Warren Buffett's Rules for the Average American

Warren Buffett's Top Three Investment Rules for the Average American - CNBC.com

Warren Buffett isn't shy about giving advice. If he hadn't gone into the investing business, he could well have made teaching his profession.

Now that he's the world's greatest living investor, there are plenty of pupils anxious to attend class.

In a taped interview, Bianna Golodryga asks Buffett for his "top three pieces of advice for average Americans who want to grow their savings and keep their money safe."

In this venue, there's no mention of intrinsic values, durable competitive advantages, or even buy-and-hold.

Buffett's response:

1. If it seems too good to be true, it probably is.

2. Always look at how much the other guy is making when he is trying to sell you something.

3. Stay away from leverage. Nobody ever goes broke that doesn't owe money.

Buffett also finds important life and investing lessons in his favorite game:

"In bridge, everything anybody does or doesn't do, you're drawing inferences from, including your partner and your opponents. You're working with a partner. If you don't work well with partners you're not going to have a winning bridge team over time. And everything you've learned from the past has some utility on the next hand you play. The next hand, you've never played it before and you'll never play it again in your life. But on the other hand, the problems you've solved in the past are useful in solving the problems there. And you have to keep paying attention all the time. You can't coast."

And while Buffett doesn't think that everyone should necessarily get a college degree, he does strongly believe in the value of learning, as any good teacher would.

"Generally speaking, investing in yourself is the best thing you can do. Anything that improves your own talents. Nobody can take it away from you. They can run up huge deficits, the dollar can become worth far less, you can have all kinds of things happen. But if you've got talent yourself, and you maximize your talent, you've got a terrific asset."

Bull kills man during Spain's annual Pamplona run | U.S. | Reuters

Bull kills man during Spain's annual Pamplona run
| U.S.
| ReutersWho could have imagined this? What a shock!

PAMPLONA, Spain (Reuters) - A bull gored a man to death on Friday as he took part in the traditional Running of the Bulls fiesta in the Spanish city of Pamplona, regional government authorities said.

Daniel Jimeno, a 27 year-old Spaniard, was gored in the neck after one of the bulls veered into a group of runners, a Navarre regional government official told reporters.

Television showed a bull flipping a man dressed in white trousers and a green shirt and then goring him as he lay curled on the ground while fellow runners tried to distract the animal by pulling on its tail and hitting it with sticks."

Barge Runs Aground on Columbia River - OregonLive.com

Barge Runs Aground on Columbia River - OregonLive.com:

Added by The Oregonian on July 9, 2009 at 7:00 PM

Just off of where the Hood River empties into the Columbia River is this Tidewater barge that is stuck right in the middle of the Columbia River. The white marker in the middle says 'Steep Drop Off' to warn swimmers and sailboarders. It's cargo? How about - one million gallons of gasoline!!

Benjamin Brink/The Oregonian"

Nobama - "World Has Avoided Economic Disaster"

World Has Avoided Economic Disaster, Obama Says - Economy * US * News * Story - CNBC.com:

"Lasting worldwide recovery 'is still a ways off,' ["a ways off"? Nobody's got a CLUE as to when or how the economy will turn around!] President Barack Obama declared Friday, but he also said at the conclusion of a global summit that a disastrous economic collapse apparently has been averted. ["economic collapse averted? In the past 12 months the Dow Jones has gone from 11,994 to a low of 6440. My math says that's almost a 50% drop in the largest indicator we have of the US stock market. Unemployment has DOUBLED. What then IS a collapse?]

Obama said world leaders had taken significant measures to address economic, environmental and global security issues. [They've done nothing but take "significant measures" to enrich themselves and their friends. What's he done to address global security in a positive direction? Environmental issues are ALL talk and we can't afford any of it as a country.]

'Reckless actions by a few ["A FEW"? He means the MILLIONS of stupid people who took out ridiculous mortgages and loans without reading the fine print, then defaulting on their legal contracts] have fueled a recession that spans the globe,' Obama said of the meltdown that began in the United States with a tumble in housing prices and drastic slowing of business lending. The downturn now threatens superpowers and emerging nations alike.

Obama urged national leaders to unite behind a global recovery plan [meaning a new monetary standard OTHER than the dollar, which would make China, Russia and France happy] that includes stricter financial regulation and sustained stimulus spending [stimulus package #2 coming up? 2 out of how many total planned?]."

