Najib type of bailout v Anwar type of bailout. Tales by an unknown blogger no 72

1. Try as he may or carry out verbal acrobatics and semantics, the 1.1b extended to Sapura to pay off a phalanx of vendors, it's regarded as a bail out anyway.

2. Let's call it Anwarbailout, a particular product of anwarnomics. this is to differentiate it from najibbailout ,a product of najibnomics.

3. So , it's Anwarbailout v najibbailout.

4. The differentiation is necessary because the mad cow diseased UMNO youth chief, thanked Anwar for adopting Najibs proposal to bail out Sapura.

5. Wait a minute you landlubbers, there are differences between the Najibbailout and Anwarbailout, as we shall see later.

6. Anyway, no shame UMNO , ever the opportunist, will stake a claim for doing something of which it has no part at all .

7. As the Malay saying says, the milk is produced by the cow, the cattle gets the name .

8. The Najibbailout is a carte blanche for Sapura. Just give money and let Sapura does with the money any how it likes. Owners and management can even stuff the money in mattresses, pillow and bathtubs. Just don't forget to donate some to UMNO and some politicians individuals.

9. For Dr Mahathir, the man who can walk on water, bail out is an opportunity. An opportunity to put in his cronies in the target company and channel funds to it.

10. That's how UMNO and Malay supremacists understand what a bailout means. It's just a glorified income transfer. Not paying back pun tak apa. Malay owned companies are entitled to government largesse.

11. The Najib or Mahathir bailouts would have the same effect. It's business as usual as money comes easy.

12. The same enabling structure allowing rapaciousness, greed, reckless investments, profligate spending etc will still b there . What do you think will be the results?

13. The Najib type of bailouts will perpetuate business doomsday.

14. So anyone thanking Najib for pointing the way to his type of bailouts, deserved to be ostracized and deserve public opprobrium.

15. Knowing the measure of the man, the Anwar type of bailouts, would entail the following. At least, I hope they do .

16. The main difference is that under the Anwar type of bailout, the enabling structure that allowed the mess to happen to Sapura is dismantled.

17. I am not 100% sure the things I am about to say have taken place, but I sure hope they will happen.

18 . Carry out changes in the ownership of Sapura. Let new shareholders come in. Do away with the astronomical remuneration packages enjoyed now

19. The BOD must consists of people with excellent technical and business knowledge. They must be Malaysians not necessarily must be malays. We don't want a case an LCE graduate is a bod member so long as he is Malay.

20. Learning from the case of Sapura, there must be an oversight committee separate from the bod. It's to evaluate every big investments.

21. Certainly, the CEO must be removed and most of the management team be cashiered.

22. I am in favour of breaking up Sapura into 3 or 4 separate profit centres. Let them compete on the parameters, I mentioned in an earlier article.

23. Forget about sentimentalism when dealing with Sapura. The PM must adopt the attitude, I am not interested in preserving the status quo but am interested in overthrowing it.

24. You see, the Najib type of bailout preserves the enabling structure creating the mess Sapura is in while the Anwar type of bailout removes it. Big difference, towkay.

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Cleaning the Sapura Shit. Tales by an unknown blogger. No 71

1. These are the economic reasons why I think ,bailing out Sapura is wrong as a matter of principle .Nevermind, if it's camouflaged under the pretext of paying vendors. Almost all are bumis .

2. I am not going to wail about the PM pandering about bumi vendors or about helping Sapura vendors but what about Malay farmers?

3. These are not economics reasons but political score points. Only politicians do that. As one prominent person said, I am not interested in being politically correct, only correct.

4. These people are just mouthing Democratic party empathy , sentimentalism, cafeteria socialism, smoked salmon socialism etc.

5. We are tired of these self appointed social justice warriors behaving sanctimoniously, regarding themselves as the only ones who can speak about bumiputera. If other than them, the PM for example,he is just being opportunistic.

6. Our economy is a private enterprise economy. It's based on profit and loss principles. The loss part is more important. It's the principle that weeds out the incompetent, poorly managed and badly operated companies .

7. Government bail out prevents the self correcting principle of a market economy .

8. Have the bozo mcs officers at MOF and other departments actually think about the costs of bail outs?

9.sapura is a company probably founded on UMNO values. Get an exclusive license, monopoly, privileges and make as much profit as possible. Confound careful investment decisions. If fail, ajib gor or wak jahid can help ( when they were in power). Just spend, baby spend!

10. Being a creature created by private enterprise means, if it gets into a mess, use private enterprise solutions. Not public enterprise solutions. This is the incompatibility issue.

11. This is wrong number one . Sapura is a car running on petroleum products. Now it wants to switch using fresh or salt water.

12. If u mix water with petrol ,your engine will produce knocking sound and your engine will eventually koyak

13. If water is mixed with jet A1 fuel or aviation fuel, the water will freeze over a certain altitude. The plane crashes.

14. Later , the government bail out will crash down bringing with it, taxpayers money, sapura, the vendors and the government. They will never get repaid .

15. If I see the goons who advised the PM, I will circumcise them a 2nd time.

16. Long ago, when Anwar then was debating the issue and quite badly at that, I wrote articles opposing any form of bailouts.

17. I mentioned about profligate spending , reckless investments. Perhaps, there were some corruption elements in the joyful spending. Maybe the authorities need to investigate on the joli katak spendings no?

18. As fish rots in the head first, change sapura s ownership and replace most of its management team. They are the ones who caused the mess in sapura in the first place..

19. Now , we come to the thorny issue of the vendors. We must remember they made a conscious, deliberate and voluntary decision to do business with sapura. They knew of the risks and gains .

