At Boggs Development Group, we are an ECO-Green environmentally conscious Real Estate Development Design/Build company. Wow, what a mouthful! In this challenging economic environment of Real Estate transactions with high national foreclosure rates, lower loan availability on an economically global scale, higher borrower parameters for loan acceptance, etc. we are finding we must become more strategic in our planning and company strategy in order to maintain and manage future growth.
We currently have numerous projects we are developing with which IndyMac is the controlling financial institution. All of that said, this is not a bad thing. Although, to find a recent report of "economically challenged" banks with IndyMac on that list makes us sit with pause and rethink our current positions as well as our future projects and how we feel we should approach them. I, for one, am generally not enthused to act or react with apprehension. There can be no great courage when there is no confidence or apprehension. Although, confidence doesn't come out of nowhere. It is the result of consistent work, education, planning and dedication.
It is a continual challenge to make sure a company is secure in its cash flow in economic times like these we are encountering. These are the days when we will see the fat get scraped away and the lean and mean businesses maintain their positions.
Wednesday, January 30, 2008
Monday, January 28, 2008
Today is not tomorrow...
Or is it?
Today is not tomorrow...that is it depends on which side of the global timelines you are sitting. A primary challenge in todays business practice and leadership is to find out how one is to guide and motivate a company and its people today in order to manage and grow for tomorrow in an ever increasing time sensitive business environment? How do you get your people, whether they be internal employees, sub-contractors, or consultants to challenge themselves to plan and pursue strategic and growth ideas while giving the appropriate attention to executing the here and now with the care and efficiency your company needs? In order to accomplish this it requires more and more leaders to continually deal personally with situations and concerns in order to navigate both external and internal battlegrounds. Today, more than ever, as nearly all markets have become global in so many ways, there is continual pressure on companies to cut costs and return capital to the bottom line. Also, building value demands that much of that same capital be diverted into long-term investments in order to maintain corporate stability within these trying and interconnecting global economies. All this is to be accomplished at the same time as the company's leader maintain and balance internal resources. On one hand, they need to focus some of their people on continually improving and growing the core business, and on the other, they must free others to break all the rules in the name of growth and innovation. By learning how to strike a successful balance by bringing to bear a new perspective on how growth efforts are situated in your company, how they measure and reward executing the present and building the future, and how they align behaviors to specific growth initiatives will companies find the available light at the end of their proverbial tunnel.
I would encourage readers to give some of their input to some of these questions and concerns. This global community forum is a perfect place in order to have this kind of discourse. We look forward to hearing from you.
Today is not tomorrow...that is it depends on which side of the global timelines you are sitting. A primary challenge in todays business practice and leadership is to find out how one is to guide and motivate a company and its people today in order to manage and grow for tomorrow in an ever increasing time sensitive business environment? How do you get your people, whether they be internal employees, sub-contractors, or consultants to challenge themselves to plan and pursue strategic and growth ideas while giving the appropriate attention to executing the here and now with the care and efficiency your company needs? In order to accomplish this it requires more and more leaders to continually deal personally with situations and concerns in order to navigate both external and internal battlegrounds. Today, more than ever, as nearly all markets have become global in so many ways, there is continual pressure on companies to cut costs and return capital to the bottom line. Also, building value demands that much of that same capital be diverted into long-term investments in order to maintain corporate stability within these trying and interconnecting global economies. All this is to be accomplished at the same time as the company's leader maintain and balance internal resources. On one hand, they need to focus some of their people on continually improving and growing the core business, and on the other, they must free others to break all the rules in the name of growth and innovation. By learning how to strike a successful balance by bringing to bear a new perspective on how growth efforts are situated in your company, how they measure and reward executing the present and building the future, and how they align behaviors to specific growth initiatives will companies find the available light at the end of their proverbial tunnel.
I would encourage readers to give some of their input to some of these questions and concerns. This global community forum is a perfect place in order to have this kind of discourse. We look forward to hearing from you.
Friday, January 25, 2008
Tangible property
or "Chattel" as the IRS calls it, holds much value for tax reduction and powerful depreciation opportunities. The Walls Street Journal, in 2003, wrote that "Cost segregation is a lucrative tax strategy..." By utilizing this strategy you can help to maximize your cash flow, minimize our taxes and reduce your length of depreciation for shorter real estate investment hold times. In real estate, “chattel” means moveable, personal property. Generally, this means things in or on a building or land that can be removed without damaging the structural integrity of the building. But IRS regulations are not always intuitive. For example, a water heater is chattel but a furnace is not! Linoleum is chattel but tile is not!
The estimated amount of chattel in an average 1500sf home consists of approximately $15,000 - $20,000 worth of itemizations for depreciation. This can translate to a $3,000 to $4,000 reduction in taxable income in just the first year. If the property is newer, the value of the chattel is often much higher.
Let me give you a short list of things that you can define as chatterl:
Dishwashers, Refrigerators, Cabinets, Countertops, Ovens, Stoves, Range Hoods, Microwaves, Garbage Disposals, Window Treatments, Lighting Fixtures, Ceiling Fans, Built-in Desks, Wardrobes, Shelving, Ornamental Moldings, Carpeting and Pads, Linoleum, Cable Outlets, Internet Ports, Smoke Detectors, Security Systems, Security Doors, Space Heaters, Window Air Conditioners, Landscaping, Fencing, Irrigation Systems, Driveways, Sidewalks, In-Ground Swimming Pools, Covered Parking, Handicap Accessibility, Water Heaters, and more.
If you own real estate, you probably know that the holdings can be depreciated over 27.5 years for residential property, and 39 years for commercial property. You might even know that there are items in or on the property that can be separated out and depreciated over 5, 7 or 15 years. In 1986, Congress eliminated the Investment Tax Credit and increased the depreciation time for buildings. Since this decreased deductions for taxpayers, accounting firms thought of separating out the components of buildings that had shorter depreciable lives. In the beginning, because of the lack of protocol and expense of the reports and their defense, cost segregation was feasible only for very large holdings.
In the early stages, the IRS did not agree with cost segregation and contested it in many court cases. The turning point was the case in 1997-99 against Hospital Corporation of America, which the IRS lost. Shortly after that, the IRS issued Chief Counsel Advice 199921045 and laid the officially recognized groundwork for cost segregation. Now, the government recognizes cost segregation as a legitimate strategy to encourage business development. There are two IRS publications regarding cost segregation:
* Publication 946, How To Depreciate Property
* Cost Segregation Audit Techniques Guide
It usually takes time for new information to be disseminated. For example, it took many years before 1031 exchanges became readily accepted and available. It takes time for protocols to be established and challenged, and for enough professionals to get educated. Additionally, it was only very recently that companies have been able to efficiently offer chattel valuations, making it affordable for properties with a cost of as low as $50,000. In the past, the report itself could cost more than that.
The IRS recommends that owners who break out these items on their tax returns, obtain a cost segregation study from an independent third party. Without a properly compiled and documented report by an independent, third party, you cannot safely receive all of the tax savings available to you.
You can claim for previous tax years not accounted for, or "catch up depreciation". For tax years 2003 on, taxpayers are allowed to apply a cost segregation study to a prior year without IRS consent. If a taxpayer has filed only one tax return for a specific property, filing IRS Form 3115 (“Application for Change in Accounting Method”) provides an “automatic change” in the depreciation schedule; taxpayers can claim re-configured depreciation without filing an amended return. The IRS has reported that filing a Form 3115 is not a red flag for an audit.
Instructions for Form 3115:
http://www.irs.gov/instructions/i3115/ch01.html
Form 3115:
http://www.irs.gov/pub/irs-pdf/f3115.pdf
If you have filed 2 years or more of returns on your property, you or your accountant must file Form 3115 and then a Section 481 Adjustment. Please contact your CPA or tax attorney for your individual situation.
Under IRS code 167(a) the IRS allow a reasonable allowance for a deduction, over time, for the cost of capital or income earning assets. Code Sections 38 and 168 and Revenue Procedure 87-56 later clarified by Revenue Procedure 88-22, provides guidance on the life of a given object that is depreciable. No Federal or state tax advice is provided. You should seek professional tax advice from your tax advisor with respect to your transaction or matter in order to receive tax advice that is based on your particular circumstance.
The estimated amount of chattel in an average 1500sf home consists of approximately $15,000 - $20,000 worth of itemizations for depreciation. This can translate to a $3,000 to $4,000 reduction in taxable income in just the first year. If the property is newer, the value of the chattel is often much higher.
