Is Ikea Socialism in Action?

We took the family to Ikea again this weekend--Spencer now calls all stores Ikea: Superstore is Green Ikea, Staples is Red Ikea and Canadian Tire is White Ikea. I had to buy a lamp for the office so we popped Spencer into Smaland (the kids' play area) and Kate and (sleeping) Winston went to that cafe. There is also a restaurant with incredible meal deals (breakfast or dinner for $1) but the cafe always has hotdogs for 50c and deals on a few other things too. As I stood in one of the massive line-ups watching some shoppers balk and abandon their shopping carts (and you thought that only happened online!) I got to thinking...this reminds me of Socialism/Sweden.

Think about it: there is free daycare (like Sweden) and subsidized meals (like Sweden) and ok prices on goods, but definitely not the cheapest place around (like Sweden) and then the long lines to pay for the stuff (like Sweden). Well, much of what I know about the place comes from reading and my Swedish Aunt (and her meatballs) but the parallels seemed quite striking.

Enough of that...I finally got the correct completion certificate from CSI so now I can take my licensing exam from the Insurance Council of BC. Get this: I've been licensed since about 1997 for insurance, but since I was away from Canada for over 2 years it lapsed. Now they have this new system where you have to take a course (either from CSI or Advocis, formerly CAIFA) then, after passing that, applicants can take the Council's actual licensing course. Seems a little round-about, but it's a monopoly so I signed up with CSI (our firm has lots of Investment Advisors so we get a deal on the fees, and many of my past courses have been through CSI).

Anyhoo, unbeknownst to me, there was trouble brewing. I wrote my CSI exam on February 5th and was set to get the results in a week or so. I went to the Insurance Council to set up an exam sitting and got the one on February 16th. At that time they told me that my picture I.D. would have to be exactly like the name on my certificate from CSI or I can't write it. I got the certificate a day or so later but (you guessed it) it was different (middle initial instead of middle name). The Council was not budging and CSI didn't receive the many faxes I sent to get it changed in time. So, I missed that sitting, I signed up for the March 1st one (tomorrow) and phoned and faxed CSI many times to get a new certificate. Each time I found that they had not completed the task (ya, just printing it and putting it in the mail) and each time I was told it would happen...then, again, they would say that the fax was never received and no notes were made in my file for follow up--even though no less than 4 people knew about my predicament and they had a stated policy to fix it. Finally, on Friday, I called again to confirm that it was coming...again it was screwed up. So my manager ripped into one of the managers and they finally put the thing on Fedex to get it here. Well, it's in my hands now. All I have to do is take the test tomorrow.

Here's the lesson: if you're ever dealing with bureaucracy and are not 100% sure that things are going as they should: call someone. I used to hate it when my junior at work in Korea tried to confirm things with me (about 10 times a day!) but now I understand that sometimes it needs to be done (of course, there is no need to confirm stuff with me, I'm perfect).

Hope you have a great day...I'll be in the books.

A Few Jokes

I sometimes find a few noteable quips on the net:

These four guys were walking down the street, a Saudi, a Russian, a North Korean, and a New Yorker.

A reporter comes running up and says, "Excuse me, what is your opinion about the meat shortage?"

The Saudi says, "What's a shortage?"

The Russian says, "What's meat?"

The North Korean says, "What's an opinion?"

The New Yorker, says, "Excuse me?? What's excuse me?"

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A rabbi is sitting on an airplane next to a Korean guy. After they have been flying together in silence for a while, the rabbi leans over and says, "You know, I've never forgiven you Chinese for what you did at Pearl Harbor."

The Korean looks shocked and replies, "What the hell are you talking about?!?!? It was the Japanese the bombed Pearl Harbor, not the Chinese. And besides, I'm not Chinese or Japanese, I'm Korean!"

The rabbi says, " Korean, Japanese, Chinese, what's the difference?"

A little while later, the Korean man says, "You know, I've never forgiven you Jews for sinking the Titanic." The rabbi looks confused and mad and says, "What are you talking about? The Jews didn't have anything to do with that! An iceberg sank the Titanic!"

The Korean guy replies, "Iceberg, Goldberg, Greenberg, what's the difference?"

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There was this Spanish guy, this Korean guy and this Russian guy all working for the same construction company. At the beginning of the day the boss comes out and says to the Spanish guy, "You're in charge of the cement."

Then he said to the Russian guy, "You're in charge of the dirt."

Then he said to the Korean guy, "You're in charge of the supplies."

