My "Credit Crisis" presentations that started this blog did not win any prizes on SlideShare. In all there were 302 submissions and the winning entries can be read from the following article:
The Financial Crisis: A Historical Perspective wins the Credit Crisis contest!
Find time to check out the entries. You maybe able to make use of the information you can find there if not your own to join Marieke Schoenmaker in her quest to make the world a better place for those who are facing economic crisis at this time.
She shares her idea in this slideshow.
Saturday, December 27, 2008
Wednesday, November 26, 2008
What's the credit crunch about?
What's the credit crunch about? How did the banks get themselves into crisis? Chris shares on SlideShare.
Monday, November 24, 2008
A Modern Parable.
Is this how you are running your business?
==============================================================================
From My InBox:
A Japanese company ( Toyota ) and an American company (Ford Motors)
decided to have a canoe race on the Missouri River Both teams practiced
long and hard to reach their peak performance before the race.
On the big day, the Japanese won by a mile.
The Americans, very discouraged and depressed, decided to investigate the
reason for the crushing defeat. A management team made up of senior
management was formed to investigate and recommend appropriate action.
Their conclusion was the Japanese had 8 people rowing and 1 person
steering, while the American team had 7 people steering and 2 people
rowing.
Feeling a deeper study was in order; American management hired a consulting
company and paid them a large amount of money for a second opinion.
They advised, of course, that too many people were steering the boat, while
not enough people were rowing.
Not sure of how to utilize that information, but wanting to prevent
another loss to the Japanese, the rowing team's management structure was
totally reorganized to 4 steering supervisors, 2 area steering
superintendents and 1 assistant superintendent steering manager.
They also implemented a new performance system that would give the 2 people
rowing the boat greater incentive to work harder. It was called the
'Rowing Team Quality First Program,' with meetings, dinners and free pens
for the rowers. There was discussion of getting new paddles, canoes and
other equipment, extra vacation days for practices and bonuses. The
pension program was trimmed to 'equal the competition' and some of the
resultant savings were channeled into morale boosting programs and teamwork
posters.
The next year the Japanese won by two miles.
Humiliated, the American management laid-o ff one rower , halted
development of a new canoe, sold all t! he paddle as, and canceled all
capital investments for new equipment. The money saved was distributed to
the Senior Executives as bonuses.
The next year, try as he might, the lone designated rower was unable to
even finish the race (having no paddles,) so he was laid off for
unacceptable performance, all canoe equipment was sold and the next year's
racing team was out-sourced to India.
Sadly, the End.
Here's something else to think about: Ford has spent the last thirty years
moving all its factories out of the US , claiming they can't make money
paying American wages.
TOYOTA has spent the last thirty years building more than a dozen plants
inside the US The last quarter's results:
TOYOTA makes 4 billion in profits while Ford racked up 9 billion in losses.
Ford folks are still scratching their heads, and collecting bonuses...
IF THIS WEREN'T SO TRUE IT MIGHT BE FUNNY
==============================================================================
From My InBox:
A Japanese company ( Toyota ) and an American company (Ford Motors)
decided to have a canoe race on the Missouri River Both teams practiced
long and hard to reach their peak performance before the race.
On the big day, the Japanese won by a mile.
The Americans, very discouraged and depressed, decided to investigate the
reason for the crushing defeat. A management team made up of senior
management was formed to investigate and recommend appropriate action.
Their conclusion was the Japanese had 8 people rowing and 1 person
steering, while the American team had 7 people steering and 2 people
rowing.
Feeling a deeper study was in order; American management hired a consulting
company and paid them a large amount of money for a second opinion.
They advised, of course, that too many people were steering the boat, while
not enough people were rowing.
Not sure of how to utilize that information, but wanting to prevent
another loss to the Japanese, the rowing team's management structure was
totally reorganized to 4 steering supervisors, 2 area steering
superintendents and 1 assistant superintendent steering manager.
They also implemented a new performance system that would give the 2 people
rowing the boat greater incentive to work harder. It was called the
'Rowing Team Quality First Program,' with meetings, dinners and free pens
for the rowers. There was discussion of getting new paddles, canoes and
other equipment, extra vacation days for practices and bonuses. The
pension program was trimmed to 'equal the competition' and some of the
resultant savings were channeled into morale boosting programs and teamwork
posters.
The next year the Japanese won by two miles.
Humiliated, the American management laid-o ff one rower , halted
development of a new canoe, sold all t! he paddle as, and canceled all
capital investments for new equipment. The money saved was distributed to
the Senior Executives as bonuses.
The next year, try as he might, the lone designated rower was unable to
even finish the race (having no paddles,) so he was laid off for
unacceptable performance, all canoe equipment was sold and the next year's
racing team was out-sourced to India.
