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XMFSinchiruna (27.08)

Giving With Every Comment - Part II

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December 08, 2009 – Comments (125)

Because some of us Fools began to experience sluggish performance of their web browsers with a page of its size, I have created Part II of the Giving With Every Comment blog post to offer an alternative forum to gather comments, amass pledges, and promote discussion of financial topics relevant to areas of study for Thurgood Marshall Academy students and/or parents.

Although I hope for the original post to reach the 2,000 mark, any comments accumulated here will count towards the total if need be, and certainly any and all content relating to financial topics will be likewise play a role in shaping lesson plans for the volunteerism component of the Foolanthropy campaign. 

Thanks to Mary for an excellent suggestion, and thank you again to all Fools for keeping this magical momentum alive. 

Here is the beginning content from the original post:

I don't know if Fools had a chance to check out what the Motley Fool is up to for this year's annual Foolanthropy campaign, but I'm excited about it and wanted to remind you all that every comment you make on this site between now and January 8, 2010 will add a dime to the Motley Fool's donation to this year's selected cause ... for an additional community-driven pledge of up to $20,000!!!

What I love about this year's selection is how personal it is. It's a specific commitment to make a difference at a specific school that is already succeeding in making a difference in the lives of young Americans in the Motley Fool's greater DC metro corner of the globe. The Foolanthropy campaigns have long been an example of 'think globally' since turning the foolanthropy focus to financial literacy in 2007, but with this year's focus the company is 'acting locally', and adding an exciting element of volunteerism to the campaign.

Volunteers from Fool headquarters will visit the Thurgood Marshall Academy in Washington DC throughout the year to hold workshops and presentations to improve the students' collective understanding of relevant financial topics from personal finance and household budgeting to the fiscal state of our nation. Thurgood Marshall Academy has thrown demographic trends out the window by graduating 5 consecutive classes of seniors with an incredible 100% college acceptance rate!! For the broader community outside this one school, the stats tell a different story: "Only one in three students finishes high school within five years, and of those who do, only one in 20 earns a college degree within five years of graduation."

If you support this initiative, then keep those fingers moving on your keyboard to make sure we max out that $20,000 community-driven portion of the campaign. If you are touched by the effort to impact one great school in a focused and personal way, consider making a tax-deductible donation to the school yourself. If you're inspired by this effort to go out and make a difference in your own community, then please reach out to your local schools or through related volunteer organizations like Jump$tart, Junior Achievement, NCEE, or Operation Hope. Every Fool of every level of expertise has received a crash course in financial literacy of a special kind through processing the remarkable events of the past couple of years, and it's time to pay it forward to the generation that will be handed the debt from this whole debacle.

Thank you for contributing a dime with your comment to this post and every other comment you make through January 8, and for contributing to the broader cause in any way you are able.

TMFSinchiruna

 

125 Comments – Post Your Own

#1) On December 08, 2009 at 10:57 AM, cthomas1017 (98.57) wrote:

So let me start...

MaryAnn or Ginger?

Since this is an investment blog, I answer, "Neither.  Mrs. Howell is obviously the best investment in time." 

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#2) On December 08, 2009 at 11:18 AM, outoffocus (23.43) wrote:

Speaking of good causes, one of the best investments is an investment in lives.  The Feltonville Dream Center is a grassroots nonprofit organization that works to help the citizens of impoverished communities achieve their dreams. If you want to make a difference in people's lives (and could use the tax deduction) stop by www.bridgeteam.net and make a donation.

Spread the love everybody.  Spread the love.

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#3) On December 08, 2009 at 11:19 AM, motleyanimal (48.85) wrote:

Listening to Larry Kudlow rant against minimum wage laws and extended unemployment benefits is getting me riled this morning.

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#4) On December 08, 2009 at 11:37 AM, silverminer (30.48) wrote:

#1339) On December 07, 2009 at 11:36 PM, TMAWarrior (< 20) wrote:

Hello Fools and those who love them,

My name is Jessica Sher and I'm the Director of Strategic Programs and Partnerships for Thurgood Marshall Academy. 

I am absolutely floored by your responses to TMFSinchiruna's challenge.  Thank you so much for commenting. 1324 comments in four days is impressive.  But even more impressive is the fact that members of TMF community donated almost $1200 dollars in that same short period of time too.

At Thurgood Marshall Academy, we spent approximately $3500 more per student than a traditional public school.  Our students' successes---which include 100% college acceptance for our first five graduating classes and the highest combined test scores of all non-selective schools in Washington, DC---are possible because of donors (via comments or our website!) like you. 

Thank you!  Thank you!  Thank you!  Keep the comments (and donations) coming!

www.thurgoodmarshallacademy.org 

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#5) On December 08, 2009 at 11:38 AM, silverminer (30.48) wrote:

#1285) On December 07, 2009 at 9:35 PM, TMFTomG (76.96) wrote:

Hmm. 1268+ posts. I'm ready to issue another match challenge!

I'm already in for $100. And I'm ready to increase it.

Here's my offer.

I will add another $1,000 on two conditions....

1) That we get above 2000 posts;

AND

2) That the notes from here to number 2000 begin to focus on financial lessons that can be shared with Thurgood Marshall Academy students.

In my dream world, we blow past 2000 posts AND we have a collection of notes that can be shared with the students. 

What I'm hoping for are notes with personal stories, useful advice, and/or encouragement. These do NOT have to be long narratives or extremely detailed suggestions.

That said, what we are looking for are the best of the best notes that can be read by the students (and hey, we're all students on a permanent journey...so we'll learn together as we read on).

Anyone game?

Onward and upward, Fools. (And TMF Sinch, you are the truest sort of Fool).

Tom Gardner

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#6) On December 08, 2009 at 11:39 AM, silverminer (30.48) wrote:

#1286) On December 07, 2009 at 9:56 PM, TMFSinchiruna (98.19) wrote:

Tom, I'm completely blown away by the challenge ... what a terrific idea!

Let's shift the discussion, Fools. The random musings and quaint quips got us this far, and this Fool will never forget the tireless rapid-fire postings of Fools like catoismymotor, blesto, and so many others. But let's shift the discussion to focus upon financial topics in a format that Thurgood Marshall Academy students can benefit from. We'll benefit from the open forum for sharing ideas and financial paradigms, but more importantly we'll be further leveraging our effort for the greater good by speaking directly to the students about the things we have learned by being Fools while at the same time generating invaluable support for the school.

It's a perfect partnership ... Fools and schools.

Who is with me?

Onward and upward, Fools. If we can stand to the challenge, Thurgood Marshall Academy will receive at least a $2,360 from this blog post alone just based upon the pledges received to date. I have a feeling we will generate more along the way from other Fools inspired to take part.

I invite anyone out there in Fooldom to leap right in with a topic of their choice, and we can each continue to brainstorm talking points that we will all find of interest.

Let's learn together, while we give together.

Who's with me?

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#7) On December 08, 2009 at 11:48 AM, outoffocus (23.43) wrote:

I'm reposting my comment from this post.  

I will try to cover some basic tax advantages but if you could be a little more specific as to what you are looking for that would help alot.

Capital Gains and losses


Capital gains and deductible capital losses are reported on Form 1040, Schedule D. If you have a net capital gain, that gain may be taxed at a lower tax rate than the ordinary income tax rates. If your capital losses exceed your capital gains, the amount of the excess loss that can be claimed is the lessor of $3,000, ($1,500 if you are married filing separately) or your total net loss as shown on line 16 of the 1040 Schedule D, Capital Gains and Loses. If your net capital loss is more than this limit, you can carry the loss forward to later years.

