Riverside Piazza and Watertown at Punggol

Things are stirring at Riverside Piazza. Raffles Education will shift their main campus to Merchant Square by end 2012, right next to Riverside Piazza.

http://www.raffles-college.edu.sg/index.php?option=com_content&view=article&id=44&Itemid=20

There will be around 3500 students in the campus, which will boost rental demand in residential properties around the vicinity. The 2 nearest condos are the River Place at Clemenceu Road and The Riverside Piazza at Keng Cheow Street, just next to the campus.

The future campus of Raffles Education

 Amendities at River Point

 Opposite is the Clark Quay MRT, the Central and Riverside Point

River Place is a full service condominium that is leasehold. It is selling at between 1300 - 1500 psf (median price in Nov 2011 was $1402 psf) now. However it is around 560m from the Clark Quay MRT and one bus stop away. It has full facilities and has a fantastic landscape. Gross rental yield is around 4.1%. River Place was completed in 2000 so any hopes of en bloc will not come true until 2020.

The Riverside Piazza is also a leasehold apartment. But it does not have full condo facilities and is a mixed development. In terms of location, it is better than River Place because it is around 300m nearer Raffles Place and is about 100m away from Clark Quay MRT. The median price of Riverside Piazza is 1,143 psf and the gross rental yield slightly higher at 4.1% to 5.2% (depending on whether you create a new room out of the large living room space). The Riverside Piazza was completed in 1996 so it will be ready for en bloc by 2016. Indeed, there was already discussions of exploring collective sale as early as 2007, although the price offered at the time was insufficient to achieve 80%. Regardless, the motivation of the residents is already there.

Facility of The Riverside Piazza: a Small Pool

 Little Known Apartment: The Riverside Piazza

The Riverwalk is also leasehold and completed in 1990. It's location is even better, just 500m from Raffles Place MRT compared to The Riverside Piazza which is around 800m and River Place which is around 1.3km. It's median price is 1,474 psf, which makes it the most expensive of the 3 condos. However, its rental yield is only around 3.0%. The reason for its very low rental yield is its very high asking price due to en bloc rumours for the last 3 - 4 years.

My take is when it comes to rental yield, The Riverside Piazza will have the biggest upside due to its closest proximity to Raffles Education. By 2013, we could see The Riverside Piazza's gross yield rising to 5 - 6%. River Place's rental yield could rise to 4.2 - 4.7%.

In terms of en bloc potential, River Walk would be the best bet, although the ground floor F&B shops seem to be doing very well so I'm not sure if they will agree to it. The Riverside Piazza's shop owners seem more keen to en bloc as the business is much quieter.

River Place is more of a family condo with fantastic surroundings. I've checked the price and it hasn't risen much since 2010 Jan. Back in Jan, the price was around 1230 psf. It has risen by around 14% since. The Riverside Piazza has risen from 940 psf in Jan 2010 to 1,143 in 2011, around 22%. Riverwalk's price stayed the same since Jan 2010, from 1,430 to 1,474 psf.

Three very interesting condominiums, each with certain attractions. I prefer The Riverside Piazza due to its highest gross rental yield, lowest psf price and potential collective sale.


Watertown

http://watertownpunggol.org/

http://www.youtube.com/watch?v=6Gf9rmxbY9U&feature=youtube_gdata_player

http://www.property-report.com/far-east-organizations-watertown-development-makes-a-splash-18482

I visited the Watertown show flat today. It was filled with Singaporeans. Impressive! I asked the sales rep and she said that 90% of the buyers are Singaporeans living around Seng Kang and Punggol. Most of them are also HDB upgraders. The big selling point of Punggol is that it's right next to the Punggol MRT and there's a huge shopping mall underground. But the selling price is not cheap. For a place as faraway as Punggol and for a leasehold property, the SOHO unit is going for around 1,150 psf and the 3 - 4 bedroom units 1300 - 1400 psf. That's as expensive as buying The Riverside Piazza or the River Place!

I checked the attractions around the area. A good project should ideally be near major areas of employment. That is why condos in Raffles Place are going for between 1800 - 2500 psf. The nearest areas of employment is the Changi Business Park, which is around 1.4 km away and accessible by bus. Not bad. You might attract tenants in IT / HR departments which are usually located there.

The only primary school within walking distance is the Edgeware Primary. So there isn't a major pulling point for families to buy that area, unlike in Henry Park or Bukit Timah, which is near all the good schools.

If you choose the best units, which are the 3 - 4 bedroom units, you will have a view of the waterway which is very soothing.

