Why Real Estate is NOT a Good Investment

April 29, 2010

“…From 1890 through 1990, the return on residential real estate was just about zero.” – Robert Shiller, Yale economics professor

“When I ask my younger friends why they want to buy a house, they stare at me blankly. ‘They’re a good investment,’ they reply like brainless automatons who are at risk of being smacked by me.” – Ramit Sethi

Disclaimer #1: I’m looking at real estate from a financial standpoint. I won’t take into account the investment you’re making in your family, or the feeling of security you get from owning your own home, or the freedom to paint the walls whatever color you want. I’m only looking at monetary returns.

Disclaimer #2: I’m not a finance blogger. This post is merely an aggregation of what I’ve learned in simple terms. If you want to read the experts, see my long list of sources at the bottom of this post.

Like most Americans, I bought into the myth that owning property was a money-making endeavor. It was only recently, at the age of 30, that I came across the wealth of information out there showing how it’s not.

It all started when I read Alice Schroeder’s Snowball: Warren Buffett and the Business of Life. This was the authorized, all-access, 900+ page biography covering Buffett’s personal life as well as his career. I was shocked halfway through when it describes his first fight with his wife. What was the fight over? Buying a house. The wife wanted one, but Buffett refused because it was such a “waste of money.” This is modern history’s most successful investor refusing to buy a house.

Soon after finishing that book I met another gringo in Bogota, Geoff, who worked as a financial consultant. His parents bought a house in San Diego at a seemingly low price and now it’s worth an astronomical figure. Being financially astute, he ran the figures on the investment and showed them how and why the house’s value had only kept up with inflation. No more.

Here’s the key to understanding why real estate is NOT a good investment. The price of the house is not the only money invested in owning. To truly measure the return, you must factor in ALL costs of owning:

  1. Taxes – personal property taxes.
  2. Interest – the interest on your massive loan from the bank (you can deduct the ~20 – 25% of this you’ll save on income tax if applicable).
  3. Maintenance – every time you fix the roof, replace a window, or do anything a renter wouldn’t have to.
  4. Insurance – fire, earthquake, homeowner’s, flood, etc.

When factoring in these additional costs of owning a home, and the fact that the real estate agent who sells it at the end will take 5 – 6% of your selling price, the return rarely proves to yield more than 1 – 2% on your investment. About the same as a savings account. This doesn’t take into account volatility in the real estate market or the view of many economists that the recent housing bubble lasted 20+ years, and that prices won’t return to previous peaks for many more.

The stock market, given all its ups and downs, historically averages an 8% return. So a “good” investment (and much less risky) would be to rent a comparable house in the same neighborhood. Take the difference between the mortgage payment (plus all additional costs of ownership) and the rent payment, and invest that amount in a diverse index fund. If you invest via a Roth IRA or 401K, much of that money won’t be taxed.

With this option (renting and investing the difference in an index fund), you don’t face the risk of having all your money in one investment (a house). This is a central tenet in wise investing – diversifying your holdings. And you’ll see a significantly higher return while incurring less risk.

The only way I see a real estate investment matching or beating the general stock market is if the property was purchased under extreme conditions. People privy to inside information (from corrupt government officials about future development in the area, for example) have beaten the market by investing in real estate. Another example comes from a guy I met in Buenos Aires who bought his San Telmo apartment in early 2002, just after Argentina defaulted on its debt payments in the midst of its financial crisis. Buying property dirt cheap in economic disaster nations may prove profitable (in Venezuela whenever they get rid of Hugo Chavez, for example), but the risk involved is much greater than investing in the general market.

