TMFHousel's Blog

New Book!

TMFHousel — Thu, 23 Feb 2012 19:03:21 GMT

Pardon the shameless self-promotion, but if you have a second a $2.99 to spare, consider my latest e-book for your Kindle or iPad, would you?

Many thanks,

http://www.amazon.com/Years-Making-Rece...

Famous Last Words

TMFHousel — Thu, 26 Jan 2012 12:33:51 GMT

JPMorgan CEO Jamie Dimon had some reasuring words this morning. "The direct impact of a Greek default [on US banks] is almost zero," he said.

Hmm. Where have I heard similar language?

Oh, yes. Alan Greenspan before the last financial crisis: "I believe that the general growth in la...

Help a Fool With Questions

TMFHousel — Fri, 02 Dec 2011 13:49:50 GMT

Howdy Fools,
I'm about to embark on a 4-day interview blitz for a Motley Fool project. Next week, I'll be sitting down to interview:
Jeremy Siegel of Wharton (author of Stocks for the Long Run)
Robert Shiller of Yale (of Case-Shiller housing index fame)
Glen Hubbard (George W. Bush's economicc a...

Obama on Bank of America

TMFHousel — Tue, 04 Oct 2011 13:56:58 GMT

Here's President Obama on Bank of America's new $5 account fee:
"You don't have some inherent right just to – you know, get a certain amount of profit."
Let's take a look at those profits:
Net income, 2008: $4 billion
Net income, 2009: ($2.2 billion)
Net inco...

Everything you Need to Know About Accounting

TMFHousel — Wed, 24 Aug 2011 09:55:38 GMT

From the Financial Times:
"Earnings before interest, tax, depreciation and amortisation on a like-for-like basis before allowance for exceptional restructuring costs” is the answer to the question “what is the highest profit number we can present without attracting flat disbelief?”.
10-yr Treasuries now trade at 50 times earnings. Apple trades at 11 times earnings.
Who want to bet on which will perform better over the next ten years?

The Joy of Overpaying the Tax Man

TMFHousel — Tue, 16 Aug 2011 17:46:58 GMT

Earlier this year, I found a pleasant surprise: I overpaid my 2007 taxes by several thousand dollars. I was still in the three-year window to file an amended return, did so, and received a refund within weeks.

Another surprise: The IRS paid interest on the overpaid funds during the entire four years. The interest rate works out to around 4% a year -- far higher than what I could have received in a money mark...

US Treasury Now Has Less Cash Than Apple

TMFHousel — Thu, 28 Jul 2011 18:41:59 GMT

"Washington now has a total operating balance of only US$73.768-billion.
Meanwhile, Apple currently boasts a cash reserve of US$75.876-billion, as of its most recent quarterly earnings report at the end of June."

The Deficit, Summarized

TMFHousel — Wed, 22 Jun 2011 10:57:57 GMT

David Leonhardt:
"Eventually, the country will have to confront the deficit we have, rather than the deficit we imagin...

More Adventures in Health Care

TMFHousel — Tue, 21 Jun 2011 11:55:43 GMT

This Guy Robbed A Bank Just To Get Healthcare In Jail

With a undiagnosed growth on his chest and two ruptured disks, Richard James Verone needed medical attention and to get it he handed a note to a bank teller demanding $1.
Verone walked into an RBC bank in North Carolina, handed the teller the note...

Why Our Health-Care System Doesn't Work

TMFHousel — Mon, 20 Jun 2011 21:20:19 GMT

True story.
I have high-deductable health insurance, so most of what I get I pay for out of pocket. I'm OK with this, and actually think the system would work better if more people were in the same situation.
Here's why.
Since I'm paying out of pocket, I naturally ask "How much does this cost?" before every procedure. Aft...

Reagan Vs. Obama

TMFHousel — Wed, 15 Jun 2011 00:37:46 GMT

The theme has been blaring for years, but nowhere was it louder than last night's Republican presidential debate: If only Obama would mimic the economic policies of Ronald Reagan, the economy would be booming -- just like it was under Reagan.

I decided to pull up some numbers to put this topic into context. Obama is 2.5 years into office. Compare that to a few economic numbers 2.5 years after Reagan entered...

I cracked.

TMFHousel — Mon, 18 Apr 2011 20:28:56 GMT

I'm on Twitter now. Be a pal and follow me, @TMFHousel, so I have a reason to post stuff.

Why the Deficit Explodes

TMFHousel — Tue, 05 Apr 2011 20:17:40 GMT

David Leonhardt of the NYT has a great example:
"Two married 66-year-olds with roughly average earnings over their lives will end up paying about $110,000 in dedicated Medicare taxes through the payroll tax, including the portion their employers pay. They can expect to receive about $340,000 in benefits. Two average-earning 56-year-olds will pay about $140,000 and ...

Krugman: Ryan the Ridiculous

TMFHousel — Tue, 05 Apr 2011 18:55:55 GMT

For those interested in Paul Ryan's new budget proposal:
http://krugman.blogs.nytimes.com/2011/04/05/ryan-the-ridiculous/

Jon Stewart on Budget Hypocrisy

TMFHousel — Wed, 23 Mar 2011 09:32:57 GMT

"You can't fire teachers and tomahawk missles at the same time."
Granted, there's a big federal vs. state issue, but it's a decent point.

We've hit a new low ...

TMFHousel — Thu, 02 Dec 2010 18:57:39 GMT

.... when Nigeria is calling out our scams.
LAGOS — Nigeria's anti-corruption police said on Thursday they planned to file charges against former Vice President Dick Cheney in a $180 million bribery case involving a former unit of oil services firm Halliburton.
From this morning's Wall St. Journal:
"Linda Frakes struggled to rent a home and buy a car after bankruptcy. A used-car dealer ultimately gave her financing on a Jaguar."
Alright, I can't resist a comment. Only in America can you be bankrupt, near-homeless, and think you're ...

Great Article on America's Place in the Global Economy

TMFHousel — Wed, 24 Nov 2010 12:29:24 GMT

http://money.cnn.com/2010/11/23/news/international/united_states_competitiveness_world.fortune/index.htm
My favorite line:
"The National Academies breathlessly reports that China is now No. 2 in the world in ...

Inflation and the Tea Party

TMFHousel — Tue, 23 Nov 2010 13:52:03 GMT

Pretty good piece from Curious Capitalist:
http://curiouscapitalist.blogs.time.com/2010/11/10/will-sarah-palin-and-the-tea-party-cause-hyper-inflation/