What is Helicopter Money?

What is helicopter money?

·         The government spends, but when it spends more than it taxes, it must borrow. This is fiscal policy.

·         The central bank controls the money supply and can create new money, and uses those powers to push interest rates up or down. This is monetary policy.

·         Helicopter money just marries these two powers - The government spend using new money created by central bank (instead of using taxing & borrowing).

Pro & Con

·         Pro - It would allow the government to spend more, and thus juice job creation and wage growth, without increasing the deficit.

·         Con - Inflation could increase more than expected

When to use?

·         In the very low interest rate environment when interest rate cannot go down further (such as Japan which are currently at negative interest rate), helicopter money may be an alternative from that perspective.

The Japanese used to do it in Malaysia during World War II.. Back then, it was called Banana Money.

Someone who you think will harm you, may be the one who save you..

A bus full of passengers was traveling when suddenly the weather changed & there was a huge storm n downpour & lightning all around.

They could see that d lightning would appear to come towards the bus & then go elsewhere.

After 2 or 3 horrible instances of being saved from lightning strikes, the driver stopped the bus about 50 ft away from a tree & said -

"We have somebody in the bus whose death is a certainty today."

Because of that person everybody else will also get killed today.

Now listen carefully what I am saying ..

I want each person to come out of bus 1 by 1 & touch the tall tree trunk & come back.

Whomsoever death is certain will get caught up by d lightning & will die & everybody else will be saved".

They had to force the 1st person to go & touch the tree & come back.

He reluctantly got down from the bus & went & touched the tree.

His heart leaped with joy when nothing happened & he was still alive & went back to the bus.

This continued for rest of the passengers who were all relieved when they touched the tree & nothing happened.

When the last passenger's turn came, everybody looked at him with accusing eyes.

That passenger was very afraid & reluctant since he was the only 1 left.

Everybody forced him to get down & go & touch the tree.

With a 100% fear of death in mind, the last passenger walked to the tree & touched it.

There was a huge sound of thunder &!the lightning came down & hit the bus - yes the lightning hit the bus, & killed each & every passenger inside the bus.

It was because of the presence of this last passenger that, earlier, the entire bus was safe & the lightning could not strike the bus.

LIFE LEARNING from this..

At times, we try to take credit for our present achievements, but this could also be because of a person right next to us.

Look around you. Probably someone is there around you, in the form of Your Parents, Your Spouse, Your Children, Your Siblings, Your friends, etc, who are saving you from harm..!

Think About it.

You will surely find that Person..!!

Why do you need Mortgage Reducing Term Assurance (MRTA)?

What is MRTA?

MRTA is an insurance policy that settles outstanding home loan amounts in the event of death or total disablement of the borrower due to natural causes, illness or accidents. Exclusions include death due to suicide and AIDS/HIV.

Why do you need it?

Generally, in the event of untimely death or disability of a home loan borrower, the greatest problem facing surviving households is their ability to pay off the remaining home loan.

In many instances, the surviving family members may even need to sell off the property at a less-than-competitive price just to pay off the outstanding amount.

By signing up for an MRTA, the MRTA will pay off part or all of the unpaid portion of a home loan, so that the surviving family members don’t have to sell off the property.

Why Relist A Delisted Company?

The norms for a relisting of the delisted company is same as is for the new listing ie. raise of equity capital to expand/grow business, provides an exit mechanism for shareholders (cash-in quickly), enhance company reputation, free media attention, easier equity fundings through corporate action, etc...

 

Lets see how the smart Astro does magic with the relisting exercise. Astro was delisted in 2010 at RM8.3 Billion and will be relisted soon around RM18.7 Billion in just two years later, for a cool RM10.0 Billion difference. And even cooler, the company is relisting without its overseas operations.

 

Ahahh. Stunned?

How is Initial Public Offering (IPO) shares being ballotted?

All applications received are sorted into Bumiputera or non-Bumiputera categories (except for some ACE Market IPOs which are not segregated) and also in terms of denomination of shares applied.

Electronic Share Applications (ESA) and Internet Share Applications (ISA) applications furnished by all participating ESA banks and internet participating financial institutions will also be electronically sorted into the required categories.

Counting of applications is thereafter done.

The subscription results are presented to the Directors of the IPO Issuer for information purposes as well as to determine the basis of allotment of available shares via balloting in the event of oversubscription.

In determining the number of successful applications to be balloted in each category, the Directors will give due consideration to fair distribution to a reasonable number of applicants to ensure a broadened shareholding base which will establish an adequate market in the trading of the shares to be listed. The minimum share spread required under the Listing Requirements of the Bursa Malaysia Securities Berhad will also be observed.

Having decided on the basis of allotment, balloting of successful applicants in each category of shares will be carried out. Using 2 sets of passwords, balloting is electronically done with the 7 digit random numbers assigned to each share application randomly picked by computer. Reserve applications representing about 10% of successful applications will also be balloted. The balloting is conducted in the presence of the Directors of the IPO Issuer and external balloting auditors, the only party with access to the balloting program.

The Securities Commission, Bursa Malaysia and the media are informed of the subscription and balloting results.