I marvel at the sight of so many Singaporeans opening their cheque books for this project, even after the latest ABSD. I reckon owners of HDB around Seng Kang and Punggol may have made between 80 - 200k and some may decide to cash in, while others saved enough to cough up for their dream private property.

2012 is a major test of residential property in Singapore because the supply from HDB and private sector is slowly trickling in. But I really doubt if 2012 will see a huge dip. I suspect prices will trickle up by 5 - 10% or stay flat at worst because interest rates are still very low. 2013 is where around 30 - 40k of completed properties hit the existing inventory. It is also where interest rates may start to trickle up. If stocks hold up in 2012 due to QE, then 2013, which is post US Presidential elections, could be the start of the bear. It could be a sterner test for properties. Properties could fall 10 - 20% in 2013. But I think 2014 could be even worse because that's when interest rates may start to rise. Affordability could drop and rental fall due to oversupply. We could see another 10 - 20% fall in 2014. Altogether a 20 - 40% drop in property price is entirely possible in property mad Singaporeans.

Investment Outlook 2012: Can May Have Been Kicked Down the Road to End of 2012

I am a trend follower. So when the trend of an asset class slows down I tend to take sell half my holdings and if the trend reverses, I sell the remaining half. For long term trends, I tend to look at the 200 day EMA and the monthly stochastics. These are by no means the only indicators that I look at.

Table 1 shows the monthly chart of the MSCI World ETF, called IQQW (Saxo ticker) and is listed in one of the European exchanges. It gives a fairly accurate prediction of major turning points in the ETF. On 1 Mar 2009, it indicated a turnaround in trend, which we all know started a bull rally that lasts until today. There was a "dead cross" on 1 Apr 2010, which subsequently resulted in a deep correction that began from May 2010 to Aug 2010. Around 1 Sep 2010, 4 days after QE 2 was announced, a bullish crossover occured. The ETF rallied rallied a further 20% from 1 Sep 2010 to 1 Feb 2011. From then on, warning signs were aplenty that the world's stock indices could have reached its peak and start a long descend downwards. Most trend followers started shorting around March 2011. Most indices crashed below their 200 day MA in late Aug, indicating the end of the bull run. However, another important criteria must be fulfilled before we can call for the start of a bear market - the index must remain below the 200 day MA for 3 consecutive months with no breaks above it.

Table 1



It is often only possible to identify a bear market 6 months after the event, because like in 2007 Nov, the MSCI World did not break below the 200 day MA until Jan 2008 and there was a break above the MA in Apr 2008 and again briefly in Jun 2008. Trend followers would have suffered some whiplashes along the way, largely shorting the MSCI World since Jan 2008 with brief periods of long positions, but largely avoiding the plunge in Oct 2008.

Back to the recent events: Most indices broke above the MAs around Nov, less than 3 months after they were breached from above. It meant that the stock markets may have avoided a bear. However, they were still forming lower highs and lower lows. On 1 Nov 2011, the monthly stochastics had a bullish crossover. I covered most of my shorts by mid Oct 2011 and went long by late Oct 2011.

Here was what I wrote back on 9 Oct 2011, stating that we are probably in a bear and rebound of 10% or more may be possible, so I adviced investors to refrain from panic selling.

http://musingsonwallstreet.blogspot.com/2011/10/we-are-in-bear-that-may-last-till-mid.html

On the same day, I released another post justifying why there may be rebounds and chances of exiting on a high up to 7-8 months after the start of a bear.

"Conclusion:

My take is that we usually have better exit points for equities up to 7 to 8 months after the highest point. But if those chances are not taken, we could suffer huge falls. Our experience in 1987 showed that it could not be avoided because the crash took place over 3 days. But the crashes in 2000, 2008 and now will probably give us opportunities to exit with around 10% losses.

Get out early, get out on rebounds. If unsure, stay sidelined and do bonds, do CTAs. "

http://musingsonwallstreet.blogspot.com/2011/10/why-i-think-rebound-of-10-or-more-may.html

By Nov 1, when the monthly stochastics turned bullish, but the MSCI World remained below 200 d MA, I turned cautiously bullish. I decided that no shorting should be done, and any long positions should be small because we are still in a bear zone, although the momentun has turned positive.

Since 1 Dec 2011, the S&P500 has pierced above the 200d MA and so did the MSCI WOrld. We went into bull territory and I added more long positions. Usually, if the monthly stochastics turned positive, I would expect momentum to continue for at least 2 months. I expected the rally to end by end January. 2012 at the earliest.

