b.Who Would Hear Me Cry?

The last part is here:   xox - Banks Are Now Fucked

I had failed in business before. It was a truly painful experience. It took me many years to recover.

Now I see my business development in a much clearer light.

When the business is small, it will have small problems. But each small problem can kill any progress. Luckily these problems are small in nature. As long as I am careful not to over-stretch my reach, these problems will always go away when I have given them enough rubbing. The small business will survive somehow.

I don't have a chance to operate a large business. What I know are normally read from the media and from the business operators in my transactions. Recently I noticed many large companies are selling their buildings to shore up their books. They even agreed with the reit buyers that they would rent back their buildings at 7% p.a. in rental returns for the next 15-20 years. On top of that, these businesses even guaranteed their buildings to be fully tenanted. Why such poor terms?

[These business owners are fucking dumb. At 7% p.a. rental, at exactly 14 years, the reit owner would have gotten back his cash purchase 100%. The reit owner needn't  worry as the building is normally very purposed built for the current incumbent. The fucking business got nowhere to go! 

This simply means the business cost is still high, if not, higher than before.]

Based on normal business development, it is usual for the successful company to buy up their own pad to operate their business. This will ensure that the cost of operating from the production premises to be fixed and not keep adjusting through the years by their greedy landlord.

Unfortunately in certain fucken little island, such a purchase decision is bad. The premise would normally go for very high price, i.e., the instalment payment is way more expensive compared to pure rental. Nonetheless, since the company is successful, such a purchase decision is very sound. Given the current healthy cashflow, the bank is also very supportive. A purchase is then made.

Unknown to the business owner, all businesses go in cycle, i.e., boom and bang. In harder times, the business owner got no choice but to release the property again into the market. He simply can't afford to pay the super high instalment due to poor business cashflow. The market is bad. The reit vultures swoon in for the kill. They create very bad terms for the property purchase, i.e., low selling price and very high rental per month for very long period. Soon after, the business still goes belly-up due to ever increasing operating costs.

The big countries did it right. They move on to cheaper countries for their production and business.

This is very sad. Many of such big businesses were so sexy and suave that I can't even talk to their ceos. They stopped treating me as a friend. They were so high up there.

Well. Big business means big problems. One small wrong move, the banks would still bankrupt the business owner, as the bank wouldn't lend any money unless it is personally guaranteed by the business owner himself.

I don't have tears for these business owners. I was never treated well by any one of them anyway. It is fun to see them boomed and banged within one life-cycle. Small people small joy. Big people big bang. I had always chose to be a small person.

My father is damn good. He always advocate cash. Now I truly learned his value. Love him deep deep.