat membuka minda rakyat.
PASARAN SAHAM
Sistem pasaran saham adalah sistem Kapitalis yang diamalkan di Amerika oleh KAUM PEMODAL yang sebahagian besarnya adalah terdiri daripada orang Yahudi.
SHORT SELLING dalam sistem pasaran saham adalah dibenarkan dalam system kapitalis sebagai satu cara untuk MENGAUT KEUNTUNGAN dgn cara MANIPULASI bagi mengumpul kekayaan untuk kaum Pemodal.
***Sistem Yahudi ini menjadi ikutan seluruh dunia termasuk Malaysia, kecuali German yang dari dulu tidak mahu mengikut ajaran dan telunjuk Yahudi.
SISTEM KAPITALIS
***Dalam system kapitalis, kekayaan dicari dengan kaedah MANIPULASI melalui pelbagai cara menggunakan kepintaran untuk mengaut keuntungan tanpa perlu bekerja kuat menggunakan tenaga sendiri untuk mencari kekayaan.
Seluruh daya pemikiran dan idea ditumpukan sepenuhnya bagi mencari jalan bagaimana untuk mengaut keuntungan dengan cara manipulasi orang lain dan sistem sebanyak mungkin.
Amalan manipulasi orang lain ini telah diguna semenjak ZAMAN PENJAJAHAN Kolonial lagi yang ketika itu mengamalkan SYSTEM PERHAMBAAN untuk tenaga buruh paksaan yang mungkin secara percuma atau upah tidak setimpal dan menghisap darah untuk mengerjakan ladang dan kilang kaum pemodal.
BENTUK PENJAJAHAN BARU
AMALAN MANIPULASI pihak lain ini masih diteruskan dalam abad ke20 hingga ke abad 21 ini, tetapi dalam bentuk PENJAJAHAN BARU oleh kaum Pemodal yang kebanyakannya datang dari Negara yang mengamalkan system Kapitalis dengan cara penguasaan ekonomi Negara lain melalui pelaburan FDI.
Sistem ini amat popular dan menjadi ikutan bagi kebanyakan Negara Maju dan Negara Membangun lain. Pelaburan INSENTIF BURUH adalah satu kaedah bentuk baru MANIPULASI pihak lain bagi mengaut keuntungan dan kekayaan oleh kaum Pemodal.
Tatapi pelaburan system ini(FDI) amat diperlukan oleh Negara Mundur dan Sedang Membangun yang banyak tenaga buruh bagi merancakkan ekonomi mereka tanpa di sedari bahawa itu adalah satu system MANIPULASI yang tersembunyi
Well members. I’v read what Tun says and Wenger’s comment. I think both of them are right to say that short selling is a form of manipulation, and it is true too to say that short selling is a form of liquidation. I dont find Wenger so anti-Tun. He’s just putting out his points.
But in this case, since Wenger is asking for proof, the burden of proof then falls onto Tun. But I dont think Tun could tells all. He must be discreet, and we, as readers, should know how to read in between the line!
Salam Tun.
There’s this self-proclaimed new economic genius in town, always slandering Tun’s purportedly naive & ignorant economic ways and which will eventually lead Malays to a free-fall (comment entry dated 02/06/10 at 11.47a.m.)
I tried hard to grasp his capital inflow/outflow calculations but later realised that he must have picked them from the sky. His synonym reminds me of budak ‘kurang _jar (KJ)’, probably one of the cronies. He seems to favor ex-PM ‘no quality’ Pak Dol & once became sensitive on my comment of budak KJ.
Most (if not all) other points are also cloudy. It’s normal for a genius like him having difficulty explaining his ideas to his audience due to different level of intelligence, especially I’m not an economist.
I wish Mr. Wenger J Khairy will kindly elaborate your full statements as in (3),(6),(7),(8),(9) & (10) so that any ordinary layman can understand and learn your knowledge, just like the manner Tun Dr. M been putting his ‘easy to understand’ entries.
Salam Tun.
There’s this self-proclaimed new economic genius in town, slandering Tun’s purportedly naive & ignorant economic ways and which will eventually lead Malays to a free-fall (comment entry dated 02/06/10 at 11.47a.m.)
I tried hard to grasp his capital inflow/outflow calculations but realised he must picked them from the sky. His synonym reminds me of budak ‘kurang _jar (KJ)’, probably one of the cronies. He seems to favor ex-PM ‘no quality’ Pak Dol & once became sensitive on my comment of budak KJ.
Few other points are also cloudy. It’s normal for a genuis like him having difficulty explaining his ideas to his audience due to different level of intelligence, especially I’m not an economist.
I wish Mr. Wenger J Khairy will kindly elaborate your full statements as in (3),(6),(7),(8),(9) & (10) so that any ordinary layman can understand and learn your knowledge, just like the manner Tun Dr. M been putting his ‘easy to understand’ entries.
Salam Tun yg di sayangi dan amat dihormati,
Untuk wenger J. Khairi yang dikagumi kehebatannya
Dear Tun,
Being at your age of a master,and one who has had hands-on on many many things esp this forex/share trading things you surely know whatever you are talking about.Furthermore you have the real experts, people who have learned the hard way of what actually is happening in these marketplaces to advise you.And the reason why almost everything that you implemented during our financial crisis was so silk smooth is now being emulated by none other than and the Great Sifu herself,the USA to get out her crisis.The country that otherwise have recommended others something then they won’t do for themselves now.
So I find Wenger J.Khairi attempt to teach economics to our beloved PM as truly truly laughable.
Assalamualaikum Tun. Semoga sihat selalu.
Short selling is one thing. Short sighting or short minded is another thing. I’m referring to the latest syariat court case of the late SM Nasimudin. I know it is a family affair of 2 wives, but when it comes to business entities, of which is a symbol of pride to Malays entreneurship and corporatization, it now has become a sign of shame. I hope this case will not be a case that killed all efforts made by the late Nasimuddin. It just shows that Malays never learn!
Friends please go through the modern islamic-freemasory-illuminati based documentary to understand the global events on macroscopic level.
I would highly recommend you to download and watch this 51 part series ” The Arrivals” of 10 minutes clip each in english from this site http://www.youtube.com/arrivalsHD
Dear All,
Part A
(1) I will repeat again, I do apologize to Tun for using the phrase “your analogy on short selling is laughable”. Its a wrong phrase and I sincerely apologize for it.
To the comments by antikmalay,frosley,checker,Idea
Why is it I have deep dislike for Tun?
Its because Tun prescribes a set of policies that will take the country backward. His view on financial and economic matters is very simplistic and he makes people believe that this simplistic view is ok, and makes the minds of people become very small so they cannot understand the arguments against his simplistic views.
