Category Archives for "Invest"

JP Morgan Chase Up on Earnings Report

Banks, insurers head higher – MarketWatch

A quartet of top U.S. bank stocks rose on Wednesday after J.P. Morgan Chase & Co. reported earnings that surpassed Wall Street estimates, and the insurance sector also weighed in with gains to lift financial stocks more than 2%.

I suggest that the management at JPM horde all that cash, as the next big mortgage resets occur in 2012 (5 years after the peak of 2007, when everybody and their mother, dog, parakeet, and gerbil bought houses with no money down, poor credit, and insufficient income).

Now that many of those same people are now either unemployed or still making less money than their mortgage payment, the pressure is going to be HUGE on the housing market, banking sector, and overall economy. Let’s hope the news that the economy and employment pictures are improving, else we fall into a really nasty tailspin. Let’s also hope I’m wrong about the resets (here’s the good personal news: my mortgage from 2004 reset at a lower interest rate).

Kids and Money — July 15, 2009

Welcome to the July 15, 2009 edition of kids and money.

Madison presents Summer Jobs for 11 Year Olds – Jobs for 11 Year Olds posted at Kids and Money.

Madison presents Student Loan Rates Will Drop to All Time Low posted at My Dollar Plan.

Finance Tips 101 presents Car Donations ? Knowing The Facts posted at Finance Tips 101.

Ishan @ ILoveFreeSoftware presents How to Setup Virtual Fax Machine for Free posted at I Love Free Software, saying, “Having a regular fax machine is expensive. The best alternative is to use Online fax services. However, most of the fax services come with a monthly fee. In this article I explain how to setup your own free online fax service completely free. No registration fee, no monthly fee, no setup charges. Totally Free.”
Yeah, not kids and money per se, but certainly a tip I wanted to pass along. FREE nowadays is a good thing (always has been, I suppose).

Pamela Parker presents Four Deaths, Four Different Reasons to Plan posted at Legacy.

Cindy Morus, The Money Mender presents Did Your Bank Flip You posted at Mend Your Money.com.

Barry presents Learn To Survive On A $100 Grocery Budget posted at Associate Money.

Steven Chang presents The Truth About Money – Money Blog – Money Making Tips and Money Management posted at Money Making Tips and Money Management, saying, “I hope this short blog post about wealth getting and preservation will benefit your readers.”

Chris McClelland presents In the long run, college will end up hurting your savings. posted at Lucrative Investing.

Chris McClelland presents The untimely death of celebrities has turned into quite a lucrative business posted at Lucrative Investing.

Jack Schmidt presents 7 Tools For Your Money Belt posted at SectorMatic Money Journal, saying, “SectorMatic Money Site – Personal Finance | Everything for the Big Spender on a Budget. Now you can live like a fat cat, even if you’re on a money diet. Laugh all the way to the bank with Jack Schmidt and SectorMatic. It’s for you!”

jim presents What is the Average Credit Score? posted at Blueprint for Financial Prosperity.

Ray @ Financial Highway presents Debt Reduction-Financial Planning Guide Step 10 posted at Financial Highway, saying, “Debt Reduction is the first step in building wealth, here are some strategies that can help you reduce your debt.”

Bobby Leong presents Tissa Godavitarne GDI Leaderboards Home Business posted at Global Domains International Tips.

Jack Schmidt presents Put A Little Passion In Your Wallet posted at SectorMatic Money Journal.

Praveen presents Students Beware! Colleges, Tuition, Loans, and Debt – Will Education Follow the Housing Bust? posted at My Simple Trading System.

Silicon Valley Blogger presents myFICO Score Watch: Equifax Credit Score Monitoring posted at The Digerati Life, saying, “Teach your kids the basics of credit and credit scores.”

Joshua presents Re-Using For The Family Budget posted at Family and Parenting, saying, “Recycling is not only good for the environment but also good for your family finances.”

Finance Tips 101 presents Tips To Help You Qualify For A Home Mortgage | Finance Tips 101 posted at Finance Tips 101.