Fundamental issues

But before Christmas, the ECB announced a EUR489 billion bazooka plan. Come February, another bazooka will be announced. Together, the amount of quantitative easing may reach EUR1 trillion, which is around US$1.3 trillion, more than twice the QE2 amount which pushed S&P500 up by 30% between Aug 2010 - May 2011. European banks began  snapping up European bond issues, earning "risk free" spreads of between 1.5 - 4% for 3 year tenors. This form of QE is not just a liquidity boost, but a fiscal stimulus as well because it keeps the European governments' public programs running. The effects could last as much as a year on the stock markets. As for the real economy, the impact could range from marginal to effective.The banks in Europe are still deleveraging and socialist region of EU is still in austerity with no major reforms.

Sentiment

On 4 Jan 2012, I said I was tempted to be bullish. Too many analysts are bearish and the majority are usually not right. Many money managers have stayed on the sidelines, trying to talk down the markets via TV interviews. It also means stocks won't fall too much because the liquidity is waiting to dip back into stocks.

http://musingsonwallstreet.blogspot.com/2012/01/prelude-to-2012-outlook.html

How long has the can been kicked down the road?

When most analysts are bearish, you should be bullish because too much money is on the side. Valuations were also reaching 2008 levels. All these factors point to a good start to 2012.

Looking at the weekly chart of the MSCI World ETF (table 2), the ETF is at overbought territory and is due for a correction. Since it is reaching the Feb 2011 high, which is a big resistance, I would take some money off stocks by the end of Jan. The daily chart also showed heavily overbought levels (table 3). Another big indication of a correction is that the index is around 7% above the 200 day MA. The last time it reached that level was in Feb 2011 and it followed by a reversion back to the MA. But any correction will be minor because a lot of money is still sidelined. A lot of fund managers are waiting for a rebound to enter. That's why if we have entered the 1st of 5 waves up, the 3rd wave is usually the strongest following a pull back. Feb/Mar may be a better time to enter the market.

Table 2

Table 3

All this money printing will end in tears. the CPI of Europe is around 2.7% and in the US 2.4%. THe UK is already hitting over 4%, Singapore over 5%. Unless the EU reforms their archaic laws that stifle growth, aggregate supply will be constrained and we may see inflation reaching over 3.5% by end of 2012. I believe the US' CPI will be heading towards 3.5% too by end 2012.

We could have a dreadful 2013 indeed! More dreadful than if the markets have started crashing in 2011. The longer the bull run, the longer the crash. If interest rates do finally rise in 2013, the liquidity will be unwound from assets like property. Gold could collapse. This could be the final year of the secular bull run of gold.

Conclusion

I have increased my allocation to equities to 30% instead of 20% in my last 4 Jan 2012 post. But I will effet it only in Feb and not now. I will reduce alternative allocation down to 30%, mainly from Amundi Volatility as it has done very well in 2011 and volatility may be lower in 2012.

Equities 30% (mainly commodity related sectors, like First State Global Resource, JPM Natural Resources).
Gold 20% (mainly gold futures, not gold equities because the diversification benefits are lesser for the latter, Schroder Gold).
Alternatives 30% (mainly Amundi Volatility World and Winton).
High Yield Bonds 20% (mainly Templeton Total Return and Alliance Bernstein Global High Yield)

The sectors that look very cheap are: Energy, Materials and Industrials, in other words, cyclicals.

Sector ETF Expectations If P/Es Revert To 1/1/2011
				P/E Growth	Profit Growth	Potential
				(Contract)	(Expect 2012)	Return ‘12)
Utilities Select Sector SPDR (XLU)				14.6%	0.0%	-14.6%
Consumer Staples Select SPDR (XLP)				7.4%	8.4%	1.0%
Health Care Select Sector SPDR (XLV)				7.1%	11.3%	4.2%
Consumer Discretion Select SPDR (XLY)				-3.4%	10.5%	13.9%
Technology Select Sector SPDR (XLK)				-9.6%	13.9%	23.5%
Energy Select Sector SPDR (XLE)				-23.5%	2.3%	25.8%
Industrials Select Sector SPDR (XLI)				-14.9%	13.6%	28.5%
Financials Select Sector SPDR (XLF)				-21.8%	12.7%	34.5%
Materials Select Sector SPDR (XLB)				-32.9%	8.6%	41.5%
S&P 500				-15.0%	10.2%	25.2%

In terms of countries, emerging europe's valuations look very good in terms of ROE vs PTB. Latin America and China look cheap as well. I particularly like China now because their inflation is heading south and they are likely to cut rates. I am also particularly interested in looking at India as well because their economic data is so bad that it cannot get any worse according to the OECD Composite Leading Index.

