p.Kiyosaki's little Cashflow Game

The last part is here:   Many a Big Project

Let me do some advertisment today. There is no intention to promote or dismiss him. This is only my opinion of what's good for a guy.

I have tested the android Cashflow Game by Kiyosaki.

He was made famous and very rich by his book, "Rich Dad, Poor Dad". If you want to read more, just google him.

In the game, the goal is to make financial freedom by making the passive income exceeds expenses. For a lowly-paid guy ($3,000-$5,000), it usually takes about 70 turns to be financially free (i.e., 1.5 years). For a higher-paid guy ($8,000-$10,000), it usually takes about 100 turns to be financially free (i.e., 2 years), which is nonsensical. No one can achieve financial freedom in 2 years. Fuck! Also, a highly-paid guy will find financial freedom way faster. His expenses may have been higher but he is way more capable and have great lifestyle.

Here are my observations:

•  Final Cash Position:   At the end, it doesn't matter how much, a guy has in his bank account, as long as his passive income exceeds his expenses, he stops. With a strong final cash position, one can easily buy any cashflow assets.
• Stocks and Shares:   I didn't bother about investing in stocks and shares. I think they are bullshit.
• ROI:   The ROI calculation was too simple. It simply calculated the return-on-investment, simply by dividing the income with initial investment. It was not a good indicator/assessor of good returns. If one pays, 5% down. The ROI would be greater than a 10% down.
• Risk:   This was one of the worst areas. The game only allows 5-10% down payments. The rest are bank-loans. This is very dangerous. If the asset goes more than 5-10% down, the bank is going to recall the loan as the asset is not giving a good cover to their outstanding loans. In financial downturns, one would lose the rental income too. If these properties are on loan, one would be 冚家鏟!

Overall, the game was too simplistic. But, maybe this was intended as a game for newcomers new to the investment game and the broad idea behind passive incomes. If that was the intent, then the game did serve its function.

My Comments:

• Cash Purchases:   I am still a fan of cash purchases. I simply hate leveraging. I knew many people leveraged and won big time. But, I am also knew of many more, myself included, to have lost big time. Call me a chicken, call me once-bitten, twice-shy. I am not playing the leveraging game ever. Even credit cards are shunt, because it will eat greatly into the cashflow. If no ready cash, just spend less.
• Property Game:   It is a very long term game. It will stretch 20-40 years, if on bank loan. During this period, there would be multiple financial calamities that one has to face. Please don't tell me that you are too smart and are smart enough to avoid them. One may be able to avoid one, but multiple, I sincerely doubt.
• Stocks-and-Shares:   Please stay far far away.
• Intellectual Businesses:   Very hard to start and very hard to sustain, although it is very cheap to begin in one. In fact, Kiyo suggested working for big companies and grow the passive income from the active income earned. Business-building is for the extremely brave.

b.xox - The Banks are now Fucked

The last part is here:   xox - Fuck-you up Loans 

What I have written on the last essay above was about how a bank can fuck up ordinary guys like you and me. So don't go there. Just don't do business with the bank. They are fast becoming the modern-day loan-sharks. They will employ "legal" means to fuck you up good. Even at the end of the day, you are declared a bankrupt and don't need to pay anything back. But, you are also at the same time, penniless. What they have taken from you are years if not decades of your good working life. Now that you are old and fuckened, nothing more can happen and nothing will help you.

Fractional Banking (this link will let you read in detail the idea behind fractional lending by the banks)

The bank works on fractional lending. The government-of-the-day gives the bank a license to operate. The bank then goes ahead to collect deposits. If the deposit is $100, then the bank is entitled BY LAW (of course in collusion with the government-of-the-day) to lend out a total of $1,000 (i.e., ten times that of deposit). The bank pays the depositor a very tiny interest payment such as 0.25%, i.e., $0.25. Indeed fucking low percentage, can't even pay for inflation.

But, the percentage that the borrowers of the bank loan is likely to be 4-8% p.a. for secured assets or 30% p.a. for unsecured assets.