Lets start with the short selling analogy. Tun says that short selling is not speculation but manipulation. Where is the evidence? Lets say I want to invest in Keck Seng plantation to get exposure to the palm oil sector but want to short Sime Darby as a hedge. These concepts of going “long” on one stock and “short” on another is a convergence trade that is being adopted worldwide. Or if I am holding 1 million shares in Kencana Petroleum and want to liquidate it in 1yrs time – I have to write a forward contract and to write a forward contract on a stock, you MUST allow short sales. So the argument for short sales is liquidity. Short sales also ensure that prices are efficient and keeps management on their toes. If for example an analyst figured out Sime was going to report a larger than expected loss, he may argue to short Sime stock, and as a hedge go long something else.
These are all hallmarks of a developed market. Regulators can ban “naked” short selling whereby in order to sell a stock, the stock must be in possession by some one else (its technical maybe for those who do not understand).
We must be allowed to short all assets – stocks, bonds, currencies because only thru shorting and going long so we can ensure that prices reflect the information. After all no short can persist indefinitely and if the market is oversold, then its an opportunity to buy.
Tun fails to mention his problem with short selling arose because many closest to him collateralized loans granted for them to own companies by their companies share. When these firms are managed badly, the market eventually punishes these firms by driving the price down to pennies even.
Capital market theory strictly does not include this sort of “crony capitalism”. The idea is that the capital market gives funds to firms to employ the right managerial talent to create value, these managers are compensated by way of salaries or stock options and if all works well, everybody wins. When we say – this firm is now controlled by a single individual the equation is totally skewed. No longer will the manager work to create value for the firm, but instead value for the owner. Number 1 example is the case of Renong and MAS. These are indisputable facts.
We all know that the current KLCI is a far cry from its historic liquidity. Trading is far lower than regional bourses and take foreign capital finds it better to invest in places like Thailand as opposed to Malaysia because of all this unnecessary and useless regulations.
So the idea behind banning short selling must take into account the benefits of the capital markets and not the benefits of individual crony capitalists. If we always want to look out for the benefit of the crony capitalist, then lets say it clearly
“SHORT SELLING IS BAD FOR CRONY CAPITALISTS AND THUS WE SHOULD BAN IT”
My other reasons against Tun’s economic policy e.g. perpetual deficit spending ( only 2 out the 22 years when Tun was in charge did the country register a surplus and that too when DSAI was FM) will be explained later, if I am granted the privilege to share my comments.
I would’nt say they are “MISTAKES” dear TUN. all their Mistakes are calculated to bring grievances and suffering to the rest of the world while they reap the riches.. so that they control the world…
Salam Tun,
May Allah swt bless you with good health and wisdom.
1) YES, short selling is a commercial crime because it is a form of betting.
2) It is also a form of manipulative use of insider information that lead to unfair playing field to market participants.
3) Morally, it is definitely wrong because we are trading on asset that is not belong to us.
4) Islam forbid any of this.
5) The capitalist system allows such a mechanism as a form of making money.
6) System that is based on unfair treatment wil not last, which is why the Germans had intervened by banning it. If the German has no trust in the system, why should we?
So, to our Mr. Wenger J Kahiry, because of your deep hatred in Tun, you fail to see these facts. Let me give you a piece of advice, please go for a treatment now before it become cancerous!
Melayu itu hebat!
Good morning Ayahanda Tun,
Published: Rabu Jun 2, 2010 MYT 11:12:00 PM
Rombakan Kabinet: Apa Maknanya Bagi MCA
KUALA LUMPUR: Rombakan Kabinet oleh Perdana Menteri Datuk Seri Najib Tun Razak semalam menggambarkan kesedarannya mengenai perubahan kepimpinan dalam MCA dua bulan lalu dan beliau berhasrat untuk meletakkannya dalam perspektif yang betul bagi masyarakat Cina.
Sepintas lalu, nampaknya MCA di bawah kepimpinan Datuk Seri Dr Chua Soi Lek telah berjaya melobi bagi parti itu untuk dua portfolio strategik yang signifikan Timbalan Menteri Dalam Negeri dan Timbalan Menteri Pertanian dan Industri Asas Tani.
Naib Presiden MCA Gan Peng Sieu berkata parti itu telah meminta dua portfolio yang strategik ini sejak beberapa lama kerana ia mempunyai hubungan langsung dengan masyarakat Cina.
Biasanya, MCA diperuntukkan kedudukan Timbalan Menteri Dalam Negeri tetapi selepas pilihan raya umum 2004, ia digantikan dengan portfolio dalam Kementerian Pelancongan dan kemudiannya Kementerian Penerangan Komunikasi dan Kebudayaan.
“Kedua-dua portfolio ini sangat signifikan kepada MCA. Ia menggambarkan simbol kepercayaan dan keyakinan Perdana Menteri dan pimpinan tertinggi B N(Barisan Nasional) kepada MCA,” katanya sambil menambah bahawa Kementerian Dalam Negeri berurusan dengan sebilangan isu yang dekat dengan masyarakat Cina seperti keselamatan, kad pengenalan (MyKad) dan warganegara.
“Ramai orang Cina juga terbabit dalam perladangan, perikanan, penternakan dan syarikat perladangan kecil. Kadang-kadang terdapat isu yang perlu diselesaikan dengan mereka di dalam masyarakat Cina, yang merupakan penggiat utama di dalam industri asas tani.”
Para anggota MCA gembira bahawa Najib masih menaruh kepercayaan kepada MCA bagi membina semula sokongan daripada masyarakat Cina seperti yang dapat dilihat dalam rombakan terbaru walaupun sokongan kaum Cina kepada BN merosot sejak pilihan raya umum Mac 2008 dan beberapa pilihan raya kecil berikutnya.
“Perkara penting sekarang bagi kepimpinan parti dan mereka yang dilantik (sebagai timbalan menteri dan menteri) ialah untuk melaksanakan tugas mereka dengan baik dan (seterusnya memberi undi),” kata seorang pemimpin akar umbi dari Selangor.
Bagaimanapun, sesetengah anggota veteran parti mengingatkan bahawa dengan mempunyai kedudukan yang signifikan dalam kerajaan merupakan satu perkara dan ia tidak bermakna bahawa MCA boleh secara automatik mendapatkan semula sokongan kerana prestasi menteri-menteri dan timbalan-timbalan menteri akan dinilai terlebih dahulu sebelum sokongan menjadi kuat.
“Sebagai contoh, dalam pertanian, bolehkah kamu membantu petani yang tidak bertanah mendapat tanah atau membantu nelayan mendapat lesen?” soal pemimpin veteran MCA Datuk Yap Pian Hon.
