Where in the world can this be happening? Only one place…China of course. So far, this one country where the supply of millionaires outstrip the supply of private banks.
Imagine having an average of 70 millionaires (based on at least $US 1M) being created per day. Most foreign private banks face the tripple whammy of:
1) Not having enough qualified wealth managers on staff,
2) Not having enough offices to service the numbers of current and new millionaires,
3) Not having enough mature and varied products to offer their clients.
The exchange rates and system in China is still highly regulated and restrictive to allow too many products on offer compared to more mature markets like Singapore, Japan and Hong Kong.
Well, this might not be too bad a problem as the private banking wealth management industry is really only a fledgling industry in China. Growing pains are a part of growth. But, as in all things business in China, growth and new industries are met with caution by the authorities. Which is not necessarily a bad thing. Afterall, just look at the tremendous progress that China has already experienced, with a good spread of the numbers of millionaires.
China is likely to surpass Japan (with 1.4 million HNWI worth US $3.5Trillion) by 2015 predicts Johnson Chng of Bain and Co. Currently China has 320,000 millionaires worth US $ 1.6 Trillion and growing fast.
The bank failures are now at 95 for the year which includes three of the largest and most troubled; Guaranty Bank in Austin, Colonial Bank in Birmingham and Corus in Chicago.
A couple of Fridays ago, the FDIC shut down two more banks resulting in billions of dollars in losses.
US Bank Failures-FDIC
Expect bank failures to top 1,000 over the next 18 months, the majority being Community Banks and Regional Banks. The impact will devastate entire communities. The FDIC is running out of money and will soon have to ask for taxpayers funds. In other words, the FDIC needs a bailout to bail you, the bank depositor out…This is only the second time in the 75 year history of the FDIC that it had to do so.
Here are 7 issues that may put you into a state of deep concern.
* Personal bankruptcies may hit a record 1.4 million for 2009.
* Business bankruptcies are 250% over their previous high and still rising.
* Unemployment is at 9.7, but expected to reach 10% but the Department of Labor says real unemployment rate is 16% right now.
* Credit Card charge-offs are at 10.5% and Moody’s predicts it to reach 12%.
* Mortgage foreclosures and “walk-aways” continue at record pace.
* The Commercial Real Estate market could soon implode the same way “sub-prime residential real estate” did two years ago.
Am I scaring you yet? Here’s another one…
* Even with the $2 trillion rise in American household wealth since its recent lowest point, household wealth has lost 5 years of gains.
Consider the economic impact of this implosion. Every aspect of American life will be adversely affected; each economic category mentioned above will result in increased bank failures, increased personal and business bankruptcies, higher unemployment, higher credit card and mortgage default, not to mention the probable massive commercial real estate failures.
If anyone thinks there is going to be a full scale economic recovery across the board should have a big re-strategizing of their assets and should be hedging their bets. It’s obvious there are more brutality yet to come in the economy. If any recovery comes, it will be sporadic. Many areas will fail while some new ones will make some recovery. Getting out of this recession will not be a piece of cake. The facts above are brutal.
If the FDIC were to headline an announcement tomorrow that Bank Failures will reach 1,000 by 2010, what would happen to the world’s financial system?
Find Out More About Bill Bartmann. Click Here.
As America struggles to mend its banking industry, the focus seem to be only on the biggest 100. What of the other smaller 8,300? Yes, the US has 8,400 banks (that’s down from 12,000+ in the mid 1980’s) many of which are not profitable.
84 banks have already failed to date. Bill Bartmann, maintains on Fox that up to 1,000 banks may be lost by the year 2010. Speculation? Or Stunning fact?
Banks, private and public are by law obligated to publish quarterly financial reports. This second quarter reports indicate 28% are unprofitable. 90 % of these unprofitable banks were also unprofitable over the 1 quarter of the year. More troubling is that 75% of that 28% had 3 consecutive unprofitable quarters. That’s unusually poor performance and very troubling.
Bill cites a number of valid reasons for such failures:
- Growing unemployment: less employment mean people buy fewer things which means stores close and banks lose their commercial mortgages and loans.
- Credit card charge offs are at 10.5% now: the highest rate of defaulted credit card debts being charged off now.
