Category «financial»

"He saved the American auto industry"

I keep hearing about how Obama saved the US auto industry and I don’t understand why this is going unchallenged. FIrst off, by “US auto industry” they must not mean Ford, and it does include a majority foreign owned company. And by “saved” they mean that GM and Chrysler were prevented from going through the …

Investment grade debt

Most actual investment (as opposed to places to park your money) involves buying debt. Or to put it another way, you loan money with the hope of making more later on. Bonds are the most common way to do direct investment, you have a time frame and a specific rate of interest. Stock IPO’s are …

Italy is taking on water

Italy has now officially gone over the “Oh Shit!” threshold for financing its debt. It can’t roll over its debt obligations when the interest is north of 7%. There are talks of the IMF getting involved which means that the US taxpayers may end up footing some of this before its over. Germany is supposedly …

Planning for disaster update

Ok, the moment I withdrew the bulk of my portfolio from stocks, the market went on a bull run. Grrr.. That’s the thing about being conservative, you avoid the downside, but you miss the breakouts too.   Still, noting has changed for the better in Europe. There’s still a lot of shuffling of deck chairs …

Planning for disaster

From Megan McArdle’s blog:   “In an interview with IMF advisor Robert Shapiro, the bailout expert has pretty much said what, once again, is on everyone’s mind: “If they can not address [the financial crisis] in a credible way I believe within perhaps 2 to 3 weeks we will have a meltdown in sovereign debt …

Things seem to be falling apart

Wow wee, that was a rough couple of days. I’m sure there’s going to be more panic selling the rest of this week too. The strange thing is that the downgrade doesn’t seem to have hurt treasuries, people seem to be flocking to them as a safe haven even though those are the things that …