Again, this was a simplified overview of why real estate isn’t a good investment. If you’d like to read more, check out these resources:

The ultimate post summing up all reasons why real estate is not a good investment

Ramit Sethi’s real estate tag (author of I Will Teach You to Be Rich)

5 myths about home sweet homeownership (Washington Post)

A House is a Home, Not an Investment (NY Times blog)

Your Home Isn’t the Nest Egg That You May Think It Is (Wall Street Journal)

Is Your Home a Good Investment? (Wall Street Journal)

Home Not-So-Sweet Home (by NY Times columnist and Nobel Economics laureate Paul Krugman)

In the Long Run, Invest in the Stock Market and Sleep at Home (New York Times)

Here’s an article complaining about Americans still believing home ownership is a good investment

Hilarious blog post why the $8000 tax credit shouldn’t affect your decision


Seneca’s Letters from a Stoic

April 26, 2010

Buy Letters from a Stoic on Amazon.

I’ve was turned on to stoicism by Ryan Holiday and Tim Ferriss. Here’s their summary piece on the philosophy.

I’m coming to believe the key to happiness lies in perfecting your personal morals and structure of honor, as boring as that seems. Benjamin Franklin’s 13 virtues may be more convenient for brevity purposes, but the Stoics explain how to execute those virtues. Here are selected passages from Letters from a Stoic by Seneca. Jump to his thoughts on reading and learning, work, wealth and poverty, fear, sickness, solitude, conformity, materialism, anger, friendship, death, vice and desire, character and spirit, or God.


On reading and learning:

“Be careful [with] this reading of many different authors and books of every description. You should be extending your stay among writers whose genius is unquestionable … To be everywhere is to be nowhere … [The same goes for] people who never set about acquiring an intimate acquaintanceship with any one great writer, but skip from one to another, paying flying visits to them all.”

“Assume authority yourself and utter something that may be handed down to posterity. Produce something from your own resources … These people who never attain independence follow the views of their predecessors … A man who follows someone else not only does not find anything, he is not even looking.”

“To want to know more than sufficient is a form of intemperance … Virtue will not bring herself to enter the limited space we offer her; something of great size requires plenty of room. Let everything else be evicted, and your heart completely open to her.”

“To want to know more than sufficient is a form of intemperance … Virtue will not bring herself to enter the limited space we offer her; something of great size requires plenty of room. Let everything else be evicted, and your heart completely open to her.”


On work:

“Rest is sometimes far from restful. Hence our need to be stimulated into general activity and kept occupied and busy with pursuits of right nature whenever we are victims of the sort of idleness that wearies itself … People who are really busy never have enough time to become skittish. And there is nothing so certain as the fact that the harmful consequences of inactivity are dissipated by activity.”


On wealth and poverty:

“Each day, too, acquire something which will help you to face poverty, or death, and other ills as well … ‘A cheerful poverty … is an honorable state.’ What difference does it make how much there is laid away in a man’s safe … if he is always after what is another’s and only counts what he has yet to get, never what he has already?”

“We need to envisage every possibility and to strengthen the spirit to deal with the things which may conceivably come about. Rehearse them in your mind: exile, torture, war, shipwreck. Misfortune may snatch you away from your country, or your country away from you, may banish you into some wilderness … So the spirit must be trained to a realization and an acceptance of its lot.”


On fear:

“Limiting one’s desires actually helps to cure one of fear. ‘Cease to hope … and you will cease to fear.’ … Widely different [as fear and hope] are, the two of them march in unison like a prisoner and the escort he is handcuffed to. Fear keeps pace with hope … both belong to a mind in suspense, to a mind in a state of anxiety through looking into the future. Both are mainly due to projecting our thoughts far ahead of us instead of adapting ourselves to the present.”


On sickness:

“There are three upsetting things about any illness: the fear of dying, the physical suffering and the interruption of our pleasures. I have said enough about the first … Nobody can be in acute pain and feel it for long. Nature in her unlimited kindness to us has so arranged things as to make pain either bearable or brief … What in fact makes people who are morally unenlightened upset by the experience of physical distress is their failure to acquire the habit of contentment with the spirit. They have instead been preoccupied with the body … It is your body, not your mind as well, that is in the grip of ill health.”


On solitude:

“I am beginning to be my own friend … Such a person will never be alone, and you may be sure he is a friend to all.”


