Sep
26
Wall Street No Longer Exists
September 26, 2008 | Leave a Comment
… 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 won't have Wall Street to kick around anymore. Headlines now shout about a $700 billion "Bailout for Wall Street." Yet strictly speaking, Wall Street as we knew it no longer exists.
http://online.wsj.com/article/SB122212959612065505.html
The point of the article is that the separation …
Sep
17
Stocks for the Long Run
September 17, 2008 | 1 Comment
… cash and real estate. The minority (and getting smaller :-)) is in stocks and corporate bonds through mutual funds.
I think buy and hold went the way of the dodo. When a portion corporate America is out to pillage the wealth that rightfully belongs to the shareholder, the small investor is the one who gets hurt. I'm not sure what Wall Street and the Feds can do to prop up confidence in the Ponzi scheme (stock market) at this point.
I think clear reform in corporate governance is …
Comment by Jeff: … corporate bonds through mutual funds." It would be …
Sep
9
The Stock Market Scam - Stock Options
September 9, 2008 | Leave a Comment
… However, small investors (you and me) are going to get screwed as our shares are often owned through mutual fund. We don't have a direct voice or enough power to look out for our own interests. It really is a case of the little guy getting screwed.
Why do you think Warren Buffet buys large shares of companies, if not a controlling interest. Buffet's not going to stand for this kind of crap in his investments (except maybe at Wells Fargo). However, most of us aren't as savvy as …
Sep
3
Why First Time Home Buyer Programs Are a Bad Idea
September 3, 2008 | 1 Comment
… hunt. I did some research and found that our state offers a first time home buyers program through FHA. FHA is a government agency that underwrites (subsidizes) home loans to poor people. These loans have a lower interest rate and require almost no money down. No money down was good (or so I thought) because I didn't have much.
I also discovered that we probably wouldn't qualify once we were married. Our income would push us over the limit. So I was in a hurry to …
Aug
11
Should I Buy a New House?
August 11, 2008 | 4 Comments
… work at a fast food restaurant and still maintain my lifestyle (at least for a year or two or three).
I keep coming back to the freedom aspect. I could certainly afford a larger house but I would lose my freedom. So for now, we are staying put in our starter home.
It's not easy. I feel social pressure just like everyone else. My friends are moving into larger homes. Some have asked me when I'm going to move. Luckily I'm antisocial so I don't take the pressure too seriously.
I …
Aug
8
Fooled By Randomness - Overview
August 8, 2008 | 1 Comment
… background. Taleb makes the math of probability make sense. His use of conversational tone throughout the book is excellent. I get the impression that he is one of those story tellers that could make a tale about a trip to the grocery store interesting.
I'd have a hard time covering all the concepts he covered in the book in one post. What I'll do instead is cover the book chapter by chapter. It's one of those books where every chapter is interesting and adds something to the …
Jul
31
How Much Do You Spend On Gas Every Month?
July 31, 2008 | 1 Comment
… talk about the wisdom (or lack thereof?) of buying a new car to save money on gas. I'll run through various gas price scenarios (higher, lower and flat gas prices).
Stay tuned…
Jul
30
The Real Reason I Paid Off My Mortgage
July 30, 2008 | 14 Comments
… I didn't count on the level of freedom and the extra cash flow we have. I'm closer than ever to striking out on my own.
Comment by Jeff: … retirement, e.g., through a HELOC or a reverse mortgage. …
Jul
29
More Reasons to Pay Off Your Mortgage
July 29, 2008 | 4 Comments
… keeping an open mind on this topic. If I can find a convincing argument as to the merits of a mortgage, I'll post it.
Comment by The Real Reason I Paid Off My Mortgage - Wealthy Reader: … Recent Comments Chris on IRS Stimulus Payment: What if …
Jul
25
The Smartest Advice I Ever Got
July 25, 2008 | 12 Comments
… when stocks rise and some protection when they fall. It also enables you to "stay the course" through thick and thin. Come to think of it, that's also a pretty good piece of advice.
Bill Nygren:
Back when I was in college, I remember watching Johnny Carson interview Andrew Tobias, who was giving personal financial advice. Johnny asked: "What's the best investment for someone who has only $1,000?" Mr. Tobias said, "Nonperishable consumer staples."
Of course, the audience roared. …
Comment by Elan Vital: … it appears that Christo may be better suited to discuss …