I received a phone call this afternoon from someone who found my firm online. The gentlemen has received no guidance regarding his 401k at work. Last July, he had $286,000 in his plan. Today he has $166,000. I asked him what he had been doing lately. He had moved his money in recent months from… [Read More] My 401k: Should I Keep Contributing?
Mark to Market is a topic I have written about previously. You can read about them here. I don’t like changing the rules of the game in mid-stream, but something drastic needs to be done. A terrific opinion piece was written in the Wall Street Journal recently by Peter Wallison. If you click on his… [Read More] Mark to Market Suspension vs Bank Nationalization
This was the headline on the Associated Press on the evening of February 17th, 2009. Is that a fact? This is how the media distorts. Pay attention. So many investment decisions — made by investors, traders, mom & pop, everyone — gets determined by the headlines. I am no fan of GM whatsoever. I think… [Read More] GM seeks up to $30 billion in Aid: Fact?
Warren Buffett writes an annual letter to the shareholders of Berkshire Hathaway each year. If you’ve never read them, you really ought to. They are priceless gems. Not a laugh a minute, but an interesting observation on what’s happening. This year’s version is about 22 pages and he comments on Mark to the Market, derivatives,… [Read More] Warren Buffett’s Annual Letter To Shareholders
This was the headline this morning on many websites and news sources. What you need to remember is this: they are reporting figures for the 4th Quarter 2008. That’s right, the period from October 1, 2008 – December 31, 2008. That information is already TWO MONTHS OLD. Nothing new here, we are all in the… [Read More] Economy shrinks at fastest pace in 26 years
Throwing good money after bad into these banks is not the answer. Now, I don’t like changing the rules in the middle of the game. But I still believe the almost-immediate fix for this entire mess is suspending “mark to the market” regulations. Read this statement from news sources today: Citigroup declined to comment on… [Read More] Could Suspending Mark to the Market Accouting Solve The Problem?