Recession Crisis coming - GIC said so, must be true!

[Leepee]

Still wanting to buy that Condo and nice Convertible?

Cheap bargains will come in 2009 once the crisis hits!

So hang on tight bros......cause GIC said so!

 

http://news.asiaone.com/News/Latest%2BNews...0421-60960.html

 

GIC says global recession, crisis likely

 

Mon, Apr 21, 2008

Reuters

 

SINGAPORE - A SINGAPORE state investment fund that bought multi-billion dollar stakes in beleaguered banks Citigroup and UBS said a global financial crisis and recession was increasingly likely but that its investments in western banks were long-term in nature.

 

'The financial contagion has now spread beyond US shores, increasing the likelihood of a global financial crisis and recession,' Government of Singapore Investment Corp deputy chairman Tony Tan told a staff meeting on Monday.

 

'We could be facing a recession which is longer, deeper and wider than any recession we have encountered in the last 30 years.'

 

'We regard our investments in UBS and Citigroup as long term investments which will give us good returns when markets stabilise and economic conditions return to more normal levels,' he said.

 

GIC is the larger of Singapore's two sovereign wealth funds and bought 11 billion Swiss francs (S$15 billion) worth of mandatory convertible notes in UBS last December. In January, GIC invested US$6.88 billion (S$9.4 billion) in Citigroup in a capital raising by the US bank.

 

'We regard our investments in UBS and Citigroup as longterm investments which will give us good returns when marketsstabilise and economic conditions return to more normallevels,' he said.

 

GIC previously said it has not yet decided whether to participate in UBS's subsequent 15 billion franc rights issue. Dr Tan said that GIC had entered the market turmoil well prepared after it had taken a more conservative stance in its investment portfolio by selling stocks in the third quarter and holding more cash.

 

'We are now entering a period of extreme uncertainty in the world economy and the global financial markets. As banks continue to de-leverage, cutting down on their lending activities and causing contraction in credit supply, the prospects for the US economy and even the world economy are fraught with considerable downside risks,' he said.

 

GIC says it manages 'well above US$100 billion'. But analysts say the fund's assets could be larger than US$300 billion, making it one of the world's biggest sovereign wealth funds.

 

Morgan Stanley said in February that GIC was the world's third-largest sovereign wealth fund with US$330 billion in assets under management, behind the Abu Dhabi Investment Authority with US$875 billion and Norway's Government Pension Fund with US$380 billion.

 

Temasek Holdings, Singapore's other fund, has to date invested US$5 billion in Merrill Lynch. -- REUTERS

Edited April 21, 2008 by Leepee

[Apollo]

forget the distraction, where is the Kasteri leeport?

[Starry]

Strange, you still believe in them?

[Cheekg98]

hinting to us our $$$ that are invested in GIC and UBS are stuck there for the long term ...

Edited April 21, 2008 by Cheekg98

[Apollo]

the good news is nobody will b responsible..

 

good news must always report!

[Nolicense]

no lar, this bad news to scare us to vote for them.. if these 2 years more recession recover or not so bad, they will say, see, this is pap leadership. more good years.. staying together moving ahead..

[Bugsbunny]

Vote for PAP!!!

We must stay together to move ahead

 

joking.

[Leepee]

Worldwide recession.

1) The foreign richie rich will have less spare monies to invest in Singapore properties.

2) The tourist will travel less to Singapore.

3) Our purchasing power is greater with the appreciation of our Sing$, so expect cheaper OMV in future. Cheaper cars!

 

When will the slowdown be felt in Singapore?

No ministers or newspaper wants to be the first to speak bad things.

 

In the mean time....hold on tight for the wild ride!

[Tyreboy]

finally my prediction is correct, i have been telling friends and family that since mid of last year, there will be a recession in 2008 and the chances are high...so it seems that GIC has further my prediction. Lucky, I have been prudent and put in more savings early last year...those who commit buy car, condo, expensive reno, etc...will face the brunt in the next half year....now is job security cos once US officially announce they in recession though they already are, worldwide will be panic, market meltdown, MNC will start to pull out or close operations in all countries except HQ

Edited April 22, 2008 by Tyreboy

[Leepee]

Everyone is living in a dream.

Not many seems to want the good times to end.

 

Friends/Colleagues are still spending the same.

Buying cars and house, many still believe the gov say casino will bring progress to Singapore.

[Watwheels]

U give ppl false hope for recession leh.

 

World may face deepest recession in 30 years. BUT govts can lessen the pain by acting swiftly to stabilise markets.

 

Must read carefully what they say.

