So, dear students, in last session, we were discussing about decision making and various costs related to decision making. If you remember, we have already discussed about relevant costs and sunk costs. Today, we will talk about introduction of new product, we will also talk about closing down a factory temporary, that is shutdown cost and then we will discuss about joint products and whether to process a joint product or no. To take a very brief recap, what do you understand by relevant cost and can you give any example of a relevant cost? Just think over, I think you are getting it right. So, relevant cost is that cost, which is relevant to the decision. In other words, that particular cost really affects the decision making. For example, if company has spent lot of money on R and D of a product, a new product has been developed technologically, market research has also been done. Now, the decision is to be taken about whether to launch a product or no. So, what will be the relevant cost and what will be the sunk cost? Can you think of? So, the cost on R and D, the cost on market research, both are sunk costs, though they are very important, they have already been incurred. So, they should not have any role in deciding whether the product should be commercially launched or no. The decision about launching of the product should solely depend on how much surplus the product will generate on its launching. So, we will look at the cost of the product and the revenues from the product. Because you take a decision of make or buy, which also we have discussed in the last session. So, we are making a particular product at say 15 rupees per unit. There is a offer from the supplier that supplier is willing to supply it at 12 rupees. Shall we go for buying or we should continue to make at 15 rupees? How will you take a call? Again, think of what is a relevant cost and what is a sunk cost. So, what is a relevant cost in this case? Is this 15 rupees? 15 rupees is a total cost of making versus we have 12 rupees as a cost of buying. Is this 15 rupees relevant for a make or buy decision? The answer is no, because we already have facilities. We should not look at the total cost, we should rather look at a variable cost. So, if we break down this 15 and it is told to you that 7 rupees is fixed and 8 is variable and 12 rupees is a cost of buying. So, now what is relevant? 8 rupees which is a cost of variable cost of production is a relevant cost and it should be compared with 12 rupees which is a cost of buying. So, now you can see that 8 rupees becomes relevant for the decision and we may decide that we should make rather than buy at 12 rupees. 7 rupees which is a fixed cost is to be considered as a sunk cost in this case. So, sunk cost is that cost which is already committed or which has already been incurred and is not going to change because of the decision. So, it should not be considered while taking the decision. So, I hope it is clear to you and make or buy decision is also clear to you. So, let us go ahead now.  Now, many times what happens in a business scenario? It becomes difficult to run a particular product because of the temporary downturn. So, the demand for the product falls and once the demand falls, the product becomes loss making. In such case, company has to decide whether the production should continue or not. So, if so happens that the revenues you are generating are below the total cost. Is it advisable to continue the production? Answer will be yes because we do not look at the total cost. We should rather look at the variable cost. If we continue our example that 7 rupees is a fixed cost, 8 rupees is a variable cost. So, 15 rupees is a total cost. We used to sell the product at say 18 rupees initially. Now, the cost, the selling price of the product comes down to 15. So, we are not making any profit. It further comes down to say 13. Shall we make it? Answer is yes because we are able to produce at 8. So, even if we sell at 13, we at least generate some contribution. We will win loss, but if we close it, the losses will be to the tune of 7 rupees per unit which is the fixed cost. So, since the fixed cost does not change as long as the product contributes to the fixed cost, it may be advisable to make it. But further what may happen is, if we decide to temporarily close the product, close the product line or the production of a particular product, there is some change in the fixed cost. How will you define fixed cost? In the normal cost, we say that fixed cost is that cost which does not change with the level of activity. So, irrespective of you need certain cost like rent, say, maintenance are incurred. But what happens is, if we close down the production facility temporarily, we are not talking of a permanent decision, but when we temporarily close down the production facility, some of the fixed cost may go down. For example, some of the employees working there, we can transfer to other divisions. We may decide to keep the plant off, so our fixed power cost may go down and so on. But some of the fixed cost may increase like we may need more security because even if the plant is closed, some amount of security is required to ensure that plant and machinery is properly secured. So, there might be some changes in the fixed cost. So, what we have to look is the fixed cost which is incurred in case the production is on and fixed cost if we shut down. The difference in this fixed cost also becomes relevant. So, we look at this difference plus the variable cost and that is compared with the revenue for taking a decision on shut down. Now, let us see what is the formula. So, here we can see that if the selling price is above the variable cost, then it is better to continue. But as we discussed, some of the fixed cost also slightly changes. Now, the decision is based on the contribution after adjusting the difference in fixed cost. So, now let us try to do one or two problems on the same, so that it is little more clear to you. So, here you can see in the excel sheet the details of the problem. The fixed cost at 75 percent capacity is rupees 25,000, additional fixed expenses if the factory shut is 10,000 and fixed expenses with the factory shut down is 3,000, production at 75 percent capacity is 15,000 unit, contribution per unit is 2. Now what has happened is demand is very low and company is able to operate at only 40 percent of the capacity. Is it advisable to shut down temporarily? That is the question. So, how will you take a call? Now, here you can see that as long as we are operating at 75 percent capacity, our fixed costs are 25 and as you know fixed cost do not change with the level of activity. So, even if the capacity is 50 percent or 40 percent or 30 percent, the fixed cost will remain the same. But if we completely close down the facility for temporary time, then the fixed cost will come down to just 3,000. Because we may transfer our fixed employees, we may close down our power facility, we may close down some extra cost which are incurred on cleaning of the plant, the time of manager etcetera will get saved. But we have to incur some extra fixed costs which are to the tune of 10,000. Let us first try to look at the profitability in case we continue to operate. So, now you know that the contribution per unit is 2 rupees. Now, let us look at what happens at a different levels of activities. Suppose we work at 75 percent, then how many number of units do we make? They are given that production at 75 percent capacity is 15,000. So, how much contribution do we generate? 15,000 into 2. So, 30,000 comes to the kitty of the company. That is a contribution, I will write in full for more clarity. From this contribution, we have to pay our fixed costs. And how much are the fixed costs? It is given that the fixed costs are 25,000. So, at 75 percent capacity, the unit operates at a profit of 5000. I hope it is clear to everyone. Now, currently they are not able to operate at that capacity. The production is down and it is only at 40 percent. So, first we have to calculate what will be the number of units at 40 percent. So, number of units come to 8,000. Is it right? So, how much will be the contribution? 2000 per unit. So, it comes to 16, correct? What will be the fixed costs? Fixed costs remains at 25. So, the profit is minus 9. Or in other words, there is a loss of 9. Is it right? Now, it is looking like, it is almost impossible to increase the level of activity to a level of taking the plant to profit. So, if you operate at 30 percent, 40 percent or even 50 percent, we are likely to be at loss always, right? So, one option company has is, instead of running the plant, temporary close it down, which will bring down the fixed costs from 25 to 3. But there will be additional fixed costs to the tune of 10. So, how will you decide? Are you able to take a call? So, by closing down, we lose the 2 rupees per unit contribution, but we save on fixed cost, but we also incur 10,000 more on fixed costs. So, let us look at the solution. So, we calculate the revised fixed costs. You know that the total fixed cost currently is 25. It will reduce to 3, right? But extra fixed cost of 10 is incurred. So, essentially we are reducing 7,000 from it. So, 25 minus 10 plus 3, that is 25 minus 13. So, we will continue to incur 12,000 and the contribution per unit is 2 rupees. So, 6,000 units become that level of activity, where whether we operate or not operate, the cost will remain the same, right? So, that is considered as a shutdown point. Are you getting? Now, carefully look at the formula. So, we say that total fixed cost minus shutdown cost. So, what is shutdown cost? Because after the closure, the fixed cost will come down to 3 plus extra fixed cost of 10. So, essentially 13 is a fixed cost on shutdown, 25 is a normal fixed cost. So, we saved 12,000 by taking a decision of closing down and we divided by per unit, which is per unit contribution, which is 2. So, equivalent to 6,000 units, we were able to generate at a 6,000 units, we were able to generate a contribution of 12, which we are saving. We can just go back and check what we have done. Suppose if we take units at 6,000, what will be the profitability? So, at 6,000, what will happen is the contribution will be 12, fixed cost will continue to be 25. So, it leads to a profit of minus 13. In other words, it leads us to a loss of 13. Now, by taking a decision of closure, we have been able to bring down our fixed cost to 3 plus 10, that is 13. So, even if we close, the loss will be 13 and if we continue also the loss will be 13. So, 6,000 units is that level, this is the number of units. So, 6,000 units is a level where we run or not run our losses remain at 13. Suppose our number of units are more