Penganalisis politik yang lain percaya bahawa MCA masih mempunyai tanggungjawab yang berat untuk mendapatkan semula sokongan daripada masyarakat jika BN bersedia mengkaji semula sesetengah polisi yang dianggap tidak menguntungkan.
“Pada keseluruhannya, ia bukan individu tetapi lebih kepada dasar kerajaan dan pelaksanaannya di mana orang ramai akan menilai sama ada ia selaras dengan semangat 1Malaysia atau tidak,” kata penganalisis politik Prof James Chin.
Keseluruhannya, Chin berkata Dr Chua telah melakukan perkara yang betul dengan meletakkan parti pada landasan yang betul dan menggabungkan jenteranya untuk bersedia menghadapi pilihan raya umum akan datang.
“Sama ada ia berjaya atau tidak, kita akan tahu menjelang pilihan raya umum. Dalam keadaan sekarang, ia masih terlalu awal. Kamu perlu memberi masa kepadanya untuk menyesuaikannya,” katanya.
Tetapi, bagi pengkritik Dr Chua, mereka mendakwa bahawa beliau telah mengingkari janji awalnya untuk menyatupadukan pelbagai puak dalam parti dengan tidak menyingkirkan pemimpin puak yang utama atau mereka yang mempunyai hubungan rapat dengan saingan politknya dari kedudukan kerajaan.
Kenyataannya, mereka juga tidak puas hati, bahawa beliau menamakan anaknya, Tee Yong, 33, menjadi timbalan menteri.
Bagaimanapun, Dr Chua mempertahankan tindakannya.
Beliau berkata MCA mempunyai pilihan yang sedikit kerana ia hanya mempunyai beberapa wakil rakyat untuk dipilih dan Tee Yong merupakan salah seorang daripada dua Anggota Parlimen yang tidak mempunyai atau tidak pernah memegang sebarang jawatan dalam kerajaan sebelum ini.
“Kami mempunyai 15 Anggota Parlimen. Daripada jumlah itu, 13 sama ada memegang jawatan atau pernah memegang jawatan dalam kerajaan sebelum ini. Jadi, saya kemukakan baki dua nama Tee Yong (Ahli Parlimen Labis) dan Tan Ah Eng (Gelang Patah) kepada Perdana Menteri. Itu untuk jawapan awak,” katanya kepada pemberita di sini hari ini.
Najib, ketika ditanya mengenai pelantikan Tee Yong, berkata beliau sendiri menjadi timbalan menteri semasa berusia 25 tahun dan Menteri Besar Pahang pada usia 29 tahun.
“Usia bukan halangan. Apa yang penting ialah kemampuan; dia memang layak. Saya yakin dengan kemampuannya untuk menjalankan tugas sebagai seorang timbalan menteri,” katanya.
Seorang anggota Jawatankuasa Pusat (CC), Datuk Chong Itt Chew, juga mempertahankan tindakan itu dengan berkata Dr Chua sendiri tidak memegang sebarang jawatan Kabinet dan anaknya hanya dilantik untuk jawatan timbalan menteri.
“Pada masa lepas, bahkan kami lebih jelas dengan duluan di mana presiden parti melantik abangnya menjadi setiausaha agung parti dan kemudiannya diberikan satu kedudukan sebagai menteri,” kata Chong, yang juga pengerusi MCA Kedah.
Bekas Presiden MCA Tan Sri Ong Ka Ting telah melantik abangnya Datuk Seri Ong Ka Chuan, menjadi setiausaha agung parti dan kemudian menamakannya untuk satu kedudukan sebagai menteri selepas memutuskan untuk tidak menamakan dirinya bagi satu jawatan Kabinet selepas prestasi buruk parti pada pilihan raya umum 2008.
Bagi para pemerhati politik, mereka berkata bahawa Dr Chua telah melakukan satu tindakan strategik bagi menangani politik dalaman secara berkesan dengan menyingkirkan beberapa pemimpin utama seperti saingannya dan bekas Presiden Datuk Seri Ong Tee Keat (digugurkan sebagai Menteri Pengangkutan), dan Datuk Wee Jeck Seng (digugurkan sebagai Timbalan Menteri Belia dan Sukan), yang dikatakan mempunyai hubungan rapat dengan Ka Ting.
“Pada dasarnya Dr Chua telah meletakkan asas untuk pilihan raya parti akan datang pada Oktober tahun depan. Dengan tidak memberikan sesetengah orang sebarang kedudukan dalam kerajaan, ia akan menyekat mereka daripada memberikan sebarang cabaran yang serius kepada kepimpinannya,” kata seorang pemerhati. – BERNAMA
Comment:
It looks like Dr Chua’s strategy in reviving MCA party will go back to square one (pi mai pi mai tang tu)….PM Najib add to 2 more minister posts to MCA to make it 15 positions.
Why must MCA’s Dr Chua made it 15 positions and not 18 (current 13 + 2 + 3) neh????
PM Najib said that he was elected as timbalan menteri when he was 25 years old and became Menteri Besar at age 29 years old. That’s totally different story, he was elected because of Tun Razak’s death, the 2nd PM.
It looks like the area for Nuke Energy is Pahang base on this analysis!!
Chinese ain’t stupid anymore, and if PM Najib supported Dr Chua by eliminating Ong Ka Ting and his group, BN will loose in PRU13. Maybe to PM Najib, loosing UMNO/BN in PRU 13 is not important!!!!
Take care Ayahanda Tun. 12 Malaysians among 124 Gaza-aid activists released by Israel according to thestar on line which Published: Wednesday June 2, 2010 MYT 10:40:00 AM
Updated: Wednesday June 2, 2010 MYT 9:17:51 PM
Salam YAB Tun,
Setiap yang meragukan itu boleh dikategorikan sebagai RIBA walaupun masih ramai ‘ulamak dunia’ yang berani menghalalkannya. Ketahuilah bahawa sesuatu yang telah diharamkan Allah swt itu akan tetap haram sampai bila-bila walaupun 99.99% manusia mengatakan ianya halal.
If an artful enemy takes your wealth,
a thief will have robbed a thief. [Rumi]
Wassalam.
Salam Yang Amat Dihormati Tun,
Nothing much to add to the already voluminous ideas and suggestions that have been graciously (some, “very” graciously than others) forwarded to you!
Just here to express my thankfulness and gratefulness to you for sharing with us your as-always brilliant, sharp (and entertaining) insightful views on our economy and everything in general.
Please keep it coming and I pray that the All Mighty bless Malaysia to have more citizens with every bit of your calibre.
Thank you, Sir! for all that you have contributed to our nation.
