One man's greed, another's investment
The Editor, Sir:
Please allow me to respond to the article by Bida Quee, 'Writer betrays greed, selfishness'. In much the same way as the writer confused 'betrays' with 'portrays', he has confused financial management with greed.
First of all, the financial sector is based on the borrowing of funds and investing at a higher rate. We call it financial strategy, but he obviously calls it greed. I guess, in like manner, persons who buy at one price and sell at a higher price could be called greedy. Like it or not, that's just how things are.
The financial market is built on integrity and trust. The Government came to us in a liquidity crisis and offered us a lucrative rate of return that made it worth our while to rearrange our plans to accommodate them, which some of us did. Would we have done so at a lower rate? Some might have, some might not have because it would not have been worth our while.
So, would onlookers have preferred us to walk past and not subscribe to the bond? Would that have been the better option for us greedy persons? Well, you may very well have your wish, because truly, there is no way I would be caught placing my funds with an unscrupulous person, as the Government has turned out to be.
It does not matter how high or low the return is, or what instrument it is - shape or form - if it could be so unscrupulous to investors on government bonds, why not all other government securities?
The Government has lost all credibility with the investing public and, in like manner, as we are probing the loss of a generation of entrepreneurs, we will certainly need to be probing the loss of a generation of investors in government securities.
As unacceptable as the cut in interest rate is, because of poor financial management and planning, it is tolerable; what is beyond tolerance is the clamping down of investors' funds for at least another four years. It is being publicised as a voluntary exercise - we are given no option, but are mandated to sign the form even though the cash-flow implication may wreak havoc on our personal finances - almost like signing a suicide note ... or else!
I am, etc.,