How can those unable to afford water find a way to pay an attorney to fight the water cutoff? Let this story be a reminder of everyone in California to be a bit more mindful about their own water usage.

http://www.hngn.com/articles/44008/20140929/detroit-judge-refuses-stop-water-shutoffs-claims-residents-right-free.htm

Since we are talking about bonds in FIN101 now…

http://m.csmonitor.com/Business/Latest-News-Wires/2014/0929/Bill-Gross-out-at-Pimco.-So-who-s-the-next-bond-king

According to this article hedge funds last outperformed the S&P500 in 2008. Even then, the return was less negative than the S&P. I agree with the notion that averaging returns from all hedge funds does not provide much information on top performers. However, past performance is no indicator of future performance. A winner for the last 5 years could be a loser the next. There is no reliable way to identify the top hedge fund managers over the next five years.

A good point was made about the time horizon of hedge funds. Hedge funds help “hedge” against risk in the short term (in theory). Pension funds have 20 to 30+ year time horizons. Hedge funds really don’t fit in a pension portfolio. This is especially true given the high fees and opaqueness of the industry.

So as a hopeful CalPERS pension recipient, I am at peace with shifting money completely out of hedge funds. Now, what must be done to ensure solvency? Perhaps everyone needs to take an equal percentage cut. Everyone includes current retirees, executives, employees, contractors, future retirees, and any other stakeholder I forgot to mention. Perhaps that model of shared sacrifice would require less pain for everyone and lead to sustainability..

http://m.theweek.com/article/index/268732/are-hedge-funds-doomed

Interesting. I wonder why there is no competition in hedge funds? For example, index funds charge less than 1% in fees yet had 2 to 3 times the return last year. Why aren’t there hedge funds with lower cost structures competing for business?

Does the principle of parsimony apply to investing also: the simplest approach (e.g., long only stocks and bonds) better than the complex (hedge funds with long, short, derivatives, and other unexplainable investments)?

http://mobile.nytimes.com/blogs/dealbook/2014/09/15/nations-biggest-pension-fund-to-end-hedge-fund-investments/

So Credit Suisse and other already wealthy people and firms are going to make a big profit (read: triple their private investment) in this IPO. What about the average investor? They are the ones transferring their wealth to the already wealthy individuals and firms. You could view this as the poor masses paying the already wealthy 3X their initial investment hoping that they (the poor masses) can flip their investment also.

Good luck with that. It sounds like one big game of hot potato. I pass. Perhaps you should too. We haven’t even talked about shareholder rights of a US investor in a Chinese company…

http://www.marketwatch.com/story/alibaba-ipo-is-a-bonanza-for-select-firms-2014-09-15-221035654?siteid=rss

$2.5 billion to port a game to windows phone? There has to be more to this story. I don’t know of a single person who chooses their smartphone based on video game availability. But, perhaps Microsoft has estimated that some of the 50 million users of minecraft will eventually turn into windows phone users. Seems like a stretch to me.

http://appadvice.com/appnn/2014/09/microsoft-may-announce-2-5-billion-acquisition-of-minecraft-maker-mojang-on-monday

How many bankruptcies has this been for Trump-controlled businesses? I believe it is around 7 or 8 now. My question is, why would any bank provide a loan to this organization?

Also, note the article’s reference to declining casino attendance due to less disposable income. This is yet another indicator that income of the 99% is not keeping pace. Even if it were, a casino is probably not the best place to spend your hard earned cash. Perhaps the stock market would be better. 🙂

http://nypost.com/2014/09/09/trump-entertainment-files-for-bankruptcy-again-in-blow-to-ac/

The writer of the article suggests the rise in consumer debt is a sign of an accelerating economy. I disagree. I see it as a sign that incomes have not kept pace with the cost of living.

The wealth gap is widening further. Unfortunately, non-wealthy people are paying interest that benefits the wealthy executives and shareholders of finance companies. Do your part. Reduce your debt and reduce the amount of wealth transfer from the many poor to the few rich. (Or buy some shares of BofA?)

http://www.usatoday.com/story/money/business/2014/09/08/consumer-credit-july/15296323/