Archive for July, 2008

Thursday, July 31st, 2008

China borrows from SEC, Limits Share Sales

Absolutely amazing!  China is limiting share sales to prop stock market.   It’s only a matter of time before the whole thing plunges and falls apart; what will be the catalyst? Aug. 1 (Bloomberg) — China is restricting approvals for share sales to keep new supply of equities from putting additional pressure on the world’s […]

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Thursday, July 31st, 2008

Prepare for Black October

Now that the Fed, US Treasury, Congress, SEC, and Wall Street have all conspired to keep the market afloat, the only logical thing that can happen next is a market collapse.   I’m guessing that late September or perhaps October will result in a dreaded “black __day” event. I’m wondering why the new housing bill didn’t […]

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Thursday, July 31st, 2008

Should My Friend File For Bankruptcy?

I had an interesting discussion with my friend a few days ago. About a year ago he borrowed $40,000 (at 0%) on credit cards to invest in the stock market. He had asked me about investing in the market and I advised him AGAINST borrowing credit card money. He asked me why I could do […]

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Wednesday, July 30th, 2008

Young Investors Should Embrace Leveraged ETFs (with Covered Calls)

I’m convinced that young investors should focus on leveraged index funds. There simply isn’t any question in my mind about it now. Take a look at this chart. The chart above compares the Dow Industrials with DDM (Dow 30 leveraged). As you can see from the chart, when the Dow rallies, DDM spikes right with […]

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Tuesday, July 29th, 2008

See Brandon, I Told You OIH Would Drop

This post is dedicated to Brandon, my favorite antagonist commenter.   A couple of months ago in this post, I outlined my investment strategy to help bring focus to how it works and why it works, at least for me.    It’s all about exit strategy and I exited OIH a while back when the ETF rallied […]

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Tuesday, July 29th, 2008

Mervyns Near Bankruptcy; Wachovia and CIT Group On Hook For Loans

According to BizJournal, Mervyns will file for bankruptcy soon. Wachovia and CIT Group on the hook for loans.  This on the heels of Bennigans filing for bankruptcy (hat tip The Travelin’ Man).   It’s getting ugly out there. Glad I moved cash out of the system. Good luck. Mervyns LLC will file for bankruptcy protection […]

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Tuesday, July 29th, 2008

Beware Gift Cards During Recession & Bankruptcy!

Calculated Risk had a nice link to an article summarizing all the retail bankruptcies so far this year and I have no doubt there will be a few more. I’m anxiously trying to find a way to let my family know that I don’t want any gift cards (of any kind) this year for birthdays […]

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Monday, July 28th, 2008

FDIC Game of Musical Chairs, Who’ll Be Left Out?

Do you remember the musical chairs game? The FDIC Game of Musical Chairs is similar: FDIC Musical chairs is a game played by a group of people (usually clueless consumers), often in a panic setting purely for defensive purposes such as a classic bank run. The game starts with any number of banks and a […]

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Sunday, July 27th, 2008

Dinner and A Movie Now Cost $115.25

The kids were spending the weekend with their aunt so my wife and I were left alone for the weekend. We opted to go out on a “date” on Saturday and settled on dinner & a movie. We figured it would be an inexpensive night out since this Brazilian steak house sent us a two […]

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Saturday, July 26th, 2008

Your Paycheck Should Flow Into Multiple Accounts

Right now isn’t the time for complacency with your banking; your paycheck should be flowing into at least two bank accounts.   The FDIC just reported two more bank failures and things aren’t looking good for some of the big banks. The main issue you want to avoid is not having access to any of your […]

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