Friday, March 17, 2023

Wisdom of the Crowd - New Issues

1. Will China be able to help a peace settlement to the Ukraine war?
2. Will Russia win the Ukraine war?
3. Will America and Europe support a peace settlement in Ukraine?

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WOTC - President of Singapore

 Wisdom of the Crowd: 93% of respondents said that they will vote for Lee HY as president of Singapore.

Thursday, March 16, 2023

Tiresome to register a warranty

 I install a new air conditioner from Mitsubishi Asia.

My contractor asked me to register for a warranty.
I have to scan the QR code on my mobile phone and went to their website. It was the home page, and not the registration page. I had to go through the website and finally found "Register your product".
Why can't the use a QR code that lead directly to the registration page?
It was difficult to submit the registration details using a phone. The process was interrupted by many popups, which make the submission quite difficult. After trying it a few times, I gave up.
I went to the website (by reading the website address from the phone).
It was much easier to submit the registration details from the website. I manage to complete it, but still with some trouble.
Mitsubishi should have just directed the customer to register on their website on their laptop or desktop. By providing a registration through the phone, with a small screen, they made the process quite complicated.
Finally, before confirmation the registration, I have to agree to allow my private data to be used for marketing, etc. This was supposed to be an option, but I could not uncheck it. It was mandatory.
If I do not agree, I could not submit the registration. I think that Mitsubishi is breaking the law.
Anyway, I am used to bad business practices in Singapore. I am tired of lodging a complaint, when the authority does not care. Businesses are treating customers unfairly and get away with it.
Tan Kin Lian

WOTC - Lee Hsien Yang

 Wisdom of the Crowd: 94% of respondents have a positive opinion of Lee Hsien Yang.

Digital display of stop number

 I suggest that the bus should have a digital display of the stop number,

Wednesday, March 15, 2023

Wisdom of the Crowd - New Issues

1. If US stops importing from China, which country will suffer more?
2. How will the failure of a few banks recently impact the financial system?

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WOTC - Presidential election 2023

 Wisdom of the Crowd: 94% of respondents said that they will vote for Lee Hsien Yang if he contests in the presidential election.

Monday, March 13, 2023

Large losses on mortgage loans

 American banks may suffer large losses on the mortgages, due to the sharp rise in interest rate.

This is explained here.

I expect US bank stocks to fall sharply in value.

Penalty on early withdrawals

 Silicon Valley Bank faced a "run on the bank". Due to premature withdrawals of deposits, they faced a liquidity crisis and had to sell their bonds, ahead of maturity dates, at a loss.

Their planned to raise additional capital to cover their loss of $1.8 billion USD. Given some time, and with the right price, they would be able to raise the additional capital.

They did not have the time. Their customers panicked and withdrew their deposits. They could not meet all the demands.

One problem faced by a bank is that they have to invest the deposits to earn revenue to pay the interest on the deposits and have a margin to cover their expenses and leave a profit.

To prevent a "run on the bank", the bank should be allowed to impose a penalty for early withdrawal. Currently, the penalty is rather small (e.g. forfeiture of interest for the current period).

While this forfeiture may be adequate under normal times, the bank should be allowed to impose a large withdrawals to prevent a run on the bank. For example, the bank should be allowed to impose a penalty of, for example, up to 30% of the deposit.

If depositors have to pay a high penalty for premature withdrawal, especially at a time when the bank faces a liquidity crunch, they may decide to keep their deposits until the maturity date. This would give sufficient time for the bank to raise additional capital and prevent a collapse.

If the customer does not wish to face this penalty, they can keep their money in the current account and earn no interest.

Another arrangement is for the central bank to provide liquidity to the bank (at the market rate of interest) to meet withdrawals.

Maybe, it should be a combination of both measures, i.e. tap on central bank for emergency funds and impose a sufficient penalty on premature withdrawals.

Tan Kin Lian

Sunday, March 12, 2023

Wisdom of the Crowd - New Issues

1. Will the collapse of the Silicon Valley Bank lead to more problems?
2. Should the US Feb cause its hike of the interest rate?

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Messy system of business mail

 I sent this suggestion to the Smart Nation Office and the Minister to clean up the messy system of receiving business mail.

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