Roger Nusbaum

What’s My Payment?

One thing that I don't think you get to (but maybe I'm wrong) is that for the various problems people have (over-levered, lack of savings and so forth) at some point everyone knows not to spend more than they make, someone (maybe a grandparent) told them to save X% yet folks eventually find their way into doing the opposite of what they know is right.

My parents made a lot of personal finance mistakes which I have benefited from enormously. Learning from the mistakes of others is a huge concept IMO.

Bears and Big Gains

JWG, what you say about issuer risk is of course correct. The BGI division is profitable and I believe that division would survive, maybe via an asset sale, and the ETNs would not default. However that is just opinion and I would not want to own more than one ETN from them at a small weight--I don't own any of their ETNs but owning one in a small weight is not insane.


On Jan 23 08:40 AM JWG wrote:

> Betting on the VIX is betting on a derivative of a derivative of
> a....
>
> This isn't investing, it isn't even speculating, it's just gambling.
> I'm not opposed to somebody gambling, but they ought to be clear
> about it.
>
> And there is more, that Roger did not mention: ETN risk. An ETN depends
> on the issuing bank. It's *NOT* an ETF.
>
> If Barclays rolls over and croaks, your investment is gone, as far
> as I understand it. There are no underlying assets; you're just placing
> a bet at the casino, and if the house goes bust, you don't get your
> winnings, or even get your stake back.
>
> Like all banks in the UK, and indeed elsewhere, one has to ask whether
> Barclays will be around and honor their commitments. These are perilous
> times, for banks.
>
> JWG

The Outlook for Financials Failure

Jared, BAC is the one domestic financial stock I have owned for several years. Everything else for financials has been foreign banks.

The Outlook for Financials Failure

Wes Mantooth? Great moniker, I'm in stitches.