On conformity:

“[What is] particularly important to avoid[?] My answer is this: a mass crowd … Associating with people in large numbers is actually harmful: there is not one of them that will not make some vice or other attractive to us, or leave us carrying the imprint of it … When a mind is impressionable and has none too firm a hold on what is right, it must be rescued from the crowd: it is so easy for it to go over to the majority … an intimate who leads a pampered life gradually makes one soft and flabby; a wealthy neighbor provokes cravings in one; a companion with a malicious nature tends to rub off some of his rust even on someone of an innocent and open-hearted nature – what then do you imagine the effect on a person’s character is when the assault comes from the world at large? You must inevitably either hate or imitate the world. But the right thing is to shun both courses: you should neither become like the bad because they are many, nor be an enemy of the many because they are unlike you. Retire into yourself as much as you can. Associate with people who are likely to improve you. Welcome those whom you are capable of improving. The process is a mutual one: men learn as they teach.”

“If you shape your life according to nature, you will never be poor; if according to people’s opinions, you will never be rich.”

“Away with the world’s opinion of you – it’s always unsettled and divided.”


On materialism:

“Your food should appease your hunger, your drink quench your thirst, your clothing keep out the cold, your house be a protection against inclement weather … Spurn everything that is added on by way of decoration and display by unnecessary labor. Reflect that nothing merits admiration except the spirit, the impressiveness of which prevents it from being impressed by anything.”

“What fortune has made yours in not your own.”

“Any man … who does not think that what he has is more than ample is an unhappy man, even if he is the master of the whole world … A man is unhappy, though he reign the world over, if he does not consider himself supremely happy.”

“Set aside now and then a number of days during which you will be content with the plainest of food, and very little of it, and with rough, coarse clothing, and will ask yourself, ‘Is this what one used to dread?’ It is in times of security that the spirit should be preparing itself to deal with difficult times … If you want a man to keep his head when the crisis comes you must give him some training before it comes … We shall be easier in our minds when rich if we have come to realize how far from burdensome it is to be poor … Start cultivating a relationship with poverty … For no one is worthy of a god unless he has paid no heed to riches. I am not, mind you, against possessing them, but I want to ensure that you possess them without tremors; and this you will only achieve in one way, by convincing yourself that you can live a happy life even without them, and by always regarding them as being on the point of vanishing.”


On anger:

“‘Anger carried to excess begets madness’ … It is born of love as well as hate … The factor that counts is not the importance of the cause from which it springs but the kind of personality it lands in … The outcome of violent anger is a mental raving, and therefore anger is to be avoided not for the sake of moderation but for the sake of sanity.”


On friendship:

“The wise man … desires to have a friend if only for the purpose of practicing friendship and ensuring that those talents are not idle … Anyone thinking of his own interests and seeking out friendship with this in view is making a great mistake. Things will end as they began; he has secured a friend who is going to come to his aid if captivity threatens: at the first clank of a chain that friend will disappear … This explains the crowd of friends that clusters about successful men and the lonely atmosphere about the ruined … If there is anything in a particular friendship that attracts a man other than the friendship itself, the attraction of some reward or other will counterbalance that of the friendship … To procure a friendship only for better and not for worse is to rob it of all its dignity.”

“Choose someone whose way of life as well as words, and whose very face as mirroring the character that lies behind it, have won your approval. Be always pointing to him out to yourself either as your guardian or as your model. There is a need, in my view, for someone as a standard against which our characters can measure themselves.”


On death:

“Every day should be regulated as if it were the one that brings up the rear, the one that rounds out and completes our lives … If God adds the morrow we should accept it joyfully. The man who looks for the morrow without worrying over it knows a peaceful independence and a happiness beyond all others. Whoever has said ‘I have lived’ receives a windfall every day he gets up in the morning.”

“‘It is a very good thing to familiarize oneself with death’ … ‘Rehearse death.’ To say this is to tell a person to rehearse his freedom. A person who has learned how to die has unlearned how to be a slave. He is above, or at any rate beyond the reach of, all political powers. What are prisons, warders, bars to him? He has an open door. There is but one chain holding us in fetters, and that is our love of life. There is no need to cast this love out altogether, but it does need to be lessened somewhat so that, in the event of circumstances ever demanding this, nothing may stand in the way of our being prepared to do at once what we must do at some time or other.”

