The Freedom Factory

In a sluggish economy, bartering is becoming an increasingly popular alternative to cash for businesses and individuals. Indeed, the practice of our pre-currency forefathers is coming back with such a vengeance that there are several websites dedicated to facilitating the practice. [Just like the kind great-great-great grandma used]. Continue Reading

The shackles of serfdom are being silently fastened to America. Every dollar Congress spends beyond its budget, every Federal Reserve Note printed, every tax, regulation, and government intrusion into our lives renders us less free. Ever wonder why it feels like it’s increasingly difficult to make ends meet? Remember the days when one spouse could work, the other raise the kids, and still save for a comfortable retirement? Those days are gone, but why? What’s next? The 5 Steps to Freedom: How To Cut Your Dependence On Institutions And Escape Financial Slavery, by Jeff Nabers explains what happened to our once prosperous society and how we can all take definite steps to escape what is to come. Continue Reading

This article is dedicated to the growing segment of American society that is awakening to the ideas that we are increasingly overworked and overtaxed. My goal is to determine an effective tax burden on the average middle-class American. I will leave it to the reader to judge relative severity of the burden as measured against associated “benefits” to which he is “entitled” from the system. Continue Reading

Since I, along with most people, am feeling thrifty, I searched high and low for thrifty tips. Here are some of my favorite  websites dedicated to saving a few more pennies. Continue Reading

In this, the winter of our economic discontent, it’s not surprising to see the number of people who are finding an opportunity to reinvent. Sure, sometimes it has more to do with just an itching to try something new than anything. But more often than not, this decision is terror-driven or security-driven. Ether way, once you get past the sheer panic of OH MY GOD! WHAT AM I GONNA DO NOW, you just may find yourself in a perfect position to try something new. Continue Reading

With the increase in the number of foreclosures an increasing number of the borrowers are turning to loan modification programs. Working with your lender, loan modification can prevent foreclosure and also help you in save some cash. Continue Reading

In January, regarding the American Recovery and Reinvestment Act, President Obama stated that “there is no disagreement that we need action by our government, a recovery plan that will help jumpstart the economy.” Over 300 economists, 3 Nobel Laureates, and many other prominent scholars signed a statement in opposition to the plan.

Political disinformation only goes so far in the digital age.

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The Federal Reserve is creating tens of trillions of new dollars, debasing our currency, and silently taxing us all through inflation. With tens of trillions in federal budget deficits on the horizon there is nowhere for the US dollar to go, but down.

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A year ago the S&P 500′s earnings were $84.92.  This year (TTM) they are $51.37.  That is a decrease of 40%.  A year ago, the S&P was trading at 1478 and now it is at 873.  That is a decrease of 41%.  If a company’s earning decrease by 40%, then the stock’s price should decrease by 40% (so long as there haven’t been any changes in the number of shares outstanding).  So according to the decrease in earnings, the S&P is valued correctly. 

The earnings of the S&P are distorted this year.  Six companies (AIG, WB, S, GM, ML, C) had over $170B in losses in the TTM.  Six companies represent about 1% of the 500 companies in the S&P but accounted for 60% of the decrease in earnings.  These six firms lowered the earnings of the S&P by $20/share.  Drop these six from the S&P and the earnings are $71 instead of $51.  And that is only a 16% decrease in earnings since last year.  If earnings were $71 instead of $51, the S&P would theoretically be trading at 1242.  Continue Reading

If you want spectacular gains, like Buffett used to make back in the day, you may be out of luck using Buffett methods.  I believe that back in the day, markets were less efficient and more stocks were incorrectly valued.  Finding stocks that catapult 100′s of percent in value in a year or two is very hard to do.  It is hard to find stocks that will grow 50% in 3 yrs.  And that isn’t even crazy growth.  That was normal 20 yrs ago.  Maybe it is just the last decade which has me pessimistic?  (It’s the only one I’ve invested in though.)

Anyways, if you think you know which way the market is going to move there are ways to boost your returns besides options (and probably less expensive than options).  My friend who trades options (his closest friends know him as “The Horse”) told me that “right now options are selling at a very high premium because we are in a market of never before seen levels of volatility.”  Continue Reading

Recently Warren Buffett spent $8B buying preferred shares of big US companies (GE and GS).  He gets a 10% yield on his shares.  These preferred shares are different than regular shares.  You don’t hear about them very often. Continue Reading