BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Five views of venture capital dry powder]]>http://www.bloggingstocks.com/2009/10/18/five-views-of-venture-capital-dry-powder/http://www.bloggingstocks.com/2009/10/18/five-views-of-venture-capital-dry-powder/http://www.bloggingstocks.com/2009/10/18/five-views-of-venture-capital-dry-powder/#commentsFiled under:

The amount of investable assets available to venture capital funds has basically been a growth story since 2003. Dry powder slipped 7% in 2004 and 10% in 2008, but increased in every other year over this period.

Now, the dry powder number sits at $155 billion, according to alternative investment research firm Preqin, just off its December 2007 peak of $160 billion. The big number, however, masks a wide range of market situations for venture capital funds. Dry powder levels vary by strategy and region. To get a sense of what's going on behind the scenes, check out the five facts below about venture capital dry powder.

Continue reading Five views of venture capital dry powder

Five views of venture capital dry powder originally appeared on BloggingStocks on Sun, 18 Oct 2009 13:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>assetsbuyout financingbuyout fundsexpansionpreqinPrequinprivate equityventure capitalventure capitalistsventure financialventure fundingSun, 18 Oct 2009 13:40:00 EST<![CDATA[Way Off Wall Street: The public responds to the Madoff scandal]]>http://www.bloggingstocks.com/2009/01/06/way-off-wall-street-the-public-responds-to-the-madoff-scandal/http://www.bloggingstocks.com/2009/01/06/way-off-wall-street-the-public-responds-to-the-madoff-scandal/http://www.bloggingstocks.com/2009/01/06/way-off-wall-street-the-public-responds-to-the-madoff-scandal/#commentsFiled under: , ,

G.E.SattlerWelcome to Way Off Wall Street, a column dedicated to providing Main Street opinions on topics of interest to investors. Each installment highlights the views of Americans who are far removed from the canyons of Wall Street -- and who often see things more clearly as a result.

After reading nearly 400 publicly posted reader comments regarding the Bernard Madoff Ponzi scandal, I believe that I may have a good feel for the grass roots mood on the subject. In a nutshell, the average American internet crawler is thoroughly disgusted with our financial system and its regulatory agencies. They are fed up, strung out and unequivocally irate. As for Bernard Madoff himself, the overwhelming assertion is that he should be strung up immediately. That sentiment is not meant in a figurative sense either. People want Bernard Madoff publicly hanged, and they want it done with much fanfare in a place such as New York City's Central Park. Yes, this sounds rather coarse. Perhaps it's even uncivilized, but as the internet is my witness, this is what people are saying.

Very few of the comments I have read indicate a feeling that Madoff's investors simply got what they deserved. I did, however, read many statements regarding the fact that high level greed obviously forced many large eggs into one very questionable basket. I myself have not much pity for those investors who lost "everything" to Madoff's twisted dealings. It is my opinion that if investors don't have the sense to diversify, and thereby somewhat protect themselves, they are not very deserving of much wealth. Even my own paltry savings reside in no less than five separate accounts, however paltry.

Continue reading Way Off Wall Street: The public responds to the Madoff scandal

Way Off Wall Street: The public responds to the Madoff scandal originally appeared on BloggingStocks on Tue, 06 Jan 2009 19:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>assetsBernard MadoffBernardMadoffcrimemadoffmutual fundMutualFundPonzipunishmentSECTue, 06 Jan 2009 19:00:00 EST<![CDATA[No. 8: Rich people know the difference between an appreciating and a depreciating asset]]>http://www.bloggingstocks.com/2008/12/05/no-8-rich-people-know-the-difference-between-an-appreciating-a/http://www.bloggingstocks.com/2008/12/05/no-8-rich-people-know-the-difference-between-an-appreciating-a/http://www.bloggingstocks.com/2008/12/05/no-8-rich-people-know-the-difference-between-an-appreciating-a/#commentsFiled under: , ,

This post is part of a series where personal finance expert Dan Solin looks at money secrets that help the rich stay rich. See more.

Rich people own both appreciating and depreciating assets. They know the difference.

Depreciating assets decline in value.

Appreciating assets increase in value.

It is the appreciating assets that permit rich people to purchase the depreciating assets, and not the other way around.

Rich people get rich by buying assets that increase in value slowly over time. They build up businesses. The buy and hold real estate.

They invest in the stock market differently than most individual investors. They determine their asset allocation and buy and hold a globally diversified portfolio of low-cost stock and bond index funds.