IRAs

Traditional IRA

Traditional IRA contribution and deduction limit. The contribution limit to your traditional IRA for 2008* increased to the smaller of the following amounts:

$5,000, or

Your taxable compensation for the year.

If you were age 50 or older before 2009, the most that can be contributed to your traditional IRA for 2008 is the smaller of the following amounts: 

$6,000, or 

Your taxable compensation for the year.

 * It appears that the amounts are the same for 2009

Roth  IRA

Unlike a traditional IRA, you cannot deduct contributions to a Roth IRA. But, if you satisfy the requirements, qualified distributions are tax free.

Municiple bonds:

Interest you receive on an obligation issued by a state or local government is generally not taxable.Interest on a bond used to finance government operations generally is not taxable if the bond is issued by a state, the District of Columbia, a U.S. possession, or any of their political subdivisions. Political subdivisions include: 
·      Port authorities,
·      Toll road commissions,
·      Utility services authorities,
·      Community redevelopment agencies, and
·      Qualified volunteer fire departments (for certain obligations issued after 1980). 

REITS
Capital gain distributions may be paid by regulated investment companies (mutual funds) and real estate investment trusts (REITs). Capital gain distributions are always reported as long–term capital gains (and therefore taxed at a lower rate).

 

Hope this helps.

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#8) On December 08, 2009 at 12:06 PM, silverminer (30.48) wrote:

Good stuff...thank you!!

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#9) On December 08, 2009 at 12:15 PM, silverminer (30.48) wrote:

To put some faces with the community of students we are helping with these efforts, please check out this blog submitted by school representative and new CAPS member sguggenheimer.

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#10) On December 08, 2009 at 12:17 PM, lemoneater (71.74) wrote:

Now if someone would just explain the tax nature of Canandian Royal Trusts. Our North American neighbors have a lot of fantastic commodity investments to offer. Many CanRoys offer generous, stable dividends but I haven't gotten any because I do not know exactly how a CanRoy might complicate my taxes.

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#11) On December 08, 2009 at 12:30 PM, silverminer (30.48) wrote:

lemoneater

I am definitely not the tax expert ... I wish I could help there.

I can help with my vote, however, for the best CanRoy investment of the pack.

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#12) On December 08, 2009 at 12:41 PM, Mary953 (79.05) wrote:

Chris, Next comment on the other blog is yours.

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#13) On December 08, 2009 at 12:44 PM, lemoneater (71.74) wrote:

Thanks, silverminer! I will research ERF some more on my own. I'm glad to see that after 2010 the company still plans to keep its company structure suitable for income investors. I'm interested in stable investment stocks because my father-in-law is almost at retirement and he asks me for practical suggestions which he runs by his broker. (Honest brokers do exist who care about their clients' needs first.)

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#14) On December 08, 2009 at 12:46 PM, Mary953 (79.05) wrote:

For U.S. investors, the tax treatment of a Canadian royalty trust’s dividends depends on whether the trust is registered in the U.S. as a foreign partnership or as a corporation. The differences are too complicated to detail here. 

Also, the Canadian government applies a 15% non-resident withholding tax on distributions to U.S. investors. However, U.S. citizens can apply for a refund for at least a portion of the amount withheld. 

Many Canadian trusts provide information for income tax filing instructions for U.S. unitholders on their Websites. Nevertheless, it can be a complicated process and U.S. investors should consult with a qualified tax advisor before investing.

Unitholder Liability
Canadian trusts are not corporations, and in theory at least, unitholders have unlimited liability for the actions of the trust. In practice, however, most experts consider it unlikely that individual unitholders will ever be held liable for the trusts actions. However we are not experts on the subject, and you should contact a trust regarding unitholder liability before investing.

Canadian Royalty Trusts Listed On U.S. Stock Exchanges

Most Canadian royalty trusts are listed only on the Toronto stock exchange. However, the following trusts are also traded on either the NYSE or AMEX.

Advantage Energy Income (AAV)

Baytex Energy Trust (BTE)

Enerplus Resources Fund (ERF)

Enterra Energy Trust (ENT)

Harvest Energy (HTE)

Pengrowth Energy Trust (PGH)

Penn West Energy Trust (PWE)

Provident Energy Trust (PVX)

THIS INFORMATION IS TAKEN FROM http://www.dividenddetective.com/canadian_royalty_trusts.htm and I have no idea whether it is correct or not, but it is a place to start. - Hope it helps.

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#15) On December 08, 2009 at 1:00 PM, lemoneater (71.74) wrote:

Thanks Mary, that is a good place to start.

I guess the question is whether the higher dividend offsets the potential tax complications for U.S investors. Yet another value judgment investors make every day. Is there an American equivalent to a CANROY? Is there an American Energy Trust?

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#16) On December 08, 2009 at 1:33 PM, silverminer (30.48) wrote:

lemoneater

Kind of.

That particular corporate structure does not exist herem, but we do have some high-yielding energy-related plays that offer compelling starting places for due diligence.

ETP

KMP

http://www.fool.com/investing/value/2008/08/13/energy-transfers-profitable-partnership.aspx

BPT is the closest thing structurally, as it is a trust. It carries a nice dividend, but the resource on which it is based has been in a state of secular decline for decades.

http://www.fool.com/investing/dividends-income/2009/03/19/5-overlooked-gems-of-the-energy-patch.aspx

http://www.fool.com/investing/dividends-income/2009/08/04/natural-gas-is-waiting-for-you.aspx

Happy hunting

Sorry I can't offer more expertise on the tax implications.

 

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#17) On December 08, 2009 at 1:36 PM, silverminer (30.48) wrote:

Hopefully this will stir things up. :)

http://www.fool.com/foolanthropy/2009/12/08/what-1000-points-of-light-really-look-like.aspx

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#18) On December 08, 2009 at 1:48 PM, lemoneater (71.74) wrote:

Great information thank you. I will have to find out what energy investments my father-in-law already has. Now its time for somebody else to get help on a question :) or share a success!

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#19) On December 08, 2009 at 1:59 PM, AfoolwondersNot (< 20) wrote:

I thought I'd add my 2 cents. Only if my ivestments worked that way! Stick in my 2 cents and nail a five bagger.

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#20) On December 08, 2009 at 2:46 PM, motleyanimal (48.85) wrote:

Dammit, the cat flushed my dentures down the toilet again!

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#21) On December 08, 2009 at 2:50 PM, catoismymotor (< 20) wrote:

# 20 - If you stop letting your cat play with them these things would not happen!

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#22) On December 08, 2009 at 2:52 PM, lemoneater (71.74) wrote:

#20 How is Doodles doing? What is his opinion of Petsmart as an investment opportunity?

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#23) On December 08, 2009 at 3:03 PM, motleyanimal (48.85) wrote:

Doodles is wondering why we haven't seen a big 20% off sale on cat furniture from Petsmart. They have done nominal advertising and are keeping inventory tight through the holidays like most other retailers. He wants that $279.00 Kitty Condo that his Daddy is too cheap to buy for him.

Doodles has a surprise coming. I broke up some Alka Seltzer tablets and put it in his food bowl.

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#24) On December 08, 2009 at 3:07 PM, catoismymotor (< 20) wrote:

#23 - for $50 at the Goodwill/Salvation Army you can buy Doodles a loveseat. To our cats that would be better than a kitty condo.

