Consumerist
videos
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mysterious
Guy Who Made More Than $7 Billion Off Madoff Found At Bottom Of Pool
Jeffry Picower, the only Madoff investor to wind up on the Forbes list of the 400 richest Americans, was found dead at the bottom of his pool Sunday, says the AP. He is accused of making more than $7 billion off of Madoff's ponzi scheme. More » -
science says
Either Have The Temerity To Hold Stocks Or Get Out Of The Market
One of the first studies of the recent market splat found that the investors most likely to be crushed thought they were investing for the long haul, only to be forced into cashing out at the worst possible time. According to the study, cleverly titled "When Everyone Runs for the Exit," there are only two good ways to react to a liquidity crisis: hold onto your portfolio and trust that it will recover, or fold immediately to limit your losses. More » -
advice
Be Your Own Financial Regulator
Any sort of federal agency to protect consumers from abuse from the financial industry is months, or possibly years, away, notes Linda Stern of Reuters. That's why you shouldn't depend on such an agency to protect you in the meantime. In fact, you can take her advice and use it no matter what happens at the federal level. More » -
economy
Daddy, Is The Recession Over Yet? Handy Chart Holds The Answer
When are we going to pull out of the recession? The Kiplinger Recovery Index thinks it can tell you, using a sophisticated system of red and green colored boxes and checkmarks and X's. More » -
stocks
The Best Way to Maximize Your Investment Return
There are three variables that impact the total return investors receive from an investment: the amount saved, the return rate, and the amount of time invested. Most investors spend a good amount of time and effort trying to increase all three. But what if we can't do all three, if we're inhibited by time, skill, knowledge, or ability (after all, many fund managers spend a lifetime trying to eek out an additional 1% return with limited success.) If we could only focus on one of the factors to impact, which is the best option? What is the best way to maximize investment returns? More » -
ponzi schemers
Madoff Asks Judge For 12-Year Sentence
CNN just reported that Bernie Madoff's lawyer has submitted a letter to the judge who will be sentencing him next week, asking for a 12-year sentence.
"Mr. Madoff is currently 71 years old and has an approximate life expectancy of 13 years," wrote Sorkin, whose letter was released on Tuesday. "A prison term of 12 years - just short of an effective life sentence - will sufficiently address the goals of deterrence, protecting the public and promoting respect for the law."
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Here are 5 personal finance podcasts to subscribe to, download, and argue with during your commute or workout. [Automatic Finances] (Photo: uhuru1701)
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investing
10 Things Financial Planners Won't Tell You
Right after politicians and lawyers, financial planners have to be the most mistrusted, suspected, and questioned profession these days. And with good reason. With the Bernie Madoff's of the world running rampant, fewer and fewer people are willing to turn their life savings over to someone else. (Yes, we realize Madoff was an investment advisor, not a financial planner per se, but you get the meaning.) Well, after reading this, you'll probably be even less likely to hire a financial planner. financial planners won't tell you as follows: More » -
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Bond traders say stock traders are wrong, the Fed will not increase interest rates this year. [Bloomberg]
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interest rates
Interest Rates Will Rise Within The Year, Markets Bet
As growing global economic optimism begins to build, the market is betting that the Fed will raise interest rates by the end of this year. This will mean mortgages will get more costly and credit card APRs will rise, but the interest you make off your savings account will go up. [Bloomberg] (Photo: Ben Popken) -
investing
What The Heck Is An ETF?
What's an ETF? This NYT article is a good introduction to exchange-traded-funds (ETFs). Mostly, ETFs are mutual funds that are pegged to financial indexes, but unlike a mutual fund, they can be traded throughout the day like a stock.The takeaway: More » -
ponzi schemes
Frontline Investigates Bernie Madoff
PBS's documentary show FRONTLINE took on Bernie Madoff this week, exposing the history of his operation and how the SEC let him slip through their fingers. More » -
ponzi
Brooklyn Cab Driver Convinces You He Has A Hedge Fund, Steals $20 Million
Oh look, another Mini-Madoff! Meet Alan Fishman, 49, a livery cab driver from Brooklyn, NY who convinced people he was a hedge fund mastermind. More » -
personal finance
Personal Finance Columnist's Financial Advisor Accused Of Fraud
Last week, New York Times personal finance columnist Ron Lieber discovered that his family's financial planner was being investigated for fraud, because millions of dollars had been transferred out of clients' accounts without authorization. What's funny is Lieber found the financial planner while writing a column on how to comparison shop for one. More » -
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bailouts
Markets Leap On Treasury's Troubled Asset Purchase Details
Markets jumped after the Treasury presented the fleshed-out details of its plan to buy troubled bank assets. The need for getting toxic assets off bank books has been around for quite some time, but has stalled because banks and investors couldn't compromise on the price. Banks didn't want to sell for less than 60 cents on the dollar, investors didn't want to pay more than 30. The Treasury plan makes the two ends meet by providing $75-$100 billion in financing for buyers. For it to work, private investors will have to step up, but with the S&P leaping up 7.1% the street is betting they will and it will unclog the credit markets.
Geithner Relies on Investors for $1 Trillion Plan [Bloomberg] (Photo: {Guerrilla Futures | Jason Tester})
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leaks
Surviving A Lynch Mob - AIG Internal Staff Memo
Via Gawker: Considering the profound social unrest surrounding just about every aspect of their entire existence, AIG disseminated the following memo to their staffers to help them avoid getting hoisted by their necktie the nearest lamppost. More » -
media whoring
Ben Popken On "To The Point" Today At 3
I'll be on "To The Point" later today from 3-4pm eastern. We'll be talking about how lost confidence in the financial cabal plays into people doing their own investing. From the show notes:
American capitalism's in crisis, and the public has lost confidence in banks, money managers and business reporters - even the Treasury Department. Friday, on To the Point, If the smartest guys in the room aren't reliable, who do you trust with your money? Will the US become a nation of online traders?
To The Point is on many NPR-affiliate stations or you can listen online here by clicking the "Live" button.
What do you think? Has the financial crisis lead you to become a more self-directed investor, or made you even more interested in the advice of a financial planner?
The Great Recession and the Erosion of Trust [To The Point]
