The subprime loan scandal is far from over, in the United States. In fact, the toll keeps rising as these line are written.

We’re talking about big name lenders who lost big on very shaky loans to individuals who were so tight in their budget (assuming they held one) that they got caught up in way too much debt, the instant the American economy hit a speed bump (in this case, most notably, a raise in the interest rates).

So here’s the top 5 list of (the estimated) write-downs on structured products, which include collateralized debt and loan obligations as well as asset and mortgage-backed securities (although leveraged loans aren’t included):

1. Citigroup • 9,8B$ — It’s a low estimate since Citigroup has stated that the figure could rise another 3B$ higher;
2. Merrill Lynch • 7,9B$ — Analysts are projecting for another 2B$ in write-downs, this quarter;
3. UBS • 4,4B$ — They still have roughly 40B$ in CDOs and mortgage-backed securities on their books;
4. Morgan Stanley • 3,7B$ — The total subprime exposure after write-downs could reach 6B$;
5. Wachovia • 1,0B$ — Was one of the year’s top subprime mortgage CDO issuers, this year.

Further down the list, you can find (in order) Credit Suisse, Lehman Brothers, Bank of America, BearStearns and J.P. Morgan Chase.

Some analysts say greed alone made the subprime market grow, derail and later, explode. While this might be true, at least in part, the subprime debacle is basically all about risk and reward trumping fundamental values that just went flying out the window when the easy money mirage swept Wall Street off its feet.

Probably the biggest tragedy in the subprime fiasco is the fact that the mainstream media has offered very little coverage of the millions upon millions of families and individuals who lost their homes and their trust in “the money system”.

Even if the write-downs are huge for the banks, the real drama happens at street level, with ordinary American citizens just trying to build up their dream, usually through a nice house where they could raise their family.

The subprime mess is a grim reminder of the importance of placing true value on top of any purchase decision’s criterias, especially when “losing everything” isn’t an option.

You may want to revisit this post in a year from now and compare the numbers to see who lost the most in this subprime financial storm.

Tags: subprime, cdo, mortgages, loans, money, banks, rates, finance

Wether you’re a sports fan or not, you’re most likely aware that some professional sports franchises are worth a bundle.

The revenue streams for these sports franchises are numerous, such as ticket sales, stadium amenities (memorabilia stores, food sales, parking and such), branded merchandise and royalties (namely TV and radio).

Since so many sports franchises have been going on strong for decades, their market value is rocketing to new heights — here’s a short rundown of today’s most valuable pro sports franchises, in the world:

• Manchester United – An American, named Malcom Glazer, bought the famous European soccer team for a whopping 1.45 billion dollars, in 2005.
• Chicago Cubs – They could sell for 1 billion dollars, allegedly to real estate king Sam Zell. Considering the Tribune Co. bought it for 21 million dollars, back in 1981, it’s a -very- good selling price.
• Washington Redskins – In 1999, Dan Snyder (and his 800 million dollars) steped in when ex-owner Jack Kent Cooke died.
• Boston Red Sox – There was a nasty bidding war, back in 2002 and John Henry won it for 700 million dollars, which turned out to be an awesome deal since the baseball club won the World Series two short years after that.
• Cleveland Browns – For a mere 530 million dollars, Al Lerner bought the football club as an “expansion team”, in 1998.

None of those pro sports team owners are complaining about their bottom line since those franchises are so profitable.

It always brings a smile to my face when I see so much money being dealt for games where adults are paid to run after balls in front of crowds.

Now, having seen these numbers -and- keeping an eye on things to come, your bet is as good as mine as to which teams will turn out to be the next financial home runs, touchdowns and flying kick goals.

Whoever figures that out could reap billions of dollars along the way.

Tags: pro sports, franchises, baseball, football, soccer, tickets, stadiums, revenues

There no doubt that information technology has positively reshaped the way people deal with their favorite airlines.

Online ticket purchases, personalized customer service and fidelity privileges are some of the most popular, and useful, features that airlines can offer to their clients.

Of course, all this finely orchestrated technological cloud can have a profoundly disturbing effect on the airplane flights themselves, in the event it fails —which it shouldn’t, in theory.

This past June (2007), United Airlines canceled or delayed 300 of its trips when their flight operations computer system went down. The airline was initially baffled as to the cause but according to the Chicago Sun-Times, it was revealed that an employee made an error during a routine system testing. Oups!

So that’s how any computer “expert” can ground 300 airplanes with one -wrong- click… or keystroke.

This is yet another reminder that IT is everywhere in our largely wired world and when one computer system goes down, whatever the reason, a lot of “real world” consequences can impact people’s lives.