Let me give you a short list of things that you can define as chatterl:
Dishwashers, Refrigerators, Cabinets, Countertops, Ovens, Stoves, Range Hoods, Microwaves, Garbage Disposals, Window Treatments, Lighting Fixtures, Ceiling Fans, Built-in Desks, Wardrobes, Shelving, Ornamental Moldings, Carpeting and Pads, Linoleum, Cable Outlets, Internet Ports, Smoke Detectors, Security Systems, Security Doors, Space Heaters, Window Air Conditioners, Landscaping, Fencing, Irrigation Systems, Driveways, Sidewalks, In-Ground Swimming Pools, Covered Parking, Handicap Accessibility, Water Heaters, and more.
If you own real estate, you probably know that the holdings can be depreciated over 27.5 years for residential property, and 39 years for commercial property. You might even know that there are items in or on the property that can be separated out and depreciated over 5, 7 or 15 years. In 1986, Congress eliminated the Investment Tax Credit and increased the depreciation time for buildings. Since this decreased deductions for taxpayers, accounting firms thought of separating out the components of buildings that had shorter depreciable lives. In the beginning, because of the lack of protocol and expense of the reports and their defense, cost segregation was feasible only for very large holdings.
In the early stages, the IRS did not agree with cost segregation and contested it in many court cases. The turning point was the case in 1997-99 against Hospital Corporation of America, which the IRS lost. Shortly after that, the IRS issued Chief Counsel Advice 199921045 and laid the officially recognized groundwork for cost segregation. Now, the government recognizes cost segregation as a legitimate strategy to encourage business development. There are two IRS publications regarding cost segregation:
* Publication 946, How To Depreciate Property
* Cost Segregation Audit Techniques Guide
It usually takes time for new information to be disseminated. For example, it took many years before 1031 exchanges became readily accepted and available. It takes time for protocols to be established and challenged, and for enough professionals to get educated. Additionally, it was only very recently that companies have been able to efficiently offer chattel valuations, making it affordable for properties with a cost of as low as $50,000. In the past, the report itself could cost more than that.
The IRS recommends that owners who break out these items on their tax returns, obtain a cost segregation study from an independent third party. Without a properly compiled and documented report by an independent, third party, you cannot safely receive all of the tax savings available to you.
You can claim for previous tax years not accounted for, or "catch up depreciation". For tax years 2003 on, taxpayers are allowed to apply a cost segregation study to a prior year without IRS consent. If a taxpayer has filed only one tax return for a specific property, filing IRS Form 3115 (“Application for Change in Accounting Method”) provides an “automatic change” in the depreciation schedule; taxpayers can claim re-configured depreciation without filing an amended return. The IRS has reported that filing a Form 3115 is not a red flag for an audit.
Instructions for Form 3115:
http://www.irs.gov/instructions/i3115/ch01.html
Form 3115:
http://www.irs.gov/pub/irs-pdf/f3115.pdf
If you have filed 2 years or more of returns on your property, you or your accountant must file Form 3115 and then a Section 481 Adjustment. Please contact your CPA or tax attorney for your individual situation.
Under IRS code 167(a) the IRS allow a reasonable allowance for a deduction, over time, for the cost of capital or income earning assets. Code Sections 38 and 168 and Revenue Procedure 87-56 later clarified by Revenue Procedure 88-22, provides guidance on the life of a given object that is depreciable. No Federal or state tax advice is provided. You should seek professional tax advice from your tax advisor with respect to your transaction or matter in order to receive tax advice that is based on your particular circumstance.
Tuesday, January 22, 2008
Getting things done...
I recently had an Office Organizer/Life Coach come to arrange my life and all of the endless paperwork, etc. we have in our lives. This is something I have difficulty keeping a handle on. I must take the time to thank my lovely wife, Michelle for this!!
She was able to show me tricks that can help reduce the time necessary to keep it all in tact. You can visit her for more information at her website http://www.adhd-coaching.com.
Lindsay is a wonderful director to putting your things in order. She works with you to find the nuances of your own personal power to use ideas that will work for you.
Through her help I am able to get more done in less time with more efficiency. I do still have too much clutter on my desk, but I am getting a lot better. Soon, Lindsay, soon!!
She was able to show me tricks that can help reduce the time necessary to keep it all in tact. You can visit her for more information at her website http://www.adhd-coaching.com.
Lindsay is a wonderful director to putting your things in order. She works with you to find the nuances of your own personal power to use ideas that will work for you.
Through her help I am able to get more done in less time with more efficiency. I do still have too much clutter on my desk, but I am getting a lot better. Soon, Lindsay, soon!!
Saturday, January 19, 2008
The Curiosity Quotient
I've been thinking of the concept of boredom. How could we let ourselves reach a state of boredom? Is there not enough with life to intrigue us? Perhaps we need to let ourselves go. As I have stated previously that there is a saying I have, “Delete the need to understand.” You see, when one allows this, there is so much of life that can be lived in a moment. I also feel that if we allow ourselves to act as children throughout our lives, (to a certain level anyway) we would all benefit much from this. What I mean by this is that in having the need to understand means that there is much of the ego involved. If we can delete the need and replace this with a want to understand, I feel, we would be in a more open, educated and enlightened society.
A child goes to the market with their parent. While watching them pull vegetables from a bin and place them in a basket their knowledge is that this is where vegetable come from. Answered questions from the child will eventually release the appropriate information for this child. A parent is continually asked by their children questions. The child is much like a sponge simply soaking up information. So many of us have stopped asking, Why? There is a point in our lives as children, somewhere in the terrible two range, to which the repetitive word is, Why. There is no reason that this must stop. Why can we not reach for a doorknob, stop, and feel it in our hands, as if for the first time, as we turn it. As we take our steps in the crowded sidewalks of America could we slow and notice the sounds, sights, and smells of our surroundings? Are these simply now taken for granted? Where do we begin to slow this process? Is our world and all it has to offer not enough for us to which we reach a point of not asking questions anymore? Do we no longer notice the nuances of our senses as we live our lives in automatic? Has the automated system we have come to be a participant in taken our need for curiosity?
My wife is someone who continually asks questions. Sometimes I reach a point that I feel frustrated in her desire to know the answer to everything. But, I watch an learn. This comes from a place of curiosity, rather than ego. I also am the type of person who is wanting to learn. I consume information on nearly any topic. My father always used to say that I was a cespool of knowledge...hmmm...Thanks Pop! It is not that I want to be a know it all, however, I feel that what keeps us young and interested in life is the curiosity quotient.
When I look into the night sky I am humbled and amused at the same time. My curiosity of the vastness of space hits me. What else is out there? I know we are not alone. Where are those others from? And what have they seen or know that we don't? There is so much we don't know.
I recently reflected in through the eyes of a child as she walked, repeatedly by me while I waited for a flight in the airport. She would jump up and down as she moved forward trying to miss the cracks in the flooring. The look on her face was of curiosity and pure enjoyment. She seemed as though she was trying to figure out gravity. As most of adults don't truly know the nuances of gravity and its basic principles why can't we do individual study like this child? Oh, right, a straight jacket.
So many of us, as we become adults, get into our lives and patterns and forget that we don't know everything. We have no idea of so much, yet we fail to continue on the quest for information like we did as children. I ask you all to take time each day, five minutes at least, and reflect on your thoughts and feelings as if you were an innocent child. See what questions arise. See what new innocent ideas come from these new thoughts and questions. This is where the meat of life is.
A child goes to the market with their parent. While watching them pull vegetables from a bin and place them in a basket their knowledge is that this is where vegetable come from. Answered questions from the child will eventually release the appropriate information for this child. A parent is continually asked by their children questions. The child is much like a sponge simply soaking up information. So many of us have stopped asking, Why? There is a point in our lives as children, somewhere in the terrible two range, to which the repetitive word is, Why. There is no reason that this must stop. Why can we not reach for a doorknob, stop, and feel it in our hands, as if for the first time, as we turn it. As we take our steps in the crowded sidewalks of America could we slow and notice the sounds, sights, and smells of our surroundings? Are these simply now taken for granted? Where do we begin to slow this process? Is our world and all it has to offer not enough for us to which we reach a point of not asking questions anymore? Do we no longer notice the nuances of our senses as we live our lives in automatic? Has the automated system we have come to be a participant in taken our need for curiosity?
My wife is someone who continually asks questions. Sometimes I reach a point that I feel frustrated in her desire to know the answer to everything. But, I watch an learn. This comes from a place of curiosity, rather than ego. I also am the type of person who is wanting to learn. I consume information on nearly any topic. My father always used to say that I was a cespool of knowledge...hmmm...Thanks Pop! It is not that I want to be a know it all, however, I feel that what keeps us young and interested in life is the curiosity quotient.
