Wednesday, July 17, 2013

Bernanke, The Face of Modern Day Capitalism

"I Don't Think So"
When asked if it were fair to say that Wall Street had benefited more than Main Street from the Federal Reserves' stimulus, Mr. Bernanke's response was "I don't think so".  It goes to show even Central Banksters are as much politician as they are bankster.

Survey Says...
C'mon.  The Federal Reserve has more than enough data at its disposal which should clearly show that the main benefactor in all of this is, in fact, Wall Street.  Stock market prices are racing to all-time highs while employment rates and the numbers for full time employment remain stuck in the mud.  Is Mr. Bernanke asking me to believe he is not aware of what those numbers really mean?

Lies, Damn Lies...
To me, the big problem in looking right at the camera and lying because they think that everyone else is too stupid to know any different, is it destroys the credibility of their whole argument.  They may not think we can prove they are lying, but we don't need degrees from Harvard University to know when they are, and where the money is ending up.  If they are lying about these things, then what else are they lying to us about?

Practice Makes Perfect
I was never a fan of the ideas that government's borrowing of more money is the solution to government's borrowing of too much money, or that banksters should be rewarded for gambling away the wealth of nations by giving them more money to practice with.

The Morale of The Story
In the end, Mr. Bernanke will be long gone and away from the scene when the problem chickens begin to come home to roost.  Again, the average working slob will be left picking up the pieces of yet another failed experiment - failed in the sense that it did not help anybody but the immediate benefactors.  Clearly, Mr. Bernanke and his ilk will have accomplished their mandate if they can suspend judgement just long enough that the perpetrators have enough time to laugh all the way to the bank before people wake up to the fact that new regulations are required that hold politicians, CEO's, and banksters, including Central Banksters to account.

Do you reckon they might end up wrecking the joint before that can happen?

Tuesday, July 2, 2013

Fight Back - Ellen Roseman

Click Here To See The Video

What To Buy
Ellen Roseman is the author of "Fight Back".  I have not read the book, but wanted to highlight some of the things said in this interview.  Ellen makes the point we need to invest only in the things we understand.  We should not buy products we don't understand especially since financial advisors get paid for selling us product, whether we understand what we are buying, or not.  Know how the advisor is compensated - it determines what they sell and what they don't.  Also, we are told to get references every time we hire a professional - why not for our financial advisor?  Don't stop there, either, search online.  Employers do it all the time now, we should as well for the people we want to hire.

Start Small
There is no other hobby, or part-time job that can make us the amount of income that investing can.  Why more people don't learn how, is beyond me.  Ellen suggests starting small and increasing the percentage of one's self-managed portfolio over time.  Avoid getting overwhelmed - start with the advice of the bank you already deal with.  As for international diversification, she recommends it.  To me, that is out-dated advice.  Inverse Exchange Traded Funds allow us to make money when the market is falling, not just when it is rising.      In my humble opinion, most people don't know enough about foreign markets to invest in them.  Paper trading is the best way to start to learn the mechanics of investing.  Investopedia has one such free account to start the learning process.

Have you ever used an inverse ETF, or started by paper-trading?