Then he said, "I'm gonna be back at the end of the day to check on your work. It better be good or you're fired."

So they all go off to go get their work done.

At the end of the day, the boss comes back to check on their work. He looks at the big pile of cement and goes, "Good work," to the Spanish guy. Then he looks at the big pile of dirt and says, "Good work," to the Russian guy. Then he couldn't find the Korean guy so he asks, "Where the heck is the Korean guy??"

All of a sudden, the Korean guy jumps out from behind the big pile of dirt and yells, " SUPPLIES!"

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Jay Leno Under Fire Over Joke About Koreans and Dog Meat

LOS ANGELES — Latenight comedian, Jay Leno, is under fire over his joke about Korean short track speed skater, Kim Dong-sung. Leno said that, after the Korean was disqualified, he "was so mad he went home and kicked the dog, and then he ate him."

It seems that Koreans are sensitive about people making fun of their culinary habits.

Leno said he was sorry he had told the joke. "I wish I had said 'What kind of a name is Dong?'"

Ok, that's enough craziness. Later.

Blogging is Fun

Just got a few minutes now at the end of the day. And what a day...well, you know, at times things get a little nuts (sometimes in a good way, sometimes in a screwball way). Just wanted to say that I'm pretty stoked about how, from time to time, people (well, guys, usually) will email me and day hi or say that they are in the same situation (working in Korea in finance, married to a Korean gal...something in common). Knowing that I went through a job change some guys also ask how to get a job in Korea or the industry in general, and I try to help out when I can...after all, I got there through a fair bit of luck and a connection as well.

It's great to keep in contact with Korea and those interested Korea (and finance, when possible) so just wanted to say it's great to be able to keep up with things and know that there are others out there like me.

Man, re-reading this...it looks pretty sappy. Oh well, one sappy post a year ain't all bad.

Oh, and I'm reading Bruce Wasserstein's book: Big Deal. The thing is FABULOUS. If you're into investment banking, finance or just investing go and get it. (927 pages!--Great value...a history of dealmaking in one tome.)

Have a good weekend.

One gone...49 to go.

Already got an email to get a gmail account. At first we got 5-10 of these invites at a time and now it looks as though I have 50 of them. I like gmail and in Korea used it for work a lot (much to the chagrin of my CEO, but the company email had so much spam in it it just made no sense) as the archive and search functions are great.

Wednesday was busy: took Winston to Children's Hospital to get some dental surgery done. I took him into the O.R. (as my wife is a little squeamish at that stuff). They did an I.V. for the local and it was kinda hilarious. I saw them inject it and the nurse said it would take effect quickly. (Winston didn't cry at all before or after it!) Next thing I know his eyes roll back and he's out...in about 3 seconds. Ah, ya, that was quick.

Last night I drove my father-in-law to a golf shop in Richmond (about 45 minutes drive); Spencer came too. He called ahead to get a club set aside for him to exchange for but when we got there a salesguy said he had none of that size/type. My father-in-law used Korean logic and was basically asking him to look again and pull it out of thin air. He even said, "How can I believe you?" which is a normal Korean thing...the guy was, like, "Um...I'm not lying to you. If I had it I'd give it to you." Culture thing. Every Korean I know uses a line like this. In Korea it works because the salesguy HATES to have his honesty questioned so will move mountains to get the thing for him, usually. But for this poor CBC (Canadian-Born Chinese) guy it sounded very odd, indeed. They went off to search the store and Spencer practiced his putting on the practice green (well, astroturf). Maybe it's time for a set of junior clubs for him...his birthday is coming up soon.

Things are coming along at work...got a few things in the works (some from the brokers and some from my own friends and contacts) so I'm pretty optimistic at the start. It's bloody amazing, I think, to see how positive everyone is toward what I do. It's estate and tax planning but in essence there is a lot of insurance in it. I think part of it is my experience (12 years) and background as a broker that makes things a little easier. I couldn't imagine a pure insurance guy in the office...just a different way of thinking--and vocabulary--than in insurance.

On that...time to get to work.

Anyone want a Gmail account?

I've got 50 of these things if anyone wants one...just email me at the yahoo address on my profile. No cost.

When Jim Rogers Talks, Korea Listens

Yesterday I had an interesting lunch put on by Sentry Select mutual funds--I should plug them as they were nice enough to give me a free lunch and a talk by Jim Rogers. Ostensibly, it was to promote his book (Hot Commodities) but we know that Sentry is in the business of selling mutual funds and other financial products and it just so happens that Mr. Rogers' talk boosts their area of expertise: commodities.