“At either end of [life] there is a deep tranquility … Death is all that was before us … I shall not be afraid when the last hour comes – I’m already prepared, not planning as much as a day ahead. The man whom you should admire and imitate is the one who finds it a joy to live and in spite of that is not reluctant to die.”

“When one has lost a friend one’s eyes should be neither dry nor streaming. Tears, yes, there should be, but not lamentation … Would you like to know what lies behind extravagant weeping and wailing? In our tears we are trying to find means of proving that we feel the loss. We are not being governed by our grief but parading it.”

“A great thing is to die in a manner which is honorable, enlightened, and courageous … No one is so ignorant as not to know that some day he must die. Nevertheless when death draws near he turns, wailing and trembling, looking for a way out. Wouldn’t you think a man an utter fool if he burst into tears because he didn’t live a thousand years ago? A man is as much a fool for shedding tears because he isn’t going to be alive a thousand years from now.”

“Someone will say ‘But I want to live because of all the worthy activities I’m engaged in. I’m performing life’s duties conscientiously and energetically and I’m reluctant to leave them undone.’ Come now, surely you know that dying is also one of life’s duties? … As it is with a play, so it is with life – what matters is not how long the acting lasts, but how good it is. It is not important at what point you stop. Stop wherever you will – only make sure that you round it off with a good ending.”

“No one has power over us when death is within our own power.”


On vice and desire:

“Natural desires are limited; those which spring from false opinions have nowhere to stop, for falsity has no point of termination … Whenever you want to know whether the desire aroused in you by something you are pursuing is natural or quite unseeing, ask yourself whether it is capable of coming to rest at any point; if after going a long way there is always something remaining farther away, be sure it is not something natural.

“Have done with those unsettled pleasures, which cost one dear – they do one harm after they’re past and gone, not merely when they’re in prospect. Even when they’re over, pleasures of a depraved nature are apt to carry feelings of dissatisfaction, in the same way as a criminal’s anxiety doesn’t end with the commission of the crime, even if it’s undetected at the time.”

“Show me a man who isn’t a slave; one is a slave to sex, another to money, another to ambition; all are slaves to hope or fear … And there’s no state of slavery more disgraceful than one which is self-imposed.”

“Drunkenness is nothing but a state of self-induced insanity. For imagine the drunken man’s behavior extended over several days: would you hesitate to think him out of his mind? … Drunkenness inflames and lays bare every vice, removing the reserve that acts as a check on impulses to wrong behavior. For people abstain from forbidden things far more often through feelings of inhibition when it comes to doing what is wrong than through any will to good … Add to this the drunkard’s ignorance of his situation, his indistinct, uncertain speech, his inability to walk straight, his unsteady eye and swimming head, with his very home in a spinning state of motion … Pleasures, when they go beyond a certain limit, are but punishments …”


On character and spirit:

“A good character is the only guarantee of everlasting, carefree happiness.”

“‘A consciousness of wrongdoing is the first step to salvation’ … For a person who is not aware that he is doing anything wrong has no desire to be put right. You have to catch yourself doing it before you can reform … Be harsh with yourself at times.”

“No one should feel pride in anything that is not his own … Suppose he has a beautiful home and a handsome collection of servants, a lot of land under cultivation and a lot of money out at interest; not one of these things can be said to be him – they are just things around him. Praise in him what can neither be given nor snatched away … It is his spirit, and the perfection of reason in that spirit … And what is it that reason demands of him? Something very easy – that he live in accordance with his own nature.”

“Greater power and greater value reside in that which creates (in this case God) than in the matter on which God works. Well, the place which in this universe is occupied by God is in man the place of the spirit. What matter is in the universe the body is in us. Let the worse, then, serve the better. Let us meet with bravery whatever may befall us. Let us never feel a shudder at the thought of being wounded or of being made a prisoner, or of poverty or persecution. What is death? Either a transition or an end. I am not afraid of coming to an end … for I shall never be in confinement quite so cramped anywhere else as I am here.”