Sadly, the End.
Here's something else to think about: Ford has spent the last thirty years
moving all its factories out of the US , claiming they can't make money
paying American wages.
TOYOTA has spent the last thirty years building more than a dozen plants
inside the US The last quarter's results:
TOYOTA makes 4 billion in profits while Ford racked up 9 billion in losses.
Ford folks are still scratching their heads, and collecting bonuses...
IF THIS WEREN'T SO TRUE IT MIGHT BE FUNNY
Tuesday, November 18, 2008
Doctor's views of financial crisis
From My InBox:
Doctors' Opinion of Financial Bail Out Package
The Allergists voted to scratch it, and the Dermatologists advised not to make any rash moves.
The Gastroenterologists had sort of a gut feeling about it, but the Neurologists thought the Administration had a lot of nerve, and the Obstetricians felt they were all laboring under a misconception.
The Ophthalmologists considered the idea shortsighted; the Pathologists yelled, 'Over my dead body!' while the Pediatricians said, 'Oh, Grow up!'
The Psychiatrists thought the whole idea was madness, the Radiologists could see right through it, and the Surgeons decided to wash their hands of the whole thing.
The Internists thought it was a bitter pill to swallow, and the Plastic Surgeons said, 'This puts a whole new face on the matter.'
The Podiatrists thought it was a step forward, but the Urologists felt the scheme wouldn't hold water.
The Anesthesiologists thought the whole idea was a gas, and the Cardiologists didn't have the heart to say no.
In the end, the Proctologists left the decision up to some assholes in Washington.
Doctors' Opinion of Financial Bail Out Package
The Allergists voted to scratch it, and the Dermatologists advised not to make any rash moves.
The Gastroenterologists had sort of a gut feeling about it, but the Neurologists thought the Administration had a lot of nerve, and the Obstetricians felt they were all laboring under a misconception.
The Ophthalmologists considered the idea shortsighted; the Pathologists yelled, 'Over my dead body!' while the Pediatricians said, 'Oh, Grow up!'
The Psychiatrists thought the whole idea was madness, the Radiologists could see right through it, and the Surgeons decided to wash their hands of the whole thing.
The Internists thought it was a bitter pill to swallow, and the Plastic Surgeons said, 'This puts a whole new face on the matter.'
The Podiatrists thought it was a step forward, but the Urologists felt the scheme wouldn't hold water.
The Anesthesiologists thought the whole idea was a gas, and the Cardiologists didn't have the heart to say no.
In the end, the Proctologists left the decision up to some assholes in Washington.
Tuesday, November 4, 2008
Subprime crisis explanation by The Long Johns
The views of John Bird and John Fortune on turbulence in the financial markets.
To view more of such funny takes on the current financial crisis, go to YouTube.
To view more of such funny takes on the current financial crisis, go to YouTube.
Monday, November 3, 2008
States of Artificial Disasters: the path to Crisis
An interesting read to help us evaluate our values in life.
Tuesday, October 28, 2008
Friday, October 24, 2008
Credit crisis induced stress.
If you are facing credit crisis induced stress, take time to look at this presentation. You will find stress relief techniques that you can adopt without punching a hole in your pocket any further.
Credit Crisis Stress 2
View SlideShare presentation or Upload your own.
Wednesday, October 22, 2008
Understanding the Current World Financial Situation
From My InBox:
A simple explanation for the present financial crisis - the Indian way.....
Once upon a time in a village in India , a man announced to the villagers that he would buy monkeys for *$10.*
The villagers seeing there were many monkeys around, went out to the forest and started catching them.
The man bought thousands at *$10*, but, as the supply started to diminish, the villagers stopped their efforts.
The man further announced that he would now buy at *$20.* This renewed the efforts of the villagers and they started catching monkeys again.
Soon the supply diminished even further and people started going back to their farms.
The offer rate increased to* $25 * and the supply of monkeys became so little that it was an effort to even see a monkey, let alone catch it!
The man now announced that he would buy monkeys at *$50*! However, since he had to go to the city on some business, his assistant would now act as buyer, on his behalf.
In the absence of the man, the assistant told the villagers:
'Look at all these monkeys in the big cage that the man has collected. I will sell them to you at *$35* and when he returns from the city, you can sell them back to him for *$50*.'
The villagers squeezed together their savings and bought all the monkeys.
Then they never saw the man or his assistant again, only monkeys everywhere!
