Archive for October, 2008

Dollar Savings Direct 4.00%

Dollar Savings Direct is offering an online savings account with a nice yield of 4.00%. According their website they offer No Fees but a $1,000 account balance minimum. Fill out online savings application here.

Feds Cut Rates…Again

The feds have cut rates, now below 1%. That’s great news for mortgage lendees and people with home equity loans, but if you’re expecting credit card rates to go down. forget it. This rate cut is supposed to instill confidence in consumers. However mortgage rates have remained high. The average mortgage rate last week was at 6.3 percent, according to Bankrate.com, above the rate earlier in the year.

New Page Added

I added a financial calculator page that includes all of favs. I’ll be adding more when I find some really great ones.

Dr. Doom Predicts Market Stop

Nouriel Roubini, an economic adviser to Bill Clinton in the late 1990s, has made many unpopular but correct predictions about the stock market. A year ago he predicted that the market would fall, and people laughed. They dismissed his financial predictions that the sub-prime mortgage disaster would trigger a financial meltdown. Or his view that US mortgage giants Fannie Mae and Freddie Mac would collapse, and that the investment banks would fail. Well, not anymore, not he has become a sought after economic speaker and advisor to some of the wealthiest business mean and politicians the world over.

So what is his latest prediction for our already shaky stockmarkets? Well in London last week he predicted that hedge funds by the hundreds would collapse and the makets would have to close for up to a week to stop the panic selling.

In case anyone wants a different take on this, his critics say that his predictions of a US recession in 2007 was wrong. According to Anirvan Banerji, economist with the New York-based Economic Cycle Research Institute, Roubini’s prediction aren’t based on mathematical models.

via TImes Online

Gold Hits Low

Is gold a good investment these days? Some would argue that gold at a 13 month low, currently $744 an ounce, is a steal right now. Gold is often thought of as a hedge against a bad economy and turmoil in the world. Where as stocks of companies can go from $100 a share to pennies in a day, gold rarely shows that kind of fluctuation. Others can argue that gold is also a physical piece of property. Buy some gold coins and put them away safely and you will always have them. If a company goes belly up, you have a worthless piece of paper.

The drawback is that gold, unlike stocks with yields and money market funds, doesn’t gather interest. It sits there, not unlike any other piece of metal. And even though the bottom is surely dropping out of the market right now, stocks do perform better over the long run. My advice? If you’re in the market for the long term, there are great deals on stocks right now and you should be buying good companies. If you are on a fixed income and need your money now? Take a look at gold.