Continue reading No. 8: Rich people know the difference between an appreciating and a depreciating asset

No. 8: Rich people know the difference between an appreciating and a depreciating asset originally appeared on BloggingStocks on Fri, 05 Dec 2008 06:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>assetselectronicsjewelryFri, 05 Dec 2008 06:30:00 EST<![CDATA[Easy credit and rising home prices are not engines of economic growth]]>http://www.bloggingstocks.com/2008/09/15/easy-credit-and-rising-home-prices-are-not-engines-of-economic-g/http://www.bloggingstocks.com/2008/09/15/easy-credit-and-rising-home-prices-are-not-engines-of-economic-g/http://www.bloggingstocks.com/2008/09/15/easy-credit-and-rising-home-prices-are-not-engines-of-economic-g/#commentsFiled under: , , , , , ,

Many economists, analysts, traders and others agree it's way too soon to assess the impact of this latest, mortgage-related jolt on the stock and bond markets, and on the U.S. and global economies.

There are too many moving parts, and too many unknowns to form meaningful, enduring conclusions. The reason? The financial world order we see today may not, in fact, be the financial world order we see tomorrow. The Dow was down about 256 points to 11,165 early Monday afternoon.

But there is one conclusion U.S. investors / citizens can form regarding the U.S. economy, so says an economist: expanding credit and rising home prices, in and of themselves, are not engines of economic growth.

Now, everyone's recognizing 'the obvious'

"We have now entered the age of recognizing the obvious," economist Richard Felson said. "Almost everyone knew that the booming housing market would slow down as soon as all potential buyers had been tapped and as the American economy slowed. But few foresaw the impact the slowdown would have on mortgage bonds, their owners, and the financial system. We now have to rebuild the American credit market, and global credit market, as well, to a degree. It will be a major task."

The primary source of all the above, in Felson's interpretation? Structural problems in the U.S. economy, primarily a lack of jobs, or low job growth, he said.

"For the better part of four years, America went blithely along, confident that the fundamentals of the [U.S.] economy were sound. Yet all the while, job growth and its companion, rising median wages, were inadequate. But they were ignored because corporate earnings were up and home values were rising. But it was a building constructed on quicksand," Felson said. "The boom was not sustainable. The [U.S.] economy did not have growth engines in place for sustainable growth. "

Continue reading Easy credit and rising home prices are not engines of economic growth

Easy credit and rising home prices are not engines of economic growth originally appeared on BloggingStocks on Mon, 15 Sep 2008 14:19:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>091508assetsFedforeclosuresgdphousing bubblehousing sectorinthenewsinvestmentjob growthjobsmedian home pricesmedian incomemortgage backed securitiesmortgagesU..S. TreasuryU.S. economyU.S. Federal ReserveMon, 15 Sep 2008 14:19:00 EST<![CDATA[Is U.S.'s economic slump mirroring Japan's late-1980s slump?]]>http://www.bloggingstocks.com/2008/09/08/is-u-s-s-economic-slump-mirroring-japans-late-1980s-slump/http://www.bloggingstocks.com/2008/09/08/is-u-s-s-economic-slump-mirroring-japans-late-1980s-slump/http://www.bloggingstocks.com/2008/09/08/is-u-s-s-economic-slump-mirroring-japans-late-1980s-slump/#commentsFiled under: , , , ,

New York Times columnist Paul Krugman, a person who freely and proudly states his liberal economic outlook, (See Krugman's book: The Conscience of a Liberal) and his disagreement with the Bush Administration's economic conservatism, once again reminds investors/readers that the U.S. financial crisis is resembling that of Japan's in the late 1980s.

Investors/readers will recall that in the late 1980s, fanned by easily obtainable credit, commercial and residential real estate prices skyrocketed in Japan, with investors and speculators continuing to bid-up prices, despite the fact that numerous indicators signaled that prices were astronomically overvalued. Further, Japan's real estate boom occurred during only a modest increase in household formation and amid an aging population. What followed was inevitable: the bubble burst, albeit slowly, and the correction led to a decade-long economic slump for Japan.

Fast-forward to the United States, 2003-2007: intoxicating rises in home prices, fueled by 'extremely creative' mortgage plans, and a belief that out-sized gains would not end soon. Yet all the while, job growth remained modest at best, with falling real wages in many job categories. The U.S. economy was growing, but the growth was not sustainable because it was rooted in a bubble - - a real estate bubble - - not in an increase in the nation's productive capacity and good jobs, so says economist Glen Langan. Or as Langan called it, the U.S. economy in 2003-2007 was, largely, "an asset appreciation economy."

Continue reading Is U.S.'s economic slump mirroring Japan's late-1980s slump?

