Taking Stock from Creators Syndicate

Insurance Giant Humbled by Wall Street Greed for 10/08/2008

Wed, 08 Oct 2008 00:00:00 -0700

Dear Mr. Berko: I understand your explanation of how leverage of 30-to-1 was responsible for the collapse of Merrill Lynch and other brokerages that owned hundreds of billions of dollars of mortgages. And I understand why the Federal Reserve Board had to guarantee the solvency of some of these brokerages. But what I don't understand is why the Fed has to support AIG. This is an insurance compa ...

Updated: Wed Oct 08, 2008

Forget Foreign Markets and Head to the Sidelines for 10/08/2008

Wed, 08 Oct 2008 00:00:00 -0700

Dear Mr. Berko: I recently got a $92,600 windfall from selling farmland in Colorado and I want to invest it right away. I'm kind of scared to invest in our stock market now, even though one expert I read believes that prices are a bargain today and is recommending dozens of stocks he feels are very undervalued. But some experts are telling me that the China market is hot because their economy i ...

Updated: Wed Oct 08, 2008

Kids Should Get Theirs Only After You Get Yours for 10/15/2008

Wed, 15 Oct 2008 00:00:00 -0700

Dear Mr. Berko: I am a 76-years-young woman and, over the last 15 years, have given nearly $600,000 to my children who needed this money at various times in their lives. Now I too need more money. My current income of $26,000 a year comes from three sources: an independent retirement account and an individual account, both at Dean Witter, that together total $275,000 and pay me $16,000 a year; ...

Updated: Wed Oct 15, 2008

Midas Wouldn't Touch These Gold-Clad Coins for 10/15/2008

Wed, 15 Oct 2008 00:00:00 -0700

Dear Mr. Berko: I've been reading this enclosed advertising in USA Today for a couple of months about the gold clad Presidential dollar coin. They are offering, on a first-come first-serve basis, all 72 state coins in special case sets for $225. I'm maxed out on my credit card so would use my daughter's credit card. I'm thinking of buying some 72-coin sets for $225 each and because the ...

Updated: Wed Oct 15, 2008

Time is Short for Circuit City for 10/15/2008

Wed, 15 Oct 2008 00:00:00 -0700

Dear Mr. Berko: I recently bought 3,000 shares of Circuit City at 90-cents a share as a speculation. If I made a mistake do you think I should sell the stock? And now that some of the dust seems to have settled in the market what do you think about the American consumer and the state of the American economy over the next few years? — D.L., Wilmington, N.C.

Dear D.L.: I've begun to ...

Updated: Wed Oct 15, 2008

Show No Interest in Credit Card Company for 10/22/2008

Wed, 22 Oct 2008 00:00:00 -0700

Dear Mr. Berko: I received an early retirement bonus from my employer and I'm thinking of putting $48,000 of it into the 7 percent, three-year notes of Advanta Corp. They also have a 9 percent, 10-year note that I'd consider. Please tell me what you think and whether I would be better off with the 9 percent notes or the 7 percent notes or if I should buy $24,000 of the 7 percent notes and $24,0 ...

Updated: Wed Oct 22, 2008

Take a Pass on Credit Card Company for 10/22/2008

Wed, 22 Oct 2008 00:00:00 -0700

Dear Mr. Berko: My 2003 SUV needs lots of body and repair work, so I need new wheels. I did some looking and found a great Chevy Tahoe for $42,000, but the dealer won't finance it even if I give him $500 cash and my trade-in. About 3 months ago the dealer was willing to take my trade-in and almost did it, but my wife lost her job and I thought the payments would have been too tight. Now I'm bac ...

Updated: Wed Oct 22, 2008

Pacific Rim Offers Scant Safety in This Storm for 10/22/2008

Wed, 22 Oct 2008 00:00:00 -0700

Dear Mr. Berko: I have $72,000 to invest. I know the U.S. stock market is the pits and was thinking of putting this money in the stock markets of the Australia the Pacific Rim countries that seem to be unaffected by the trials and tribulations of our economy. I have a friend who works for Merrill Lynch in Australia and he says: "Come on down." What do you think? - D.L., Fort Walton, B ...

Updated: Wed Oct 22, 2008

School Spending Fails to Make the Grade for 10/29/2008

Wed, 29 Oct 2008 00:00:00 -0700

Dear Mr. Berko: This year, the Florida Legislature passed a $70 billion budget and $22 billion of that will be spent on public education. Ten years ago public education spending cost $10.5 billion. That's twice as much and our schools (especially my alma mater the University of Florida) are not getting twice as good. In fact, many of us would say that the quality of education is really twice as ...

Updated: Wed Oct 29, 2008

Intelligence Faulty About Iraq Stocks for 10/29/2008

Wed, 29 Oct 2008 00:00:00 -0700

Dear Mr. Berko: My Merrill Lynch stockbroker has two foreign contacts in the Middle East and he and they believe that there is a tremendous opportunity to make money by buying stocks on the Iraq Stock Exchange. He says it's increased by 25 percent this year because the country is on the verge of an economic expansion that will be felt throughout Iraq and the Middle East. He wants me to invest $ ...

