A 15 min video from 60 mins which aired 10/05/2008. It's about what has
happened with the credit market, the foolish risk Wall St and our government
has taken. This is "Wall Street's Shadow Market" and it's scarier then a
Stephen King novel!

In 2004 the SEC had a meeting to increase the risk that financial firms could
take. Listen and watch the slide show from the actual meeting. You can hear
laughter in the background when they talk about the risk. This is from the New
York Times 09/2008
The slide show is about 5 mins.
Click the link:

THE DAY THE S.E.C. CHANGED THE GAME

THE MARKET MELT DOWN

Understanding Credit Default Swaps

Credit Default Swaps

What Warren Buffett said about them:

Warren Buffett famously described derivatives bought speculatively as
"financial weapons of mass destruction." In Berkshire Hathaway's annual
report to shareholders in 2002, he said, "Unless derivatives contracts are
collateralized or guaranteed, their ultimate value also depends on the credit
worthiness of the counter parties to them. In the meantime, though, before a
contract is settled, the counter parties record profits and losses-often huge in
amount-amount-in their current earnings statements without so much as a
penny changing hands. The range of derivatives contracts is limited only by the
imagination of man (or sometimes, so it seems, madmen)."

My message to everyone:

With all that is happening in the market and the economy I'm telling people to get ready just in case the system does
break down. I'm NOT saying to build a shelter and hide or buy 5 tons of rice! You can do your grocery shopping 3
to 4 months or more in advance. Buy ONLY what you use anyway, so you don't waste money. Pasta, rice and
canned goods can last 2 years on your shelf.
If the economy gets really bad, you won't be wondering where your next meal will be coming from. I'm not saying to
panic, just be prepared. If the market does correct itself, you haven't lost anything, no need to do grocery shopping
for awhile. It's a win / win. It doesn't hurt to have extra food at home and it can buy you some time IF things get bad.
Buy what you normally use, buy a few extra boxes of pasta or rice, (maybe 5, and don't forget the sauce :) ,keep
them on the shelf. No need to do it all at once, just keep adding to what you already have.
This is just common sense, don't let anyone tell you you're just panicking and nothing is going to happen, you're
being prepared! No one knows what the future will bring.

Another 60 Minutes video which air 10/26/2008 on the credit default swaps

STOCK INFORMATION PAGE

Current favorite stocks:
Apple: AAPL
Bank of America: BAC
CIT Group: CIT
On2 : ONT
Level 3: LVLT
Rubicon Minerals: RBY

I'm trying to put a stock screen here, but having problems getting it to work.