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#25) On December 08, 2009 at 3:16 PM, lemoneater (71.74) wrote:

#23 Yeah, the Petsmart Black Friday sale was disappointing. I wasn't in town, but I had my sister-in-law check on pricing on a mechanized kitty litter box around $90. It was not on sale. Top Cat (my husband) will still buy it for Bottom Cat(aka Lord Peter Wimsey, more commonly known as Mr. Kitty) because he is tired of scooping every night. 

We made a cat tree about 3 years ago because $300 was a bit pricey, but it literally took hundreds of feet of hemp and several man hours to make. At least we had carpet scraps left over from upstairs, but it still wasn't cheap. It is taller than I am with 4 floors.

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#26) On December 08, 2009 at 4:31 PM, motleyanimal (48.85) wrote:

lemoneater, that sounds like a nice one. I have two other cats so a Kitty Condo allows them to get away from each other as well as serving as a scratching post. I have an older cat house that I suppose could be refurbished, but it has been on the patio for several years and needs all new carpet. Maybe I can find an unemployed carpet installer.

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#27) On December 08, 2009 at 4:38 PM, lemoneater (71.74) wrote:

You'd be surprised who would show up if you advertised "odd job available, must love cats"! At least carpet remnants are usually easy enough to get at home centers. 

What are the names of your other cats?

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#28) On December 08, 2009 at 4:50 PM, Option1307 (30.16) wrote:

This blog is much better!

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#29) On December 08, 2009 at 4:54 PM, jstegma (29.40) wrote:

Thanks to Option1307 for directing me to the updated blog.

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#30) On December 08, 2009 at 5:00 PM, jstegma (29.40) wrote:

The main reason I'm opposed to the Democrats' health care reforms is that I hate black people.  Thanks to Harry Reid for pointing that out to me.  Now that I've realized this, maybe we can have an intelligent debate about healthcare reform.

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#31) On December 08, 2009 at 5:04 PM, jstegma (29.40) wrote:

Buy and hold investing is about to come back into vogue. 

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#32) On December 08, 2009 at 5:06 PM, jstegma (29.40) wrote:

Alabama is only favored by 5.5 against Texas.  I am tempted to bet the farm on this one.

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#33) On December 08, 2009 at 5:09 PM, jstegma (29.40) wrote:

Sometimes it's a good idea to kick back with a fine cigar and a nice snifter of Scotch and appreciate what you have.

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#34) On December 08, 2009 at 5:12 PM, Option1307 (30.16) wrote:

I am tempted to bet the farm on this one

Ya but Texas is hit or miss this yr. Sometimes thy show up and play decent, other times the are terrible. Tough call. Although, I'll likely palce a smallish bet with Bama just for fun!

Investing lesson brought to you by Jstegma:

As confident and sure as you are, it's never a good idea to place all your eggs in one basket. There are always unseen variables that are out of your control and can greatly effect your investment.

 

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#35) On December 08, 2009 at 5:18 PM, Option1307 (30.16) wrote:

Continuing with our above lesson, you could invest in a diverse manner:

1) $20 on Alabama

2) $10 on Boise State

3) $30 on Oregon

4) $0 on Iowa/Georgia Tech (this is really a BCS game, really?)

   --> You don't have to invest in every market, if something just doesn't sit right with you. Better to save your money and pass on by.

 

All hypothetical of course. See learning to invest is so fun!

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#36) On December 08, 2009 at 5:33 PM, Mary953 (79.05) wrote:

Oh good - a set-up for my favorite saying -

The market can stay insane longer than you can stay solvent!  When in doubt, sit it out!

Thanks Option

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#37) On December 08, 2009 at 5:44 PM, jstegma (29.40) wrote:

I'd leave the Boise St game alone as well.  It's been a long time since they've played anyone, and TCU is pretty good. That said, you do get 6.5 pts with Boise, so if you have to take one side or the other, take Boise and the points.

I'd leave Oregon alone as well.  This team is hit or miss.

Alabama should be reliable to beat Texas by 6 or more.

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#38) On December 08, 2009 at 5:44 PM, jstegma (29.40) wrote:

I don't have a farm and I do have a wife that isn't crazy about sports betting, so betting the farm is not going to happen for several reasons.

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#39) On December 08, 2009 at 5:45 PM, jstegma (29.40) wrote:

Auburn -7.5 over Northwestern

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#40) On December 08, 2009 at 5:46 PM, jstegma (29.40) wrote:

Miami -3 over Wisconsin

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#41) On December 08, 2009 at 5:47 PM, jstegma (29.40) wrote:

Pitt -3 over North Carolina

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#42) On December 08, 2009 at 5:51 PM, jstegma (29.40) wrote:

So those are my 4 bowl picks.  Alabama, Auburn, Miami, Pitt.

I'll contribute a few more dimes later on telling y'all about how they won.

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#43) On December 08, 2009 at 6:15 PM, Option1307 (30.16) wrote:

I like your picks, real solid all around.

Another Investing Lesson brought to you by Jstegma (thanks for setting these up so nicely!):

Always look at the details...

Many people might quickly/foolishly pick Boise State to beat up on TCU (I still am) without giving it much thought. Initially this seems like a solid bet. Good team, proven history of winning big time bowl games recently, they play on a really cool blue field. Seems like a winner all around, no?

However, as Jstegma pointed out It's been a long time since they've played anyone. True and true. In fact, they ahve only play ONE team (Nevada) in the last two months that has a winning record. Seriously. They've only played a total of three teams with winning records. Yes, they did beat the Pac-10 champ, but that was months ago, the first game of the season.

Compare this to TCU that has palyed a total of four teams with winning records, including several big time games recently against BYU and Utah who were both highly ranked at the time. Wow, the edge might go to TCU now.

So as you see, the details shed light on important information that you should look into before investing.

 

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#44) On December 08, 2009 at 6:34 PM, jstegma (29.40) wrote:

My pick for UFC 107 is BJ Penn to beat Diego Sanchez. 

I have no idea what the odds are as I haven't seen them posted, but I assume Penn will be a heavy favorite.  He hasn't lost to anyone at lightweight in ages, and his only losses read like a list of champions and future HOFers.  GSP (twice), Matt Hughes, Lyoto Machida (they actually went the distance), and Jens Pulver (in 2002 via majority decision).  So he's just not in the habit of dropping fights against lesser opponents in recent years.  I think it's a reliable bet.

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#45) On December 08, 2009 at 6:57 PM, XMFSinchiruna (27.08) wrote:

Thanks for keeping the flame burning! I'll still be focusing on the other blog to get to 2,000, but I'll be checking in here as well throughout the week and providing my own $0.02 on whatever you discuss in the process.

Fool on!

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#46) On December 08, 2009 at 7:00 PM, Option1307 (30.16) wrote:

I don't follow UFC that much. like to watch it when I can but I don't know the deails very well.

Investing lesson:

There are many areas/sectors/investments that you will know very little (if anything) about. It's usually in your best interest to research them a little bit just to have a basic understanding.

However, I highly recommend that you stay away (in regards to investing) from things you do not understand. There is a valid reason why people in general are scared of what they do not know, it can kill your investment!

With the thousands of options out there, there is no need to dive into areas you are not comfortable with.

ps. This is great, you set em up, I'll knock em down...