Jim (as I'll call him because it invokes a little bit of insidership, that and I'm too lazy to write Rogers every time) has been around the world twice. Once on his motorcycle (he wrote a book on it) and again in a custom Mercedes Benz (with is fiance, now his wife...he has a baby girl now, too...and he wrote another book after that trip also). His incredible claim to fame was co-founding the Quantum Fund with George Soros--this quintessential hedge fund made 4,200%+ for investors in the 1970s (if you run the numbers the compound rate is pretty tremendous). He is also featured on CNBC a lot. His last trip was 3 years long and covered 245,000 miles, so I think me may have a good macro-view of things.

But, about his talk. He is bullish on China: so much so that he has a Chinese nanny for his baby-girl whose explicit instructions are to speak Mandarin exclusively to the tot. (He notes that Russia is run by the mafia and India is a shambles--where even Indians give up on returning to the place to make a fortune--so China is where it's at.) He points to the savings rate of Chinese (35% vs. 2% in the U.S.) and how they are plowing incredible amounts of money into infrastructure (Russia's corporate leaders are more interested in siphoning money out to Switzerland or Lichenstein and the 'main highway' in India has an average speed of 12 mph compared to 45 mph in China). He sees a hard landing (quick recession after super-heating the economy) for China in the next couple of years, but that is a buying signal (buy in the dips) as the average commodities bull market has lasted 15-23 years (and we're 5-6 years into this one) and China is a BIG buyer of these things (but the party should end at about 2014 or 2022).

Thus, he sees commodities as a good investment for the long term. Financials are OUT, he says; take a look at the S&P500: it was 30% Utilities in 1981; 30% TMT (technology, media & telecommunications) in 1999 and now it's about 30% Financials. Guess what, in successive years those were the losers. He also points to a study by Yale and University of Pennsylvania that concluded that if an investor put their money into the underlying commodities rather than the basket of stocks that mine, refine or sell those commodities (of course you could pick the winners, but that's a mug's game) they would have made 300% more money! It's no surprise that the second reason he's in Vancouver (other than to flog some books) is to promote his 6 year-old RCIC commodities index (which happens to be the best one in the world, up 184.78% since August 1998--that's 17.7% per year!). He's already inked deals so that American investors can buy his index and recently launched a Japanese version...and next is a Canadian one (in negotiations, although there is a way Canadians can buy the American one).

Now if commodities aren't your thing he has a few recommendations that come from his findings: don't have money in USD...the Fed's stated policy is that it is fine with devaluing the USD. And since financials are not the place to be, he's shorting Fanny Mae and home building stocks in the U.S. He says if you're going to buy real estate in the States then buy in Iowa (cuz all them farmers will have a lot of money) and not Massachusetts (where the financial firms are). Also, the U.S. is not a big producer of resources. Canada is, however. He like the CAD because all we have are resources and we can sell them not only to China but to the U.S. (Incidently, he thinks the U.S. will be a big loser by the beggar-thy-neighbor policy of softwood tariffs because we have the goods and they need to buy them...and if we say "Screw the U.S." we can sell to China in a heartbeat.)

He sees China as being a big importer of goods, as mentioned, and the yuan will float in 2-3 years or so. It has already gone from being an exporter to an importer of cotton, crude and other raw materials and this trend will continue. He loves ags (agriculturals like grains, cotton and soy) but also energy (oil, natural gas--he owns some of the Canadian tarsands stocks) and metals. Not really gold, because, as he puts it, it's useless--except for a few industrial applications. The problem with gold is simple supply and demand: in 2003 75% of metals exploration budgets were to find gold (so there will be more coming for sale soon); the Central Banks of the world hold 30-40 years worth of current production in their vaults and they are either in the process of selling it or looking into the idea; and for the last 25 years gold production has risen but there are no new uses for the stuff. He said, "Sugar is better than gold." Wow.

On metals, he likes things like lead. Not sexy, but also profitable. There is no new production or exploration for lead (and other orphaned metals) and new supply takes years (maybe decades) to find, get permits for, excavate and refine. The latest, most modern lead smelter in the U.S. was made in 1969...nuff said. Then there's uranium. China and other countries will be using more nuclear energy (like it or not) and uranium will be in short supply because (i) no one is really looking for it (everyone is after gold); (ii) once you find it environmental and regulatory forces make extracting and refining it an arduous chore; and (iii) even if you can do that it takes many, many years to get the stuff to market. Also, the stockpiles are dropping so supply shortages alone could pump up the price (oh ya, and Canada has a lot of it in the ground).

