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America-nism and Europe-nism, a hell of a difference!

September 9, 2015

I just came back from presenting my research on cancer cure at the University of Berlin (Humboldt). I felt that I had to write an observation of the cost of my month trip in 5 European countries and 10 cities in Germany. Wow! everything I wrote in the first book of my 2 books on the psychology of making money hit “bull’s-eye.” My chapter called Americanism in which I explained why investing in America will make you a lot of money with very little risk than investing in Europe or China, India or anywhere else.

The cost of the hotel, food, transportation, travel and entertainment was higher in Europe than in America, Salaries in Europe are lower than in America, three times more Americans invest in Wall Street than Germans do – in any market. One bystander standing by a segment of the Berlin wall said, “We in Europe believe in Socialism, we don’t like Capitalism, we hope that your Wall Street in new York will soon come down like the Berlin Wall.” I looked around in 5 countries and 10 cities and asked, where is the dynamism that permeates the American experience?” Please don’t get me wrong, readers, most of the people I met in Europe for a whole month were sweet, friendly, engaging and very social, I felt love for them and I worried about their future and identity! They worked hard for very little money and most of their savings were deposited in bank accounts paying about 1% interest every 5 years or so! And those I talked to didn’t seem to care about their countries (except in Hungary). My God, Germans wanted the EU to succeed more than they wanted Germany to succeed! (and, they seem to care more about refugees than about their own lives). I concluded that the selfish Hitler experience of their grandparents in the 20th century created a generational reaction formation in their grandchildren! I pray for Germany and Europe!

Ukraine film director Sentsov goes on trial in Russia

July 22, 2015

You would think why of all the important topics to cover this week I chose this obscure event in Russia? Well, let me tell you, its obscure alright but psychologically big and if you could understand it you’d understand the essence of all the political trials since the Dreyfus case in France in 1894. You see, film directors and news reporters process information in their brain differently from the rest of us. They tend to write favorably about the glorious values of “paternal authority” and “multiculturalism” and tend to be critical of any good sign of healthy “nationalism” or “libertarianism” in the public that reminds them of elements of Hitler’s “authoritarianism of the right.” They are awfully biased for the left in filming and reporting because they never “smell” the terrible damage done to society in this century’s “authoritarianism of the left.” So, any country where the left fights the right these reporters take side with the left against the right and end incarcerated in political trials of biased reporting! Do they harm the state? Yes, but only in the long run by brainwashing the minds of people against the blessings of liberty and capitalism, but they cannot recognize it because they really believe that they fight for justice through paternalistic income redistribution. It’s funny but pathetic that murderer Hitler was so bloody nationalistic in the last century that in this century you can do no wrong by being a “protective” leftist reporter. For Jews the situation is particularly pathetic. Most antisemitism in the past came from the right, but in this century it comes from those reporters who come from the left and can’t see that antisemitism has “shifted” to their own writings.

Ukrain film director Sentsov goes on trial in Russia, not because a tiny director could really harm Hugh mother Russia but because he couldn’t help himself not to be biased. If he lived in America or Israel the New York Times or Haaretz would have loved to hire him.

Cities you would love to live in!

July 12, 2015

There aren’t many, why? Because you weren’t trained how to elect mayors and chiefs of police, the 2 individuals that can make a difference in your life in the cit (You know me, I always tell it like it is)… well…. that is why my posts could be more popular (for this post I should get more than the usual 3 responses). People don’t want to face what works because it doesn’t look right. That is why most of you are not wealthy. You tend to face only what you believe is your reality, when it isn’t your reality! Imagine a city where the mayor and chief of police are friendly to business. Do you think that if you move your business to that city you won’t experience residential prosperity? Sure you would. Then why won’t mayors and chief of police make the right decisions for prosperity for people? The answer: They were not elected because they showed that they know how to make best decisions. They were elected by a System 1 process, a system of making mistakes as described by a Dr. D. K., a Nobel price winner psychologist in 2002. Mayors and Police chiefs can’t change to better thinking, and most people don’t even know what I am talking about because our educational system doesn’t work either that well. The 10% of the people who were poor like me and are now rich are rich became because somehow they changed their thinking from conventional to out of the box, and that is a topic for another time. Dr. D. K.

Let the good times roll.

Do you want to understand what happened to Greece?

July 5, 2015

A nation that created modern civilization and run an empire years ago can’t run its own affairs today, why? You may not like the truth but you will have to swallow it. The Greek people not lazy. They are hard-working but they have a bigger problem than laziness. The Greek people love multiculturalism and paternalism and hate nationalism and libertarianism. This troubled attitude in the Greek people is so strong that if you go around your friends and predict that they Greek people will vote to stay in the European Union at almost any cost your friends will think that you are a genius when it happens. The Greeks love to belong to a multicultural group like Europe. The Greeks love German paternalism. They will stay in the EU untill the end and learn to tolerate the low-level pain or torture of not being free like they once were free to do their own thing. Sad, the proud Greek nation lost their courage to be alone in the world. If you had to sum it up: Greece has a subliminal fear of independence and prefer to live with the illusion that it will all work out fine with good dose of politics of excitement!

