Articles

Friday was a scary day, especially in Europe. Near panic reigned throughout Europe, less so in the United States. The European Central Bank (ECB)hasn't pumped as much liquidity into the system since the day after September 11, 2001. The Fed, in contrast, added almost twice as much as normally, but contrary to the ECB held its powder dry. In the past, the Fed always acted more swiftly and decisively than the ECB. This change in behavior raises flags and suggests that things in Europe are worse that we suspected.

Netflix is and was a great idea and a great company. It changed the way we think about video and about home movies. It changed and enriched our lives. But, sadly, Netflix will in time become a footnote in history. Blockbuster just has too much money and is too aggressive a competitor and will increasingly beat Netflix out. A new acquisition undercuts Netflix still further and may be the final blow.

New York City has been in the lead in lots of initiatives that are models for other cities and that are both bold and imaginative. Working to come up with a system -- following London's model -- to restrict traffic is an excellent example. But following Mexico's experience (funded I think by the World Bank) of providing the poor with money for doing everything from passing school tests, to holding a job, to visiting a doctor is a step or two in a very foolish direction. A direction, indeed, guaranteed to be abused and to create more problems than it solves. And, what positive outcomes were to come from this will be very short term.

The democrats are the ones talking most about healthcare reform. Clinton, Edwards and Obama all have their "plans." Each is banking on huge savings to be reaped by preventive care -- testing, screening, non-smoking campaigns, check-ups and the like. They say all of these programs will keep many people from getting seriously ill and will save, in return, the huge costs of treating them. Lower health expenditures on the seriously ill will reduce costs generally, so the thinking goes, and make healthcare available to larger numbers. Sounds good, but misses a whole lot of costs and realities associated with preventive care. They need to go back and rethink all this.

Ever since TV came on the scene, people have expected radio to bow out. There have been times when it looked as though that was what would happen. But each time, radio has come back. Perhaps because we spend so much time in cars commuting to and from work and because radio talk shows have become increasingly popular, it may never go away, even though the technology is primitive by today’s standards.

No need to fear, incompetent WASPs continue to rule corporate America.

All the effort to pick stocks, to follow them closely day after day, to watch breathlessly as they go up (and mostly down), and to weigh strategies can tear one’s insides out – especially at times like this – and often lead to major disappointments. Why bother when Warren Buffett can do it for you, and win all or most of the time. His holding company, Berkshire Hathaway, just posted a 33% surge in net income for the second quarter. And, when the Dow dropped 285 points, Bershire shares lost .00001% of their value.

It sure didn't take long! All those warnings have come true, and all those promises from Apple.... All I got was "Hello World," not much but the beginning of much more, I am sure.

The best source of organ donors, healthy people who die unexpectedly, has always been motorcycle riders. Ask any transplant surgeon. While fatalities from car accidents have declined dramatically in recent years, thanks to air bags and other safety technologies, fatalities among motorcycle riders actually rose some 5% (almost 5,000 people) last year. And, the situation is getting worse as older people join the ranks of the 20 to 30 year olds and as helmet use becomes a thing of the past. The sad truth is that organ donors are more plentiful than ever before thanks to these trends.

Three new web sites begin to turn the tables on the airlines. While there have been sites for some time to help find less expensive flights (with mixed results), now there is a new breed of site to help gauge when and when not to buy a ticket, to assist in finding business seats at economy prices, and to pay the difference if fares drop.

Buying high and selling higher, and selling at the first sign of weakness are the cornerstones of Momentum Investing. It is not for everyone, but people who are sensitive to herd behavior and who have the time and skills to watch stocks like a hawk can make tons of money. It is a seductive strategy that flies in the face of “buy low and sell high.�

I am not a cardiologist. Just speaking for the millions of individual investors who have been in the market during ups and downs, and who – over time – have put more and more of their assets into equities. These are the folks who enjoy taking risks, but not off-the-wall ones. They are also the ones who are the best candidates for heart attacks on really bad days.

Why are Americans fascinated by CNBC's Jim Cramer, Jeff Macke and Pete Najarian and what are they telling me to do now?