Golden Fibonacci

by Daren Fonda

1. “You may think I’m rich, but I don’t.”

A million dollars may sound like a fortune to most people, and folks with that much cash can’t complain — they’re richer than 90 percent of U.S. households and earn $366,000 a year, on average, putting them in the top 1 percent of taxpayers. But the club isn’t so exclusive anymore. Some 10 million households have a net worth above $1 million, excluding home equity, almost double the number in 2002. Moreover, a recent survey by Fidelity found just 8 percent of millionaires think they’re “very” or “extremely” wealthy, while 19 percent don’t feel rich at all. “They’re worried about health care, retirement and how they’ll sustain their lifestyle,” says Gail Graham, a wealth-management executive at Fidelity.

Indeed, many millionaires still don’t have enough for exclusive luxuries, like membership at an elite golf club, which can top $300,000 a year. While $1 million was a tidy sum three decades ago, you’d need $3.6 million for the same purchasing power today. And half of all millionaires have a net worth of $2.5 million or less, according to research firm TNS. So what does it take to feel truly rich? The magic number is $23 million, according to Fidelity. Ream more »

by Stephanie Loiacono

Warren Buffett is arguably the world’s greatest stock investor. He’s also a bit of a philosopher. He pares down his investment ideas into simple, memorable sound bites. Do you know what his homespun sayings really mean? Does his philosophy hold up in today’s difficult environment? Find out below.

“Rule No. 1: Never Lose Money. Rule No. 2: Never Forget Rule No. 1.”

Buffett personally lost about $23 billion in the financial crisis of 2008, and his company, Berkshire Hathaway, lost its revered AAA ratings. So how can he tell us to never lose money?

He’s referring to the mindset of a sensible investor. Don’t be frivolous. Don’t gamble. Don’t go into an investment with a cavalier attitude that it’s OK to lose. Be informed. Do your homework. Buffett invests only in companies he thoroughly researches and understands. He doesn’t go into an investment prepared to lose, and neither should you. Ream more »

by Paul B. Farrell
Tuesday, February 23, 2010

Commentary: Munger warns 2012 is our tipping point on ‘road to ruin’

Good news, Americans are “downbeat about today. Upbeat about tomorrow,” says the latest USA Today/Gallup Poll. “Americans feel battered by hard times, record home foreclosures, stubbornly high unemployment rates and war.”

And yes, we are “fed up with Washington and convinced more than 3 to 1 that the nation is heading in the wrong direction,” yet there’s “confidence that there will be better times ahead, that the classic American dream endures and hasn’t been extinguished. It’s not even at its low ebb.” Why? Because we’re in denial! Ream more »

Once upon a time there was the United States, with other Western countries, fighting a Cold War against the communists. Back then the Soviet Union was the most important adversary and trillions of dollars were used to finance an arms race. For decades the entire world lived under the threat of a nuclear apocalypse.

The reason the US and its allies fought the Cold War was to prevent the further spread of communism and to defend freedom. Two decades ago communism fell in East-Europe, soon followed by the collapse of the Soviet Union. The Cold War ended, but communism didn’t die. The US lost its appetite fighting communism, and slowly but surely the policies of the US changed. Now we know the policy of the Obama administration: there are good communists and bad communists…

Let’s start with the bad communists. According to the Obama administration you’ll find these mostly in North-Korea. The bad communists in this country have announced the launch of a satellite into orbit, but the US believes it’s actually a test of a long-range missile and it could reach Alaska, theoretically. Hillary Clinton, the US Secretary of State, has warned the bad communists she will take action if they continue with the launch. Ream more »

Yang Ringan Untuk WEEKEND

Alkisah, seorang petani menemukan sebuah mata air ajaib.
Mata air itu bisa mengeluarkan kepingan uang emas yang
tak terhingga banyaknya. Mata air itu bisa membuat si
petani menjadi kaya raya seberapapun yang diinginkannya, sebab kucuran uang
emas itu baru akan berhenti bila si petani mengucapkan kata “cukup”.

Seketika si petani terperangah melihat kepingan uang emas
berjatuhan di depan hidungnya. Diambilnya beberapa ember
untuk menampung uang kaget itu. Setelah semuanya penuh,
dibawanya ke gubug mungilnya untuk disimpan disana.
Kucuran uang terus mengalir sementara si petani mengisi
semua karungnya, seluruh tempayannya, bahkan mengisi penuh rumahnya. Masih
kurang! Dia menggali sebuah lubang besar untuk menimbun emasnya. Belum
cukup, dia membiarkan mata air itu terus mengalir hingga akhirnya petani
itu mati tertimbun bersama ketamakannya karena dia tak pernah
bisa berkata cukup. Ream more »

On October 9 last year this blog brought you a story about failing banks. It read: “While governments and financial authorities try to convince the public they should trust the banks to prevent a bank run, the banks themselves don’t trust each other at all, that’s why the financial system freezes up globally. If other banks don’t trust my bank, is it a good idea to believe the government I can trust my bank?”

Only a few days ago it was revealed that the banks in the UK were just hours away from a complete meltdown. City Minister Paul Myners disclosed that last year on October 10, the country was “very close” to a complete banking collapse. Major depositors attempted to withdraw their money at the same time, the Treasury was considering to shut the doors of the banks to all customers, terminate electronic transfers and even block ATM cash withdrawals to prevent a bank run. Imagine the panic that would have caused! Frantic behind-the-scenes efforts averted the meltdown, the Bank of England contacted major creditors around the world begging them not to withdraw their funds. Ream more »

by: Richard Gandon

People are losing their homes and many more will lose their jobs before the mortgage meltdown works its way through the system.

To paraphrase Alan Greenspan’s remarks on March 17th, 2008, “The current financial crisis in the US is likely to be judged in retrospect as the most wrenching since the end of the Second World War. The crisis will leave many casualties.”

How many casualties? Experts are predicting that in the next few years, between 15 and 20 million homeowners could have homes worth less than what they owe. Walking away from a bad situation may actually make sense for people who mortgages that are ‘upside down’ considering the fact that refinancing is out of the question and home equity is nonexistent. Ream more »