The Sure Double Dip in Housing

It’s not often we clearly see an iceberg through the windshield filled with our foggy future, but Meredith Whitney says she has seen one when she said, “The housing market surely will double dip.” When we hear such comments there are two things that we need to think about before we accept or reject what […]

Pension Canaries in the Coal Mine

Today the Financial Times reported that “California has acted as the canary in a financial coal mine lately for the rest of the US.” They have recognized the problem of promising much without the ability to deliver. But they haven’t got a real solution. “Northwestern University calculated before the latest bear market that, using risk-adjusted […]

The Risk is Shifting

The UAW ended an over 30 year run of no strikes today when the workers walked out. One issue is the continual loss of union jobs due to closing plants and the union wants to stop that, although I don’t see how they can reasonable ask GM to predict car sales and production capacity into […]

Will We Ever See a New Pension Fund?

Yes, we are now at the point that it’s hard to imagine that anyone would start a new pension fund (defined benefit) ever again. Companies have put the risk solely on the employee to be responsible for their own monetary needs. I think there are a couple of major reasons for this. First, the risk […]

Funding of Social Security and Medicare

Today, we see that the new projections show that SS will start paying out more than it’s intake by 2017 and the trust fund will last until 2041. The change in the projections was minor, only a year longer, and the reason was obvious, more coming in, less going out. SS can be fixed though […]

Conflicts of interest and disclosure

I often market the comparison of a financial adviser to a doctor. Advisers should be the person you go to for your financial well being. But not all those that call themselves “advisers” are equally interested in your well being as compared to their own. A Security Exchange Commission’s rule regarding disclosure, one that many […]

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