Monday, December 10, 2012

Capitalism and Whole Life Insurance - Part 1

I have been in the financial service business for over 20 years and have developed some strong bias in direction of certain products or ideas. Much of what I'll express in this article is what I have realized from reading, listening, experiencing and observing, dating back to my college years when I studied Constitutional History.

All of those years mixed with the tragic loss of two of my dear friends who were professional peers, have prompted me to put in writing this article. I write it more to put my ideas to paper. If it has worth to anybody else, then I am extra enriched.

Although I would not blame them for any of the content material here I would dedicate this text to those two associates: Ray Hooper, whom I loved like a son, who's cheerful way of living brightened my life, who understood that the importance of bringing worth to someone's life because they had brought value to yours was the measure of loyalty and is what provides heart to capitalism. And to Les McGuire, who became like a son as well as a teacher, who drove me crazy, by no means letting me relax mentally. For the remainder of my life I'll continually be reading more and asking why because Les challenged me to think extra clearly.

Both Ray and Les have taught us in both life and death the actual meaning of Human Life Value.

Though I take full duty for this text I willingly give credit to all those who's quotes I have used. I've made an attempt to put in quotations the direct quotes I've used and provide credit to each here rather than in footnotes. I would encourage the reader to take the time to read the sources directly. If I have used a single word or phrase that seems as if it comes from another source, it most likely did, and so I give credit to so many listed and not listed for helping me, over the years, in formulating my thinking. However, I repeat, I take full responsibility for the thoughts as compiled here.

Credit to Robert Castiglione LEAP the Key to Financial Success
Thomas J. Dilorenzo How Capitalism Saved America (lots of my quotes are taken from his book)
Les McGuire, Thomas Jefferson, John Looke, Murry Rothband, Producer
Ludwig Von Mises, S.S. Huebner, Matt Randall.

I have been in the Life Insurance coverage industry long enough to have experienced both ridicule and admiration for helping clients buy life insurance. In those same years I have watched my own peers scramble to search out the words to explain what they do for a living rather than say they sell life insurance.

I've been involved long enough to have seen my own clients use their life insurance for its intended purpose. I have seen young and older clients pass away leaving the death benefit to their spouses. I've seen others borrow their cash value to send children to college, or purchase a car or make other investments. I've seen others use their policies to secure business loans or buy equipment. I've additionally seen others live lives of higher abundance figuring out they were able to spend their other assets because they'd purchased life insurance. To use the words of Les McGuire; I've seen life insurance used as a tool of production.'

I do not mean to imply by this discussion that life insurance is by some means part of our constitutional type of government, or that the product itself is in some way one of the pillars of the constitution. Nonetheless, I do intend to recommend that one of the pillars of the constitution is Capitalism. And that capitalism gives us the free agency to pursue happiness' by freely laboring to secure to ourselves the rewards of that production, that are property in all its forms. I'd firmly suggest that Permanent Life Insurance coverage is among the greatest financial tools out there to us to assist in that pursuit of happiness briefly it's a instrument of capitalism.

Sunday, December 9, 2012

Banking and Finance Regulations of the Kingdom of Thailand

The banking industry in Thailand forms an essential segment of the nation's financial services industry. In other words, banking sector in Thailand is well-established. The history of Thai banking dates back to 1865, when the Hong Kong and Shanghai Bank appointed its agents in Bangkok. Accordingly, the HSBC established a branch in Bangkok, thereby becoming the first bank to open a branch in the country.

Following the establishment of HSBC branch, many European as well as business banks opened their branches. As a result, foreign banks became the dominant players in the nation's banking industry. In order to counter the supremacy of foreign banks, Siam Commercial Bank - the first Thai bank - was established in 1906. Later, more Thai banks were opened to trade with Asian countries, as a result of the Second World War, when majority of the foreign banks were forced closed.

