Google and China

It has come out that Google intends to pull out of China because the government in China has a habit of eavesdropping on emails and other communications. It's their way of keeping the country safe. The Chinese market, as everyone over the age of 3 knows, is huge. Google will therefore not pull out. Hell might freeze over if that happens. This topless woman might cover up if that happens. The Pope might enter the Boston Marathon if that happens. Please.

Five seconds of carelessness

It didn't have to end this way: From a story in The New York Times: “Adolph Merckle’s creditors were responsible for his death, even if they were not present by the tracks on that snowy night that he jumped in front of the train”, said a town resident. His employees and residents of his hometown saw Mr. Merckle as a decent, taciturn man who looked after his workers and his community, despite his wealth. He was No. 94 on Forbes magazine’s most recent ranking of the 400 richest people in the world. His four children grew up in a modest one-family house with the Merckle name on the mailbox. “I look at this as the banks’ taking the heart out of the family,” said a member of the Blaubeuren City Council. Mr. Merckle’s suicide shocked Germany as much as it angered Blaubeuren, where he was eulogized Monday at a memorial service that overflowed the hamlet’s church.” Merckle had recently lost 400 million Euros in a bad bet against the share price of VW. He was deep in debt with no way to pay it down quickly or restructure it. His flagship company was about to be sold. He had simply been caught in the vise of the worldwide economic downturn – completely unprepared. But, he had also borrowed way too much in order to acquire new businesses. One of my favorite teachers once told me, “be careful that you never bite off more than you can chew.” GOOD ADVICE.

Crystal Balls

From Business Week (the magazine): Some of the worst financial predictions for 2008 and you can see why: “1. "A very powerful and durable rally is in the works. But it may need another couple of days to lift off. Hold the fort and keep the faith!" — Richard Band, editor, Profitable Investing Letter, Mar. 27, 2008. 2. AIG "could have huge gains in the second quarter." — Bijan Moazami, analyst, Friedman, Billings, Ramsey, May 9, 2008. 3. "Freddie Mac and Fannie Mae are fundamentally sound.... I think they are in good shape going forward." — Barney Frank (D-Mass.), House Financial Services Committee Chairman, July 14, 2008. 4. "I'm not an economist, but I do believe that we're growing." — President George W. Bush, July 15, 2008. 5. "I think Bob Steel's the one guy I trust to turn this bank around, which is why I've told you on weakness to buy Wachovia." — Jim Cramer, CNBC commentator, Sept. 15, 2008. 6. "Existing-Home Sales to Trend Up in 2008" — Headline of a National Association of Realtors press release, Dec. 9, 2007. 7. "I think you'll see $150 a barrel [of oil] by the end of the year." — T. Boone Pickens, June 20, 2008. 8. "I expect there will be some failures.... I don't anticipate any serious problems of that sort among the large internationally active banks." — Ben Bernanke, Federal Reserve Chairman, Feb. 28, 2008. 9. "In today's regulatory environment, it's virtually impossible to violate rules." — Bernard Madoff, money manager, Oct. 20, 2007. 10. "There's growing evidence that parts of the debt markets...are coming back to life." — Peter Coy and Mara Der Hovanesian, Business Week, Oct. 1, 2007” THE WOMAN AT LEFT is saying something like "SAY WHAT?"

Obsession

Is it possible to become obsessed with the stock market, the way you would a beautiful woman or fine liquor? If you're not careful, you could begin to treat it the same way you would a card game like poker. The stock market is not a nice place for gamblers. You have to know something about what you're buying - choose wisely. There are always at least two roads to choose from. My choice is the color blue.

Sell fast

If you live in one of these zip codes and are planning to sell your house, you're lucky. According to Business Week magazine, these are the fastest selling zip codes in the country - houses are averaging about 70 days on the market (compared to six months elsewhere): 94087 and 92131 (in California); 78749, 75075, and 77094 (in Texas); 97202 (in Oregon), 01880 (in Massachussetts); 98117 (in Washington); 80130 (in Colorado); and 30340 (in Georgia). According to Smart Money, the hardest hit states when the housing bubble burst were Nevada, Florida, California, and Arizona.