RAOK

This week's " Random Act of Kindness, Amy received most beautiful Orange ！Celebrating with her were Dyan, Lianzhen, Debeers, Jennifer, Jinn, Mindy, Helen, Kitty, Echo and Paul. Cheers!

Robert Chitty - Comparison of CCC

AIA Complete Critical Cover

Serious illness can strike the fittest of us at any time. If you were to be diagnosed with a Critical Illness, would you have enough money to pay for medical treatment and provide for your family?

AIA Complete Critical Cover is designed to help you take full advantage of the benefits of modern medicine, providing you with the financial assistance you may need to get early treatment, and continued treatment for the same illness or an unrelated illness should you need it. Should you be diagnosed with a Catastrophic Illness, you may receive up to 200% of the Insured Amount, giving you the greatest level of protection when you need it the most.

Key Benefits of AIA Complete Critical Cover

Immediate payout on early diagnosis

The plan pays out up to 25% of the Insured Amount in the event of a qualifying diagnosis of an Early Critical Illness so that you can seek immediate medical treatment and get back on your feet as quickly as possible.

Multiple claims allowed

In the event of a claim for an Early Critical Illness or Major Critical Illness, the plan will not terminate. You will continue to be protected and, if your condition deteriorates to a more serious or advanced stage, you may make further claims up to 200% of the Insured Amount. It is possible to claim for a combination of multiple Early, Major or Catastrophic Critical Illnesses up to a maximum of 200% of the Insured Amount. A waiting period may apply between some claims and for certain benefits. There are also certain exclusions under which no benefits will be payable. For more detailed information on waiting periods and exclusions, please refer to the Product Summary.

Immediate payouts up to 200% of the Insured Amount for Catastrophic Illness

For certain Critical Illnesses, the plan pays out an immediate lump sum equal to 200% of the Insured Amount less any amount(s) paid out previously.

Waiver of premium benefit

In the event of a Major Critical Illness claim, you can receive a payout of up to 100% of the Insured Amount, and you will no longer have to pay the future insurance premiums. Thereafter, your Critical Illness coverage under the AIA Complete Critical Cover plan will continue and you will remain eligible to make further claims up to 200% of the Insured Amount.

Comprehensive protection against:

• 30 common Major Critical Illnesses conditions
• 8 Early Critical Illness conditions
• 5 Catastrophic Critical Illness conditions

Major Cancer Relapse benefit

In the event of a successful claim for any of the Major Cancers covered under the policy, you will receive a payout of up to 100% of the Insured Amount. Following treatment, if your cancer goes into remission and you subsequently suffer a cancer relapse after 1 year from your remission, you may be eligible to receive a further payout of up to 25% of the Insured Amount. This benefit is subject to the 200% limit on the total Insured Amount payable under your policy. AIA Complete Critical Cover is the first policy in the market to offer this benefit.

Level premiums and guaranteed renewal

Your annual premium will be based on your age at the time the policy is issued, and remain level over the life of the policyˆ. You may renew your policy each year without further underwriting up to the policy anniversary following your 74th birthday.

Act Now!
To find out how AIA Complete Critical can meet your critical protection needs, contact your AIA Financial Services Consultant for an AIA Financial Health Check today. Alternatively, you can call our AIA Customer Care Hotline at 1800 248 8000.

How's your financial health?
Take the AIA Financial Health Check today!

Important notes:

^*The 25% discounts will be applied to the first policy year annual premium payment. If you choose to pay premiums monthly, the 3rd, 4th and 5th months' premium in the first policy year will be waived.

^{^} Premiums payable under the plan are not guaranteed. We may revise the premiums payable subject to our future obligations under the plan and any future amendments to the laws and regulations of Singapore. The premiums revision would not be on an individual policy basis.

All insurance applications are subject to underwriting and acceptance by American International Assurance Company, Limited.

This is not a contract of insurance. The precise terms and conditions of this plan, including exclusions whereby the benefits under this plan will not be paid out, are specified in the policy contract. You are advised to read the policy contract.

Buying a life insurance policy is a long-term commitment. You should consider carefully before terminating the policy or switching to a new one as there may be disadvantages in doing so. The new policy may cost more or have less benefits at the same cost.

