Dear Kids,
Americans get into the worse time in the recession and come to the point that the 2 parties in the Government are going to extend the debt ceiling within 24 hours to lose the triple "A" credit rating to the world. What is the debt ceiling and why they are opposition to each other and the Republican party agrees to default the debt and the Democratic party trying to rising the debt ceiling to remain everything the same. American had a very bad recession in 1930's after the civil war and the First War war with so many things were happening around the war including the Soviet revolution in 1900's. China became the National Party by kicing out the Chang Dynasty in 1911 etc. They were suffering and willing to pay the debt to support the American Dream at that time. When the baby boomers were taking over the administration after the Second World War and most of the people were starting from the scratch and the basic. People were conservative and hard working. The dream for the whole world at that time was putting their countries and nation to the number one. This was no only applying to the USA; also China, Germany, Italy and Japan etc.
After the Atomic bomb destroying Japan, the whole nation was putting from a destroyed city to a modern city today. Americans were developing all the weapon and high tech selling to the world such as computer etc. China and Taiwan were working very hard to competite each other to show one of them is the leader for the Chinese and to the world leader as well. Germany started to build all the high tech for the nation and ship out to the world market such as automobiles and same as Italy. There are shortage of everything after the wars. Therefore, the economy was booming all over and American is the top nation in the world. The influx immigrants came to USA bring in the cheap labor, capital and technology to this land to build their American Dream since then.
After the peak of baby boomer is over, the new generation has a lot of things built up for them to enjoy. Therefore, the new generation become a little bit lazy than before for example, in the olden days, most of the people were taking bus or public transit to work or school because cars were one of the luxury item in the daily life and average family was about 5 to 10 kids after the war due to shortage of people. The new generation doesn't work hard as the baby boomer because the baby boomers need to build from the basic. Without that they will suffering everything due to the provity and lack of the high university education to provide the knowledge to proceed further level.
After Clinton's administration, he saved a lot of capital for USA because he came from a poor family. During his administration, the nation was happy because there was a big surplus for the Government budget. Most of the people had a few jobs and everything was booming. However, when Bush took over the administration, he spent money like crazy by giving back the tax money to people so that poor people were very happy after receiving 500 per family and Bush never thought about to save the money in the rainy days. Bush had also financed the 2 wars by increasing the debt ceiling and hoping they would gain the benefit of the Middle East Oil market to compensate the debt with the revenue in the future. The results of the two wars were opposite what he had expected. On the other hand, he tried to bust the economy by using the real estate market by introducing the sub-prime mortgage to the local people. It means that he tried to let the banks to lend the money to the people who did not qualify for the loan and ending up most of the properties sold to the unqualified buyers were defaulting to the all the bank loans. This policy was causing the Wall Street Financial losing the credit by selling all the Real Estate Bond to the whole world and Leman Brother was one of them. During his administration, it costs the American people responsible for the national debt 10 trillion. Now that the US President trying to cut all the benefit to offset the debt and he can't predict the revenue by raising the debt ceiling. What is the debt ceiling? It means to raise the credit card to the higher credit limit to pay the debt. The Republican party was questioning the President where the money coming from to pay the bill and the President was telling the Republican party that raising the tax to the rich. Since the Republican party is a rich party and they opposite this proposal until today. The last meeting they agreed that they are not cutting the benefit and no tax increasing with the debt ceiling increased. The revenue to pay the debt will be another story after resolving the debt ceiling issues. The most important things what the President needs to do is to increase the jobs for the people so that people can pay the tax and people can pay the bills instead of collecting the social security benefits. We all hope they can resolve it before the deadline, Tuesday this week.
As a conclusion, the cash flow is very important to individual and a country so you need to be alert looking around for the other sources of income in case the one you have gotten the problem.
