Personal Finances

Independence Is Just a City in Missouri

In fall 1910 six men set forth from New Jersey, bound for Georgia on what turned out to be arguably the most bountiful “hunting trip” in the history of mankind.

The Visible Hand

By and large, any signs of recovery aren't the invisible hand of market forces self-correcting; that’s Uncle Sam wielding a really big stick

Getting Off on a Technicality

Yesterday’s euphoria over a better-than-expected GDP reading gave way to reality after today’s release of sobering consumer spending data.

Get with the Program

Global trading volume makes milliseconds worth something, and connected firms spend millions developing sophisticated computer programs that buy and sell stock at incredible rates.

Regulators, Mount Up

Now that the Federal Reserve and Treasury Dept’s efforts to stabilize the financial system and economy have banished fears of an imminent collapse, the Obama administration is shifting its focus to regulatory reform.

You Can't Spend What You Don't Have

Can the economy recover without a jump in consumer spending?

What's in a Downgrade?

There will be consequences if the US or UK suffers a downgrade, albeit not the ones you think. And some could be positive, if you play your cards right.

Green Shoots

The revised first quarter GDP report continues to shore up the notion that the economy may be turning a corner, with the preliminary GDP estimates showing a decline of 5.7 percent versus an previous estimate of a 6.1 percent decline.

Under Pressure

Taxpayers will eventually rebel against the idea that their money is being spent without getting anything in return. For now, fixing the problems seems to be the sole responsibility of the average taxpayer, while financiers and politicians are bickering about bonuses from money that belongs to neither of the two factions. Playwright Eugene Ionesco would be proud.

Leading the Way

Former Federal Reserve Chairman Alan Greenspan was famously fond of obscure economic statistics and data points. But economic models and analysis that rely on the consistent application of fewer indicators can often yield better and clearer forecasts.

Financial Stability Resides in the Details

Given the complexity of the problems afflicting the financial sector, a quick fix was never in the offing. We look at the Treasury Dept’s revamped plan to nurse the system back to health.

From Bubble to Bottom

Government bailout money aside, a stabilized housing market is essential to any turnaround in the financial sector and broader economy. We examine the prospects for such a recovery.

Pressurizing Cash

Since their creation in 1970, investors have depended on money market funds (MMF) to stash their cash with essentially no risk. Constrained by regulation to purchasing investment-grade short-term debt such as commercial paper (CP), there’s little room for creative portfolio construction. In essence, all money market managers had to do was make sure the net asset value of their funds remained at $1 per share.

Profit from Misery

Despite news of Washington’s plans for a large scale bailout of the US financial system, stocks have continued to trend down as consumers’ wallets are becoming lighter and property values continue to fall. There’s also skepticism that the same regulators and academics who led us down the path to total meltdown have what it takes to remedy the problem.

Closing the GAAP

A few weeks ago the Securities and Exchange Commission (SEC) unveiled a roadmap for transitioning away from the parochial system of Generally Accepted Accounting Principles (GAAP) in favor of the International Financial Reporting Standards (IFRS), a system instituted by almost 100 countries worldwide.

Information to Bank On

The financial sector is in disarray after reporting over $500 billion in mortgage-related writedowns, but regulators insist that, overall, the US banking system remains on sound footing--albeit in a decidedly weakened state. Eight banks have failed thus far in 2008, and the Federal Deposit Insurance Corp (FDIC) appears to be gearing up for additional failures.

Bookkeepers Beware

The responsibility for financial regulation is largely seen as lying at the feet of government agencies and central banks, but there's one organization that largely moves behind the scenes.

Identity Crisis

Identity protection providers are making a lot of noise, but are these services just a racket? Here are the best bets for safeguarding your name and credit.

Get Away for the Summer

Rising gas prices are sidelining more than just the average consumer; they’re affecting the travel industry as a whole. But there are still ways to make the system work for you this season.

Cashing in on National Health Insurance

General elections bring a lot of uncertainty and opportunity for investors. But if we can get a handle on potential changes, we can better arm our portfolios for the post-November world.