- The Commercial real estate bubble is starting to deflate. Most of these will be in the smaller towns and cities.
- There are not enough healthy banks to bail out the bad ones now.
- Most smaller commercial properties are held or have loans from the smaller banks. These are the ones most at risk.
- the FDIC for the second time is running out of money. Therefore, don’t expect any more bailouts.
“Banks should not be bailed out the way they have been with the large banks recently.” ” They should let bad debts be lost and save the good ones”…
Tip…the FDIC insures your deposits up to $250k per account. Therefore, if you have more money than that in 1 account, please split them until you are just below that FDIC threshold. That way, you will remain insured. Current protection is better than no protection.
Why doesn’t the FDIC warn the public? Well, if they did, it would mean a very downward looking report and that does not serve the FDIC’s agenda very well if the whole world were to really feel the pressure to downgrade all US financial holdings. Now, imagine what a cascade of failures would occur?
Can you profit from this?
Yes, Bill Bartmann is also the acknowledged expert at buying debts and recollecting them at huge discounts. In fact, he built a multi-dollar empire with 3,900 employees. The US Government will actually help fund you to buy off bad loans from banks for pennies on the dollar. That, if you know how, becomes your meal ticket. Bill is willing to show you how. To find out more,CLICK HERE.
To remember how Freedom 55 came about, I’ll need to dig deep into the recesses of my memory…but I do remember the dream…
When I was a boy it was such a huge dream for many of my “elders” to retire at the newly announced retirement age of 55 years. The government had introduced a pension plan that would take care of all retirees for the rest of their lives after retirement. Back then, it was considered great fortune to be able to exceed the magic 60 years of age. But they seem to forget they can’t take that now huge retirement benefit with them. Nor can they do so with a large bank account. Many of my grand uncles, family friends and people of importance seem to fill the cemetary with regularity just after their “retirement”.
Was this a well planned government conspiracy? Or perhaps statistics made it plain that retirement payouts would end then and would still leave most of their forced savings within the “system”? However, in later years, the government offered to let people take early retirement if they could reasonably afford to do so. Which means, the early retirement dream could become reality.
Freedom 55 in reality is really a dream. An innovative campaign by Canada’s London Life became one of the most successful marketing campaigns. Regardless of economic times, warnings from financial “experts” and so forth, achieving financial freedom at a certain age with a fixed achievable plan became very well received. In fact, when you sell the dream people will buy that very dream with the caveats and all attached.
Planning Shortfall
Financial Freedom at any age
Well and good, but not too many people it appears, can and will ever achieve that financial freedom status for a variety of reasons. Many of these savings systems will never be able to save enough for the insured and invested person on most financial plans – simply because of a number of factors:
* Inflation – often, the “planner” only shows an average linear inflationary rate. What’s forgotten is the actual cost of living like housing costs.
* Stock market crashes can decimate blue chip companies and your entire investment.
* Taxes – special taxes are never foreseen…, also taxes can be variable even during your retirement and when you withdraw that “retirement fund”.
* Lifestyle requirements change – are you still working, do you need special medical treatment or do you travel often?
Unpredictable Future Made Predictable
In short, the future is unpredictable. However, what can be made more predictable is to plan for the long term but take action over the near and medium term. This strategy allows one to make specific changes and adjustments to achieve your life goals.
Many health and wealth building home based business experts do constantly remind us all that achieving financial freedom should be a goal from any age. I agree. In one fell swoop, embracing this lifestyle concept suddenly releases you to strive for what your goals in life truly are. You can then see your way to have your own small business, your own big business, your investment/income goals, work till you drop from old age, bum around, go fishing, live a life of little need in a fishing village, or live with princes and princesses of excess.
Bankers and financial planners will often tell you that the longer term investments are the most subject to volatility. That is why longer term bank loans tend to cost more. Similarly, longer term deposits tend to pay more. The cost of money gets more unpredictable the further in the future it becomes. Likewise your future investment planning.
Really long term goals is really better left as a philosophical direction in life. The actual action must be taken here and now, over the forseeable future. For example, you invest in a stock that came very well reccommended. Remember that stocks tend to have a very cyclical life over a very few years or even months. When do you buy it? Do you buy an apparently invincible blue chip stock like General Motors to hold over a very long period in the expectation it will yield you a very nice annual income, or perhaps as the last financial crash had demonstrated, to lose it all. Or perhaps your strategy would be to follow closely the reccommendations of winners and work the win to loss ratios in your own favour?