One Family presents Southwest Airlines (LUV) – Stock Analysis posted at One Family’s Blog, saying, “An analysis of Southwest Airlines (LUV) stock.”

Nancy Miller presents The Problems of Implementing ICT in Secondary Education posted at Accredited Online PHD Universities.

josh andreson presents All Boxed Up: Types of Flash Media Packaging posted at Flash Media Packaging.
Another non-kids and money topic, but interesting nonetheless. I use flash media all the time. It’s awesome. And really cheap. I can see a day really soon where ALL your day-to-day data (including OS) is on a stick.

Jack Schmidt presents Real Estate: The Time to “Buy Low” Is Now posted at SectorMatic Money Journal.

Martin Russell presents “Conspiracy of the Rich”- A Review posted at Word of Mouth Marketing.

KCLau presents MoneyWise Interview on BFM 89.9 – The Business Station posted at KCLau’s Money Tips, saying, “was chatting with Patrick Michael on Business FM (BFM) 89.90 – The Business Station yesterday regarding some money lessons we can learn from watching the Transformers movies”

Save Money presents Revising and Simplifying My Budget (One More Time) posted at How I Save Money.net.

Chris McClelland presents Estate lessons we can all learn from Michael Jackson posted at Lucrative Investing.
It’s amazing to me how MJ’s demise has inspired all sorts of stories. I hate to think what’s going to happen to me, my stuff, and my family when I die, EVEN with a will. I guess there’s one good thing about not being rich and/or famous — nobody’s probably going to contest my will or challenge any trusts I set up…small victories…

Chris McClelland presents Your credit score may soon lead to targeted Google ads posted at Lucrative Investing.

PicktheBrain presents Top 10 Ways for Grad Students to Save Cash posted at Online Doctoral Programs.

Dan presents Kids Birthday Parties – Better at Home or Out for Theme Party? | My Dad Blog posted at My Dad Blog, saying, “This article considers the pros/cons of home birthday parties vs. themed parties like Bounce-U and Little Gym with topics spanning costs, convenience and fun.”
This is timely for me personally. I have a soon-to-be 2-year-old…last year, we had a party at a park. Happened to be the hottest day of the year (110)! It would have been nice to be able to go inside and get out of the heat. But then again, our house is too small to contain more than 6-8 people (somewhat comfortably), so our giant gathering would have had to take turns. I really like the idea of the Party Palooza type places.

Daniel Drew presents Line of Credit posted at My Business is doing well should I choose an SBA Loan?, saying, “”Lines of credit are generally paid off by opting for a permanent source of financing. In case of commercial property line of credit, the sale of the old property may help repay the line of credit””

Ray @ Financial Highway presents Canadian Discount Brokerage Review and Comparison for TFSA and RRSP posted at Financial Highway, saying, “A look at Canadian Discount Brokers”

Brian McKay presents Flexible Spending Account (FSA) for Dependent Care posted at MonitorBankRates.com, saying, “A dependent care flexible spending Account (FSA) allows you to save money pretax to pay for dependent care in the process also lowering your taxable income.”

Billeater presents Dorm Life – Cheap College Living Tips posted at Billeater.

Silicon Valley Blogger presents Balance Transfer Credit Card Tips, Facts and Traps posted at The Digerati Life, saying, “One important area of finance to teach kids about? The use of credit cards. Here is some coverage on balance transfer cards to teach your kids.”
Credit nowadays is a necessity. But I wish it wasn’t. So easy to spend beyond your means.

The Smarter Wallet presents Best Security Software For Your Computer posted at The Smarter Wallet, saying, “We all need to protect our computers, even the ones used by our families. Here’s how to do it!”

Banker Saver presents How Safe Is Your Retirement Fund? posted at Banker Saver, saying, “Retirement is a ways away for your kids, but it’s something they should understand early on. Investing as early as possible pays off.”

Ray presents Is A Costco Executive Membership Worth It? posted at Money Blue Book.

That concludes this edition. Submit your blog article to the next edition of kids and money using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

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Is Alan Greenspan to Blame for the Current Economic Crisis?

To the creator of PennyJobs, Curtis, the answer — clearly — is an emphatic YES!!!

