Net Worth – Jan 2008 January 31, 2008
Posted by pf in Net Worth Update.Tags: average net worth, CD, certificate of deposit, Credit Card, debt, january, net worth, stock market, what should my net worth be
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Welcome to the first net worth update of 2008. It is no surprise to anyone that the new year has not gotten off to a good start. Amazingly, it was only 2 short months ago that my equities portfolio hit a high of ~$252,000. Fast forward to now and we sit at ~$241,000…and that includes both the additional investment I made (couple of thousand) and the recent gains over the last few days (several more thousand).
However, I’m not overly pessimistic…yet. I have created a couple of CDs that will yield over 5% for the next 12 months, and with any luck, likely to get some additional cash infusions in the coming months (tax return, bonus, etc). Also, I found myself with a little additional cash this month which softened the blow a bit with a decrease in my net worth of only -$3327.
Subprime Bailout: New Proposal January 31, 2008
Posted by pf in Expenses and Savings.Tags: bailout, default, dodd, foreclosure, mortgage, subprime, taxpayer
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I just read about a new subprime bailout posted on CNNMoney.com. Essentially, what is being proposed is the creation of a Homeownership Preservation Corporation that would buy mortgage securities that are collaterlized with at-risk, subprime loans.
The kicker is that to get this fund going, it would require $20-25 BILLION dollars from taxpayers to get it going.
I’m sure it’s in the early going yet, but I see no reason whatsoever for government intervention…and especially not with taxpayer money. NONE.
Here’s the link:
New $20B subprime bailout on the table
Fed Cuts Rates Again January 30, 2008
Posted by pf in Expenses and Savings.Tags: Bernanke, CD, certificate of deposit, debt, fed, mortgage, rate cut
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Well, not unexpectedly, the Fed cut rates again by another 1/2 point. Admittedly, I’m feeling quite pleased with myself having opened up those 2 CDs these last couple of months (Fed Emergency Rate Cut…I Made a Move). Of course, these rate reductions were not without cause, and the losses to my portfolio due to the tanking stock market quickly wipes the little smirk off my face.
So, what’s next? I suspect the Fed will pause for awhile and see what transpires. The rate reductions will take quite a few months before we’re able to determine what effect they had. In particular, there are still mixed signals about the economy (recession or no?) including upticks in inflation.