What if I told you one of the best performing stocks in China is the China Green Agriculture company – would you you be so inclined to invest in a foreign country? Compare it’s vital statistics to any North American stock and you’ll find it to be a fantastic investment over the next couple of years – but will you even go for it? Or will you be far more daring and break with the crowd, brave the nay sayers, family and friends, the banks who would put you down and strike out on your own business? Most people start small in their own home based businesses.
Now, how does one overcome the fear of such indecisions? The answer has always been missing from our schools – the true financial education where you learn how to function in everyday life financially. One is never taught in school on “How to make money independently”. Instead one is taught to become automotons of labour for the huge corporate entities and the government. Thus when some huge corporation sells you a dream like Freedom 55, a ready made market is already there.
Freedom is yours. Educate Yourself
Educate Yourself
Educating yourself makes for the best philosophical change you can make. Good knowledge can free you by offering you the directions and know how you can take in order that your life can be directed the way far closer to your desires. Now, this direction may not be for everyone simply because of the fear of the unknown. Knowledge is the great mitigator – offering you light instead of the darkness of dissatisfaction you cower from in the face of fear.
Check through the stories of some of the most successful people in history. In fact, find successful people in your midst. You will find that over 99% of them will tell you a stroy of trials and stories of failures along with success. In the final assessment, you will find that people like you and I, got there simply because they tried and never gave up their dream of their very own Freedom at any Age!
Of course, with all those success stories come failures. But understand, they will tell you, that the apparent failures are really just a learning curve; some more steeply inclined than others. There are a huge variety of winning ways. Some will find it in internet marketing, others in the stock market, you’ll find business Mums competing with corporate Dads, politicians, importers and exporters, investors of all shapes and sizes. You’ll find this is the best form private wealth management there is. You do so at your own direction.
One common thing that they all have also, is their desire to learn to become the success that they have become. It is a given that they all become experts in what they do. That is why they make the bucks and are listened to when they speak out. Call them Gurus. Call them Mavens. But listen to these experts. And educate yourself. Then only then, when you strike out on your own path can you be assured of your very own Freedom 25 to 105. What is your favourite age for freedom?
Canada’s inflation is below zero for the first time in 15 years to minus 0.3%.
The Bank of Canada core inflation rate stands at 1.9% in June ‘09. It measures the underlying pressure on prices and excludes volatile items such as energy and fresh fruit. This is near the central bank’s desired 2.0% target.
The last time Canada experienced a negative annual inflation reading was in November 1994, after the government slashed tobacco taxes in an effort to halt a burgeoning illegal cross-border traffic in cigarettes.
A fall in the Inflation index is not necessarily a good thing if Canada falls into a deflationary period. Falling prices can feed into itself and cause a downward spiral in economic performance. However, the figures do suggest that the core inflarion rate as measured by the Bank of Canada is still within the target of 2%.
The Leading Causes of the Index Fall
- Gas and energy cost an average of 24.3% less than last year.
- The cost of purchasing a passenger vehicle was also lower in June, falling 5.2 per cent from last year (up from 6.6 per cent decline registered in May and 8.3 per cent fall in April).
- Cost of Shelter slid 0.8 per cent due to lower prices for natural gas and fuel oil, which were 23.7 per cent and 40.6 per cent lower than last year respectively.
- Lower home prices and mortgage interest rates.
- Clothing and footwear fell 3.6 per cent with women’s clothing was down 6.1 per cent.
Index Risers
+ Food was 5.5 per cent higher than a year ago.
+ Health and personal care.
+ Rrecreation, education and reading.
+ Alcohol and tobacco rose.
Original article from Canadian Press /CP 24. Read more here.
A quarter of a century ago $1 Million Dollars would have gotten you alot more than today simply because of that dreaded word – INFLATION!
But the problem is, most people will not notice inflation eating away at your money. Why?
- it’s sneaky and creeps most of the time,
- department stores have sales which make people forget about value for money,
- marketing ads reduce our perception to assuming profit is what causes inflation,
- short memory – people live only for today and forgot yesterday,
- banks’ lending assures inflationary pressures on money,
- stock market structuring encourages inflation through upward price mobility.
