by Joe
on November 21, 2010
Another Great week of reading to share. Let’s start with Miranda Marquit’s article at Good Financial Cents, The Dangers of Using Credit Cards as an Emergency Fund. Miranda explains why you need a ‘real’ emergency fund to keep from getting caught in a debt spiral.
At Monervator, I learned a bit more about ETFs Vs index funds: The ultimate battle of the trackers. Some subtle differences really worth understanding.
Money Energy helps us understand The Difference Between Deflation and Disinflation. The economy is in some strange times right now, this article would help you understand some of the Fed-speak you may be hearing.
At Steadfast Finances, we’re invited to view an interview: Jon Stewart: the Financial Crisis Occurred Because of an Idiot Shortage. This is a video of Jon Stewart interviewing Bethany McLean & Joe Nocera authors of the book “All the Devils are Here: The Hidden History of the Financial Crisis”. A great interview. Now I want to read this book, glad to have this brought to my attention.
My friend Kevin at Out of Your Rut asked, Is the American Dream Dead now that Housing is in the Tank? Kevin puts these times in perspective and helps us clarify what was meant during the depression when people used the term “American Dream.”
Stew at Gather Little by Little asks Do you always give your kids what they want? Tough to say no to our kids, especially when then see there are things we can afford. But as Stew says,”too much of a good thing can be bad.” Interesting article to reflect on as we head into Thanksgiving week.
Joe
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by Joe
on November 20, 2010
The Honorable Charlie Rangel didn’t know that rental income is taxable? Or do our Congressfolk think the laws they pass just apply to everyone else? The IRS should audit them all. Every year.
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by Joe
on November 19, 2010
This was the question I took a stab at on the American Express Currency Blog.
My friend Kevin at Out of Your Rut put up a nice intro to this guest post:
How much life insurance do you need? Have about eight to 10 times your gross income as a life-insurance death benefit. Your number will be unique to you. Are both parents working? How many children do you have? How big is your mortgage?
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by Joe
on November 17, 2010
If you are a fan of This American Life, you may be familiar with the episodes I’ll mention today. If not, you might be pleasantly surprised at how the writers of these shows managed to take a pretty difficult concept to grasp and made it understandable. If you really enjoy it, why not buy the set of four on CD or make a donation to your PRI station?
The guide to the meltdown is present over four broadcasts that spanned just over a year’s time. The first episode titled The Giant Pool of Money offered an amazing overview of the housing collapse and specifically how the liquidity of the global financial markets helped to create loans that by all accounts never should have been written.
The next installment Another Frightening Show About the Economy discussed credit default swaps, with a focus on how and why these derivatives managed to go unregulated. This episode aired 10/3/08 just after the government’s $700 billion bailout was announced.
Bad Bank takes a step back, first explaining what a bank is and what it does. They actually make assets, liabilities, and balance sheets understandable.
Last, The Watchmen reviews the job the regulators were supposed to do to prevent all of this from happening. How did they get it so wrong? More important, who exactly were the regulators who were supposed to audit these failed institutions?
Each show can be listened to online, or if you prefer, you can download a transcript and read it at your convenience. I promise, after listening to these shows you will understand the crisis we are still recovering from better than most people. Let me know if you enjoyed them.
Joe
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by Joe
on November 14, 2010
Horizontal, as in I’m having some lower back issues and have been lying flat most of this past week. But still reading my fellow PF bloggers and ready to put up the best of that reading.
Tom at Canadian Finance Blog answers the question “What is a Stock?” A simple question, but a great start for those who don’t quite get it yet. Interesting article with a nice graphic from mint.com. Tom – I look forward to part two “What is a bond?” It’s on your to-do list, right?
Kelly at The Centsible Life writes more about family finances, less about hard core investing matters, her site is always a pleasant break from the debate over the Bush tax cuts, Roth conversions, etc. This week Kelly wrote Fashion Friday: Winter Coats, in which she talks about the deals she was able to find on coats for the kids this winter. Her frequent posts on deals she’s found are a real money saver if you have a family.
Next, my friend Jeff at Deliver Away Debt suggests 5 Easy Ways to Waste Money at the Market. A great “what not to do” list, I’d add one more suggestion – Let the parent who has no concept of unit pricing take the 12 yr old she can’t say ‘no’ to do the shopping. Maybe there’s a contest some days “how much can you spend without even having the making of one meal in those grocery bags?” My Jane would win that one, every time.
MD at Green Panda Tree House started a series on your first home purchase. The first installment Are You Ready To Purchase a Home discusses the things you need to consider even before you start looking for your first house. As with many financial matters, things you should start to learn in school but don’t. Hey, that what PF bloggers are for, right?
Last this week, Neal Frankle helps you decide between a 401k or Roth IRA? A Simple Approach. With all the RothMania of late, Neal offers a level-headed approach to this decision, a great read.
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