What are the biggest risks in investing these days?
I. The U.S. financial system. Enron and its pals have shown us that people can really screw up a company like there's no tomorrow. But...copper doesn't lie.
II. U.S. financial stocks. These are at risk from systemic problems as well as a choppy market.

So, what does this have to do with Korea? As in this story, its like Korea was in the room listening to Jim speak...they've taken to paring down their USD reserves and moving to CAD and AUD (Aussie dollar) ones. Go figure, for once the Korean government seems to be on the cutting edge!

UPDATE: Interesting excerpt from his book here.

Fun Weekend

Wow...had nothing planned this weekend, but managed to have a good time. On Saturday we all (wife, 2 boys) went to Stanley Park to check out the petting zoo. I keep seeing this little park (well, little by Canadian standards) from the train so we stopped there first. It's bigger than I thought (complete with a pool and a few swings and a jungle gym as well as acres of green grass) and being near the water (there's an inlet that runs up from Lion's Gate Bridge to Port Moody) it was quite nicely nestled between the container port and the grain elevators.

Then it was off to Stanley Park...we made a (30-minute) loop around the thing before we stopped for information (ya, I'm a guy) and found that it was closed. So, it was off to a little beach where the kids played in the sand near the waves and some fish 'n' chips and hot dogs and we were off again.

Finally, we made a stop at Rocky Point Park (some pics of this one here) for a while...3 beaches in one day all along Indian Arm (as the inlet is called).

Sunday was another got-to-Ikea-for-the-free-playarea day. Winston, true to form, fell asleep as soon as we got there so Kate and I had time to talk...30 minutes seemed like a luxury and we had a whole hour! After that I washed the sis-in-law's car (I figure I better, as I use it a fair bit) and vacuum the house (Cinderella, Cinderella!) then off to the mall with Spencer. He loves shopping and Kate loves the break (she stayed at home)...Spencer's a little more rambunctious than Winston. We then got some sushi and went to Rocky Point and then another park to scare some hapless ducks and other fowl (pics from a previous visit here).

What a life, eh?

Now for the books. I finished Fleecing the Lamb: The Inside Story of the Vancouver Stock Exchange on the weekend. Very good. It was written in 1987 and I was recommended it in 1994 as I exited university...but it's probably better that I read it now, after a few years in the 'real' markets. Basically, the VSE was a very corrupt place...and probably still is to some extent even though the TSE took over it and the Alberta Stock Exchange (naming them the TSX: Venture Exchange) after Bre-X and Cartaway (2 BIG scandals) blew up real good.

I also started, and gave up on, It was a Very Good Year: Extraordinary Moments in Stock Market History. The author is a Harvard grad and MD (Managing Director) of Merrill Lynch...but it just wasn't all that interesting. His writing style is too bookish for me. I like to be held to the story a little, but he just throws facts, facts and more facts at you with tons of quotes from sources of the day (isn't that for the 'Sources' are of the book?) I'll have to trundle down to the library later today and take a look for a couple more.

Now, to work.

Canada is Different from Korea

Well....duh! At lunch today found a few things that stood out, so thought I'd pass them on:

1. There are hardly any Mexican food places in Korea (and the ones that are there are priced out of this world)...but there are tons here. Today I had a 'One Pound Beef Burrito' at Taco Time (let me tell you, it felt like a Two-Pounder).
2. In Korea, bras and such are set out one on top of another and usually sold on the street or in marakets by little old ladies. In Canada, there are whole stores for them (La Senza is a biggie). Maniquins in the window model them and the salesgals are usually young girls.
3. Korea has hundreds (literally) of kinds of ice cream; meanwhile, we tend to develop new chocolate/candy bars instead (I just had a Smarties bar).

That's it...

Slow News Day

Not much to write about today: except that Spencer has suddenly learned 'please', 'thank-you' and 'you're welcome' and uses the A LOT. I guess now I have to do the same...damn kids.

Not to scare anyone, but here is a pic of my bud Minaz--a rare one at that, as he almost never dons a suit. Sorry, girls, he has a girlfriend...and a Korean one at that.


The lovely and talented Minaz strikes a pose in front of North Vancouver's 'skyline'.

Enjoy the week.

Korea is #1 !

First, a little humour:


I think this is a comic about skin cream or something (emphasis on the 'or something').