“Bravery is the [quality of character] which treats with contempt things ordinarily inspiring fear, despising and defying and demolishing all the things that terrify us and set chains on human freedom … Loyalty, the most sacred quality [,] never corrupted by a bribe, never driven to betray by any form of corruption … Self-control, the quality which takes command of the pleasures; some she dismisses out of hand, unable to tolerate them; others she merely regulates, ensuring that they are brought within healthy limits; never approaching pleasures for their own sake, she realizes that the ideal limit with things you desire is not the amount you would like but teh amount you ought to take. Humanity is the quality which stops one being arrogant towards one’s fellows, or being acrimonious.”


On God:

“In each and every good man ‘A god (what god we are uncertain) dwells’ … And if you come across a man who is never alarmed by dangers, never affected by cravings, happy in adversity, calm in the midst of storm, viewing mankind from a higher level and the gods from their own, is it not likely that a feeling will find its way into you of veneration for him? … Into that body there has descended a divine power. The soul that is elevated and well regulated, that passes through any experience as if it counted for comparatively little, that smiles at all the things we fear or pray for, is impelled by a force that comes from heaven.”

Buy Letters from a Stoic on Amazon.


Sin Nombre: relevant, intense, heart-wrenching

February 15, 2010

Buy Sin Nombre on Amazon.

Sin Nombre is the best film I’ve seen in a long time. It’s also the first Spanish-language movie I watched without subtitles. They weren’t available at the pirated DVD market where I bought the disc. Fortunately I had no trouble understanding.

SPOILERS DISCLAIMER – mad spoilers follow.

If you don’t need a plot summary, jump to the analysis below.

The film starts by introducing us to Casper, a member of the Mara Salvatrucha gang (MS-13), in Tapachula, Mexico. Then we meet Casper’s young friend, Smiley, who couldn’t be older than 12. Casper takes Smiley to his MS-13 initiation, a 13-second beat-down from the gang. We also meet gang leader Lil’ Mago, who it’s worthy of mention is covered with tattoos, a prominent MS drawn from above both temples all the way down to his jaw-line and chin.

Then we flash to Tegucigalpa, Honduras, to meet the beautiful Sayra. Sayra meets her father for the first time in what’s implied to be a long time or maybe ever. She’s to join him and his brother on a journey to the United States, from where the father had just been deported. He wants Sayra to join his new family in New Jersey.

Next we see Casper visit his girlfriend, Martha Marlene, at her place for a textbook example of a Latin love session. After the loving, Casper takes Smiley to the gang hideout where, under Lil’ Mago’s direction, Casper helps Smiley execute a rival gang member to complete his initiation. (Then they feed the deceased to dogs!)

The plot develops two storylines: the first being Sayra’s resentment toward the father she never knew, who she believes never would’ve returned for her if he weren’t deported; the second being Casper’s neglecting his responsibilities to the gang because he’s spending more and more time with Martha Marlene. She’s increasingly angry with him because she feels he’s hiding something from her, which he is in trying to keep her separated from his gang life. In fact, she knows him as Willy instead of his gang name, Casper.

The latter conflict culminates when Martha Marlene crashes a gang meeting in a cemetery in which Casper (Willy) is about to be disciplined for neglecting his duties. Willy tries to escort her out of there, but Lil’ Mago overrules. He insists on showing her out while Willy gets his 13-second stomping. Away from the gang, Lil’ Mago tries to have sex with Martha Marlene, citing ‘generosity’ as a crucial element of friendship. When she refuses, he tries to rape her. In the struggle, he accidentally kills her. Casper has to accept it because Lil’ Mago is the boss and devotion to Mara Salvatrucha trumps all else.

This particular MS-13 “clique” earns much of its income from the Bombilla, the train station in Tapachula which sits on the border with Guatemala. All the Central Americans migrating to the US pass through the Bombilla to jump on trains headed north to the Texas border. The local MS-13 gang robs the migrants on their way north.

