LOBBYIST SHAFT US AGAIN
First up, my most recent article for the Rockdale Weekly news titled “Beware Hidden Fees and Lower Standards Until Next Year” is about new 401k regulation to help improve transparency and accountability. Right after my article went to press, the Department of Labor announced their decision to re-propose their ruling on the definition of fiduciary and put in more delays. Classic Washington: Serve the interest of Wall Street at the expense of Main Street. My Article link: http://www.rockdalenews.com/section/72/article/7969/”Beware
From Fiduciary News, I included an excerpt from an article titled “As Brokers Cheer, Advisers Sound Off on DOL 401k Fiduciary Capitulation” by Christopher Carosa.
“Since a fiduciary cannot serve two masters (indeed, a “fiduciary,” with eight centuries of definition behind it, can only serve the beneficiary), it only makes sense that a rule pertaining to the definition of fiduciary serve only one master. Oddly, the DOL’s original proposal allowed brokers to continue receiving transaction-based fees normally prohibited within a fiduciary relationship. The protection of self-dealing transactions stands out as of the primary points extracted from King John by the abused English barony in the signing of the Magna Carta. Sure, it cost the King’s men, but wasn’t that the whole point of the protection?
————————————————————————————————-
DUMB AND DUMBER STILL PLAYING
Federal Government Pays Dead Workers $120 Million A Year: Report
The Huffington Post Jillian Berman
“As politicians debate the best way to address the national deficit, the U.S. Office of Personnel Management has found one line-item that would seem easy to cut: payments to dead federal workers.
The federal government’s Civil Service Retirement and Disability fund has improperly paid dead federal workers $120 million annually over the last five years, a new OPM report finds. One man, whose father died in 1971, continued to receive payments until 2008 when he himself died, costing the government $515,000, according to the report.”
http://www.huffingtonpost.com/2011/09/23/federal-government-retirement_n_977878.html
Borrowing from Communists to pay Jihadist?
Jewish World Review Clifford Day
“The debt crisis, chronic high unemployment, the tumbling stock market, the credit downgrade — these are, fairly obviously, symptoms of an economy in distress. We might disagree about the best policy responses. But perhaps we can agree on the worst: borrow massive amounts of money from the communists who want to diminish us and transfer that wealth to the Jihadist who want to destroy us. Surprise: That long has been U.S. government policy and, so far at least, it remains in place.”
http://www.jewishworldreview.com/0811/may081111.php3
WHY DOESN’T THIS MAKE NETWORK NEWS?
Pretty surprising (and encouraging) poll results from Harris and Zogby. The latest Harris Poll Shows that two Republican candidates could beat Obama: Mitt Romney and Ron Paul. Why didn’t that get more air play? How bout’ the Zogby Poll showing Herman Cain leading the Republican field? And a full 10% ahead of Rick Perry!
Zogby article: http://www.humanevents.com/article.php?id=46473
WE HAVE SOME HOPE FOR PRESIDENTIAL LEADERSHIP
As you know, we need to break the Coke or Pepsi stranglehold politics. I read Tyler Durden’s Zero Hedge every day. Take the time to watch the Jon Stewart interviews of Ron Paul posted here: http://www.zerohedge.com/news/jon-stewarts-extended-interview-ron-paul
INTERESTING HEALTH CLIPPINGS
Could THIS Be the Hidden Factor Behind Obesity, Heart Disease, and Chronic Fatigue?
SAGE STATISTICS
Money Magazine did a very nice piece on “jumping in and out of stocks at the wrong time.” I particularly liked it as the advice is consistent with my beliefs (and good investment theory and reality). Bottom line: attempting to time the market by jumping out when others panic is a loser’s game. A Morningstar study found that over the painful ten years through 2009, the average investors effort to avoid losses cost $15,000 on a $100,000 investment relative to just staying in the market. I was pleased to see we have a lot of professional company. A Money survey of advisors found that 44% ranked “fleeing stocks when the market craters” as the top mistake and right behind that was “flocking to the latest top-performing investments.” The article went on to provide some interesting examples:
- 1966 – Investors flocked to star manager Gerald Tsai’s new Manhattan Fund. By 1974, it had the worst eight year record in the entire industry.
- 1973 – College endowments and other “conservative” (my quotes) investors poured money into growth stocks just before prices imploded 45%.
- 1999 – With the DOW above 10,000, the book DOW 36,000 touted that stocks were still cheap.
- 2006 – As home prices peaked, the National Association of Realtors chief economist published “Why the Real Estate Boom will Not Bust.”