than 6, let us say our number of units at 8, then our loss is 9. So, the loss will go on increasing as the number of units fall at 6,000, the loss becomes 13,000. If the number of units fall below 6, then our loss will be more than 13. So, it may be better to keep our plants shut rather than continue to incur losses more than 13,000. So, 6,000 is a shutdown point. In other words, it is that level of activity where we need not have to run the plant, it is better to shut down at that level and below that level. So, only if we feel that demand is likely to be more than 6, then we take a call to continue. Of course, nobody would like to run in loss, this is a temporary measure, the demand is very low. So, only in such cases the decision on shutdown point becomes level. Now, let us look at the next concept, I hope the shutdown point issue is now very clear to you. Now, the next is about introducing of a new product. Now, what happens is after certain time the life cycle of the old product, product is no longer the old product remains profitable for a long time and company has to decide on a launching of a new product. So, what are the factors considered? The first is customer should have interest. So, we will look at the market research and see whether the customers have interest. Second there should be sufficient and sustainable demand because only once in a while customers have interest is not enough, we should have a sustainable demand of such level where we are able to make profit. If both the conditions are made then it make make sense to introduce a new product. This is a very simple decision earlier we have discussed it when we talked about relevant cost and sunk cost. So, I think it will be clear to you. Now, the next concept which we discussed is known as joint products. Many times what happens is from one production process instead of one product coming out two or more products come out and most of them are of similar importance then they are called as joint products. Can you think of any example of one production process giving more than one products? Each one of us operates or uses some vehicle. Vehicle runs on which fuel either petrol or diesel in most cases in some case may be gas. So, where all from we get this petrol, diesel or gas? Of course for us it is from petrol pump, but where does it get manufactured? I think you all know it gets manufactured in a refinery. So, crude oil is refined and we get petroleum products, but is there a separate process for petrol or separate process for diesel? The answer is no. From the crude oil when the refining activity is done simultaneously number of products emerge. They include petrol, they include diesel, they include gas sometime they include other petrochemicals. Of course they may require slight further processing, but basic process is common. So, these are the examples of joint products. Can you think of any other example? So, when one or more product is separated in the course of same processing operation and not that only one product is important, many products are important then it is considered as a joint product. They will generally require further processing. Here is one more example, in coke production, coal becomes a raw material and not just coke usually sulphate of ammonia light oil. So, we get also emerge from the same process, so coke, sulphate of ammonia and light oil all three are considered as joint products. Same process we have already discussed, we get petrol, diesel, gas and joint products. Here pictorially it is shown, so we get crude oil which is extracted from the earth either below the sea or above the sea. So, we get the crude oil then it is refined in the refinery.  So, we have two set of costs one are the joint costs which are common for petrol diesel gas then on each product separate costs are incurred. So, it becomes necessary that the joint costs which are the costs of refining process are properly charged to petrol and diesel we will see how they are charged. So, after separation point then there is some processing and the products are ready for sell. Now, what happens is sometimes from the same process more than one products emerge, but they are not of equal economic importance. So, one product is very important in such case that one product which is important is called as main product other products also emerge, but they are of subsidiary important they are not so important then those products are called as by products. So, can you think of some example of a by product sometimes main products could be joint products like from refining you get petrol diesel gas they are the main products but you may also get some other products which are not so important economically their prices are much lesser. So, they become by products. So, can you think of any example of a by product if you have seen any machine shop whenever any machining activity is done on lathe or any other equipment usually some scrap gets generated the scrap consists of metal. So, it has a sellable value, but that value is no way comparable to our finish goods it is more like a raw material or more like a scrap to be disposed of at a relatively less value. So, that metallic powder which gets generated is a by product whereas the product which we are making from the lathe is the main product. One more example we were talking of the coke manufacture. So, we discussed that from the while we manufacture coke here we have seen it. So, in coke manufacturing we get sulphate of ammonia and light oil which are considered as joint products, but simultaneously gas and tar also comes out that is not so important. So, it is considered as a by product. In lumber mills you know where the wood is cut lot of saw dust gets generated and it can be sold out that saw dust is a by product. Again in a cotton cleaning process when the cotton is being cleaned the cotton seed is taken out and then from the cotton seed oil is extracted and then the remains become a good food for animal, but that cotton seed which is removed from the cotton in the cotton cleaning process is usually considered as a by products. Same way when the coconut oil is taken then the coca shells which remain they become the by products. So, variety of examples can be given in fact most of the manufacturing processes do give a give some scrap or do give some minor important products they are considered as by products. So, here are some of the important terminologies any process that generates two or more equally or equivalently important products then such are called as joint products and that process is called as joint product process. The cost which are incurred for the joint process before split of point they are considered as joint product cost. So, split of point it is that point where those individual products can be identified and they are separated. So, up to that point you have one process from there the two or three products become separate and some more processing may be done that point is called as split of point. As we were discussing what happens is up to joint product level the cost come together. So, it becomes necessary that that cost is appropriately charged to the joint products it is not possible to identify them on one to one basis we have one joint cost that requires to be extracted. So, what are the different methods the easiest method is physical units. So, if we know that from a refining process let us say petrol and diesel come out only two products come out and we know that petrol say one lakh liters of petrol is manufactured and one lakh thirty thousand liters of diesel is manufactured. Then the total joint product joint cost may be charged in the ratio of one lakh to one lakh thirty thousand to petrol and diesel respectively. This is one method but the problem with this method is that both the products then get the same cost per liter or per unit which may not be fair. So, petrol may be more costly diesel may be less costly we may also get a very refined form of fuel known as aviation fuel which is for airlines that may be even far more costly but physical unit methods methods allocates the cost same cost per unit basis. So, though it is very simple the cost which is charged may not be appropriate considering the economic realities. So, there is another method which is known as relative sale value. So, here the sale value is taken as a base and from the sale value post processing costs or after split off costs are reduced. So, we get the relative sale value sometimes we know sale values at split off point then it is good we can directly charge the cost based on the sale value of split off point when the sale values are not known we may calculate relative sale value. Sometimes relative sale values are also tough to calculate but net realizable value can be found. So, all the three I mean physical units is of course based on the physical units remaining three are based on the sale value of those products. So, here is a little bit of comparison we have already discussed it. So, physical unit methods actually goes by number of liters or weights whereas sale value or relative sale value methods look at the economic value at split off point and then economic value is estimated using either the sale value at split off or calculating the relative sale value at split off. There are also other methods like constant gross profit method. So, we look at the gross profit of the earlier period and that gross profit is reduced from the final sale value to arrive at an estimated sale value. In case of net realizable value what is done is post separation cost since they are known they are removed from the sale value. So, we get that the realizable value at split off point and then that is used as a basis for separation. So, this was about the discussion about joint products. Now, let us look at the some of the problems that will make it more clear to you how are the joint cost charged. Now, here you can see that company produces the following products by using 6000 liters. The raw material cost is 20 per kg and 4 products emerge M row, Bum row, Cam row and Dumb row. The total output you can see is 5000. The total production cost and cost per unit is required to be calculated. Now, here the basis given is only the physical units or the weights in kgs. So, it is very simplistic we can get the total cost and then divide it appropriately based on the output.  