As an afterthought: A new educational system could make Greece the envy of the world in 10 years!

Reverse mortgage: What’s the catch?

May 12, 2015

I am retired. I just woke up to face another glorious Monday. I usually turn on the TV from bed because the nonsense on the tube wakes me up faster when I watch the follies of men. This time there was the usual wars where people die because they don’t know how to organize formidable forces, but wait a minute here is a doozy,  a “reverse mortgage” commercial by a famous ex-US senator. Impressive. I am trying to sound cynical. I had to comment on that one because as an immigrant many years ago I have been caught many times by the so-called “attractive but never-delivering commercials.”  The day I stopped listening to most commercials I started making real money. The “catch” is that reverse mortgage works for the “fee makers” more than for the “home makers.” If you knew that why did you get a reverse mortgage?

The answer: The difference is in perception. Is your home is a progressive money-making business or a regressive source of income? That depends on age and attitude. If you are too old you rather pay others to do what you can do better? I understand that. You know others are more interested in their own income than yours but pretend the opposite. Now, if you are lazy or stupid not to do the “business” yourself that’s the “catch,” otherwise a home is really a bonanza, a gold mine for a smart dude. I borrowed the max they would lend me at the lowest interest they could offer and the highest amortization (there are great deals out there). I put the money to work for me at 25% and had enough to live on in luxury and easily pay the increased monthly mortgage payments (my stupid best friend paid off the Hugh mortgage from inheritance). As I said, a home with a large equity is a gold mine. Sure, if you have a “mutual funds” personality like my friend has then go for reverse mortgage. It fits your attitude. But, if you enjoy running your own financial affairs without fear of loss go for a max loan on your house, but wait, don’t do it if you don’t know how to split the “gelt” in a half. The reverse mortgage catch is: consider doing it only if you don’t know how to live and invest!

Freddie Gray: The psychology of injustice.

May 3, 2015

Actually this posting belongs in my psy. blog not my money blog, but I’ll leave it here. Freddie Gray died after being arrested by 6 police officers. The judicial system that will have to handle the officers had become compromised by president Obama who injected himself into the relationship between blacks and whites to get their votes (he got 95% of the black votes). One example, he said, “Trevor Martin could have been my son.”  That statement was not only stupid coming from a “uniting” president but also unconstitutional and psychologically provocative. Obama should have been impeached for lack of psychological insight by making this innocent statement because it induced blacks all over the country to “riot for presidential justice” ever since. Zimmerman was found not guilty in court and the 6 officers will also be found not guilty (or reduced charges) in court. Obama cost the American tax payers a lot of money and indirectly causes more young blacks to disobey the police and die at the hand of untrained police officers who don’t know how to handle disobedience. The relationship between the police and young blacks will improve on January 20, 2017 when an “objective” republican president takes over. I am a registered democrat, but I count the days that this manipulative “Chamberlain” Obama steps down and let the USA stature rise again!

Spend or Save?

April 17, 2015

I was sitting with three smart friends this afternoon at a coffee shop by the Marina discussing the US economy. I have a section in my book on investing called Americanism. Of the three I was the only one that was 100% sold on the American economy. They asked me why I was so sure, after all there are many economists and commentators who believe the US economy is heading toward a 2015 recession (possibly every 7 years), depression (never again because of legislation) or  China economy leaving us behind. The year I wrote about Americanism Obama became president and the DJ was at 9000. Today the market is at 18000 and I made enough money to dance. How do I have the 100% confidence where to put my money that my friends don’t have? It’s simple, there are 2 underestimated documents written in human history that I studied to the hilt, almost at the level of understanding required by a PhD. One is the US Constitution because I was an immigrant (the second document I won’t tell you unless you give me a good reason you want to know). That American Constitution is so goddamn secure and permanent that any investor in the world knows that his money is 100% safe only in New York! My friends didn’t realize that China sells its products and services in the US to the tune of five trillion dollars! The Chinese take about 20% of the money to build infrastructure in China that employ Chinese workers and improves their standard of living and sent the rest of the money to buy stocks in American companies listed in NYSE. The companies can now use the extra cash to hire Americans to build great infrastructures! Furthermore, Americans are smart because they don’t save. They go to Chinese banks for the rest of the money that wasn’t sent to NYSE. They borrow that money for interest payments the Chinese can’t refuse and use the money to visit Shanghai and Paris and Hawaii and have a good time for peanuts. Now you know why Americans always have more money than other people. They borrow, invest, buy goods and services and in the process raise a great standard of living, while helping the Chinese do better too. Now, this wonderful process started happening in india and other countries but not in Japan! The poor Japanese, they can’t shake off their fear of taking risk. In Japan this great economic process of consumerism (spend all your savings) failed. Why? Because the Japanese, either by culture or pessimism,  love to save and hate to spend. In fact, in Japan you get punished by the government if you save too much! They know that growth means spending in general and exponential growth means spending on schools and infrastructure, but they can’t do it. They try to copy the Americans who never save, but they can’t. Why? Oh well, it is human nature that what is simple to do is the hardest to do –  to be simple!


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