I'm Back!!!

It's been 15 months since my last posting. I've been very busy with work and school; hence, I find it difficult to find time to blog. However, for the new year, I will change my approach to posting at least monthly. My next topic would be on portfolio management and anything else that is of interest to me.

See you then....

My Personality

For personal growth, it is best to know your personality type. Hence, I took the Myers-Briggs Personality Indicator test and found that I am an INTP (Introverted, iNtuitive, Thinking, Perceiving). I was highly impressed with the result since it described me with a 95% accuracy. Furthermore, a friend agreed that I fit the descriptions.

INTPs are introverted and thinkers. They are the "absent minded professors". Albert Einsteins was an INTP. Although I do not claim to be at the same level as Einstein; however, I've been described as "brilliant", "bright" and "smart". Friends have labeled me their "electrical engineer" or "accountant" because I excel at these areas. For instance, I have installed auto stereo systems for myself and others by upgrading the head units, speakers, subwoofers and amplifiers. Additionally, I am also knowledgeable at basic auto mechanics and can easily perform car maintenance. Further, I can also grasp financial concepts quickly; hence, for the last several years, I've been filing tax returns for friends. Just last month, I've accumulated another label as a "plumber" after a successfully changing a deteriorated flashing system. I can proudly say that I am a jack of all trades. I'd rather do it myself then pay others. I believe that if others can do it, why can't I? I'm just as smart, if not smarter.

On the negative side, I can be an intellectual snobs especially with people who do not strive to do anything (the unproductive losers who can't hold a job and collect free money through welfare). Often times, this group of people have unlimited reasons why they fail and deserve handouts - from underprivilege background, abused as a child, attention deficit disorder and a million other reasons. However, many individuals from destitute families are successful and have 'beaten the odds' so excuses are pathetic attempts to only worsen the situations. Anyone can find success in this world; focus and determination are keys. Don't let unfortunate circumstances determine who you can be especially if you are of able body and mind. Heck, even people with disabilities strive to live a normal life. And if you fail, try again.

On the more positive side, I love learning and analyzing different subjects in economics, politics, sciences, finances, computers and others that I find challenging. I fully enjoy solving difficult intellectual problems. It's the difficulty of solving problems that excites me. I do not fear failure because of belief that I will eventually figure it out with patients, perseverance and time.

However, routine and mundane tasks bores me easily. For instance, I am constantly bored at work because of the inefficient financial system of the government. I'm the type of person who constantly find ways for improvement, but I'm limited due to government regulations and the position I hold is not at managerial level so my power is of nonexistence. I long for a job that will give me the autonomy to strive for continuous progress. Although INTPs dislike managing people and implementing processes, I desire to follow through and see a project from start to finish; hence, I could be an INTJ (Introverted, iNtuitive, Thinking and Judging), so I took another test and came out as an INTJ. INTJs are controlled, structured, organized, makes plans whereas an INTPs are the complete opposites. Therefore, for these reasons, I can safely assume that I fit the INTJ profile more than the INTP.

I encourage everyone to take the test. Certainly, being informed of your strengths and weaknesses can help you become a better person. So take the test and provide me with comments. I'm curious with your results. Let me know your personalities and what you've done for self improvements.

Is Japan Good for the U.S. Economy?

Wall Street is moving towards globalization as more foreign companies invest in our market. With the existing turmoil, our financial market is in need of cash. Japan’s economic system has suffered minimal exposures from the U.S. subprime mortgage related losses and therefore, is rich in cash. With 20% acquisition of its holding, Mitsubishi UFJ's $9 billion investment is now the largest shareholder of Morgan Stanley. Additionally, Nomura Holdings has also acquired Lehman Brother's Asian, Middle Eastern and European portions.

Unfortunately, many foreign banks have experienced massive financial losses from investments tied to the U.S. subprime debacle with United Kingdom suffering the hardest hit. Our current economic problems have discouraged potential investors/lenders, which will adversely affect the future of Wall Street. At this time, only handful institutions can afford to take advantage of the recent market’s downturn - buy low, sell high. Almost 300 financial institutions have failed since 2006.

How strong is Japan's financial system? The Global Financial Centres Index has identified Tokyo as major international financial center. The ranking from June 2008 was listed as such:

1. London
2. New York
3. Tokyo
4. Singapore
5. Chicago
6. Hong Kong
7. Paris
8. Frankfurt
9. Seoul
10. Amsterdam

The ranking was based on five key categories: People, business environment, market access, infrastructure and general competitiveness. Additionally, the Tokyo Stock Exchange is the second largest market capitalization in the world. I predict Japan will continue to be a leader as it proceeds to make sound investments. Considering Asia's financial crisis in 1997, Japan has been overtly cautious; thus, suffering minor losses in the current subprime calamity.

Foreign investments at this time will certainly assist with Wall Street's recovery. Top economists such as Jeffrey Minor from Harvard University has promoted free market and suggested that bankruptcy is the answer and not bailout. With bankruptcy, the company still exists, but transfers ownership from shareholders to creditors. For instance, many airlines filed for bankruptcies with the dramatic increase in oil prices; nonetheless, these companies continue to conduct business (i.e., United Airlines, Delta, Northwest Airlines). Additionally, other economists I've researched are also against the bailout plan.

Personally, I oppose in rescuing investors on the expense of tax payers' money. These bond holders have invested in mortgage securities in the hopes of higher returns. Well, high returns come with risks. It is not the responsibility of tax payers to rescue these investors. Let this be lessons learned for Wall Street, other financial markets world wide and the U.S. government who passed regulations to considerably lessen standards for mortgage loans and encouraged home ownerships; thereby, increasing risky loans and defaults. I understand why others provide their support - to lessen the impact of our crisis by injecting the much needed cash flow - but I believe this is a short-term fix and only worsens our national debt. Furthermore, it might take several years for the market to correct itself.

By the way, in extending the heated bailout package subject, the 451 page proposal ($700 billion bailout and $112 billion tax package) are filled with earmarks and tax extenders such as the following:

-Film and Television Productions (Sec. 502) ($48 million a year savings)
- Wooden Arrows designed for use by children (Sec. 503) ($2 million in savings)
- 6 page package of earmarks for litigants in the 1989 Exxon Valdez incident, Alaska (Sec. 504) ($49 million in savings)
- Virgin Island and Puerto Rican Rum (Section 308) ($192 million in savings)
- American Samoa (Sec. 309)- Mine Rescue Teams (Sec. 310)
- Mine Safety Equipment (Sec. 311)
- Domestic Production Activities in Puerto Rico (Sec. 312)
- Indian Tribes (Sec. 314, 315)
- Railroads (Sec. 316)
- Auto Racing Tracks (317) ($100 million in savings)
- District of Columbia (Sec. 322)
- Wool Fabric Producers ($148 million in savings)

How are these exactly relevant to our financial crisis? Do these constitute emergencies?