When I look into the night sky I am humbled and amused at the same time. My curiosity of the vastness of space hits me. What else is out there? I know we are not alone. Where are those others from? And what have they seen or know that we don't? There is so much we don't know.
I recently reflected in through the eyes of a child as she walked, repeatedly by me while I waited for a flight in the airport. She would jump up and down as she moved forward trying to miss the cracks in the flooring. The look on her face was of curiosity and pure enjoyment. She seemed as though she was trying to figure out gravity. As most of adults don't truly know the nuances of gravity and its basic principles why can't we do individual study like this child? Oh, right, a straight jacket.
So many of us, as we become adults, get into our lives and patterns and forget that we don't know everything. We have no idea of so much, yet we fail to continue on the quest for information like we did as children. I ask you all to take time each day, five minutes at least, and reflect on your thoughts and feelings as if you were an innocent child. See what questions arise. See what new innocent ideas come from these new thoughts and questions. This is where the meat of life is.
Friday, January 18, 2008
Much ado about nothing...
Shakespeare, as we all know, was an amazing talent. His ability to mix laughter and sorrow, to find truth in the human experience and deliver it with a timeless ability and manipulation of our language is paramount. He could see his point in prose through the deepest fog and find ways of creating it in such clarity to stand the test of time. He is certainly a gift to mankind.
Can we all learn from this? Can we learn to see through the fog as he did? Taken literally, the title implies that a great fuss (“much ado”) is made of something which is insignificant (“nothing”), such as the unfounded claims of the character, Hero, and her infidelity. However, the title could also be understood as “Much Ado about Noting.” Another motif occurring throughout the work is the play on the words nothing and noting, which, in Shakespeare’s day, were homophones (that is, they are pronounced the same way). Indeed, much of the action of the play revolves around interest in and critique of others, written messages, misinformation, spying, and eavesdropping.
Acquiring information that is not verified and making decisions to that information is extremely detrimental to any cause. Heresay is not information. This is misinformation. Simply because one, or a group might say something is true, without a validation and proof to exemplify their statements, it should remain untrue. It should be just what it is, a point of view without validation. Rumor, misinformation, and disinformation is very dangerous in today's world.
There is a book I recently finished entitled "Mobs, Messiahs, and Markets". This book explains the dilemma with mob mentality and what it can do in any given situation. When information of any kind is spread across the world in seconds the validity of this information or its necessity for validation is extremely important. The manipulation of the means to spread mis or disinformation is near criminal. We must take action upon ourselves to weed through the mass of information given us and not simply take something at its word as we find that this type of action could lead to destruction on many levels.
It is our responsibility in business to learn all we can about all angles of a situation before acting on it. Although, analysis begets paralysis, means that we must reach a point to act based on the deluge of information we have. The information we have that is validated and verified. We must act without emotion to the true and validated information. Information and business holds no emotion. This arena is best done without emotional content. By adding emotion to business you may end up with much ado about nothing.
Can we all learn from this? Can we learn to see through the fog as he did? Taken literally, the title implies that a great fuss (“much ado”) is made of something which is insignificant (“nothing”), such as the unfounded claims of the character, Hero, and her infidelity. However, the title could also be understood as “Much Ado about Noting.” Another motif occurring throughout the work is the play on the words nothing and noting, which, in Shakespeare’s day, were homophones (that is, they are pronounced the same way). Indeed, much of the action of the play revolves around interest in and critique of others, written messages, misinformation, spying, and eavesdropping.
Acquiring information that is not verified and making decisions to that information is extremely detrimental to any cause. Heresay is not information. This is misinformation. Simply because one, or a group might say something is true, without a validation and proof to exemplify their statements, it should remain untrue. It should be just what it is, a point of view without validation. Rumor, misinformation, and disinformation is very dangerous in today's world.
There is a book I recently finished entitled "Mobs, Messiahs, and Markets". This book explains the dilemma with mob mentality and what it can do in any given situation. When information of any kind is spread across the world in seconds the validity of this information or its necessity for validation is extremely important. The manipulation of the means to spread mis or disinformation is near criminal. We must take action upon ourselves to weed through the mass of information given us and not simply take something at its word as we find that this type of action could lead to destruction on many levels.
It is our responsibility in business to learn all we can about all angles of a situation before acting on it. Although, analysis begets paralysis, means that we must reach a point to act based on the deluge of information we have. The information we have that is validated and verified. We must act without emotion to the true and validated information. Information and business holds no emotion. This arena is best done without emotional content. By adding emotion to business you may end up with much ado about nothing.
Thursday, January 17, 2008
What to do when you don't know...
There is a phrase that has stuck with me for many years. I remember it a lot and let others know it when it is appropriate. That phrase is "Delete the need to understand."
There are so many things in our lives that we can not, should not, will not, could not and do not know the answers for. This is okay. This does not mean that we should not go forward with something. Sometimes the only way to get to an answer is to dive into the abyss without knowing.
Another saying is "analysis begets paralysis". These two in someways go together. If you reach a point to which you find yourself pacing around looking for an answer to something it might be time to step back or step out and do something totally different. This process will let your mind get away from what it does not have an answer to.
Not having an answer is okay. Freeing your mind from the pressure to find what isn't there is very valuable. While you have a time to relax it is then when the answers usually show up.
There are so many things in our lives that we can not, should not, will not, could not and do not know the answers for. This is okay. This does not mean that we should not go forward with something. Sometimes the only way to get to an answer is to dive into the abyss without knowing.
Another saying is "analysis begets paralysis". These two in someways go together. If you reach a point to which you find yourself pacing around looking for an answer to something it might be time to step back or step out and do something totally different. This process will let your mind get away from what it does not have an answer to.
Not having an answer is okay. Freeing your mind from the pressure to find what isn't there is very valuable. While you have a time to relax it is then when the answers usually show up.
Wednesday, January 16, 2008
It's all about relationships...
A business colleague of mine called today and said, "I've spent the day on the phone feeling as if I have ended up in the same place as where I started. I don't feel as if I have gotten anything accomplished today!"
I asked him why he felt this way. He went on to tell me that a large real estate project he has been working on to which he has invested hundreds of thousands of dollars, along with three years of his time, and a private clientele to which he has brought in to it had changed hands of the corporate leadership. The corporation had sold the company. He went on to say that he had had a few conversations with the owners of the company over the holidays to which it was insinuated that the deal was on the market. They had asked him if he or anyone he knew would be interested in buying a part or all of the deal. It seems that someone has, he said. That's just a typical day in the Real Estate development business, I told him.
My friend's initial response was nervousness, uneasy, unknown, and more. He had been on the phone all day trying to find answers. Answers such as who was the new buyer? What was their objectives and time lines? Was the investment going to look and play the same with this new team on board? Could this new blood reignite a new vision and forward momentum of the project? What is their track record with a similar type of project? My friend was worried wondering if he was going to be included in all of the parameters that he was previously promised and/or had been negotiating. What was this changeover going to do to his schedule and economic outlook? Were the numbers going to continue as planned or will this shut things down during the transition?
Most of the day he spent spinning his wheels, he said. Then he decided to call a few business associates that he was working with on other projects. This took his mind off of things for a while. He was able to step back and see a bigger picture beginning to unfold. The emotions began to subside a little as these next set of calls made were those strictly to ease his mind. Although, during those conversations he began to see things from a slightly different perspective.
I had told him that change is a good thing. I reminded him that he had been discussing with me a few months ago how there needed to be a change as the momentum with the project had been lost. Their previous few months of sales had been sluggish and the attitudes of the corporate staff had been lagging. Bringing in this new blood should get the riff raff out of the system. This should bring in a new set of people with new ideas and fresh outlook.
The following calls he made were on a happier note to colleagues and investors. His outlook to these next calls was that of touching base and saying hello rather than trying to satisfy his own feelings of panic or the loss of confidence in what he was doing. By making these calls from a happier place he began to find the positive outlook to the situation. These calls, being on a happier set of views were received well. The conversations went on to personal levels and not simply business related issues since he was coming from a different place.
By coming from this personal place the calls, although they were all business related, were now becoming happier and more open with the other person. The relationships that were there were being strengthened as the conversations turned to jokes and family rather than the daily drudge of business.