Love,
Dad
Sunday, July 31, 2011
Friday, July 29, 2011
July 29, 2011
Dear Kids,
Hope both of you have a good summer becuase this summer is bad to the whole world due to the recession. Most of us today would like to go for vacation in order to relax after the stress life style. Therefore, you need to know how to control our pace of our life. Many years ago, our family in HK was arranging the singers in Taiwan to HK to sing in order to make money which was very smart at that time due to the supply and demand. They were in entertaining business in one time. In HK, it is a business world and all the businessmen need to know when is the best time to do a certain business to get the highest return of the investments.
Wesley is working in a insurance company and a restaurant to learn more about the business as well as how to deal with people. Ken is working with the Russian professor to get into the copoeration stage of the music technology for the piano world. If both of you can learn more things to face the real problems for your business, this will be benefit to all of you. I told Wesley before going to NY that he should ask questions if there is any questions because you should never pretend to know what you are doing which applies to Ken as well. The company would like you to know everything in the company so that you can help to resolve the problem in the near future. Hard working and learning are very important to both of you.
Love,
Dad
Hope both of you have a good summer becuase this summer is bad to the whole world due to the recession. Most of us today would like to go for vacation in order to relax after the stress life style. Therefore, you need to know how to control our pace of our life. Many years ago, our family in HK was arranging the singers in Taiwan to HK to sing in order to make money which was very smart at that time due to the supply and demand. They were in entertaining business in one time. In HK, it is a business world and all the businessmen need to know when is the best time to do a certain business to get the highest return of the investments.
Wesley is working in a insurance company and a restaurant to learn more about the business as well as how to deal with people. Ken is working with the Russian professor to get into the copoeration stage of the music technology for the piano world. If both of you can learn more things to face the real problems for your business, this will be benefit to all of you. I told Wesley before going to NY that he should ask questions if there is any questions because you should never pretend to know what you are doing which applies to Ken as well. The company would like you to know everything in the company so that you can help to resolve the problem in the near future. Hard working and learning are very important to both of you.
Love,
Dad
Thursday, July 28, 2011
July 28, 2011
Dear Kids,
I have a client who bought a hotel a few years ago and he was an attorney in Korea. When he first went to USA, he studied MBA and hope to return to Korea afterwards. He did choose to stay in USA instead. He worked in a financial company and layoff after working for a year because his English was bad comparing to his co-workers. He did not look for a job instead of starting a cleaning business to sell his labor. He started cleaning a small factory and later on he started getting the Government contract as a minority supportive group. After getting the contract, he hired a lot of Korean worker to work for him and he only manage the cleaning business in the house basement. His company address is a PO box in USA. After working 10 years, he became a multi-millionaire. He bought a Holiday Inn and the basic requirement to join the franchise of Holiday Inn is minimum requirement is 1 million dollar liquid asset and he got approved.
After buying the hotel, he put in another 4 million to renovate the hotel because his brother is an engineer. Now he is doing very good in the business. When he wanted to buy this hotel, told him not to buy because he got enough money to retire. Therefore, the rich people will never thought about the retirement because there are a lot of dreams that they did not complete. Mr. Lee Ka Sing in HK gets up early everyday at 5am to have a golfing for an hour before going to work. Hardworking can make you young and alert all the time.
Love,
Dad
I have a client who bought a hotel a few years ago and he was an attorney in Korea. When he first went to USA, he studied MBA and hope to return to Korea afterwards. He did choose to stay in USA instead. He worked in a financial company and layoff after working for a year because his English was bad comparing to his co-workers. He did not look for a job instead of starting a cleaning business to sell his labor. He started cleaning a small factory and later on he started getting the Government contract as a minority supportive group. After getting the contract, he hired a lot of Korean worker to work for him and he only manage the cleaning business in the house basement. His company address is a PO box in USA. After working 10 years, he became a multi-millionaire. He bought a Holiday Inn and the basic requirement to join the franchise of Holiday Inn is minimum requirement is 1 million dollar liquid asset and he got approved.
After buying the hotel, he put in another 4 million to renovate the hotel because his brother is an engineer. Now he is doing very good in the business. When he wanted to buy this hotel, told him not to buy because he got enough money to retire. Therefore, the rich people will never thought about the retirement because there are a lot of dreams that they did not complete. Mr. Lee Ka Sing in HK gets up early everyday at 5am to have a golfing for an hour before going to work. Hardworking can make you young and alert all the time.