Assalammualaikum Tun
buy stock/financial instrument and expect market goes up also same as short selling, because someone losses when you sell(close order) the stock/financial instrument you bought previously. thats where the money profit come from, short selling are no different.
perhaps it is stupid debating about money that controlling our lives the way there are because money is nothing more than a paper, although some ppl might say it is backed by gold, but what is gold really? its piece of rock.. how stupid human could be, or is it?
money creation info read here : http://sanlithird.blogspot.com/2010/05/money-creation.html
possible solution is resource based economy, for example : http://bit.ly/av4UPs
Ayahanda Tun,
Due to western short selling bans and Hollywood’s Oscar reward 2010 goes to Iraq War movie, Israel The Rogue State’s attack might be strategiZed to provoke anger, fear and greed in Muslim countries.
After reading chedet’s bloggers’ comments, majority of the muslims get angry and frustrated, especially the Pembelamelayu, wrote Serulah Perang Jihad x 3…
First thing that pops into my mind, is Pembelamelayu from Ministry of Defense?
Even blogger Hajar got angry.
Now, MOD has 3 very expensive submarines of Euro 1 billion, will MOD chosen not to pay France because they are frustrated by this attack? Or will MOD take this attack as the reason to upgrade MOD’s security by demanding PM to increase Defense budget since majority of the muslims want Perang Jihad.
Don’t forget, People with Israel’s Styles are plenty in Malaysia regardless of races and religion, and sdr wajarperak oledi explained in his komen.
If MOD increases Defense Budget through Purchases and Construction, then;
“Papa makan / teh-tarik during working hrs: RM155
(RM5/day, RM5
Dear Wenger J Khairy,
I have stumbled upon your comments in several blogs, and I must say that from your writings, you must be an extremely intelligent person. Your earlier comment here that states Dr M’s analogy on short selling as “laughable” and stating I quote “On the other hand if we copy your advice we are headed to bankruptcy. Surely if the evil West does not lead us to bankruptcy their advice should be considered at the very least” indicates that you must be a super genius!
May you be kind enough to enlighten me on what are the advices of Mahathir that will definitely lead Malaysia to bankruptcy? and maybe you will be able to highlight to me what policies/actions that Mahathir has introduced during his leadership as the Prime Minister that leads to Malaysia being a bankrupt nation.
Please, as a concerned citizen, I would love to be corrected. As far as the little knowledge that I have, most of the measures introduced by Mahathir are, yes, radical and hated by the westerners, but works best for the Malaysian economy. Well, maybe I was wrong. I seems that you know much more! It appears that you are the economic guru that can save Malaysia, or even the world from this economic turmoil! I actually suspect that you are actually way smarter than P. Krugman and Mahathir combined!
Please Mr/Ms/Mdm Wenger J Khairy, come out and lead us all. Since it appears that you have commented that Mahathir’s work are all useless work or advices, I can assume that you can do a much better job. So, please, stop just commenting merely on blogs. Come out and lead us all out of this turmoil. Or the other option may to think, study, and understand first before you speak.
Salam Tun & Fellow CheDet’s Bloggers,
Pendekkan cerita. Sebagai seorang yang beriman rujuklah kepada hadith Nabi SAW ” Aku tinggalkan kalian 2 perkara, Quran & Sunnahku. Jika kalian rujuk kepada kedua2nya, kalian tak akan sesat selama2nya di dunia & akhirat”.
Rujukan selain dari sumber tersebut yang kebanyakannya karangan manusia yg bijaK pandai terutama persepsi kita terhadap mat saleh, tak tentu selamat. Nak selamat, pastikan mendengar APA YG DIKATAKAN bukan SIAPA YG BERKATA.
Si Wenger Khairy tu nampaknya macam orang Islam tapi pasti campur mat saleh kerana namanya. Dari gaya hujahnya, saya pasti dia bukanlah orang yg “berilmu” dan “beriman”.
Semuga Allah memberi kita prtujuk dan perlindungan dari hasutan syaitan dalam berbagai bentuk dari berbagai sudut. Ameeen
Langkawi O’Langkawi
(paradijs verslaagde)
What is a ‘top kill’?
What will a hurricane do to the oil spill?
Eurozone unemployment hits fresh high
(everybody is now short selling the Euro – paul mason, bbc newsnight editor)
Should the MV Rachael Corrie sail into Eygpt now that the border with the gazastrip is open?
no doubt that short selling has been the cause for historical events of financial turmmoils across the globe..
Tun,
The staemanship of any country, will be well defined by economic progress he brings about a country.As said, to counter that frivilous spending is determined by the strength of the currency. To check the monetary euthourties of the country do the balacing act. At times the spending exceeds the income, there if want to call it rogue traders venture in, to capitalise on the margin. Nothing wrong.
thank You.
Chandara deven
/// 2. Short selling is not speculation. It is manipulation of the market with almost certain success to be had. Other investors or buyers would lose money as they would be left holding the devalued shares or money or whatever. ///
Spoken by a true pro who had personal experience in this and who was burnt. Remember the attempt to corner the Tin market? And BNM losing their pants in the attempt to do battle with George Soros vis-a-vis the Sterling?
Salam Tun yang amat disayangi dan dihormati
Saya mulakan topic
Ayahanda Tun,
May I…….
//By Khairul-Dean on June 1, 2010 10:23 PM
Who are selling BP’s shares?
Time to buy it up.
Of course the risk is plugging the leak and the pay the fines but then you still have the oil.
So, who is buying into BP?//
It’s definitely not Tun Pak Lah if you have watch DVD’s Monster In Law starring Jane Fonda (70 years +), the Monster In Law and Jennifer Lopez (South American), the Daughter In Law. Jane Fonda said in the movie, “Sultan Brunei has 14 wives who enjoy US lifestyle”. The rest of the story, we should let the professionals who have Acturial SCIENCE to calculate human intelligence and risk appetide……………..
Take care and so is Ayahanda Tun. Sceneric Bridge will be re-proposed again to encourage more petrol usage, if not what for they buy BP neh????
P.S. Dear CSL, with Salary of RM3,000 ngam-ngam after deduction of what2 charges including EPF, I cannot afford Astro but DVD at RM7.00 per piece…….
Dear Tun,
(1) On reflection, I would take back my second statement saying “that your analogy on short selling is laughable”. The error is regretted.
As much as I totally do not agree with most of your pronouncements, I should not use such words.
(2) You once used to be a person who bases decision on analysis and knowledge of the facts. One of your commentators has described the technical points of short selling – there is nothing to add.
