A Lifetime Of Investing: Links – Part 2

Stumbled across more useful links:

Kitces: Eleven blogs for all financial advisers to follow http://t.co/sN8JlWSP Thanks @MichaelKitces Check this: @RPSeawright — Wade Pfau (@WadePfau)

Happy reading!

FDIC Proposal Classifies Gold As Tier 1 Capital

If there is any doubt of the role of gold (that barbarous relic) in the banking system, let’s ponder its role as Tier 1 capital by the Federal Deposit Insurance Corporation:

Key Aspects of the Proposed Rule on Regulatory Capital Rules: Standardized Approach for Risk-weighted Assets; Market Discipline and Disclosure Requirements

Overview

The agencies are issuing a notice of proposed rulemaking (NPR, proposal, or proposed rule) to harmonize and address shortcomings in the measurement of risk-weighted assets that became apparent during the recent financial crisis, in part by implementing in the United States changes made by the Basel Committee on Banking Supervision (BCBS) to international regulatory capital standards and by implementing aspects of the Dodd-Frank Act. Among other things, the proposed rule would:

  • revise risk weights for residential mortgages based on loan-to-value ratios and certain product and underwriting features;
  • increase capital requirements for past-due loans, high volatility commercial real estate exposures, and certain short-term loan commitments;
  • expand the recognition of collateral and guarantors in determining risk-weighted assets;
  • remove references to credit ratings; and
  • establish due diligence requirements for securitization exposures.

This addendum presents a summary of the proposal in this NPR that is most relevant for smaller, less complex banking organizations banking organization that are not subject to the market risk capital rule or the advanced approaches capital rule, and that have under $50 billion in total assets. The agencies intend for this addendum to act as a guide for these banking organizations, helping them to navigate the proposed rule and identify the changes most relevant to them. The addendum does not, however, by itself provide a complete understanding of the proposed rules and the agencies expect and encourage all institutions to review the proposed rule in its entirety.  

A. Zero Percent Risk-Weighted Items

The following exposures would receive a zero percent risk weight under the proposal:

  • Cash;
  • Gold bullion;
  • Direct and unconditional claims on the U.S. government, its central bank, or a U.S. government agency;
  • Exposures unconditionally guaranteed by the U.S. government, its central bank, or a U.S. government agency;
  • Claims on certain supranational entities (such as the International Monetary Fund) and certain multilateral development banking organizations
  • Claims on and exposures unconditionally guaranteed by sovereign entities that meet certain criteria (as discussed below).

For more information, please refer to sections 32(a) and 37(b)(3)(iii) of the proposal. For exposures to foreign governments and their central banks, see section L below.

Source: http://www.fdic.gov/news/news/financial/2012/fil12027.html

Hmm…you don’t have to be a “gold bug” to recognize that gold has a role in the history of money that simply cannot be discounted, especially when fiat currencies are merely political coupons.

A Lifetime Of Investing: Links

I’ll put the wagon before the mule by providing the links ahead of my commentary on “Desperately Seeking Advice”. Apologies in advance as I’ll add the actual hyperlinks during the day. Thank God for web search engines!

At your fingertips and ready for consumption, here are the links that matter to me. Later I’ll add a list of influential books.

Investor’s Toolkit

Investopedia – if you’re confused by the lingo. Get a workout in the stock portfolio simulator.
Marketwatch
Bloomberg
Forbes
Google Finance
Yahoo! Finance
ZeroHedge
King World News – precious metals & macro oriented podcasts with some big name interviews by Eric King
WealthTrack with Consuelo Mack
The Reformed Broker by Joshua Brown
The Big Picture by Barry Ritholtz
Jsmineset – Jim Sinclair
Boom Bust Blog by Reggie Middleton
RT’s Capital Account youtube channel – Lauren Lyster

Twitter

@gold_tracker – gold
@lmgross – gold, economics
@JamesGRickards – author of Currency Wars
@ReformedBroker – Josh Brown (follow who he follows)
@ritholtz – “The Big Picture”
@tbuhl – Teri Buhl, independent  journalist
@moorehn – Heidi N. Moore, financial journalist

Personal Finance

http://www.moneyplansos.com – thanks to Steve for reaching out via Twitter
http://www.thefreefinancialadvisor.com – Average Joe’s Money Blog
http://www.afford-anything.com – yes, you can
http://www.carefulcents.com – Carrie Smith’s blog
http://www.yourfinancessimplified.com – Dominique Brown’s blog

(more to come…)

A Lifetime of Investing: Obligatory Disclaimer

“A Lifetime of Investing” will be series of posts about my own  journey through investing. For this reason, I’d like to start off with the obligatory disclaimer (you decide which to take seriously):

I do not work in the securities or financial advisory industry.

I am not an investment professional.

I am not a venture capitalist (yet ;).

I am an individual investor.

I am constantly following financial and economic news from mainstream and alternative sources (see below).

I am a fan of @ReformedBroker, @ritholtz, Zerohedge, Mises Institute, Ron Paul, RT.com’s Capital Account and several who comprise the 25 Most Dangerous People in Financial Media.

I am a member of Generation X and, thankfully, a drummer in a couple bands that did not play new wave music during the 1980s.

All posts are my opinions.

Seek advice whenever making investing decisions.

Drink warm milk to help sleep.

Take a walk during sunset.

Smile. Life is good.

Book review: “Backstage Wall Street” by Joshua Brown – Part 1

First of all, it is my intent to provide a complete review of this book. However, my approach will be a bit unorthodox: in serial, chapter by chapter, with comments & personal insights of my own.

Impressions

As a individual investor for many years, I’ve learned that “doing your own homework” easily applies to the investing world as it did back in the fifth grade. Learn as you go. Seek advice. Let your mistakes be important lessons on your road to wisdom. Since high school, my mom would give me tidbits from articles she had read from Money, Fortune, or the newspapers business section. Before the internet, it was print media and especially books that provided the independent advice she sought. So she bought books by Peter Lynch and others to gain insight into the investing world. “If they can do it why can’t I” may have been one of the motivator. The other one being:”how can I profit as others have.”

Now, advice is a tricky thing. One man’s advice is another’s sales pitch. Ah, there’s the rub. My parents were burned on a Florida retirement real estate deal that turned out to be a massive fraud. It was sold to white collar professionals in the 1980’s who were dreaming of a comfortable life in the Sunshine state. They did not do any independent research; they trusted the salesman. They lost big on money and a dream. They survived and still prospered but it left a deep scar…If you’ve watched the TV show, Revenge, let’s just say I sympathize with the protagonist, Amanda Clark.

In Backstage Wall Street, financial advisor and @ReformedBroker,  Joshua Brown, does the retail investor a huge service in this tell-all tome of hustling and hubris in the most powerful industry on Earth, financial services.

The author tells his story in four parts: The People, The Product, The Pitch, and The Murder Holes. I hope you can follow along with me as I review it here.

But, lest I forget, please get a copy of the book! Until my next post, good reading….

Mayor Bloomberg wants to send you to jail over a 17 oz. soda

http://www.sovereignman.com/news-feed/mayor-bloomberg-wants-to-send-you-to-jail-over-a-17-oz-soda/ just what this world needs: more 16 ounce cups!

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