A Storm's on the way Vern - git inta the basement NOW!

AccuWeather.com - Weather News

A potent storm will unleash powerful thunderstorms across portions of the Midwest through Friday. The severe weather may not only cause damage but will also threaten lives.

Thunderstorms become more extensive and powerful this evening. The storms will stretch from northwestern Ontario to Iowa and Nebraska. This includes the cities of Omaha, Des Moines and Eau Claire.



The thunderstorms can also roll through Kansas City, Minneapolis and Marquette. Some locations may be hit by more than one storm.

The strongest thunderstorms will produce wind and hail that could damage vehicles, crops and buildings. The winds may also down trees and overturn semi-trucks on Interstates 29, 35, 70, 80, 90 and 94. Blinding downpours will pose a danger to all motorists and could lead to dangerous flash flooding.


Some tornadoes may also touch down and cause destruction. The tornado threat will be greatest over eastern Nebraska, southern Minnesota and Iowa.

The severe weather will shift and endanger lives and property from Missouri to the central Great Lakes on Friday. Springfield (both in Missouri and Illinois), Chicago, Kalamazoo and Detroit lie in the threat zone. The eastern Great Lakes and Northeast's interior will be targeted on Saturday.

Gallop Poll in the Left Sidebar

See that poll about Obama's approval rating in the left sidebar of my blog? What happens when those two lines cross?

Jobless claims drop, data skewed by auto jobs | Reuters

Jobless claims drop, data skewed by auto jobs
| Reuters

WASHINGTON (Reuters) - The number of U.S. workers filing new claims for jobless benefits fell to the lowest level since January, but the seasonally adjusted data was distorted by an unusual pattern of layoffs in the automotive industry.

Economists watch the labor market closely for signs that the impact of the most severe recession in decades is fading, and worry that failure to curb unemployment that has spiked to 9.5 percent will thwart official efforts to stimulate growth.

Lots of talk about rolling out a SECOND stimulus. Look out!

The Labor Department tries to anticipate seasonal changes in jobless claims, such as the auto industry usually closing plants in July to retool for the new model year. However, the bankruptcies of U.S. automakers has distorted the normal pattern of plant closings.

Major U.S. stock indexes rose on the jobs data, but later turned mixed. U.S. government debt prices and the dollar were lower.

Lower govt debt prices and dollar - NOT good.

A separate report on Thursday showed wholesale inventories declined again in May, but at a slower pace than in the previous month, keeping alive hopes for a rebound in stock-building that could aid growth in the remainder of 2009.

Economists say large inventory liquidations will reduce economic growth in the second quarter, but lay the foundation for a recovery as firms replenish depleted stocks in anticipation that sales will pick up.

However, weak June retail sales reports from a number of big stores on Thursday signaled that shoppers remain cautious. The state of the jobs market will be a crucial factor in determining what happens to consumer demand.

So, existing inventories being liquidated at lower prices (translation: lower profit margin for stores.) Continued weak sales. Suppliers laying people off, NOT manufacturing new inventory in fear they'll get stuck holding it all. Then what? Supply-Demand? Prices go up, while unemployment remains high, manufacturers afraid to produce more widgets. That's like inflation, right? Opens the door for China to flood our market with their junk, increasing our govt debt, sending more dollars OUT of the country.

The Labor Department said that initial claims for state unemployment insurance fell 52,000, the largest drop since December, to a much lower-than-expected seasonally adjusted 565,000 in the week ended July 4, from 617,000 the prior week.

It was the lowest reading since January. Analysts polled by Reuters had forecast claims to drop to 605,000 from a previously reported 614,000.

CONTINUED CLAIMS RECORD

However, in a sign of ongoing employment weakness, continued claims of people still on jobless aid after an initial week of benefits rose by 159,000 to a record 6.88 million in the week ending June 27, the latest for which data is available.

"The move higher in continuing claims is particularly discouraging given that the stabilization and slight move down in this series over the prior few weeks was one of the more uplifting pieces of data coming out of the labor market recently," Michael Feroli, an economist at JP Morgan Chase, wrote in a note to clients.

In addition, the new claims data appears to have been significantly distorted by seasonal factors.