(3) But before making this pronouncement that “short selling is bad, and we are always right” – something that may be lapped up by your supporters, esp if there are those who are “malas berfikir sort”, why not consider the state of the Malaysian capital market vs. Thailand.
(4) Thailand followed IMF, has been rocked by civil strife, etc,etc,tc.
(5) Malaysia followed capital controls and has been a model country envied by the whole world.
(6) Net capital INFLOW into Thailand from 2002 – 2009:
USD 27.7 billion (2 years of capital outflow in 2002 and 2009)
Net capita OUTFLOW from Malaysia from 2002-2009:
USD 93 billion (assume constant RM:USD 3.5000)
So difference between capital flows Thailand vs Malaysia = USD 100 billion.
(7) The security laws in Malaysia are backward, archaic and full of risks for foreign investors. You claim that well we can ask Foreign Investment to go fly a kite – but certainly you would know that FDI brings in US Dollar capital that can be used to buy high tech equipment as well as the managerial skill totally obliterated during your reign, where essentially people do not know the difference between right or wrong. (its all up to the boss. and the boss acts out of self interest)
(8) Short selling has many uses. Arbitrage, risk management and speculation. Dow Jones collapsed to 6,000 last year and recovered back to 10,000. They cried but they did not go and impose capital controls. Part of the reason of the KLSI drop after the initial sell off was the caveman like laws that protect minority shareholders. In any other part of the world, what Halim Saad (UEM and Renong) did would have been followed with action by the regulator.
In Malaysia? Maybe you realized it was for UMNO
(9) Under the post Bretton Woods agreement, not only the US but Malaysia are free to print currency. We have RM 1 trillion of it sloshing around. What gives it value?
(10) Perhaps you should think of this. I shudder and am amazed that you are leading a whole generation of Malays down the cliff as the non-Malays are very clear on the situation and unfortunately some young Malays seem to think that “as long as Tun says its good, its good, or if Tun says its bad, its bad”.
(11) Its quite sad to see you do that.
Dear Tun,
I am responding to comments by CSL and Wenger J Khairy.
2. CSL has written a good illustration. As a matter of fact, we have many young graduates who are still seeking employment. Most of these younger people are burdened with their study loans. They need income. They will surely build a family in years to come.
3. Comment posted by Wenger J Khairy is somewhat lame. Greece is located in the West and they are bankrupt.
But we are sending hundreds, if not thousands of govt officers and politicians for “lawatan sambil belajar”. The ex MB of Selangor went all over the world to learn how to maintain and landscape rivers in Selangor. Other MB’s and ministers are no better, travelling all over the western world “to learn”.
Shortselling is bad. Noted.
But of course the West is not always right and we don’t have to listen to anybody. In fact we should just tell the world once and for all that we, as proud Malaysians, can and will take good care of ourselves, we love our people, and we are a prosperous bunch. They should know that:
– our capitalistic democracy system is so foolproof that we even have free time to play games called ‘the racist card’ and ‘eat the poor’
– our defence system is so great that we even have a few spare fighter jet engines to sell to fund our little tea party
– we have so much spare money that we could even buy a few space-edge submarines to add to our national museum archive
– our GLCs are doing so well that they can even afford to swallow costs a few times more than the original projections and treat them as tips at restaurants
OK. That was before.
But now, we are gearing up for bankruptcy in Malaysia Boleh style because:
– our bolehland is becoming so barren and disaster prone (crops won’t grow, volcano eruptions, earthquakes etc.)
– our people are getting lazy and stupid from oversubsidy (they drank too much free petrol)
– we partied too much with our credit cards and now the banks are after us (wait a minute. who?? i mean, who overpartied??) nvm. i’m still drunk on petrol
– we are simply Malaysians.
Tak dapat tak apa. Asalkan boleh.
Dear Tun Dr M,
Well said Dr M. The act of Short Selling and Contra Trading should be banned by the Malaysian Stock Exchange. Of course, these 2 increase the trade volume of the shares and those assisting the trading of shares able to earn more but the increase in the trading is not based on fundamentals and very misleading.
In the case of Short Selling, one could make profit not only when the Company does well but also when the company fails miserably. This would leave the stock exchange a real mockery and unreliable source of indication of the country’s economy.
The Contra Trading allows you to buy shares even if you do not have any money. This means every body buying shares under this scheme hope the price of those shares would increase in short period (within days). This is obvious that, in true sense, no shares will have an increase in price within short period unless there are some manipulation (often criminal inclined).
The manipulation of share dealings are easily done by the rich players where the other players will have to rely on their instincts and gamble. Thus, the rich get richer and the poor gets poorer.
It is due to these 2 types of share trading that result in too many gamblers as compared to little investors in the stock exchange. I have friends telling me that it is more destructive and addictive as compared to going to Casinos or playing forecast number games.
I think short selling is an essential part in keeping the financial system healthy. Imagine if a person is only to eat and not exercise. He will become bloated and die. We need excercise to trim down. All system tend to equilibrium. If we only allow something to go up with no relief mechanism to equalise, there will be a problem.
The average investor can only make money by buying a stock up. In the end you might have hordes chasing up a stock to unbelievable levels. The resulting crash would be devastating to the last few buyers. In this situation, it is easy for manipulators to manipulate a stock up for others to chase. However, with short selling, the manipulator has to becareful lest he get caught up by others shorting. Many examples on our stock market where some obscure illiquid stocks can skyrocket without justification and receive unusual market activity notices.
Allowing shorting allows another tool for the market to fight back these manipulations.
Just because we must reject the Devil in our lives does not mean God does not have a role for Devil in his grand plan. While evil, the Devils fulfils the role of testing our faith. Even though short can be dangerous but it has its uses.
On that note, let’s just keep our mind open and not restrict ourself to the good only. We need the bad just as well to show how good really is. Just as we need night and day, to exclude one over the other is to restrict ourself to one part and not knowing the other.
Selamat berbahagia Tun Dr Mahathir,
Setuju dengan komen CSL.Menteri-menteri kerap menyalahkan rakyat dalam banyak perkara.Memperbodohkan kita kemudian cuba membetulkan kita dalam menguruskan belanja harian.
Sebenarnya merekalah yang mendedahkan akan kedangkalan diri sendiri.Sebabnya dengan pendapatan antara rm 900 hingga 1,600 di kalangan saya dan kawan-kawan saya,mampukah kami suka-suka berbelanja?Nak jimat tang mana,cuba cakap??
Sebenarnya lagi, mereka tu tak pernah susah.beranak saja dah rasa sejuk aircon.
Saya tak nampak lagi YB dari UMNO seorang pun di waktu ini berkhidmat kepada rakyat sebaik Tan Sri Lee Lam Thye,bekas pemimpin DAP yang sangat saya hormati.Bersungguh-sungguh.
