Monthly Archives: February 2009

Further Proof that Index Funds Beat Active Management

Index Funds Win Again Expenses were the culprit. For both the actively managed fund and the hedge fund, those expenses more than ate up the large amounts — 3.5 and 9 percentage points a year, respectively — by which they … Continue reading

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1 in 9? Seriously?

No One Home: 1 in 9 Homes Vacant – USA Today

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We Weren’t Wealthy. We Just Thought We Were.

Fed Calls Gain in Family Wealth a Mirage In its triennial survey of consumer finances, released Thursday, the Fed found that the median net worth of American households increased by a seemingly healthy 17 percent between the end of 2004 … Continue reading

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Big Problems in European Banks

Download 2009-2-20 John Mauldin While Rome Burns See especially his section titled "The Risk in Europe"He also has some sobering thoughts about the long-term equity return of 8%.  Yikes. "The problem is that in Europe there are many banks that … Continue reading

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What Happens When Foreigners Stop Buying Our Debt?

NYT, 2-21-09, http://www.nytimes.com/2009/02/21/business/21charts.html?ref=business

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Madoff — What a guy…

WSJ, 2-21-09, B3 The trustee liquidating Bernard Madoff's investment firm said there was no evidence that Mr. Madoff bought any securities for clients in at least 13 years.

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Nationalize the Banks?

"Six months from now," he replies, "even firms that today look solvent are going to look insolvent. Most of the major banks — almost all of them — are going to look insolvent. In which case, if you take them … Continue reading

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Gallows Humor

It is now cheaper to buy a share in Citigroup than to withdraw cash from one of its ATMs. Citigroup's shares closed at $1.95 each on Friday.  Customers of other banks pay $3 to use a Citibank machine.

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Hedge Funds Getting Squeezed

The long-awaited shakeout of hedge funds may be in sight. "Brokerage firms are reducing financing and other services to hundreds of hedge funds, in a move that could accelerate the shakeout among these heavy-hitting investors." Download 2009-2-17 Brokerages Tighten Hedge … Continue reading

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Michael Lewis Commentary

Michael Lewis Bloomberg Article Lewis is always a must read.  He has a way of putting things…  "In the past year I’ve witnessed more crimes against financial nature committed than in the previous 20 combined: former Merrill Lynch & Co. … Continue reading

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