After the world war, the Thai government introduced a protective policy in order to promote the growth of Thai banks in the country, which included limiting the operation of foreign banks to one branch office. As a result, foreign banks became less dominant players in the banking sector of Thailand. Since 1960, many innovative economic as well as social development plans have been introduced in the country, which in turn has led to rapid expansion of banking sector in Thailand's provinces, resulting in banks numbering more than 3000 throughout the country.

Thailand's modern banking system is made up of a variety of financial institutions including commercial banks, special purposes bank, and Government Savings Bank. Commercial banks are perhaps the most popular among the banks in Thailand. Commercial banks include both local and foreign banking institutions.

Being the biggest financial institutions in the country, Thai commercial banks render an array of services including acceptance of time savings as well as demand deposits, lending money via overdrafts, discounting of bills, and leasing. Their activities also cover fee-based services like custodian services, syndication of loans, feasibility studies, and consultations for mergers as well as acquisitions. Apart from these, in some instances, these banks issue negotiable instruments of deposit, apart from underwriting and issuing of debt instruments.

Commercial banks in Thailand, consisting of branches as well as representative offices of foreign banks, are functioned in accordance with the Thai laws and regulations formulated by the Ministry of Finance (MOF) and the Bank of Thailand (BOI.) Formed in 1875 by the Ministry of Thailand, the Ministry of Finance initially acted as an agency of the government to administer national finance, collect revenues, and disburse royal funds.

In 1933, it got its present name and status as a result of the passing of the Civil Service Reform Act. With eight departments and 16 state enterprises under its control, MOF's major duties include supervision of matters in connection with operations of Government monopolies, property, and treasury. Additionally, it has power to provide loan guarantees for financial institutions, government agencies, and state enterprises.

Bank of Thailand started its operation in accordance with the formulation of the Bank of Thailand Act, on April 28, 1942. Among its duties are devising of monetary policy and supervision of financial institutions.

Now we will discuss banking regulation with regard to bank licensing. As per the Commercial Bank Act, first of all an application, containing particulars as entailed by the Ministry, must be filed with the Ministry of Finance in order to set up a commercial bank in Thailand. On the approval as well as the obtaining of a license from the Ministry, a commercial bank is opened as a limited public company.

However, a foreign bank has to comply with regulations formulated by the Thai government in order to open a branch in the country, such as the money should be brought from its head office. When comes to investment, Thai government permits foreign banks to hold 100% shareholding for up to a period of 10 years. After a period of 10 years, they are not required to divest their shares. But, in case, if they hold more than 49 percent of shares sold, they are not allowed to acquire additional shares.

In addition, the Commercial Banking Act has put forward certain laws and regulations for the maintenance of capital funds and reserves. As such, the commercial banks are required to maintain certain amount and types of the assets in the country.

Special purposes banks are state-owned financial institution whose activities are administered by the Thai government. However, they deal with only specific clients or projects. Included in the special purpose banks are the Bank for Agriculture and Agricultural Cooperatives, the Government Housing Bank, and the Government Savings Bank. When comes to the Government Savings Bank, it consists of an extensive network of branches throughout the nations.

Banking and financial sectors in Thailand are further categorized into: Asset Management Companies, Credit Froncier Companies, Finance and Securities Companies, and International Banking Facilities (IBF.)

Friday, December 7, 2012

How Does Leverage and Debt Impact Returns on Residential Real Estate?

As a speculative investment, residential real estate has the potential to make or lose vast sums of money due to the impact of financial leverage (debt). Houses are typically leveraged at 80% of their value. During the Great Housing Bubble, this leverage was often provided at 100% by various lenders.

Leverage is a powerful ally when prices increase, but leverage works just as strongly against the speculator when prices decrease. For example, if a house is leveraged 80% and it increases in value 5% in one year, the return to the investor is actually 25% due to the 5 times multiplier created by leverage.

With the effect of leverage, speculation on housing can far exceed any competing investment strategy. However, the inverse is also true. If a house is leveraged 80% and it decreases in value 5% in one year, the loss to the investor is 25% of her downpayment, not just the 5% the house declined in value. Leverage magnifies both the return and the risk of any speculative venture.

