Archive for the ‘Finance’ Category

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Best Global Brands of 2009 Infographic

December 15, 2009

Best 2009 Brands

aled 27%.

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I love a good conspiracy theory

August 15, 2009

But this is for real…an explanation of the function of the Federal Reserve (ie “Fed”) comparing it to similar functions able to be done in World of Warcraft (an online role-player game ie WOW RPG). Long story short, why it serves you well to always look for ways to barter rather than use cash.

(WOW) Blizzard, for example, has a system of money goods and services on World of Warcraft. The economy inside the game requires labor (grinding, questing, leveling) for every good that is dropped. If you could see a chart on this, the amount of goods that exist in game should rise roughly proportionally to play time of all characters.

(REAL) Money, before the Federal reserve worked like this. Anyone who extracted a resourse like lumber, gold, silver, animal furs, did so at a cost of labor and time. The amount of goods in existance is equal to the amount of labor used to extract/create it. They could trade those items directly but in real life (unlike WoW) they can’t carry them all around. So they gave them to a third party store owner who had a vault. Paid him a little money to keep them in the vault and got a recipt for each of the items stored. Rather than carrying bear pelts and gold everywhere, it was convenient to just trade the recipt knowing that a trusted source is keeping the goods in store should anyone want to redeem the recipt for the real world items. The Paper has NO ACTUAL VALUE; it’s the items in store that the paper represent.

(WOW) Gold Farmers use programs to automate play on ten computers at once, monitored by just one guy to keep it running undetected. They can get goods at a FRACTION of the labor costs everyone else pays. This means they get more value when they trade it. Farmers can trade their goods for items that take 10x as much time to find/make.

(REAL) A Bank today runs on fractional Reserve Requirements. That means that whatever amount of money you want in your loan, they can create right there provided they have 1/10th of the amount in their vault. They get money at a FRACTION of the labor costs everyone else pays. This means they get more value when they trade it. Banks can “LOAN” money they don’t have and you have to work off the full value of the loan plus interest. Banks that pay just 1/10th of your actual house cost (and print the rest) literally own your house until you work of the full 100% cost PLUS INTEREST.

(WOW) But the REAL winner is Blizzard. They can manufacture as much of these wow$ as they want with a single keystroke. They can make any character’s bank have any amount of money. Imagine they suddenly flooded trillions of gold into the system and people began buying up all the rare items on the auction house. More $ would be chasing fewer goods causing all the prices to go up FAST. Even if you’ve saved your whole character life trying to get to the point your guild could retire from the GRINDING and just have some fun… your savings are stretched thinner and thinner now and you have to keep working to get by.

(REAL) The Federal Reserve can manufacture as much of the paper/digital dollars as they want with a single keystroke. They can secretly fill anybody’s account without permission from congress. They can suddenly flood any market with trillions causing inflation and artificial price increases. They do this for two reasons; 1) to flood the housing market means people will have to take out larger loans and work even MORE to pay off a property that is actually worth less. Many properties are defaulted and the bank which has done NO labor now owns the house you worked hard for. 2) When they then contract the money supply and cause the market to deflate, there isn’t enough money in the system for everyone to get ahold of some causing more bankruptcies and more free property for the FED.

They also punish your parents and grandparents who have worked their WHOLE LIVES to pay off their houses and get to a place where they can retire and afford the things they need. When they print money they steal value from people who have saved, meaning Grandma no longer can afford to relax and has to keep grinding away.

(PS do you really think that you will ever see online WoW gold sales gone forever? Even though Blizzard impliments all kinds of Farmer prevention acts, it’s an illusion… Blizzard is not regulated by the gaming commission; their employees can make Millions of side profit money selling their imaginary credits online… income that is less traceable and untaxed. They won’t ever stop selling gold online.

And the Federal Reserve is scared shitless that we might see what they’ve been doing with our savings… they are fighting HARD against Ron Paul’s Audit the Fed bill to keep their private secret actions to themselves)

(PPS It should also be mentioned that the Federal Reserve is actually owned by a cartel of banks like JPMorgan, Chase, etc, not only are their actions allowed WITHOUT congress or treasury approval or oversight, but the owners are secret too!)

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Morningstar Advisor: The Lizards are Winning

April 4, 2009

Full article about overload of convoluted economic information and advisers playing on the emotions of regular investors here.

