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February, 2009

The Bank of Japan will buy 1 Trillion Yen of Shares Held by Banks, But will it be enough?

Submitted by Sean Hyman on Tue, 02/03/2009 - 12:01
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The stock portfolios of banks in Japan have been hurting as badly as anyone else’s lately. The Bank of Japan fears that it could cause these banks to stop lending towards the end of their fiscal year (March 31st) and even beyond.

Therefore, overnight, the Bank of Japan decided to start the process of buying 1 trillion yen worth of stock from these banks. This way it will help to shore up their capital and help them to continue the lending process without being so tied to their stock market.

The central bank will purchase shares until April 2010 and will hold these shares until at least March of 2012.

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How “Mark to Market” Accounting is affecting the Net Worth of Businesses all over America!

Submitted by Bob OBrien on Tue, 02/03/2009 - 11:14
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There is a really good joke in the accounting world that is really important to know in order to understand the economy, the stock market and the current credit crisis. It is important to realize that there are times when you may have to make your own challenging decisions when calculating your own net worth. 

 The joke is about an accounting firm looking to hire a recent graduate. The accounting manager has only one question for the candidates. The first candidate walks in and the accounting manager asks, “What is two plus two?” The candidate says “4”   and the manager states “don’t call us, we will call you” (obviously no longer a candidate).  

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Think… “Roth IRA”!

Submitted by Bob OBrien on Mon, 02/02/2009 - 14:25
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The Roth IRA is one of the most amazing savings tools ever created and not enough people are taking advantage of them.   You literally get tax free growth!  Keep in mind that there are not many things out there that are “tax free” in this world. However, the Roth IRA is one of them. 

With the Roth IRA, you are allowed to put in $5,000 a year (6k if you are over age 50) with “after tax” money and this money grows tax free…not tax deferred. That means there will be NO TAX, assuming you draw out in retirement in which the account has been originally designed.   It is definitely worth your while to see if you qualify for a Roth IRA in 2008 or 2009. Everyone will qualify in 2010, because there is no income limitation.    

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More downside for the New Zealand dollar to come!

Submitted by Sean Hyman on Mon, 02/02/2009 - 10:59
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Oh the woes of New Zealand! The way I see it, this little country has at least five things going against it right now that I think will continue to weigh on its currency.

So let’s talk about these factors that are weighing down on the country all at once and you will see what I mean.

First of all, commodity prices have plummeted and this country depends heavily on exporting commodities around the world (predominately dairy and agricultural products).

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