Lil’ Mago had Casper and Smiley accompany him for one of these robbery trips. So the three are on top of the train, robbing each and every passenger for everything they have when Lil’ Mago comes across the beautiful Honduran, Sayra. He gropes her and forces her down in what appears to be an imminent rape. Casper, still not over the loss of his love at the hands of Lil’ Mago, and watching him unleash on another innocent girl, whacks him with his machete, cutting through half his neck.

Lil’ Mago falls from the train dead and Casper orders Smiley off. Here the main plot has developed. Sayra feels indebted and befriends Willy (he’s not ‘Casper’ anymore). Smiley goes back to the gang and tells them what happened. They order Willy killed and appoint Smiley to do it, along with everybody else in their clique plus the others all along the train route, throughout Mexico and the US.

So Willy’s been marked for death by the largest gang in the Western Hemisphere. Noting Sayra’s growing attachment to him, Willy jumps from the train as everyone’s sleeping but she awakes and jumps after him, leaving her father and uncle behind. Willy then resolves to go for life redemption by helping Sayra safely cross the border into the States. There’s action, there’s hope, there’s sadness, there’s beautiful (and ugly) Mexican culture and countryside, and there’s stimulating footage of MS-13 culture.

Just as Willy sends Sayra swimming across the Rio Grande, waiting his own turn, the gang appears and guns him down on the riverbank. Smiley scores the first shots. The final scenes show Sayra at a Texas Sam’s Club calling her dead father’s family in New Jersey (her dad died after they split up), her uncle starting a new attempt to cross the border from Guatemala into Mexico, and Smiley getting “MS” tattooed inside his lower lip.

Powerful shit!


Clichés

I’m going to start with a few petty gripes, specifically the film clichés.

I don’t know about you, but I am burnt out on the accidental death via head-hitting-the-rock-or-metal-bar-or-whatever. Martha Marlene died after Lil’ Mago kicked her in the ass, sending her head into a rock. I’m tired of that shit! I attribute that to laziness or lack of nerve on the part of the writer. If you can’t create a motivation to kill her intentionally, don’t go to the tired-ass playbook. Maybe he could’ve successfully raped her, admonished Casper (Willy) for not sharing, and then she commits suicide. Anything but the head-accidentally-hitting-the-rock bit.

Aside from the scene where he helps Smiley execute a ‘chavala’ begging for mercy, Casper’s never seen as the vicious gangster he must’ve been to have a career with MS-13. He didn’t pistol-whip anybody on the train, or rape or rob anybody for the whole film. Granted, his transformation may have started long before in his falling in love with Martha Marlene, but it was still too sympathetic in the marked contrast between his innocent white face and the viciousness of the other MS-13 gangsters.

It turns out I only have two gripes and one kudos to give regarding happy endings. American films (which this is), Hollywood, and American audiences are incredibly biased toward happy endings. When I first heard of this film, I read all about it and I could’ve sworn I read that Casper (Willy) arrives safely in the US. The sad ending made it a better film.

Mara Salvatrucha

Many may not know, but MS-13 is the largest gang in the United States. It started in a Central American section of Los Angeles to protect Salvadorans from Mexican and black gangs. It’s since exploded to also include Mexicans with chapters in the United States, Mexico, Central America, and Canada. They’re known for their tattoos. There are a dozen or so MS-13 videos on YouTube, some featuring MS-13 music. Here’s one:

Immigration & human rights

I’ve stated my support of immigration in this blog before, but the images and visualization of the reality facing migrant workers in this film re-awakened my interest in the cause. The human rights issues and violence along the US-Mexico border is horrific. Girls are forced into prostitution; gangsterism thrives. What is the fucking point???

All these people want to do is work in America, the land of opportunity. Their own countries were flawed in their design so the same opportunity doesn’t exist. Migrants’ big mistake in life was being born on the wrong side of the border, to a family in the wrong social class. I’ve known many illegal immigrants and I admire their work ethic. And I’ve known a lot of lazy and incompetent Americans who live luxurious lives in comparison simply because they were born on the other side.

