Oct
6
Are Scandals Inevitable in Regulated Industries?
October 6, 2008 | Leave a Comment
As the financial system comes crumbling down, the 20/20 hindsight begins. Of course the casualty of this latest fiasco will be free markets. But when you examine the industries that have had massive scandals, you'll find a list of the most highly regulated industries including telecoms (WorldCom), energy/utilities (Enron, NorthWestern) and banking (too numerous to mention).
This idea came to me …
Oct
3
Back To Basics
October 3, 2008 | 1 Comment
The major news right now is the so called credit crises. Banks aren't lending to each other so the government is going to spend close to A TRILLION dollars to fix the problem. It's depressing but we can't dwell on it. (Just remember if your congress(wo)man voted for it in November, voting is the best revenge.) What we need to do now if re-focus on the financial matters we can control. …
Comment by Jeff: … good advice…for the vast majority of people following a …
Oct
2
Warren Buffet On the Credit Crises
October 2, 2008 | 2 Comments
When Buffet dies I guess we're all in trouble. Nobody can explain this stuff except him. (end sarcasm)
Warren Buffet is interviewed about the credit crisis on CNBC. You can read some excerpts here: http://mathoda.com/archives/433
One quote I'd like to point out:
Beware of geeks with clever computer models: “I mean they had all these types from Wall Street, you know, and they had …
Comment by Are Scandals Inevitable in Regulated Industries? - Wealthy Reader: … To Basics - Wealthy Reader on Warren Buffet On the …
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, politicians and the press …
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 powerful man in the world and he is ready to scam every American taxpayer …
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 firms are (once again) too greedy for their own good. Once again Congress …
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 funds that's not the case. Money market funds are mutual funds …
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 (and getting …
Comment by Jeff: "Inflation has decreased the value of a dollar …
Sep
17
No Second Stimulus Payment Yet
September 17, 2008 | 1 Comment
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 wants the money to go to the state and …
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 subject Mark Cuban has a article about the market meltdown and why they keep happening.
There is a short easy answer. The people that run corporations don't face any …
Comment by Jeff: What are you going to do instead?