Recently in Money Category

I have two vehicles that I no longer need. One I had hoped to keep until Jerry was old enough to work on it with me, but since it is now occupying our only indoor parking spot (the condo garage) it may be costing more in opportunity cost than its worth.

That would be the 1967 MGB GT (scroll to view).

The other is a 1994 Jetta III GL - originally purchased for the price of an alternator, this vehicle has done very well for us. We outgrew it and recently purchased a 1999 Nissan Quest mini-van. The Jetta has ~160,000 miles on it. I've put several ads on craigslist but haven't received a bite yet.

I'm considering just donating both off them. Worst case, I can write-off $500 per car. Ideally, I receive more than that.

I have now mastered the art of buying high and selling low!

I have also noted several observations:

• The leveraged funds lose value over time due to high expense ratios and the simple math that 10% and 10% up doesn't mean you're in the same position. These need to be day-traded, not held - and you need a stomach for big market moves.
• Futures tend to overreact; while they may predict the outcome for the day, buying pre-market or post-market exacerbates the sentiment. I think this can be taken advantage of by being "anti-sentiment".
• Don't count your chickens before they've hatched. If you feel that giddy about your position, take the profit now.

I've also learned that my experiment with day-trading has reduced my average amount of sleep from 8 to 5 hours a night. It has very quickly become an obsession with very little (if any) personal gain. While there is an unrealized (!) potential for monetary gain, a different obsession would be a better investment of my time. Nontheless, I am not abandoning this obsession just yet...

I've obviously been spending a lot of time learning about what's going on with the financial markets, the economy, etc. I am certainly no expert, but far more informed then I was a few months ago. I have yet to take the same strong interest in politics...

Flashback to 2002, when I quit my job at InsynQ as a beautiful love interest (Eriko) forced me to realize that it was going nowhere. In doing so, I spent several months unemployed and it has completely impacted and changed my spending habits. Before the unemployment, I spent money like I would always have money - not necessarily in debt, but very little savings.

Since then, I strive to (as my father would say) "save where I can, so I can spend where I want." Eriko prepares my lunch on a daily basis, she cuts my hair, we rarely go out to eat, we drive old cars, and live far from a consumption lifestyle - but we do splurge on things like memberships to the Children's Museum and Zoo for Jerry, trips to Japan and Pennsylvania, and of course - toys for Jerry.

I see the current financial crisis (and the pathetic political situation that has done nothing to abate it) as the trigger for me to be more involved, more engaged, and more educated. Ideally, I'll make better decisions regarding my longer-term financial goals.

In crisis, there is opportunity.

Certainly isn't good for my prospects of purchasing a home.

Today, I faxed the House Republicans who originally voted NO, urging them to stand their ground. Sadly, the
Senate bill includes pathetic amounts of pork targeted specifically at those representatives....

I've also begun faxing the Blue Dog Coalition. Mish lined up the fax numbers in a nice easy format for my faxing program, but coincidentally I discovered the Blue Dogs yesterday before his post (how about them apples?)

Here's a great article that just reinforces the stupidity and immorality of the current bill. You can read the full text here.

House Republicans "have tried to fashion an alternative plan that, instead of relying heavily on taxpayer money, could let banks buy insurance for the troubled assets weighing down their books."

Say it again! A plan that doesn't rely on taxpayer money! A plan that has Wall Street banks who took extreme risk paying for those decisions instead of me!

I pray our elected officials can withstand the temptation to "do something" and instead, do the right thing.

I even called my two senators (Murray and Cantwell) today. Most of the faxes were campaigns thanks to Mish, but I've also been urged on by Jesse, Karl, and others - and I've even authored a few originals.

It helps that I was able to script the delivery of a single letter to multiple senators using some Python and MetroFax.

The following text was reproduced with permission from Mish. If this compels you, this should also. Act now!

This was the fastest way to spread the word. I have faxed my senators (and those below). I encourage you to do the same.

Fate May Rest With Shelby
CNBC is reporting Fate of Bailout May Rest With Republican Sen. Shelby.

Many members of the U.S. Senate blasted the Bush administration's Wall Street bailout plan Tuesday, but no senator has come forward so far with an explicit pledge to kill the $700 billion proposal.

The rules of the Senate, unlike the House, give individual lawmakers substantial power to delay or halt legislation, but three Senate aides said there were no clear signs yet of that power being exercised.

As the Senate Banking Committee held a hearing on the plan put forward by the Treasury Department, aides said much would depend on Alabama Sen. Richard Shelby, the committee's top Republican, who was sharply critical at the hearing.

The outlook for Treasury's plan would dim greatly if Shelby were to move to block the bill that is expected to emerge soon from congressional debate over the plan, the aides said.

Other senators, including Republicans Jim Bunning of Kentucky and Jim DeMint of South Carolina, have expressed strong concerns.

But the aides said these lawmakers also have stopped short of warning they would work to block the bill.

Another Fax Needed

Fax Title "Senator Shelby, Block This Bill"

Senator Shelby

You are correct when you say the crisis was created by "sloppy underwriting and reckless disregard for the risks they were creating, taking, or passing on to others."

Most importantly you are correct when you state "There are no credible assurances that this plan will work. We could very well spend $700 billion and not resolve the crisis."

Senator, the odds of failure are 100%. The Paulson plan will not create any jobs or help homeowners pay their bills. Instead it diverts $700 billion of taxpayer funds to failed banks that took excessive risks. The sheer size of the bailout will cause interest rates to rise, further adding to taxpayer woes.

Robbing taxpayers to pay failed banks cannot possibly work!

Printing money and giving it away cannot work either. If it did work, Zimbabwe would be the most prosperous nation in the world.

Senator Shelby, our prayers are with you that you have the courage to stand up for what you know you must do: Block This Bill.

I ask that you approach fellow Senators Jim Bunning, Chuck Grassley, and Jim DeMint in hope that one or more will have the courage to join you to in preventing what is still a preventable disaster.

Your Name
Your Phone Number

Fax For Bunning, Grassley, DeMint, Ensign, Reid

Dear Senator

Earlier today I asked Senator Richard Shelby to have the courage to stand alone, if necessary, block the Paulson proposal.

Senator Shelby is correct when he states "There are no credible assurances that this plan will work. We could very well spend $700 billion and not resolve the crisis."

Senator, the odds of failure are 100%. The Paulson plan will not create any jobs or help homeowners pay their bills. Instead it diverts $700 billion of taxpayer funds to failed banks that took excessive risks. The sheer size of the bailout will cause interest rates to rise, further adding to taxpayer woes.

Robbing taxpayers to pay failed banks cannot possibly work!

Printing money and giving it away cannot work either. If it did work, Zimbabwe would be the most prosperous nation in the world.

Senator, our prayers are with you that you have the courage to stand up with Senator Shelby and do what you know you must do: Block This Bill.

Your Name
Your Phone Number

Sen. Richard Shelby (R) 202-224-3416 or 202-224-5137 (both seem to work, I fax both)
Sen. John Ensign (R) 202-228-2193
Jim DeMint (R) 202-228-5143
Sen. Jim Bunning (R) 202-228-1373
Sen. Chuck Grassley (R) 202-224-6020
Sen. Harry Reid (D) 202-224-7327

The Odds Of Success Improve With Every Fax!
Your Fax Counts.
This is a critical Juncture, please act now.

Pass this email to 10 others and have them do the same.