20. Having made the bed, they must now lay on it .

21. Sure our democratic party empathy, pompous caring for others, our LV and caviar socialist leanings make us pity them .

22. But the bugger who owes them is sapura. By helping to pay them, we are in effect bailing out sapura.

23. Now that pak sheikh has already decided to help them because of his kindness and sentimentalism, there's nothing we can do. Except I hope he will be mindful of what I have said.

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The Sapura bailout. Tales by an unknown blogger. No 70.

1. As details about the 1b bailout of Sapura comes slowly, I will come up with the appropriate response.

2. A bailout by any other name is a bailout . Saying it's for paying vendors, insults our intelligence.

3. Now, call me a neo classical dude, a Friedmanite, Austrian school Hayek stooge or just a pain in the ass confused economist, be my guest. Stepping in to save Sapura on account of saving vendors, is the government -saved jobs fallacy.

4. What it does is to prevent the efficient allocation of resources by rewarding poorly and badly managed company and punishing the good ones .

5. When the US government bailed out Chrysler, it didn't do it for lee iacoca ( cola,). No siree, it says that because it wants to save jobs and vendors.

6. The American consumers don't use or consume the parts supplied to Chrysler, the steering wheels, gears, door knobs, glass screens etc. in other words, consumers are asked to pay for things they don't need, on their own. If they can afford it, they buy completed cars assembled by Chrysler.

7. What happened to Sapura , happened to Chrysler in the 1970s. The government thought it's saving Chrysler by bailing it out. To cut the long story short, the US government didn't.

8. Similarly the Malaysian government is using the save jobs fallacy to bail out Sapura. It's doing it the wrong way.

9. The government should allow Sapura to fail because its poorly and badly run. Let new owners take over and run it well. Vendors can choose to do business with new owners. As to old owners take a class action against them.

10. Hey, our economy has been described as a free enterprise system, market economics.

11. The lynchpin of that system, is profit and loss. Not profit alone. Sometimes the loss part is more important as it endures poorly and badly run companies are weeded out. Like Sapura.

12. Success can be a bitch..if intervention in Sapura is successful, it might embolden policy makers intervening in other industries even when it's not warranted. Then night as well have businesses run by government officers

13. Bailouts would distort the market. By propping up an inefficient company, would encourage other companies to also behave irresponsibly knowing uncle non would be there to help.

14. By allowing unviable companies to fail, would be good for the market. It allows capital to flow to more productive uses.

15. Not holding that against Sapura, it's just business. Then, there is the moral hazards argument. Companies would take unnecessary risks knowing if they fail, some do gooders and special interest groups in the government will come helping .

16. I am not faulting Anwar for citing bumi matters. That's for politicians to do. I am just presenting cogent economic reasons. Although I am a politician, I am also interested in economic reasoning.

17. Playing the race game, is the favorite pastime of UMNO politicians and Malay supremacists. Hidup melayu!

18. We cannot reward the inefficient and punish the competent .

19. One final stupid question.. pardon my ignorance. If the 1b is for the vendors, register them. Pay them directly. Don't pay sapura.

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Saving sapura, the orang minyak. Tales by an unknown blogger no 69

1. I am speaking as an economist. The question I am asking is where is the economics logic behind the 1 billion bailout of sapura energy?

2. Thats taxpayers money being used to save an inefficiently run company.

3. Because it's innefficiently and incompetently run company, is the reason why it was making losses in the beginning.

4. And yes, before some jokers say, sapura must be saved because this is maruah melayu, let me a Malay say it first - this is the usual fate that inevitably befalls a company run by the yat yat yay race .

5. When the issue was being debated by Anwar then who wasn't yet the PM, I cited some reasons as to why sapura energy shouldn't be saved . 5(b). Unless the entire management is changed. The ownership is restructured. Workers employed in accordance to merits and efficiency.

6. We have only been told of the bailout. Information of the things mentioned in para 5, have not been answered.

7. Instead, there seems to be a triumphant celebration that a bumi company, incompetently run doesn't bite the dust .

8. If there's no change in ownership, management and employment structure, we are allowing the same bozos repeating the same mistakes.

9. There will be the same profligate spending, bad investments and wrong investment decisions, ignorance of socio economic environment, careless employment structure, incompetent CEO etc. it will be more of the same.

10. Anwar Ibrahim may have been ill advised by Tom Selleck the 2nd FM and the various special interest groups. The officers, friends, reformasi otais etc.

11. If there are no rational economics reasons for the bail out, there must be non economics reasons while eating pasembor, just like laffer who drew up the laffer curve on a serviette.

12. Let me, as a Malay, but not proud in saying it, the first reason must be misplaced sentimentalism

13. This company must be saved. Ini soal maruah melayu. Though it's not soal maruah, when they privatized the profits. In fact they don't give a shit about the plebeian Malays.

14. The ownership is Malay, the CEO Malay, the workers mostly malays. Takkan melayu khianat melayu. Wow, my hair stand on ends.

15. That's exactly UMNO thinking. Retain the same clowns so that they can repeat the same schemes of running things.

16. Hello, remember what pendita zaaba says. Almost always the people who oppress and suppress the malays, are leaders of their own kind.

17. If the government lends 1b at preferential interest rates, the loan must come with several conditions.

18. Change the ownership, change the management, change the workers profile. Change the bod. Bring in new blood. PKR, AMANAH and DAP corporate people. Don't bring umno people. Corruption and profiteering from positions is second nature to them. Put in an oversight committee to evaluate all spending decisions in a week . At the most

19. Here is the most revolutionary thing. Break up sapura into 3, 4 independent companies. Each runs as its own profits centre .

20. They will compete in terms of competency, on effeciency. Most of all, compete in terms of honesty . Very unmalay right?

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