Is U.S.'s economic slump mirroring Japan's late-1980s slump? originally appeared on BloggingStocks on Mon, 08 Sep 2008 14:24:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>assetsBernankefeaturedFedforeclosuresgdphousing bubbleinterest ratesJapanjobsmedian home pricesmortgagesPaul KrugmanPaulsonU.S. economyU.S. Federal ReserveU.S. Treasuryunemployment rateMon, 08 Sep 2008 14:24:00 EST<![CDATA[Housing sector slump seen decreasing some Baby Boomers' nest eggs]]>http://www.bloggingstocks.com/2008/06/26/housing-sector-slump-seen-decreasing-some-baby-boomers-nest-egg/http://www.bloggingstocks.com/2008/06/26/housing-sector-slump-seen-decreasing-some-baby-boomers-nest-egg/http://www.bloggingstocks.com/2008/06/26/housing-sector-slump-seen-decreasing-some-baby-boomers-nest-egg/#commentsFiled under: , , ,

Baby Boomers, in some cases already facing the 'double demands' of caring for kids and aging parents, have another economic concern, at least for the next phase of the housing cycle: substantially lower household net worth, as a result of declining home prices, so says a Washington-based think tank.

The Center for Economic and Policy Research says the median households head by those ages 45-54 in 2009 will have about 25% less wealth than the similar demographic in 2004. In dollars, household wealth will decline to $113,268 from $150,113.

Further, the above assume March 2008's housing prices hold for 2009: if they don't and prices fall another 10%, household net worth declines by about 35%; 20%, by about 45%, the CEPR said.

Economist Peter Dawson, who is not affiliated with the CEPR or the study, told BloggingStocks part of the problem was "unreasonable expectations regarding home appreciation rates, the belief that 10-15% real estate gains would continue for decades. It got too many adults out of the traditional saving and investing mode and into thinking their home would serve as a major return on investment." Most homes do appreciate, and they can help build wealth, Dawson said, but homeowners must think in terms of a 6-9% average, annual appreciation rate, "which is a more-realistic return for residential dwellings."

Continue reading Housing sector slump seen decreasing some Baby Boomers' nest eggs

Housing sector slump seen decreasing some Baby Boomers' nest eggs originally appeared on BloggingStocks on Thu, 26 Jun 2008 12:44:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>assetsbaby boomersbondsCenter for Economic and Policy Researcestateshousinghousing sectorinthenewsmedian home pricesMedicarepersonal financeSocial Securitystockswealth managementThu, 26 Jun 2008 12:44:00 EST<![CDATA[United States government should nationalize some assets too]]>http://www.bloggingstocks.com/2008/02/14/united-states-government-should-nationalize-pdvsa-assets/http://www.bloggingstocks.com/2008/02/14/united-states-government-should-nationalize-pdvsa-assets/http://www.bloggingstocks.com/2008/02/14/united-states-government-should-nationalize-pdvsa-assets/#commentsFiled under: , , , , , , , ,

exxon logoAs I fully expected, I've received a fair amount of comments on a recent blog post in which I proudly took a stance in favor of Exxon's court backed demand that the government of Hugo Chavez immediately ante up for the oil infrastructure which the country he leads has stolen from Exxon Mobil Corp. (NYSE: XOM). Most of the commentary was lucid and well thought out on both sides of the argument, but one particular commenter really piqued my sense of intrigue.

The comment I'm referring to was an assertion that what the Chavez government has done by seizing the Cerro-Negro oil development is legal. For the purpose of this rebuttal, and because I am near totally ignorant of international law, I'm going to assume that comment was correct. Now, here comes the Devil's Advocate:

Continue reading United States government should nationalize some assets too

United States government should nationalize some assets too originally appeared on BloggingStocks on Thu, 14 Feb 2008 17:26:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>aircraft carrierAircraftCarrierassetsbuyoutCerro-NegroConocoPhillipsexxonfeaturedgovernmentHugo-ChavezimportnationalizeRussiaxomThu, 14 Feb 2008 17:26:00 EST<![CDATA[Prosper.com puts private lenders in touch with borrowers]]>http://www.bloggingstocks.com/2008/02/11/prosper-com-puts-private-lenders-in-touch-with-borrowers/http://www.bloggingstocks.com/2008/02/11/prosper-com-puts-private-lenders-in-touch-with-borrowers/http://www.bloggingstocks.com/2008/02/11/prosper-com-puts-private-lenders-in-touch-with-borrowers/#commentsFiled under: , , , , ,

Prosper.com logoProsper.com is one of the most amazing things I have ever seen and a grand statement of the pioneering spirit that keeps the wheels of prosperity in motion. At Prosper.com individual private investors are able to assist in serving the needs of potential borrowers via a bidding process to finance a wide variety of loan requests.

It works like this: First you register for the service, which the site says is fast, easy and free. Then, you create a loan listing that states how much you want to borrow and the interest rate you are willing to pay. Potential lenders can begin bidding on your loan request as soon as your listing is created. As lenders compete to finance your loan, the interest rate can become more favorable to you. After your listing closes, if you have successful bids, apparently the funds are then deposited in your account. I believe Prosper.com acts as the intermediary for these deposits. Finally, fixed monthly payments are then automatically withdrawn from your account. Prosper.com claims that there are no hidden fees and that the loan can be paid off early without penalty.