Takkan begitu lekeh mentaliti menteri dan YB sekarang ni!
Melayu Mudah Lupa…
Tun is playing by the ear to pre-empt and counter (with support from public opinion) what najib is going to do/undo or legalise next.
With the VOA and the China dolls everywhere – in car booths, behind walls, in the attics … why not legalise prostitution? Makes life easier for the vendors.
Prostitution is the oldest profession for nothing if not for the money. With money abound Malaysia will not go bankcrupt by 2019 as Idris Jalal predicted.
Although it may be legal it is strictly forbidden for the Muslims for such joy of the flesh.
Pardon me for giving such a sinful idea for the ministers. Don’t take me seriously, just pulling their legs in case they don’t know!
Banning short selling is a right move. Rasulullah S.A.W said “Don’t sell what you don’t have”.
Yes.. a couple of years back, my English friend is proud of his ability to ‘package pioneering advanced derivative products’. Of course today, we all know how his pioneering products has almost caused the UK financial system to collapse. Yet, asked him and his friends – they will still feel that these products are really cool and the ‘financial turmoil’ is a case of unfortunate wrong timing.
The people in the banking sector is paid handsomely on improved profitability and very little financial punishment (if any)for the fillip when happened. So anything that can make money – short-selling included is very much lauded. Rationale can always be found and justification conjured.
Tun,
On the other hand if we copy your advice we are headed to bankruptcy. Surely if the evil West does not lead us to bankruptcy their advice should be considered at the very least.
Your analogy on short selling is laughable.
short and sharp and sweet…..
agreed.. surely short selling damaging genuine investors like me..
its only beneficial for big players who able manipulate the market while small players like me will suffer badly…
by banned the short selling.. Tun shows that we are not always depends on western consultation..
Can a family man with Salary RM3,000 survive in Malaysia
Let
Who are selling BP’s shares?
Time to buy it up.
Of course the risk is plugging the leak and the pay the fines but then you still have the oil.
So, who is buying into BP?
Askum Tun, talking consultants remind my days in the govt whereby its quite normal the consultants appointed by has to expartriate. My experience some of these expats consultants consult local engineers first before putting their advise in a professional & presentable format. To me they are just merely borrowing our watch just to tell us what time is it, if we are not lucky he might pocket our watch.
Salam Tun yang di hormati
1. Semasa krisis kewangan Asia, ramai pakar ekonomi mengatakan Tun kurang pandai dalam bab dan selok belok ekonomi, disebabkan Tun melaksanakan perancangan ekonomi yang berlainan, tidak seperti yang dicadangkan oleh mereka.
2. Selepas lebih 10 tahun, krisis kewangan sedunia, nampak nya negara Amerika Syarikat sendiri melaksanakan perancangan kewangan seperti yang Tun telah laksanakan dahulu.
3. Bila krisis kewangan merebak ke Eropah, nampak nya pemimpin Eropah juga melaksanakan perkara sama.
4. Akhirnya, perkara yang baik akan menjadi ikutan.
Dear Ayahanda Tun,
No wonder KJ, T. Mohan and members burned flag in front of US Embassy to show his fustration, Dr Chua’s son is elected as Deputy Agriculture and Agro-based Industries Minister.
Senator Gan Ping Sieu appointed Deputy Youth and Sports Minister, no wonder he said that MCA is against sport bettings….once he reaches upper ladder belum duduk lagi, he already forgot what Rukun Negara meant under Federal Constitution.
KJ should not get angry with 1 Israel because what happened in Palestine is different from what happened in Malaysia.
Mukhriz Mahathir still remain as the Deputy Minister without showing any sign of frustration wat.
Will BN win Politically in PRU13 with this re-shuffle?
Only God Knows!!!!
Published: Tuesday June 1, 2010 MYT 5:51:00 PM
Updated: Tuesday June 1, 2010 MYT 8:30:35 PM
Kong is new Transport Minister; Chor made full Minister
PETALING JAYA: Prime Minister Datuk Seri Najib Tun Razak on Tuesday announced a Cabinet reshuffle.
The following are the changes, which take effect on Friday:
1. Datuk Seri Kong Cho Ha appointed Transport Minister replacing Datuk Seri Ong Tee Keat.
2. Datuk Chor Chee Heung appointed Housing and Local Government Minister. The post was previously held by Kong.
3. Chua Tee Yong appointed Deputy Agriculture and Agro-based Industries Minister.
4. Senator Datuk Donald Lim Siang Chai appointed Deputy Finance Minister.
5. Senator Gan Ping Sieu appointed Deputy Youth and Sports Minister.
6. Senator Datuk Maglin Dennis D’Cruz is Deputy Information Minister.
7. Datuk G. Palanivel is Deputy Plantation Industries and Commodities Minister.
8. Datuk Richard Riot is Deputy Foreign Minister.
9. Datuk Rohani Abdul Karim is Deputy Domestic Trade, Cooperative and Consumerism Minister.
10. Jelaing Mersat is Deputy Transport Minister.
11. Datuk Lee Chee Leong is Deputy Home Minister.
12. Senator Heng Seai Kie is the Deputy Women, Family and Community Development Minister.
Good night Ayahanda Tun.
wouldn’t selling bon same as selling invisible financial product
Good evening Ayahanda Tun,
In order to understand short selling in finance, I posted this article from wikipedia…..
Short (finance)
From Wikipedia, the free encyclopedia (Redirected from Short selling)
Schematic representation of short selling in two steps:-
Individual
1. The short seller borrows shares and immediately sells them.
2. He then waits, hoping for the stock price to decrease, when the seller can profit by purchasing the shares to return to the lender.
In finance, short selling (also known as shorting or going short) is the practice of selling assets, usually securities, that have been borrowed from a third party (usually a broker) with the intention of buying identical assets back at a later date to return to the lender.
The short seller hopes to profit from a decline in the price of the assets between the sale and the repurchase, as the seller will pay less to buy the assets than the seller received on selling them. Conversely, the short seller will incur a loss if the price of the assets rises. Other costs of shorting may include a fee for borrowing the assets and payment of any dividends paid on the borrowed assets. Shorting and going short also refer to entering into any derivative or other contract under which the investor profits from a fall in the value of an asset.
Going short can be contrasted with the more conventional practice of “going long”, whereby an investor profits from any increase in the price of the asset.
CONCEPT
To profit from a decrease in the price of a security, a short seller can borrow the security and sell it, expecting that it will be cheaper to repurchase in the future. When the seller decides that the time is right (or when the lender recalls the securities), the seller buys equivalent securities and returns them to the lender. The process relies on the fact that the securities (or the other assets being sold short) are fungible; the term “borrowing” is used in the sense of borrowing $10, where the same or different $10 note can be returned to the lender assuming the value of the note is the same that it was at the time of the contract’s execution.