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#47) On December 08, 2009 at 7:24 PM, Option1307 (30.16) wrote:

Always important to know what is coming up. Obviously there are way too many things to worry about, but it's good to be aware of the larger items.

i.e. Job's report, commodities reports, Treasury bill auctions (read sales), etc.

It's debatable whether these anouncements/etc actually effect the market, but you should be aware of when they are coming out nonetheless.

Bloomberg has a decent calender to refer to.

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#48) On December 08, 2009 at 7:29 PM, chk999 (99.97) wrote:

A horse walks into a bar and the bartender says "Why the long face".

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#49) On December 08, 2009 at 7:30 PM, chk999 (99.97) wrote:

A termite walks into a bar and says "Is the bartender here?"

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#50) On December 08, 2009 at 7:52 PM, chlyd (< 20) wrote:

 I am only posting for the .10. I believe education is the most important thing in life. without education, you have nothing. ignorance is not bliss!!!

 I have seen Washington, DC. I have walked all over, the monuments, the museums and walked with the people, and there is good and bad there. so much is run down,but not out.  it is a good charity from the FOOL community, to support this endeavor.

 I encourage all if they can,  to take the time to visit Washintong, DC. you will not regret it.

 from a po' redneck

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#51) On December 08, 2009 at 8:01 PM, XMFSinchiruna (27.08) wrote:

Hey Fools ... how about a little comment dump from the other post to spawn some parallel discussion. Let me know your thoughts on the question posed here and my rambling responses. What are your thoughts on the matter?

#1521) On December 08, 2009 at 7:01 PM, gspaxis (74.92) wrote:

I haven't read through all the comments but from a brief sampling I may have a differing view than many here.  I watched as our country went from a strong net exporter to a GDP that is based on consumer spending and financial manipulation.

I know that wealth is being sucked out of the economy, because I keep getting told that if i want to preserve any wealth, I'd better invest it overseas, which is also where all the American jobs have gone, meaning less disposable income to buy those cheap Chinese imports we have all grown so fond of... 

When the president  talks of investing in American jobs, American education, American ingenuity, American infrastructure, I get very enthusiastic.  And I know there are increased tax revenues when business is booming.  I understand we are all interconnected now in a global way, but that doesn't mean I want America to deteriorate to an also-ran.

So, I congratulate the President on the work he has done so far to repair the mess he was left after 30 years of trickle down economics,  deregulation, union-busting, failure to invest in infrastructure, and tax breaks for the wealthy, took us to the brink of a severe depression.  And I applaud his focus on small business and JOBS now that he has pulled us back from the brink of total financial devastation.

How many people here feel a responsibility to invest in America?

#1523) On December 08, 2009 at 7:29 PM, TMFSinchiruna (98.16) wrote:

gspaxis

I do, but where was that sense of responsibility when Wall Street was bailed out and Main Street saw nothing of the first trillions to flow out the door.

I have said here that I believe the only way forward for this economy is to begin producing goods again. In every past downturn of note it has been an industrial stimulus that brought sustainable growth after contraction. Obviously this time around we have to be many times more green about the process, but I believe that we must emphasize the industrial base.

The first stimulus package was a bust, and that makes me upset. In Dan DiMicco's words (CEO of top U.S. steelmaker Nucor): "The "stimulus" package has not worked. It was a welfare package that did nothing to create jobs." I believe that the unforeseen consequences of rapid response government interventions like cash for clunkers and the home buyer tax credit can wreak more havoc than the problems they are designed to alleviate. Many believe that it was precisely the inforeseen consequences of early interventions that caused the deep double-dip of the first Great Depression.

Economists can haggle all they want about the definition, and politicians can claim we avoided one all they want, but if I'm to be absolutely honest with this community, I still believe that we are standing right in the midst of a depression here ... and that the stimulus-fueled and dollar-depreciation-fueled stock rally simply permits the illusion of recovery. I try to remain hopeful for the economic outlook of the U.S., but I firmly disagree with the strategies that have been employed to date, and unfortunately I think it's clearly too late to change strategies.

Here's the crux: we still have hundreds of trillions of dollars worth of USD-denominated derivatives floating around in financial limbo ... their deleveraging forestalled by trillions in guarantees and backstops ... but for which there exists no functioning market to clear them. They sit like tumors on the balance sheets of our banks, effectively shielded from public scrutiny by fanciful mark-to-model accounting and feats of accounting hocus pocus.

I believe that once a deleveraging event of such massive scope begins to unwind, all the stimulus and government interventions in the world will not reverse the process. I believe that China's announcement that its state-owned enterprises will be permitted to walk away unilaterally from derivatives was the resounding cannonball shot across the bow of this reflation effort... a message that all it has done is buy us some time. Dubai and Greece, meanwhile, suggest that the deleveraging may again be gathering momentum.

If there is one crux, in my opinion, to investors understanding the fundamental economic landscape, it is in comprehending the remaining implications of a several-hundred-trillion-dollar global derivatives market that remains in a state of utter failure even as new contracts are being originated in other (more functional) tranches of the market. The reflation / stimulus / backstop strategy is, in my Foolish opinion, the most dramatic economic hail mary pass ever lofted over a financial gridiron.

 

#1524) On December 08, 2009 at 7:46 PM, TMFSinchiruna (98.16) wrote:

And that, friends, in a nutshell, is why I am protecting my assets from what I perceive as a near-certain continued long-term deterioration in the U.S. dollar. There will be oscillations along the way, but I maintain that the primary pull upon the dollar remains, unfortunately, downward. Gold and silver are dropping hard here, and may be offering Fools One Last Chance to Buy Cheap Gold and Silver. My Foolish readers know that i am targeting $2,000 gold (which I consider a conservative target), and a corresponding silver price of $50 (representing a 40:1 gold/silver ratio versus the present 64:1 ratio). No one can predict where this present pause will bottom out, and I consider any attempts to divine that sort of thing a misguided approach. The USD, as usual, is principally in the driver's seat.

I reminded Fools just the other day about employing disciplined approaches to the extremely volatile and highly unpredictable precious metals market. Gradual movements are best, as the trend is your friend.

Fool on!

#1525) On December 08, 2009 at 7:51 PM, TMFSinchiruna (98.16) wrote:

This is from my blog, posted almost exactly two years ago (December 5, 2007), when gold was beneath $800 per ounce:

"And so, I urge you to take a fresh look at gold and silver, because though it may seem counter-intuitive to purchase more at these historically high levels, the circumstances at play here are purely unprecedented and collectively create a very compelling case for the prices of gold and silver.  I am concerned for my fellow Americans as we head into this Christmas season.  I think we stand on the verge of a horrible economic collapse, and I worry for those who are not prepared... for those who are mired in debt, or perhaps purchasing homes because they think the housing market couldn't possibly get worse from here, or spending more than they can afford for Christmas just as the rug is about to be swept out from beneath them."

 

#1526) On December 08, 2009 at 7:53 PM, TMFSinchiruna (98.16) wrote:

I'd also like to pass along this seasonal wish excerpted from that same 2007 blog post. The wish still apllies:

"And my New Years' wish?:  that we will all remember to be kind to each other when the chips are down.  I think we will all encounter challenges like we've never before faced (as individuals and as a nation), and I sincerely hope that we can all find that deepest well of humanity within us, and work together as brethren and countrymen through the crisis.  May peace and prosperity abound, but failing that, may humanity and liberty endure forever!"