One of the worst mistakes lenders made during the Great Housing Bubble was to allow 100% financing and negative amortization loans. This was a boon for speculators because it allowed them to participate in the market without any of their own capital and it allowed them to hold the speculative assets with a minimal debt service expense. Plus, there was the implicit idea that they would simply default if the deal did not go in their favor (which of course many did).

Combine these facts with the near elimination of loan underwriting standards allowing anyone to participate, and the conditions were perfect for rampant speculation, a wild increase in prices and so much speculative demand that many new and existing home purchases would remain vacant.

Leverage is a tool. It magnifies the return on investment in both directions. When prices are steadily rising, people want to use as much debt as possible to obtain the asset in question. When prices drop, heavily leveraged speculators get completely wiped out.

Wednesday, December 5, 2012

Real Estate and Global Warming Facts

The number 1 area that will see a huge increase in real estate value due to global warming

Adam: Hi, This is Adam, here with Steve Soreno, author of the Global Warming Survival Bible.
We've covered a lot about safety and survival. Are there positive effects from global warming?

Steve: Yes, definitely. Anything bad has a silver lining. In the case of global warming, that silver lining can be substantial. As an example out of the multitude of possibilities, there will be benefits to the real estate value in some areas of the world, or even areas within some countries or very small specific regions. And I'm saying that because an increased valuation will be caused by two things: for one, some areas will in fact benefit directly from global warming and that will have a positive effect to real estate in these specific areas. Secondly, some areas may not benefit directly but the fact that some neighboring regions will suffer more from global warming will make these places be perceived as an increased value. Broad examples of places that will benefit from global warming are: parts of Canada, Norway, Sweden and other places as well.

Adam: Do you have an example?

Steve: Sure, as an example, Northern parts of some of the Canadian provinces will see increases in real estate value of 4-5-6 hundred percent in the next 10-20-30 years because these places will have a huge influx of people in the coming years. And that will happen because a lot of people from all over the world will want to escape drastic climate changes in their own countries and will migrate to Canada. Why they'll want to migrate there? As an example northern Ontario has more lakes and fresh water than any other place in the world, its northern parts will warm up to become good for agriculture, and it has plenty of uninhabited space that is extremely affordable now.

And this is just an example, but there will be other positive effects from global warming that people can make the most of. However, as with anything else, timing is crucial.

Adam: Awesome stuff, Steve. If you'd like to learn more about what you can do to prepare for future changes visit You can also get the rest of the videos in the series plus two chapters from Steve's international book release.

Saturday, December 1, 2012

Trend Of Car Leasing Increasing Day By Day

The trend of leasing cars has been increasing amongst various people for personal as well as business purposes. And it is not limited to the state or national boundaries, as this is applicable during the times when we are in the same town or travel out of the state, province or even country. I would also suggest you to go for the right sized vehicle, if you are looking out for cheap car leasing. It is worthless to look for the most expensive cars for one person or two, as it becomes expensive. So, check out for the ideal vehicle if cheap car leasing is the main objective.

Spending a lot of money and buying cars is defiantly not a wise decision as by leasing a car one can easily satisfy his/her personal and business commutation. On the other hand the maintenance cost of theses cars is very cheap. The best part about leasing a cheap car is that you not need to spend much of time in maintaining the vehicle as the owner of the company or the company from where you would leave leased your car.

A number of companies are available in the market which offers cheap car leasing. But obvious you can decide on the time line that you need for cheap car leasing and you will get the vehicle based on the availability. Add on to that you can also book your favorite car if you are planning to lease one. However before leasing one you must give a check to various web sites available on the net to search the companies which offers cheap car leasing. This will enable you to compare with one another and in the end you'll find the best car and best company to go with.

Oriel Vehicle Leasing specialize in providing cheap car leasing for business users and private individuals. If you decide to lease a car or van contract hire with us we will provide you with all the information about the choice of contracts available to you so that you get the car/van and contract that fits your needs best.