As he discussed this with me we talked about how business is not simply a one-on-one, zero sum game. Every facet of a deal is multidimensional due to the numerous players involved. Between the corporate board, managers, shareholders, customers and outside contractors there are so many nuances that all projects hold there is no one sole action that holds so much weight as to ruin any deal. Winning, for lack of a better phrase, may not necessarily be about paying $1 more or less but about creating opportunities for the future, managing the outlook and final target, and not being unduly pressured by inappropriate financing pressures. And sometimes winning is not doing the deal at all.
Regardless to the deal, the relationships built during the deal are priceless. These will continue on to other deals and friendships as time moves on. It is here where the true values lie. Another good deal is always right around the corner. Building a solid relationship is like a great wine in that it takes time and patience. There is trust that is created through solid business integrity. The deals come and go, the good relationships can morph into entities that we may not even have planned on to our benefit.
I asked him why he felt this way. He went on to tell me that a large real estate project he has been working on to which he has invested hundreds of thousands of dollars, along with three years of his time, and a private clientele to which he has brought in to it had changed hands of the corporate leadership. The corporation had sold the company. He went on to say that he had had a few conversations with the owners of the company over the holidays to which it was insinuated that the deal was on the market. They had asked him if he or anyone he knew would be interested in buying a part or all of the deal. It seems that someone has, he said. That's just a typical day in the Real Estate development business, I told him.
My friend's initial response was nervousness, uneasy, unknown, and more. He had been on the phone all day trying to find answers. Answers such as who was the new buyer? What was their objectives and time lines? Was the investment going to look and play the same with this new team on board? Could this new blood reignite a new vision and forward momentum of the project? What is their track record with a similar type of project? My friend was worried wondering if he was going to be included in all of the parameters that he was previously promised and/or had been negotiating. What was this changeover going to do to his schedule and economic outlook? Were the numbers going to continue as planned or will this shut things down during the transition?
Most of the day he spent spinning his wheels, he said. Then he decided to call a few business associates that he was working with on other projects. This took his mind off of things for a while. He was able to step back and see a bigger picture beginning to unfold. The emotions began to subside a little as these next set of calls made were those strictly to ease his mind. Although, during those conversations he began to see things from a slightly different perspective.
I had told him that change is a good thing. I reminded him that he had been discussing with me a few months ago how there needed to be a change as the momentum with the project had been lost. Their previous few months of sales had been sluggish and the attitudes of the corporate staff had been lagging. Bringing in this new blood should get the riff raff out of the system. This should bring in a new set of people with new ideas and fresh outlook.
The following calls he made were on a happier note to colleagues and investors. His outlook to these next calls was that of touching base and saying hello rather than trying to satisfy his own feelings of panic or the loss of confidence in what he was doing. By making these calls from a happier place he began to find the positive outlook to the situation. These calls, being on a happier set of views were received well. The conversations went on to personal levels and not simply business related issues since he was coming from a different place.
By coming from this personal place the calls, although they were all business related, were now becoming happier and more open with the other person. The relationships that were there were being strengthened as the conversations turned to jokes and family rather than the daily drudge of business.
As he discussed this with me we talked about how business is not simply a one-on-one, zero sum game. Every facet of a deal is multidimensional due to the numerous players involved. Between the corporate board, managers, shareholders, customers and outside contractors there are so many nuances that all projects hold there is no one sole action that holds so much weight as to ruin any deal. Winning, for lack of a better phrase, may not necessarily be about paying $1 more or less but about creating opportunities for the future, managing the outlook and final target, and not being unduly pressured by inappropriate financing pressures. And sometimes winning is not doing the deal at all.
Regardless to the deal, the relationships built during the deal are priceless. These will continue on to other deals and friendships as time moves on. It is here where the true values lie. Another good deal is always right around the corner. Building a solid relationship is like a great wine in that it takes time and patience. There is trust that is created through solid business integrity. The deals come and go, the good relationships can morph into entities that we may not even have planned on to our benefit.
Tuesday, January 15, 2008
It's all a state of mind...
I have been having some difficulty sleeping these past few nights. I keep having recurring thoughts about how simple to me it seems to salvage our planetary CO2 issues, yet politically it runs a snails pace. I must say that the primary snail here is our own United States. As the world looks to us for so many reason, as well as, to set precident and examples we have failed them in this area.
I got a new car last year. I have never done a new car before. I would usually get a newly used in years past. Through these previous transactions my thoughts would be of helping to control the overall production numbers as there are plenty of good used cars to choose from. Also, I wouldn't lose a ton of money by driving off the lot, etc. I broke down from these thoughts, though, and I now drive the Lexus 400h. This is the hybrid SUV type. Awesome vehicle. It is a great car and I love it. The technology with this, as well as the Prius, I find are exemplary for our time. I am not saying that they are the end all, but they offer some great new technology for us to learn from and move forward from. A business partner of mine owns the Honda Hybrid. Amazing mileage on the Honda and Prius. These are all great cars. There are numerous reason for my saying this, as well as the fact that there are numerous reason that some people say that a hybrid is not good. The issues of the batteries, and production changes lead to manufacturing costs and pollution as new casts and dies are necessary. My response to much of those issues is the same for any car manufacturer as they change engines and bodies every year, so that arguement holds no weight for me. The battery issue is something that will become less problematic as we move forward due to the nature of the pressure to make those changes. This is what economic and environmental pressures will do. Not allowing these technological changes to occur will only bring the same. And that ain't workin!
My point though is that it is much a state of mind. I find that by owning this vehicle I am more in tune to my work towards building a better world. This vehicle has made an impact on my point of view. I find a large amount of value in a point of view. This will transcend all else and begin to shape and reshape ones outlook and actions towards their future.
By beginning with a thought, does an action begin to take place. This is specifically why I say "be careful what you wish for (or think about) as you will get it". A thought is a powerful thing. This is where your future definitive plans begin to take place. By our thoughts staying within a positive realm we will find ourselves continually thinking positive things, subsequently we will act in a more positive manner toward others. We will act in a more positive matter to make and accept changes.
When you visualize what you want this begins to make the thoughts become real and bring them forward. I say to visualize what you want, not what you don't want. If you do this you will bring forward more of what you don't want. Not good. This visualization is a powerful means to a great and successful end. It takes practice. This is how I got the Lexus. I would drive around and say "I want that car" whenever I would see one. Once, I was stopped at a light, before I had gotten mine and there was a Lexus 400h next to me. I told the person to roll down the window so I could talk. They did. I asked them if they liked their car, and the reaction was great. A beam of happiness came over the driver and accolades regarding the vehicle came out. I told them I wanted one, and they smiled and drove away. This not only made this person feel good to validate to themselves of their driving decision, but it made me feel good to know that this person feels good, and that I will feel good driving this as well. My visualizations soon turned to reality as I went to pick up the vehicle.
Don't get me wrong, it does not have anything to do with a car. This could be anything. It doesn't have to be something that is new or purchased. This could be anything. It is the state of mind.
What you want out of life begins in the imagination. There are not limits to this, as it is your imagination. This action is done all day long by us, but most of us are not conscious about them. Begin to become conscious of your thoughts. Begin to make your thoughts what you want, and not what you don't want. This is key. When you begin to have thoughts about what you don't want, STOP, and begin to think about something else. THIS IS THE KEY. You can't monitor all of your thoughts, so when you feel off, recognize what you are thinking and begin to change that thought as your feeling is true, so change your thought.
Then begin taking these feelings and thoughts and organizing them into definitive plans. This could be as simple as getting ready in the morning. Some people have chaos in their home as the morning ritual begins. Take some time, perhaps at night as you are winding down and begin to think about how you wish to see your morning ritual change. Only think of what you want. Now, organize these thoughts in ways that will help you reach this action. Write them down in a journal or diary or simply on a notepad to make them conscious. Leave it by the bed table to you can see it first thing in the morning. Every day.
Take a few minutes and visualize what you want in your mind. How or what would it look like? What would it sound like? What are the tastes, textures and sounds? What would you be feeling when this happens? I said WHEN this happens, not IF. This is also KEY. Lose the word IF. These thoughts and visualizations will bring forth your belief. When you truly believe that something will happen and you can visualize its success for you, you are there.
There is no reason to doubt. Your thoughts of doubt are not of what you want. Your thoughts of doubt are what you don't want. You don't want doubt so don't go there.
This takes practice. But this is your life.
Descartes, the famed philosopher of the early 1600's once said, "Dubito, ergo cogito, ergo sum" which is Latin: "I doubt, therefore I think, therefore I am". Descartes defines "thought" (cogitatio) as "what happens in me such that I am immediately conscious of it, insofar as I am conscious of it". Thinking is thus every activity of a person of which he is immediately conscious. He needed only to lose the doubt! ;-)
His saying is now known to be "I think, therefore, I am."
