Monthly Archives: December 2014

On Financial Risk Statements, Part 1

    Photo Credit: Chris Piascik Most formal statements on financial risk are useless to their users. Why? They are written in a language that average people and many regulators don’t speak. They often don’t define what they are trying to avoid in any significant way. They don’t give the time horizon(s) associated with their…

Americans Ramp Up Credit Card Debt To Cover A Rising Cost Of Livi

In spite of the government’s ongoing narrative of a US economic recovery, major news outlets continue to remind us that life isn’t getting easier for most Americans. The Wall Street Journal recently published a lengthy expose on the rising cost of basic necessities. This chart shows how much more middle-class American households are spending thanks…

Investment: Two Approaches

The topic of this post might be “procrastination.” I have written a bit about aggregate consumption in the USA and I keep telling myself to write something similar about investment. I never do. I am using this post as a pre-commitment device (sorry to use the blog for my personal problems). OK on investment there…

EC It’s

Problems for Option Buyers Ask anyone who has ever bought stock options, and you’ll likely hear at least one tale of regret. That’s because it’s possible to suffer a loss on stock options, not just when picking the wrong stock, but even when one is correct about the direction of the stock price. It’s bad…

Something Is Rotten

Podcast: Play in new window | Play in new window (Duration: 13:16 — 6.1MB) DOW – 315 = 17,280 SPX – 33 = 2002 NAS – 54 = 4653 10 YR YLD – .08 = 2.10% OIL – 2.52 = 57.43 GOLD – 5.60 = 1222.80 SILV – .06 = 17.14 The fall in oil prices has been dramatic,…