Archive for September, 2008
« Previous EntriesThe Market Falls While Congress Stalls: My Plan Revisited
Tuesday, September 30th, 2008When the U.S and international markets experienced their first drop following the failure of U.S. investment banks, Mr. ToughMoneyLove described his tactical money moves in response. I then described why doing nothing aboout our investment allocations was an appropriate strategy.
Yesterday’s market crash was yet a new event to consider because of both its depth and breadth. By [...]
Looking for a Financial Planner or Advisor? Start Here.
Monday, September 29th, 2008A New Era Dawns in the Need for Personal Financial Planning
As the chaotic behavior in the markets subsides, and with increased regulation of financial services on the horizon, a new era in retirement planning and financial planning will likely set in. Tax rates will have to sharply increase to pay for recent government rescues and bailouts. Baby [...]
Why Washington Mutual Deserved to Fail
Sunday, September 28th, 2008Mr. ToughMoneyLove has been beating up on Washington Mutual both before and after its failure. It wasn’t always this way. In fact, in 2007 I owned stock in WaMu but I sold it late in the year when WaMu cut its dividend. When a bank reduces its a dividend payment, it is a warning sign [...]
Personal Finance Week in Review - Waiting for More Hard Truth
Saturday, September 27th, 2008Congress Wavers While WaMu Craters
Mr. ToughMoneyLove has credit crisis fatigue. Whether you call it a rescue or bailout, the future of the “plan” has been placed squarely in the lap of Congress. I think the plan treats the symptoms not the cause but at this point, all we can do is wait for the hard truth to [...]
SEC Orders Hedge Funds to Disclose Trading Information (Now We’re Getting Somewhere!)
Friday, September 26th, 2008Manipulation of Stock Prices by Hedge Funds?
According to a story reported by the Wall Street Journal yesterday, the Securities and Exchange Commission has ordered two dozen hedge funds to turn over stock trading records. Apparently, the SEC is concerned that these hedge funds were manipulating the stock prices in six financial services companies (Goldman, Lehman, WaMu, [...]
Liquidity Conflict in the U.S. Economy – Spenders vs. Savers
Thursday, September 25th, 2008The Credit System is on Life Support
There was another round of dire warnings issued from Washington yesterday, capped off by a somber speech from President Bush. The fundamental message is consistent: The credit markets are clogged. There is not enough flow of money from lenders to borrowers to support economic growth.
You might conclude from this [...]
The Relentless March of the Financially Clueless
Wednesday, September 24th, 2008Congress Plays the Blame Game
As expected, Congress is fully engaged in grandstanding and pontificating over the Paulson/Bernanke bailout plan. Public statements from congressional hearings serve as a catalyst for continued volatility in the markets. The Democrats countered Paulson’s three-page bill with a forty-page bill of their own. “OK Mr. Paulson, I’ll see your $700 billion [...]