This begins to outline the power of thought. If we think it, it will be. The funny thing about this is that you don't have to believe it. It will happen whether you feel this is mumbo jumbo or not. That is the funny truth to this practice. However, understanding this is the first step to an amazing amount of power. The power to change your life to what you want.
There are examples of this daily throughout the world. So, many of these examples come from people and places where the odds against them are unsurmountable. Yet, they prevail. They think of only of what they want...not of what they don't want.
By the visualizations of what you want help you to begin to make the plans and mental blueprints of how to begin to implement your thoughts and have them begin in our life. You will begin to build the life you want from the thoughts that are guiding your way. You are doing this anyway, but are you getting what you want? If you aren't getting what you want, and more of what you don't want and you think this is bunk, then keep on getting what you don't want. This costs you nothing! However, it will gain you your life you want! Try it. It works.
I got a new car last year. I have never done a new car before. I would usually get a newly used in years past. Through these previous transactions my thoughts would be of helping to control the overall production numbers as there are plenty of good used cars to choose from. Also, I wouldn't lose a ton of money by driving off the lot, etc. I broke down from these thoughts, though, and I now drive the Lexus 400h. This is the hybrid SUV type. Awesome vehicle. It is a great car and I love it. The technology with this, as well as the Prius, I find are exemplary for our time. I am not saying that they are the end all, but they offer some great new technology for us to learn from and move forward from. A business partner of mine owns the Honda Hybrid. Amazing mileage on the Honda and Prius. These are all great cars. There are numerous reason for my saying this, as well as the fact that there are numerous reason that some people say that a hybrid is not good. The issues of the batteries, and production changes lead to manufacturing costs and pollution as new casts and dies are necessary. My response to much of those issues is the same for any car manufacturer as they change engines and bodies every year, so that arguement holds no weight for me. The battery issue is something that will become less problematic as we move forward due to the nature of the pressure to make those changes. This is what economic and environmental pressures will do. Not allowing these technological changes to occur will only bring the same. And that ain't workin!
My point though is that it is much a state of mind. I find that by owning this vehicle I am more in tune to my work towards building a better world. This vehicle has made an impact on my point of view. I find a large amount of value in a point of view. This will transcend all else and begin to shape and reshape ones outlook and actions towards their future.
By beginning with a thought, does an action begin to take place. This is specifically why I say "be careful what you wish for (or think about) as you will get it". A thought is a powerful thing. This is where your future definitive plans begin to take place. By our thoughts staying within a positive realm we will find ourselves continually thinking positive things, subsequently we will act in a more positive manner toward others. We will act in a more positive matter to make and accept changes.
When you visualize what you want this begins to make the thoughts become real and bring them forward. I say to visualize what you want, not what you don't want. If you do this you will bring forward more of what you don't want. Not good. This visualization is a powerful means to a great and successful end. It takes practice. This is how I got the Lexus. I would drive around and say "I want that car" whenever I would see one. Once, I was stopped at a light, before I had gotten mine and there was a Lexus 400h next to me. I told the person to roll down the window so I could talk. They did. I asked them if they liked their car, and the reaction was great. A beam of happiness came over the driver and accolades regarding the vehicle came out. I told them I wanted one, and they smiled and drove away. This not only made this person feel good to validate to themselves of their driving decision, but it made me feel good to know that this person feels good, and that I will feel good driving this as well. My visualizations soon turned to reality as I went to pick up the vehicle.
Don't get me wrong, it does not have anything to do with a car. This could be anything. It doesn't have to be something that is new or purchased. This could be anything. It is the state of mind.
What you want out of life begins in the imagination. There are not limits to this, as it is your imagination. This action is done all day long by us, but most of us are not conscious about them. Begin to become conscious of your thoughts. Begin to make your thoughts what you want, and not what you don't want. This is key. When you begin to have thoughts about what you don't want, STOP, and begin to think about something else. THIS IS THE KEY. You can't monitor all of your thoughts, so when you feel off, recognize what you are thinking and begin to change that thought as your feeling is true, so change your thought.
Then begin taking these feelings and thoughts and organizing them into definitive plans. This could be as simple as getting ready in the morning. Some people have chaos in their home as the morning ritual begins. Take some time, perhaps at night as you are winding down and begin to think about how you wish to see your morning ritual change. Only think of what you want. Now, organize these thoughts in ways that will help you reach this action. Write them down in a journal or diary or simply on a notepad to make them conscious. Leave it by the bed table to you can see it first thing in the morning. Every day.
Take a few minutes and visualize what you want in your mind. How or what would it look like? What would it sound like? What are the tastes, textures and sounds? What would you be feeling when this happens? I said WHEN this happens, not IF. This is also KEY. Lose the word IF. These thoughts and visualizations will bring forth your belief. When you truly believe that something will happen and you can visualize its success for you, you are there.
There is no reason to doubt. Your thoughts of doubt are not of what you want. Your thoughts of doubt are what you don't want. You don't want doubt so don't go there.
This takes practice. But this is your life.
Descartes, the famed philosopher of the early 1600's once said, "Dubito, ergo cogito, ergo sum" which is Latin: "I doubt, therefore I think, therefore I am". Descartes defines "thought" (cogitatio) as "what happens in me such that I am immediately conscious of it, insofar as I am conscious of it". Thinking is thus every activity of a person of which he is immediately conscious. He needed only to lose the doubt! ;-)
His saying is now known to be "I think, therefore, I am."
This begins to outline the power of thought. If we think it, it will be. The funny thing about this is that you don't have to believe it. It will happen whether you feel this is mumbo jumbo or not. That is the funny truth to this practice. However, understanding this is the first step to an amazing amount of power. The power to change your life to what you want.
There are examples of this daily throughout the world. So, many of these examples come from people and places where the odds against them are unsurmountable. Yet, they prevail. They think of only of what they want...not of what they don't want.
By the visualizations of what you want help you to begin to make the plans and mental blueprints of how to begin to implement your thoughts and have them begin in our life. You will begin to build the life you want from the thoughts that are guiding your way. You are doing this anyway, but are you getting what you want? If you aren't getting what you want, and more of what you don't want and you think this is bunk, then keep on getting what you don't want. This costs you nothing! However, it will gain you your life you want! Try it. It works.
Monday, January 14, 2008
No left turn on solid green...
The shipping company United Parcel Service did a study in 2004 and announced that their drivers would avoid making left turns. It was determined that this act will be a way to curb CO2 emissions. The reasoning behind this is that the time spent idling while waiting for oncoming traffic burns fuel. Now, for a company of this size, this fuel can become a substantial amount of millions each year. They devised a software program to map out the necessary customized routes for their drivers to minimize the left turns. Through enacting this process, in New York City, the company reduced their emissions by 1,000 metric tons in the first six months of 2007. Today, 83% of all of the UPS facilities are headed in this direction. Within 2 years the policy will become national to the company.
Another example of insight and thinking outside the box...or around the packaging...
Another example of insight and thinking outside the box...or around the packaging...
Sunday, January 13, 2008
Live more simply,
so that others may simply live. This saying has been in our collective conscience for some time now. It doesn't seem to have much pull.
We are a society that does not teach its children spending habits. We are a society that needs to teach its administration spending habits on a national level and state levels as well. The setting by example tends to be the only trickle down theory that exists in our society today. Where is this?
As more people are beginning to buy organic this will bring pricing down. Even WalMart has organic food these days. Perhaps our city planners will concede that it is a bit smarter to rezone some areas for retail/housing mixes. As developers nationally create new large scale developments or planned communities it should be required more that the necessary infrastructure be planned accordingly. We must begin to make these new villages with 1000 homes plus to place a certain amount of retail space within the development. I see so many developments that are "only" 15-20 miles from WalMart, Target, Home Depot and such. This continued mentality maintains the need for people to drive in their cars to get everything. This perpetuates the limiting time factors in people's lives. The then do not have the time to spend for themselves or their families. This perpetuates the eating habits of the society which helps to create the obesity numbers. This perpetuates the declining health of our society. This perpetuates...
What can be done?
Live more simply so that you can simply live! Upon the act of selfishness, perhaps we will find a means to get something done. If we buy more local fresh organic food we help to eliminate the massive packaging that spoils our landfills. This act alone will make us more healthy overall and reduce the emissions from creating and shipping such processed and packaged products.
