The losses in GIC and Temasek were quite regretable and in fact alarming. The combined losses is almost equivalent to 5 times of Citigroup's net worth today.
Almost every major banks of repute, be they in US, Switzerland, London, Germany, Paris or anywhere else, they suffered brutal onslaught because of their exposure, small or large, to sub-prime or some complicated derivative investments. Hedge funds, private equities and funds of all shades see their investment declining at unbelievable rate. Unless traders properly time their shorting of markets, not many players, large or small, banks or funds, government or individuals are spared from the financial fallout.
Temasek and GIC may not have buck that trend and like the many who suffer from the financial meltdown, there was a write-downs on loss investments. Of course we are certain that going forward, there will be preservation of the funds and Temasek will position its money for the next phase of growth. The strategy now is not growth but defensive investment to preserve what is left. There is a proper time to make money and now it is not that time.
To put matter in perspective and to give some measure of support to Temasek and GIC, our hundred of billion of investment did not magiccally materialize as it mysteriously disappeared. It was not God-sent. It was painstakingly built up to become a respectable reserve. Whether those sovereign funds are from Abu Dhabi or from Dubai, they were similarly hit, if not worse off than Temasek.
The meltdown affects everyone with Madoff's Ponzi scheme crippled because of the lack of fund to pay forward to those who invested their hard-earned money in the Lehman's products in Singapore.
Almost every one is hit and it is really only how blue or black they are.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment