Get Rich Quick Scheme, But First You have to be Rich
Nearing the completion of my studies, the undeniable, inevitable question is then "how do i start making money? preferably lots of money?"
If someone tells you "i dont want to be rich, i just want to be happy", you can look at them with a queer eye and it is hence safe to assume:
1. this guy is a hippy and is against the war Viet-American war, which is already over.
2. because he/she is a hippy, he/she does drugs and thus is "always" happy when theyre baked or on drugs
3. this person leads a fairy tale life where seashells and various crustacious carcasses are used as currency in their realm
4. because this person lives in a fantasy, theres always that beautiful maiden or knight in shining armour that comes by at the end and they live happily ever after.
But as normal people, who live in the "real" world know that happy endings are unreal, and if they are real, its usually not as happy as the ones they depict in those pop-up story books we buy for 19.90.
that white square box shaped sticker at the back corner of those fairytale books pretty much sums up the general nature of life...
Happy Endings dont come free; they cost 19.90bucks a piece.
same with every other deals we make in real life, where theres always a price tag hidden somewhere, and at the end of every transaction theres some monetary worth attached.
so much to the point, i bet what sits at the end of the long dark tunnel, where the light is, is a dollar bill, or a muzzle flash from the long end of a shotgun for those who cant make ends meet.
So, how does one make "ends meet"?
Capitalism, is the ideology of today. Many years ago when China was in turmoil in all sectors, social, governmental, financial you name it, theyve got it. Father told me in a phone convo not so long ago - Deng Xiao Ping said these famous words -
"Only Capitalism can save China"
now with the economy in the shithole, people say
"Only China can save Capitalism"
the irony. Whats more so is that, as Moe highlighed- as a person of chinese ethnicity, our ancestors traveled away from China to set their marks on other countries to generate riches for themselves. but now, only after a century, we find ourselves doing the reverse for the same purpose.
Our ancestors came down to do tasks of all shapes and sizes. from Entrepenuers who gather raw materials to be then crafted into ..stuff (those who have been to China know for a fact theres definately no shortage of professional skilled workers in this regard), which in turn is sold for a higher price.
Some came down as "Manual Labourers" (as opposed to... Automatic Labourers?) to do all the heavy lifting.
Some came down to be employees, some employers.
Truth be told, after a century, industrial modes of production and capitalism have since evolved.
Previously the only way to generate funds back in the times of our ancestors (a century or so ago) is by selling, or providing something that people need. The only way to do that, is if/when you have that needed commodity, Be it material goods, such as furniture and such, or services like being a lawyer or having an asshole...and are willing to part with it for some dough.
Nowadays, with the advent of technology and the whole credit system, it seems one can sell things they dont already have.
I read in Dr. Mahathir's blog, on Banking... Banks in the 21st century play a vital, but unbalanced role of generating wealth for its investors, owners and country. one of its functions is to give out loans, and from that, coupled with the mechanics of interest comes income.
a crude example would be, if a bank lends out 100dollars for 10 days, the interest is 0.1%. on a 100$ basis thats not alot, but imagine if the collective sum goes over the millions.
to add to that, banks nowadays (quote from Dr. Mahathir's blog), large banks of today are "allowed" to lend more money than they have; over 10 times the real-amount the bank has. so if the bank has 1000$ in total, then 0.1% generated from 1000 is as such, but take 1000 and x10. 10,000 and 1000 has a significant difference, especially if you bring it up to the real sum as opposed to my under-exagerration of international bank assets.
so where did that 10x come from? the answer is "thin air".
previously when a bank can only lend as much money as they actually have from deposits, its fair game, because as ive highlighted earlier, one sell's its services or commodities that they ACTUALLY own.
Now however, its like ... imagine you go to a shop to buy a chocolate bar, and that shop only has 10 chocolate bars, and they were all sold out before you get there, the shopkeeper says to you "oh, go over next door and you can take one of their bars, but pay me first". this shopkeeper doesnt own the next shop! he's charging you for selling you something that is not his/hers to begin with!
awesome! So it seems that the only way to generate money out of thin air, (with money being the fabric that holds our time-space continum) is by starting a bank!
i did a google search on "how to open a bank", and "how to start a banking business", the results came out in the same light, with articles telling you how to open a "Bank Account". which isnt what i want...
Did i put the word "Account" on the keyword search? No! google needs to L2read...
But from friends, i heard you need absurb amounts of money to start your own bank. like, in the many millions or billions.
so it appears that, the only people able to pull money from their ass (literrally) is by being rich in the first place! oh what injustice.
Maybe i'll buy a fairytale book... and smoke a joint while im at it... seems thats the only way to go :(
If someone tells you "i dont want to be rich, i just want to be happy", you can look at them with a queer eye and it is hence safe to assume:
1. this guy is a hippy and is against the war Viet-American war, which is already over.
2. because he/she is a hippy, he/she does drugs and thus is "always" happy when theyre baked or on drugs
3. this person leads a fairy tale life where seashells and various crustacious carcasses are used as currency in their realm
4. because this person lives in a fantasy, theres always that beautiful maiden or knight in shining armour that comes by at the end and they live happily ever after.
But as normal people, who live in the "real" world know that happy endings are unreal, and if they are real, its usually not as happy as the ones they depict in those pop-up story books we buy for 19.90.
that white square box shaped sticker at the back corner of those fairytale books pretty much sums up the general nature of life...
Happy Endings dont come free; they cost 19.90bucks a piece.
same with every other deals we make in real life, where theres always a price tag hidden somewhere, and at the end of every transaction theres some monetary worth attached.
so much to the point, i bet what sits at the end of the long dark tunnel, where the light is, is a dollar bill, or a muzzle flash from the long end of a shotgun for those who cant make ends meet.
So, how does one make "ends meet"?
Capitalism, is the ideology of today. Many years ago when China was in turmoil in all sectors, social, governmental, financial you name it, theyve got it. Father told me in a phone convo not so long ago - Deng Xiao Ping said these famous words -
"Only Capitalism can save China"
now with the economy in the shithole, people say
"Only China can save Capitalism"
the irony. Whats more so is that, as Moe highlighed- as a person of chinese ethnicity, our ancestors traveled away from China to set their marks on other countries to generate riches for themselves. but now, only after a century, we find ourselves doing the reverse for the same purpose.
Our ancestors came down to do tasks of all shapes and sizes. from Entrepenuers who gather raw materials to be then crafted into ..stuff (those who have been to China know for a fact theres definately no shortage of professional skilled workers in this regard), which in turn is sold for a higher price.
Some came down as "Manual Labourers" (as opposed to... Automatic Labourers?) to do all the heavy lifting.
Some came down to be employees, some employers.
Truth be told, after a century, industrial modes of production and capitalism have since evolved.
Previously the only way to generate funds back in the times of our ancestors (a century or so ago) is by selling, or providing something that people need. The only way to do that, is if/when you have that needed commodity, Be it material goods, such as furniture and such, or services like being a lawyer or having an asshole...and are willing to part with it for some dough.
Nowadays, with the advent of technology and the whole credit system, it seems one can sell things they dont already have.
I read in Dr. Mahathir's blog, on Banking... Banks in the 21st century play a vital, but unbalanced role of generating wealth for its investors, owners and country. one of its functions is to give out loans, and from that, coupled with the mechanics of interest comes income.
a crude example would be, if a bank lends out 100dollars for 10 days, the interest is 0.1%. on a 100$ basis thats not alot, but imagine if the collective sum goes over the millions.
to add to that, banks nowadays (quote from Dr. Mahathir's blog), large banks of today are "allowed" to lend more money than they have; over 10 times the real-amount the bank has. so if the bank has 1000$ in total, then 0.1% generated from 1000 is as such, but take 1000 and x10. 10,000 and 1000 has a significant difference, especially if you bring it up to the real sum as opposed to my under-exagerration of international bank assets.
so where did that 10x come from? the answer is "thin air".
previously when a bank can only lend as much money as they actually have from deposits, its fair game, because as ive highlighted earlier, one sell's its services or commodities that they ACTUALLY own.
Now however, its like ... imagine you go to a shop to buy a chocolate bar, and that shop only has 10 chocolate bars, and they were all sold out before you get there, the shopkeeper says to you "oh, go over next door and you can take one of their bars, but pay me first". this shopkeeper doesnt own the next shop! he's charging you for selling you something that is not his/hers to begin with!
awesome! So it seems that the only way to generate money out of thin air, (with money being the fabric that holds our time-space continum) is by starting a bank!
i did a google search on "how to open a bank", and "how to start a banking business", the results came out in the same light, with articles telling you how to open a "Bank Account". which isnt what i want...
Did i put the word "Account" on the keyword search? No! google needs to L2read...
But from friends, i heard you need absurb amounts of money to start your own bank. like, in the many millions or billions.
so it appears that, the only people able to pull money from their ass (literrally) is by being rich in the first place! oh what injustice.
