The World's Richest Got Poorer By Forbes

Forbes just released the world's richest for the year 2009, and the big announcement is that they all got poorer (woohoo big surprise!) - only about 4% got richer over the period. A whopping third of them just bowed out of the list while 83% decreased in wealth.

If we're suffering so should they right? Nevertheless, as a result of the financial meltdown we've got two trillion floating around somewhere.

Okay as an overview Bill Gates and Warren Buffett swapped places. Warren used to be number one, but well he's not anymore - Bill Gates owns that spot now. Maybe the stint on tv helped him out a bit.

Mark Zuckerberg, once dubbed as one of the youngest billionaires in the world fell off that pedestal after losing big - approximately $600 million, he must have sunk a lot of investments

For more details, check out the source at Forbes.com

Will The US Bail-out Work?

I have been too busy at work to notice recent international news - particularly about the US economy, given that I've just moved to a new office and am still trying to learn the ropes of the business so to speak. I thought that now that I no longer work for a foreign company, I could get away with not knowing what was going on there.

But the Lehman Brothers bit me in the a*s. A global perspective was required in order to complete a Board of Directors' presentation. I went along with it because it was the right thing to do. Of course there will be local and global impact to what will happen to the US economy.

So now I'm forced to pay attention. Here's what happened for the hapless such as myself.

The subprime crisis already began years ago. The US decided to buy bad assets from developing nations and provide a lending service to not exactly "credit worthy" applicants. This was not a suicidal effort, but in fact at that time a seemingly brilliant initiative.

The idea was even if these financial institutions lent money to people who can only repay a small portion up front; considering that the working conditions will improve in the next 3 years and their assets will appreciate, these firms "ballooned" the repayment over a delayed period (about 3 years or so). That way the lenders will pay a little up front but then have enough money later on to pay for an increase repayment after several years. I bet at the time it seemed like a win-win situation.

This was of course until mid-2007 when the interest rates on housing started to rise and investors were getting shaky. As a result people were forced to sell their investments, impacting the stock market and further damaging the financial institutions that lent money because people were now unable to pay them back when their repayment figures were significantly higher.

So the complex web of financial transactions occur until here we are in a state where "everyone owes everyone." Companies like Bearns Stearns, Meryll Lynch & Lehman Brothers who capitalize on these investments felt the blunt first.

And so Bearns Stearns and to be rescued by the US government while Lehman Brothers ended up filing for bankruptcy last Sept-15. Right now the US government needs to implement their $700 billion bailout plan (if that's what it's going to be or something better up their sleeves really quick) or it will hurt not only for America but for the rest of the world as well as the domino effect will just spread throughout the world.

Now to answer the question: Will the US bailout work? According to Forbes it's too big to fail as it brings together Republicans & Democrats to the table as Congress tries to digest Bush's initiative. They say it's no good but there's not better choice right now. It is a rather dire situation - do or die.

If the rescue plan fails, the economy fails. The rest of the world can only watch and wait.

How The Number 1 Brand In The World Stays On Top - The Secret Of Louis Vuitton

Louis Vuitton was recently ranked the No. 1 luxury brand in the Millward Brown BrandZ ranking of the Top 100 Most Powerful Brands, a list that covers 50,000 brands worldwide according to Forbes.

So what's their brand secret? Well for one, they are revolutionary. Consider their newest endorser - Keith Richards of the Rolling Stones. He's not the typical celebrity endorser and they know it. But why pick him? They want trend-setters and jet-setters. People who will pay the extra grand to get the best in luxury.

The economy is already unstable as it is, why settle for the girl/ boy next door who might not even have enough money to spare? Louis Vuitton is going for class A, retirement age individuals who have money to burn.

Bold moves like this keep Louis Vuitton ahead of the pack currently with a brand value of $25.74 million. Sometimes it's just amazing how they started as a steamer trunks and luggage retailer in 1854 and eventually evolved into the marquee brand they are today.

9 Of Forbes' 20 Most Important Questions In Business

Forbes.com just released a very interesting article headlined "The 20 Most Important Questions In Business." It's great that they shared this with the rest of us. There are many budding entrepreneurs all over the world. Even employees can benefit from learning how overall business strategy will help them continue to have employment.

Basically it mentions how we don't really have all the answers. But the key to success in business is to ask the right questions. Studies estimate that just two-thirds of all start-ups survive the first two years, and less than half make it to the fourth.

Here are some highlights of the article about the question entrepreneurs have to answer in order to keep their businesses afloat. This is basically the shorter version of the article with some of my comments on the side:

What is your value proposition?

Without a need, there is no incentive for customers to pay. And without sales, you have no business. Period.

What differentiates your product from the competitors'?

If you want to win in business, you need to offer something tangibly valuable that the competition doesn't.

How much cash do you need to survive the early years?

Three words: Mind the cash.

What are your strengths?

Figure out what you're good at and stick to it. Don't go chasing red balloons

How big is the threat of new entrants?

The trick: building a loyal following before new competition steps in for a share of your market.

How much power do your suppliers have?

Basic rule of thumb: The fewer the number of suppliers, the more sway they have.

Does the business scale?

Think service businesses, where the need for people grows along with revenues.

What price will your customers pay?

Get this answer wrong and you could leave bags of money on the table--or worse, send customers running into the arms of the competition. Do your homework before you start selling

How committed are you to making this happen?

Fair warning: If you want to run the show, get ready to give everything--and then some.