Oct

6

Are Scandals Inevitable in Regulated Industries?

October 6, 2008 | 1 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 [...]

Oct

1

What Happens If We Don't Bail Out Wall Street?

October 1, 2008 | Leave a Comment

Nothing. No one will die. No wars will start or end.
A buddy asked me what would happen if the bail out didn't go through. My buddy has a degree in finance and a master in economics. He's worked at a large bank for 5 years. I've told you this to [...]

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

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

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 [...]

Feb

25

Subprime Mortgage Fiasco: An Explanation

February 25, 2008 | 2 Comments

You hear it every time a new scandal erupts. People think that Wall Street is becoming more evil, corrupt, etc. Well if you've read Benjamin Graham's Intelligent Investor, you know financial scandals are nothing new.
If you've had a hard time following the financial drama known as The Subprime Mortgage Crisis (you know it's [...]