Today's Wall Street Buzz in 60-Sec

Exclusive: Credit Suisse's Head of Multi Asset Class Solutions, Daniel Brupbacher, has left the bank, so Gerhard Fusenig has taken over his role. That means Fusenig now has three jobs: he's also Head of EMEA and Switzerland's AM.

Brupbacher "decided to leave," so Fusenig was promoted to take over his roles, a spokeswoman for Credit Suisse told us.

If you want to work in the international cooperation department at CIC, you “must be good at keeping secrets." China Investment Corp is hiring, apparently for a new hedge fund say insiders, but don't get too excited - the bank's recruitment website says that only communist-friendly applicants are welcome.

Hedge-fund manager Bruce Galloway was booted out of a swanky East Hampton restaurant when an argument with his money manager turned physical, says a witness. Apparently Galloway was furious over his seat at a dinner honoring NBA star Chris Bosh. He denies it.

Icelandic Bank officials have tracked a runaway retail magnate accused of stealing billions from a Reykjavik bank to a $25 M penthouse in Gramercy Park. Jon Asgeir Johannesson - known for his 80s rock-star hair - is wanted for plundering $2 billion from the Glitnir bank.

Apparently Goldman Sachs thinks it's being picked on by the FCIC because JPMorgan and Morgan Stanley don't seem to have been asked to disclose the same level of scrupulous detail to the agency.

This morning, the cast of the Jersey Shore rang the opening bell. CNBC's Mark Haines *almost* restrained himself from saying something inappropriate, and handlers made sure the Jersey Shore cast did the same. CNBC wanted an interview with the cast but were denied. Watch Jersey Shore ring the bell >>>

Oracle's Larry Ellison is the top-paid public company CEO this decade. He's banked $1.84 billion so far. Next on the WSJ's list is Expedia's Barry Diller, then Occidental Petroleum's Ray Irani, then Steve Jobs, then Capital One's chief Richard Fairbank. Four out of the top 25 are at finance firms, and only two are Wall Streeters. See the whole list at WSJ >>>

Apparently Georgina Bloomberg (Mayor Bloomberg's daughter), was the recipient of some very caring assistance from Polo star Nick Roldan as she limped around an East Hampton club on Friday night - she has a fractured foot from a horse riding accident.

Read more: http://www.businessinsider.com/gossip-grind-7-27-2010-daniel-brupbacher#ixzz0uvxSg16O

SocGen's Albert Edwards

FT Alphaville has the latest from SocGen uber-bear Albert Edwards.

Here's a snip:

I have for a very long time likened events now unfolding with what we saw in Japan a decade ago. Of course there are some major differences, but one can still draw clear parallels to see how extreme equity overvaluations unwind in a post-credit bubble world.

I have long maintained that even within a structural bear market, there are huge returns to be made in equities from participating in short-lived cyclical rallies like the one we have just seen. The Nikkei regularly used to enjoy 40-50% rallies as policy stimulus drove pronounced cyclical upturns in both GDP and profits. You had to remember however that you were still in a structural bear market and you had to get out when the cycle began to top out. A downturn in the leading indicators proved to be a very useful sell signal for equity investors.

Read more: http://www.businessinsider.com/socgens-albert-edwards-by-the-way-the-us-is-still-japan-all-over-again-2010-7#ixzz0uvwypgyb

Weekend's Over

The focus this week will be on the Q2 GDP report to be released on Friday. There are also two key housing reports: New Home Sales on Monday and Case-Shiller house prices on Tuesday.

On Monday, the June Chicago Fed National Activity Index will be released at 8:30 AM. This is a composite index of other data.

At 10 AM on Monday, the Census Bureau will release the New Home Sales report for June. The consensus is for a slight increase to 310 thousand at a seasonally adjusted annual rate (SAAR) from the record low 300 thousand in May.

Also on Monday, the Dallas Fed Manufacturing survey for July will be released at 10:30 AM. This is one of several regional surveys that will be released this week. Usually I don't highlight the minor regional reports, but right now I'm looking for hints of a slowdown in industrial production.

On Tuesday, the May Case-Shiller house price index will be released at 9:00 AM. The consensus is for a slight increase in the house price index. At 10:00 AM, the Conference Board will release Consumer Confidence for July (consensus is for a slight decrease from June). Also at 10:00 AM, the Richmond Fed Manufacturing Survey for July will be released.

