Regulatory Expansion via “Too Big to Fail”

When we can, consumers save for a house, for retirement, for college, or for unexpected expenses.  Savings sometimes molder in bank accounts, but wise savers use a portfolio of certificates of deposit, mutual funds, common stocks and bonds.   In the depths of the housing-finance recession, the federal government loaned billions to mortgage-lending banks they deemed […]

Interest Rate Risks

For 80% of consumers, exposure to interest rates have been in mortgages, car loans, and passbook savings, but not stocks and bonds.  For several years, consumers who are investors, and especially retirees, sat on cash to avoid the volatile equities market and low-yield fixed income market, usually CDs or municipal bonds (“munis”).  High grade bond […]

Will the Euro Zone Harm My 401(k)?

Euro Zone members are pointing fingers, lecturing on austerity and mugging for cameras by convening riots in the streets and gatherings of politicians.  U.S. consumers just want to hear the “prepare for the worst” commentary, as did Houseman:   And while the sun and moon endure Luck’s a chance, but trouble’s sure, I’d face it as […]