I can't actually endorse this service because I have no personal experience with it but it sounds extremely interesting, and the site appears to be for real. I'd love to get some feedback from people who have successfully used this service. If it's as valid as it appears to be, we just might have a new era of personal financing coming over the horizon.

Prosper.com puts private lenders in touch with borrowers originally appeared on BloggingStocks on Mon, 11 Feb 2008 17:58:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>assetsborrowingconsolidateinvestorlendingloanprivateprosper.comMon, 11 Feb 2008 17:58:00 EST<![CDATA[Inflation or recession? Give us your perspective]]>http://www.bloggingstocks.com/2008/02/11/inflation-or-recession-give-us-your-perspective/http://www.bloggingstocks.com/2008/02/11/inflation-or-recession-give-us-your-perspective/http://www.bloggingstocks.com/2008/02/11/inflation-or-recession-give-us-your-perspective/#commentsFiled under: , , , , , , ,

Inflation: "An increase in the amount of money and credit in relation to the supply of goods and services; An increase of the general price level; An excessive or persistent increase in wages and costs causing a decline in purchasing power."

Recession: "A temporary falling off of business activity during a period when such activity has been generally increasing."

(Source: Websters New World Dictionary, Third College Edition)

Rather than an opinion piece, which is what I generally write, this little snippet is meant more as a discussion generator than a statement of my own economic view. I earnestly invite our readers to weigh in on the matter. Inflation or recession, are we now experiencing either or both?

Continue reading Inflation or recession? Give us your perspective

Inflation or recession? Give us your perspective originally appeared on BloggingStocks on Mon, 11 Feb 2008 15:03:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>assetsbankingbudgetbusinesscommoditiesconsumer price indexConsumerPriceIndexcreditdollarexportfederal reserveFederalReserveimportincomeinflationloanrecessionsavingtreasurywalletpopyuanMon, 11 Feb 2008 15:03:00 EST<![CDATA[Smart money? University endowments see opportunity in sub-prime]]>http://www.bloggingstocks.com/2007/06/22/smart-money-university-endowments-see-opportunity-in-sub-prime/http://www.bloggingstocks.com/2007/06/22/smart-money-university-endowments-see-opportunity-in-sub-prime/http://www.bloggingstocks.com/2007/06/22/smart-money-university-endowments-see-opportunity-in-sub-prime/#commentsFiled under: , , , , ,

The sub-prime mortgage market is in shambles. But Wall Street, making every effort to rid itself of risky mortgage-backed securities, has found a new group of potential buyers -- university endowments.

The Wall Street Journal reported (subscription required) that university endowments have started to dip into the risky world of buying sub-prime mortgage debt. An opportunity recently stemmed from two money-losing hedge funds at Bear Stearns (NYSE: BSC), and one that required loans from various banks to halt the seizure of the fund. Merrill Lynch & Co. (NYSE: MER) a lender to these funds, auctioned some assets it had seized from Bear for $850 million. However, the auction sold for less than half that amount, according to people familiar with the matter.

Lou Morrell, vice president for investments and treasurer at Wake Forest University in Winston-Salem, N.C. is quoted as saying he sees value in those auctions. "There's an opportunity out there to buy these loans at a discount," he told the WSJ, and that "will be popular with a lot of endowments out there." The university is placing $25 million of its $1.2 billion endowment with a hedge fund to invest in sub-prime mortgages.

They're not the only ones dealing in big risk either.

Continue reading Smart money? University endowments see opportunity in sub-prime

Smart money? University endowments see opportunity in sub-prime originally appeared on BloggingStocks on Fri, 22 Jun 2007 17:15:00 EST. Please see our terms for use of feeds.

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Private equity firms, hedge funds, and investment banks are always looking for hidden values in public shares. It is no accident that an investor like Carl Icahn buys into Motorola, Inc. (NYSE:MOT). He thinks the company's intrinsic value is well above the stock price.

24/7 Wall St. has begun to take a look at the break-up values of a number of large cap companies. Firms with market caps of over $100 billion have been kept off the list because they are likely to be too large for private equity buy-outs. But the companies on this list may well end up as targets. The full explanation of the methodology is here.

Some of the notable public firms with differences between the break-up value and current stock price include:

Continue reading Stock prices re-examined: Break-up values for Apple, Disney, eBay, and more

Stock prices re-examined: Break-up values for Apple, Disney, eBay, and more originally appeared on BloggingStocks on Wed, 31 Jan 2007 13:47:00 EST. Please see our terms for use of feeds.

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