Also at 10 AM Tuesday, the Census Bureau will release the Q2 Housing Vacancies and Homeownership report. This report provides the homeownership rate and estimates of the homeowner and rental vacancy rates.

On Wednesday, the MBA mortgage purchase index will be released. The purchase index is at the same level as in 1996 – suggesting further weakness in housing. Also on Wednesday, the June Durable Goods Orders will be released at 8:30 AM. The consensus is for a 1.0% increase.

Also on Wednesday, at 2 PM ET, the Fed will release the Beige Book for July. This will be closely scrutinized for further evidence of a 2nd half slowdown.

On Thursday, the initial weekly unemployment claims will be released. Consensus is for a decline to 460 thousand from 464 thousand last week. Also on Thursday, the Kansas City Fed Manufacturing survey will be released at 11 AM.

And on Friday, at 8:30 AM, the BEA will release the Q2 GDP report. The consensus is for real annualized GDP growth of 2.5% in Q2, down from a sluggish 2.7% in Q1. Also on Friday, the Chicago Purchasing Manager index for July will be released at 9:45 AM. And the FDIC will probably be busy on Friday afternoon ...

And a summary of last week:

Existing Home Sales decline in June

Image: Calculated Risk

This graph shows existing home sales, on a Seasonally Adjusted Annual Rate (SAAR) basis since 1993.

Sales in June 2010 (5.37 million SAAR) were 5.1% lower than last month, and were 9.8% higher than June 2009 (4.89 million SAAR).

The second graph shows nationwide inventory for existing homes.

According to the NAR, inventory increased to 3.99 million in June from 3.89 million in May. The all time record high was 4.58 million homes for sale in July 2008.

Image: Calculated Risk

Months of supply increased to 8.9 months in June from 8.3 months in May. A normal market has under 6 months of supply, so this is already high - and probably excludes some substantial shadow inventory.

The next graph shows the year-over-year (YoY) change in reported existing home inventory and months-of-supply. Inventory is not seasonally adjusted, so it really helps to look at the YoY change.

Image: Calculated Risk

Inventory increased 4.7% YoY in June. This is the third consecutive month of a year-over-year increases in inventory, and this is the largest YoY increase since early 2008.

This increase in inventory is especially bad news because the reported inventory is already historically very high, and the 8.9 months of supply in June is well above normal.

The months-of-supply will jump in July as sales collapse - probably to double digits - and a double digit months-of-supply would be a really bad sign for house prices ...

This was another a weak report. Sales were slightly above expectations (5.37 million at a seasonally adjusted annual rate vs. expectations of 5.3 million), but the YoY increase in inventory and the increase in months-of-supply are the real stories.

• European Stress Tests: Not very stressful
• Private Investment?
• Weekly Summary and Schedule, July 25th
• More State and Local Government Layoffs and the Pension Crisis
• Charlie Rose: Geithner on Financial Regulatory Reform and Elizabeth Warren

Housing Starts declined in June

Image: Calculated Risk

Total housing starts were at 549 thousand (SAAR) in June, down 5% from the revised May rate of 578,000 (revised down from 593 thousand), and up 15% from the all time record low in April 2009 of 477 thousand (the lowest level since the Census Bureau began tracking housing starts in 1959).

Single-family starts declined 0.7% to 454,000 in June. This is 26% above the record low in January 2009 (360 thousand).

This graph shows total and single unit starts since 1968. This shows the huge collapse following the housing bubble, and that housing starts have mostly been moving sideways for over a year.

Image: Calculated Risk

This was way below expectations of 580 thousand (I took the under!), and is good news for the housing market longer term (there are already too many housing units), but bad news for the economy and employment short term.

NAHB Builder Confidence falls to lowest level since April 2009

This graph shows the builder confidence indexfrom the National Association of Home Builders (NAHB).

The housing market index (HMI) was at 14 in

Image: Calculated Risk

June. This is the lowest level since April 2009.

The record low was 8 set in January 2009, but 14 is very low ...

Note: any number under 50 indicates that more builders view sales conditions as poor than good.

AIA: Architecture Billings Index shows contraction in June

Note: This index is a leading indicator for new Commercial Real Estate (CRE) investment.