What About Greedy Bankers?

Some like to point out that Wall Street creating the easy home securities like ARM and sub-prime loans, but realize that Wall Street would not have been able to create these things if Alan wouldn’t have allowed interest rates to drop well below market rates.

Its Official, Alan Greenspan Is To Blame | PennyJobs

Not sure I agree with the statement (it seems like a circular argument), but I, too, place a lot of blame on Greenspan and the Federal Reserve. And my opinion isn’t influenced, in this case, by the fact that I think the Fed does too much. It’s based on the idea that one of the, if not THE, central functions of the Federal Reserve is to regulate banks and other financial institutions.

The Fed failed in its oversight of the banks; in fact, they encouraged risky behavior. I think they were of the mind that all of these “derivatives” were reducing — if not eliminating — the risk naturally inherent in risk-based securities. After all, mortgages, for example, have inherent risks and their priced almost solely according to this risk (in the form of the interest rate).

A simple economic lesson: Higher interest rate = Higher perceived risk

As interest rates dropped to historically low numbers, the market clearly perceived lower risk. But people still lose jobs, hurricanes still happen, blight still occurs.

As the bubble inflated, more and more people pumped more and more air into it. As a bubble expands, it becomes more likely to burst.

And BURST it did.

It would be interesting to know what the money multiplier was during the early 2000s versus other 5- or 10-year periods. I would guess that it was rather high.

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Wealth-Building Wednesday — July 8, 2009

This is the “Dog Ate My Homework” edition 🙂

I’ve been burning the candle at both ends lately, what with my job winding down (amazingly, it winds up before it winds down, having to train my replacements), a big vacation planned for August (while I still have money, a car, and a house — hehe), and 2 kids that are growing up way too fast…

So, like any good student (of life), when the chips are down, you missed your assignment, you’re in danger of failing an exam —

You CHEAT

Actually, this week, I’m taking a pass. We’ve been talking about how to build wealth, how to brainstorm business ideas, and how to get started.

We’ll pick up on that next time around.

This week, I want to direct you to a post that one of my fellow Personal Finance bloggers, Lazy Man, wrote, entitled, “Wealth Creation: Is it a Myth?

He postulates that wealth creation is a zero-sum game: Any time I make a dollar, somebody loses a dollar; thus, it’s a zero-sum game.

It’s an interesting concept. His post got a lot of people talking. Make sure you read the Comments for my take on the question, where I give the “functional” reason that wealth-creation is NOT a zero-sum game (Lazy Man mentioned it briefly in his post) — but absent banks, there may in fact be no wealth creation.

Check it out. Tell me what you think in the comments here.

David Callaway: Wall Street’s giving tips again; time to worry

David Callaway: Wall Street’s giving tips again; time to worry

One sure sign that the markets may be getting ahead of themselves this summer: Wall Street banks are recommending each other’s shares again.

Go to Source

Bill’s take on this: Yes, we should all be very, very afraid. It always bugged me that banks recommended banks, the “watchdog” SEC and Moody’s, S&P, and other rating agencies not only didn’t “get” the economic downturn we’re all living in, but they showed a complete negligence about the disaster. Further, they all have conflicts of interest.

For example, the rating agencies. Take S&P. (Please!) They “rate” securities, presumably on risk. The riskier the underlying securities, for example, on a bond, the riskier the bond, the lower the rating. (First off, does anybody understand the rating system? Why can’t it simply be A-F? Why quadruple double-A, which means, not so good? I made that up, but you know what I mean.)

However, the S&P benefits by giving good ratings. If a company gets poorly-rated, they don’t do ANY business with S&P, which has a whole host of business services it sells Wall Street firms.

In the interest of “transparency,” then, a rating agency really should have no other duty. I don’t know how they’d make money, but that’s for them to figure out.

You cannot tell me that the “risk” side doesn’t take the potential lost business into consideration. I bet the “risk” side even takes some heat from the revenue-generating side.

Used to be, investing in an index was a sound investment idea. Now that all the parties are having affairs and inbreeding, I’m not so sure.