How consumerism hurts consumers
As businesses cheat us with hidden fees and crazy contract terms, our focus on beating ‘the system’ diverts attention from fixing it. But you can help change that.

Managerial Incentives and Corporate Fraud: The Sources of Incentives Matter

Operating performance and stock return results imply that managers who commit fraud anticipate large stock price declines if they were to report truthfully, which would cause greater losses for managerial stockholdings than for options because of differences in convexity. Fraud firms have significantly greater incentives from unrestricted stockholdings than control firms do, and unrestricted stockholdings are their largest incentive source. Our results emphasize the importance of the shape and vesting status of incentive payoffs in providing incentives to commit fraud. Fraud firms also have characteristics that suggest a lower likelihood of fraud detection, which implies lower expected costs of fraud.

Stuck in a Not-So-Great Depression?
The bulls and bears have moved on from big battles to small skirmishes as the next phase of our economic struggle plays out, much of it in the muddier field of politics.

Off 298, Dow ends just above November low
Stocks tumble as worries mount that the Obama stimulus package won’t ease the recession’s pain. GM and Chrysler see cutting a total of 50,000 jobs as they struggle to rebuild their businesses. Oil drops below $35. Wal-Mart profits fall, but results top estimates.

You can’t hire a good banker for $500K
As mad as we might be, President Obama’s cap on executive salaries at bailed-out banks is a bad idea. We need the best talent to help us out of this mess.

Is Exxon Mobil headed for a fall?
A cautious discipline helped the oil giant become the world’s most profitable company. But in today’s high-risk, high-reward environment, the prize may go to the gamblers.

Brokerage houses are awash in cash
Weary of the volatile stock market, investors have parked an estimated $600 billion in cash. But the longer it sits there, the more it may benefit brokers.

5 buys for the (eventual) recovery
When the turnaround comes, the best stocks in the most-damaged sectors will soar. The hard part is figuring out the ‘when’ and the ‘best.’

Can your Mortgage be your Savings Account? Posted By : rateempire
It is becoming increasingly popular to use a mortgage in lieu of a low-interest savings account. Is this a good idea?