Ok, now for the story. I finished my latest book and found a stat that I learned when I was in Korea, but didn't have the real numbers until now. If you're into finance, here is a question for you: Which market in the world would you expect to find the largest exchange-traded derivatives turnover in 2002? New York? London? Tokyo? Nope...Seoul (although I remember a lot of derivatives, and perhaps the futures & options exchange being in Pusan).

From page 220 of the book:

Exchange-traded derivatives turnover, 2002
Country: Annual number of contracts (mil) / Market share (%)
South Korea 1,947 / 32
U.S. 1,845 / 30
Germany 801 / 13
France 358 / 6
U.K. 357 / 6
Brazil 187 / 3
Japan 178 / 3
Others 428 / 7
Total 6,101 / 100%
(Unfortunately, I have no idea how to make a nice little table in blogger....waaaaaaaa.)

These stats don't tell the whole story, though, because it shows number of contracts, not total value of amounts traded. The thing is, Korean traders are usually individual punters (speculators) in the markets trying to make back the losses they sustained in the cash markets (normal stock markets, futures and options markets are non-cash markets).

In terms of Asset Management centres Seoul is in the "Others" catgory after: London, New York, Tokyo, Boston, San Francisco, Los Angeles, Paris, Philadelphia, Zurich and even Denver (!).

Well, better get to work...more fun and exciting stuff later.

Happy Birthday to me.

Well, it's come and gone...the party was pretty good. We had pizza, Chinese food and 2 cakes (Spencer really wanted a strawberry one in addition to my Black Forest kind) and shared 2 cans of beer between 4 of us. Just the in-laws and our little family, a pretty good scene. After that I had a nap (hey, I'm the birthday boy...who can challenge me?...oh, my wife can).

This morning I got a good present. Weighed myself and the number was '88' (double happiness and also means wealth for Asians). Ah...but just being at 88 kg is a feat. For years I've been at 93 then saw 90 a little while ago, but couldn't believe it, but being down 5kg (1kg=2.2 pounds, so that means a drop of 10.1 pounds) is enough to announce. But, I fear it is because I am losing muscle. My workout schedule has been pretty light lately (and muscle weighs more than fat) but I have been bench-pressing the kids everyday and carrying them a lot. Not to mention walking 20-40 minutes every morning to the train station or bus stop. Then, when downtown I walk everywhere too. Hmmm...could I be getting healthy in a stealthy way?

On another topic, on Friday , yesterday (yes, on my birthday, I always seem to work on my birthday since I was 16) and today I am helping man the booth at the Financial Forum. When I was with RBC Dominion Securities I was in their booth in '97 and '98...about the time that discount brokers were the big thing (and every investor was a genius and could make money without advice). The Forum then was packed with people and booths. Now, after a bear market, it looks like half the booths and fewer people milling around. All we need are a few more good years and things will go crazy again, though, they always do.

I loitered by the SFU GAWM MBA booth for a while ingratiating myself on the guy there...he is on the admissions committee. One gal came by and grabbed a pamphlet. She was not your typical MBA gal...middle aged, scraggly looking, in fact more like a bum than a money person. He asked her if she was looking into an MBA and she said she would see what the options were. Later he said that she is not one who could make it. (More on her later.) A guy also came up and I (being rather effervescent and knowing about the program) started explaining it to him with the actual booth-minder. The guy said that I was a perfect guy to be an MBA...something that I didn't let get by Mr. Admissions.

Anyhoo, back at my booth that gal came by as well. She noted that she wanted to get into Thai investments and if iUnits could do that for her. One of the guys with me (who supposedly has 15 years experience) said that you could buy Thai funds on the NYSE but then the USD exchange rate would come into play. She, rightly, said that it would be logical to look at the CAD/baht rate more than the CAD/USD rate and the USD/baht rate because in the end the USD will cancel out (or wash out) won't it? His response: not necessarily; it's something you have to look at carefully. My (thought) response: bullshit. (If you do the math: CAD/baht is about 36, USD/baht is about 38.535 CAD/baht is 31.165 and CAD/USD is 1.2368. So: 38.535/31.165=1.23648 or a difference of just 0.03% of what we'd expect.) Well, I had to tone it down as I sided with her...I really can't handle someone who doesn't know about finance thinking that because they did a few trades on unrelated markets that they can give advice on such things. As well, she asked about buying gov't or corporate bonds in Thailand and he had no idea (at least he knew when to stop there) so I offered a few words: basically, corporate governance is brutal there, don't bother. Then I got to thinking...from what she was saying and how her logic flowed she could be an MBA candidate (assuming she has a bachelors and can get a good GMAT and such). Man, looks can be deceiving.

