$$$$ Are you in debts? $$$$

[Osiris]

Please note the original TS started this thread 2 years ago.

 

 

[Shanhz]

  On 5/26/2010 at 12:50 AM, Osiris said:

Please note the original TS started this thread 2 years ago.

 

yah, since then, 90% of singaporeans have paid off their debts and are now debt-free

[Zanter]

I suppose depends on your pespective. Many many companies including Termasek issue debts aka bonds to finance their operations as they think they can create higher value of returns by leveraging even after taking into account the interest cost of servicing those debts.

 

For the individual, a certain amount of debt may be neccessary like say you wish to buy a home, how many people have cash at hand to pay all? However many borrow with the consideration that somehow the debt will be repaid in future w/o any clear plan on the question of "How".

 

The world does run on debt and if the source of debt runs out, we see a situation like Lehman bros or the Greece debt crises. Maybe if we started with the premise that we have to save for everything, then perhaps the world would be in a better position than it is now, however the Pandora's box was open a long time ago.

[Iisterry]

  On 5/31/2010 at 3:22 AM, Zanter said:

Many many companies including Termasek issue debts aka bonds to finance their operations as they think they can create higher value of returns by leveraging even after taking into account the interest cost of servicing those debts.

 

Temasek is probably a bad example of creating higher value of returns.

 

According to a report posted on the website of Temasek Holdings, it incurred a whooping $8 billion dollars in administrative costs for the financial year 2008/2009.

 

The other expenses for 2009 are broken down as follows:

Selling and Distribution $5.042 billion or 3.57% of assets

Finance charges $2.727 billion or 1.93% of assets

Other operating expenses $15.333 billion or 10.88% of assets

 

Temasek Holdings is staffed by 350 people.

 

In its 2009 financial statements and balance sheets, Temasek had $140.953 billion in assets which was down from $169.844 billion in 2008, representing a loss of $28.9 billion dollars or 17 percent of its portfolio.