Posts Tagged ‘rec’d article’

Welcome back Franco fan! Please share your thoughts and leave some comments!

I came across two articles that were both enlightening, one of which was rather entertaining if you don’t mind a good dose of crude humor and sarcasm (I’ll let you determine which is the entertainingly sarcastic/crude piece based on the published magazine listed below). Both pieces are full blown articles that take some time to read but are well worth the investment. Here is a snippet from each to see if the writing style suits your fancy with a link to the full blown article:

The Quiet Coup - The Atlantic

The second scenario begins more bleakly, and might end that way too. But it does provide at least some hope that we’ll be shaken out of our torpor. It goes like this: the global economy continues to deteriorate, the banking system in east-central Europe collapses, and—because eastern Europe’s banks are mostly owned by western European banks—justifiable fears of government insolvency spread throughout the Continent. Creditors take further hits and confidence falls further. The Asian economies that export manufactured goods are devastated, and the commodity producers in Latin America and Africa are not much better off. A dramatic worsening of the global environment forces the U.S. economy, already staggering, down onto both knees. The baseline growth rates used in the administration’s current budget are increasingly seen as unrealistic, and the rosy “stress scenario” that the U.S. Treasury is currently using to evaluate banks’ balance sheets becomes a source of great embarrassment.
 

The Big Takeover - Rolling Stone

There are plenty of people who have noticed, in recent years, that when they lost their homes to foreclosure or were forced into bankruptcy because of crippling credit-card debt, no one in the government was there to rescue them. But when Goldman Sachs (a company whose average employee still made more than $350,000 last year, even in the midst of a depression) was suddenly faced with the possibility of losing money on the unregulated insurance deals it bought for its insane housing bets, the government was there in an instant to patch the hole. That’s the essence of the bailout: rich bankers bailing out rich bankers, using the taxpayers’ credit card.

Ciao,
Franco

I realize that taxes are a “necessary evil” that are needed to keep the fabric of society in tact, but then again, absolute power (or put another way…extorbitantly high taxes) in the hands of the government is sure to corrupt absolutely. For those that share my point of view, you might find this story to be particuarily amusing.

Wishing everyone a merry Christmas!
Franco

One of my favorite author/portfolio manager, Vitaliy Katsenelson, just wrote an article called Investing Books for the Stockings. In it he gives a list of his favorite investment books, a brief description of each book, and a case for why you should read it. Some of the books I’ve already read (and recommend on the Favorites tab) while others I have yet to read. I know I’ll be adding a couple of his suggestions to my reading list.

Enjoy!
Franco

The Wall Street Journal published an article today detailing once famed stock picker and mutual fund manager Bill Miller’s recent demise. It is a well written story of how the highly praised mutual fund manager ended his 15 year out performance streak over the S&P 500 index in dramatic fashion. 

Mr. Miller has profited from investor panics before. But this time, he said, he failed to consider that the crisis would be so severe, and the fundamental problems so deep, that a whole group of once-stalwart companies would collapse. “I was naive,” he said.

A must read for anyone considering active investing (stock picking vs. passive index investing).

Enjoy,
Franco

In response to continued requests about recommended readings and websites, I’ve created a dedicated page for Franco’s Favorites. Check it out.

Franco

Anyone who has read Liar’s Poker (and even those who have yet to read it) will enjoy this recently penned article by Michael Lewis. In it, he explores the mortgage market meltdown through the eyes of a bearish hedge fund manager and revisits the synthesis he drew from his brief stint with Solomon Brothers in the mid 80’s. I recommend both the article and his book for a “colorful” look at some of the inner workings of the US financial markets.

Enjoy!
Franco

Warren Buffett recently penned an article explaining why he is investing in US companies during this hair raising credit crisis. Please take a couple minutes to read it and gain some perspective on the current market conditions in light of previous stock market downturns and the overarching goal to remain focused on long-term investment returns. 

Franco

Forbes recently posted an article entitled 13 things you can get for free. If you can navigate around all the flashing ads embedded in the article on msn, I highly recommend everyone take a read. Some of my favorites included free (legal) TV show viewing, last minute cruises, and legal advice, but the most interesting by far had to be the “cyber grandparent.” Just check it out! 

Franco