Do not get carried away by the bullishness by May 2012 though. I believe as the bull run extends past its 3rd year and nears its 4th (March 2009 - March 2013), we could see a huge crash when one of the events occur:

1. US presidential election finishes in Nov 2012 and either Obama or the Republicans start to make the painful austerity measures needed to rein in fiscal deficit.

2. Greece finally decides to throw in the towel, resulting in a disorderly crash. I would only trade financials at this stage.

3. Inflation flares up quicker than expected and we enter a stagflationary stage.

4. War in the middle east involving Iran may cause oil price to hit USD150 / bbl.

I believe a meaningful secular bull rally won't start until 2014...

Singapore 3 Month SOR and SIBOR Rising

Chart 1 shows the 3m SOR vs SIBOR over 5 years. The reason that SOR is lower than SIBOR most of the time is that USDSGD weakened over the last 5 years. It is only in the last 4 months that SOR rose from 0.25% to 0.55%, because USDSGD strengthened.

 

Why did USDSGD strengthen? Because there is fear in the market and most investors are liquidating their funds and repatriating them back to the US. It is also due to loss of faith in the monetary system, causing investors to flock to hard currencies like the USD. in extreme distress, even gold cannot save you. Only USD can. The third reason for SOR to strengthen is that banks are running out of USD. The most important currency in the world is in short supply because every investor is hoarding it.

Chart 2 is a 3 month snap shot of the SOR vs SIBOR. It shows the SOR surpassing SIBOR in the last 4 months. The SIBOR is more stable than SOR because it is an agreement by the association of banks in Singapore, not subject to the whims of currency speculators.

 

Chart 3 is very interesting. It shows that even the SIBOR rose recently from 0.344 to 0.398%. Since SIBOR is not affected by the USD, it is an indication of Singapore bank's distress. If you think that the stress in EU is far away and will not affect Singapore's banks, you are wrong. Even Singapore banks are starting to be a little more jittery than usual.

 

The rise in SOR and SIBOR continued dispite the EUR489 billion of liquidity pumped into the system to quell the distress. It may indicate that the liquidity flush is not working. This is worrying because the so-called "big bazooka" by the ECB has failed to calm the financial system.

The world is still in a heightened state of stress and I will be very cautious about investing in any form of risk assets at the moment.

Prelude to 2012 Investment Outlook

I am tempted to be bullish. Chief reasons for being so are:

1) Most analysts and retail investors are bearish for the first half of 2012 and then more bullish for the second half. This is exactly the reverse at the start of 2011, when most were bullish. In 2011, stock markets peaked around May for S&P500 and as early as Nov / Dec 2010 for Asia and Emerging Markets. Hence, it is almost a universal truth that the majority are usually wrong and we should go contrarian. First half of 2012 therefore may not be as bad as most think but the second half of 2012 could be worse than most anticipated, when investors start to pour in money.

2) Many high networth clients are holding on to cash or very safe investments, like high yield bonds, investment grade bonds, alternative funds. They are waiting for that dip in stocks to enter. When so many are waiting for dips, it usually is either very shallow or does not occur.

3) Valuations are relatively cheap. If you look at PE ratios, we are just 10% above March 2009 levels. But if you look at the 10 year average earnings PE, we are 30% above the median and there may be 50 - 70% downside. Profit margins have yet to normalise.

4) Interest rates are still very benign at least until 2013. This is highly conducive for risk assets to rise. 

However, the technical picture is still rather bearish. Asia ex Japan and Emerging Market stocks are faring worse than the US. Look at the STI chart below. Despite the rally on 3 Jan 2012, the first trading day of this year, the trend is still a bear. Volume is still well below Aug 2011 level when there was a collapse. There are huge resistances along the 200d MA at 2950. 

The S&P500 chart looks a lot better. The index is forming an upward and it is possible for the index to reach 1300, even to 1500, although the latter would be unlikely. 

This is a prelude to my outlook for 2012. Lately, the economic data coming from China, India, the US and EU have been better than expected. Only the EU is in contractionary mode, i.e. PMI < 50. The rest of the major economies are either flat or expanding slightly. The EUR489 billion QE by ECB appears to have kicked the can down the road.