We will say it is a joint cost so, it is 6000 into 20 or 5000 into 20. So, it is 6000 into 20 because the cost will be incurred on all the units and now this cost of 120 should be charged in the ratio of output. So, these are the number of kgs of output. We know that the total cost is 120,000 for output of 5000. Now, we will try to charge the cost in the proportion of weights. I think there is some problem with the formula numerator should all I should all add the dollar and now we will try to take a sum is it right. So, we are able to charge 30,000, 48,000, 18,000 and 24,000 this is in the proportion of the output in kgs right and this is the cost in rupees. Now, is it a good way of good method or there is some problem with this method? What is the shortcoming of this method? Shortcoming is that per unit cost will be same we will see how much is per unit cost. So, it is 24 rupees for AMRO and you can see that for BAMRO, CAMRO and DAMRO all the products it is exactly same 24 rupees. So, here there is a problem that it might be that a product say AMRO may be more important, but we come out with a cost which is same because we charge it on the basis of number of units or the weights. Let us see another methods also now one more problem here we have two products P 1 and P 2 we are going to use the contribution margin method the joint costs are given marginal cost is 9000 marginal or variable cost fixed cost is 5000. Now, here the two products are there number of units is 200 for P 2 it is 150 per unit price that is the selling price is 50 and 40. Now, let us try to solve it how to solve anyone can think of something first we will try to find out how much is the joint cost. So, we are given that the joint cost is 9 and 5. So, if we make a sum you can readily see it is 14 now the issue is how to charge this 14 one method which we have already seen is going by number of units. So, let us try to see what happens if we go by number of units. So, we know that for the product P 1 the number of units are 200 for P 2 it is 150. So, the easiest way is to charge 14000 on the basis of numbers. So, total is 350 and the total cost is 14000. So, 14000 upon 350 into 200. So, we are able to charge 8000 to P 2 and 6000 to P 1. So, exactly 14000 is allocated, but is it a fair method not so because if we try to go by per unit we can see that per unit cost is 40 P 1 also 40 P 2 also 40 and total is 40. Now, you can see that P 2 selling price is only 40 P 1 the selling price is 50 perhaps P 1 has more economic value, but is not reflected on per unit method. So, we have to do something. So an improvisation is done in the form of what is known as contribution margin method. So, in contribution margin method what is done is what we do is we know separately the marginal cost and variable cost. Now marginal cost that is variable cost and fixed cost. Now marginal cost is more linked to the quantity so marginal cost that is here you can see marginal cost was 9 and fixed cost was 5. So, marginal cost is charged on the basis of number of units which is 250 and 150. So, it is more a raw material cost so 9000 we have divided as 200 by 350. So, you get 5143 and for P 2 you get 3857. And fixed cost instead of apportioning on the basis of number of units it is apportion on the basis of their contribution margin. Now, how will you know the contribution margin you know that it is selling price minus variable cost. So, here there is a working node first we have calculated the revenue of the products. So, revenue we are aware that 200 units are sold at 50. So, if you multiply you will get 10000 here and 150 into 40 you will get 6000. So, for products P 1 and P 2 the sale revenue is 10 and 6 then we have calculated the marginal cost which is charged on the basis of number of units. So, from sale revenue the marginal cost is reduced or the variable cost is reduced which gives us a contribution. Now, here you can see the contribution is 4857 and 3143 the total is 7000. Can we verify this total answer is yes we will just try to verify it right now.  So, we know that from 16000 9 is a marginal cost. So, 7000 is 16 minus 9 that is 7000 is our contribution. Now, this is a surplus which is coming from each of the products then we will charge it we will take that as a base and based on 4857 and 3127 we will try to allocate the fixed cost which is 5000. So, fixed cost is allocated. Now, let us try to work out the profit. So, if you now calculate the product profitability now we are doing it by so joint costs are charged by contribution margin method which we have just learned. You know how to calculate profitability we do sales minus variable cost that gives us the contribution and contribution less fixed cost gives us the profit. Now, how much is a variable cost of P actually speaking we do not know, but we have worked it out we have estimated. So, we will go by that for P1 and for P2 we have calculated it as 5143 and 3857 and we also know their sales which is 10000 and 6000 we will also do total parallely we have already done it, but I am just showing it more clearly. So, now we get 4857 and 3123 as a contribution from this we will reduce the fixed cost again basically the product fixed cost were joint they were not known individually, but we have worked it out on the basis of ratio which was calculated. So, it is 3469 and 1531 you can see that the more fixed cost is now born by P1. So, now you can know the individual profitability of the product which is 1388 and 618. Now, if we took total we can see the totals which were known to us because from 16000 revenue 9 was the variable cost you can go up and 5 was the fixed cost. So, 16 minus 9, 7 was the contribution minus 5, 2 was the profit. How much profit from each product was not known now by using the contribution method we have calculated the profit from the products. Now, suppose we were to do by the first method how what will be the answer we will also try by the alternate method. So, instead of joint costs charged by contribution method if we charge on physical units method. So, then what will be the answer is anyone of you able to work out? What will be the answer if they are charged by physical units method I will paste the values and then we will change if required. So, in physical units method what will happen is the distinction of total variable and fixed cost would not be there. We will have to take the total joint cost which we have already calculated that our joint cost based on number of units 14000 we will be able to charge 6 and 4. So, now sales is 10 and 6. So, we will charge the total joint cost. So, for P 1 it is in the ratio of 200 to 150. So, for P 1 we got 8000 and for P 2 we had got 6000. The total being 14000 now you can see here what happens is the profit. So, the profit is 2000 for P 1 and nil for P 2 why this happened? Because P 2 you can see here the selling price is much lower it is just 50 rupees. And when we charge on per unit basis we charge 40 rupees for both the products. So, there was a shortage we were not able to charge the same amount I mean we were charging the same amount 40 rupees whereas the selling price of P 2 is also 40. So, the profit was 0 for P 2 all the profit was shown attributable to P 1. So, contribution margin method gives a better way of charging the joint cost than physical unit methods. So, I hope these methods are clear to you. Now there is one more issue what happens sometimes in joint products is at a joint product level at a particular level we get the output we have to decide whether we should further process it or not further process it. Now, how will you take that decision just think over. So, suppose we have this products P 1 and P 2 we know that the joint cost as we have calculated it is known to us. But we have to take a call on processing or not further processing it how that will be done. So, how much is a joint cost let us say we use the physical unit method we know it is 40 rupees. If we use contribution margin method then it comes something else. But right now if we use the physical units method it is 40 rupees. Now there is a offer that we can further process it by spending say 15 rupees. And then the P 1 product in a advance form can be sold at a higher level.  You will realize that 40 rupees or 43 rupees or 47 rupees which we calculate here is a sunk cost it is not relevant. What is relevant is how much is a further processing cost and how much is a incremental revenue generated by further processing. I will give you an example let us extend this example. So, these facts continue now what is further given is instead of selling P 1 at 50 rupees and P 2 at 40 rupees it is possible to sell the advanced version of P 1 and P 2. So, now it is given I will just specifically write so that it is more clear to you. So, we are adding a further problem we have two products which you know they are P 1 and P 2 current selling price is 50 and 40. Now it is possible to make some advancements some more refinements in those products and then I can perhaps sell them at 70 rupees and 62 rupees. But to make it an advance product I will have to spend on further processing and the further processing costs are given to be 22 rupees and 13 rupees. Now does it make sense to sell or not sell and we already know that the joint costs are 40 and 40 if we use the physical unit method. So, shall we sell or not sell now what happens is for this decision this 40 and 40 is totally irrelevant we should ignore it because this costs are already committed. What is important is the further processing cost and the incremental selling price. So, if we are as this is given that advance product we are able to sell at 70 rupees and advance product P 2 we are sell able to sell at 62 rupees. We will compare this with their original selling prices. So, original selling price is 50 and 40. So, by further processing how much is the incremental revenue we were able to generate it is 20 rupees for P 1 and it is 22 rupees for P 2 and how much is the cost of further processing it is 22 and 13.  So, otherwise our P 2 was being sold at 40 rupees after further processing we are able to get 62 rupees. So, 22 rupees of value addition for a extra cost of 13. So, it is very very good to further process P 2 we will get 9 rupees more. Whereas, if we come to P 1 the incremental price was 20 rupees that is from 50 we were able to take it to 70, but the additional processing cost was also very heavy 22. So, the incremental revenue was minus 2. So, we should not further process it. So, this is the decision that in case of P 1 it is not good to go for further processing while for P 2 it is good for further processing. So, I think now the concepts of relevant cost and decision making are clear to you. We have discussed relevant cost, sunk cost, decisions like make or buy decision then we have also discussed shutdown point. We have now discussed the joint products various methods of allocation of joint products cost and in the end we have also seen further processing or not further processing of joint products. So, let us stop here in the next session we will go for budgeting and some more issues. Thank you so much.