An increasing number of investors are responding not with their highly developed cerebral cortexes, but with what Bob Veres so aptly described as our lizard brain. This reptilian, preverbal remnant causes us to react to what we perceive as danger with a flight or fight response. When investors can’t comfortably assess the danger and don’t know how to evaluate whether it is getting better or worse, it is not surprising that so many have responded by fleeing equities for the perceived safety of cash.

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The ‘Lie to Me’ Syndrome

April 1, 2009

Neat article...I kinda wish I had published a blog I wrote two weeks ago about what the recent surge in stocks really looks like in terms of fairly valued Price-to-Earnings ratios. Long story short: go short not long in these days.

That new television series “Lie to Me” is not just brilliant, like Col. Jessup’s “mad-as-hell” response, it’s an indictment of the “wimpy” syndrome that’s infiltrating the investor’s brain.

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Want to See Media abuse of Investors?

March 27, 2009

I just peeped the new, sexy Yahoo Finance “Tech Tab.” Now, I don’t go to Yahoo finance because other people report what’s there to me. However, I have to say, it is going to hurt you.

Notice the stationary $7 advertisement below? Thats Scottrade!

Notice the stationary $7 advertisement on the "stock picker" window?

Your first clue is that it’s sponsored by Scottrade, which just needs you for your trading fees. Let me direct you to zecco for some cheap trading thrills on a sexy platform if that’s what you want. Your second clue is the actual name of the page as you can see in my navigation bar is  “Technology stock picker.” NO it is NOT.  Just because tech has been the big mover recently doesn’t mean you should be trading to “smell profits in the morning” as the advertisement says. Please do NOT pay attention to this feature. Head over to google finance and holler at me if you need help setting your personal page up. It’s easy to use and really functional.

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Things to Consider When Entering: The Exit

March 25, 2009

Do you often wait to make decisions until you make considerations in the case of deciding or needing to  change course? I myself find it hard to imagine that I’ve already made a bad decision and I find it especially infuriating to play devil’s advocate with my own future while trying to make a decision now. But in general, the considerations that will make me change course are the same. And buried deep in Fidelity’s own information pages, I found them spelled out.

For investment advice,  if you are so inclined to do your own research, I recommend that you check out The Motley Fool website. Or pay a tax attourney, accountant, and/or financial advisor to help you. Remember that you are responsible for the outcome and they are responsible for their advice. Big difference.

On the Fidelity webpage that tells me how to get my money out of L-3’s 401k, which is filled with information for people who’ve already decided to exit, are these three bulletpoints introduced as “considerations” for leaving the money IN:

•   You may have more restrictions than active employees (such as limited number of annual transactions)
 
•   You may be charged fees 
 
•   You may have limited investment options 

Points one and three are essentially the same. Fidelity lightly reminds you that you “may” want to leave your options open. And that you “may” be paying fees along the way no matter what. I assume that for most people, this info generally isn’t what you’re looking hard at the time you decided to get into this. Hey, me neither. I had just heard that Fidelity is like, the best place for a bourgeoise like myself to “invest.” Now I know that just like any other choice I make, options and fees are the main themes to get more information on when deciding what to do. It’s all the same.

So how about thinking through these sentences next time you’re deliberating:

  • “This may restrict me __how_”
  • “This may cause me to pay __what_”
  • “This may limit my options __where__”

The use of the auiliary verb “may” is both a present and future possibility! Just keep it in mind.

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x3 ETF Rant on WB Proven Accurate in 3x Weeks

March 3, 2009

A day trader who likes to play with x3 ETFs (those that return THREE times the amount of proportional gains by the stocks it tracks or shorts) wrote this funny rant on Warren Buffet. It was published only three weeks before Buffet himself admitted to his shareholders that he was “sucking his thumb” while making the worst trades of his life last year:

“An investor like William Buffet as far as I’m concerned can jump off a bridge, he was put into one of the largest bull markets ever when stocks were their cheapest. Were Buffet started with 3k in cash today and forced to depend on his ability to trade, I think he would be eating cat food out of a can with a rusty spoon. His nick name would be Hobo Bill and he would tap dance for nickels.”

I explained ETFs as a way to bet for or against a sector without even leveraging capital on margin, in my article last week, “The Many Stocks that are Winning.”