'FINSAC ruined me' - Man loses business, home during '90s me

[Assasin]

Is not that some failed. Some early actions and planning could minimize some damage, just like in the US.

The greatest difference is some are just not able to start again.

Karl some companies who didn't go under had the luxury of families in foriegn land who could pool up them little much and help out. It happened in my family and others I knew of. At that time if you had to get capital from a direct Jamaican source you salt and one can argue that is one of the reasons the foriegn banks never failed.

[Karl]

Karl it is easy to get out a business as you know because you alway think you can sell the next house, the next mortgage. You think 1 one more, one more month, .....

While I know it must have been hard for you in the business and maybe you can transfer your skill somewhere else as hopefully you didn't have to much capital invested. It may not be as easy for the man who started building 4 projects, or the man with the stock in his warehouse with a net 30 days to pay.

You mean some have the strength and wisdom to know when to change...

...some do not! ...or put another way, some go mad!

It is not a crime to fail!

It is a crime to not try at all and it is a crime to give up!

[Assasin]

Karl it is easy to get out a business as you know because you alway think you can sell the next house, the next mortgage. You think 1 one more, one more month, .....

While I know it must have been hard for you in the business and maybe you can transfer your skill somewhere else as hopefully you didn't have to much capital invested. It may not be as easy for the man who started building 4 projects, or the man with the stock in his warehouse with a net 30 days to pay.

[Karl]

No Karl sudden shock can kill any business. If you operate at a 20% profit margin and interest rate or cost eat your profit away it is possible but hard to adjust.

I have to give some companies like Jamaica Producer credit for changing their business plan and weathering the banana storm but especially many small business will not be able to adjust. That is why they don't try and raise the rate more than .5 points in the US.

... I was adding to my post as you were answering!
Go back to my post and check...

...and your last paragaph?



Right on!

[Assasin]

No Karl sudden shock can kill any business. If you operate at a 20% profit margin and interest rate or cost eat your profit away it is possible but hard to adjust.

I have to give some companies like Jamaica Producer credit for changing their business plan and weathering the banana storm but especially many small business will not be able to adjust. That is why they don't try and raise the rate more than .5 points in the US.

[Karl]

"Should we assume that the JLP is to blame for these ongoing and coming rush into ruin? "

Why are they without blame? If this is the case aren't they the government of the day? Do they set policies?

Sass,
Firstly you work in the climate within which you start your business...and secondly, you adapt (modify...wherever) with the changes in climate as you go along...or your business dies!

...there is one other situation - e.g. I am in the mortgage business...based on the activity in the real estate market...perhaps, I should say, I was in the mortgage business... - the market undergoes rapid and such profound change such that the options are 'riding out the downturn'
...or...
'change service and production' to something in greater demand (i.e. get out of the 'old line of business').

That's it!

Riding headlong into failure is just, not it!

[Sickko]

Just a point pof order that I do agree with Karl here, we were taught in Journalism school that we 'need to show it not say it'..if the man says he business was 'vibrant' then there should have been at least two sentences to show that he was making money and was filling x amount of orders per week and what was the turn over.

He could be a 'Ben down' market vender where he packed the fabric in the back of his car and drive around trying to hawk them like a lot of people do.

Sad story non the less..

[Assasin]

"Should we assume that the JLP is to blame for these ongoing and coming rush into ruin? "

Why are they without blame? If this is the case aren't they the government of the day? Do they set policies?

[Karl]

You really think mi tek yuh fi fool? Y'all have sold yuhselves as fools a long time ago.

Run of the mill politician!
Yuh tek di votah dem fi fool!

[Karl]

lol !!

Gwaan keep yuh head in the sand.

One would have to be particularly dense not to expect several of these stories based on the events prior to and during FINSAC activities.

Anyone that had loans out at that time and did not basically have the ability to pay off that loan on demand but were relying on demonstrated business performance and some asset collateral (equivalent to or exceeding the loan amount) would have been subject to the sudden usurious interest rates climate.

I really do not understand the lack of understanding here.. it is quite strange.. what is motivating your strange inability to grasp these basic concepts ?

Why would you need 'evidence' of an inevitable occurrence ?

Omar claims he was protecting the depositors... who was protecting the borrowers ?

A Bank operates by lending the money of its depositers and promising a return.

If fact many of its depositors are borrowers. If you borrow more than you have deposited you would have been exposed. Every business, good, bad indifferent would have been exposed and crippled if the basis of the loan was a reasonable performance of a business with some asset security. Which business do you know could have kept up with the sudden and steep interest rate climbs experienced ?

The above is total foolishness...if foolishness can be anything other 'total'.