Last year I read Ben Casnocha argue immigration is a solution to poverty. In that post, he mentions the idea of “free movement of people” among countries. I’m pro-immigration, but I wasn’t eager to jump on board when I first read that. Now I’m more receptive. There’s rarely reform without an extreme position underneath. If free movement of people among nations seems extreme to you, it doesn’t to me.

Why should I have free reign to move wherever I want in Latin America to reap the fruits of these countries using my gringo-ness, my native English, my height and blue eyes, my American education, etc., while Latinos born on the bottom in these countries can’t do the same in my country?

I’ll now count myself among the extreme camp of free movement of peoples among nations. I’d love for it to be a regulated process of accountability, but I’m in the camp regardless. Michael Clemens is the most outspoken advocate and dedicated researcher for this position.

Love in Latin America

Having written extensively about Love in Latin America, I’m not covering new ground here. But the film captured that aspect perfectly.

I was sad as fuck watching Sin Nombre. Despite the few clichés, the film established credibility with me in its depiction of Willy’s and Martha Marlene’s relationship. Their first scene in her bedroom goes exactly as I’ve found love to go down here. She slapped him. They made love. She accused him of cheating and threatened to cut his penis off. They cuddled and professed eternal love. Despite her getting angry with him in other scenes over ‘disowning’ her (kinda difficult to translate “desconocer”), the chemistry and time spent together made me long to be in love again.

Edgar Flores stars as Willy, and he was excellent in the role. Willy’s love for Martha Marlene was convincing and I could feel his pain when his gang killed that love – the same gang Willy defended his whole life. And just as it seemed he might have love with Sayra, they killed him. I look forward to more of Flores’ acting.

Foreshadowing and magic realism

Magic realism is prevalent in Latin film and literature, but not so much in Sin Nombre. However, Sayra always alludes to an old witch in her neighborhood who predicted she wouldn’t arrive in the States in the arms of God, but The Devil. I’d call that magic realism and also foreshadowing, which is prevalent throughout. Willy consistently warns Sayra that he’s a dead man, which proves correct. And in a great foreshadowing scene, Willy and Sayra come across MS-13 graffiti that reads something like “Lil’ Mago – don’t worry, El Casper won’t pass…”

Notes:

  • Machetes – Willy killed Lil’ Mago with a machete, which was pretty bad-ass. The use of the machete in Latin America is under-represented in film.
  • Mexican / Central American gangsters and face tattoos (politically-incorrect warning) – The older I get, the more I err on the side of genetics over upbringing, nature over nurture. In his autobiography, Malcolm X says whites are correct in believing blacks are born with dancing in their blood, and there are dozens of other cases like the higher per capita rate of AA meetings in Irish neighborhoods. In looking at the images of MS-13 gangsters, I couldn’t help thinking they look like the Indians in Apocalypto. Was it in the genetic DNA dating back to the Mayans and Aztecs to paint their faces up and commit bloody atrocities? Hey, I gave you the political incorrect warning.
  • The film was produced by Gael Garcia Bernal (Motorcycle Diaries) and Diego Luna (Milk), who co-starred as best friends in Y Tu Mama Tambien, another kick-ass film set in Mexico.
  • Sin Nombre won Sundance Film Festival awards for directing and cinematography (Director Cary Joji Fukunaga and Cinematographer Adriano Goldman). The film wasn’t nominated for any Academy Awards because the Oscars suck shit.
  • The Sin Nombre soundtrack only features the score, but the songs from the film are great. Here are two:

Dick el Demasiado – Flaca de las Coloradas

Vakero – Ya No Hay Gente

Amandititita – Mecánico

Buy Sin Nombre on Amazon.

Visa Americana – EEUU United States


My AIESEC Experience

January 19, 2010

Below is a testimonial I wrote for AIESEC St. Louis chapter at my alma mater. They’re doing hardcore recruitment in the face of extinction.

Greetings!

