It's no secret that: 1. every decline in asset values pulls billions of dollars out of capital in the financial system, 2. every drop in the capital of the financial system creates a new impediment to lending, and
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In light of the tragic Ponzi scheme perpetrated by Bernard Madoff, it's time to revisit the wisdom of investments in which each individual's funds are "pooled" into oceans of cash that slosh hither and yon with nary a control by the original investors.
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Treasury Secretary Henry Paulson hopes to rescue the U.S. financial system by injecting $1.3 trillion into buying up toxic assets and taking over firms like AIG, Fannie Mae and Freddie Mac.
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There is a fundamental difference between the speculation that's been so roundly attacked in the stock and commodity markets and real estate speculation.
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I have worked as a process analyst in high technology for the past 25 years, developing software and advising companies on how to improve their operations through process re-engineering.
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The stock-market crash of Martin Luther King Day and the following morning reduced the value of corporations worldwide by an average of about 5 percent, with America's Dow Jones Industrial components alone losing about $150 billion in aggregate market cap.
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I had a recent discussion with an advisor to prospective investors in a venture I am getting established. Some of what he said should be of interest to any investor who wants to make money in the current environment. But first some parameters:
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In 1929, America's banks and stock brokers converted a recession into a mighty Depression by the way they reacted to a big drop in the stock market.
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Apollo CEO is not a member of any groups.
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