Matters Financial

17 March 2003


Buffet Avoiding Stocks
Warren Buffet did not get to be the second richest man in America (Bill Gates is first) by being a fool with his money. When the boss fellow at Berkshire Hathaway (an insurance company with a stratospheric stock price) speaks, investors take note. The news from the Oracle of Omaha is that stocks are over-priced, and Mr. Buffet has had his money in high-yield corporate bonds. Click here to read more.

FASB Decides Options Have Value
The Financial Accounting Standards Board, an industry body that oversees accountants, has decided that stock options should count as expenses when balance sheets are drawn up. This is, of course, the right decision, but one wonders what in the name of all that's sensible did they think before? Click here to read more.

Consumers May Have More Money After All
While consumer confidence has dropped lately, suggesting that the single positive demand factor in the US economy is tanking at last, there is a very powerful force arguing in the opposite direction -- mortgage refinancings are way up. With interest rates down, mortgage holders can cut their monthly payments significantly, and even walk away from the deal with extra money, so called "cashing out." This all means that the summer and fall may see a rebound in consumer confidence and spending. Click here for our view.