Conclusion:

The day of reckoning has been delayed for 6 to 12 months. Central banks are hoping that by boosting liquidity, the financial sector will lend more freely to companies, which in turn invest / engage in capex. But the demand has to come from somewhere. In a world where half the world's GDP is deleveraging at the consumer level (mainly the OECD countries), consumers from emerging markets are unlikely to plug that gap. At best, we will muddle along. Global GDP will fall to between 0.8 - 1.8% for 2012. That's as bad as 2008's Global Financial Crisis. The worst is yet to come. But in the meantime, markets may fluctuate quite a bit. Stay safe and go for dividend plays, alternative funds that can long/short all asset classes.

The only reason stocks have not crashed to 2008's lows is the financial rigging by central bankers. My asset allocation under such a scenario is:
Equities 20% (mainly commodity related sectors, like First State Global Resource, JPM Natural Resources).
Gold 20% (mainly gold futures, not gold equities because the diversification benefits are lesser for the latter, Schroder Gold).
Alternatives 40% (mainly Amundi Volatility World and Winton).
High Yield Bonds 20% (mainly Templeton Total Return and Alliance Bernstein Global High Yield)

Margin Call: A Movie All Bankers, Regularos and Clients Must Watch

2011 has ended. I spent my New Year's eve watching perhaps one of the greatest finance movies ever made. Margin Call is better than Wall Street and Wall Street 2. The script was fantastic, the dialogue incredible. Every word uttered by Jeremy Irons, Paul Bettany and Kevin Spacey were incredibly clever. It exposes the dark, under belly of banking.

It portrays employees from an investment bank (a veiled reference to Lehman Brothers) being retrenched. Eric Dale (played by Stanley Tucci), who runs risk management was retrenched. He tried to warn the bank that it was taking on too much risk by holding on to mortgage backed securities (MBS) and presumably, he was not popular with the senior management for telling the truth. It was so unjust but true. You cannot fight against the sales department if they have been contributing a lot to the bank's revenue and nothing awry has happened. But it's the risk managers who are the unsung heroes, who try to rein in the risk the traders take. It's like a goalkeeper, a defender or a midfielder. Nobody appreciates the person who made the tackles that results in the goals, or the players who provide the assist. Everybody worships the strikers who score the goals. The CEO usually comes from a profit generating department, e.g. trading, private banking, bond sales, investment banking, corporate banking etc. So the CEO usually leans towards sales, not risk management. It's called "playing with other people's money". All bank employees, including the CEO are paid so much to produce short term profits that they sometimes take too much risk to make those profits. So do the people in the trading team. It's a game of "heads the employees win, tails the clients lose". For the big swinging dicks, there's only upside, big pay packages. The downside is they get fired and leave with a huge package anyway. For clients, the upside is they get their little bit of yield, the downside is they lose their deposits, their mortgages, their homes.

One criticism of risk management though. Using value at risk to measure safety is foolhardy. How could anyone measure tail risk by talking about a 90% probability of an asset price losing an X amount? Black swan events that have never been factored into the sample may occur and render whatever VAR useless.

The decision by management (Jeremy Irons plays CEO John Tuld) was to sell off the toxic debt the next day; To sell it all quickly. Along the way, many great quotes were spoken. Many lessons learned. At some stage, Kevin Spacey argued with his boss not to dump the Mortgage Backed Securities into his counter parties because it would harm his customers and they will never be able to sell anything to their clients again. His boss (Simon Baker) said, "it's just sales, it's simple". Kevin said, "we need to sell something that will keep our clients coming back for more".

This is a movie that every banker, regulator and client should watch. It is about how dark banking can be. Yet, bankers are not all evil. Bankers perform necessary functions in order for the ordinary folks to live well, as epitomised by Paul Bettany (Will Emerson character), " People wanna live like this in their cars and big fuckin' houses they can't even pay for, then you're necessary. The only reason that they all get to continue living like kings is cause we got our fingers on the scales in their favor. I take my hand off and then the whole world gets really fuckin' fair really fuckin' quickly and nobody actually wants that. They say they do but they don't. They want what we have to give them but they also wanna, you know, play innocent and pretend they have know idea where it came from. Well, thats more hypocrisy than I'm willing to swallow, so fuck em."

Therefore my advice is to choose your banker / adviser carefully. Choose someone who's lost a lot of money because he / she will understand the pain of losing money and be more careful with yours. Choose someone who's seen many cycles, so they will have the experience to act accordingly at every circumstance. Choose someone who's investing himself, for wealth management is about people who are wealthy seeking advice from people who take trains to work. Finally, choose a banker who's got your interest in mind, a Kevin Spacey type of character. Someone who stays up and night and ponder what it's all about.