For a secured loan of $1,000, such as against a property purchase, the borrower will need to pay an interest of $40-$80 (4%x$1000=$40, 8%x$1000=$80) while his principal is still outstanding. Over a short one-year period, the bank has made 40%-80% that of the entire deposit of $100. What a wonderful return. If the loan is unsecured, the return could reach $300 per thousand deposited or 3 times than of the entire deposit.

The bank literally created money from nothing to a lot of money. That's why the bank can afford the best-looking building in the heart of town. Just look at Rome, the magnificent buildings were all built from money made from usury.

Shouldn't we all rush to apply for a bank license. The answer is NO NO NO. Those who live by the sword will die by the sword. There will come a time where everything falls flat. These loans are good only during good times. In bad times, the loans are not going to be repaid. The entire system based on fractional lending self-implode into nothingness. Banks that are hundreds of years old will close its doors. What does that brings us? Simple. It means that this business of lending is not to last. The bank owners have to be on their toes all the time. One wrong move, the fucken Tatlie Bank was gone. Another wrong move, the fucken OUI Bank was gone. One more wrong move, the fucken Keppy Bank was gone. LOL ... They are so stupid. They don't realise that there is never a free lunch on earth. Everything has to be earned from blood and sweat. Don't understand that, good luck to you and your future generations. They will be cold and deadly poor. Eating everyday from hands-to-mouths.

So therefore never apply yourself as a bank. You will not be a banker, i.e., you will not lend people money and collect interest from them. They will fail you. Avoid all things that revolve around usury. AND from the last essay, never also to borrow from people. You will also fail to repay. You will lose their trust and friendship. This form of business is doomed to fail. You will waste decades of hard work. So do things that will last you at least a thousand years, not just 50 years, like the rule of that fucken old guy.

That fucken old guy don't understand that a nation is built using bare hands. It is honest. It is pure. It is brutal. Try to be funny and sponge off other people's effort. One day, you will get your comeuppance. Just look at the amount of money lost to the whites by buying their very "cheap" stocks and shares.

Shares of Citigroup, once the nation's most powerful bank, hit an all time low of 84 cents. The stock reached an all-time high of $57 a share on Dec. 18, 2006.

And that fucken old guy thought it was dirt cheap at US$26.50 per share.

What goes around comes around. The cruel joke is that that fucken little island couldn't even keep what's theirs. All the monies made so far from hard work and sweat by selling their souls to the MNCs of the west are now returned to the west. It is a lost 5 decades.

Of course, now the fucken old guy tries to increase property prices to recoup his losses. But, to what ends, there is no such thing as man-made market. The market is free and is freely driven. Play the market's backside long enough, the market will bite your ass back in the same tempo and stupor.

Now is the time to enjoy the next big show - China. 

With bad loans and competition rising, China’s largest banks face tougher times ahead. ChinaScope Financial, a research firm partly owned by Moody’s, a ratings agency, has analysed how declining net interest margins will affect China’s banks. It estimates that the sector will need an injection of $50 billion-100 billion over the next two years just to keep its capital ratios at today’s level. The managements of the Big Four realise this, and have won approval from their boards to raise over $40 billion in fresh capital over the next two years. But Andrew Sheng of the Fung Global Institute, a think-tank, reckons the sector will need to raise even more later: up to $300 billion over the next five years.

http://www.economist.com/news/finance-and-economics/21584331-four-worlds-biggest-lenders-must-face-some-nasty-truths-giant-reality-check

– China’s bad debts could blow a $500 billion hole in bank balance sheets. That’s roughly how much extra equity the eleven biggest lenders might need if 10 percent of their loans went sour, according to a Breakingviews calculator. 

http://blogs.reuters.com/breakingviews/2013/09/04/chinas-bad-debt-could-leave-500-bln-equity-hole/

Jokes aside. Never assume that your enemy is stupid. They are not. Even if they sound and look stupid to you. Think harder. They are never what they seemed. Apply hard work on your land and you will be rewarded many times over. Forget about what others say about business ventures and great adventures. There is none. Bend that fucking back of yours and apply it to the land. Feel the ache at every living night. You will live a day longer than every one else.

