Thursday, April 10, 2008

Rule # 10 It's Not Your Money

“The earth is the Lord’s, and all it contains.” Psalms 24:1

“What do you have that you did not receive?” I Corinthians 4:7

It’s not your money. You are the “professional” manager placed by God to handle all that it his.

How are you doing?

Money can form a barrier between man and God. By acknowledging that all we have is a gift from God and then managing his resources in a way that glorifies him we can remove that barrier and truly live a life of contentment.






khalid said...

You have a very inspirational and uplifting blog/site.
Surfed on here through your crude oil / soybean trading blog via The Lonely Trader.

warm regards from Dubai

Solfest said...

Thank you Khalid. How bad is the recession in Dubai?


khalid said...

In the absence of hard independently audited official (whether banks or government) data, all I can say is Dubai is definitely recession.
Property market has literally tanked since the Lehman Brothers crash in September.
As a real estate investor myself, I'm talking about an average 50% drop in prices and rent all across town from peaks in summer 2008.
Huge downward pressure on rents and prices has appeared in neighboring Abu Dhabi as well, where rents and prices remained sky high up to February/March. Abu Dhabi RE sector has struggled due to the disappearance of credit from the banks, and also because people living there decided they can live in now-cheaper Dubai and commute to Abu Dhabi.

Jewellers are reporting 40% drop in sales and way below par shopping traffic. Almost all businesses are reporting a minimum of 20-25% reduction in business. Electronics, autos, almost everything is likely seeing 50% less business compared to this time last year.
An automobile sound system guy I know... his business this year is dead. Like a couple of cars a month. He used to several a day.

Construction and real estate related industries have "imploded" causing massive job losses in Dubai especially. The international and local (Dubai, Sharjah and Abu Dhabi), which lent tons of money, to RE projects and related businesses are really struggling.
Default rates in auto loans, mortgages from banks, and credit cards, are unknown but anecdotally skyhigh, and would give North American policymakers heartattacks.
Foreclosures are coming but the rates and when they will happen are unknown, because being a nascent mortgage market, they don't know what to do and how to do it.
Bank balance sheets are simply toxic.
Of course, in 2007-up to Lehman, banks and sovereign wealth investors got burned by toxic investments abroad as well as entering American equities too early, very early.

It's bad!
I think it will get worse.

Hotel occupancy is down dramatically but by lowering hotel room rates, hotels are actually responding quicker to the reduced trade fair business and reduced tourism. Cheaper air fares and Dubai being Dubai, the city is far from dead, however, and it is not the ghost town some in Europe are saying it is, without visiting.
it simply feels like 2002 these days, if you know what I mean. That shows how strong the boom was.

Solfest said...

That sounds bad. The bigger the boom, the bigger the bust I guess.

Real estate is alway tricky as you don't want to be caught holding when things stop moving and prices start dropping.

A lesson we have all learned here in Alberta.

As always those who are 100%, or close to it, financed get crushed.

All the best to you.

Anonymous said...

Your 10 financial rules are exactly correct. Young american are spoiled and do not know or have never been taught any rules.
Schools and many colleges are becoming entertinment venues where kids go to have fun. Everything is provided them. Many will graduate that the freebies will continue.
65 years ago we were taught mental math, cursive penmenship.spelling.
The cost of school Bands, foodball, basket ball and other sports related expenditures auch as professional size sports arenas cost the homeowners large property tax increases. A few of the high school graduates I know can not add or substract mentally. Forget about doing percentages mentally!
I looked forward to attemding and enjoying school even tho there was no school nurse available. no food was provided. It was a 3 mile walk to school. No snack machines. The playground was a large weed covered yard where ocasionally a snake was found and killed.
One student actually brought his 22 rifle to school because there was a chance he would spot a rabbit and shoot it for meat on the table.
I had to carry all my books back and forth to class.There was no spending money on my pockets. GRAMMAR School supplies consisted of a Big Chief tablet,2 pencils,8 crayolas,a bottle of white paste. a large pink eraser. ( Grades 1-6)
There was no cooling in summer and very little heat in winter.
I really learned a lot and can answer YES to 9 of the 10 questions posted
B Del Gado