Tags: airplanes, computer crash, united airlines, technology, it

If you’re looking to enjoy living for as long as you possibly can, perhaps you’ll be interested to hear what these people have to say about human longevity:

• The Georgian of the Caucasus Mountains (in Southern Russia);
• The Vilcabamba Indians of the Ecuadorean Andes; and…
• The people of the Hunza Valley in Kashmir.

All three follow this no nonsense recipe for a long, happy life:

1. Exercise regularly and consistently;
2. Don’t use preservatives or artificial colorants;
3. Eat a frugal diet which is high in fiber, low in salt, fat and refined sugars -plus- rarely fry in oil;
4. Drink water with a high mineral content, from a well or mountain streams;
5. Consume plenty of fresh fruits and vegetables;
6. Never experience loneliness;
7. Practice holistic medicine namely using traditional herbs and medicines to prevent -and- cure disease;
8. Enjoy regular sex, even up to the venerable age of 99 ; )
9. Live in extended families since they offer cradle to grave security;
10. Seldom drink, smoke or otherwise poison yourself;
11. Live at high altitudes where there is little air pollution;
12. Respect your elders, especially those who lead busy active lives well into their 90′s;
13. Emphasize good relationships over the pursuit of wealth or success.

Take a few moments to reflect on these wise words.

Succeeding in business will may only bring you short lived joyful moments if the price to pay for such mercantile rewards is a miserable, short span life.

Look for balance in everything you venture into and you’ll see, doors will open more easily when you need them to.

Tags: Longevity, Business, Health, Happy Life, Relationships, Success

Once you get your first full-time job, it’s likely going to be all about the 9-to-5 drill followed by the 5-to-6 traffic mess getting back home and to top it all, the 6-to-8 household chores. The more children you have, the earlier you have to get up the later at night you’re likely to “finish” you day — in so many ways, day after day, the busiest individuals within the working class may feel they’re taking part in a sort “human rat race” experiment.

Even if it seems improbable, you need to make time for yourself in order to allow yourself to have time to think and hopefully, to listen to your inner-voice. Running around all day might pay the bills but you need to make sure you’re getting something more than a paycheck out of whatever you’re paid for or you risk losing your drive for it.

You need to reflect on your ability to manage your life and that includes your agenda.

The more money you make, the more you can delegate. For instance, with more disposable income, you may buy your daily gourmet meals from a caterer, have your house cleaned for you, every week, have a handyman take care of your property and so on. The catch, of course, is that to make more money, in the first place, you either need to work more yourself or think up ways to work more intelligently.

It’s all about thinking outside the box or said differently, to do something so unique, useful and sought for that you’ll be able to monetize your offering more often for more money and in most cases, to more people.

For instance, a good accountant might leave his firm to launch his own, perhaps alone, at first. Over time, he can specialize in whatever he -really likes- instead of what his bosses expect he’ll be best used for. Taking charge of one’s own life is a major shift from taking orders to taking charge. Some people are born to be in driver’s seat and they’re the ones who succeed the most brilliantly when switching to the entrepreneurial path.

Doing your own thing might require that you invest much more time in your work, including long hours after the kids are put to sleep but since you’re likely doing something you like, you’ll surely feel good about it… and get encouraging results faster.

Many people launching their own little venture quickly see how much more family time they can yield from shaping their own agenda, instead of having to be “out of the family loop” from 9-to-5, every business day. Imagine how privileged and fulfilled one may feel from seeing his or her kids grow up. Nowadays, busy commuter lifestyles means parents leave their kids to strangers for up to 10 hours, every business day, while they satisfy their bank account. Perhaps there exists a way to still make ends meet while being there for the people you love the most. Self-employed workers may appear to have a better shot at the successful family building game but arguably, this is a major consideration for every worker. In doubt, turn to your inner-voice for advice. You’ll know if you’re doing the right thing. It’ll just feel right.

If you’re concerned about the environment, teleworking will instantly lower your car trips to an absolute minimum, compared the gas-guzzling daily, back and forth, between an employer’s office and your home. Working out of your home also provides you with added tax credits which can help you cut up to 25% of your annual home ownership costs. In my view, this is a direct and very efficient environment-friendly measure.

Of course, you can still be happy when working for someone. It’s all about life balance, self-realization and a sense of purpose. The good thing is that when you figure it out for yourself, you’ll know when you’ve taken the right road to a happy life because, wether you repress your feelings or not, all the other life changing decisions that won’t be fit for you will just never feel o.k. so never fail to follow your inner-voice, it’s probably your safest bet in a world where so many people want so many different things.

Tags: life balance, family, work, obligations, choices, happiness, happy life, self-realization, sense of purpose