From Hollywood it's time now for Johnny dollar dollar my name's king Malibu Sheriff's station. Did you leave a message here? Oh, yes, sir. I understand you're looking for Lorraine Broderick Broderick or Bradley. We want her I'm looking for a tool What's your connection? I'm an insurance investigator. We've been trying to find her all the way from Hartford We have to pay off a claim. That's to her claim. Yeah, that's right. An old man left her fifteen hundred dollars I can't tell him that he's dead Pretty quick like to be in on it tonight in every weekday night Bob Bailey in the transcribed adventures of the man with the action-packed Expense account America's fabulous freelance insurance investigator yours truly Johnny dollar Expense account submitted by special investigator Johnny dollar location Malibu Beach, California To the Eastern Trust insurance company claims division Hartford, Connecticut The following is an accounting of expenditure is during my investigation of the Broderick matter More expenses item fifteen thirty eight dollars even more transportation My trip here to Malibu Beach where I didn't even bother listening to another disgruntled hotel proprietor repeat a bad check story I knew only too well. I went directly to the Sheriff's station and deputy king Well, that's about the picture mr. Dollar Rain Bradley was at the end four days and checked out this morning use the name Bradley Lorraine Bradley She can't be too far ahead of you now I hope not this has been a long rough chase while she was at the end She took up with one of our local residents a man named Joe Tappan who lives over in the beach colony We know this much he drove her into town this morning when she checked out of the end Have you talked to this man Tappan yet? He hasn't come back yet. When did she leave the end? Oh about 10 this morning. I have to tune now. It gives him just about time Here's a house over in the colony. We've got a man there colony or down the road apiece They call it that because a lot of movie stars built beach homes there 25 or 30 years ago Movie colony right in the beach. Oh this tapin. Is he an actor? Yeah when he gets work, which isn't very often Mainly he keeps suntan Yeah, this king oh Good right away Tappan just drove up to his house. Let's go. I Went with deputy king to talk with Joe Tappan. He turned out to be a healthy muscular man in his mid 30s By the time we got there.  We brought him What? The rain of phony But are you sure about this sheriff as the man at the seaside in? Oh No, no, I don't believe it is this Lorraine Go ahead look at it. Well, that looks like Lorraine Yes, but I can't be sure She's older Well, I mean the girl in this picture is pretty young. It's her all right Mr. Dollar's been looking all over the country for Hartford, New York City up and down this coast. Well Come on. Let's go up to the house. I Thought I knew her pretty well. How long did you know her mr. Tappan? Not long But I knew her and I really did when did you meet her the first night? She checked into the seaside in four days then yeah Want something to drink no, no, thanks. Well, I think I'll have No, no, no, I don't want to talk about her. Well, you have to talk about her mr. Tappan But I'm sure there's some explanation about the check she'd have to explain quite a few checks right dollar Yeah, that's about it Mr. Tappan I understand you drove her into Los Angeles this morning. That's right. I took her to the Beverly Glen Hotel Did she check in there? No, she just dumped her luggage. She told me she didn't know whether or not she'd have to go to Chicago tonight Something about a house she owned there that had to be rented or so Did you leave her there at the Beverly Glen? No, she made a phone call and said that she had to meet her lawyer Did she say where a bar in Hollywood that the topper? I think it was on Coenca Boulevard I drove her over there and left her when was this a couple of hours ago. I guess about noon.  Oh, did she mention any names tell you anything about herself?  Uh-huh, and she told me that She needed to believe in something again There's someone And then she needed someone to believe in her Well, there wasn't any little boy or any husband mr. Tappan There have been a couple of men I've talked to a dentist in Hartford a businessman in New York who Felt the same way as you do about her. Well, even with what you told me. I believe what she said Why why she cried a little when she was telling me. Oh, I don't care how you look at me I I don't think that anyone could invent a story that tragic without some sort of basis a good liar I can see a story in a newspaper like that one and adapt it for his own needs But I am an actor sir and I can tell when other people are acting she wasn't she she Go on mr. Tappan. Look, I've got a suggestion for you. What's your name? dollar I've got a suggestion for you Try believing what people tell you sometime. It'll do something for that habit You have a bearing down with your eyes. Okay the next time I have two weeks off what see you mr. Tappan I drove into Hollywood with deputy King At the Beverly Glen Hotel a worried clerk was still wondering what to do with the 14 pieces of luggage Lorraine Broderick had deposited there earlier No, she was not registered at the hotel. No, she hadn't phoned in and given him any instructions Deputy King made arrangements for a man to cover the lobby in case she showed up to claim her things and we went into the Topper be gentlemen police Like to talk to the man who was on duty here at noon today. Oh, that's me sir. Is anything wrong now? This is mr. Dollar. We're trying to locate a woman who's been using the name Lorraine Bradley We were told she was in here around noon today Nope, I don't recognize that name sir about 5 5 dark brown hair brown eyes 24 years old or a black strapless summer dress and a stall No, no nobody liked that in all day now, so noon is a pretty slow time sir I'd noticed if anybody like that came in I think have you been in duty all that time I came on at 10 That's when we opened Are you sure this is the right place the top and this is the place? I wish I could help you sir, but I'm sorry excuse the William Well, we struck out one thing. What's that that luggage is the Beverly Glen? Yeah We'll keep an eye on it Lorraine Broderick did not return to the Beverly Glen hotel that day to claim her luggage the lobby was watched around the clock Her description was on the daily bulletin every policeman in Los Angeles was on the lookout for her. I Spend my time thinking about the little girl who had helped an old man sell newspapers one afternoon years ago Little girl with a face like an angel. I didn't feel good about this case But Joe Tappin felt worse when I went to see him again Well, hi mind if I come in What now mr. Dollar your girlfriend? What about her? I've been thinking about what you told us so So maybe you didn't understand what I told you not pushing my weight around Tappin But it seems to me you're a little stubborn in what you want to believe about her How old did she tell you her baby was that she lost in a car accident two years old all right? Two years ago. She was working for a dentist in Hartford, Connecticut. He was pretty much in love with her She left him flat to take up with a man in the brokerage business in New York She left him flat took sixty five hundred dollars when she did it There wasn't any baby in her life then her name was Lorraine Broderick. It still is Now would you like to see my file on her I brought it along. No, thanks. I thought I'd better prove that part was a lie So you proved it Mind if I sit down help yourself Thanks. Do you have anything else to tell me I? Suppose I do mr. Tappin since you don't seem to want to tell me anything. I'll just sit down, please I've heard every man who knew her describer and I think I can understand why they feel the way they do All I've got is a picture from a high school annual taken when she was 17. That was pretty good She's 24 now. She must be seven years better Anyhow you're my only hope now What? Lorraine Broderick can get away from the police for a while. Oh, yeah She's smart and clever and she can go right on doing the same thing. She's been doing all along stealing writing bad checks But that's police business My part is to find her and give her something one man left her an insurance bequest But it's become more than that now to find her and stop her maybe Look, they'll get her eventually Tappin Do you know what five years in prison can do to a woman like her? Do you because I know her and she passed a few bad checks doesn't mean that I'm responsible in any way You're right. It doesn't But you're involved just the same or you're different from just some hotel man who's been tilted.  What do you want?   You know it as well as I do Well, what do you want me to do? Apologize for meeting I'll be satisfied if you tell me where she is what and stop lying Not now look here. I've listened to all I mean broad rake never went to that bar in Hollywood You were talking about yesterday. You didn't drop her off there No one there has ever seen her and she's the kind who could walk around the polo grounds with 50,000 other people and still be seen Now where did you take her? Where is she now? Could it Could it be fixed so she wouldn't know I told you I suppose so She's at the Wentmore downtown Registered under the name of Evelyn Brady Oh this this beats me dollar. I just don't understand it. What do you mean? How what you told me is true. I know that But an hour ago She called me up here, and she said Joe. I love you Now that sounded true too And I told her that I loved her now. I'm turning her in What kind of crazy world do we live in? Expense account item 16 $14 cab fare from Malibu to downtown Los Angeles in the Wentmore Hotel a Second-rate old-timer on Figaroa Street a little different from the swank spots where Lorraine Broderick had lived so galey The clerk told me she was in 1302 I Walked down the hall to Lorraine Broderick's room the door was standing partially open all of the lights seem to be on Hello Hello anybody I'd found Lorraine Broderick at last only she was standing on a ledge outside the window All ready for a leap into eternity There'll be another intriguing episode of the Broderick matter tomorrow tomorrow the end of the trail for me and for Lorraine Broderick Join us. Won't you yours truly Johnny dolly doors truly Johnny dollars starring Bob Bailey is transcribed in Hollywood Written by John Dawson. It is produced and directed by Jack Johnstone Be sure to join us tomorrow night same time in station for the next exciting episode of Yours truly Johnny dollar Roy Rowan speaking