Image: Calculated Risk

This graph shows the Architecture Billings Index since 1996. The index has remained below 50, indicating falling demand, since January 2008.

Note: Nonresidential construction includes commercial and industrial facilities like hotels and office buildings, as well as schools, hospitals and other institutions.

This suggests the slump for commercial real estate design is ongoing. According to the AIA, there is an "approximate nine to twelve month lag time between architecture billings and construction spending" on non-residential construction. So there will probably be further declines in CRE investment into 2011.

Other Economic Stories:

Moody's reported that the Moody’s/REAL All Property Type Aggregate Index increased 3.6% in May.

From the BLS: Regional and state unemployment rates were generally lower in June

European Bank Stress Test Results: Seven banks failed.

The Department of Transportation (DOT) reported that vehicle miles driven in May were up just 0.1% compared to May 2009

From DataQuick: California Mortgage Defaults Hit Three-Year Low; Foreclosures Rise

Unofficial Problem Bank List at 792 Institutions

Best wishes to all

Get Rich With Smart Financial Planning

Most of us dream about being rich but few of us seriously think about how to achieve it. We imagine a win on the lottery or at Las Vegas. We fantasize about how we would spend our winnings. We do not take steps to improve our financial situation.

The lucky windfall can happen, but by its nature it is rare. Most of us will never experience such a chance event. It is better to develop a plan our finances just as a we would set out a business plan if we were setting up a business. Getting rich is not a matter of chance it is down to hard work and application.

If we have not inherited wealth we must plan how to increase our income. Even if we have inherited wealth it pays to plan how to maximise what we have. Many people who are fortunate enough to inherit money fritter it away in unplanned and wasteful spending.

If you are a young person starting out in life with no inherited wealth one of the best things you can do to improve your finances is to postpone marriage. Marriage is an expensive business. It means buying a house and everything that goes with it. It also means that you may be tied to one place and unable to move to find work. At the start of your career you must be prepared to be mobile in order to advance your career.

Some employers claim they like married employees but then expect them to work long unsocial hours. Long hours will put a strain on any marriage. If you do marry then postpone having a family. Children are a serious expense. There is health care, education and a whole host of expenses to consider.

Health is one of the most important factors in economic well being. Ill health is expensive. It means doctor’s bills and loss of earning potential. So do not take risks with your health. If you smoke then give up. If you are overweight then lose weight. Obesity and smoking are major health risks. Take daily exercise. Walking or running are cheap enough for any one to afford.

Above all, avoid getting into debt. This is one of the easiest temptations to fall into. Credit is so easy. Store cards, credit cards, personal loans, mortgages all drain your income. Buying a house may be a good investment in a period of rising house prices, but in a period of falling house prices it is not. When house prices are collapsing you may get a good deal to rent.

Never buy on impulse. Obviously you need to buy things. You must have a working wardrobe if you are to be taken seriously by an employer or a business contact. But plan what you buy. Make the things that you buy last. Buy for quality. Always check out the sales and stock clearance outlets. You need to aim for quality and value.

Saving is vital if you are going to improve your personal finances. You should get into the habit as early as possible. If you have savings you can avoid debt and have a cushion against unexpected expenses. Aim to have twice your monthly earnings in reserve.

Remember though that money is only a means to an end. Do not become so obsessed with money that you cannot be happy. There is always someone with more money than you.

• 

10 Things We Learned Today

Here's today's roundup of tech news in case you missed 'em:

• Nexus One can no longer be purchased directly from Google. So long, N1… we barely knew ye.

• Once your parents tried to friend you on Facebook, you knew it was inevitable --Facebook hits 500 million users.

• First there were 500 million users. Now the naysayers aretalking of how Facebook could fall.

• As more quarterly reports roll out, Netflix manages to disappoint, despite a growth in subscribers and expansion to Canada.

• Flipboard, Flipboard, Flipboard. The iPad app is taking the web by storm today, taking social media and giving it a "prettier" spin.

• EBay and PayPal manages to surpass analyst expectations in their second quarter report unveiled Wednesday.

• Verizon is rumored to be switching to a limited data plan later this month. Say goodbye to streaming Pandora on your phone.

