Want to hear something cool? I applied for a credit card with Wells Fargo,
and along with the card they sent the credit score that was reported on me
when they asked. Nice that they included that for my benefit.
Showing posts with label ref-money. Show all posts
Showing posts with label ref-money. Show all posts
15 January 2013
12 October 2008
Some financial sites
Some websites of use while deciding on investments.
morningstar.com: Allows you to see current quote as information on companies, as well as access historical data on stock performance. You can construct a portfolio of stocks based on current prices or historical ones, and analyze it with numerous metrics. This is all for free, more services available if you pay.
kitco.com: Tracks precious metal prices.
Lazy portfolios by Paul Farrell: Set it and forget it. I use the Yale portfolio.
morningstar.com: Allows you to see current quote as information on companies, as well as access historical data on stock performance. You can construct a portfolio of stocks based on current prices or historical ones, and analyze it with numerous metrics. This is all for free, more services available if you pay.
kitco.com: Tracks precious metal prices.
Lazy portfolios by Paul Farrell: Set it and forget it. I use the Yale portfolio.
13 September 2008
the myth of the free market...
With the recent news of the Fannie May and Freddy Mac bailouts, I thought it might be interesting to go over the exact process of a bailout.
So here's how it goes. A privately owned or publicly traded company gets itself into financial troubles, in this case by buying a whole bunch of debt (in the form of mortgages). Unfortunately, they vastly overestimate the face value of these items. (E.g., a 30-year mortgage for $250,000 ought to be worth $250k over 30 years (simplified here by leaving out interest). However, they purchased hundreds of thousands of these and overlooked the fact that many of these new homeowners had no possible means to to pay $250k, even over 30 years.) So they pay a bunch of money for something and actually get nothing in return. When this becomes apparent, everyone who's loaned them money comes asking for it, and the company approaches the verge of collapse. Then, for whatever reason (friends in high places usually), the federal government decides that allowing such a company to go under would be "bad for America" and steps in with a bunch of cash to fund the debt of such a company. That cash comes from tax payer dollars. The net monetary effect is to take tax money from every American and transfer it to a few Americans. (Slightly different this time, see below). It also prevents what free-marketeers say is the upside to a free market, that the company in question (and the people that invested in it) get punished for their poor choices, thus preventing such problems in the future. (This is why Dick Cheney was against the housing market bailout.)
Savings and Loan scandal of the late 80s/early 90s followed the same pattern. Bear-Stearns was similar, and rumor is Lehman Brothers is next.
This type of action, which occurs at regular intervals in America, is the antithesis of the free market.
The new wrinkle with Fannie and Freddy is that for perhaps the first time, the majority of the investors in question were foreigners. Meaning that rather than sending tax dollars to a few select Americans, we sent that money overseas. America is being sold for parts, and it's being done by the very institutions that are supposed to protect it.
~~~
14 Sep: Anne's link: NPR link
So here's how it goes. A privately owned or publicly traded company gets itself into financial troubles, in this case by buying a whole bunch of debt (in the form of mortgages). Unfortunately, they vastly overestimate the face value of these items. (E.g., a 30-year mortgage for $250,000 ought to be worth $250k over 30 years (simplified here by leaving out interest). However, they purchased hundreds of thousands of these and overlooked the fact that many of these new homeowners had no possible means to to pay $250k, even over 30 years.) So they pay a bunch of money for something and actually get nothing in return. When this becomes apparent, everyone who's loaned them money comes asking for it, and the company approaches the verge of collapse. Then, for whatever reason (friends in high places usually), the federal government decides that allowing such a company to go under would be "bad for America" and steps in with a bunch of cash to fund the debt of such a company. That cash comes from tax payer dollars. The net monetary effect is to take tax money from every American and transfer it to a few Americans. (Slightly different this time, see below). It also prevents what free-marketeers say is the upside to a free market, that the company in question (and the people that invested in it) get punished for their poor choices, thus preventing such problems in the future. (This is why Dick Cheney was against the housing market bailout.)
Savings and Loan scandal of the late 80s/early 90s followed the same pattern. Bear-Stearns was similar, and rumor is Lehman Brothers is next.
This type of action, which occurs at regular intervals in America, is the antithesis of the free market.
The new wrinkle with Fannie and Freddy is that for perhaps the first time, the majority of the investors in question were foreigners. Meaning that rather than sending tax dollars to a few select Americans, we sent that money overseas. America is being sold for parts, and it's being done by the very institutions that are supposed to protect it.
~~~
14 Sep: Anne's link: NPR link
20 August 2008
Financial Advice
Sorry if people find this boring, but here's a few notes on investing and the economy.
There's always an inflation spike after a war (Wealth and Democracy, p36), due the excess gov't spending (and were making the record books on this one). How to protect against inflation? An inflation protected mutual fund, like this one by Vanguard. Bonds and gold traditionally do well in times of inflation and a slow economy.
If you don't really understand any of this, don't go out and bet the farm on this fund. Start studying.
A financial advisor I like:
Paul B. Farrell
There's always an inflation spike after a war (Wealth and Democracy, p36), due the excess gov't spending (and were making the record books on this one). How to protect against inflation? An inflation protected mutual fund, like this one by Vanguard. Bonds and gold traditionally do well in times of inflation and a slow economy.
If you don't really understand any of this, don't go out and bet the farm on this fund. Start studying.
A financial advisor I like:
Paul B. Farrell
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