Updated: Wed Oct 29, 2008

Hedge Funds Earning Their Just Due for 10/29/2008

Wed, 29 Oct 2008 00:00:00 -0700

Dear Mr. Berko: There's big trouble in the $3 trillion hedge fund industry. Many have lost massive amounts of money because the market has gone against them and thousands of hedge fund employees are losing their jobs. The Hedge Fund Sector is a very vital sector of our economy and I've not heard a word from the Department of Treasury or the Federal Reserve about helping the hedge fund industry ...

Updated: Wed Oct 29, 2008

Not All Municipal Bonds are Built the Same for 11/05/2008

Wed, 05 Nov 2008 00:00:00 -0800

Dear Mr. Berko: I'm thinking about building a municipal bond portfolio. I'll be retiring next year and probably have more current income and money than I'll ever need. I'm not bragging. I just had more luck than any man is supposed to have and I'm thankful for it. So I contribute a lot of money each year to various charities and do it quietly. Now I want to invest a lot of money in tax-free bon ...

Updated: Wed Nov 05, 2008

Verizon Is a Better Call for 11/05/2008

Wed, 05 Nov 2008 00:00:00 -0800

Dear Mr. Berko: I'm considering the purchase of either 200 shares of MetroPCS Communications Inc. or 100 shares of Verizon Communications Inc. I'm 45 and this investment will be in my Roth independent retirement account, which you advised me to set up several years ago because the money won't be taxed when it comes out. Anyhow, I need your help on making this selection. MetroPCS seems to be a m ...

Updated: Wed Nov 05, 2008

Finding a Scapegoat No Solution to Our Economic Mess for 11/05/2008

Wed, 05 Nov 2008 00:00:00 -0800

Dear Mr. Berko: I bought 225 shares of Fannie Mae with $3,200 from my independent retirement account because you said it was good and that it had an implied guarantee from the government. Then it went bankrupt. How could you be so stupid and dumb? Now I could lose my home because I just lost my job. Every day when I listen to the news, I think we may be going to hell in a handbasket and I'm sca ...

Updated: Wed Nov 05, 2008

Greenspan Saw Bagels Without Holes for 11/12/2008

Wed, 12 Nov 2008 00:00:00 -0800

Dear Mr. Berko: Can you explain how the big Wall Street firms used leverage, why they used it, and why it was believed to be so profitable? Please explain it in simple English so I can understand. And can you explain how these firms like Merrill Lynch, Lehman Bros. and Bear Stearns got beaten up so badly when the mortgage bonds they owned fell in market value? I know why you call Alan Greenspan ...

Updated: Wed Nov 12, 2008

Broker's Advice Wired Wrong for 11/12/2008

Wed, 12 Nov 2008 00:00:00 -0800

Dear Mr. Berko: My broker has recommended that I buy 1,500 shares of 99-Cents Only Stores and 300 shares of Portfolio Recovery Associates and wants me to sell 100 shares of RalCorp Holdings, 100 shares of Johnson & Johnson and 300 shares of General Electric to pay for the purchase. Please advise. — E.D.: Wilmington, N.C.

Dear E.D.: I think 80 percent of your broker's terminals ...

Updated: Wed Nov 12, 2008

Time to Show Interest In Bank Issues for 11/12/2008

Wed, 12 Nov 2008 00:00:00 -0800

Dear Mr. Berko: I have $38,000 to invest specifically for income. This money represents a certificate of deposit that just came due and I'm willing to take some risks to get a higher return than 4 percent. So I would appreciate your recommendation of several investments that can give me a much higher return. I don't want junk bonds or foreign bonds, and I want to keep my money here in the Unite ...

Updated: Wed Nov 12, 2008

Too Late for a Bite of Apple for 11/19/2008

Wed, 19 Nov 2008 00:00:00 -0800

Dear Mr. Berko: In January 2008 I bought 100 shares of Apple at $197 because I thought it might run to $300 and split. I thought its new products would take the world by storm and earnings would go sky high. I was right about everything except the price. The stock is now $107 and I'm out $9,000. So I'd like to know if you think I should buy another 100 shares at this price, which reduces my bas ...

Updated: Wed Nov 19, 2008

No Time to Bet the Housing Market for 11/19/2008

Wed, 19 Nov 2008 00:00:00 -0800

Dear Mr. Berko: I think the housing market will recover in the next 12 months. For that reason, I would invest in 100 shares of Hovnanian Enterprises Inc., 100 shares of Lennar Corp. and 100 shares of D. R. Horton Inc. I would buy them because the economist for The National Association of Realtors — I don't recall his name — recently told the public that the housing market is in the ...

Updated: Wed Nov 19, 2008

Drug Maker Has the Right Prescription for 11/19/2008

Wed, 19 Nov 2008 00:00:00 -0800

Dear Mr. Berko: I know that you've always liked the drug companies because you always write positive articles about them and because your son is a doctor. So I'm reluctant to ask your opinion on Teva Pharmaceutical, which was recommended to me by my pharmacist. He says he just bought 140 shares of Teva and he gave me lots of sound reasons why I should buy it too. I won't ask my broker because n ...

Updated: Wed Nov 19, 2008