As everybody talks about drone Powell and what just happens in the press conference and raising rates and higher for longer If there's something that really got overlooked and that particular case is this two-year Treasury yield tops 5% for the first time Since 2007 now, I don't remember 2007 But what this little the big recession and that lasted for about a couple of years or so and we take all these Treasury yields That is one of those recession indicators. So here's what's happening why it's concerning me So the two-year year of Treasury yield on Tuesday topped 5% Rosewood's highest level since 2007 as investors assessed comments from Federal Reserve Chairman Jay Powell We said the central bank may need to increase the pace of interest rate hike again Now everybody's talking about this on youtube. I don't want to cover it But essentially this goes like this drone Powell is saying look we got we're not having everything under under control Inflation is is still not tamed. We need to raise rates for longer And higher and essentially faster. That's essentially what he's going to say And that's what he talked about today and then that will affect these recession indicators, which is the yield And it says here meanwhile the yield on the benchmark 10-year Treasury was little changed at 3.97 Why is this important that we're talking about a 10 and 2 years if we take a look at why charts is a link in the Description it says very simply like this A 10 and 10 and 10 and 2 Treasury spread that approach that approaches zero Signifies a flattening yield curve a negative 10 and 2 yield spread has historically Been viewed as a precursor to a recessionary period a negative 10 to spread is predicted every single recession from 1955 2018 But has occurred six to 24 months before the recession occurring and this actually started In 2022 of july So what it should look like as far as 10 and 2 if you just take a look at it This is the treasury yield curves and you got it from one month three months six one year This is what it should look like because as time goes on You know you take a little more risk right because over 30 years you want to do that Then we'll give you 4.70 as far as the treasury yield as far as what the government will pay That's what it's supposed to look like over time. However When these start to invert like we have right now Now you got the six month treasury yield of 5.22 And what that means is like look, we don't know what's gonna happen the next six months. What's your 5%? Just give us some cash. We've got to bail ourselves out and then over here for the for the well That's 30 year 10 year. It's at 3.9. That's not what it's supposed to look like That is the precursor and that's what's going on now That does not mean that we are guaranteed a recession But it is something to look out for well how the markets get affected. Well, honestly not too bad I mean only one and a half percent in the s&p 500 if we take a look and just zoom out We're five days looking pretty good one month. Okay. Got me on that one six month For a year kind of sideways action five years Not doing too bad honestly, and then if we look at the the nasdaq You can see it over a day down a little bit, right? If we take a look at over a six months ceo going pretty much little sideways action And then if we take a look over three years still looking pretty good And uh, how do crypto reacts? They don't really care crypto doesn't really care in last hour bitcoins down 0.1 and nothing's really budged so The thing you have to ask yourself is is it priced in and I can't say for sure But this article does talk about some interesting things where they say here some investors found the comments Unsurprising from Jerome Powell. They said look Well, some market participants might have been caught off guard by Powell's comments The reality is that he is largely affirming what the bond market has already priced in In terms about the pace of rate increase dragging the u.s economy into a recession Have spread among investors and prompted me to hope for the Fed to pause Rate hikes this year and recent weeks Fed officials have hinted that rates could go higher still and remain elevator for longer They haven't been hinting at it. They've been telling us what they're going to do This is no surprise And then lastly I will just say this As far as like Pausing rate hikes and essentially pivoting that sounds great But if we take a look at when the Fed pivots and this is going back Quite some time even back in the 1960s You can say that As far as the s&p 500 when the Fed pivots And they stop raising those rate hikes and they actually decreased say okay, we're not going to raise them We're going to lower them That's when the economy or when the s excuse me when the s&p 500 Actually says, you know what? You guys broke something and now we start to fall apart and this happened in 2000 this happened in 2007 This happened again in the 2000 while this was during the pandemic But what's an interesting note here? Take a look at this upward momentum as it just goes this way and just keeps going up s&p 500 If you lay that over the m2 money supply Isn't it interesting? Oh, this is in red and of course they've They've changed the way they calculate m2 money supply and where but when we take a look at here, it just seems like honestly that When there's more liquidity in the system Seems like things do pretty well This is more money sloshing around to to lubricate the giant that is The s&p 500 even even right here 2008 and nine as they pivoted And of course these two places they pivot it goes down they go. Well, I broke something Let's start printing some more money. They do that here and then same thing happens over here in 2008 And they they pivot and like wow, we broke something. Let's let's print some more money And of course we're coming up over here and now they've gone in the reverse raising rates Stopping the printing and doing quantitative tightening. So who knows where we're going off in the future but just remember that Bear markets don't last forever neither do bull markets and that'll lead me to my last section here. I I had a A conversation with a couple of of retail investors At Celsius and they wanted me to they said hey you should talk to uh deborokovsky She is working for us for the Celsius And the capital of embankruptcy and she represents the withhold and retail accounts group along with Block 5 and I'll just say this first that I apologize for the audio not for sure exactly what happened here, but There's a bit of offness of the audio But it doesn't matter because listen to this interview with me and deb and you're going to understand why this case That is coming before us for chapter 11 Is going to dictate just as much as what's going on potentially with the sec coming down On ripple and all the other centralized exchanges. So just take a listen to what we have here I was just bringing somebody that can give us a little revelation about the things that are happening As far as Celsius deb welcome to the show for the first time Thanks so much for having me on Yeah, so we're in the intro people know, uh, you know, where you're from what you're all about There's just some questions that we had and one of those things is I want to talk to you about just to like a quick follow-up And an overview of the video that you and cto did was about an hour or so of the links in the description You guys can check that out And the things that we talked about it made me realize that this is a bigger issue than more than people realize Also Talked about what the full group is a good chance of having all their funds returned And lastly just real quick explain to us about there's a question about this 502d and how that impacts the bankruptcy So first things first This video fantastic I watched about two or three times you and uh friend the show cto larson and one of the things you talked about in the very beginning Is you talked about how you said look stock brokers financial institutions and banks are regulated And have insurance this new sector of finance called crypto and digital assets They don't have that They have neither because regulators haven't caught up and put in laws or given guidance How big of an issue is that in this situation? I think it's an enormous issue and I think it's something that the sec is going to need to start addressing um not just through You know Regulation by enforcement. I think that bank regulators. I think congress that somebody's going to have to figure out some kind of regime where If you are investing in something that looks like a bank feels like a bank or looks like a stock broker It feels like a stock broker is kind of shaped like these financial institutions where if you put your assets on You're protected in the event of an insolvency We need to see something similar or you're going to keep having these types of issues And the end result is going to be there's not going to be any any possibility of a C5 crypto industry in the u.s. Because people are going to say look, you know, this is great But if anything goes sideways, I'm going to lose everything And you're going to try to quad all back for me So you the current regime just does not work and really needs to be addressed in a more organized fashion Great. I'm going to say it better. All right. So the next I'm not going to I'm not going to harp on this one People on the channel know my stance on that And then you'd also talked about even if you live outside the u.s. You are still susceptible to these 90 day clobax Right, so I I spoke with with um cto larson a little bit about this concept of extra Territoriality and I keep stumbling over that word. It's a lot of syllables Um, so there are multiple pieces here like one can the statute be applied Side of the united states and I think that the way that the second circuit has answered that question And that's