Archives for March 2012
A Forgotten Truth about Money
In a scene from the movie Moneyball, Scott Hatteberg is asked to play first base for the Oakland A’s and responds, “I’ve only ever played catcher.” GM Billy Beane (Brad Pitt) tells him, “It’s not that hard, Scott. Tell him, Wash.” Ron Washington responds, “It’s incredibly hard.” Saving money and investing are incredibly hard. You have to save until it hurts. Then you need to contribute to your IRA. But the more money you save, the more money you have to compound—which can be a lot of fun. So keep saving. The grim reality is that we have a nation of non-savers. The savings rate is … [Read more...]
VIDEO: Jim Grant on QE3
Bernanke’s Clever Ruse
It’s official. The Bernanke Fed has gone mad. Less than 24 hours after the biggest stock market sell-off of the year (a scant 1.5% drop) Bernanke & Co. are out floating trial balloons on possible QE3 mechanics to remind investors that a third round of money printing is still on the table. The intention is, as usual, to prop up the stock market. The Fed is trying to setup a no risk proposition for investors. If the economy weakens, the Fed will print more money to prop up stocks. If the economy strengthens, the hope is that the stock market will rally on improving economic data. The … [Read more...]
VIDEO: Coming Sovereign Debt Crisis-Marc Faber
50% Tax on Dividends
Determining your income needs for retirement is no easy task. In terms of enjoyment, it is right up there with getting a root canal and filing your taxes. And at least with tax returns, there’s hope of a refund when you’re done. Not so with retirement budgeting. Once you have some figures laid out on paper, you get to present the budget to your spouse. That’s when you realize she actually was paying attention to you—and whatever toys you bought last year. So you work through all that—the credit card bills and bank statements are marked and dog-eared—and it’s time to move forward. But … [Read more...]
Dr. Bernanke’s Scorched Earth Monetary Policy Claims another Victim
It seems the Fed’s perpetual zero percent interest rate policy is not only robbing retirees and responsible savers of income; it is also costing companies billions and putting the corporate pension system at risk. Thomas Black from Bloomberg writes: General Electric Co. (GE), Boeing Co. (BA) and 3M Co. (MMM) will join big U.S. employers in making a record $100 billion in 2012 pension contributions, 67 percent more than two years ago, as low interest rates boost companies’ liabilities. Payments may total $400 billion from 2011 through 2015 to ease underfunding at the 100 largest … [Read more...]