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Small Business Boomers

Archive for the ‘Finance’ Category

September 24th, 2008

Is Small Business Optimism UP? or DOWN?

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There is a strange phenomenon going on right now.  Some studies are indicating that small business optimism is DOWN.
Other studies are showing small business optimism as INCREASING, as the National Federation of Independent Business  business optimism index increased 2.9 points in August.
How odd.   Some thoughts on reasons for this discrepancy:
1.  […]

By Jean -- 0 comments

September 23rd, 2008

The “Good News” about the current financial debacle - Toni Braxton tops the news

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In Business Week’s “Big Money” article, columnist Michael Lewis says we should look on the bright side of the current financial meltdown. His article is tongue-in-cheek, but he is dead on with his analysis.
A knowledgeable friend said to me today, “The difference between what’s happening today and what happened in 1929 […]

By Jean -- 0 comments

September 18th, 2008

Lehman Brothers, AIG, and the Wall Street “Mess” - What other b5media business bloggers are saying

I have been wandering around the b5 media’s Business Channel to see what other bloggers are saying about the financial troubles on Wall Street this week.  Here’s what I found:
Kelly, over at TaxGirl, gives her opinion on the AIG Buyout and she repors on what candidates Obama and McCain have to say about the buyout.
Talk […]

By Jean -- 0 comments

September 18th, 2008

The Wall Street Mess Culprit (as we suspected) is SPECULATION

First, a definition:  Speculation is the process of taking large risks, gambling, with the hope of winning big.
Miranda Marquit wrote a brilliant blog post about CDS’s as the culprit behind the current financial mess.  But these CDS’s (Credit Default Swaps)  are just the vehicle.  The real culprit is SPECULATION.  Here is how it has played […]

By Jean -- 3 comments

September 13th, 2008

Financial Principle #2 - Think Long Term

Most of us have difficulty doing long-term planning, but it’s vital for your investment strategy and for your business to think about the long-term.
Long-term thinking for Businesses
Many businesses, for example, think only about getting through the current stage of their business, or they are focused only solving the immediate problems they face (like making […]

By Jean -- 1 comment

September 8th, 2008

Financial Principles for Baby Boomers: Avoid Learning the Hard Way

Over the years, as I have taught business, investing, and finance classes, I’ve always adhered to one solid principle:  “Do as I say, not as I do.”  Time after time, I haven’t followed my own advice.  I bought when I should have sold and sold when I should have hung on.  I spent money on […]

By Jean -- 1 comment

September 4th, 2008

The “boiled frog” theory of gas prices

Have you heard the story of the boiled frog?  The didactic tale tells of putting a frog in water and gradually, oh so slowly, turning up the heat, until, in the end, the frog is boiled.  And the frog has made no attempt to jump out.  The “moral” of the fable is, from what I’ve […]

By Jean -- 0 comments

August 31st, 2008

Your credit line might be frozen - What you need to know

The newest “thing” in the sub-prime loan crisis is this: Banks now are freezing credit lines (called HELOC’s - Home Equity Lines of Credit) because the amount borrowed (including both the HELOC and the mortgage) is exceeding the value of the home.
For example, CBS reports that Countrywide, one of the largest U.S. […]

By Jean -- 0 comments

August 13th, 2008

The power of compound interest - don’t cash in your 401-k to fund your business startup

I found a good article that follows up on my recent post about using an IRA to fund your business startup.
This article points out what you’ll lose if you cash out before 59 1/2. It also is another dramatic example of the power of compound interest. I teach this subject to Millenials […]

By Jean -- 0 comments

August 13th, 2008

Credit Tightens - Good! Time to cure our credit addiction

Credit is tighter now than it has been in many years. According to Barrons, credit on home loans, business loans, and credit cards is getting more difficult to get. Too many people were getting cheap, easy credit and then wondering why they couldn’t pay their bills. Americans have become addicted to consumer […]

By Jean -- 0 comments