 

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#52) On December 08, 2009 at 8:09 PM, Option1307 (30.16) wrote:

So, I congratulate the President on the work he has done so far to repair the mess..

...And I applaud his focus on small business and JOBS now...

First things first, what exactly has he done/enacted that has helped repair the mess? What has he done to benefit small buisnesses?

I've always been enthusiastic about Obama's speeches. Eventhoguh they are boringly scripted, he always has had good talking points, and generally speaking I agree with many of them. We just differ in how to implement those changes. Like a lot...

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#53) On December 08, 2009 at 8:11 PM, Option1307 (30.16) wrote:

Second, ya so he has good speeches and talks baout issues that many Americans agree with, or at least think we should change. However, thats all there is. Pretty words but no substance.

Again, what has been done to actually help the iddle class and/or small businesses?

 

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#54) On December 08, 2009 at 8:12 PM, XMFSinchiruna (27.08) wrote:

Who can decipher the acronym MOPE from the following chart discussion?

Anyone ever heard of MOPE?

You may find it very useful once you ponder it. :)

 

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#55) On December 08, 2009 at 8:12 PM, XMFSinchiruna (27.08) wrote:

Who can decipher the acronym MOPE from the following chart discussion?

Anyone ever heard of MOPE?

You may find it very useful once you ponder it. :)

 

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#56) On December 08, 2009 at 8:13 PM, XMFSinchiruna (27.08) wrote:

I'll spare part I the added load time of the image.  :P

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#57) On December 08, 2009 at 8:13 PM, Option1307 (30.16) wrote:

How about that new "tough" financial legislation to prevent this from happening again. Umm, have you read it? It's barely a slap on the wrist for the very people that got us into this mess.

 

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#58) On December 08, 2009 at 8:24 PM, XMFSinchiruna (27.08) wrote:

Try this angle on for size: gold is not going up ... paper money is going down:

http://matterhornassetmanagement.com/2009/12/07/gold-is-not-going-up-paper-money-is-going-down/

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#59) On December 08, 2009 at 9:35 PM, Mary953 (79.05) wrote:

MOPE???  As in Management of Perspective Economics AKA spin?  Perhaps as in Paper money - spend all you like, We'll print more??

Sorry.  Don't have a clue.

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#60) On December 08, 2009 at 10:13 PM, Option1307 (30.16) wrote:

That sure is a nice looking chart sinch...

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#61) On December 08, 2009 at 10:38 PM, jddubya (< 20) wrote:

As in gambling, never invest aggressively any money that you cannot afford to lose.

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#62) On December 09, 2009 at 9:19 AM, lemoneater (71.74) wrote:

My following comments will be especially for the students at Thurgood Marshall. I thought that I would share some basic things to know to leave a life of poverty behind you.

1. Don't make the mistake of thinking that you have nothing if you're poor.  Everybody has 24 hours every day. Knowing how to use the time you have is an important lesson. Nobody ever made anything of himself or herself who wasted time.

a. Take the time you have to study hard in school. Learn to read as well as you can. All the other academic subjects are easier once you conquer reading.

Be diligent in solving math problems and do your best. There really is a point to math--technology and many other things are impossible without it. Realize that studying history carefully is an easy way to avoid making stupid mistakes. Studying science can train you to observe your world--people who observe, see opportunities that others miss and have more to enjoy in life.

Get a complete education so that you can learn to think through life situations and make the right value judgments. Successful people know how to think for themselves. But they also know that they don't know everything, and will need to continue learning throughout their entire lives. 

 

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#63) On December 09, 2009 at 9:35 AM, lemoneater (71.74) wrote:

b. Take your time to help others less fortunate than you. Sick people get bored and old people get lonely. Help younger students with their homework. You will be surprised what you learn and how fulfilled you will feel after a while.

c. Improve yourself with hobbies. Play an instrument (if you can), sing, draw, cook special foods, make oragami. Create something--that is the birthright of every human being. 

In summary: Time management is one of the most important skills you will ever learn. Don't kill it--Use it. 

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#64) On December 09, 2009 at 9:41 AM, catoismymotor (< 20) wrote:

#58 - Your chart makes me extra happy that I bought our wedding jewelry in 2001 & 2002 when gold was so low.

 

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#65) On December 09, 2009 at 9:42 AM, catoismymotor (< 20) wrote:

The Force is strong with Lemoneater.

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#66) On December 09, 2009 at 9:45 AM, catoismymotor (< 20) wrote:

The US Airforce says they have a new stealth aircraft. I'll beieve it when I see it. :)

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#67) On December 09, 2009 at 9:55 AM, XMFSinchiruna (27.08) wrote:

Mary gets the gold medal for knowing MOPE ... Management of Perception Economics. That is the economic model employed by our nation at present, as no traditional models like free market capitalism are in play.

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#68) On December 09, 2009 at 10:07 AM, catoismymotor (< 20) wrote:

Two Cow Economics

(Yes, but it needs to be repeated)

 

A CHRISTIAN DEMOCRAT: You have two cows. You keep one and give one to your neighbor.

A SOCIALIST: You have two cows. The government takes one and gives it to your neighbor.

A REPUBLICAN: You have two cows. Your neighbor has none. So what?

A DEMOCRAT: You have two cows. Your neighbor has none. You feel guilty for being successful. You vote people into office who tax your cows, forcing you to sell one to raise money to pay the tax. The people you voted for then take the tax money and buy a cow and give it to your neighbor. You feel righteous.

A COMMUNIST: You have two cows. The government seizes both and provides you with milk.

A FASCIST: You have two cows. The government seizes both and sells you the milk. You join the underground and start a campaign of sabotage.

DEMOCRACY, AMERICAN STYLE: You have two cows. The government taxes you to the point you have to sell both to support a man in a foreign country who has only one cow, which was a gift from your government.

CAPITALISM, AMERICAN STYLE: You have two cows. You sell one, buy a bull, and build a herd of cows.

BUREAUCRACY, AMERICAN STYLE: You have two cows. The government takes them both, shoots one, milks the other, pays you for the milk, then pours the milk down the drain.

AN AMERICAN CORPORATION: You have two cows. You sell one and force the other to produce the milk of four cows. You are surprised when the cow drops dead.

A FRENCH CORPORATION: You have two cows. You go on strike because you want three cows.

A JAPANESE CORPORATION: You have two cows. You redesign them so they are one-tenth the size of an ordinary cow and produce twenty times the milk.

A GERMAN CORPORATION: You have two cows. You reengineer them so they live for 100 years, eat once a month, and milk themselves.

AN ITALIAN CORPORATION: You have two cows but you don't know where they are. You break for lunch.

A RUSSIAN CORPORATION: You have two cows. You count them and learn you have five cows. You count them again and learn you have 42 cows. You count them again and learn you have 12 cows. You stop counting cows and open another bottle of vodka.

A MEXICAN CORPORATION: You think you have two cows, but you don't know what a cow looks like. You take a nap.

A SWISS CORPORATION: You have 5000 cows, none of which belongs to you. You charge for storing them for others.

A BRAZILIAN CORPORATION: You have two cows. You enter into a partnership with an American corporation. Soon you have 1000 cows and the American corporation declares bankruptcy.

AN INDIAN CORPORATION: You have two cows. You worship them.

ENRON CORPORATION:  You have two cows. You sell three of them to your publicly listed company, using letters of credit opened by your brother-in-law at the bank, then execute a debt/equity swap with an associated general offer so you get all four cows back with a tax exemption for five cows. The milk rights of the six cows are transferred via an intermediary to a Cayman Island company secretly owned by the majority shareholders who sell the rights to all seven cows back to your listed company. The annual report says the company owns eight cows, with an option to buy one more.