I know every immigrant is sad at 9 parts out of 10. Don't despair. For on the tenth part, you will be rewarded beyond your wildest dream. People around you will fail you. People whom you cared will fail you the greatest number of times. But, why build your happiness upon others' approvals? Approve your own soul that indeed you have chosen right.

Let's just sit back and enjoy the show ...

p.xox - Fuck-you up Loans

From a Blogger:
Default Project Sucktards-Squeeze, what banks are trying do to Sucktards ...

Not a day goes by that I can walk through my neighbouring flats without seeing loan shark vandalism the usual O$P$ notices. After clampdown, arrests and vigilance, the problem goes away for a while then comes back but never disappears. Once in a while will hear of people committing suicide due to loan shark harassment. Why is this problem always there? It is a highly lucrative business and there is always demand from desperate people. 

So what is the problem with loan sharking - after all it is willing buyer-willing seller arrangement? They charge high interest, lend to people have a high chance of default, then use strong arm tactics to recover their money + interest....the end result is misery and pain for many Sucktard families. 

The other day I was shopping in Suckchard and one young man step up to me. He told me I can get "$80 free" if I sign up for a credit card. I explain to him I'm jobless, he immediately lost interest in me. But the question lingers how come the credit card company can "give" so much money and still make money. 

Over the weekend I met with my friend who just quit his job in consumer banking department of a major bank 2 months ago. He had been there for 8 years and was doing applications evaluation. Because of long hours, he was burn out and quitting to take a break but he said his next job won't be banking anymore "he had enough". Since both of us were very free we chatted for hours...and he told me many interesting things about consumer banking that I was not aware of.

I just start with this statistics from Suckmas on rollover credit card debt:
$ MILLION PERIOD ROLLOVER BALANCE*
2007 2,979.4 
2008 3,378.8 
2009 3,702.1 
2010 4,014.7 
2011 4,537.9 
2012 4,991.8 

These are the unpaid credit card bills that rollover to the next month. These are charged at 2% a month and at the present size the banks make $1.2B on interest. This is only half the story. The banks also lend an enormous amount of money that is non-housing and non-car loans classified as others. The goal of the banks are to recruit as many Sucktards to borrow unsecured and credit card debts because this is where they can earn the highest amounts. So my friend told me banks aim to: 

1. Enroll as many people into spending on credit cards and borrow unsecured debts by initially offering goodies like low interest rates to entice them. 

2. Once people are trapped like rats and boxed in. Some of them will fall into hardship like pay cuts or retrenchment. ..never fully able to pay down their debts. 

3. Once these people are trapped they become the banks best customers because they are in permanent debt and banks can keep extracting interest earnings from them month after month like a slave. 

4. The banks are trying to enlarge this group of slave debtors so that they have recurring income and revenue from this group of Sucktards - the banks can sit and collect billions in easy money. 

5. When the person is complete run dry, the bank still does not lose money because they can get it from his estate i.e. sale of peon holes. 

6. The bankruptcy laws in Sucktardland favors the bank and shape their predatory behavior and Sucktards are being entrapped because they cannot exit until they are bled dry. 

Watch the banks grow this kind of debt aggressively. You see them at every shopping center pushing, every exhibition, pushing and pushing basically many people are blind and blur to the grand strategy of these banks. Suckmas is perhaps the most useless regulator around and really let the banks exploit the people as much as they can. And the Sucktardland bankruptcy laws are helping to entrap vulnerable Sucktards. Worse still the govt now gives the banks the means to find out how and who they can entrap through the suckcredit suckbureau. Since it was formed, the banks has been able to target and increase its predatory lending and behavior because it has more information it can use.

Last edited by TopSage; Today at 03:34 AM. 