Would not proper managing of your business tell you that if interest rates are trending upwards...you needed to do something to arrest the upward movement of that trend and the escalation of the servicing charges? ...or you should 'abandon ship' if ruination...personal or of your business is the sure end result?

Stop the nonsense, man!

This man claims he was successful and had much personal assets. Why did he not manage in a manner to keep his personal assets?

Right at this moment in Jamaica apparently successful business persons are weighing their options and chosing the right path for themselves and their families. ...even as some are rushing, as did this gentleman, headlong into ruin.

Should we assume that the JLP is to blame for these ongoing and coming rush into ruin?

-----------

btw - On the opposite side:- Should we then assume that those who were 'making it' during the PNP 18 year rule were doing so as a result of being beneficiaries of good PNP policies?

[Muadib]

lol !!

Gwaan keep yuh head in the sand.

One would have to be particularly dense not to expect several of these stories based on the events prior to and during FINSAC activities.

Anyone that had loans out at that time and did not basically have the ability to pay off that loan on demand but were relying on demonstrated business performance and some asset collateral (equivalent to or exceeding the loan amount) would have been subject to the sudden usurious interest rates climate.

I really do not understand the lack of understanding here.. it is quite strange.. what is motivating your strange inability to grasp these basic concepts ?

Why would you need 'evidence' of an inevitable occurrence ?

Omar claims he was protecting the depositors... who was protecting the borrowers ?

A Bank operates by lending the money of its depositers and promising a return.

If fact many of its depositors are borrowers. If you borrow more than you have deposited you would have been exposed. Every business, good, bad indifferent would have been exposed and crippled if the basis of the loan was a reasonable performance of a business with some asset security. Which business do you know could have kept up with the sudden and steep interest rate climbs experienced ?

[Lazie]

You really think mi tek yuh fi fool? Y'all have sold yuhselves as fools a long time ago.

[Karl]

Are you being purposefully obtuse ?

Is one not supposed to borrow money from banks ?

When one borrows money was is a reasonable expectation in terms of payback, interest etc ?

Did he borrow money from a loan shark or a bank ?

"Willis said he owned a vibrant fabric business in the 1990s, where he sold the merchandise all over the island, and that he just wanted to improve his business when he borrowed $480,000 in 1994.

Willis' fortune, however, turned quickly in a series of events which saw his initial debt ballooning to more than $7 million and growing. He said he has already paid $1.5 million and has lost his house."

You find nothing odd with that scenario ?

You put it down to 'inexperience' and lack of banking knowledge on the part of the borrower ?

Interesting... in a morbid way..

Maudib?
..because Mr. says his business was vibrant we must conclude it could support the loan he took out?

...boss, come with the entire set of facts?
Thank you!

[Karl]

So focking sad. Some stories I've heard about people falling victim to Omar's genius. Yet there are those that want to sweep all this under the carpet then return these same clowns into office?

What is the story?

He lost his business?
Yes!

...why?
He could not repay or service his loans?
Yes!

...why?
He could no longer work?

He had over reached and tookl out a loan that his business could not support?

He management abilities were poor?

btw - Was the business ever able?

You sir, Lazie are still attempting to sell less than the full story!
Sure we see the sadness of this gentleman losing his business and the unfortunate circumstances of his present lot?

We know it is terrible and empathize with his physical condition brought about by his car accident...but we would love to hear the entire story?

When things were going bad...could he have 'bailed' on the business as reasoned financial decision? ...would his family have been beter served if that was done? ...simple - did he make good personal and business decisions?

----

We have a situation in Jamaica that has been going on from at least when I understood what my Dad was doing in real estate...where many persons are, on a daily basis, losing their houses. ...and there are some of these persons who quickly realise their circumstance and do nto allow 'shame-face' to stop them from making the good decision of 'bailing' early on the houses and re-organising their finances.

Yes...on a daily basis some of those who lost their houses in JA...are back in owning real property and doing a better job than the first time around.

---------

Come Lazie...as our resident JLPite...resident politician...stap tek man fi fool an cum wid di ole storie?!

...duh?

[Muadib]

Are you being purposefully obtuse ?

Is one not supposed to borrow money from banks ?

When one borrows money was is a reasonable expectation in terms of payback, interest etc ?

Did he borrow money from a loan shark or a bank ?

"Willis said he owned a vibrant fabric business in the 1990s, where he sold the merchandise all over the island, and that he just wanted to improve his business when he borrowed $480,000 in 1994.

Willis' fortune, however, turned quickly in a series of events which saw his initial debt ballooning to more than $7 million and growing. He said he has already paid $1.5 million and has lost his house."

You find nothing odd with that scenario ?

You put it down to 'inexperience' and lack of banking knowledge on the part of the borrower ?

Interesting... in a morbid way..