You Should Never Fear A Breakup Of The Too-Big-To-Fail Banks

I have always found it odd that people that a breakup of the big banks like Citigroup, Bank of America, Goldman Sachs, JP Morgan, and Wells Fargo would somehow screw over shareholders.

As you probably know, the most legendary business breakup of all time occurred when the Supreme Court decided to break up John Rockefeller’s Empire at Standard Oil into dozens of baby oil pieces. Rockefeller was on a golf course at the time he found out about the ruling from one of his aides, and he reportedly responded to the news by saying “Buy Standard Oil” and then going on to sink a ten-foot putt (hate him or love him, you gotta admit that the big dogs of American capitalism lack the panache that the titans of yore possessed).

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If You Are Investing A Few Hundred Dollars Per Month, Computershare Should Be Your Best Friend

www.computershare.com

Check it out. Scroll through the terms of some of the plans available.

If you looking to put less than $250 or so into a given stock each month, I’d stick with the companies that charge $0 in purchasing fees for each transaction by clicking here:

https://www-us.computershare.com/investor/3x/plans/buyshares.asp?stype=nof

Paying $2.50 in fees on a $1,000 monthly purchase is only a glorified rounding error, but paying $2.50 on a $100 monthly purchase is shooting yourself in the foot as you run the marathon of your investing life—you’re giving up 2.5% in your first year’s annual returns right away.

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Bob Dylan, Columbia Records, And The Abuse Of The Scarcity Principle

Yes, you can ruin a sound economic principle by taking it too far.

One of the basic underpinnings of Economics 101 is this: the creation/illusion of scarcity is good for the provider because it (artificially) stimulates demand, giving the owner of the good the option to make a tidy profit either due to increased volume and/or the ability to raise prices.

A company that demonstrates a sound understanding of this economic principle is McDonalds Corp. They regularly roll out the Monopoly challenge for “a limited time only”, increasing demand among fast food customers weighing their options about where to eat by convincing them to go to McDonalds because those Monopoly pieces will only be around for a couple weeks (if the promotion ran year-round, the novelty would wear off to the point where it provided the company no additional edge).

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Why You Should Follow James Altucher At The Altucher Confidential

There’s about fifteen or so writers in the personal finance realm that I make a point of following regularly. I’ve highlighted some of them—Mr. Money Mustache, Jason Fieber at Dividend Mantra, and Greg McFarlane at Control Your Cash—in previous posts already mentioned on this site. The next writer I wanted to highlight is James Altucher who runs “The Altucher Confidential” at www.jamesaltucher.com.

The one common thread that links every finance writer I admire is that they almost all regard money as a tool that can allow them to reach a particular goal in life (whether they want a sweet beach house in Foley Beach, the accompaniment of a gorgeous woman, or the ability to say cyanora to a soul-sucking job, etc.) and they often document the psychological aspects of the journey. Almost all good finance writing focuses as much on psychology as mechanics. We all know the key to a good body is eating better and exercising more. We all know a successful financial life is some variation of living below our means and doing something intelligent with the difference. The best finance writers tackle the mental barriers that can prevent us from bridging the gap between who we are and who we can be (hint: it’s almost always due to some combination of pride and fear).

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Bruce Springsteen Released “Born To Run” 38 Years Ago Today

On August 25th, 1975, Bruce Springsteen released the album that forever changed his life, Born To Run.  It is an eight track masterpiece that finally proved The Boss worthy of the lavish praise the New Jersey music scene had been heaping upon him.

The eight tracks go as follows (links are taken from the 1975 performance at The Hammersmith Odeon, which along with the 1978 show at The Winterland and his 1980 show in Los Angeles, mark the Boss’s greatest live performances).

#1. Thunder Road.

http://www.youtube.com/watch?v=Tx71aA62Hx4

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