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I have focused on the part of "being" of the formula "BE-do-have" because without the
appropriate mentality and attitude, you may not be prepared for the major economic changes
that we now face. The "to BE" someone with the skills and the mentality of the right side of the
quad, you will be prepared to recognize the opportunities that arise from these changes and will
be ready to "do", which
I remember a phone call I received from my father rich at the end of 1986:
"Are you in the market for real estate or in the securities market?", he asked.
"In none of the two," I replied. The world is plunged into a financial crisis.
in the tax laws of which depended on many people on the left side of the
a result, I felt that individuals who focused mainly on the left-hand side
of the quadrant were affected and suffered more from the financial point of view as
Transfer of wealth
while the people of the left-hand side were suffering, many people who
were operating in the side "D" and "I" of the quadrant were enriching, thanks to the fact that the
To change the tax code, all the reasons to invest "and cheating with taxes
" were removed for people who simply were acquiring real estate and losing money. In my
opinion, a large part of the wealth was extracted from the side "E" and "A"
of the Quadrant and handed over to the side "D" and "I", exchanging cents for dollars.
risk.
1. The panic was generalized. Because people were
worried about their jobs, the fall in the price of their properties, the crack of the stock market and
the general decline in business, were not able to see the tremendous opportunities that they had
in front of them.
2. They lacked the technical skills required in the right side of the Quadrant. In the same way that
a doctor must have technical skills developed to spend years in school and then by the on-the-job
training, someone in the quadrant "D" and "I" must also possess highly specialized technical skills.
but you can purchase it by four million", most of the people in the left-hand side of the quadrant
had no idea how to raise $4 million to acquire this gift from heaven, nor knew how to distinguish
the good from the bad.
3. They lacked a money-making machine. The majority of people during that period had to work
harder to survive. During this period, the business grew from his home to count with 11 offices
around the world. The system and the people in the system were working hard.
With the extra money and free time, my wife and I were able to spend a lot of time considering
"business"...
There is another proverb that says: "What matters is not what happens in one's life, but the
meaning we give to what happens."The period between 1986 and 1996 was, for some people, the
worst time of their lives. Later in this chapter I will describe in detail how to develop the assets
that helped me to become a free person from the financial point of view. One of the keys to a
successful life and happy is to be flexible enough to react adequately to any change to it; be able
to react and get some good out
Of anything. Unfortunately, the majority of the people have not been equipped to handle the
rapid economic changes that have occurred and continue to occur.
today people have forgotten the Tax Reform Act of 1986. And in addition, your home is an asset
and should be your largest investment." In such a way that these people see the "easy monthly
payments" and become trapped in a position of greater debt. The housing market is flourishing,
people have more income available and interest rates are low. The people are buying bigger
houses
, your mood is euphoric and are making money at the stock market because they want to get rich
quickly and have realized that they need to invest
for your retirement. Again, in my opinion, a large transfer of wealth is about to occur. The
economy changes, but history is repeating itself. Only that does not occur in the same set of
circumstances. The money continues to flow from the left to the right side of the Quadrant. It
always does. Again, we will have another great transfer of wealth from the left to the right side of
the Quadrant.
It will take at least another 12 years before they will heal the emotional scars of those who lost
money... but the wounds will heal, just as other market
closer to its highest point. At that time, people will begin to quote Yogi Berra, the great baseball
player
Is this a conspiracy?
I often hear people, especially on the left side of the Quadrant, which says that there is something
similar to a global conspiracy, which is held together by a few
families ultra rich that control the banks. All of them are playing this great game of money, but
each quadrant is played from a different point of view, with a
The big problem is that people on the left-hand side are not able to see what the people on the
right side are doing, but the people on the right side
many people on the left side of the quadrant, in time to find out what the
people of the right side they know and what they ignore, go to "hunt". These people often want to
blame the rich for their personal financial problems, instead of realizing that
it is often their own lack of information on the money that constitutes the
Every few years a new financial guru that seems to have the new
magic formula for wealth. At the end of the 1970s were the brothers Hunt
lost their money due to that followed the council of the brothers. One of them is
Alan Greenspan, the Chairman of the Board of the Federal Reserve. Only
In each cycle of rise of the economy there are heroes and in each cycle of decline
there are villains. The people always need of witches who burn or conspiracies
when i was about 25 years ago I realized that the game was to be the bank,
but that did not get a job as a banker. I was beginning to train my mind to
See what my eyes could not see.
The encouraged me to learn to understand the game and then that I learned the
game, i could do what i wanted to do with what I had discovered. One of the most important
books
I read was The Wordly Philosophers (The Worldly Philosophers), Robert Heilbroner.
For people who want to operate on the "D" and "I", his book is required reading,
with Adam Smith wrote The Wealth of Nations. The Crest of the Wave (the crest of the wave of
Robert
Prechter and The Great Boom Ahead (The great boom that comes Harry Dent.
after the Tax Reform Act of 1986, there were opportunities everywhere. The
real estate, stock prices and business were available at low prices.
Although it was devastating for many people in the left-hand side of the Quadrant, it was
wonderful for me because I was able to use my skills as a "D" and "I" to take
1. Prices. Real estate prices were so low that the payments of the
mortgages were well below the value of the income of the majority of the
economic point of view... which meant that had low risk. It was like going out to
estate, but not to buy shares in the stock market. I could have bought
portion of the total cost and the house of brokerages lends the rest), but I was not
estate transaction.
4. Cash flow. The income which is not decreased in spite of the fact that real
estate prices had declined. Even though i had a very large debt, i never did harm because
The real estate allowed me to become a bank, something I had always wanted to do since 1974.
Let's say that i find a house that is worth $000 100 and get an
excellent treatment and only 80 000 payment for her (an initial payment of 10 000 and a mortgage
of