A short seller typically borrows through a broker, who is usually holding the securities for another investor who owns the securities; the broker itself seldom purchases the securities to lend to the short seller.[1] The lender does not lose the right to sell the securities while they have been lent, as the broker will usually hold a large pool of such securities for a number of investors which, as such securities are fungible, can instead be transferred to any buyer. In most market conditions there is a ready supply of securities to be borrowed, held by pension funds, mutual funds and other investors.
The act of buying back the securities that were sold short is called “covering the short” or “covering the position”. A short position can be covered at any time before the securities are due to be returned. Once the position is covered, the short seller will not be affected by any subsequent rises or falls in the price of the securities, as he already holds the securities required to repay the lender.
The terms shorting and going short are also used as blanket terms for tactics that allow an investor to gain from the decline in price of a security. Such tactics are generally based on a derivative contract, such as an option, a future or a similar synthetic position. For example, a put option consists of the right to sell an asset at a given strike price; the owner of the option therefore benefits when the market price of the asset falls below that price, as he can buy the asset at the lower price and sell it under the option at the strike price. Similarly, a short position in a futures contract means the holder of the position has an obligation to sell the underlying asset later at a given price; if the price falls below the given price, the person with the short position can buy the asset at the lower price and sell it under the future at the higher price.
[edit] Worked example
If shares in C&Company currently trade at $10 per share, a short seller can borrow 100 shares of C&Company and immediately sell those shares for a total of $1,000. If the price of the shares falls to $8 per share, the short seller can buy 100 shares back for $800, return the shares to lender and keep the $200 profit (minus borrowing fees). The lender accepts the return of the same number of shares as it originally lent, despite the fact that the market value of the shares has decreased. However, if the price of the shares in C&Company instead rises to $25 per share following the short sale, and the short seller is required to return the shares, the short seller would have to buy back 100 shares at $2,500 and would incur a loss of $1,500 (plus borrowing fees).
[edit] Comparison with long positions
Short selling is the opposite of “going long”. A short seller takes a negative, or “bearish” stance, believing that the price of a security will fall. Investors who employ short selling often use it to allow them to profit on trading in securities which they believe are overvalued, just as traditional long investors attempt to profit on securities which are undervalued by buying them.
Because a short position is the opposite of a long position, many features of the position are reversed in comparison. In particular, the profit (rather than the loss) is limited to the value of the security, but the loss (rather than the profit) is unlimited. In practice, as the price of a security rises the short seller will receive a margin call from the broker, demanding that the short seller either cover his short position (by purchasing the security) or provide additional cash in order to meet the margin requirement for the security, which effectively places a limit on the amount that can be lost.
[edit] History
Some theories hold that the practice was invented in 1609 by Dutch trader Isaac Le Maire, a big shareholder of the Vereenigde Oostindische Compagnie (VOC). In 1602, he invested about 85,000 guilders in the VOC. By 1609, the VOC still was not paying dividend, and Le Maire’s ships on the Baltic routes were under constant threats of attack by English ships due to trading conflicts between the British and the VOC. Le Maire decided to sell his shares and sold even more than he had. The notables spoke of an outrageous act and this led to the first real stock exchange regulations: a ban on short selling. The ban was revoked a couple of years later.[2]
Short selling has been a target of ire since at least the eighteenth century when England banned it outright.[citation needed] It was perceived as a magnifying effect in the violent downturn in the Dutch tulip market in the seventeenth century. In another well-referenced example, George Soros became notorious for “breaking the Bank of England” on Black Wednesday of 1992, when he sold short more than $10 billion worth of pounds sterling.
The term “short” was in use from at least the mid-nineteenth century. It is commonly understood that “short” is used because the short seller is in a deficit position with his brokerage house. Jacob Little was known as The Great Bear of Wall Street who began shorting stocks in the United States in 1822.[citation needed]
Short sellers were blamed for the Wall Street Crash of 1929.[3] Regulations governing short selling were implemented in the United States in 1929 and in 1940.[citation needed] Political fallout from the 1929 crash led Congress to enact a law banning short sellers from selling shares during a downtick; this was known as the uptick rule, and this was in effect until July 3, 2007 when it was removed by the SEC (SEC Release No. 34-55970).[4] President Herbert Hoover condemned short sellers and even J. Edgar Hoover said he would investigate short sellers for their role in prolonging the Depression. Legislation introduced in 1940 banned mutual funds from short selling (this law was lifted in 1997).[citation needed] A few years later, in 1949, Alfred Winslow Jones founded a fund (that was unregulated) that bought stocks while selling other stocks short, hence hedging some of the market risk, and the hedge fund was born.[5]
Some typical examples of mass short-selling activity are during “bubbles”, such as the Dot-com bubble.[citation needed] At such periods, short-sellers sell hoping for a market correction. Food and Drug Administration (FDA) announcements approving a drug often cause the market to react irrationally due to media attention; short sellers use the opportunity to sell into the buying frenzy and wait for the exaggerated reaction to subside before covering their position.[citation needed] Negative news, such as litigation against a company, will also entice professional traders to sell the stock short.
During the Dot-com bubble, shorting a start-up company could backfire since it could be taken over at a higher price than what speculators shorted. Short-sellers were forced to cover their positions at acquisition prices, while in many cases the firm often overpaid for the start-up.
[edit] Short selling restrictions in 2008
In September 2008 short selling, exacerbated by Naked short selling,[6] was seen as a contributing factor to undesirable market volatility, and it was subsequently prohibited by the U.S. Securities and Exchange Commission (SEC) for 799 financial companies for three weeks in an effort to stabilize those companies.[7] At the same time the U.K. Financial Services Authority (FSA) prohibited short selling for 32 financial companies.[8] On September 22, Australia enacted even more extensive measures with a total ban of short selling.[9] Also on September 22, the Spanish market regulator, CNMV, required investors to notify it of any short positions in financial institutions, if they exceed 0.25% of a company’s share capital, and it also restricted naked shorting.[10][11].
In an interview with the Washington Post in late December 2008, U.S. Securities and Exchange Commission Chairman Christopher Cox said the decision to impose a three-week ban on short selling of financial company stocks was taken reluctantly, but that the view at the time, including from Treasury Secretary Henry M. Paulson and Federal Reserve chairman Ben S. Bernanke, was that “if we did not act and act at that instant, these financial institutions could fail as a result and there would be nothing left to save.” Later he changed his mind and thought the ban unproductive.[12] In a December 2008 interview with Reuters, he explained that the SEC’s Office of Economic Analysis was still evaluating data from the temporary ban, and that preliminary findings point to several unintended market consequences and side effects. “While the actual effects of this temporary action will not be fully understood for many more months, if not years,” he said, “knowing what we know now, I believe on balance the Commission would not do it again.