Now for options. Beside us was The Options Industry Council, which basically publicizes options and what you can do with them (unfortunately, the people at this booth were not very proficient in options; I'm starting to think that all of these booth-people, except me, are all rookies to their area). For those in business school or looking into investing or in the industry I'd say: go to the site and learn as much as you can about these things. You may never use them, but they are not only imbedded in some bond prices, in many structured notes and fund structures, but the theory behind them (which is over 30 years old) is a part of finance and money the world over. Volatility and time value and the other measures can be extracted from most asset prices and knowing options theory can get you a good foundation into understanding pricing and forecasting values (this, of course, can make you a lot of money if you are right, or righter, and everyone else is off the mark).

That was a long one...got to go now, have a great day!

Quick one

No time today...busy! Tomorrow is my birthday; it's the same day as a bud of mine (Berris) his bud (Allan) and another member of the 02/12 club, (Sharon) so we're getting together tonight.

Anyways, my only other comment today is that I'm into a new book from the annuls of The Economist called Wall Street: The Markets Mechanisms and Players. It gives a great run-down of The Street over the last 100+ years...a very good primer for those looking at securities or finance as a career--and for us old dogs too.

Take a look at this article...interesting.

Go to go...more later.

Introduction to the Firm

Finally got things together and officially introduced our little estate planning project to the rest of the firm. It went off as well as you might expect--considering we're asking them to refer their clients to us and that we are, in essence, using insurance products. Some of the guys here (I think all of the brokers are men) are into it, some are likely repulsed while others (perhaps the majority) are on the fence. In this business two things rule: making money and stories...and the best thing is stories about making money. All we need is a few guys to make some big cash working with us and (I think) we're off to the races.

I forget to mention that I finished Belly-Up on the weekend. It was quite good. I highly recommend it. I then started Working Dollars: The Vancity Savings Story. I tried, I really tried, to get through it but after 40 of the 500-odd pages I have to give up on it. It's just too boring. Not at all like my books on investment banks and bankers. I guess if you're like Vernon Mike (a capitalist in socialist clothing) you'd like it but hearing about top bankers being 'activists' and the 'credit union movement' but for a dyed-in-the-pinstriped-wool Wall-Streeter like me it's a little much. (You might be interested that Mike's grandad is a Communist...which is not illegal in Canada: being a neo-Nazi, however is; whereas in the States being a neo-Nazi is legal and being a Communist is verboten.)

Ok, time for work.

새해 복 많이받으세요/say-hay-bok-mani-pah-du-sayo

Wasn't it just new year's a few weeks ago? For those of you into Asia you know that the Lunar New Year (called 설날/seol-nal) is the big dog of holidays. I left early today, but if the in-laws were up I would have been bowing to them this morning. Not a little hip-angle bow, either. A full, put-yourself-on-the-floor bow--I'll do it tonight after dinner instead. It's really not all that bad; after all, they do a lot for us and although the language and culture stuff gets in the way sometimes I know they have big hearts.

Like yesterday morning. My father-in-law was up when I was having cereal and asked if I was going to warm it up. Huh? It's cereal...it's supposed to be cold. Well, he was a little puzzled. I think there must be some Korean tradition that cold food in the morning is bad (generally Koreans like all things piping hot). He just stood there watching me eat. I'm used to stuff like this but after a while it got a little disconcerting. I think he expected me to take his advice and warm it up...but, being (more or less) an individualistic Westerner, I didn't. Anyways, no biggie, but an example of where a little culture can make for confusion on both parties parts...and, as in my case, it takes about a day to mull it over before I figure out why 'they' do things.

Yesterday I met with an advisor with the SFU Global Asset & Wealth Management (GAWM) MBA program. He said my GPA is a little light but my resume more than made up for it. There is also the part about the GMAT. He figures if I can get 3 reference letters (not a problem) copies of the certificates from my many industry courses and an ok mark on the GMAT that they can get me in there...the only 2 things left are time and money. The program is 1-2 afternoon-evenings a week plus 1-2 weekend days (all day). The price is about $33,000 (CAD) over 2.5 years, which is ok, but I'd like to see some of it paid by my new employer (nice idea, eh?) and, if not, I want to be sure I can handle both aspects without a problem. It's a great program, though. For their derivatives course they fly in a guy from a New York derivatives desk to teach the class as well as other professionals from Australia, London and Toronto. Excellent, a link from class to practice--I always liked that about SFU.

