How to invest after LB went into Bankruptcy?

How to invest after Lehman Brothers is in fact an insight as a trigger from Peter Lye on 10 Oct 2008. Peter wrote an article on whether the financial meltdown could be a result of mainly a regulatory failure? He would like to study this cause by examining some the of events in the past that could have contributed to the melt down and whether there was possibility in averting this crisis by having the right party or economical system could make a break glass warning early enough. He is a free market proponent, plus Milton Freeman and Alan Greenspan are the economic gurus that we admire much of their comprehensive opinion and action to advise the public through their professional suggestion.

However, the happening of the recent events has leaded us to think of the insufficiency and inadequacy mandatory regulation and to implement administrative control by the central government giant on the free market system. Being a helpless citizen and a trivial tax payer, what can we do to counteract or to protect the deprecaition of the properties upon the current unstable Hang Seng index that can drop as much as 2,000 points a day!!

Recalled that in the 1973 that the Hang Seng Index dropped from 1,700 points to 400 points in a couple of days, and then rose to 700 points, This is the critical moment that people was becoming insane and started a bold investment by selling his house and pumped into this crazy stock market. Most of the people killed themselves alter after the Hang Seng index dropped from 700 to 150 points…..

I hope that an abnormal case will not happen again! However, no one could imagine that the one of the world largest financial company Lehman Brothers could broke in days after 164 years! The history of Lehman Brothers parallels the growth of the United States and its energetic drive toward prosperity and international prominence. What would evolve into a global financial entity began as a general store in the American South.

Henry Lehman, an immigrant from Germany, opened his small shop in the city of Montgomery, Alabama in 1844. Six years later, he was joined by brothers Emanuel and Mayer, and they named the business Lehman Brothers. How can tell that there is not possible that the world largest bank could also gone broke in weeks due to mishandling or fraud!?

I have always believed of tangible kind of properties something that you can see it and hold it…kiss it!

Like Diamond, Gold, Platinum, Antique, a Vantage car, watch of limited production…

So if I had 100 millions, I would like to divide them into following investments.

Fixed deposite 4 million each in a 2nd largest bank, 3rd largest, 4th and fifth., I do not trust the largest bank, usually there is 80% of chance the smallest back go bankruptcy for smallest and 20% for the largest bank!

Buy a house in Mid level of size reasonable big such as 2,000 square feet or above 60 million. Check see if they are haunted or not and check if they have any bad history of the previous owner. Buy in cash. Do not buy those house at the seaside ad one day the Tsunami will erase your house away in seconds…who knows?

Buy an Aston Martin DB5 HKD4.5 millions and make it a commute care to work…Yes, your boss will hate you to the bone as he may be driving a German mid sized car or a Japanese Toyota! Doesn’t matter! He will not fire you!

Buy a Patrek Philips tri-complex perpetual calendar with split second chronometers at 5 Million. Wear it to the Dinner and or party with Miss Pretty!

Buy Andy Warhol’s Mao Tse Dong Portrait, oh! sorry I forget to tell you that you do not have the money enough as Joseph Lau has bought it with HKD75 Million 2 year ago! Forget it as he too rich to sell!

Ok may be you can consider buying all the TAS Vinyl LPs…you may have enough money after you spend this for 0.75 million! It is considered Cheap if you able to tell all your vinyl friends and collectors that you have a complete collections!

Consider to Margaux 1900 0,75L … make it one case it may take you 20 millions. Open one bottle a year after 2030, make sure you are healthy and long life enough as Robert Parker does not recommend you to drink before 2030. If you are 50 year old today, you can just finish all 20 bottles by time you are 92 years old! Just the same age as Wong Wing Hing (the richest man in Taiwan) who died at age of 92 yesterday! Old man marries with young wine! (not wife!)

Still have some cash?…. Leave some for you to make an appointment with some of the prettiest movie star….for a romantic dinner….in an elegant restaurant in Hong Kong Island… that may need a million dollar or a decent gift like a piece of pink diamond of the size of a peaunt!?

Wake up … wake up …Face with the reality that you have just 338 dollars in your wallet! How can you survive as you still have to wait for another 14 days for the pay to come!! and you have to send cheque to pay for the bills!

fever