* Welcome to WALL STREET...........*
The story is not complete, so I have added 2 episodes:
The real situation is actually more complicated. Had the transactions been confined to physical real monkeys, one could do a physical estimate and expose the con. The smart assistant (he went to Stanford) sold monkey futures to the villagers. Say he sold a contract for a future sale of 10 monkeys to be delivered in 2 weeks at $20 per monkey = $200. But there is no physical delivery in a future contract. Since the villagers expected the price to rise to $50, $20 is a real bargain. That $200 future monkey purchase contract would be worth $500 in 2 weeks. The assistant could sell any number of futures without reference to the actual population of monkeys. There was no need to sell real monkeys from the cage. When the con is exposed the villagers will be left with the original real monkeys and investors in futures with reams of paper.
And the assistant's brother-in-law was even smarter (he went to Harvard). He issued monkey bonds paying 5% pa (compared to the 1% pa from an old fashion bank). The money would be invested in another forest 100 miles away where there had been sightings of, on the average, 50 monkeys daily over the last 30 days. This information was passed on to a rating company. The young punks in the rating company then assumed that if there would be a daily harvest of 50 monkeys, then the expected income would amount to $912,500 (= 50 x 365 x $50). After deducting $100,000 for his profit, he would have $812,500 which could service total bonds of $16,250,000 at 5% pa.
Being a prudent person, the assistant's brother-in-law only expected to issue bonds of $11,000,000 in aggregate. Wow! That's very safe and the bond deserves a triple A rating subject to a fee. Of course, there has to be some risk. So there is a term in the monkey bond that made it worthless should a 'credit event' occur, 'credit event' being defined as anyone of the following: complete extinction of the monkey species, three monsoons in a row in India or DBS Bank becoming insolvent. Now any banker worth his MBA knows these would not happen. So off the banker went to sell $11,000,000 worth of bonds to retirees who were greedy enough to believe the banker's "It's very safe" story.
Of course, we now know that the assistant's brother-in-law disappeared along with the assistant, having pocketed $10,000,000 after deducting say, a million dollars to the banker.
Now the central bank says, "Caveat emptor, mate!"
A simple explanation for the present financial crisis - the Indian way.....
Once upon a time in a village in India , a man announced to the villagers that he would buy monkeys for *$10.*
The villagers seeing there were many monkeys around, went out to the forest and started catching them.
The man bought thousands at *$10*, but, as the supply started to diminish, the villagers stopped their efforts.
The man further announced that he would now buy at *$20.* This renewed the efforts of the villagers and they started catching monkeys again.
Soon the supply diminished even further and people started going back to their farms.
The offer rate increased to* $25 * and the supply of monkeys became so little that it was an effort to even see a monkey, let alone catch it!
The man now announced that he would buy monkeys at *$50*! However, since he had to go to the city on some business, his assistant would now act as buyer, on his behalf.
In the absence of the man, the assistant told the villagers:
'Look at all these monkeys in the big cage that the man has collected. I will sell them to you at *$35* and when he returns from the city, you can sell them back to him for *$50*.'
The villagers squeezed together their savings and bought all the monkeys.
Then they never saw the man or his assistant again, only monkeys everywhere!
* Welcome to WALL STREET...........*
The story is not complete, so I have added 2 episodes:
The real situation is actually more complicated. Had the transactions been confined to physical real monkeys, one could do a physical estimate and expose the con. The smart assistant (he went to Stanford) sold monkey futures to the villagers. Say he sold a contract for a future sale of 10 monkeys to be delivered in 2 weeks at $20 per monkey = $200. But there is no physical delivery in a future contract. Since the villagers expected the price to rise to $50, $20 is a real bargain. That $200 future monkey purchase contract would be worth $500 in 2 weeks. The assistant could sell any number of futures without reference to the actual population of monkeys. There was no need to sell real monkeys from the cage. When the con is exposed the villagers will be left with the original real monkeys and investors in futures with reams of paper.
And the assistant's brother-in-law was even smarter (he went to Harvard). He issued monkey bonds paying 5% pa (compared to the 1% pa from an old fashion bank). The money would be invested in another forest 100 miles away where there had been sightings of, on the average, 50 monkeys daily over the last 30 days. This information was passed on to a rating company. The young punks in the rating company then assumed that if there would be a daily harvest of 50 monkeys, then the expected income would amount to $912,500 (= 50 x 365 x $50). After deducting $100,000 for his profit, he would have $812,500 which could service total bonds of $16,250,000 at 5% pa.
Being a prudent person, the assistant's brother-in-law only expected to issue bonds of $11,000,000 in aggregate. Wow! That's very safe and the bond deserves a triple A rating subject to a fee. Of course, there has to be some risk. So there is a term in the monkey bond that made it worthless should a 'credit event' occur, 'credit event' being defined as anyone of the following: complete extinction of the monkey species, three monsoons in a row in India or DBS Bank becoming insolvent. Now any banker worth his MBA knows these would not happen. So off the banker went to sell $11,000,000 worth of bonds to retirees who were greedy enough to believe the banker's "It's very safe" story.