where new york courts are in the second circuit. Um is yes So we've we've got a statute where it doesn't matter where the defendant is if the Transfer being avoided is from a u.s. That are I think I think we're in business there But there are some other points to consider as well Before a bankruptcy court can reach out and just you know grab a defendant You know halfway across the world say hey, I'm going to enter a judgment against you There's got to be personal jurisdiction There's a due process issue that individual has to have at least minimum Contacts with the united states and one of the things you'd want to be looking at is Well, what are the terms of service say if you're doing business with a crypto platform in the us That is us based and you click, you know that that that click wrap agreement when you go and you open your account And you're agreeing to the terms of use What does it say about jurisdiction? What does it say you're consenting to? Because you can consent to the jurisdiction of the u.s. Courts So that's something to think about and then the last issue is service Well, so let's say there is personal jurisdiction over you because like maybe you agree to it in the terms of use Then the trustee or the debtor whoever's suing has to figure out how to serve you properly in whatever country you're in So is it more difficult and expensive? Sure is it doable? Absolutely Yeah, it's doable But then you also said something else about look if you if you would drew your funds within 90 days And then you gambled it all away And then you could prove that you did that or you lost it in some way shape or form whatever you did But you actually I actually had to prove it What are the chances of them going after you for that? well They're not going to know What you've done with your assets or what your financial status is but I don't think any lawyer that I know that's a A responsible bankruptcy lawyer is in the business of trying to force defendants into bankruptcy themselves If any any situation I've had where you know, I and I've represented post confirmation trustees suing defendants And they've come back and said look that's great, but you know what my financial circumstances have changed I just don't have the money You can't get blood from a stone and then at that point say okay prove it Show me your financials. Show me your bank account statements. Show me your list of assets Give me an affidavit and if you can really show that Your judgment proof then you know, I I do understand you cannot actually get blood from a stone and that's kind of you know Where things end up now if they show me they have no assets But you know mysteriously their house somehow just transferred into their kid's name three weeks ago. That's a very different story Sure That totally makes sense which I guess what leads to the other thing you guys talked about as far as transfers This is the this is the most scary. This is one of the reasons why I think we need some type of regulation You take one bitcoin and it goes from Celsius. You would draw it within 90 days You take that that bitcoin put it into voyager take that out and you go to ftx take that out Within a 90-day time frame. How many bitcoins do you go? potentially each debtor could seek to claw back a bitcoin from you because it's potentially a preferential transfer with defenses and I think you're right. There needs to be some kind of Regulatory scheme that would deal with this. This is just not a scenario the bankruptcy code ever contemplated And honestly, I think at that point all you can do is get all three four five However, many trustees are pursuing you put them all in a room together. Let them find it out So guys I've got one bitcoin y'all can decide who gets it Well speaking of the people that may or may not have that bitcoin There was nothing you guys talked about as far as the retail or the individual versus the insiders And it's not like to me that for the retail us We're gonna they're gonna be able to go back 90 days But as far as like the insiders and what they could look at to to get back You're looking at a year to two years and they could look at the finances. I wasn't too clear on this one Okay, so for preferences the look back for non insiders is 90 days for insiders It's a year. So there's a much longer time period that the trustee is going to be looking at You know, Alex Mishinsky, Sam Bakeman Freed, whoever the insiders are of each of these entities They're going to be scrutinized for at least a year back. They're also going to be looked at very closely I would imagine for fraudulent transfers Which are you know another type of clawback and that can have a look back period Under state law four to six years depending on what state you're in I got you. Yeah, that makes that makes sense. And the last thing I think we talked about was Because you you represent a lot of different individuals But non insiders of course and you you talked about you said, well, I don't usually go after non insiders That's who you represent But in most cases that you've seen Where is the the bulk of the funds coming from when they're trying to claw these these things back or preferences? Is it from non insiders or insiders? So I I have been in cases where non insider preferences have been pursued and I represent a lot of committees And that's a lot of post confirmation trustees. So I'm often the one analyzing preferences and making recommendations um in my experience most of the time The big dollars the ones that went to the insiders because they were in a position to loot the company not always Um, but that that's usually it the other thing that I always think about and the analysis that I always do is look I could go out and I could pursue A thousand preference claims against non insiders against general unsecured creditors The only reason to pursue preference claim the only possible Justification is if I think that's going to result overall in a better return a better recovery To the unsecured creditors as a whole if I'm looking at this and I say I can pursue these Thousand preference claims. I'm going to make great attorney's fees on this and I'm going to be so excited I'm going to buy a new car or whatever, but at the end of the day I'm increasing the distribution to unsecured creditors by half a percent one percent. That's not worth it That's that's to me. That's a breach of fiduciary duty I gotta agree and like there was a video that just put out that talked about how and this is Unsubstantiated so far it looks like alex vashinsky in upper management There looks like they've gotten out 70 to 80 million over the last two years or so Maybe that's a good idea to look look there first. I'm just just saying okay So so that that was just that that overview part Let's get into a couple of questions, which is this now you represent the withhold group So talk to us about why they have a really good chance getting their funds returned Well, I think they they do have a good chance because withhold is basically like custody But in those states where Celsius wasn't entitled to offer custody accounts So you have the same issue where you have people who took their money out of urn They were no longer lending their assets to Celsius They were no longer granting Celsius rights of ownership Celsius No longer had any contractual rights to do anything with those assets Unfortunately didn't properly safeguard them, but there are definitely I think strong legal and equitable claims as to why withhold should be treated comparably to custody Excellent So hopefully they can get hopefully they can get a hundred percent back because it was a I thought it was a gray area, but I mean this was kind of put on the fly. It was very fast I didn't understand how they couldn't do other things, but I guess state-by-state regulations just wouldn't allow that And then the last questions is there was a let's keep coming up this 502 d and how this this impacts the bankruptcy can explain what that is Sure, so what 502 d of the bankruptcy code says is that basically if you owe a preference if you received a preferential transfer from the debtor So you got something out in the 90 days before and it's a preferential transfer potentially Until that gets resolved until you either you know, if you're not to owe it or you pay it back You're not entitled to any distribution from the estate. So let's say you still got you know, a hundred thousand dollars still locked up Well, that might be In the range of releases say you have half a million dollars still locked up on a platform And and you'd like to get your distribution out because all of the other creditors They're getting their 20 cents 30 cents 60 cents. Whatever they're getting is their distribution You're like, well, where's mine? I'm waiting, you know to get my transfer of bitcoin or cash or whatever I'm going to get and the trustee or the debtor whoever is In charge of actually administering the plan is going to say, I'm sorry I can't distribute to you because you've received this potential preference. And so until we get that resolved I'm hanging on to all of these assets because the bankruptcy code says I can Okay, it's going to put people in a little bit of a limbo. I think from there All right, and then dev the last one this will be the bonus question, which is this we had talked about this before I didn't really understand it that well cram downs Explain to us about cram down so I can understand it best Okay All right, and this is a complicated topic and it's one that I wish I had a whiteboard here would be a lot easier um A lot of people think that if the creditors of Of a debtor as a whole reject the debtor's plan that plan doesn't get confirmed It fails that is not necessarily true Because creditors don't vote in a single block creditors are classified into different classes So you may have um, let's say Class of convenience creditors who are small creditors. Maybe there's a lot of them Their total dollar value is let's call it a hundred million dollars And let's say there's 10,000 creditors in that class and they're owed a hundred million and then you've got Maybe another 10,000 of credit or sorry another 10,000 creditors in a separate class, but they're owed a billion dollars, right? so You think one class is