A young blood relation once asked me if he should get a credit card since he is so strong in his employment and cash generation. I told him to get a debit card instead. He asked again that a debit card don't improve his credit history and he might not be able to buy a house or a nice car with a debit card history. I told him to be patient. If you can't afford them immediately, then you have to save up for them. He then suggested that he might not be able to save fast enough as the property and car prices go up all the time. I replied what goes up must come down. He inquired that as a debit card, he can't use it for hotel bookings. I said then go to a hotel that takes his debit card. He then questioned if I have a credit card? I said I have. Then? I never use it. I only use my debit card. When the bank asked me to charge my credit card on annual fees, I told them to cut it up. The bank just kept quiet. My personal history is good enough to buy anything, but I don't. I only buy small things in cash. I buy many small things in cash. Most of these small things I bought improved in value over rather short time. But, once bought, they were seldom or never sold. My only problem is only the tax authority. I have to be clean with them. He has since been using only cash to transact. He grew to be very strong and attractive to gals.

Making money is hard enough. Hence, never let a leecher such as a bank to leech you dry.

I might have sounded like one of the old worn records repeating and repeating. I can't over-emphasize more. My father is the one I learned this valuable lesson from. Thus, you must never fall into this trap, otherwise, this trap will set you back by 20 years at the very least.

If you can't get cheap stuff locally, then go overseas or other regions to get them. Have a better bang for your cash. Marry a gal that can give you that big bang and access to that market. Sigh ... deep down, I am still a doubtlessly cunning bastard ... Stay off that fucken little island. Don't touch it.

b.Capital - The curse of Loan

The last part is here:   Capital - The Inner Core 

A blogger wrote:

I am the second child in my family.

My parents have 4 children in total and the youngest is 13 this year.

My parents have borrowed and accumulated the interest of up to $200k from 20 over different LS. Yes, my mum is foolish, but all was done out of her love for her children.

My parents CPF have been depleted to pay for the house they bought but there is still an outstanding amount of a few hundred thousand(5RF) and have to pay cash every month, on top of the expenses that they family spend, which is just barely enough.

Finally their saving have been depleted and friends and families shun from then, fearing that they might borrow more money, she borrowed from the LS to pay of her current debt, hoping to pay the LS asap, but interest compounded and her debt just skyrocketed, they derived a plan to lend from a LS to pay her current LS debt and hope to pay them slowly but it was just too much and they have to sell the house to pay for the LS payments and they rented a house from my aunt.

It was still insufficient to pay them all and the situation got worst when LSs refused to lend her any more money(coz of the plan they derived) and the amount totaled up to over 200k, which my parents have no ability to pay. The LS payments have to be paid but my parents’ income was just too little to pay them all without the help of another loan and my mother ended up not paying most of them.

They called day and night to pester my parents and sends threat sms to my family, they doped my mother into giving them our residential address and now, they are knocking at our door daily.

I was terrified at first, after learning about this but we are also the cause of her current problems. My mother told me that she would go to jail if we called the police and the LS would not let us off. She talked to us about her situation and told me the procedure to claiming death insurance L should anything happened to them.

The income my parents earn everyday is paid to LS leaving then penniless and they have less than 100$ with them and we are surviving thru bread and financial assistance in school. They still owes many payments from many different LS.

I don’t blame them but I feel that they are really silly to borrow $ from LS in the first place. 

I really wish that someone could help my parents out of this situation L I know I am a little naïve to ask the people from this forum to help with monetary issues, especially such a large sum but even a little help would do… 

I really want to help them but what could I do. Does anyone know any job I can take up to help to settle at least some of their debts? ( I have remedial lessons almost every day). 

Although I felt a little fake about the story, but the general tone sounded bad.

Loan-sharks (LS) are just another type of bank. All banks behave exactly alike. They leech off every single energy resource that one has. Each energy resource is vital resource that you can commandeer for greater good of the family clan. You lose that you lose the family clan. The family will fall in disrepair. The next generation will suffer poor growth. So be very careful about loans.