Of course, we now know that the assistant's brother-in-law disappeared along with the assistant, having pocketed $10,000,000 after deducting say, a million dollars to the banker.
Now the central bank says, "Caveat emptor, mate!"
Laughter is the best medicine
Can anyone laugh reading news about the economy? Yes, you can if you see them through the eyes of Desi Joe.
Here is my take thinking as a Buddhist.
I hope these will turn your alarm off for a little while.
Here is my take thinking as a Buddhist.
![\Toon\](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_tizDbjI06WkwHa-OXTsVcEMlW4yJt6j7iYEiuOYobpOloWO1hBjIO3uoTtY39YkIDrTEnYEY5EXFi_9bipu7ivl2fDSR5iUVcP5204O8t8ui5ZxSTdx4u46K3thy-McRlCCFdfESRpnKuRN2OUA91r8ytJ=s0-d "\Toon\")
I hope these will turn your alarm off for a little while.
Tuesday, October 21, 2008
How the bailout works...
Young Chuck moved to Texas and bought a Donkey from a farmer for $100. The farmer agreed to deliver the Donkey the next day.
The next day the farmer drove up and said, 'Sorry son, but I have some bad news, the donkey died.'
Chuck replied, 'Well, then just give me my money back.'
The farmer said, 'Can't do that. I went and spent it already.'
Chuck said, 'Ok, then, just bring me the dead donkey.'
The farmer asked, 'What ya gonna do with him?
Chuck said, 'I'm going to raffle him off.'
The farmer said, 'You can't raffle off a dead donkey!'
Chuck said, 'Sure I can Watch me. I just won't tell anybody he's dead.'
A month later, the farmer met up with Chuck and asked, 'What happened with that dead donkey?'
Chuck said, 'I raffled him off. I sold 500 tickets at two dollars a piece and made $998.'
The farmer said, 'Didn't anyone complain?'
Chuck said, 'Just the guy who won. So I gave him his two dollars back.'
Chuck now leads the US bank bailout team.
The next day the farmer drove up and said, 'Sorry son, but I have some bad news, the donkey died.'
Chuck replied, 'Well, then just give me my money back.'
The farmer said, 'Can't do that. I went and spent it already.'
Chuck said, 'Ok, then, just bring me the dead donkey.'
The farmer asked, 'What ya gonna do with him?
Chuck said, 'I'm going to raffle him off.'
The farmer said, 'You can't raffle off a dead donkey!'
Chuck said, 'Sure I can Watch me. I just won't tell anybody he's dead.'
A month later, the farmer met up with Chuck and asked, 'What happened with that dead donkey?'
Chuck said, 'I raffled him off. I sold 500 tickets at two dollars a piece and made $998.'
The farmer said, 'Didn't anyone complain?'
Chuck said, 'Just the guy who won. So I gave him his two dollars back.'
Chuck now leads the US bank bailout team.
This blog started with...
The presentation "Wake Up People" was created in answer to a contest "The Credit Crisis in 30 Slides Contest" organised by SlideShare.
I think it is a wonderful way to garner interest to share thoughts on what the current economic crisis is about. Interested in winning these prizes?
1st Prize iPod Touch
2nd Prize iPod Nano
3rd Prize iPod Shuffle
Prizes asides, I believe that we are all going to be winners even without posting any slides entries. Just take a look at the entries made. I am sure you are going to pick up some credit solutions if not financial knowledge along the way.
Here is mine to start with.
So, now you know. If you are alarmed about the financial situation you are in, where should you go? That answer should tell you if you have been paying attention to my wake up call...
I think it is a wonderful way to garner interest to share thoughts on what the current economic crisis is about. Interested in winning these prizes?
1st Prize iPod Touch
2nd Prize iPod Nano
3rd Prize iPod Shuffle
Prizes asides, I believe that we are all going to be winners even without posting any slides entries. Just take a look at the entries made. I am sure you are going to pick up some credit solutions if not financial knowledge along the way.
Here is mine to start with.
So, now you know. If you are alarmed about the financial situation you are in, where should you go? That answer should tell you if you have been paying attention to my wake up call...
Set The Alarm
Everybody's talking about the economic crisis. Maybe it is time to check our spending habits.
Before you take out that credit card, take a deep breath and ponder for a moment. Are actually trying to catch up with the Joneses, again?
That should set the alarm ringing.
Before you take out that credit card, take a deep breath and ponder for a moment. Are actually trying to catch up with the Joneses, again?
That should set the alarm ringing.
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