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#69) On December 09, 2009 at 11:59 AM, lemoneater (71.74) wrote:

Question: There are two people: Sondra makes $40,000 a year; while Jasmine makes $100,000 a year. Which one is richer?

Answer:  Jasmine, of course!

No, that is wrong. I didn't give enough information for you to answer the question correctly.

Sondra has been working for 5 years. Since she paid off her college loan 2 years ago she has been saving a  couple hundred each month and she has no credit card debt. The only debt She has is a mortgage which is $700 a month. The interest is fixed at 6.5%. She drives a good condition used car which is paid that she got at a good price from a relative. 

However, Jasmine has just been working for 1 year. She still has college loans to pay off (She doesn't remember the exact amount because she just pays the minimum fee and doesn't pay attention to the interest). When she started her new job, she bought the car she had always wanted: a brand new navy blue Mercedes. She also ran up $27,000 in credit card debt for this and that. Her rent is $2000 a month. She has no savings because she doesn't need them yet. Her salary is big enough that she doesn't worry about budgeting because her checks won't bounce with how much she is making, right? 

Who is in better financial shape Jasmine or Sondra?

 

  

 

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#70) On December 09, 2009 at 12:45 PM, catoismymotor (< 20) wrote:

 

This is an exercise to amuse myself. It is overly simplified and should not be approached as a serious proposal/dissertation on the subject. Enjoy.

  How I would repair our money:  

I would move us back to the Gold Standard. In addition we will add silver, light sweet crude oil and liquefied natural gas to the national coffers.

 Changes I would make to the money: 

Coins:

 

Made of stainless steel: Dimes and quarters. Pennies and nickels have been eliminated.

 

Made of silver: One ounce and five ounce rounds. They would represent $50 and $250 denominations.

 

Made of gold: Half ounce, ounce, five ounce. They would represent $500, $1000 and $5000 denominations.

 

All coins will be stamped as blanks then laser etched with a serial number and other details to prevent fraud, in lieu of the traditional raised images, letters and numbers. Each coin type will have a distinctive edge so without sight you can easily pull the correct coins from your pocket.

  

Paper Currency:

 

Dollars: $1, $5, $10 and $20 will still be printed. Each bill will be different in size. One dollar bills will be ¾ the current length. The size of each bill will increase a little for each bill up to and ending with twenty. The twenty dollar bill will remain the length of the current issue. Each denomination will have a distinctive notch in one corner. The size and shape of this notch will assist with distinguishing the bills without the use of sight.

 

A new currency device will be implemented called a Ft. Knox Certificate. It will effectively function as a bearer bond. It will be printed in $5,000, $25,000 and $100,000 denominations. It will be roughly the size of a standard size magazine and made of a material much like but tougher than a poker chip or plaque used in European casinos. 

 

 

This is as far as I have gotten. Please feel free to add your input.

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#71) On December 09, 2009 at 12:46 PM, catoismymotor (< 20) wrote:

That top part looks odd. How did that happen?

 

 

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#72) On December 09, 2009 at 12:55 PM, outoffocus (23.43) wrote:

Who is in better financial shape Jasmine or Sondra?

In order to find out who's is richer I would need to see the both of their balance sheet. However based on the information given, Sondra is in much better financial shape merely because she does the best with what she has.  As a result she will rule her money instead of her money ruling her.  The Bible says a fool and their money are soon parted.

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#73) On December 09, 2009 at 1:22 PM, silverminer (30.48) wrote:

cato ... in order for those prices to work, you'd need to uncover about 10 times the known supply of gold.

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#74) On December 09, 2009 at 2:00 PM, catoismymotor (< 20) wrote:

#73 - So it will be a gradual return to the gold standard. Start digging. :)

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#75) On December 09, 2009 at 4:54 PM, lemoneater (71.74) wrote:

Outoffocus, I'm not good at setting up balance sheets or I would have loved that extra touch to creating my scenario. While Jasmine is a made-up character, I have met people like her who unfortunately assume that having a good salary means that you are set for life and no other planning is necessary. I think one of the fastest tracks to poverty is to spend like a millionaire when you aren't. Solomon, the richest man of his time, did have a lot to say about wealth in Proverbs and Ecclesiastes.

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#76) On December 10, 2009 at 6:19 PM, Option1307 (30.16) wrote:

Come on people, were are you at? We need to get to 2000 comments.

Helloooo, let's do this!

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#77) On December 10, 2009 at 6:31 PM, Option1307 (30.16) wrote:

Back to investing wisdom...

I think it's important to learn/acquire a good deal of skepticism as you learn about investing. I mean this in all seriousness.

There are a lot of people out thre trying to "sell their product" and this is something we all need to be aware of. Whether it is an analyst selling a company/stick, a company selling themselves as a sound investment, economic reports, etc. Most people have a bias and thus there view and/or recommendations will reflect this.

This may seem life a basic point, but it is very important to not believe everything you here from some investment "pro" or stock "analyst". And yes those terms were in quotations on purpose.

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#78) On December 10, 2009 at 6:44 PM, Option1307 (30.16) wrote:

With the internet age it's really become easy to find all sorts of information, with literally a click of your fingers. It's a perfect time to become investment savy!

Citron Research is one of my favorite sites. It doesn't have much information; it basically just highlights companeis that they feela re in trouble. You can never be too careful of potentially scary investments.

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#79) On December 10, 2009 at 6:55 PM, Option1307 (30.16) wrote:

I hear this is a pretty sweet website, check it out! It's got everything you would ever need in terms of invseting.

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#80) On December 10, 2009 at 7:00 PM, Option1307 (30.16) wrote:

SEC.org is a key place to go. Check it out and poke around.

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#81) On December 10, 2009 at 7:06 PM, blesto (30.86) wrote:

Been looking APMEX site and saw "Gold Shots" small viles filled with pure gold nuggets. Listed as "Not investment grade"

Why wouldn't that be good for investment purposes?

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#82) On December 10, 2009 at 7:11 PM, Option1307 (30.16) wrote:

Find something your passionate about, in terms of investing, and go with it. If your interested in something, it makes learning about it much better.

This can be a certain sector, type of investment, etc. Find it and start exploring.

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#83) On December 10, 2009 at 7:17 PM, blesto (30.86) wrote:

Cograts to  ihtfp92 for winng "GM's Next CEO" contest.

I really would've liked that job.

And the free subscription.

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#84) On December 10, 2009 at 7:18 PM, Option1307 (30.16) wrote:

Invest in yourself. There honestly is not a better investment in the world than this. Play the game that is school, yes its boring, but it's a necessary part of life. You need to stay focused and keep your eyes on the future.

Delayed gratification is the best ting in the world. Learn it early and live by it.

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#85) On December 10, 2009 at 7:23 PM, blesto (30.86) wrote:

 Option1307 Said;  Find something your passionate about, in terms of investing, and go with it. If your interested in something, it makes learning about it much better.

And more fun. Go with what you know.

Warren does.

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#86) On December 10, 2009 at 7:41 PM, Option1307 (30.16) wrote:

I'm assuming you mean warren buffet.

