Debt

Today I wanna talk about debt (or accountants may wanna call it liability).

DEBT, a simple four-letter word that is more complicated than astrophysics simply because it carry around "THE MOST POWERFUL TOOL IN THE UNIVERSE" (Well, according to Albert Einstein), interest (compound interest to be exact).

We all think we know what is interest but in reality, average people like you and me know nothing about it. Once we understand what it really is, we will realize the power of interest is limitless (at least Einstein understood it although he is no economics and finance guy)

Imagine this: if a central bank create 100 dollar of money into the economics, the newly created money will be lent out to another party, eg person A (by a commercial bank) with interest attached, let say 10%. So this person A owe the commercial bank 110 dollar. If the 100 dollar is the total money supply of this economy, how A can generate 110 dollar to pay back the bank when the whole economics only has 100 dollar in it?

In other word, agents in economics (consumer, firm, government etc.) can't generate the amount of money higher than the money supply itself. So how can they pay the interest when every dollar created is attached with interest?

So, one thing is a certainty: in long run, people who in debt will find themselves bankrupt. So here's an advice: do not be in debt.

Unfortunately, many people do not realize they are in debt. Financial Institution nowadays created so many ways to "help" us get in debt without telling us the truth. They are creating so many creative way of getting us in debt. They make us feel we are wealthy by providing financial services to us. They "encourage" us to spend the money we don't have (yet) to get what we want today. Guest what, most of us do that.

The only reason we are in debt is we want to buy something we can't afford now. Car, property, business, etc.

So if we can't afford it now, don't buy it!!

What The HELL Are You Doing, Obama?

What the HELL are you doing, Mr Obama.

You've said you gonna reduce and improve unemployment rate......

You've said you gonna improve the US financial problem (toxic assets)......

You've said you gonna help the poor......

You've said you gonna reduce US deficit......

You've said you gonna reduce US national debt and international reserve......

You've said you gonna improve equality among US citizen......

You've said you gonna close Guantanamo Bay (Gitmo)......

You've said you gonna improve US image to the world......

You've said you gonna get the troops from Iraq and Afghanistan back to their home......

You've said you gonna give Afghanistan the freedom and independence they deserve......

You've said you gonna give detainees at Gitmo a proper trial......

You've said yo gonna stop the torture at Gitmo and other US concentration camps around the world......

You've said you not gonna send more troops to either Iraq or Afghanistan......

YOU FAIL AS A PRESIDENT OF USA OR A HUMAN BEING......

Dubai => Beginning Of The End

Dubai probably the most frequent used word for the past week. 60 Billion dollar of default sink the stock markets all over the world. Everybody feel fear among us and seller absolutely dominated trading.

I am not gonna commend on Dubai. It's only 60 billion dollar. It's less than one third of what AIG received last year (185 Billion). It's only 10% of the first TARP last year (600 Billion). I bet it's even less than the bonus and remuneration that bankers all over the world received last year combined.

Dubai default is so small that a tips from Rockefellers or Rothschilds at dinner might be bigger than it.

Dubai is very similar to "Sub-Prime" in late 2006 or early 2007. By the way do you still remember the word "sub-prime"?

The word sub-prime emerged at the end of 2006 and it's a warning sign that the financial system in the world is in big problem. At first it's not seen as a threat by investors all over the world. However by February of 07 people start to realize the problem but ignorance and greedy trader continue to buy and pushed the market to the high of Oct / Nov 2007.

Remember, sub-prime crisis does not kill the stock market at the end of 07. It work as a trigger to this massive financial mess that we are in. Similar situation happen now. I am sure Dubai default won't kill the stock market. It's a big warning sign that we haven't solve our financial problem and it's still a mess.

So will stock market continue higher in the short term? might be yes (just like in 2007) or no. The point is: it doesn't matter. Stock market did make a new high at Oct of 2007 (US and Europe market) and Nov of 2007 (Asian and South America market) when the big warning sign was around. Well look what happen next......

So the best way I can put the mess we encounter now is this: US financial system = HIV positive. AIDS won't kill US but it kill its defense. It weaken the system and allowed any disease to attack it. Dubai default is just a small flu or fever yet it manage to shake us heavily. Wait till it get TB or cancer. Unfortunately AIDS is incurable but fortunately it can be delayed so we shall see how Bernanke, Geithner and the gang delay it but the day will eventually come. Until then, enjoy the healthy day!