Consume less is another thought. I remember shopping with a family member a few years back as we manouvered through WalMart. This was my first experience of that store. As the conversations carried on, while looking and conversing in one direction the hands were simply grabbing "things" from the shelves and placing them in the cart. There were times when there was literally no comprehension of what was going into the cart. It was that we were in the toy section for stocking stuffing so it really didn't matter on the grand scale. My feeling, however, was the thought of how much packaging and garbage this action will create. These are toys that will be used for 2 hours at most and discarded. I began to remove some of these items while the discussions continues and replaced them back on the shelves and nobody was the worse for it.
We are a society that wants. While we want can be a good thing. This can drive our economy and bring in new ideas and technologies for the betterment of us all. This can also become a crutch for the laziness that is penetrating our society. Drive through, remote control everything, automated this and that. I am not saying that we should not create and posses some of these items. However, one must become manageable to ones own life and its needs and possessions. When purchasing items that will be garbage in a few hours for a gift by using credit to which one might take three years to pay off is not responsible.
I do not wish to lose track of my point. The point being if we begin to think more about our needs and personal output things can change. Don't believe everything on the television. Just because you see an add for some colored pill doesn't mean you need it. Meditate. Consume less. Think more. Learn more. Borrow things and get to know your neighbors. Drive less. Exercise. Eat fresh.
My wife says a mantra that "time expands to meet my needs." As she believes it it shows up in her life. So many of our society continually state that there is not enough time in the day for family, work, self. But, no one seems to do anything different to create it. If you keep doing the same thing you will keep getting the same results. Change is good.
We are a society that does not teach its children spending habits. We are a society that needs to teach its administration spending habits on a national level and state levels as well. The setting by example tends to be the only trickle down theory that exists in our society today. Where is this?
As more people are beginning to buy organic this will bring pricing down. Even WalMart has organic food these days. Perhaps our city planners will concede that it is a bit smarter to rezone some areas for retail/housing mixes. As developers nationally create new large scale developments or planned communities it should be required more that the necessary infrastructure be planned accordingly. We must begin to make these new villages with 1000 homes plus to place a certain amount of retail space within the development. I see so many developments that are "only" 15-20 miles from WalMart, Target, Home Depot and such. This continued mentality maintains the need for people to drive in their cars to get everything. This perpetuates the limiting time factors in people's lives. The then do not have the time to spend for themselves or their families. This perpetuates the eating habits of the society which helps to create the obesity numbers. This perpetuates the declining health of our society. This perpetuates...
What can be done?
Live more simply so that you can simply live! Upon the act of selfishness, perhaps we will find a means to get something done. If we buy more local fresh organic food we help to eliminate the massive packaging that spoils our landfills. This act alone will make us more healthy overall and reduce the emissions from creating and shipping such processed and packaged products.
Consume less is another thought. I remember shopping with a family member a few years back as we manouvered through WalMart. This was my first experience of that store. As the conversations carried on, while looking and conversing in one direction the hands were simply grabbing "things" from the shelves and placing them in the cart. There were times when there was literally no comprehension of what was going into the cart. It was that we were in the toy section for stocking stuffing so it really didn't matter on the grand scale. My feeling, however, was the thought of how much packaging and garbage this action will create. These are toys that will be used for 2 hours at most and discarded. I began to remove some of these items while the discussions continues and replaced them back on the shelves and nobody was the worse for it.
We are a society that wants. While we want can be a good thing. This can drive our economy and bring in new ideas and technologies for the betterment of us all. This can also become a crutch for the laziness that is penetrating our society. Drive through, remote control everything, automated this and that. I am not saying that we should not create and posses some of these items. However, one must become manageable to ones own life and its needs and possessions. When purchasing items that will be garbage in a few hours for a gift by using credit to which one might take three years to pay off is not responsible.
I do not wish to lose track of my point. The point being if we begin to think more about our needs and personal output things can change. Don't believe everything on the television. Just because you see an add for some colored pill doesn't mean you need it. Meditate. Consume less. Think more. Learn more. Borrow things and get to know your neighbors. Drive less. Exercise. Eat fresh.
My wife says a mantra that "time expands to meet my needs." As she believes it it shows up in her life. So many of our society continually state that there is not enough time in the day for family, work, self. But, no one seems to do anything different to create it. If you keep doing the same thing you will keep getting the same results. Change is good.
Saturday, January 12, 2008
Zero sum gains...
Is this global energy market working? Throughout Europe, United States, India, China and all areas of the known planet, we are seeing the effects of our existence as an integral part of the global ecosystem. As our oil fields begin to become depleted and there continues to be unstable regions throughout the oil rich Arab nations we will find ourselves paying increasing amounts for our energy resources. That is until our administration decides to make solid moves forward toward alternative energies that create solutions not band aids.
The motivation is clearly not do to the evidence of our direct relation to our(mans') existence within our environment that expands over twenty thousand years. Many more details have become available to us in the past one hundred years and more. Through Darwin's studies and subsequent scholars and scientists since we have measured and notated millions of various species and living environments. Despite this fact, there yet are arguments for and against the thought that the human presence has a measured effect on our use of the planet and its resources. But wouldn't it seem that as natural as a CO2 emission is in the global environment without man's presence, it should go without saying that with our presence is simply an added effect that can be measured and quantified. Due to this we, if we are not creating the Ozone depletion through our massive CO2 emissions globally, we have now in the past 100 or so odd years created a noted mark of our consumption. We must find a means to bring ourselves to a point of zero net emissions. This is is the responsible means to our existence here on this limited space we inhabit.
As we find ourselves venturing more assets more quickly into the burgeoning commercial industries of alternative energies and alternative resources we find that this presents opportunity for new generations of industry pioneers and researchers to find appropriate technologies that will carry us globally into the future. This is capitalism at its best. We must embrace and assist in the quest and desire to find these alternative sources of capitalism.
As farmers in America are subsidized for the corn crops for ethanol, we should also subsidize as much for other alternative energy methods. Since ethanol is only a 10% to 20% replacement in most petroleum based fuels, we should be subsidizing the same amount of money to companies researching and creating alternative energies. It seems only fair. In fact, in the long run the subsidies for the alternative energies will pay off better for our economy. Through this assistance we will find energies that become zero net and free to acquire once the installations are in place. This is substantially different to the subsidizing of corn. We are finding the price of food rising, water consumption is dramatically increased due to this crops need for cultivation. Studies show that the emissions from the manufacturing and shipping of ethanol do nothing for the overall cause as they exceed or negate the savings we are trying to achieve.
As we find out more about ourselves and our place in our environment we must act more responsibly to ourselves and nature. By becoming more of a society that learns to create and consume on a zero net gain equation through conservation methods, re-use and recycle practices, emissions control and containment, and more.
The motivation is clearly not do to the evidence of our direct relation to our(mans') existence within our environment that expands over twenty thousand years. Many more details have become available to us in the past one hundred years and more. Through Darwin's studies and subsequent scholars and scientists since we have measured and notated millions of various species and living environments. Despite this fact, there yet are arguments for and against the thought that the human presence has a measured effect on our use of the planet and its resources. But wouldn't it seem that as natural as a CO2 emission is in the global environment without man's presence, it should go without saying that with our presence is simply an added effect that can be measured and quantified. Due to this we, if we are not creating the Ozone depletion through our massive CO2 emissions globally, we have now in the past 100 or so odd years created a noted mark of our consumption. We must find a means to bring ourselves to a point of zero net emissions. This is is the responsible means to our existence here on this limited space we inhabit.
As we find ourselves venturing more assets more quickly into the burgeoning commercial industries of alternative energies and alternative resources we find that this presents opportunity for new generations of industry pioneers and researchers to find appropriate technologies that will carry us globally into the future. This is capitalism at its best. We must embrace and assist in the quest and desire to find these alternative sources of capitalism.
As farmers in America are subsidized for the corn crops for ethanol, we should also subsidize as much for other alternative energy methods. Since ethanol is only a 10% to 20% replacement in most petroleum based fuels, we should be subsidizing the same amount of money to companies researching and creating alternative energies. It seems only fair. In fact, in the long run the subsidies for the alternative energies will pay off better for our economy. Through this assistance we will find energies that become zero net and free to acquire once the installations are in place. This is substantially different to the subsidizing of corn. We are finding the price of food rising, water consumption is dramatically increased due to this crops need for cultivation. Studies show that the emissions from the manufacturing and shipping of ethanol do nothing for the overall cause as they exceed or negate the savings we are trying to achieve.
As we find out more about ourselves and our place in our environment we must act more responsibly to ourselves and nature. By becoming more of a society that learns to create and consume on a zero net gain equation through conservation methods, re-use and recycle practices, emissions control and containment, and more.
Thursday, January 10, 2008
Fools Rush In...and out
By Bill Bonner
The central challenge to investors is to spot the biggest blockhead among them. In today’s column, we take a guess.
One of the conceits of market theorists is that prices are set rationally – based on investors’ independent judgments. In fact what happens is that mass sentiments and easy credit get them better of them. Even sophisticated investors get carried away by the crowd, like dead martyrs…or they are tempted away by artificially low lending rates. Instead of buying assets with predictable yields, they’re greedy for capital gains or fearful of losses. The trend continues, the emotion intensifies…one fool sells to another…until, finally, the greatest fool of all enters the market and the
trend reverses.
Who’s the greatest fool today? Sub-prime CDO buyers? Google shareholders? We might as well be looking for the biggest oaf on television; there are too many candidates to choose from. So, we begin by rounding up the usual suspects - central bankers and contemporary art buyers. The former have a long record; the latter, a flamboyant one.
Probably no central bankers are more prudent than the Swiss. At the end of the ’90s, the Swiss had the third largest gold horde in Europe – after Germany and France. But then, the Swiss central bank lost its head and decided to ‘diversify’ its holdings. The result: it dumped half its bullion – at the worst possible moment. The yodelers sold 1,300 tonnes in the five years between 2000 and 2005. From those sales, the Swiss realized about $14 billion. If they’d just held onto the stuff, it would be worth about $34 billion today – a difference that would be worth about $2,700 to every man, woman and child in Switzerland.
Meanwhile, closer to sea level, but with his head still in the clouds, the UK’s Chancellor of the Exchequer, Gordon Brown, had a similar notion. In 1999, he announced a plan to sell half of kingdom’s gold. In the event, he sold 395 tonnes, at an average price of about $275 per ounce – or, in real terms, the lowest price since the early ’70s. Some sales were recorded at the absolute lowest price - $256 per ounce, which came to be known as the “Brown bottom” of the great bear market in gold, 1980-1999. The Greatest Fool of All had made his move.
This week, the fools bumped into each other…coming and going. The Greatest Fools of yesteryear – the poor fellows who bought Kruggerands in January, 1980 – were finally back to breakeven. Twenty-seven years ago, gold sold for more than $800. It took more than a quarter century; but now it has recovered. And now, the fools who sold Britain’s gold in 2000-2005 are out nearly $7 billion.
What are central banks doing now? Gold sales by the banks are said to be at an 18-year low. When they begin buying gold, we will begin to wonder. When gold purchases by central banks rise to an epic high, it will be time to sell.
Meanwhile, art – like gold - has no real, intrinsic value. But as contrary indicators, art buyers are probably nearly as reliable as central bankers. Wayne Thiebaud’s “Seven Suckers” sold for $4.5 million on Tuesday. It was a “record for the artist,” said the International Herald Tribune. Above the caption is the photo…of, well, seven suckers. No, not a photo of Gordon Brown and his colleagues; it is a still life of silly little candy lolly-pops. The piece was part of a collection of dubious works, which passed from the hands of knaves into the hands of fools via Christies in New York earlier this week.
A new record was also reached by John Chamberlain, who crushed some sheet metal in 1960 and called it “Hatband.” The work brought $2.81 million, more than twice the previous record, set earlier this year, for a work by Chamberlain.
Another feature of the collection was a group of what we know in America as “Cigar Store Indians.” For reasons unexplained, shops that sold cigars, in the 19th century, set out a wooden Indian as a marker of their retail trade, similar to the way barbers used a barber pole. The most anyone ever paid for one of these wooden Indians came in 1990, when a buyer bought a 1875 sculpture, “Cigar Store Princess,” for $10,450. But that was before the great credit bubble expanded investors’ wallets and squeezed their brains. This past Tuesday, someone bought one of these wooden Indians for $217,000. Contemporary art has gone up 55% this year alone. Fools rushed in every time the auction houses opened their doors. But the very day that the “Seven Suckers” was sold for $4.5 million, not a single sucker could be found willing to spend more than $6 million for Willem de Kooning’s untitled 1942 “nondescript” painting. It brought only $5.3 million, barely half the upper estimate. Even in the art market, the Greatest Fool may have already come and gone.
The central challenge to investors is to spot the biggest blockhead among them. In today’s column, we take a guess.
One of the conceits of market theorists is that prices are set rationally – based on investors’ independent judgments. In fact what happens is that mass sentiments and easy credit get them better of them. Even sophisticated investors get carried away by the crowd, like dead martyrs…or they are tempted away by artificially low lending rates. Instead of buying assets with predictable yields, they’re greedy for capital gains or fearful of losses. The trend continues, the emotion intensifies…one fool sells to another…until, finally, the greatest fool of all enters the market and the
trend reverses.
Who’s the greatest fool today? Sub-prime CDO buyers? Google shareholders? We might as well be looking for the biggest oaf on television; there are too many candidates to choose from. So, we begin by rounding up the usual suspects - central bankers and contemporary art buyers. The former have a long record; the latter, a flamboyant one.
Probably no central bankers are more prudent than the Swiss. At the end of the ’90s, the Swiss had the third largest gold horde in Europe – after Germany and France. But then, the Swiss central bank lost its head and decided to ‘diversify’ its holdings. The result: it dumped half its bullion – at the worst possible moment. The yodelers sold 1,300 tonnes in the five years between 2000 and 2005. From those sales, the Swiss realized about $14 billion. If they’d just held onto the stuff, it would be worth about $34 billion today – a difference that would be worth about $2,700 to every man, woman and child in Switzerland.
Meanwhile, closer to sea level, but with his head still in the clouds, the UK’s Chancellor of the Exchequer, Gordon Brown, had a similar notion. In 1999, he announced a plan to sell half of kingdom’s gold. In the event, he sold 395 tonnes, at an average price of about $275 per ounce – or, in real terms, the lowest price since the early ’70s. Some sales were recorded at the absolute lowest price - $256 per ounce, which came to be known as the “Brown bottom” of the great bear market in gold, 1980-1999. The Greatest Fool of All had made his move.
This week, the fools bumped into each other…coming and going. The Greatest Fools of yesteryear – the poor fellows who bought Kruggerands in January, 1980 – were finally back to breakeven. Twenty-seven years ago, gold sold for more than $800. It took more than a quarter century; but now it has recovered. And now, the fools who sold Britain’s gold in 2000-2005 are out nearly $7 billion.
What are central banks doing now? Gold sales by the banks are said to be at an 18-year low. When they begin buying gold, we will begin to wonder. When gold purchases by central banks rise to an epic high, it will be time to sell.
Meanwhile, art – like gold - has no real, intrinsic value. But as contrary indicators, art buyers are probably nearly as reliable as central bankers. Wayne Thiebaud’s “Seven Suckers” sold for $4.5 million on Tuesday. It was a “record for the artist,” said the International Herald Tribune. Above the caption is the photo…of, well, seven suckers. No, not a photo of Gordon Brown and his colleagues; it is a still life of silly little candy lolly-pops. The piece was part of a collection of dubious works, which passed from the hands of knaves into the hands of fools via Christies in New York earlier this week.
A new record was also reached by John Chamberlain, who crushed some sheet metal in 1960 and called it “Hatband.” The work brought $2.81 million, more than twice the previous record, set earlier this year, for a work by Chamberlain.
Another feature of the collection was a group of what we know in America as “Cigar Store Indians.” For reasons unexplained, shops that sold cigars, in the 19th century, set out a wooden Indian as a marker of their retail trade, similar to the way barbers used a barber pole. The most anyone ever paid for one of these wooden Indians came in 1990, when a buyer bought a 1875 sculpture, “Cigar Store Princess,” for $10,450. But that was before the great credit bubble expanded investors’ wallets and squeezed their brains. This past Tuesday, someone bought one of these wooden Indians for $217,000. Contemporary art has gone up 55% this year alone. Fools rushed in every time the auction houses opened their doors. But the very day that the “Seven Suckers” was sold for $4.5 million, not a single sucker could be found willing to spend more than $6 million for Willem de Kooning’s untitled 1942 “nondescript” painting. It brought only $5.3 million, barely half the upper estimate. Even in the art market, the Greatest Fool may have already come and gone.
Wednesday, January 9, 2008
The setting of standards
We have a huge set of double standards in our country. Some of which is far too political to get into without this blog turning into a pile of political banter, so I will try to keep in on topic...