much bigger And if that class voted to reject the plan because they're owed so much more money that would just tank the plan But that's not how cram down works Because all that you need in order to confirm a bankruptcy plan is one impaired class that votes to accept the plan So if the little class that's only owed a hundred million dollars Votes to accept the plan and a class accepts a plan by voting in favor of the plan By more than half the members in the class that are holding more than two-thirds of the of the dollar value So you got your your one class over here That's the little class that's only owed a hundred million and they vote in favor of the plan as a class Not everybody in the class has to vote in favor But in no vote in favor holding enough claims that that class had thumbs up Then you've got the big class that's owed a billion dollars and they say forget it We think this plan sucks. We vote against it and they think great We're we're going to take this plan. This is not going to go forward As long as the other requirements of the bankruptcy code are met That plan can still be confirmed. It can be crammed down over the objections of the dissenting class over their rejection of the plan Even though if you look at it on you know on a dollar basis, they hold the vast majority of claims against the debtor But that's the way that the bankruptcy court is structured And there are arguments about well, did you improperly gerrymander the class is just so you could get an impaired accepting class and and those are things that get litigated all the time But um, that that's that's the idea of crammed on you cannot assume that just because Even if it's a majority a number and a majority in claim amount That votes to reject the plan It can still get confirmed as long as there's an impaired accepting class And the other requirements of the bankruptcy code are met Hey, well dad, I'm glad you're doing what you're doing. So I'm only I could do those types of things and deal with those situations So everybody first of all dib. Thanks for something by we appreciate it Yeah Yes, and what I'll do is I'm going to put your information up If you are a part of any of these these groups of these classes and you like to reach out to talk to dib And uh her lover, uh, the information will be there links in the description and that is it for this one So dib, thanks so much Thanks. Take care. All right. So that's it. So again, you can find uh, uh, deb Kofsky's information in the link in the description if you need to reach out and contact her But that is it for today. So look like this video give it a thumbs up Consider subscribing everything to talk about is time sensitive. That's it for today I thanks so much for stopping by. I appreciate it. I'll see you on the next one


and a company called Scripto, I organized a local JavaScript user group in Brooklyn, New York called BrooklynJS. Today I want to talk about my feelings on language, both on English language and coding language. So I learned English as an adult, like ten years ago I was never so that I was speaking English at a conference standing here. I was pretty bad at English and but I got around with it. I wanted to go to college in US so I got into this like six-month ESL program. I learned somehow, I graduated from the college so now I do okay job I think but for you to judge. I also learned to code as an adult, maybe four years, four and a half years ago. I decided to pick up on code. I was always in tech industry as a project manager but I was never a programmer. I decided to teach myself code and intersection of those code and English, having those two as adult learner and in second language for your profession and for your speaking language, I got a lot of feelings, mostly frustrated feelings, right? So like when I saw the CFP for this I was like I got the feeling about this I'm gonna submit this. So much like many of the people who started to or teach themselves code past five years I started to learning code by using online tutorials. There that was offered in English. I got through tutorials, I made a little web app and I learned like you know concepts like function and arguments and valuables and I got that like I got like what it does but then like I was like always curious about like why is it called function? Why is it called valuables? Because when I started learning to code four years ago I was already somewhat fluent in English and in English the speaking English you don't speak like oh it's too small. You don't speak like this like oh I'm thirsty so I'm gonna call a function code to go to store and here's my arguments because I'm thirsty I need a water and here's my $5. Give me water like that's not a language like I was like having a hard time calling these three things arguments and like it's still the constant fear of like if I go to technical interview I might call this parameters and they might think that I'm not a proficient in JavaScript because those are called arguments and then like I somehow got through that and then I got a job and it was no and no required me to do this like terminal thing and people says like oh no you should lead a document and like you know notice that I was doing then I started doing note at 10 and 25 so like I'm still new but like still like it wasn't quite the good documentation and go in there and I'm like why is this thing in square buckets I don't really understand what's callback oh is it a function what what so like that was like maybe like fifths six sevenths months of my at me doing the JavaScript so I turned to my native language I googled it in node and filtered it on the Google saying like only Japanese and found a fantastic blog post that the title says the Node.js recommendation for Node.js for front-end engineers and they break down like what the callback is you may try this in try catch but that doesn't work with node because undefined difference and then this here's how you handle the error which is this part and then like they have like commenting on the quote and like I got to understand it so now I was like this is awesome learning things in my native language helped me a lot and I got me got me through building an app I got accepted to talk about conferences so I was like really interested in like offering help for open source projects and those online tutorials saying writing to them saying that hey I really like your tutorials like can I translate this because it's highly beneficial if was offered in my native language and I think there's the other people out there who would benefit from it I don't have my time often end up in not getting any response sometimes like three weeks later template support reply comes back saying like thank you for email we have no plan of expanding the business to the Japan but you know thank you and I'm like I wasn't really pitching you to bring a business to Japan it was just asking to translate it because I'm not even living in Japan oh by the way I live in New York so I wasn't talking about a locality of things but you know you got through you learned it you got comfortable with it you make friends in the community here's the meet-up that I organize a lot of people I talk about stuff and come to a conference and meet more people then I find myself in between these thing called opinions because we're opinionated so one example of opinion talk that I was like really this is do it like are we doing this was have you all familiar with term isomorphic isomorphic JavaScript so as far as I understand that is part of a code that lands on both on server and client and calling that as isomorphic was kind of buzzy word around May this year and people like talking about like no isomorphic is not it's a misuse word you should really call it portable or like it's just a flashy mouth where doesn't mean anything or it's just a new semi-gold and I'm like really like oh like if you've told me now as an adult learner who's like still learning like no this thing that lands on server and client is called isomorphic I don't doubt that I some where that isomorphic word comes from it is registered in my plane that's the isomorphic so I'm like come me some slack like you know and I had like a few of those experience about like the hardest problem in programming like programming which is naming things and like wording of things and then also I realize that the platform that we use isn't nearly equipped to talk about those like different non-English folks like something like this so I'm the answer created the programming language entirely done in alabic and he created the repo name in alabic and get hub made that repo name which he entered in alabic into dash dash dash so if you go to his project it is slash and answer slash dash dash dash right so I was like curious so I was like okay let's try that and I found this okay let's enlarge it so I put a my repo name which came back with green check mark accept it because it's unicode character maybe but then once you hover off from that field you get this pop-up saying your newly positive will be created as dash and to me this is like you know you know as a unicode character it is acceptable but like we don't know what to do with your language so like we just kind of replace it with dash but like my language has like so many characters in you know translating that into dash it's kind of like you know really so I had a series of those things and not just these two things that doesn't fit in this like 15 minutes but I have a series of their things and I came to have this thing that I thought that the tech is freaking anglo-centric and I don't even know what anglo-centric means exactly but seems to be the fitting word and from my experience we just have to deal with it because we are not gonna speak Esperanto each other suddenly and then solve all this problem we like it is the thing like it's not just having a majority of the community being white and male it's that the language even the language that we use it's very very anglo-saxon centric so I had a lot of frustration and feelings and thinking but this year I had a positive experience related to this and that is a IOJS I18n or localized or global we honestly don't know what to call here's another language problem but basically IOJS offered up for a