I started looking for work in Latin America on my own while completing my MBA at UMSL, to no avail. I joined AIESEC and scoured the paid internships in the organization’s database. I applied to jobs in Mexico, Colombia, Peru, Brazil, Argentina, and Chile. After two months of sending resumes, I was offered a marketing position in Arequipa, Peru. I moved there another month later. I was placed in a position in my field of study, in Latin America, in 3 months.

I was greeted at the airport by six AIESEC members from the Arequipa chapter. They threw a party for me that evening, which over forty people attended. They introduced me to their campus, the nicest in town, and set me up in an apartment before I ever saw my new office.

I went to work for Laboratorios Portugal, one of the larger health and personal care laboratories in Peru. They compete on price against American and European brands in product lines including sunblocks, skincare creams, generic pharmaceuticals, vitamins, and herbal supplements.

In my position, I was responsible for everything necessary to sell in non-Spanish speaking markets. I developed the English brand for their herbal supplements line. I translated the cosmetics copy for bilingual packaging and brought both lines’ labels into adherence with FDA guidelines. I had corporate busy work such as sourcing products in China, working local promotional events, translating, and more. I became fluent in listening, speaking, reading, and writing Spanish.

I don’t believe I’d have been offered a job in America in which I’d gain as valuable experience as I gained with AIESEC. The job didn’t pay much in US dollars, but it was enough to live on in Arequipa, Peru. After six months, the company offered me a permanent position and substantial raise. I got a big apartment with two other visiting AIESECers, who taught me a great deal about web development.

I resigned the position but still work with the firm as an independent broker, earning commission only on what I sell (Peruvian Naturals line on Amazon.com). I sell websites for the AIESEC guys I lived with, and I’ve started an English language business in my new city, Bogota, Colombia. The quality of both the experience and contacts I gained through my AIESEC experience are indispensable, especially considering how little time and energy I put into membership.

In 2007, my last year in school, UMSL was ranked among the top ten International Business schools in the nation by US News & World Report. That ranking’s not only due to UMSL curriculum and professors, but also the large international student community and the resources the university allocates toward organizations like AIESEC and International Business Club. Being involved in AIESEC is a necessity for any UMSL student looking to take full advantage of his or her business education.

¡Saludos de Chapinero, Bogotá!

Colin Post
BSBA 2003, double emphasis in Marketing & Management
MBA 2007
www.expat-chronicles.com


Benjamin Franklin’s 13 Virtues

January 16, 2010

As told in his autobiography, Benjamin Franklin developed a set of virtues to live by as a young man. Initially, he tracked his weekly and month performance on a daily log every night. He found these to provide happiness in life, or felicities.

Franklin was an advocate of religion, but didn’t take to any particular brand with fervor. He made regular contributions to the Presbyterian Church but never attended services.

It looks like the old 12-step program isn’t going to work out for me. If not a real deal Higher Power, these virtues could serve to moderate my behavior if practiced.

1)      Temperance – Eat not to dullness; drink not to elevation

2)      Silence – Speak not but what may benefit others or yourself; avoid trifling conversation.

3)      Order – Let all your things have their places; let each part of your business have its time.

4)      Resolution – Resolve to perform what you ought; perform without fail what you resolve.

5)      Frugality – Make no expense but to do good to others or yourself; waste nothing.

6)      Industry – Lose no time; be always employed in something useful; cut off all unnecessary actions.

7)      Sincerity – Use no hurtful deceit; think innocently and justly, and, if you speak, speak accordingly.

8)      Justice – Wrong none by doing injuries, or omitting the benefits that are your duty.

9)      Moderation – Avoid extremes; forbear resenting injuries so much as you think they deserve.

10)   Cleanliness – Tolerate no uncleanliness in body, clothes, or habitation.

11)   Tranquility – Be not disturbed at trifles, or at accidents common or unavoidable.

12)   Chastity – Rarely use venery but for health or offspring, never to dullness, weakness, or the injury of your own or another’s peace or reputation.

13)   Humility – Imitate Jesus and Socrates.


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