For my next entry, I will be writing about what I think we should do in 2012.

http://www.imdb.com/video/imdb/vi1070504985/

http://www.youtube.com/watch?v=uj4QrAcwVi0

Memorable quotes forMargin Call

John Tuld: There are three ways to make a living in this business: be first, be smarter, or cheat.

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John Tuld: I don't get any of this stuff.

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Will Emerson: Well, that was fucking hideous.
Sam Rogers: It's gonna get worse before it gets better.

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Eric Dale: I run risk management... it just doesn't seem like a natural place to start cutting.

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Seth Bregman: Will?
Will Emerson: Yeah?
Seth Bregman: Did you really make two and half million bucks last year?
Will Emerson: Yeah... I did.
Peter Sullivan: What do you do with all that money?
Will Emerson: I don't know really. It goes pretty quick.
Will Emerson: Well the tax man takes half of it up front. So now you got what... million and a quarter. Mortgage grabs another 300K, I gave 150 to my parents to live off, so now you got what?
Peter Sullivan: Eight hundred.
Will Emerson: I bought two cars last year for 150 total. Probably another 100 eating... 25 on clothes, put 400 away for a rainy day...
Seth Bregman: Smart.
Will Emerson: And what's that?
Peter Sullivan: 125 left.
Will Emerson: I spent 76,520 dollars on booze, dancers, and whores.
Peter Sullivan: 76,520?
Will Emerson: Yeah, kinda shocked me, although I was able to write most of it off as an entertainment expense!

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Peter Sullivan: Aren't you tired?
Sam Rogers: A little... but I don't work as hard as you do.
Peter Sullivan: That's not true.
Sam Rogers: No it is.

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John Tuld: So you think we might have put a few people out of business today. That its all for naught. You've been doing that everyday for almost forty years Sam. And if this is all for naught then so is everything out there. Its just money; its made up. Pieces of paper with pictures on it so we don't have to kill each other just to get something to eat. It's not wrong. And it's certainly no different today than its ever been. 1637, 1797, 1819, 37, 57, 84, 1901, 07, 29, 1937, 1974, 1987-Jesus, didn't that fuck up me up good-92, 97, 2000 and whatever we want to call this. It's all just the same thing over and over; we can't help ourselves. And you and I can't control it, or stop it, or even slow it. Or even ever-so-slightly alter it. We just react. And we make a lot money if we get it right. And we get left by the side of the side of the road if we get it wrong. And there have always been and there always will be the same percentage of winners and losers. Happy foxes and sad sacks. Fat cats and starving dogs in this world. Yeah, there may be more of us today than there's ever been. But the percentages-they stay exactly the same.

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Will Emerson: Jesus, Seth. Listen, if you really wanna do this with your life you have to believe you're necessary and you are. People wanna live like this in their cars and big fuckin' houses they can't even pay for, then you're necessary. The only reason that they all get to continue living like kings is cause we got our fingers on the scales in their favor. I take my hand off and then the whole world gets really fuckin' fair really fuckin' quickly and nobody actually wants that. They say they do but they don't. They want what we have to give them but they also wanna, you know, play innocent and pretend they have know idea where it came from. Well, thats more hypocrisy than I'm willing to swallow, so fuck em. Fuck normal people. You know, the funny thing is, tomorrow if all of this goes tits up they're gonna crucify us for being too reckless but if we're wrong, and everything gets back on track? Well then, the same people are gonna laugh till they piss their pants cause we're gonna all look like the biggest pussies God ever let through the door.
Share this quote

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Sam Rogers: You are panicking.
John Tuld: If you're first out the door, that's not called panicking.

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Will Emerson: Try not to think about it too much. Some people like a longer commute. Who knows why?

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Peter Sullivan: These people have no idea what's about to happen.

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Sam Rogers: The real question is: who are we selling this to?
John Tuld: The same people we've been selling it to for the last two years, and whoelse ever would buy it.
Sam Rogers: But John, if you do this, you will kill the market for years. It's over.
[John nods grimly]
Sam Rogers: And you're selling something that you *know* has no value.
John Tuld: We are selling to willing buyers at the current fair market price.
[Sam lowers his gaze]
John Tuld: So that we may survive.
Sam Rogers: You would never sell anything to any of those people ever again.
John Tuld: I understand.
Sam Rogers: Do you?
John Tuld: Do *you*?
John Tuld: [pounding on the desk] This is it! I'm telling you this is it!

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