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Nearly every man who develops an idea works it up to the point where it looks impossible, and then he gets discouraged. That's not the place to become discouraged.
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Tag Archives: rethinking the headlines
Bonds for All Ages
Second, fixed-income assets can serve as a supplement to your income. For example, a conservative bond ladder can put consistent and dependable cash in an investor’s pocket regularly over the life of the holdings. In tremulous times like these, structuring your securities like this may be a welcome alternative.
Of course, fixed-income assets do have their limitations. There is generally a much smaller reward with these options than with say, stocks. Younger generations are typically better positioned to take the bigger risks as they have the time and (usually) the financial stability to explore investment options in various markets. That said, historically more secure fixed income products, like the FDIC-insured CDs and agency bonds available at Zions Direct, are typically a wiser option for saving for foreseeable events, such as home buying, weddings and college tuition. These life milestones aren’t exactly the experiences on which we should gamble our money. Read More
Rethinking: The Credit Card Act
Last year, President Obama signed into law the Credit Card Accountability and Disclosure Act of 2009, which includes many provisions that go into effect Feb. 22. The intent of the Card Act was to establish fair and transparent practices pertaining to credits cards. At Zions Bank we have always believed in treating our clients fairly and we welcome this type of legislation.
While the Card Act has resulted in significant changes for many card issuers, the impact to Zions Bank has been minimal since we have never engaged in the “unfair and deceptive” practices addressed in this new law. Let me share with you a few examples of how we’ve approached some of the issues addressed in the Card Act over the years . . . read more Read More
Rethinking: Traditional Brokerages
As individuals continue to react to the current economic climate and sort out their financial portfolios, one thing has become very clear: traditional investment ideas and practices are no longer driving our decisions. It’s time to rethink our strategies. Read More
Rethinking: Getting Started in Fixed Income
As the financial crisis continues, many investors are questioning where to put their money. Bonds typically have been thought of as a favorite for an older generation looking for more stable, less risky investments; however, in this economic climate, bonds, generally, have proven appealing across demographics. Read More
Rethinking: Much Ado About Munis
The debate over the reliability of municipal bonds (munis) continues to flood the media as several reporters claim the likelihood of these bonds defaulting due to rising state and local debt. On the other hand, some media outlets are claiming munis are still the most dependable investment available in today’s volatile economy. Read More
Rethinking: Banking Today
Back in the 1980s, a period, like today, of great stress in the banking industry, I saw a bumper sticker that read: “Don’t tell my mother I’m a banker. She thinks I play the piano at a bordello.” Bank-bashing has once again become a popular sport with little, if any, distinction made between the great majority of well-capitalized, customer-focused and community-minded commercial banks who have acted responsibly, and the few institutions — primarily in the investment banking industry — that have become poster children for excessive risk-taking and eye-popping compensation practices.
Many traditional bankers have grown tired of the high-pitched ranting by media “talking heads,” politicians and others who overnight have become self-proclaimed authorities on banking. Here are a few of the questions being asked, and some answers you’re not hearing: Read More
Rethinking: FDIC Insurance
While benefits of FDIC insurance can be debated, especially in this economic climate, insurance on certificates of deposit (CD) and bank accounts provides needed relief to the individual investor. Created in 1933 in response to the bank losses suffered during the Great Depression, FDIC insurance guarantees individuals’ bank deposits, currently up to $250,000 for each deposit in a single bank. Today, an individual can use the insurance to buy a CD knowing that their money is protected up to $250,000 until December 2013.
In addition to bank deposits, FDIC insurance carries over to some of the more conservative investment options as well. Read More
Rethinking: Understanding Why Banks Fail
While there are many reasons a bank might fail, the common pattern is excessive loan losses followed by a lack of confidence from depositors. The actual closure of a bank may be triggered by a run on deposits, or regulators may step in if it appears that capital has been exhausted due to large losses. Bank failures over the past year have generally followed this pattern. For example, the failures of Washington Mutual and IndyMac happened as a result of unwise expansion and risks taken during the housing bubble, including an inordinate number of subprime mortgage loans that defaulted when the housing bubble burst.
There are many factors that can lead to excessive loan losses. Expanding rapidly into new geographic areas may result in banks taking on risks they don’t fully understand or trying to “buy” market share by liberalizing credit underwriting. Some may expand into new product types without fully understanding the risks involved, as was the case with subprime mortgages. Banks may also simply be lax in enforcing credit standards when the economy seems robust. Occasionally, a bank may acquire another company without fully understanding the risk in that company’s loan portfolio. Read More
Rethinking: Banks, Bailouts, and Taxes
Since the latter part of 2007, the financial world has been in one of the worst crises of the last half century. Just a cursory look at news headlines around the world reveals a telling and stress-inducing story.
With these articles, the spotlight remains squarely on financial institutions as we are continually reminded of failing and nearly failing banks needing “bailouts”. Unfortunately, we are too often only exposed to part of the story. Read More