And ya I would agree with you that he does enjoy his investing. Everything I've ever read about him suggests that he has always been a very passionate man in regards to his business. I think if you looked into most successful people, you'd find that they started out with passion. This eventually blossomed into something else. But I'd be willing to bet that being passionate about something, and runnign with it, palyed a large role in their success.

Investing is the same, you need to find certain aspects that you are intested in and pursue them.

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#87) On December 10, 2009 at 8:03 PM, blesto (30.86) wrote:

 Keep em coming.

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#88) On December 10, 2009 at 8:05 PM, blesto (30.86) wrote:

How many posts are needed in this part II to make the total 2000?

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#89) On December 10, 2009 at 8:16 PM, Option1307 (30.16) wrote:

There are 1756 as of now (8:15pm US-ET) on blog #1. So we need to get this up to around 250ish. Ugh!

We are getting there, just need to recruit some more fools to help out.

Thank for all your work Blesto, much appreciated.

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#90) On December 10, 2009 at 8:20 PM, Option1307 (30.16) wrote:

Have you checked out our very own version of Wikipedia lately? It's called Foolsaurus and it's awesome!

Lot'sof good info there to get the new/expert/ everything b/t investor up and running. The ebst part is that it's similar to Wikipedia and even YOU can add to it. So fool on and do it!

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#91) On December 10, 2009 at 8:29 PM, Option1307 (30.16) wrote:

This actually seemed half way relevant so I'll repost it here:

#3) On December 10, 2009 at 8:12 PM, Option1307 (31.18) wrote:

Where is Alstry when you need him?

On a serious note, I know there are many people that have grown tiresome of him and his endless blogs.But if you actally take the time to check them out, there is a decent amount of information in them. He's not always the easiest to get along with and he does vocalize his extreme opinions rather often. But if you get past that, there i usually some good links in there.

This is a perfect example of being able to dig through the endless mountains of information out there and finding the few true gems. Reading quarterly reports, 10-K's, financial summaries, etc. can become boring. You need to learn to sort the garbage from the important info. It's alway there, just sometimes burried.

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#92) On December 10, 2009 at 9:26 PM, Option1307 (30.16) wrote:

One of the very first investing lessons I ever learned was, Capital Preservation.

This is termendously important, yet it is easily overlooked and thus often forgotten about. The main idea here is that you want to maintain or preserve your starting cpital (read money). Obviously the ultimate goal of any investing, well not always but usually, is to grow your money. Yes, this is a great goal to have; however, it your number one piority should be to maintain what you have.

In the game of investing, it is very hard to make up large losses. (That is not to say that you should be afraid to lose every once in a while, you will, but that is a whole different discussion.) What I mean here is that your ultimate goal should be to "live to fight another day". Don't put yourself deep into a whole, it is really ahrd to claimb your way back out of a deep pit b/c you will need increasingly larger gains to make up for the losses. Here is an ex. to illustrate.

You buy stock A for $100/share:

1) It looses 10% ($90/share) 

--> You need to gain 11.11% to make up the loss

2) It losses 25% ($75/share)

--> You need to gain 33.33% to  kae up the loss

3) It losses 50% ($50/share)

--> You need to gain 200% (200%!) to make up the loss

As you can see, the farther down the hole you fall, the harder it is to get back to the surface, break even point. So ultimately, your goal should be capital preservation and then secondarily it should be to growth that money into some serious bling bling $$$.

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#93) On December 10, 2009 at 9:39 PM, Option1307 (30.16) wrote:

Holy geez, sorry i really should be proof reading these thoughts, my bad all. But I think you will be able to decipher what I was trying to say even with the spelling/grammer/word usage errors. Oops my bad, I swear I'm not retarded.

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#94) On December 10, 2009 at 10:33 PM, Option1307 (30.16) wrote:

You can't win them all:

I also learned this very early on in my investing hobby and it's obviously another simple yet important lesson IMO.

When I first became interested in investing and started to slowly learn about it, we were smack dab in the middle of the giant/retarded Tech bubble of the late 1990's. Oh how I miss those days. You seriously could basically randomly pick any technology company, throw some money down, and sell for a nice profit in a matter of months. Who cares if they had a massively outrageous PE and didn't even actually make anything, the stock was going up! Those were the glory days, as long as you got out at the right time... Many did not unfortunately...

The point is, when I was learning about investing, things were easy and I assumed (falsely) that investing was easy and a sure thing. I ignorantly assumed you could invest smartly and come out ahead the majority of the time. I assumed, sure there would be losses, but not many. Ha, my bad. Good thing I was young and not playing with any significant amount of money (more doing it for a learning purpose than anything else).

Investing is hard, plain and simple. Period. There I said it. That's the truth, it's hard and time consuming. You can be right in every way except one and still come out a looser with your investment. This isn't to scare anybody away, it's just the reality of things. Investing is hard and you can never forget that, or the market will quickly remind you, and never free of charge!

So the goal is to learn to accept your losses and move on. They will happen, likely often at first. You can't be discouraged and give up. You just need to learn to accept them and move on to the next potential investment, no questions asked. Yes, learn from your past mistakes, but understand that you will alwsy have losses. It's just part of the game.

 

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#95) On December 11, 2009 at 2:14 AM, XMFSmashy (99.89) wrote:

Hats off to you for getting this much conversation going, CB

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#96) On December 11, 2009 at 10:36 AM, Option1307 (30.16) wrote:

Here is the latest update of our efforts from TMFstrongbad...

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#97) On December 11, 2009 at 10:43 AM, lemoneater (71.74) wrote:

Good advice Option. There is an astronomical philosophical difference between "Get rich quick" and Capital Preservation. The Ant and the Grasshopper is a good fable to illustrate the principal that the prudent saver is always ahead of the spendthrift.

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#98) On December 11, 2009 at 11:09 AM, Option1307 (30.16) wrote:

Please share with us that fable Lemoneater, I'm sure it'd be a good learning experience.

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#99) On December 11, 2009 at 11:15 AM, Option1307 (30.16) wrote:

I tink the Fool has a termendous amount of resource, especially the players themselves. They can provide you with an endless amount of information, all for free!

There are several players that I look to in order to learn more about investing. Whether I/you agree with their overall outlook onthe economy or even with their personal investing style is irrelevant. The point is to understand their thoughts and add that to your own ideas.

Here are a few players that I think are worthwhile to check out and lern from. This is by no means an extensive list, and I'm not recommending their picks/strategy by any means. Just saying to check them out. Obviously there are many other great players arond the Fool. I will try and highlight some more that I follow when I have time. But here we go for now:

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#100) On December 11, 2009 at 11:18 AM, Option1307 (30.16) wrote:

JakilaTheHun:

Excellent player in terms of picking companies for the long haul, he specializes/focuses on finding tremendous values within beaten down and out of style sectors. Those have been easy to come by as of late with the recent/ongoing economic downturn. Specifically he has focused on smaller regional banks and REIT’s (realty investment trusts). I’ve always enjoy reading his valuations, even if you don’t agree with his conclusions, it’s educational if nothing else and gives you something to think about. There is a decent amount of risk with many of his plays, but overall there are some real gems to be found here IMO. Check out some of his past articles on REIT’s here:

Currently he has been working on a series about regional commercial banks:

Part #1 : Here

Part #2 : Here

Part #3 : Here

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#101) On December 11, 2009 at 11:24 AM, Option1307 (30.16) wrote:

GoldminingXpert:

Another great player, vastly different style in terms of investing though. He focuses on shorting companies that are on the down and out and or so called garbage stocks. Has written several great blogs on why the US economy is in real trouble:

Article #1:

Article #2:

 IMO this is more of a difficult strategy for beginners b/c it would involve shorting, call/puts, and/or buying inverse ETF’s etc. Not for the faint of heart or the new investor. That is not to say that you can’t find useful information here and learn from one of the long time Caps Allstar’s.

