Chapter 3 Notes
Robert's Topics > Chapter 3 Notes > The Name of the Game is Debt
rottyreese7 - 3/15/2009 3:00:49 PM
Losses as Lessons
Absolutely! These passed four years have been the second worse years for me financially. However! I continue to learn and try different options. I've always felt off about how our financial system worked so I didn't play the game, nor did my husband and I get into a mortgage crisis. Nonetheless the financial situation has affected us anyway. But we keep learning, and growing! This could potentially be the best thing that has happened to us as we were getting complacent and lazy where investing and money was concerned. In reality, it's best to NEVER stop learning and NEVER stop keeping checks and balances in check. This continual learning is what is keeping us optimistic. The rules keep changes and so shall we.

When I read some of the hard luck stories of those in foreclosure I can't help but think these people went into partnerships of sorts with the bankers, lenders and perhaps the government. (??) One of the biggest rules of being in business is to choose your partner(s) well. Only in their situation, their partners' have the upper hand in their relationship.

I'm looking forward to learning more about your Cash Flow Games and reading more of your books. I know my thinking is a bit skewed about going into debt for the purpose of cash flow, but it's unbelievably scary to invest these days. Reading hard luck stories only makes investing that much more terrifying! Maybe we need a chapter just on the psychological factor of it all.

So, in essence I'm reading about others' losses and taking them as my lessons.

That's all for now.

Great book so far Robert!

mtsen - 3/15/2009 4:12:56 PM
throw away the bad apples, grow the surviving seeds
absolutely agree, its just plain dump to bail out a failing business. every smart investors know to invest into good biz and speed up the closing down of a dying business. I was just making the same comment on Malaysia's situation.
auvenj - 3/15/2009 4:23:37 PM
Bank Bailouts and Homeowner Bailouts

You are right - bailing out homeowners facing foreclosure is not the answer. However, bailing out banks is also not the answer. There should be no government bailouts of any individual or corporation. However, if the government is going to bail out big banks (and and big insurance companies, and big auto companies, etc.) then it must bail out homeowners as well. To not bail out the homeowners when all these big companies are being bailed out is fundamentally wrong.

I think the government should rescind all bailouts. Let the people who made bad decisions fail. But if they're not going to do that - if they're going to bail out people who made bad decisions - then they must be fair and bail out everyone.
westcoastholdings - 3/15/2009 7:47:04 PM
population growth
one thing I am not hearing anything about is that over the years the population in America (and the world) has grown tremendously. What about the fact that there was only so much gold at the time Nixon made the switch and something would have had to be done anyway due to the increase of people making money entering the work force, etc. just based on the fact that there are way more people in the country and the world?? Please comment on this.
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KCO - 3/15/2009 8:53:55 PM
Bailing out people facing foreclosures?
Indeed, I rather agree that bailing them out is not the answer. Just as bailing out banks that created the problem without any disclosure to the taxpayers is not the answer to the problem neither.
The problem is, people don't want pain, don't want to suffer, have been brainstormed and motivated by their regulators to consume and speculate instead of produce and save. So, which political leaders who comes to power will dare to do the necessary and let the free market work, punish the institutions that are responsible for this mess (central banks + regulators!). It would be just, but I am afraid it will be highly unlikely that this would happen.
Many people even don't realize that their is a problem, or they disagree on the problem. As long as not most of us agree on what the exact problem is, we better not talk about the direction of the solution..
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foxhound67 - 3/16/2009 12:22:58 AM
Kia Ora, definitely you learn lessons. As NZ army taught me you can though learn lessons from others though without having to make the mistakes.
My biggest mistake was not buying this book I had heard about called Rich Dad Poor dad before I went to work in Iraq. still the failures & mistakes I made have meant I have now come up with a plan that satisfies many aspects. Commercial, my wish to make a difference in the world, my cultural concerns, sustainable both financially & environmentally.
As I keep saying only thing now holding me back is lack of equity & cash flow. working on ways of moving that forward. At least industry I still work in is one that will increase as things worsen.
e.n.j. - 3/16/2009 2:57:19 AM
understanding of bailouts and money
Oh, how I wish that the politicians in Washington D.C. and at every state level would read this book. Oh, how I wish more people would understand the importance learning to fish rather than just be given a fish.
It makes me sad to know about how uneducated our society is about this matter. I am not being sarcastic but I have a heart felt saddness.
When reading the news, you can't get upset at some comments people make because they are expressing well meaning thoughts that used to be true in the industrial age.
I didn't learn about the money aspect of our society until 5 years ago. I was so ignorant before reading your books and playing Cashflow.
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godfather188 - 3/16/2009 3:09:12 AM
Those are lessons if they only mean few thousand dollar losses.

Those become death wishes if the price is too big to handle.

So it all depends on individuals, divided between who can handle and those cannot.
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sideways - 3/16/2009 4:17:00 AM
What are your thoughts on bailing out people facing foreclosure?
These are some really good questions. I am honing my view of history. We seem to be trying to bail out the middle class. Homeowners are being lumped together with all the rest of the corporate and business people who didn't know how to manage things financially.

If you must know, it seems the middle class could very likely use a lot more help than the jokers who are screwing things up. They claim or appear to be the same, but they are not the same whether they are corporations or homeowners. They are just the ones who appear to be getting bailed out however, and not really the middle class.

To really help the middle class you have to go back to their roots in post revolutionary France, and also America's early adoption of English common law. The middle class appears to have been firmly in control since the late 1800's. A lot of it was based on finance.

As you have mentioned, the finances have been very much played with and changed. The laws have also been played with but remain intact, again, for those who know how things work. To survive, the middle class may have to know how the laws work, and know how the finances work. It is very much as you say. That way they can cling to their roots, and to the freedom that was so hard won. That is not to discredit the common man, it is simply so as not to go back to political and financial puppetry.

I believe it would be of great help to know a lot more about the cash flow quadrant and its relation to history, the upper middle class, to aristocratic influences, supply, and business ownership. Perhaps the middle class were formerly like the self-employed, and need massive help to not make the same mistakes of the self employed on a grand scale.

Love your stuff.

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The Honourable - 3/16/2009 6:54:18 AM
Darkest before Dawn...
Losses are lessons i agree. If you learn from your losses, you will be successful. Many people don't learn or try too so they are doomed to repeat it. Where you go wrong, make it right. The real test is when something bad & overwhelming happens, will you go through that wreckage and learn something? Most people don't have it in them to do so.
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