Well, better get at it. Happy (Lunar) New Year!

If You Pass the Test, You Can Beat the Rest.

That's a line from a Pet Shop Boys song: Opportunities (Let's Make Lots of Money) (lyrics here). It's fitting as I took one of my two licensing exams yesterday.

Funny thing. I was in the elevator heading up to the test and a security guard gal asked if I was going to the securities test. I was. She figured that I would do well. What? Well, you look like you'll do well; looks matter in that business. Ok, I was wearing a suit (came from work) but I commented that it's too bad you can't put a Polaroid on the test paper so the markers (in this case a computer) can get a good look at you. She said that one other guy in there looks like he'll pass, the rest have no chance. Interesting...I thought. It's interesting how people see someone and assume things (like that I know what I'm doing, which I think I did--at least on that test).

Nothing much else up...except that a friend of mine is heading to Korea to teach (after being in Saudi Arabia for the last few years). Can't wait to give him and his wife (and daughter) pointers on the place. Also another VTer is heading there on vacation and had the usual plethora of questions (can we use VISA there, what is a good hotel) so that is kinda fun too. If you are heading to Seoul (especially) or Korea (also) and have questions shoot me an email and I'll help out as much as I can.

Now...to work.

More Books.

Finished "Greed: Investment Fraud in Canada and Around the Globe" (no link available) this weekend. It was...ok. The author's claim to fame is she knew Chris Horne--a broker with RBC Dominion Securities who was convicted for fraud (taking $7 million out of client accounts, to be exact). I remember the story as I was with DS at the time of his conviction. Everyone was surprised, but when us brokers heard he is gay we breathed a collective sigh of relief. Thankfully he wasn't one of us! (Some of us will do anything to shield ourselves from a sensational and ugly story.) I would have liked to have learned more about his methods (as they did in Free Rider) so a bit of a disappointment.

Seemingly to make up for her lack of depth, she illustrated a few of the other big fraud cases in Canada and elsewhere: bucket-shop traders A.E. Manning, Nick Leeson and Mister Five Percent to name a few. I remember almost all of these events and it was good to get more than the papers were reporting (not to mention having it all in one place). That part was cool.

Now I'm on to Belly Up: The Spoils of Bankruptcy, which I probably should have read before The Vulture Investors as it seems to (with a few fits of what I found to be hilarious writing) lay down the history of bankrupcy and its preceedings for the last 2,000 years or so. (Did you know the limited liability company is only 150 years old: enacted by British statue in 1855?) Should be good.

Sometimes I Get Bored

Ok, so this week I'm reading my licensing stuff basically all week. I have to take time out every once in a while to get my head out of the books otherwise I'd go stir crazy. So, I Googled "Burron" and found this page. I always thought Burron was a German name (and still think so, as our family emigrated from East Berlin) but looks like there's a Scandinavian bent to it. I remember my Mom's Dad had these Norwegian vests that resembled this one (but they had more color on them--lots of red to go with the black and white). Intriguing, to say the least (at least for me).


The lovely Nordic Burron Vest.

There's also, I see, a Spanish-language comic about 'The Burron Family"...although it looks like we are Martians or something.


La Familia Burron? There's a Burron comic too?!?!

Then there's La Casa Burron which, again, is in Spanish and looks a little odd. There's even an alternative rock group called La Familia Burron 2099. What is going on?

It's nice to see that someone in my family has made the Dean's list in his law school recently. Way to go Kevin! (Not sure who he is, though.)

So, if you have a few minutes to kill why not Google your name (unless it's Kim or Smith). I'm always amazed at what comes up, you might be too.

Another One Bites the Dust

Done; 243-page Greed and Glory on Wall Street: the Fall of the House of Lehman is done. (Not available in stores, but can be borrowed from the library. It was better than the last one I read on E.F. Hutton. Predating Hutton's demise by about 3.5 years, the story of Lehman was very interesting. Some colorful personalities (such as Lewis Glucksman and Peter G. Peterson) and although it didn't go into the history of the firm as much as my reads into Goldman Sachs or Morgan Stanley did, it did exude the feeling of an old-fashioned partnership dependent on relationship-banking making its transformation into the transaction-oriented world of today.