[Tyreboy]

our country is too dependent on US economy, china and india markets already slow down and there is already signs of slow growth or maybe slight economy downturn in india and china in the next 2 quarters. Olympic in china will not turn the asia region around, OPEC refuse to increase oil output citing problem does not lies with them but US housing, credit and war on terror are the root cause...who knows whether the 2 IR consortiums pull out last min citing unable to proceed further due to increase cost, unable to secure further loans as banks also in the red etc...these foreign consortiums can make a quick exit, probably kenna LD by the governments but at least they dun need to suffer long term loss...in the end we singaporeans pick up the sxxt where the foreigners left (in which we are famous at) to continue IR dreams

[Guyver]

Still wanting to buy that Condo and nice Convertible?

Cheap bargains will come in 2009 once the crisis hits!

So hang on tight bros......cause GIC said so!

 

http://news.asiaone.com/News/Latest%2BNews...0421-60960.html

 

GIC says global recession, crisis likely

 

Mon, Apr 21, 2008

Reuters

 

SINGAPORE - A SINGAPORE state investment fund that bought multi-billion dollar stakes in beleaguered banks Citigroup and UBS said a global financial crisis and recession was increasingly likely but that its investments in western banks were long-term in nature.

 

'The financial contagion has now spread beyond US shores, increasing the likelihood of a global financial crisis and recession,' Government of Singapore Investment Corp deputy chairman Tony Tan told a staff meeting on Monday.

 

'We could be facing a recession which is longer, deeper and wider than any recession we have encountered in the last 30 years.'

 

'We regard our investments in UBS and Citigroup as long term investments which will give us good returns when markets stabilise and economic conditions return to more normal levels,' he said.

 

GIC is the larger of Singapore's two sovereign wealth funds and bought 11 billion Swiss francs (S$15 billion) worth of mandatory convertible notes in UBS last December. In January, GIC invested US$6.88 billion (S$9.4 billion) in Citigroup in a capital raising by the US bank.

 

'We regard our investments in UBS and Citigroup as longterm investments which will give us good returns when marketsstabilise and economic conditions return to more normallevels,' he said.

 

GIC previously said it has not yet decided whether to participate in UBS's subsequent 15 billion franc rights issue. Dr Tan said that GIC had entered the market turmoil well prepared after it had taken a more conservative stance in its investment portfolio by selling stocks in the third quarter and holding more cash.

 

'We are now entering a period of extreme uncertainty in the world economy and the global financial markets. As banks continue to de-leverage, cutting down on their lending activities and causing contraction in credit supply, the prospects for the US economy and even the world economy are fraught with considerable downside risks,' he said.

 

GIC says it manages 'well above US$100 billion'. But analysts say the fund's assets could be larger than US$300 billion, making it one of the world's biggest sovereign wealth funds.

 

Morgan Stanley said in February that GIC was the world's third-largest sovereign wealth fund with US$330 billion in assets under management, behind the Abu Dhabi Investment Authority with US$875 billion and Norway's Government Pension Fund with US$380 billion.

 

Temasek Holdings, Singapore's other fund, has to date invested US$5 billion in Merrill Lynch. -- REUTERS

 

Guess they are right.

 

Especially this phrase ...

 

'We could be facing a recession which is longer, deeper and wider than any recession we have encountered in the last 30 years.'

[Darth_mel]

Vote for PAP!!!

We must stay together to move ahead

 

joking.

 

You mean if we vote for PAP, economy will get better ?

 

If economy gets better, will our lives be better ?

 

History has proven otherwise.

 

[Albeniz]

The thread was started a year ago, I thought it was a new announcement by GIC

Edited March 22, 2009 by Albeniz

[RadX]

yah lor....rewind thread hor

[Drive_carcar]

Good to revisit old threads sometimes. Good to revisit this thread again end of 2009 and see what happens.

 

Things are constantly changing. After an extend period of time with stock market crashing every week, we just came off 3 up weeks. This weeks sets to be a mixed week as we await the US Treasure Secretary announcement of details fo the bank rescue plan. His previous announcements in which he did not provide any details spooked the socks out of the market, so hopefully this week he don't screw up again.

 

IMHO this could be the pivotal week. If the market is happy with the plans, confidence is restored. Only with market confidence restored, then we can really be on the long hard road to recovery. If Timothy Geithner screws up again, then God help us!

[Jerms]

honestly, i think this article is to frighten ppl and also to lower our expectations as well as to let everyone know GIC is not to blame for the $ lost. Of course 2009 is not going to be a miracle year where everything will be bullish again... but from the way they wrote the report as well as from the way they try to angle the story.. more like covering up for the investments they have already made.

Edited March 23, 2009 by Jerms