History Repeats Itself?

Back in 1998, Robert Kiyosaki in The CASHFLOW Quadrant wrote, "Historically, if people lived to be 75 years of age, they live through two recessions and one depression. As baby boomers we have gone through two recessions, but we have not yet seen that depression. Maybe there will never be a depression again. But history does not say that."

He further said, " Just as there are waves on the ocean, there are great waves in markets. Instead of the wind and sun driving the waves of the ocean, the waves of the financial markets are driven by two human emotions: greed and fear.

I do not think that depressions are things of the past because we are all human beings and we all have emotions of greed and fear. And when greed and fear collide, and a person loses badly, the next emotion is depression. ... Economic depressions are emotional depressions."

Wow! What an explanation. Is he an economics history professor? Economics philosopher? Economics prophet, or what?

Forbes magazine wrote, "In the year 2010, the first baby boomers turn 65. In the year 2010, instead of adding money to the stock market, baby boomers will begin withdrawing money from the stock market ... if not earlier."

From the above, it appears that the present economic tsunami and financial meltdown is not something that is unexpected.

The U.S.A. is the world's number one international debtor. Numero Uno! Just servicing the debt amounts to some $250 billion! That is just the interest payment, baby! Not the principal.

The principal is some $40 trillion! People like Robert Kiyosaki have said, "The world will realise that the U.S. will not be able to borrow its way out of ... problems." It also means, without any new policy or financial invention, the U.S.A. may go bankrupt. Sooner or later. So, you better be careful where you put your money!

I attended a 4-week training program on 'Oil and Gas Accounting' in 1985. The American professor who conducted the training had a similar view.

Is 2008's global financial turmoil (starting with the U.S. sub-prime loan crisis), the manifestation of what some economists have been aware all along, all these years?

The manifestation of greed, with which the sub-prime loan crisis has been attributed to. And the manifestation of fear, which has led to the credit crunch when even banks have no trust (or confidence) in another bank's ability to pay. For fear that the other bank may collapse completely. And no wonder - 25 U.S. banks failed in 2008 compared to 3 in 2007. With even the likes of Lehmann Brothers going bankrupt, and global Citibank needing a U.S. government bail-out.

There appear to be many around the world who are still in denial about the present global economy going to be in a depression. Perhaps it is politically incorrect (or dangerous) to say that you will be facing a depression soon.

Perhaps afraid of a self-fullfilling prophesy? I guess it's a little bit too late now for such a thing.

The moral of the story? Understanding history is important because it indicates where you have been. And where you will likely be going.

All indications for the year 2009 (as prophesied by Robert Kiyosaki and similar like-thinking economists and businessmen) is that you are going to experience a global depression. Maybe worse than the 1930s!?!

If you follow the Boy Scouts' motto "Be Prepared", you have nothing to worry. If not, then may the Good Lord be with you.

There is a silver lining in the clouds, though. If you are a true investor, this is the opportunity in the crisis. Everyone will be selling (stocks, real estate, etc). In a fire-sale (arising from people being emotionally depressed), the calm investor will go for the bargain.

Are you a calm investor? Then, strike when you are ready!

I wish you Success in your undertakings and Good Health and Wealth to you and your family. Take care!

P.S. It now appears that for $3000 (or less), you can buy a house in some parts of the United States. The banks have to sell the houses (almost for free) so that they are not burdened with maintenance charges and local taxes. (The other big reason is that banks are not in the home realty business, but in the money-lending business, so they do not want to keep any foreclosed house on their accounts). Of course you may need another $15,000 - $20,000 for repairs. Or you can just demolish the house and build a brand new one. The land, for one property with 0.38 acres, is certainly worth more than the $3,000 plus the demolition costs.

P.P.S. On 29/Jan/2009 I read that the International Labour Organisation (ILO) forecasts that(for a worst case scenario) global unemployment could rise (by the end of 2009) by 51 million people, to 230 million (7.1% of the world's labour force). The worst recession since the Second World War.

Why Do You Need To Market 'You'?

Is Coca Cola an internationally recognised brand? Have you drank Coke? The Real Thing?

If Coca Cola is a readily recognised international brand, why do they spend lots of money on advertisements and promotions? After all, everyone knows Coca Cola, isn't it?

So what is the reason they spend a lot on promotions and advertisements? To be number 1? Yes! You are right! They have a lot of competitors, such as Pepsi Cola.

If Coke spends tonnes of money to market itself, shouldn't you - a mere unknown (at this point in time, but certainly not forever!) - also do some promotion? Some marketing? Self promotion?

One fine day in 1997, I decided to join an international MLM (multi level marketing) company. Why? Because you can make lots of money? True, but that was not the principal reason; because I had no confidence that I would be able to do what it takes in that business.

My principal reason was to find out how network marketing works. To understand its principles, so that when people give their opinion on this method of marketing products or services, I will give a knowledgeable answer. From actual experience of being in the industry. Rather than hearsay.

MLM or network marketing companies use one of the most effective forms of advertising or marketing - word of mouth. That's what I learnt.

Are we digressing from our topic? No, because another lesson I learnt is that if you are in any business, you should promote that business.

Me? I was trying to hide it. From anything that breathes. Why? Because some folks have the wrong information on the MLM industry. They 'think' its a pyramid scheme. (And I was afraid people would associate me with this). Because they 'think' (without the right information), they do not take 'action' to grap one of the best business opportunities in the world.

Once he learnt about the awesome power of the network marketing business model, Robert T Kiyosaki wrote "The Business School for People Who Like to Help People" to describe the advantages of being involved in the network marketing industry.

Of course, network marketing is not for everyone. But it sure would be a great help for a lot of people, if they just opened their minds.

Robert Kiyosaki also states that one of the most important personal skills that you must learn, to succeed in life, is selling! Because selling trains you to tame the fear of rejections! Can you handle twenty 'No's before you get one 'Yes'?

Harv T Eker wrote, "... any leader who can't or won't promote will not be a leader for long, be it in politics, business, sports or even as a parent. (Also)... Leaders earn a heck of a lot more money than followers!"

The moral of the story? If you do not promote yourself, no one else will. If you do not sell your business, no one else will. If you do not transfer your enthusiasm ('the radio wave by which you transmit your personality to others'), no one else will. Go sell, with integrity, the product "YOU"!

I wish you Success in your undertakings, and Good Health and Wealth to you and your family. Take care!

P.S. In case you are the curious kind, which MLM company did I join? Give me your answer in the Comments space. If you give me your email, I will confirm the answer privately! Of course, if you guessed right, I will give you a little gift. Fair deal?