27 December 2008

Good News! - - > We Get to Start at Zero!

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Bad News is, unless you have the kind of ears and eyes that see good come from bad, you will simply hear the bad news and see bad things come of it. But if you have the ears and eyes to see good come from bad, then you may hear the bad news and see how to turn a bad occurrence into a good opportunity ( aka Ex Malo Bonum ).

With that said... 2008 saw the burst of a greater financial bubble throughout the entire economic world which sent ripples through every stock market and local bank. Immediately afterward you see and hear citizens marching onto international airports, war breaking out simultaneously in four corners of the eastern hemisphere and elsewhere as well as the continuing saga in the middle-east with Israel and Palestine.

And there's proof of very intimate government and corporate shenanigans at such high leadership levels.... which smell of tactics by hostile regimes we've horrifically read about in thick history school books growing up.

Food prices go up, gold value continues going up and the movement of money comes to a stop because trust is lost. The debt-less blame those in debt, the conservative blames the liberal yet the machine devours another country, culture and applies a clandestine economic enslavement.

Business and Employment opportunities shift from offering credit to recovering debt. Now the pillaging really begins. Now the transfer of wealth among the populous commences. The elite supra wealthy have had their way all along and have finally believed to have triumphed in their scheme to clench the entire world's population under control. At least financially speaking they have attempted to do that.

Recent history shows the uneducated use of credit giving rise to the highest debt amounts and over-leveraging ever seen on both business and personal levels.

The idea of saving and investing in order to grow and prosper was forgotten somehow and exchanged with borrow to consume and enjoy now while paying with interest forever.

The rug was swept from under everyone's feet once again similar to circa 1929. Well, at least everyone who was not debt-free and not dependent on a relative, boss or company for income / sustenance.

Makes you realize why finances and money making isn't taught in school aside from choosing a 9 to 5 for 1/3 of your life and take 1 or 2 weeks out of 52 "vacation" which costs you about 2 weeks worth of that dismal life. Not talking down to anyone so please do not take offense. Only dissing what tried to entangle me and many others. Yet did not! You may be there or you may want to be... or you may not.

If you directed your financial life / business these past eight years with any awareness of the "invisible hand" in the market and how it can easily slap you down at an instance, you were liquid and had little to no debt when the credit stopped flowing. Everyone else with a demanding debt-to-income ratio suffered and either had to make minor to major adjustments, liquidate partially or worse, had a fire sale and failed.

I remember receiving phone calls in 2007 that offered hundreds and thousands units of single family residential blocks offered at 30 - 50% loan to value in some instances. At that time, the small players were nowhere to be found when it came to these massive inventories of new and used homes targeted to already over-leveraged or non creditworthy end-buyers. The numbers simply didn't make sense. Most knowledgeable investors saw the trouble brewing. Citigroup, GMAC and other big institutional buyers ended up with the load and added their creative twists and turned their profit... and then we saw the whole pyramid finally crash in 2008.

Uncle Sam calls the money cartel, commonly known as the Fed or Federal Reserve and requests more debt for the citizens of the United States at interest. The politicians place the siphoned money into the central banks and other cohorts while duped citizens continue to lose their homes, jobs, credit rating, etc. The stock market goes through fits adjusting to the influx of "recently created money" ( remember the $750B stimulus package which purchased preferred bank stock instead of mortgages and the fact that banks day trade too ).

For some, opportunity couldn't be at its best. For others, their misery had only begun. He gives and He takes away. Justice is missed and yet justice is served while justice is absent while judgment awaits. 

20 December 2008

Starting Line

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Cheers All,

I first successfully leveraged the knowledge of creating money using real estate back in late 2005, just a few months after my grandfather's death. It was bittersweet to say the least. I was living under his roof as he slowly came to the end of his days before my eyes. I learned a great deal more than just money those last few years living with my grandfather. I had been educating myself on how to make a living while not having to work my entire life paying for it. Little did I know the door I had opened brought much more than the knowledge of money.

Two weeks after I laid my grandfather to rest I was scheduled to take a written exit exam for my bachelors degree. I failed to pass. My mind was numb from the loss as my eyes were swollen from crying. It took the rest of the year for my head to come together. It has taken my heart much longer.

But by year's end, I had managed to launch my first business and shortly made more in a month what had taken my grandfather two years or more to make during his lifetime. Bittersweet indeed, but I know he saw what I did and was glad, because he was worried about me.

Reflecting on how much and how hard he worked to provide for his family led me to find out how to make ends meet while still living a proud existence with family and friends ( aka living life to the fullest ). I have chosen not to follow in his steps of employment or hard work ethic, I chose a road of work and reward coupled with smart work ethics. That tough choice has allowed me the perspective to view the world as so many authors and poets write about, and so many greedy and selfish folks take advantage of.