Love,
Dad
Wednesday, July 27, 2011
July 27, 2011
Dear Kids,
"Search for the excellence", this is a book published 10 years ago to tell people how to look for the smart people to work or partner with them to grow together. In fact, uncle Alex opened a restaurant a few years ago after winning an Ontario lottery and decide to open a restaurant to grow his fortune. Unfortunately, the restaurant was only opened for 3 months and the restaurant was sold to someone because the business was lack of tenant. As a matter of fact, if you can run a successful business, you need to be very smart. In the old economic studies, there are three very important things for the basic business operation. The first one is land, labor and the management.
The first one is the land which means that the business man is going to purchase the land or lease the land to run his business. If you are going to purchase the land, you need to calculate the mortgage payment which may be affect the long term investment or short term cash flow issues. If you are going to purchase a building which including the land that will give you a long term appreciation of the value of the building and the land value will go up for a long term if your business can support the debt payment. There are a lot of businessmen would like to lease the land and the building because they want to reduce the risk factors in order the business failure so that they can move away from the premises. Most of them they will have a Net lease or Gross lease concept so that they know what they are paying. A Net lease concept is that the rent that you are going to the landlord will be the rent only and the amount will be net to the landlord. In the other words, you need to pay the rest of the expenses relating to the building and the land such as property tax, maintenance and the heating utilities etc. However, each lease is difference due to the negotiation between the landlord and the tenants mutual agreement. The other one is the gross lease which the rent payment will include all the land and building expenses. Therefore, if you are the landlord, you like the Net lease and if you are the tenant, you would like the gross lease. Again, you need to understand your position before you can get the good negotiation. Most of the time, you have the number of years that known as term such as 10 years term lease or 5 years term plus five years. During the term of the lease, you will enjoy the rate of the rental from low to high and also you can move out after 5 years term if you think the coming rate is too high. Option is the term in the lease to tell you that you can leave with a good term after the lease expired or you have the Option to stay in the lease for a negotiable terms and conditions. The landlord will make use of you to pay the mortgage until the value of the land and building going up before selling it. Most of the case, the tenants will stay or moving out so the location and address of the business will be affected. Nowadays, there is a term to encourage the tenants to purchase the building as lease to own so that the tenant can purchase the building in a set price. You need to evaluate that you need more moeny to invest in the business or the property to balance the cash flow.
The second one is the labor which is the most important because you need people to generate the income for you and your company. Uncle Alex's restaurant was hired a friend who he knew for so many years. He was the chef of the restaurant and he controlled the food quality. As we all know that the hospitality business, the Government will send the inspector to check the conditions of the kitchen all the time and uncle Alex gave him the instruction for him to take care. The chef was not happy about it because both of them are friend for a long time. He walked out the restaurant without giving the notice and Alex was struggling hiring chef all over and finally he sold to someone with profit. In this story, we learn a number of things as following: 1. Never hiring a friend as a working partner because "Business is a War" that you will only care about the profit and fight with your competitors all the time. The language will be difference from what you are using in a "Happy hours" bar after 5:00pm because you are relaxing yourself. The way how to present yourself is totally different from the "Business War". In business, every penny or dollar you loss that will come out from your pocket. Most of the cases, a good friend in a business will become an enemy. The walked out Chef and Alex are good friend now because they have no relationship in the business. You need to know the business before you run the business because most of the employees will make the mistake to test your IQ to see you know your business well. If you don't know the business, they will start making mistake or delay the process that will cost a lot of money to the company. Therefore, good company will give you the training so that you would make little mistake instead. Company will have a test to see how well to deal with people so that to avoid the people walk out from the job without any notice. Personnel department is the department to select the excellence to service the company, the company expects the employees to make money for the company not to lose money instead. The employee's quality will affect the company a lot. Most of the company will hire good people and train them to stay if possible. Most of the smart people will set up their own company or will promote to the high position.