• Amazon boasted of the e-book gaining more ground with readers earlier this week; now Google Editions is competing by working with independent booksellers to sell e-books through local bookstore websites.

• The iPad has finally forced the hand of developers: a report says that the demand for freelancers with HTML5 skills are growing.

• Have you resisted the iPad, but still want a tablet? Wired rounds up the Apple iPad competition.

Financial Planning For Young Working Adults

My teenage daughters can’t wait to start work so that they can earn their own money and buy whatever they want! I can’t wait for them to start work so that the financial weight of funding their education is off my shoulders! But wait a minute!

High up in their agenda is to spend on whatever they want! That’s the danger sign!

Most young adults when given their first pay cheques would most probably go on a buying spree. With so much cash in hand, they will be very tempted to buy that iPhone 4, buy that dream car, eat at fine dining restaurants, go for multiple holiday trips in a year. They are free to spend whatever they fancy.

They have never been taught financial planning in school and most parents are not sure how to educate their children in this area because their parents did not teach them either.

Here’s my advice for you, if you have just joined the Singapore work force.

1) Save first, then spend the balance. Not spend first and save whatever is left at the end of the month. How much to save? 50% of what you earn is a good figure to start. Why? Because you are still staying with your parents, you do not need to pay for the utilities and other family expenses. 50% of your salary can go into your bank savings account, start an regular investment savings plan, buy an endowment policy which can be a short term or long term savings plan. Delay gratification is the first discipline you must master here.
Do not be tempted by quick rich schemes or “no money down” investments. If you don’t understand fully what you are getting into, stay out of it because most likely you will not even know it when you have lost all your money! Be prudent and patient when it comes to investments. Keep at least 6 months of your expenses in the bank and invest the rest using the other ways mentioned above. Yoour financial planner can calculate exactly how much you should save per month to achieve your wealth accumulation goals.

2) Protect the most important factor in your income producing model – YOU! Your ability to generate an income is the most vital component of your wealth accumulation plan. You must create the foundation of your financial plan, that is your wealth protection, that is your life insurance policies. You must cover premature death, total and permanent disability, critical illness and disability income. There are many insurance products out there, so getting an independent financial adviser will help you get the best value for your money. Don’t buy from your friend who joined an insurance company just to help him out. You will be paying the premiums for the next 10 to 25 years, so it is very important that you are not over paying for your insurance policies.

3) If you already have a boy friend or girl friend, who is also working, you must instill this financial planning mindset in that person so that both of you will not quarrel or separate because of financial issues. Most couples split because of financial problem. One save while the other spend. Different value sysytems will create havoc in your relationship.

4) Don’t sign up too many credit cards, two cards are enough for most people. You have to keep track of your credit spending. Pay off your credit card bills every month, don’t ever roll over and pay the minimum. If you have done that, quickly pay it off now! Credit cards are for convenience, don’t buy the product if you can’t afford it now. Many adults have fallen into this trap and have declared bankrupt. It is not a joke to be declared a bankrupt. Your bad record will follow you for life.

If you need consultant to help you design a financial plan, just make an appointment with us one of these days.

065-63738797

Office

Road Show

About Facebook And Privacy

For several months earlier this year, the tech media was absolutely dominated by discussion of Facebook's privacy policies. Article after article condemned the company for exposing its users' information, with some even suggesting there was a big opportunity for its competitors.

Eventually, Facebook made some minor concessions, and the media got bored with the story. But the average Facebook user still has no idea what he agrees to when he signs up for Facebook, or how the service's privacy settings work.

For everyone who wasn't obsessively following the Facebook privacy mess, here's a great primer on how Facebook privacy works:

A Movie for Anyone On FaceBook from Casey Neistat on Vimeo.

Finance, Economics, and Globalnomics

Recently a friend asked me to explain the difference between Finance, Economics, and my new discipline, Globalnomics.

Here is my response:

"It might help you to look at each of the three disciplines as interrelated and interdependent blocks in a pyramid. To keep the pyramid strong all three blocks and their adjuncts need to operate fully and transparently. The Globalnomics-block mediates the other two blocks of Finance and Economics. As such, Globalnomics is the eye of the pyramid (similar to the symbol of the eye in the pyramid on the one dollar bill note) that equilibrates the other blocks for fairness and optimum efficiency. Whereas, Finance and Economics serve Globalnomics, Globalnomics cannot exist in its ultimate form without good Finance and good Economics.