So, I could go on and so can you…if we all paid attention to it. As a comparison, I thought I’d create a what a million bucks could have bought 25 years ago versus what it would cost despite the deflationary recession today.
1) A semi-detached bungalow in one of Singapore’s prime districts will cost you over $5-6 million today (but in truth, you won’t likely find one for sale).
2) A retirement. Living on the expected interest of about $100k after taxes can get you a decent lifestyle with annual travel. You’ll need about $6 million or more to achieve that today. (Of course, some money management geniuses will tell you different until a Madoc like situation of a wall street melt down occurs…).
3) The million will buy a Rolls Royce, two Ferraris, a Land Rover, a Mercedes 600, a chauffeur and perhaps a Go-Kart for Junior all in a garage. Today I’ll settle for a Ferarri and a BMW in my garage. (Yes, garages cost money too.)
4) Downpayment for a small private jet in 1984. Today, downpayment for a used small private jet.
5) Send 5 kids to the top world name Ivy League University including room, board, pocket money and annual trips. Today, you send them through that University and they pay their way.
6) A 2 bedroomed Manhattan condo suite (offered to me then). Can’t find it – it’s part of a giant development with multimillion-dollar suites even smaller than the one 25 years ago.
Why is understanding inflation necessary? In time, inflation eats away at the value of our money. If you’ve been planning your retirement based on having $1 million, factor in your purchasing power by the time 25 years rolls around.
* Can you still afford to even live a retirement lifestyle?
* And then factor in maintaining the lifestyle you have chosen.
* Will that money be enough to generate the residual income you need?
Bank your money or invest it – a tough choice when you’re not sure.
Invest But Do Your Due Diligence
The majority of people with cash in hand or the ability to lay their hands on cash are not investing heavily. They have preferred to stay on the side lines and earn a pitiful interest in bank savings accounts or simply hanging on to hard currency.
However, the rumblings about the coming recovery is making many wonder about investing more or simply putting their money into a bank and holding more cash.
In tough economic times, cash is king. But most people have the mistaken notion that it means holding onto cash only. What investment experts mean is that when you have cash in tough times, you have the advantage of being able to purchase the best investment at the best price available – you have the options. Many good bargains will be available during these hard times.
In many opinions, the economy is indeed showing signs of renewed energy worldwide.
This is not to say that there aren’t negative news elsewhere, but, the number of positive fundamentals are starting to come with strength and regularity.
Perhaps it’s time to do your due diligence, get your idle cash in the bank to work for you. And get that best bargain for your buck.
Swiss Authorities Will Seize UBS Client Data and Protect them from US Prosecutors if required.
The Swiss government said it will take a tough stance to protect the UBS Private Bank client data and was prepared to seize them rather than allow the bank to hand it over to the United States. Switzerland distinguishes between tax fraud which is criminal and unacceptable but does not consider tax avoidance to be a crime.
U.B.S. the Swiss Private Bank Wealth Management giant has refused a demand from U.S. authorities that it turn over the names of 52,000 American clients rather than to break Swiss Law. UBS is really caught between a rock and a damn hard place. Which law should it obey? This is a Swiss company that operates in the United States. Which law should it obey?
On the one hand, the Swiss Banking Laws does not allow anyof their banks or banking officials to hand over information in what is considered “fishing expeditions” – meaning there must be real proof that the information of the principals asked for are not just under suspicion of tax fraud but there must be some substantial evidence of said fraud. To do so would be illegal under Swiss banking secrecy laws and would open the banks or bank officials to prosecution back at home.
The the other hard place…the U.S. Justice Department in February sued U.B.S., saying it suspected the bank of helping wealthy Americans hide an estimated $15billion dollars in secret offshore accounts. And UBS are under current prosecution here, where they operate.
However, there appears to be some sort of diplomatic goings on to come to a reasonable conclusion. Perhaps UBS has already prepared to pay a fine to the US Government the equivalent of the taxes that would have been due them? Just a speculation.
Here are some statements by the people in the know recently:
U.B.S. spokesman Serge Steiner in Zurich, “… it has always been U.B.S.’s position that divulging the client data would be a breach of Swiss law…the issue should be discussed by the two friendly governments…we(UBS) are always open to an appropriate solution.’’
