What is your NET WORTH?

[peastman]

There is a theory that employees in the corporate world are promoted if they are good at their job. And they keep getting promoted until they are not good at their job.

At this stage their career stagnates and they stay in that position.

The result is a corporation full of people who are no good at their jobs.

I think banks work this way.

 

[Wunderbar]

Yep. It sucks. You learn how to be a good worker, not a smart one

 

[dan c]

There is a theory that employees in the corporate world are promoted if they are good at their job. And they keep getting promoted until they are not good at their job.

At this stage their career stagnates and they stay in that position.

The result is a corporation full of people who are no good at their jobs.

I think banks work this way.

This is the Peter Principle, where in a hierarchy, everyone gets promoted to their level of incompetence.

 

[Ed Barton]

This is the Peter Principle, where in a hierarchy, everyone gets promoted to their level of incompetence.

i like the public service model, a friend explained to me. virtually no one gets sacked so to get rid of an incompetent you give them a glowing reference and they move up the food chain.

 

[jaycee]

There is a theory that employees in the corporate world are promoted if they are good at their job. And they keep getting promoted until they are not good at their job.

At this stage their career stagnates and they stay in that position.

The result is a corporation full of people who are no good at their jobs.

I think banks work this way.

I think banks aren't the only ones.

 

[Deltaberry]

At the time I was on a comfortable 6 figure salary, and was at the bottom of middle management I would guess that my state manager would have been on $300k as a minimum, yet didnt know enough about money to be comfortable.

A state manager who's on $300k is usually not very smart - usually just a combination of being there long enough and slowly working their way up - probably nearing 40 too, so definitely nothing impressive. Besides, you would know this, but he's probably not too smart if he's just hit that sort of income @ 40.

Corporate lawyers usually make more at that age and even they are losties when it comes to investments. Most I know only have one investment, and that's their PPOR.

 

[Intrinsic_Value]

Fear not RE, you ain't Robinson Crusoe in that respect.

After 16 years I'm yet to hear one Banker say to me "we want your business and are prepared to sit down with you to work this through".

How a business in the business of lending money continually acts like it doesn't want to lend any money and yet makes oodles in the business has got me stuffed. Perhaps I just don't get it and they do.

Funny because i experience the exact opposite reaction.

The banks are fallling over themselves to provide me with finance and cutting each others throats in the process.

But here is the key,
you have to want to borrow in areas in which the bank wants to lend.

Icing on the cake for my latest structure, a variable interest rate against residential property of around 6% against a maximum LVR ratio of 70%.

But here is the catch, the proceeds of the loan cant be used to invest in more property, it has to be invested in financial products.

The bank then clips the ticket by charging 1% gross assets under management on those financial products. (but does not charge for any transactional fees)

 

[Deltaberry]

and this is with the CBA where most of the staff are pretty useless and clueless.

Well that's what you get when you pay them peanuts after 15 year in the job. He's probably angry every time you go borrow money and make an investment

 

[Deltaberry]

This is the Peter Principle, where in a hierarchy, everyone gets promoted to their level of incompetence.

That's why you go to the cutthroat firms. They sack you in 1 month if you're cr@p. Just had a friend fired after 6 months into his role.

 

[Blacky]

A state manager who's on $300k is usually not very smart - usually just a combination of being there long enough and slowly working their way up - probably nearing 40 too, so definitely nothing impressive. Besides, you would know this, but he's probably not too smart if he's just hit that sort of income @ 40.

Corporate lawyers usually make more at that age and even they are losties when it comes to investments. Most I know only have one investment, and that's their PPOR.

To be honest I dont know what she was on. I could only guess it might have been more (though i doubt less). Yes, She was nearing 40, if not over the top of it.

I accept that other professions may not be knowledgeable about money, however, it always surprised me to see the lack of knowledge about business and money by those who were in senior positions and advising clients about the same.

 

[Deltaberry]

To be honest I dont know what she was on. I could only guess it might have been more (though i doubt less). Yes, She was nearing 40, if not over the top of it.

I accept that other professions may not be knowledgeable about money, however, it always surprised me to see the lack of knowledge about business and money by those who were in senior positions and advising clients about the same.

Oh there's heaps. Every now and then you see some university graduates telling you what price you should pay in buying the AXAs of the world.