speaker or the the user of different a language that is not English to contribute to translate website into their native language to contribute to a social media site so in February 7th my collager puts out a issue saying you know anybody who want to participate just pass on on this issue and we'll create a working group for you so remember my experience of like you know asking them like hey can I offer you to volunteer to translate I was like immediately yes somebody finally it's giving me chance to do this because I always wanted to contribute like I may be a beginner a JavaScript person but like I'm a native JavaScript Japanese speaker so that's like the best language that I use right so I quickly pass one for Japanese I got added I started translating documents and websites and you know learning the Twitter handles and later Michael asked me to help adding a new users and creating new repos so that's why I came more having a more insight into what's going on and how many languages created and that's why it's been a talk here so two thing Michael did or Michael or I always group did really well was that when you created the new language group it came with one issue called welcome and here's a list of things you do so when interest are high and people are excited there was a list of things that they do so that they don't really need to wonder or argue about like where to start there was a clear start was like there's this three blog post that I want you to translate or and then create this social media account whatever fits your culture doesn't have to be slack blog doesn't have to be medium whatever fits your culture and users just create and do your own thing so I was part of the Japanese working group that and we created our own slack and this is a screencast from one of our member being nominated to be a node collaborator and then we were just kind of you know celebrating and talking about like having sushi and things so in at the end 34 teams are created and here's a list of languages and out of those 34 teams 23 became active groups active meaning not just plus one and somebody has a repo access and the working group access these languages in yellow have actually started learning their own social media translated some documents to be honest after a few weeks to few months most of them kind of dim down after that excitement goes out and you know a lot of complicated moving parts things with IOJS and no JS happens but few teams are still actively doing the thing that they started in February so here's an example of Korean group just created the issue on creating a documentation translated the full point 1.1 documentation translated to a Korean Taiwanese group somehow picked up interest in translating NPM weekly look at this oh you might not be able to see it but 13 days ago they have like a through of issue coming in and they actually have a translated version on the issue so they're actively working on it the Turkish group has been constantly working on it translating the blog post that the evangelism working group publishes and they're discussing translating the new no JS org website not only those three like I'm part of the Japanese group and our GitHub activities are not so high but we are the no JS user group in Japan is organizing a conference in November they have very active slack and that's the thing too like once we created those teams something move the conversation off of GitHub repo so and then it is offered in different language that I don't speak so I can't really track down like what exactly happening within those 34 teams that we created but one thing we definitely had was that the we encourage each other to participate like from Japanese working group one member became part of technical community TSE one member became a collaborator status and he's part of two working group diversity and evangelism and we look at like oh Taiwanese group is doing that maybe we should do this and we kind of like encourage each other but those are the people who would never have contributed to I OJS no JS if that was the issue wasn't there to say like widely open welcome right and then you might be thinking like that's great great great like I would like I would love to do that in my project but like I can't really take that much of work because it is a lot of work and that's why Michael Rogers asked me to help him do that and that's totally legit that's totally fair but experienced this my experience get got me like few insights into you can take care now without taking not much of an effort and this is effort that you can put on your project not only to help people with non native English speaker but also everybody the first thing is light it's simple as a non native English speaker leading English is like just parsing a code like if that comes in the big chunk of the thing it takes up your memory and it takes long time to process but if let's break it down with TLDR so like kind of load map of like how this to polygraph article is going to be or in blood points it's much easier and much faster to understand and I think it's also applies to native speakers to the other thing is set policy and licenses you know my experience of like asking them like hey can I do this translation maybe they had no idea what that meant and having that set first will help you one example is that the another open source project called hoodie hoodie has a very extensive contributed contributors guide one of them a give talks they already have a key to keynote size made and up there everybody can blouse and if they decided to give a conference talk or meetup talk then they can contact them to give that talk the other thing is improving accessibility and going back to parsing a pallet glove do you agree that this is hard to lead it's extremely hard for me to lead a comment on how can use with this tiny font and this contrast I find it it's very easy to lead the style in get how github lenders the markdown file I find it that the contrast of the letters and background and link and spacing somehow leading on github is much easier than anywhere else one other thing is that make it in text and don't do this wacky CSS on highlighting stuff here's how I lead English remember I said I purse a text and I learned that the English as kind of like a code like glamour I go along by line highlighting one by one going to lead it and trying to match with the glamour in my head to understand this so I noticed this recently I was leading this beautiful data visualization that was a one giant image and I couldn't not highlight it and I could not lead it and I kept moving the image and I realized that all that's how I lead English and having that in accessible text helps to be able to lead it by screen leaders and screen data sir tremendous help I did entire online tutorial with help of screen leaders because I could not get hang of just leading the line and getting the concept it was much easier when it was coming from my ear and the other thing is mind the gap so you all are familiar maybe familiar with this looks good to me plus one ship it but I wasn't really familiar with idea of LG GM up until a year ago when I first started at the job and still I don't know why we use this school and quite frankly I don't know what this is and I don't know why we call it ship it to Mars code or deploy something so like you know different people different background have questions and the last thing is maybe sometimes it helps to talk about those feelings no JS hosted a collaborators summit an in-person on conference in San Francisco in August and they flew collaborators all over the world to come meet in person and talk about how they land the project the notes from those meetings are available publicly available on Google and Google Docs and one note from this paragraph mentions that like the collaborators from outside the US saying like you know those Google hangout meetings we need you to speak slowly or notes like a written communication is easier for me to understand them being done by speaking so having those conversation might not be on your agenda for your technical committee meeting but it helps to learn project project every now and then to talk about that so just a summary of five points that I put it up there now and if you are interested in this topic and want to know more or want to understand like how a non native English speakers experience this journey then I highly recommend watching this talk from GDC by Lani Ishmael called how language creates the largest invisible minority for games and in this talk he tells you how to lead alabic and how it is using game develop and it's fantastic 30 minutes you can spend or maybe you're interested in like you know putting in the somebody's shoes and trying to learn language in different language other than English in that case you have beaker script which lets you like a JavaScript in Swedish and then maybe you want to be completely away from using alphanumeric letters you can use language code Nadesco which is a programming language that's been allowed for 10 years and quite a large community around it is there in Japan and this is the documentation part of explaining if else statement it's completely done in English Japanese and if you go in there you can experience this complete lostness and you know not understanding anything part of learning to code in your second language so those are links are in the slide I have a few thank you to put in area who is like super excited that she's here probably earlier is a only person who when I sub-tweet a frustrated tweet like you know entertain my conversation on tweet Michael and Jeremiah who is in court no record team I gave me a lot of insight into what happened at these collaborators summit and what's going on with CSC a company that I work for the toddler see a little bit love who probably the best Anglo Saxon male boss that I can ask for super supportive super supportive I cannot thank you more and Tracy and Amanda who are both conference organizers who entertain my idea of you know I'm thinking about giving this talk and making this and they help me have chat with me and you know submit to the conferences so my slides are up online that's my total handle if you have any questions happy to chat thank you very much