Sep
30
Putting the Blame Where It Belongs
September 30, 2008 | Leave a Comment
So who's fault is it? Greedy White Republican Investment Bankers? How about a fat Southerner with a penchant for fast food, chubby interns and cigars.
New York Times 1999 Article about Fannie Mae loosening credit policies.
In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit [...]
Sep
26
Wall Street No Longer Exists
September 26, 2008 | Leave a Comment
The Wall Street Journal (ironically) published an article stating that Wall Street for all intents and purposes no longer exists. Now that the investment banks are commercial banks Wall Street is not the same.
With Goldman Sachs and Morgan Stanley becoming commercial banks, and the other three big investment banks/brokerage houses being acquired by commercial banks, [...]
Sep
24
Bailout Sounds Like Bad Spam Email
September 24, 2008 | Leave a Comment
This is hilarious. I'm sure you've gottem an email from an "official" in Africa. This official has millions waiting for you, you just need to send them your bank account info. Well what if the scammer in Africa was suddenly the most powerful man in the world. Well Secretary of the Treasury Paulson is the most [...]
Sep
23
Letting the Storm Pass
September 23, 2008 | Leave a Comment
I'm watching and reading even less news than usual. Why? Because everyday we are flooded with bad news and bad news doesn't make me money.
When I do happen to catch some news, financial or otherwise, I grimace. Mostly because the people that are watching it look so depressed.
Yes the market tanked. Yes Wall Street [...]
Sep
21
Why Money Market Funds Aren't Safe
September 21, 2008 | Leave a Comment
Many people think money market funds are as safe as bank deposits or certificates of deposit. Many people are wrong.
When you buy a CD or deposit money into a demand deposit (checking or savings) account, the government (FDIC) will insure your money up to a certain limit, usually no less than $100,000.
However with with money market [...]
Sep
17
Stocks for the Long Run
September 17, 2008 | 1 Comment
http://blogs.law.harvard.edu/philg/2008/09/16/stocks-for-the-long-run/
Inflation has decreased the value of a dollar about 33% since 1999. The S&P 500 has been stagnate for about that long.
You would have much more today if you had stashed you money in savings accounts, real estate and CD's. Most of my wealth is accounted for by cash and real estate. The minority [...]
Sep
17
No Second Stimulus Payment Yet
September 17, 2008 | 7 Comments
There is no second stimulus payment as of right now. There have been rumors and several law makers like Chucky "Cheese" Schumer have been lobbying for another payment.
However, both presidential candidates have come out against another stimulus payment. Obama wants a different program instead of sending money directly to people who could use it, he [...]
Sep
16
Here We Go Again
September 16, 2008 | 1 Comment
I'm sure many financial "experts" are going to tell you to stay the course. That this is just a minor correction. The market will work itself out. I'm not going to do that. Instead I think this is a symptom of the cancer that has infected Wall Street.
If you want a good read on the [...]
Sep
12
Evidence that the Stock Market is Efficient
September 12, 2008 | 1 Comment
An old news story provides further evidence that the Efficient Market Hypothesis is valid. The Efficient Market theory states that all public information is reflected in the price of security. Put another way, news effects the prices of stocks almost as soon as it is known.
Recently an old news story from the Sun Sentinel [...]
Sep
10
Why I'm not Contributing to my 401(k) at Work
September 10, 2008 | 2 Comments
After some soul searching and fact checking, I've decided it's time to dump the 401(k). I know this sounds like sacrilege to the investing faithful, but I think it's a wise financial move.
My company contributes 7.5% of my salary to my 401(k). My employer makes this contribution even if I don't contribute a [...]