Maybe i'll buy a fairytale book... and smoke a joint while im at it... seems thats the only way to go :(
posted by Killl_Roy at 8:11 AM
7 Comments:
I don't want to be rich, I just want to be happy! :D
For regular banks, think of it this way.
Their source of capital is thru deposits. FDs pay 2%, saving accts even less. But loans carry a higher interest rate (maybe 5%+, i'm not sure). The spread is what the bank earns. Just like that, 3% from not doing very much.
However, you can do a lot of deals, earning a spread of 3% and be pretty pleased with yourself, but all it takes is ONE loan default and you're back to zero.
On banks pulling money out of thin air, you can liken it to the act of overbooking in the airline industry la. The banks are working on the premise that customers won't withdraw all their savings one shot.
I guess you can also think of it as a loan on the bank's part. Just that they don't have to actually go out and borrow the money until they really need it (sudden surge in withdrawals etc).
I do like your $19.90 analogy though. Real people, real problems =/
P/s comment reflects my personal thoughts, may or may not be the actual case in the industry!
LoL Get Rich Quick Scheme often phails teribadly unless Ur Michael dell, Larry Page or Sergey Brin (founders of google) where they can see things many cannot see. but surprisingly, they started their fortune in Uni, during their spare time!
lol maybe u can sue them for google's incapability of reading words. and that could be better than opening a bank! lololol
-ben-
Moe, to my knowledge banks always have a backup plan. Say for customers defaulting their loan, they will either enforce it thru legal means, mortgaging of property, liquidating assets, or just make a phone call and say "Don Corleone... I have a stone in my shoe...".
For saving accounts, it would take a HUGE scare or some serious problems for mass exodus of funds in the savings part.
im not at all versed at Federal Deposits etc, so i wont comment on it lol.
Its just an interesting thing i came about as im reading random stuff from the net. But since youre in the Banking business, or at least in the sphere as a whole, your guess is as good as anyones :P
Ben, not really trying to get rich quick la lol, but yeah, i was talking to Choke the other day, and we came to the conclusion that businesses nowadays, to make it big one needs to be an entrepenuer.. like Nuffnang advs featured on high profile blogs. the idea is simply brilliant! We are all facing this problem atm, and this problem is really real. Just hope whatever the legit means we get to pull through ;)
This comment has been removed by the author.
I wrote 4k words on banks lending money without having any. I got a shit mark and I think I'm not going to earn a lot of money when I graduate :(
The recent scare was bank failures lor. And in the past few months, it wasn't a difficult scenario to imagine. People rather buy 0% treasury bills than leave money in the banks.
That's the problem today. Everyone tries to think out of the box. Everyone tries to be different, create a new niche. But someone still has to do the work inside the box.. right?
I guess people nowadays just want to get rich quick, as opposed to going it the slow and steady way.
You want quick money, go trade stocks la. With sufficient capital/volume, you can make a killing in no time! (or get killed)
Actually, in Malaysia, I believe there are alot of entrepreneurial opportunities still, probably in the agricultural sector (among others). But Malaysians are a spoilt lot. They refuse to work out of their comfy air-conditioned workplaces. Oh well lor.
But I guess it also boils down to your own skillset la. No way in hell I would be able to start something like Nuffnang due to my incompetence in even starting/designing my own website lol.
Lol Richard.
Yeah what you say about the inside/outside box is true. But that i think only applies in developed countries, Not just in Banking but all other types of jobs as well. In Malaysia, those that have degrees dont want to be on a payroll. I read a paper on unemployment in Malaysia awhile back, the author claimed thru his interviews and personal observation is that students who return to the work force with a degree expect themselves to be treated like Kings and Queens. Those 1800ringgit jobs they dont wanna do...
Stocks is okay, Robert Kiyosaki said something about stock investment being a totally viable way to make money fast, and retire early lol. Something about playing stocks in a 100/1 sucessrate- if youre prepared to lose 99 times out of 100 times and play with the stockmarket in that manner, its a "100% guaranteed" win.
But, unlike gambling, Stocks DO follow trends and predictions, hence its actually "predictable". But the downside to that is, its a big possibility you lose more money than you started out with. Those drama series always talk about people falling from grace by biting too much stock than they can handle.
Making money is like doing any other thing in the world actually. I drew on an anology about skateboarding and skating to Richard and Ibsen the other day... when i wanted to learn skating, i wore my skates everywhere- to dinner, watching tv, moving around the house, showering etc etc, just to let the feeling grow onto my feet like an extension... making money is like that also, once you intergrate your work life and its things into your daily life, making money is as natural as swallowing saliva.
The hard part is how do you condition oneself to the point where creating/innovation in field of work becomes naturalized?
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