“I equate Finance with Business, and Economics with Economists. Financiers tend to talk in terms of NPV, IRR, cash flows, amortization, net income, discount rates, assets, liabilities, equity, etc. Economists, on the other hand, tend to talk in terms of inflation, GNP, unemployment rates, interest rates (long and short), econometric models, Keynesian versus Austrian theory, etc.

“And regardless of how much time I spend learning and trying to decipher the two different languages, based upon my own experience, I have come to view people involved in the science of Finance and Business as having typically a more Optimistic perspective than do those involved in Economics. And for that reason I consider the Finance and Business-block to be senior to the Economics and Economists-block on the pyramid. As such, I feel it is only appropriate now in this time of “economic crisis” for Business and Finance to rise up, take control from the economists, and guide ours and the world’s Economy into this new millennium.

“In line with that, and on a more practical level, this means that one of the first steps that Business and Finance must do now, as mediated by the Globalnomic-block, is to see that long term interest rates are lowered (and fixed) in order to Stimulate Business and to Lower Debt, as I have described in earlier articles written for Business Insider.”

When my friend asked me how I felt Globalnomics differed from Economics, here is what I said:

“Those who listen to the "Economists" see the United States as one of many countries struggling (or fighting) for the same piece of pie. Those who listen to the "Globalnominalists" see the United States as the leading country in a host of countries that are creating a bigger pie.”

When my friend asked how Globalnomics and Finance differed, I said:

“Finance is primarily a “mathematical” science, whereas Globalnomics is predominantly a “moral or ethical” science with a strong “mathematical” foundation. Although the inward analysis of Globalnomics can be viewed as being “mathematical” in concept, the outward analysis of Globalnomics is more “philosophical” in nature. And it is this outward nature of Globalnomics that makes it senior to the Finance-block or the Economic block. This is why I call Globalnomics the “Eye” of the Pyramid.

“Globalnomics reaffirms (possibly expands) upon the founding principals of the founding fathers of the United States in that Globalnomics claims that “All Human Beings are Created Equal and thus are endowed by the Creator with certain unalienable rights, among which include Life, Liberty, and the Pursuit of Happiness.

“Globalnomics’ fully integrated philosophical and scientific discipline is based on global rather than nationalistic perspectives. At the same time, the foundation of Globalnomics is based upon a clearly defined, commonly accepted, core set of world principals, the building blocks that shape the discipline come from the latest concepts and theories from the science of Economics.

Among the economic building blocks that shape Globalnomics are:

• Global Pareto Optimums;
• Friendly Competition;
– Perfect Competition over Monopolistic Control;
• Investment Strategy Over
– Debt Strategy Over
– Rape/Pillage Strategy;
• Increasing Gross Global Product per Capita Through Productivity Enhancements
– While Narrowing Gap Between Highs and Lows;
• Rewarding Positive Creativity; and
• A Single Monetary Unit of Currency.

“The core philosophical foundation of Globalnomics is based upon the following principles:
• Do No Harm;
• The Ethic of Reciprocity;
• All Human Beings Are Created Equal;
• Freedom Is Preferable over Subjugation;
• An Individual’s Right to Pursue Happiness; and
• The Protection and Wise Use of Global Resources.

“Military war between national entities does not fit within the framework of Globalnomics. Instead Globanomic Wars are fought on the following fronts:
• War on Hunger;
• War on Poverty;
• War on Disease Control;
• War on Prejudicial Hatred; and
• War on the Misuse of Global Resources.”

And that is how I explained the difference between Finance, Economics, and Globalnomics to my friend.

Jim Boswell (MBA, MPA, BA) is the Executive Director and CEO of Quanta Analytics. His recently published book, Crush Depth Alert, Fourth Lloyd Productions, explains in detail with supporting exhibits, graphs, and tables the factors that led up to the financial crisis while offering solutions on how to move forward. This is a follow-up to three earlier Business Insider articles called “Fannie and Freddie Need to Go—Now”; How Twenty-five Years of Mismanagement at Fannie and Freddie Created the Financial Crisis”; and “Why 4.0% Bond Rates Could Solve the Financial Crisis.”