If cars have to meet energy standards(ableit much too low) then why then don't power companies and their production plants? There are only a few states that have limits and standards limiting the amount of CO2 that they are allowed to spew. In California, a 2007 ruling has virtually excluded and new coal plant construction until clean-coal technology is presented and comes online. This is a great example of politics at work and could become exemplary to the nation, just as the auto emissions have done as well. A carbon emission standard set on the Federal level would be opposed by the corporations and power companies that depend on coal for power. However, these type of rules create a mandate that new technologies be invented and explored. This is a blessing for our economy in the long run as competition is a driving force for our capitalistic economy. It would spur large investment into new arenas thus changing the playing field as we know it today. This would be good as the field is getting old, stale, and unmanageable. The new investment could create new interest and technology for us to find better and much more palatable solutions for our future. It would set examples to the rest of the world that we are on the team with them to help create a better world by setting an example.
There are over 150 new coal powered plants set for construction in the upcoming decade so the momentum to the problem is there. Will we be able to wean ourselves away without change in our current policies or strategies? I think not.
If cars have to meet energy standards(ableit much too low) then why then don't power companies and their production plants? There are only a few states that have limits and standards limiting the amount of CO2 that they are allowed to spew. In California, a 2007 ruling has virtually excluded and new coal plant construction until clean-coal technology is presented and comes online. This is a great example of politics at work and could become exemplary to the nation, just as the auto emissions have done as well. A carbon emission standard set on the Federal level would be opposed by the corporations and power companies that depend on coal for power. However, these type of rules create a mandate that new technologies be invented and explored. This is a blessing for our economy in the long run as competition is a driving force for our capitalistic economy. It would spur large investment into new arenas thus changing the playing field as we know it today. This would be good as the field is getting old, stale, and unmanageable. The new investment could create new interest and technology for us to find better and much more palatable solutions for our future. It would set examples to the rest of the world that we are on the team with them to help create a better world by setting an example.
There are over 150 new coal powered plants set for construction in the upcoming decade so the momentum to the problem is there. Will we be able to wean ourselves away without change in our current policies or strategies? I think not.
Monday, January 7, 2008
Greenland is melting...
Chicken little does not need to look up, although he may need a snorkel and fins here shortly. Shortly is a relative term, but it is a term that means it is coming...
I found a link for you to look at that discusses the receding ice in Greenland. Funny how Greenland is covered in ice and Iceland has a lot of green land on it...
This article from the NY times discusses the global warming issues in Greenland and the melting icecaps. I will add that this is not to say that man is the cause, however, at this time based on our use of fossil fuels we are certainly not the solution. Our neglect to pay attention to this matter and to begin to zero out our carbon emissions as our global population continues to increase, and our demand for energy, we will find ourselves accelerating the issue if we do not find other cleaner fuels to maintain our lifestyles globally.
Greenland, Ice and Instability is a powerful article on the realities of what is happening to our planet today. There are scientists that say that man is not the cause of this, which could be true, but again, we are certainly not trying to become a solution at this time either. Perhaps a bit more conscious work towards accepting this fact and we might find it in ourselves to create some change.
I found a link for you to look at that discusses the receding ice in Greenland. Funny how Greenland is covered in ice and Iceland has a lot of green land on it...
This article from the NY times discusses the global warming issues in Greenland and the melting icecaps. I will add that this is not to say that man is the cause, however, at this time based on our use of fossil fuels we are certainly not the solution. Our neglect to pay attention to this matter and to begin to zero out our carbon emissions as our global population continues to increase, and our demand for energy, we will find ourselves accelerating the issue if we do not find other cleaner fuels to maintain our lifestyles globally.
Greenland, Ice and Instability is a powerful article on the realities of what is happening to our planet today. There are scientists that say that man is not the cause of this, which could be true, but again, we are certainly not trying to become a solution at this time either. Perhaps a bit more conscious work towards accepting this fact and we might find it in ourselves to create some change.
Saturday, January 5, 2008
Doing a green day...
I know of a wonderful blog that has some great information on many topics. Today, this topic was on Green Days and what we can do to maintain a greener lifestyle. Please visit this blog by going to Michelle Moquin's "A Day in the Life"
Thursday, January 3, 2008
the power of the sun
We have been working hard on building a better, more efficient home for our clients. Through our projects in Texas and California we have made great strides in creating what is becoming the most efficient home product you will be able to find. We continue our quest with using passive solar in our design concepts.
If you are building a new home consider these thoughts as you lay out your home on the lot. Locate the suns position as it goes over your land throughout the year. Try then to situate your home to accept as much of these thermal sun rays it can into your home through the placement and sizing of your windows, eves, and awnings as well as your roof line for panel installations. You can go a step further by adding recirculating water lines into you slab flooring that can be heated by the sun and recirculated throughout to aid in your radiant floor heating. As radiant heating is much more healthy and efficient than forced air it is something we should all look into if we are building a new home.
If you are building a new home consider these thoughts as you lay out your home on the lot. Locate the suns position as it goes over your land throughout the year. Try then to situate your home to accept as much of these thermal sun rays it can into your home through the placement and sizing of your windows, eves, and awnings as well as your roof line for panel installations. You can go a step further by adding recirculating water lines into you slab flooring that can be heated by the sun and recirculated throughout to aid in your radiant floor heating. As radiant heating is much more healthy and efficient than forced air it is something we should all look into if we are building a new home.
Tuesday, January 1, 2008
Food for fuel...
And I don't mean human fuel. I always call a meal, fuel, as I see it as that my body tells me I am needing energy, so I must "fuel" up.
As the corn belt of the mid-west has begun to reap the benefits of the government's policies on Ethanol production, are these the best policies for carbon emissions? Ethanol is an alternative fuel that some think will be able to wean America off of their oil habit. In doing so it could prevent millions of tons of carbon emissions. The Dept of Energy has doubled its commitment to funding the research to biofuels, those being any non-petroleum based fuel source. These include corn, soybean, switchgrass, municipal waste, wind, solar, etc. Nearly half of the 11 billion bushels of corn produced each year is turned into ethanol. Most of the new cars are capable of running on this product with a mixture of 10% ethanol and 90% gasoline. Is this a good thing?
Of the 114 ethanol plants in the United States run off of natural gas and/or coal to run their processing. Then this product must be shipped via trucks as the existing piplines are unable to carry it because it will corrode the iron pipelines. The corn producers growing this product rely on government subsidies as well as the increasing demand for corn as a fuel means that the food product will continue to raise in price at the grocery store. This has nothing to do with the amount of water it takes to create a bushel of corn vs switchgrass, for example, or none for wind and solar, but this is another topic some of which we have covered.
There is such a thing called cellulose ethanol, which contains more energy than corn, but it is more expensive to produce. Researchers are finding that by using innovative enzymes and heating processes they are finding methods to make this more economical.
Geothermal is another process we are liking as we research alternative fuels. This is a very powerful process of energy to which we can capitalize on for the future which is endless just like wind, solar and tidal energies.
HAPPY NEW YEAR to all!
As the corn belt of the mid-west has begun to reap the benefits of the government's policies on Ethanol production, are these the best policies for carbon emissions? Ethanol is an alternative fuel that some think will be able to wean America off of their oil habit. In doing so it could prevent millions of tons of carbon emissions. The Dept of Energy has doubled its commitment to funding the research to biofuels, those being any non-petroleum based fuel source. These include corn, soybean, switchgrass, municipal waste, wind, solar, etc. Nearly half of the 11 billion bushels of corn produced each year is turned into ethanol. Most of the new cars are capable of running on this product with a mixture of 10% ethanol and 90% gasoline. Is this a good thing?
Of the 114 ethanol plants in the United States run off of natural gas and/or coal to run their processing. Then this product must be shipped via trucks as the existing piplines are unable to carry it because it will corrode the iron pipelines. The corn producers growing this product rely on government subsidies as well as the increasing demand for corn as a fuel means that the food product will continue to raise in price at the grocery store. This has nothing to do with the amount of water it takes to create a bushel of corn vs switchgrass, for example, or none for wind and solar, but this is another topic some of which we have covered.
There is such a thing called cellulose ethanol, which contains more energy than corn, but it is more expensive to produce. Researchers are finding that by using innovative enzymes and heating processes they are finding methods to make this more economical.
Geothermal is another process we are liking as we research alternative fuels. This is a very powerful process of energy to which we can capitalize on for the future which is endless just like wind, solar and tidal energies.
HAPPY NEW YEAR to all!
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