The last one is the most important things among all the above because Management is how to put the things together. A good management can turn around a bad business into good because the lease is cheap so that the overhead is low. Labor force are good enough to the business therefore, there is no over spending to the company. The benefit can be split to the labor force so that they will put more effort to the business in the future. They will treat the customers well so that there will be a lot of returned customers because of the good service. Always remember that all the businesses are depending on "People". People business is where the money is. Management is the techque how to put all the factors together and the problem solving. In the olden days, "Customer is always right" because they bring the money to you which might not be right today. For example, a drunken man came to your hotel trying to rent a room and I would reject his offer to stay because he might affect the other people if he creates problem later on. So, the smart management is depending on your experience, knowledge and education background. I believe that the way how you deal with them will be difference from each other due to the different background.
Getting into a job or business, you need to be smart up and treat yourself as a boss and what you expect from the people you hired. A simple example, you hire a cook who doen't know what to do because lack of the experience. Another example, you hired a girl who always on the phone and shouting to the co-workers all the time creating a bad atmosphere all the time.
Love,
Dad
"Search for the excellence", this is a book published 10 years ago to tell people how to look for the smart people to work or partner with them to grow together. In fact, uncle Alex opened a restaurant a few years ago after winning an Ontario lottery and decide to open a restaurant to grow his fortune. Unfortunately, the restaurant was only opened for 3 months and the restaurant was sold to someone because the business was lack of tenant. As a matter of fact, if you can run a successful business, you need to be very smart. In the old economic studies, there are three very important things for the basic business operation. The first one is land, labor and the management.
The first one is the land which means that the business man is going to purchase the land or lease the land to run his business. If you are going to purchase the land, you need to calculate the mortgage payment which may be affect the long term investment or short term cash flow issues. If you are going to purchase a building which including the land that will give you a long term appreciation of the value of the building and the land value will go up for a long term if your business can support the debt payment. There are a lot of businessmen would like to lease the land and the building because they want to reduce the risk factors in order the business failure so that they can move away from the premises. Most of them they will have a Net lease or Gross lease concept so that they know what they are paying. A Net lease concept is that the rent that you are going to the landlord will be the rent only and the amount will be net to the landlord. In the other words, you need to pay the rest of the expenses relating to the building and the land such as property tax, maintenance and the heating utilities etc. However, each lease is difference due to the negotiation between the landlord and the tenants mutual agreement. The other one is the gross lease which the rent payment will include all the land and building expenses. Therefore, if you are the landlord, you like the Net lease and if you are the tenant, you would like the gross lease. Again, you need to understand your position before you can get the good negotiation. Most of the time, you have the number of years that known as term such as 10 years term lease or 5 years term plus five years. During the term of the lease, you will enjoy the rate of the rental from low to high and also you can move out after 5 years term if you think the coming rate is too high. Option is the term in the lease to tell you that you can leave with a good term after the lease expired or you have the Option to stay in the lease for a negotiable terms and conditions. The landlord will make use of you to pay the mortgage until the value of the land and building going up before selling it. Most of the case, the tenants will stay or moving out so the location and address of the business will be affected. Nowadays, there is a term to encourage the tenants to purchase the building as lease to own so that the tenant can purchase the building in a set price. You need to evaluate that you need more moeny to invest in the business or the property to balance the cash flow.
