19 October 2018 FT — Articles to Read

19 October 2018


Question: 10 tough but true reasons you’re not rich?


Beijing unveils first growth data since US tariffs – Pg. 3

–        …the world’s second-largest economy is expected to have grown by an annualized rate of 6.6% in the third quarter, which would mark China’s slowest expansion since the depths of the financial crisis in 2009

–        China’s economy has also doubled since 2009 (from $5.1tn to $12.2tn last year), so slower growth is expected


Wary Chinese business cuts investment as trade fears grow – Pg. 3

–        China’s private entrepreneurs are shifting away from investments in favour of paying down dollar debt and keeping cash at hand to prepare for an economic downturn exacerbated by the Trump administration’s trade tariffs

–        …private exporters would focus their cash on repaying dollar debt, as China’s loosening policy and the US Federal Reserve’s tightening contributed to a weaker renminbi

–        Private businesses have borne the brunt of a slowdown in real economic growth in China over the past few years, which has been accompanied by a tightening of state lending and the collapse of shadow financing.  Private companies tend to be far more exposed to shadow finance, as both borrowers and lenders

–        After decades in which property investment drove the boom, real estate entrepreneurs are turning to asset management rather than placing big bets on land or buildings,…


Lenders aim to plug $1.5tn gap in global trade finance – Pg. 14

–        Several of the world’s largest banks plan to build a digital platform that aims to grab an unaddressed $1.5tn gap in the coverage of global trade finance

–        Hong Kong’s de facto central bank, the Hong Kong Monetary Authority, has launched a blockchain-backed trade finance platform linked to 21 banks, including HSBC and Standard Chartered

–        The system plans to allow trading companies to submit purchase orders and invoices to request trade financing from banks.  The information can be verified within the system and will help banks better assess the risks of double financing and fraudulent trade


Answer: (1) You’re trusting the wrong investment pros (Prof Note: Make certain they are “pros” afterall, i.e. look at the educational background of Suze Orman); (2) You have an attitude about wealth; (3) You waste a ton of money (Prof Note: Be careful as the Starbucks add up); (4) Your mindset is all wrong; (5) Your networking stinks (Prof Note: Networking is critical.  You have to get one’s name out); (6) Savings?  What savings? (Prof Note: Perhaps a cliché but no less true: It takes money to make money); (7) You’re a penny pincher (Prof Note: You have to get in the game!  You miss 100.0% of balls when you fail to swing 100.0% of the time); (8) You think working long hours is all it takes (Prof Note: Whoa…have I learned this!  Work the long hours ONLY when it is appreciated and they are advancing you.  If your boss and/or company is shirking, completely your commitment but change jobs!); (9) You like to keep up with the Joneses (Prof Note: You never know how the “Joneses” have financed anything.  Be prudent and find inward happiness); (10) You’re waiting for your big break (Prof Note: Create your own break!  I am never happier than when I wear polos with the P(Gain) logo and/or Cat Ghaut logo.)