 

[Intrinsic_Value]

Why all this venom against bank managers. Not everyone has the drive to create their own financial security.

Those in the professional world who have climed up the corporate ladder, might actually be reasonably content with the position and the salary.

At the end of the day these people are just higher level servents in the food chain.

So use it to your advantage, throw a bit of money around, buy some decent wine to use as 'gifts'. Take your bank manager out to a 5 star restaurant together with your accountant.

Sometimes small money needs to be circulated in order to reach the 'bigger picture'.

 

[Piston Broke]

How a business in the business of lending money continually acts like it doesn't want to lend any money and yet makes oodles in the business has got me stuffed. Perhaps I just don't get it and they do.

Supply and demand.
They have now positioned themselves as essential services.
Almost the entire population relies on banks for any exchange of goods or services.
They have the people so hard by the by knackers and could'nt give shiite what their customers think.
Not to mention 95% market share Ponzi KRudd guaranteed cartel.

Bankers are pen pushers, not business people.

As for net worth, my NIC says it all.

 

[Intrinsic_Value]

Oh there's heaps. Every now and then you see some university graduates telling you what price you should pay in buying the AXAs of the world.

This brings a chuckle to me.
Remember Warren Buffett's quip:
Why do people who rock up in bentley's take advice from those who take the subtrain to work.

The financial world exists to 'clip the ticket' from the rest of the world.

Understand this, and you understand the game. Understand the rules of the game, and you are partway there to profiting from the game.

 

[Deltaberry]

This brings a chuckle to me.
Remember Warren Buffett's quip:
Why do people who rock up in bentley's take advice from those who take the subtrain to work.

The financial world exists to 'clip the ticket' from the rest of the world.

Understand this, and you understand the game. Understand the rules of the game, and you are partway there to profiting from the game.

Absolutely. It's just a game... I reckon I would've been a rocket scientist if this world was aligned perfectly.

But in the meantime let's just help some guy who has no idea what he's doing buy 5000 supermarkets from other people who have no idea what they're doing, and then merge it with 2000 retailers from even more people who have no idea what they're doing and then spin off the properties and float it so that people who have no idea what they're doing invest in it.

 

[Intrinsic_Value]

.

But in the meantime let's just help some guy who has no idea what he's doing buy 5000 supermarkets from other people who have no idea what they're doing, and then merge it with 2000 retailers from even more people who have no idea what they're doing and then spin off the properties and float it so that people who have no idea what they're doing invest in it.

yeah but thats all good, i still make money from it, either through selling into it, or through buying the scraps after people realise that the gold they have been sold, is just lead, and that lead is too hard to value.

 

[Dazz]

Funny because i experience the exact opposite reaction. The banks are fallling over themselves to provide me with finance and cutting each others throats in the process.

No doubt.

But here is the key,
you have to want to borrow in areas in which the bank wants to lend.

Icing on the cake for my latest structure, a variable interest rate against residential property of around 6% against a maximum LVR ratio of 70%.

But here is the catch, the proceeds of the loan cant be used to invest in more property, it has to be invested in financial products.

The bank then clips the ticket by charging 1% gross assets under management on those financial products. (but does not charge for any transactional fees)

Man, I'm gettin' dizzy trying to work out things between the key, the cake, the catch and the clip.

 

[Deltaberry]

yeah but thats all good, i still make money from it, either through selling into it, or through buying the scraps after people realise that the gold they have been sold, is just lead, and that lead is too hard to value.

Absolutely. Nothing better than 200% bonuses.

 

[Intrinsic_Value]

Absolutely. Nothing better than 200% bonuses.

so then majority wins
the financial intermediary wins (ie the guy who hooked up the different parties), the person selling wins, the stock broker wins. The end users who just trade it wins (provided they use stop losses). Its just the end user schmuck who believe in the underlying story of the garbage being sold to them who loose.

 

[Intrinsic_Value]

No doubt.




Man, I'm gettin' dizzy trying to work out things between the key, the cake, the catch and the clip.

its a different ball game. Try getting ones lawyers to stitch up a legal contract that protects ones interest and the banks will run a mile.

Instead just come to the party, enjoy the party, and when there are too many drunkards, politely tell the host that the party has been a thoroughly enjoyable event, but the wife wants me back home.

Thank the host again, and state that one will more than enjoy being invited to the next party.