The second one is the labor which is the most important because you need people to generate the income for you and your company. Uncle Alex's restaurant was hired a friend who he knew for so many years. He was the chef of the restaurant and he controlled the food quality. As we all know that the hospitality business, the Government will send the inspector to check the conditions of the kitchen all the time and uncle Alex gave him the instruction for him to take care. The chef was not happy about it because both of them are friend for a long time. He walked out the restaurant without giving the notice and Alex was struggling hiring chef all over and finally he sold to someone with profit. In this story, we learn a number of things as following: 1. Never hiring a friend as a working partner because "Business is a War" that you will only care about the profit and fight with your competitors all the time. The language will be difference from what you are using in a "Happy hours" bar after 5:00pm because you are relaxing yourself. The way how to present yourself is totally different from the "Business War". In business, every penny or dollar you loss that will come out from your pocket. Most of the cases, a good friend in a business will become an enemy. The walked out Chef and Alex are good friend now because they have no relationship in the business. You need to know the business before you run the business because most of the employees will make the mistake to test your IQ to see you know your business well. If you don't know the business, they will start making mistake or delay the process that will cost a lot of money to the company. Therefore, good company will give you the training so that you would make little mistake instead. Company will have a test to see how well to deal with people so that to avoid the people walk out from the job without any notice. Personnel department is the department to select the excellence to service the company, the company expects the employees to make money for the company not to lose money instead. The employee's quality will affect the company a lot. Most of the company will hire good people and train them to stay if possible. Most of the smart people will set up their own company or will promote to the high position.
The last one is the most important things among all the above because Management is how to put the things together. A good management can turn around a bad business into good because the lease is cheap so that the overhead is low. Labor force are good enough to the business therefore, there is no over spending to the company. The benefit can be split to the labor force so that they will put more effort to the business in the future. They will treat the customers well so that there will be a lot of returned customers because of the good service. Always remember that all the businesses are depending on "People". People business is where the money is. Management is the techque how to put all the factors together and the problem solving. In the olden days, "Customer is always right" because they bring the money to you which might not be right today. For example, a drunken man came to your hotel trying to rent a room and I would reject his offer to stay because he might affect the other people if he creates problem later on. So, the smart management is depending on your experience, knowledge and education background. I believe that the way how you deal with them will be difference from each other due to the different background.
Getting into a job or business, you need to be smart up and treat yourself as a boss and what you expect from the people you hired. A simple example, you hire a cook who doen't know what to do because lack of the experience. Another example, you hired a girl who always on the phone and shouting to the co-workers all the time creating a bad atmosphere all the time.
Love,
Dad
Tuesday, July 26, 2011
July 26, 2011
Dear Kids,
The summer is on the way to the hottest part in August very soon. There are so many people planning for the vacation and we are planning to go to Michelle's wedding in September very soon. Auntie Popo will be back to Toronto after taking care of Michelle in Edmonton. She will tell the whole story about Edmonton for a year for sure so that people in Toronto will get more information about this province so that they can make a move if it is necessary when there is a good opportunity. Michelle and her husband are leaving Toronto a few years ago to get a job in Edmonton. As we can see that one of the characteristic of living organism is the locomotion which means that you go to the place where you can get the food or the job opportunity.
Ricky's friend's father who was a medical specialist in Toronto for a number of years and now moving to LA as the head department making 10 times more than Toronto. He got the green card in 10 days because he is the special skill person in the medical field. Wesley has been working in NY for more than a month and hope he can learn something in his job how to deal with things including the people and how to handle matter if there are suddenly happened. Uncle Tony was given the power to fix the swimming pool and he was trying to find the cheapest price for the construction but he is lack of experience to handle the things like that. Therefore, when the time he completes the construction, the weather will turn cold because he is lack of experience to handle the project lake this. How to handle the things should be coming from your logical mind which will tell you the priority of step to complete the steps of the work order in sequence. How to handle this type of project? It is very simple. The first thing you need to find out the project cost by calling a few people to come to the house to measure in order for them to give you the quote. The second thing you need to find out the material of the vinyl lining that will give cost differently due to the material they are using. The last step is to find the right contractor to complete the job and you need to find the good company for safety purpose. We all remember that Uncle Tony was hiring a contractor years ago and causing the contractors came back to the house to steal all the valuable material. Therefore, be smart and alert all the time. This is a true story coming from our family.
Love,
Dad
The summer is on the way to the hottest part in August very soon. There are so many people planning for the vacation and we are planning to go to Michelle's wedding in September very soon. Auntie Popo will be back to Toronto after taking care of Michelle in Edmonton. She will tell the whole story about Edmonton for a year for sure so that people in Toronto will get more information about this province so that they can make a move if it is necessary when there is a good opportunity. Michelle and her husband are leaving Toronto a few years ago to get a job in Edmonton. As we can see that one of the characteristic of living organism is the locomotion which means that you go to the place where you can get the food or the job opportunity.
