Sam Seng of Singmoney.com a.k.a. jiang-zua-ji is really stuck. Like all patriotic Singaporeans looking out for himself and, where possible, his neighbours, he wants to be part of the solution. Only this time round, the leaders cannot seem to pick the right people to spend on the stimulus package. Just weeks earlier, world class banks like Citibank and UBS wiped billions off the investment portfolios of the government linked companies.
If Seng lacked anything, it is self-confidence. "So many scholars, so much PHd's, such strong reserves, they also got it wrong. Me? Forget it, I'm even worse!"
Informed common sense says, spend a bit more. You might save company A from closing down, help save the shopowner from bankruptcy, or the job of the shop assistant. However, self-preservation says, what can my spending do if no one else gives the shop business. Furthermore, I might go bankrupt myself. Can I afford it? Let someone else be the hero.
If ever a society lacked the belief that an individual can make all the difference, it's the utilitarian society that largely encourages the sacrifice of the one person for the greater good of many.
One last thought for risk managers: the rating agencies who got it so wrong in rating securities corrupted by the sub-prime mortgages mixed with the good stuff as AAA grade, they mismanaged big time at the worst possible time. It's time to take a risk. Anything is better than inaction. But who can be trusted with the spending solution?
Addendum: What would I do? I'd follow the classic words to being a Man:
"If you can make one heap of all your winnings
And risk it on one turn of pitch-and-toss,
And lose, and start again at your beginnings
And never breath a word about your loss" - That's what it takes, that's what we must do.
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