Dear Tun,
I totally agree with you we should not allow short selling meaning selling millions of shares one does not possess. This kind of market manipulation should not be allowed.
Allow me to divert. Why is Najib’s government contemplating raising prices by taking away subsidies. The government should instead not subsidise AP holders, scale down expenditure on projects, abolish national service, stop buying expensive submarines and fighter aircrafts. Dont spend lavishly on expensive purchases and later squeeze and blame the subsidies on rakyat. Last election BN lost 5 states. Dont make the same mistakes.
amin tan
Dear Tun,
Similarly what happening in Nasional Oil company, they engage oversea or mat salleh consultant. The management request the relevant department to provide the infomation including confidential info/ data to this consultant for purpose of the study. At the end, this consultant will get paid and confidential data especially related to oil and gas. please observe …
The West are not always right. Follow our own way, do not follow others when we can do things better ourselves.
Arab nations should have nuclear arms.
Tun
I wouldn’t go so far as to say we should NEVER consult Westerners. If the truth be told we do consult them on everything from economics to business to finance to politics. In a global no-borders economy, it would be unwise to sit static like the proverbial frog in the well.
As to short selling, given the current global financial mess, anything that reduces or minimises speculation should be banned and that includes NAKED or FULLY CLOTHED or whatever SHORT SELLING!! The public and our institutions like Khazanah, PNB, Mavcap, EPF, Valuecap, Tabung Haji, 1MDB etc., should be continuously educated to invest for the long-term and not turn the stock markets into virtual casinos, as is now the case with the NY Dow Jones and the currency markets.
At the height of the 1997 Asian Currency Crisis, RHB was accused of lending scripts to foreign investors to short sell, resulting in an even greater and more rapid meltdown of the KLSE than would otherwise have been the case. I believe Tun is fully aware of this beacuse shortly thereafter began the downfall of Rashid Hussein and change of ownership of RHB!!
dpp
we are all of 1 race, the Human Race
YABbhg Tun,
I agree with you.I have been in the securities industry short of 3years than your tenure as PM.I have seen how the indutry grew from a backyard industry to a world class status.As you are aware during the 1997/98 financial crisis some of us (they are still around) dealt in short selling on our currency, contributing to its downfall to RM4.80 per US$.Angela Markel knows the danger of short selling and therefore banned it.We here always look at form rather than substance for our market.Most trades in the stock market are actually intra-day trade, those who come in the morning and gets out a few hours later.Some of our companies listed on the exchange think investors do not know what is happening to them.They do not realise what brought the whole financial system in the US was derivatives.Even their authorities do not know what derivatives are all about.The Chairman of the Feds had to go to school for 2 weeks to learn about this instruments.
We seem to want to legalise a lot of things.For example Ascot gambling which was banned in the 90s.The reason we could lose a lot by not legalising it since the World Cup is on.Why not legalise Forex trading since a lot of people are turning to Internet to trade in other countries, or legalise prostitution so that the companies can be listed on the stock exchange!
Salam ayahanda Tun,
This idea came about in 1994 when I wanted to share with you at that time of your premiership (but did not know how… maybe there was no apparent reason to try). However in light of the recent two financial manipulation by rogue traders creating high RISKs to the fragile economic system ie one in 1998 during the currency crisis in this part of the world and the two ie the recent financial meltdown in their part of the world… maybe its high time to introduce this 90’s idea of an alternative Islamic economic system ie rizKonomi vs RISK-economy…
Let me explain…
Istilah EKONOMI berasal dari perkataan Greek
I distinctly remember learning in school that selling something we don’t have is haram.
Asalamualaikum Ayahda Tun,
Ya benar dan saya setuju sangat short selling diharamkan terus . Ini kerna pada tahun 1997 sy kerugian hampir RM 200,000.00 di pasaran saham BSKL.Hati jadi mudah putus asa. Melihat duit hilang.
Ikhlas,
Salam my dearest Tun Mahathir.
Perhaps I can add a wee bit to your post.
To your point 1:
On the exact definition of Short, perhaps we must distinguish between those who are “Naked” short i.e do not have the security by way of Borrowing or having a stand-by agreement to borrow and those who are faced with a genuine obligation such as Market Markers (liquidity providers) who must quote 2 way prices at all time to ensure continuous price discovery in the market. As for the Short Sellers (who are not naked i.e) having some form of agreement to borrow or have already borrowed or is having the said security in transit to their account.
The thing we should ask is Should Market Participant be allowed to have 2 way bet? i.e being Long and being Short
If for instance in the Bond Market, when interest rate rises and market is not allowed to be on the short side, then everyone have their portfolio value depressed with no avenue to take a reverse bet on the position.
Or when a security is considered to be over-bought, the activities of short sellers help the market find a new equilibrium price.
As to the “manipulation” activities eg: a Short Seller shorts a Security and spread false negative news about the firm/issuer of the security, that itself is a clear-cut offence under IOSCO member countries.
The bad vibe associated with the Shorts is always during period of market downs, when they suddenly became the black-sheep of each market…during good times nobody cares.
Now as to the required monitoring environment of markets, proper transparency requirement is key to ensure that market participants are aware of the activities of the Short Sellers hence most major exchanges requires some form of “uptick” rule ( a short seller can execute the trade if and only if the price is moving up during bearish market) plus other trade reporting requirements. But in reality this is really hard to be enforced as International Investor hold their securities using omnibus account with Global Custodian, so at the domestic side of where the e-securities reside in the central custodies the Global Custodian may be Long the security but the end investor could be SHort behind the Global Custodian. This is an issue face by most countries to identify who is the beneficiary owners of the said securities for monitoring purposes and also for taxation.
A new research was released to study if the Short Sellers are ahead of the rest from information perspective, and to my surprise they are not (according to the research..but this monkey does not think so), they just react better than others
http://dealbook.blogs.nytimes.com/2010/03/28/the-wisdom-of-the-short-sellers/
Wass and May Allah Bless you and family
satD
Salaams! I am from Sub Continent of India and an great admirer of Tun. I have been following his blog since its inception. Very often he writes in Bhasha Malay which I can’t understand. Now I am very keen to learn this Language. I hope this is simple language and can be learn quickly. Can anybody suggest and guide me as to how I can. I shall be anticipating suggestions in this blog itself or at [email protected].
Thanking you in anticipation.