HK Technical Analaysis Video 11/26

HK Technical Analaysis Video 11/20

Ireland vs France: Forget It, Ireland

I am sure one of the headline at sport column since last week has to be Ireland vs France world cup qualifying match second leg. We all seen the replay and the clear hand ball by Thierry Henry.

FIFA yesterday dismissed the Football Association of Ireland (FAI) for a rematch.

To be brutally honest, i agree with FIFA. The decision of referee is final. Ireland and France knew it before the match started. I don't think Ireland will agree for a rematch it happen the other way. Rule is rule. If you don't agree with it, don't take part.

Throughout history, we have seen some even more ridiculous and controversial decision in sport. England football team won the 1966 world cup with a goal that never went in. Argentina won the quarter final football match of 1986 world cup with the "hand of god" and eventually won the world cup. Who can forget the 1972 Olympics basketball gold medal match between Soviet Union and USA where referee virtually gave Soviet Union second chance and they took it.

More recently, Dallas Maverick lose to Denver Nuggets at last year NBA playoff Western Conference Semi Final as all 3 referees didn't see the foul that committed by Mavs. Shogun Maricio Rua clearly beat Lyoto Machida at UFC 104 but all 3 judges gave Machida the win. Defending world champion Italy won the quarter final of 2006 world cup against Australia with a dodge from Fabio Grosso.

The truth of the matter is this: you live by the rule if you decide to take part. Otherwise don't participate. This is the thing that make sport exciting and unpredictable. I guest West Germany can call for a rematch for the 1966 world cup if FIFA allow a rematch between Ireland and France.

WCG 2009 or WCG 1999?

I am a big fans of video game. I started playing video game (NES) when i was 5. Mario, Donkey Kong and Link pretty much filled my childhood.

WCG or world cyber games was created in 2001 and South Korea was the host nation for the WCG 2001 tournament. Since then, WCG kick off as the biggest and greatest video game tournament in the world. It's called "Olympics of video games"

In 2001, 6 games were selected. AOE 2, Starcraft, Fifa world cup, Counter Strike, UT and Quake 3. All those games are appropriate and great at the time.

However, if you can believe it, 3 of those games are still here at WCG 2009 which is Starcraft, CS and Fifa. Luckily Fifa world cup is changed to fifa 2009 but the other 2: starcraft and CS is still here. Then in 2003, warcraft 3 was added into WCG and guest what, it is still here. Luckily we have track mania, guitar hero and VF 5 to save the day.

So back to the topic of this article, are we in 2009 or 1999? is WCG in 2009 or 1999. Are we in the twenty first century yet?

Starcraft is a 11 years old game (released in March 1998 and its expansion, Brood war released in November 1998) and Counter Strike is a 10 years old mod (created in 1999) based on a 11 years old game (half life). Although Warcraft 3 was a 2002 game and its expansion, The Frozen Throne, released in 2003, the graphic element in this game is poor and cartoon-like.

This 3 games feel and look like twentieth century and nowhere near twenty first century. We got simply tons of games that play just as well as those 3 games but way better in graphic and sound element and would simply make the WCG experience that much better.

Starcraft and Warcraft 3 are RTS game. We got World in conflicts, Company of Heroes, Command and Conquer 3 and Red Alert 3, Medieval 2 Total war, Supreme Commander, Sins of Solar empire. I believe all of them play just as great as those 2 but have much better graphic, realism and experience.

As for Counter strike, I can name dozens of great FPS game that is much better than CS either in graphic, sound and even game play. Crysis, call of duty (all of them, especially modern warfare) Gears of war, Medal of Honour (all of them, especially airborne), Brothers in Arms (all of them), Battlefield series (all of them), Dooms 3, UT 2007, Quake 4, Halo (available in pc remember), Rainbow Six (4, Lockdown and vegas), Ghost Recon 2, and the list just continues......

Computer hardware and software nowadays let us know we are in 2009 and not 1999, the game installed in our PC let us know we are in 2009 and not 1999, the calender of the wall let us know we are in 2009 and not 1999. I hope WCG will let us know it is the year 2009 and not 1999.

P/S: No offense for CS, Warcraft 3 and Starcraft fans but you need to move on and look at games in the present and future, not past.