I know many would ask the question how to do it without loans. There are enough things that don't require loans to start. It is allowed by Mother Nature. As long as you stay loan-less, you will be alright at all times. As a playing member of the 10 poker players, the hand will be in your absolute favour one day. That day will come silently without a hint. When that day arrives, rejoice but do think hard about others who are not as fortunate.

Since you don't borrow, nobody gets hurt, not even the lender.  You will be so eco-friendly.

b.Capital - Investment Style

The last past is here:   Capital - Generations Game 

A friend once asked me that not every one is interested in land, some might prefer the more modest property investment. But, she saw problem in property investing. For each property, marked at say, $100, the place could usually be fairly rented at say, $5 per year (or 5%) or $0.42 per month ($5/12). With this gross rental, it will take approximately 20 years ($5 x 20 = $100) to recover the investment. This is a very long time. But, compared to bank deposit rate (at 1-2%). This is still superior. And compared to stocks & shares (15% returns), it is slightly inferior. But, stocks & shares have higher risk. The good news is property investment does bring about capital appreciation which she felt that is a good compensation. So in order to bridge this low returns, one usually tries to gear the investment by borrowing from the bank. Say, based on 10% down-payment and if there is a capital appreciation of 5% that year, one would have gained 50% investment return! Wrong! Wrong! Wrong! Many people has forgotten that borrowing incurs cost. That interest cost could be as high as 6-8%. Based on the borrowing of 90%, the net interest cost could be anything from 5.4%-7.2% (90%x6%, 90%x8%) which is way above that of the 5% appreciation. There is therefore a net loss of 0.4%-2.2%, even with 5% capital appreciation. What if there is no capital appreciation for some years?  The longer one borrows, the more negativity one gets. so how?

I smiled. Once you borrow from the bank, you would be doomed. I have been there, done that. There was no happiness. There is no quarrel. See the car that the banker drives and the car that the borrower drives would tell you its true story. If all are earning normal profits, there should be no difference in being a banker or a borrower, all are earning fair value, the fact is the banker drives a much better car implies that there is trickery up the banker's sleeve. So it is a zero-sum game, the winner is the banker and the loser, the borrower. So don't borrow, regardless. You will see the wisdom many years down the road.

But faced with the grim prospect of buying a property cash and renting it out to try to recover its capital is real long and painful, there must be a better legal way.

If you must invest in boring property such as houses and buildings, then you must exercise cunning. Most residential properties have terrible tenant records, i.e., the tenant will not pay on time, the tenant is very well-protected by the authorities, the owner can't evict the tenant without an eviction order, which can take up to 3 months to get. There are hearings and complaints from the tenant to slow the eviction process down. By the time the property is vacated, i.e., rental-free for 6 months, you may find cement powder poured down the sewerage before they leave. The repair bill (or rebuilding cost) is going to be extremely high.

You have no choice and must therefore employ cunning, if you must buy a residential property, find out if you could rent it out to businesses like the old-folks homes, child-care centres, corner grocery stores, churches, display houses and etc. The key is you will receive a much higher return for your property and hence, it is now worth its while to purchase. Having a business residing in the residential property provides stability in rental income and general state of repair. These businesses hope to gain in the long haul and so is less likely to play tricks. For other property types, you will have to think further.

There is however one more joke. The capital appreciation is not real. Why? Well, if you were to sell the property, can you buy back the same property with less cash. The answer is a big fat NO. So what have you gained? Nothing. The so-called capital is nothing more than the state's printing press having gone on overdrive to print more coloured papers in exchange for your real estate. Paper money is not real estate, it is just a medium of exchange for goods and services. It has no intrinsic value. By the time you wish to sell, your plate of chicken rice would have been $50 per pop.

So even with boring residential property investment, you have to employ cunning to win the race. Anyway, I rather prefer not to. Learn to put the land on duty, that's what my partner-in-crime used to say.