Ricky's friend's father who was a medical specialist in Toronto for a number of years and now moving to LA as the head department making 10 times more than Toronto. He got the green card in 10 days because he is the special skill person in the medical field. Wesley has been working in NY for more than a month and hope he can learn something in his job how to deal with things including the people and how to handle matter if there are suddenly happened. Uncle Tony was given the power to fix the swimming pool and he was trying to find the cheapest price for the construction but he is lack of experience to handle the things like that. Therefore, when the time he completes the construction, the weather will turn cold because he is lack of experience to handle the project lake this. How to handle the things should be coming from your logical mind which will tell you the priority of step to complete the steps of the work order in sequence. How to handle this type of project? It is very simple. The first thing you need to find out the project cost by calling a few people to come to the house to measure in order for them to give you the quote. The second thing you need to find out the material of the vinyl lining that will give cost differently due to the material they are using. The last step is to find the right contractor to complete the job and you need to find the good company for safety purpose. We all remember that Uncle Tony was hiring a contractor years ago and causing the contractors came back to the house to steal all the valuable material. Therefore, be smart and alert all the time. This is a true story coming from our family.
Love,
Dad
Monday, July 25, 2011
July 25, 2011
Dear Kids,
Today is a long day for me because there are so many appointments for getting a business done. There are a few people would like to purchase a hotel without knowing English and management. The challenge for today's market is the bankers are requiring the borrowers got the good credit and strong financial backgroud so that their money will be good. Since I know so many lenders and trying trying to push the deal thru.
I'll meet the fellow by tomorrow morning and let you know the possible way to get it.
Love
Dad
Today is a long day for me because there are so many appointments for getting a business done. There are a few people would like to purchase a hotel without knowing English and management. The challenge for today's market is the bankers are requiring the borrowers got the good credit and strong financial backgroud so that their money will be good. Since I know so many lenders and trying trying to push the deal thru.
I'll meet the fellow by tomorrow morning and let you know the possible way to get it.
Love
Dad
Sunday, July 24, 2011
July 24, 2011
Dear Kids,
When I was young, my uncle told me a story to eliminate the concept of superstition. We all are afraid of ghost when we were young and we all tried to find out what is the fact behind the ghost story. Once upon time, there was a old house where the rich people owned it for a long time and nobody would to get close because the people in this village believe there is a ghost in this house. Every night, you could hear a piano music coming out from the house and this was one of the haunted houses in this area.
A kid who was graduated in USA coming back to this village and wanted to find out what was the fact from the scientific point of view in the century back. One night he took a touch with him and went to the house. There was a music in the house and the light was on and off. He went in an look at the piano and there was a mice jumping up and down in the key board to make piano to give out the music.
After checking the electrical outlet, he found out that the electric wires were broken causing the light on and off. I remember this story very well because my uncle told me on the other way there was no ghost in this world and knowledge is power. From that time on, I did not believe that there is a ghost in the world.
Love,
Dad
When I was young, my uncle told me a story to eliminate the concept of superstition. We all are afraid of ghost when we were young and we all tried to find out what is the fact behind the ghost story. Once upon time, there was a old house where the rich people owned it for a long time and nobody would to get close because the people in this village believe there is a ghost in this house. Every night, you could hear a piano music coming out from the house and this was one of the haunted houses in this area.
A kid who was graduated in USA coming back to this village and wanted to find out what was the fact from the scientific point of view in the century back. One night he took a touch with him and went to the house. There was a music in the house and the light was on and off. He went in an look at the piano and there was a mice jumping up and down in the key board to make piano to give out the music.
After checking the electrical outlet, he found out that the electric wires were broken causing the light on and off. I remember this story very well because my uncle told me on the other way there was no ghost in this world and knowledge is power. From that time on, I did not believe that there is a ghost in the world.
Love,
Dad
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