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#102) On December 11, 2009 at 11:25 AM, Option1307 (30.16) wrote:

TMFSinchiruna:

This is the resident Gold expert, although I doubt he’d ever admit that. Has documented Gold/precious metals accent the last few years via Caps blogs and TMF articles. If you have questions regarding precious metals, Sinch is the man to talk to, or at the very least a starting place. He predicts silver will reach $50/ounce and gold will hit at least $2000/ounce before we are all said and done. For starters check this out:

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#103) On December 11, 2009 at 11:28 AM, Option1307 (30.16) wrote:

Floridabuilder2:

Writes arguably the funniest blogs in all of the Fool. And to top it off, they are usually informative, you just have to get past all of the random sidetracks he likes to take. Oh, and he basically knows everything under the sun (literally) about Florida real estate (RE). Has lots of good information about housing and RE in general. A must read for anyone interested in RE in general. Doesn’t provide much information in terms of stock picks nowadays, but still is a good resource to use. His blogs always receive huge numbers of rec’s too. Check out his recent 4 part series:

#1: Here

#2: Here

#3: Here

#4: Here

 

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#104) On December 11, 2009 at 11:28 AM, Option1307 (30.16) wrote:

BravoBevo:

Probably the best player at playing garbage/microcap stocks on both sides of the isle. He is not afraid to short them or go long on these extremely risky companies. Rarely provides any insight on his picks but nonetheless is another great resource. You can find some real gems within his picks. However, make sure to do your own due diligence because these tiny stocks can swing wildly either direction. Also, many are hard to find shares of in real life b/c they ar typically traded on smaller indices.

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#105) On December 11, 2009 at 11:31 AM, Option1307 (30.16) wrote:

Anybody else out there care to highlight/summarize their favorite players or people they look to for ideas? TMF ahs so many good resources, beginning investors should definitely look to them for educational purposes.

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#106) On December 11, 2009 at 11:52 AM, lemoneater (71.74) wrote:

@ 98 Here is a link to a classic version of the ant and the grasshopper. http://www.bartleby.com/17/1/36.html Aesop was a wise Greek slave who lived circa (around) 6th century BC. There are many versions of his fables.

His fables are full of wise principles to live by. Be an ant, not a grasshopper!

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#107) On December 11, 2009 at 12:00 PM, Option1307 (30.16) wrote:

Thanks lemon for the link!

That is a great story and has always been a favorite of mine over the yrs. I really think it applies to investing rather well too. If you have any others feel free to share them as well.

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#108) On December 11, 2009 at 2:12 PM, lemoneater (71.74) wrote:

Another classic story about the value of hard work and planning ahead is http://www.amazon.com/Little-Red-Hen-Big-Book/dp/0618836845/ref=sr_1_1?ie=UTF8&s=books&qid=1260558253&sr=1-1. You have to be careful which Little Red Hen picture book you get because some have been modified to the point that the moral of the story where hard work is rewarded has been lost. 

 

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#109) On December 11, 2009 at 2:48 PM, Option1307 (30.16) wrote:

Ya that is a valid point you make. It's interesting reading the "updated" versions of some stories that I used to read as a kid. Some of them are drastically different nowadays. For better or worse.

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#110) On December 11, 2009 at 6:15 PM, SnapDave (64.54) wrote:

Financial related topics, eh?…

Ok, Melissa Lee or Betty Liu? Report this comment
#111) On December 11, 2009 at 6:17 PM, SnapDave (64.54) wrote:

Betty Liu hands down for me.  It’s better though when the camera isn’t on her very long ‘cause I end up staring at her gorgeous face and miss what they are talking about.  Besides CNBC is total crap – they have a max time frame of about 5 days. 

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#112) On December 11, 2009 at 6:31 PM, SnapDave (64.54) wrote:

About jobs:  Try to do what you love, to a point.  It’s probably not a good idea to follow this common advice too strictly.  You may eventually find you enjoy things you weren’t initially interested in.  Pay does matter. 

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#113) On December 11, 2009 at 6:33 PM, SnapDave (64.54) wrote:

Many people want to be artists.  Only a very few who are both lucky and brilliant will be anything but poor.  So, look at some options.  Work life can and will take some unexpected directions. 

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#114) On December 11, 2009 at 6:35 PM, SnapDave (64.54) wrote:

My current job initially felt like a bit of a disappointment.  It’s at times frustrating and stupid.  But, it also has many rewarding and very enjoyable moments.  I’ve been places and done things few people do. 

 2K, Fools!!!! Report this comment
#115) On December 11, 2009 at 6:57 PM, Option1307 (30.16) wrote:

Good advice Dave, thanks for the input!

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#116) On December 11, 2009 at 8:41 PM, isusan (< 20) wrote:

Congratulations everyone! We hit 2000 total, then 2000 on the 1st blog!

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#117) On December 12, 2009 at 12:57 AM, chk999 (99.97) wrote:

Donner Kebab tastes good.

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#118) On December 12, 2009 at 12:58 AM, chk999 (99.97) wrote:

Lister likes Shemi Kebab.

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#119) On December 12, 2009 at 12:58 AM, chk999 (99.97) wrote:

I am hungry.

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#120) On December 12, 2009 at 12:58 AM, chk999 (99.97) wrote:

That is all.

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#121) On December 12, 2009 at 9:56 AM, XMFSinchiruna (27.08) wrote:

An incredible achievement, Fools! Thank you all so much for being a part of it. Thank your turning here when our computers slowed down with the page loads (it did get pretty tough towards the end). Thank for your important role in raising a grand total of $2,525 for Thurgood Marshall Academy. Thank you for inspiring your fellow Fools. Thank you!

Chris

TMFSinchiruna

 

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#122) On December 13, 2009 at 12:02 AM, Duwango (< 20) wrote:

What a great thing to be part of, a fund raiser with over 2000 posts.

I'm in awe of Catoismymotor, Blesto, Mary(with numbers), and many

more. 

To repeat a previous suggestion of mine (Duwango)...it is Chanukkah.

We've got 8 nights, wowee, how about an $8 pledge?  I'll be donating

my $20 pledge this week. Light a candle and bring a well deserving

child out of darkness too.

 1 2 3 4 5 6 7 8

 

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#123) On December 13, 2009 at 4:13 PM, Teacherman1 (28.03) wrote:

Wanted to provide this information for the students at Thurgood Marshall Academny. I think they may find it of interest, and I know they would find it of benefit.

Since it is fairly long, I am posting a link to my blog about IRA's.

I hope it works.

Option1307 had to show me how to do it.

Hope you all have a nice weekend.

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#124) On December 17, 2009 at 1:55 AM, Duwango (< 20) wrote:

Where did everyone go???

I think the Holiday needs and end-of-year planning

has led to a big drop off here.

I made my donation naming TMF Sinchiruna's challenge.

Happy Chanukkah, Fun Kwanza, Merry Christmas,

Feliz Navidad, Latkas and Tamales,

Leslie

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#125) On December 18, 2009 at 9:37 AM, catoismymotor (< 20) wrote:

Bat eating banana.

 

Happy Festivus to the rest of us!

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