Weekend Warriors No More
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Filed under: Investing, Taxes, Credit, Market News, Investment, Debt
With a Thursday afternoon deadline fast approaching, investors and officials in Alabama are working to review new proposals to avert the biggest municipal bankruptcy in American history. Jefferson County, home to Birmingham, Ala., may have to file Chapter 9 on its $3.14 billion debt if is isn't able to negotiate a settlement. So far, the negotiations have come up short by $300 million. Jefferson County has asked bondholders to forgive $1.3 billion of its debt, while creditors have offered to write off $1 billion, according to Bloomberg. "I think they should have filed bankruptcy a year and a half ago," Craig Harris, mayor of Jefferson County town Kimberly, Ala., told the North Jefferson News. "This is a no-win situation." This morning Warren Buffet's company Berkshire Hathaway announced that it was buying Burlington Northern Santa Fe in a deal valued at $44 billion. In the announcement, Buffett called the purchase an "all-in wager on the economic future of the United States."
Is Buffett right that a bet on Burlington Northern is a bet on the economic future of the U.S.? Because if Buffett is right, we've got real problems.
Let's take a look at what Burlington Northern carries. Its major freight revenues (as of 2008) come from coal (23% of revenues); agricultural products (20%); international intermodal shipments of consumer products, which is probably mostly imports (16%); construction and building products (14%); and petroleum products (4%).
In essence, Buffett is betting that the next ten years will look a lot like the last ten: A lot of growth in imports, construction, energy and agricultural products. If he thought that innovation was going to be the driver of the next ten years--biotech, energy, and infotech--he wouldn't be buying Burlington Northern.
I'm not saying that Buffett is wrong. His skepticism about the tech sector in the late 1990s, and innovation in general, turned out to be right on the mark. Berkshire Hathaway stock over the past decade has risen by 84%, whil the S&P 500 is down by 18%.
But his "all-in wager on the economic future of the United States" paints a remarkably gloomy picture of where we are heading.
Source: http://www.businessweek.com/the_thread/economicsunbound/archives/2009/11/what_does_buffe.html
Source: http://shakingthemoneytree.blogspot.com/2012/08/august-long-weekend.html
Filed under: Investing, Stocks in the News, Food & Drink

It's been more than two months since Facebook's (FB) messy IPO cooled the market for new listings, but things are starting to heat up again.
It's not as if the market is hungry for upscale steakhouses again. Ruth's Chris parent Ruth's Hospitality (RUTH) has been trading in the single digits since late 2007. The parent company of Morton's of Chicago agreed to be acquired late last year, but that buyout also took place in the single digits.
Del Frisco's had to make sacrifices to make its own deal happen. Underwriters originally planned to offer 7 million shares for as much as $16 a share. Uninspiring demand resulted in the chain offering just 5.8 million shares at $13 apiece. Save Room for Dessert The good news here is that Del Frisco's is in a good groove lately. Revenue climbed 24% in its most recent reported quarter, and profitability nearly doubled. There's also the Del Frisco's Grille concept to warm up to. Nation's Restaurant News just named it one of its Hot Concepts for 2012. Del Frisco's Grille is a more casual spin on the classic steakhouse. The menu and decor is more modern, and there's even a rooftop bar to draw patrons upstairs before, after, or in lieu of the restaurant itself. The company itself realizes that it has plenty of expansion room for all three of its concepts. There are still plenty of major cities that don't have any of the company's eateries. Del Frisco's plans to open three to five new locations annually, giving it years of growth if it's able to successfully introduce its iconic steakhouses in new territories. Del Frisco's wasn't the only restaurant chain to go public last week. Chuy's (CHUY) -- a chain of casual Tex-Mex restaurants that stand out because of their hourly made salsa and Elvis Presley shrines -- also went public at $13 last week. The market seems hungry for restaurant stocks. Let's see if indigestion kicks in again this time.
Motley Fool contributor Rick Munarriz does not own shares in any of the stocks in this article. The Motley Fool owns shares of Facebook. Motley Fool newsletter services have recommended buying shares of Facebook.
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Source: http://www.dailyfinance.com/2012/08/01/restaurant-ipo-del-friscos-outlook/
A survey I saw recently asked women, age 45 to 64, how they viewed money matters. Here are some of the questions and my comments on the results. What is the most important goal for you in your career now? 16% of responders said they wanted to retire or retire early, but 62% said they [...]
The post Interesting Survey: How Women View Money Matters appeared first on Boomer & Echo.
Source: http://www.boomerandecho.com/how-women-view-money-matters/
Real Wages Much Lower Than They Were Four Decades Ago Wages need to rise to keep up with inflation, especially since the value of the dollar has been trashed: But Michael Greenstone and Adam Looney of the Hamilton Project document … Continue reading
Median Wages Have PLUMMETED Since 1969 was originally published on Washington's Blog
Source: http://www.washingtonsblog.com/2012/08/median-wages-have-plummeted-since-1969.html
Many women have not realized that now is the time to take control of your finances. For too long, a great number of you have relied on men, be it a husband or whatnot, to control your finances and help you plan for retirement. And the truth is, this line of thinking continues to this day.
Source: http://firstsecurityfinancialshow.com/blog/bid/142483/Women-Taking-the-Wheel
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