Nicolas Michellod, an analyst of financial research firm Celentan in Zurich, “Eventually, I’m sure we’ll see U.B.S. paying a fine.”
U.B.S. last month raised about $3.5 billion in new capital and other speculation has it that UBS could have already been preparing for the eventuality of paying a huge fine to the US which coincidentally would amount close to the new capital raised.
The Private Wealth Management business has lately become the New Power in the financial industry.
The world banking giants like AIG of just over a year ago have taken monumental hits and required government bailouts. Then came the UBS debacle which drew international attention and the ire of the US governmentand the G20 Summit in London – or were they simply a victim, becoming a target of their own tremendous success and huge size?
It all happened as a result of the huge multi-trillion dollar US financial melt-down that led to the rest of the world following suit.
Would it be surprising to say that Private Banking and their core business of Private Wealth Management has rebounded simply because people are looking for the real care that is simply not available in most institutions?
Fast forward today, go into the streets of the financial world and you’ll find just about every single financial institution or other institutions or brokerage getting in on this huge demand for reliable Private Wealth Management.
This business, once the domain of exclusivity has become almost commonplace. In fact, wasn’t this what banks were supposed to be from times of yore?
Let’s take a quick look at who is up and coming and the supporting industry coming to the forefront of private wealth management in USA, where the devastation began.
* Bank of America has now surpassed UBS in the Private Banking Business.
* Atlantic Trust – a “smaller” Private Wealth Management Trust firm is pushing to the forefront and getting bigger.
Private Banking in Monaco is still a Unique experience.
The Private Banking industry in Monaco is very much like no other. Every single one of the banks have their employees trained in catering to your every little need. Transforming your Private Banking experience into one of a friendly visit to a “Bank Spa” if there ever was such a term (not my words but that of a foreign national mentioned quite happily).
Of course, they have the necessary financial experts managing your wealth of deposits for you.
Despite the latest round of G20 “enforcement” (read as France’s determination to peg back their own nationals using the Monaco Private Banking laws and not pay French taxes), the Banking establishment has literally transformed itself. Monaco is officially no longer named as a Tax Haven.
But they have ratcheted up the Banking Experience up several notches surpassing I feel, even the scrupilous and excellent Swiss Banks. Eat your heart out retail bankers!
They cater bank account holders and keep their service to a very high standard. But their main Banking business caters primarily to very high net-worth individuals – VHNWI, especially foreign principals and corporations.
Here’s a little more information about doing business and banking in Monaco. Read more below…
With 40 banking establishments, 70 windows, 3 representative offices and 7 financial companies, the banking sector constitutes a large part of Monaco’s financial activity.
Deposits into Monegasque accounts exceed 75 billion French francs and half come from non-residents.
The Monegasque government actively combats money-laundering and numbered bank accounts are illegal. However, bank confidentiality is one of the main principals of Monegasque banking.
Monegasque banking establishments are not only capable of managing international assets, but also offer comprehensive services to companies in the Principality (including helping companies to obtain financial ressources from a special government fund).
The lifestyle, security, political stability and the fiscal advantages have made Monaco an attractive location for exacting investors.
For more information on the banking sector and its services, please consult the Banks directory of Monaco. Read more below…
Association Monégasque des Activités Financières (AMAF), Monaco’s banking association, was founded by Sovereign Order more than 50 years ago. Its mission is to :
Act as the professional body for authorized institutions conducting banking or financial activities in the Principality.
Represent the Monegasque banking industry, particularly in relations with public authorities.
Promote a sound development of Monaco’s banking sector.
With 70 members, including banks, finance and portfolio management companies, the association federates all of the market’s financial institutions.
The Bank of Canada core inflation rate stands at 1.9% in June ‘09. It measures the underlying pressure on prices and excludes volatile items such as energy and fresh fruit. This is near the central bank’s desired 2.0% target.
The world banking giants like 
The Private Banking industry in Monaco is very much like no other. Every single one of the banks have their employees trained in catering to your every little need. Transforming your Private Banking experience into one of a friendly visit to a “Bank Spa” if there ever was such a term (not my words but that of a foreign national mentioned quite happily).