In the way of an update, one of the main partners, Richard (Dick) Fuld remained with the firm through its time under the wing of Shearson/American Express (called Shearson Lehman Brothers, later Shearson Lehman Hutton after they bought them up in 1987). Fuld started in 1968 at Lehman (his first job) and at the tender age of 38 (in 1984) when it was bought out netted $7.6 million (on top of a salary and bonus of $1-$2 million a year). Lehman Brothers (LEH:NYSE) went public in 1994 (I'm not sure how this came about, so I have some digging to do) and Fuld is now the company's Chairman. The firm has done well, rising from about a $6 (split-adjusted) IPO price up to about $91 now. Fuld made $15.41 million last year (yes, double his buyout money in 1993). On top of that he owns over 1.2 million shares of the firm (valued at over $100 million) and exercised options and sold shares to allow him to rake in about $140.6 million since November 2003 (I netted off the cost of options exercised in that period but didn't deduct the adjusted cost base of the shares sold as that was not available--however, some of the shares came from $0 strike price options or were sold at prices far in excess of near-dated options exercises. He made a lot of money.) So, I guess if you stay with a firm for 37 years or so you can get rich.

My next book is Greed: Investment Fraud in Canada and Around the Globe (no link from Indigo or Amazon, odd). I've already read Rogue Trader, Free Rider: How a Bay Street Whiz Kid Stole and Spent $20 Million (read that 600-pager in the flight to Seoul one time) and one on Bre-X whose title eludes me. A short skim of it makes me wonder if this one is as weighty as the others...hope it doesn't disappoint.

Got to get to work, later.

Hanmi Lounge

Just got this email from Dennis in my VT mailbox (note: I'm ranked 192 now...finally in the top 200). You may find the stuff in here interesting.

Hi, my name is Dennis and I just set up a new website called the HanMi Lounge.

I am trying to get a few people who are knowledgeable and experienced with Korea to start a dialog on my forums for the benefit of newbies in Korea. I was wondering if you would be interested? If you wouldn't mind taking a look, the address is: http://www.hanmilounge.com.

The descriptions are (for reference):

Short Description: An interactive lounge which promotes the sharing of information and resources of Korea.

Long Description: Welcome to the HanMi Lounge! This lounge is for people residing in or planning on residing in, or visiting Korea. This is an interactive lounge which promotes the sharing of information and resources of Korea. In our Library you will find many of the best resources already listed.

Please come in, look around and join in the fun. Don't be shy, our boards and chat rooms are for your pleasure and education, so jump in and Enjoy!

Thank You!
-Dennis-

The Asian Squat

Haha, thanks Yoosh for this link explaining the mysterious Asian Squat--you don't know squat about the Asian Squat! (Click on Quicktime thingy to watch it.)

Oops, I did it again.

Unreal. Just have to jot this down. I used to work at Montreal Trust in the securities cage: a position that last about a month ending when RBC Dominion offered me a position and, coincidentally, when Montreal Trust was sold to Scotiabank from BCE-basically making my department very expendable. But I digress. While there I came across an odd creature, the watercooler. It was out of water so I decided to replace the 18 litre tank. So far, so good; what a nice guy, eh?

Well, I had no idea how it worked so I peeled off the blue lid (there is a tear-strip in it) and removed it completely. Then, and only then, I realised that the blue cap was NOT to come off. You just take off a little sticker and ram the thing into a valve in the machine. Holy crap! Now what? The thing was already opened, but I still had the cap. How about if I put the cap back on and gingerly ram it on the valve? (As if that could be done.) Ok, I'll give it a try. It worked! The valve did its job and I could go back to mine...of course I had to check on my little project a few times, just in case the dam broke. When someone finally replaced it they noticed my little jerry-rig, but by then no one remembered who had done the deed.

Now, in Korea we always just ripped the top off them things and quickly (and I mean quickly) placed the open end in the dispenser, letting the pressure differential to stem the flow of water.

Of course, this morning when I found the cooler out in the office (my new office, where I have been only a few weeks and those who know me don't know me that well...you know my predicament) was empty. What did I do? Learn from my mistake 10 years ago? Hell no! I ripped that blue cap right off and went to place it and...oh crap: it's a sticker/valve one! Ok, here's where the memory gets less foggy. I replaced the cap and rammed it into the valve. The bubbles gurgled...and gurgled...and gurgled. I looked for water on the floor streaming toward my shoes, but found none. Finally the bubbles stopped surfacing. Success! I was shaking like a leaf. Bloody hell! If it was the first time I could excuse myself. But looks like it worked out alright.

So, if you're having a bad day, think...it could get worse. Now to take a look and see if Hoover has let loose its H2O...

UPDATE: Yay! The dam holds!