Steve Forbes wrote an article back in October for his magazine. And you should read it. I speak to so many people each week who tell me “I don’t understand what/how this all happened!” Forbes does an excellent job explaining how (and why) the economy ground to a halt over the past year. It will [...]
Investment Advisers vs Brokers : Big Difference
June 21, 2008 by
Oh boy, these kinds of headlines are never good. Two former Bear Stearns portfolio managers were arrested this week, not because they did a poor job of managing money. They were arrested because they misled investors in a few ways: They told investors they personally had more money than they actually had in the fund [...]
Value of Bonds : Goldman Stearns and Lehman Sachs
March 22, 2008 by
All these firms hold the same investments. There is STILL considerable risk in the group. Why did this happen to just Bear Stearns? One of the first things I learned about investments was when it comes to bonds, think chocolate and vanilla, super simple: when interest rates rise, bond prices (values) go down. And when [...]
Stocks Impacted by Bear Stearns, part II
March 16, 2008 by
UPDATE: Sunday evening, 03/16/2008: Bear Stearns to be acquired by JPMorgan Chase for $2.00 in stock swap deal. That is NOT a typo! The stock closed at $30 on Friday. On Thursday, it was $57.00. And yes, it was $150 last summer. This, essentially became a giant margin call on Bear Stearns. Apparently, cash — [...]
Nationalizing Banks Could Be The Key To End The Recession
The Treasury announced they will begin to inject capital (money) into banks, under terms created under the bailout bill. This article will try to walk through, in English, what this all means. As part of the bailout bill (or TARP: troubled asset recovery plan), one provision that was mostly overlooked during the congressional hearings and [...]