Kiisu

Hedge Fund Redemptions May Crash Q1 Markets

I'm a soon to be retired Fed (10 days). And though I've looked, I've not found any references to a "Madoff-effect" on the TSP.

Payrolls Drop - And You Ain't Seen Nothin' Yet

ummm... a failing of mine is that I like to tack generalities to specific examples... sometimes relationships pop up.

For example, my extended family can be divided into 3 groups based on education. Those same groupings have, as best as I can determine, a 100% positive correlation with both household income and household wealth.

The first group for the most part did not finish HS. Most of the group (there are 2 counter examples) engage in what I consider risky behavior (drunkenness, smoking, drug use, minor drug dealing, cons, petty theft, & casual sex). For the most part they live from paycheck to paycheck... when there is a paycheck (the majority of the group have never held a full time job for a year... and as a SWAG the group averages a paycheck perhaps 30% of the year). For the remainder of the year they live on charity, con, theft and hand-outs. Their assets consist of junk cars, a long gun and whatever else they've been able to steal or scrounge. All have been in jail, some have been in prison.

The second group graduated from HS, and perhaps attended a bit of college or tech school. They hold steady, but minimal paying jobs, have little if any financial reserves, retirement is a fantasy, most have rented for years before finally scraping together enough cash to finally afford a house (though I suspect most here, if they could see the dwellings would scoff and label them shanties). They survive via hard work, diligence and perseverance. I was born into this group.

The third group graduated from college, some have advanced technical degrees, usually engineering. Most have pensions, health benefits, cash reserves, and multiple investments. Some own their own businesses, others consult part-time as well as work full-time.

In cataloging and reviewing the members of my family, the one determining factor seems to be attitude. In my family, attitude determines:
* If the individual can defer immediate gratification.
* If the individual takes advantage of available education.
* How the individual manages financial decisions.

Being able to defer immediate gratification means the family member mortgages the present to secure a better future, improves his education and learns to make better financial decisions.

However, education and wealth say nothing about the “quality” of an individual… for example, one of our best educated family members is self-righteous arrogant scoundrel who my wife and I avoid when ever possible. While her brother, a member of the first group, is a real pleasure to be around… despite his brushes with the law.

Your family may be different, but the above describes mine.