Reames Financial
 
Are you tired of hearing about Europe yet?
No BS Weekly Update - November 28, 2011

In This Issue
Performance
Headlines
Recipe
Health Tip

Dear  , 

 

Me Too!!! 

 

Unfortunately the fact that we are tired of hearing about it is irrelevant.  If you care about your money you better pay attention to this issue because it isn't getting any better and it WILL affect your finances in the US.   

It was another brutal week for stocks as fears related to Europe's debt situation dominated headlines. According to CNBC, the S&P 500 logged its worst Thanksgiving week since 1932.  Ouch! For the week, the S&P 500 fell 4.7%, giving back almost two-thirds of its October gains. 


Here are some headlines from over the weekend. 

 

Britain draws up emergency plans for collapse of Euro after warnings Italy needs £500bn bailout

http://www.dailymail.co.uk/news/article-2066862/Britain-draws-emergency-plans-collapse-Euro-warnings-Italy-needs-500bn-bailout.html#ixzz1exLWa01r

 

IMF drawing up £517bn package to save Italy, Spain and the euro
http://www.telegraph.co.uk/finance/financialcrisis/8919470/IMF-drawing-up-517bn-package-to-save-Italy-Spain-and-the-euro.html 

 

Germany, France plan quick new Stability Pact: report
http://www.reuters.com/article/2011/11/27/us-eurozone-integration-ecb-idUSTRE7AQ00F20111127 

 

Time Runs Short for Europe to Resolve Debt Crisis
http://www.nytimes.com/2011/11/28/business/global/pressure-builds-in-europe.html?_r=1&partner=MYWAY&ei=5065 

 

Nothing will stop us from striking: Two thirds of schools to shut, airports set for chaos, Army on standby - but unions won't discuss a last-minute peace deal
http://www.dailymail.co.uk/news/article-2066955/Nothing-stop-striking-Two-thirds-schools-shut-airports-set-chaos-Army-standby--unions-wont-discuss-minute-peace-deal.html#ixzz1exRMjx6N

 

Toomey: Congress Still Can Adjust Triggered Cuts

http://www.newsmax.com/InsideCover/Toomey-supercommittee-cuts-Obama/2011/11/27/id/419164 

 

Euro Climbs on Report of IMF Italy Loan Plan
http://www.moneynews.com/StreetTalk/euro-italy-imf-loan/2011/11/27/id/419183 

 

Monti Says Merkel, Sarkozy Agree Italy Fall Would End Euro
http://www.moneynews.com/StreetTalk/Merkel-Sarkozy-italy-Euro/2011/11/25/id/419087 

 

'Awful' Italy Debt Sale Heightens Eurozone Stress
http://www.moneynews.com/StreetTalk/Italy-Debt-Eurozone-Stress/2011/11/25/id/419085 

 

Greeks Want Investors to Take Bigger Losses as Creditor Talks Start
http://www.moneynews.com/FinanceNews/Greeks-investors-losses-bigger/2011/11/25/id/419100 

 

Greece Needs More Austerity to Hit Targets
http://www.moneynews.com/Economy/Greece-Austerity-Targets/2011/11/25/id/419099 

 

But I'm still tired of it! 

 

Me too.  So even though there are several things that I'd like to comment on in the headlines above, it'll wait for another time.  Let's move on to something else. 

 

Occupy Wall Street 

Occupy Wall Street 1

Occupy Wall Street 2

You may recall that we brought the Occupy Wall Street story to your attention way back in August, before it even started.  I had seen a couple of small online stories about this protest that was being planned and I suggested that you keep an eye on it.  One of the main tenants of this protest seems to be a very anti-capitalist bent. 


I thought it might be good to take a look at capitalism.  Is it a good thing, a bad thing, a neutral thing?  I happen to believe that capitalism is the best economic system ever used in the world so far.  Is it perfect?  Nope, but I believe that it has brought more benefit to the widest group of people than any other system out there. 

 

Now I could write in great depth about my beliefs in and about capitalism but instead of doing that I want to bring an article to your attention that makes many of the points I'd make, and makes them very well.  

 

"What would you rather be? King of England in 1263 or you?" 

Dr. Wolfram
(Click here for article)

 

My daughter Leah was privileged to graduate from Hillsdale College with a degree in Economics.  One of her favorite professors was Dr. Wolfram.  In fact she used to baby sit for his kids. 

 

One of the things she liked about him as a professor was his ability to make things understandable.  I think you'll see what she meant if you read the article.  Here is an example.

 

Every semester I ask my students: "What would you rather be? King of England in 1263 or you?" Turns out, students would rather be themselves. They enjoy using their iPhone, indoor plumbing, central heating, refrigerators and electric lighting. All of these things are available to the average person in America today and none of them were available to the aristocracy when the West operated under the feudal system. 

 
How is it that for thousands of years mankind made very little progress in increasing the standard of living and yet today half of the goods and services you use in the next week did not exist when I was born? It wasn't that there was some change in the DNA such that we got smarter. The Greeks knew how to make a steam engine 3,000 years ago and never made one. The difference is in how we organize our economic system. The advent of market capitalism in the mid 18th century made all of the difference. 

 

I would highly encourage you to read the rest of the article and then forward it to others to read.  You can read the rest of the article here: 

 

http://tinyurl.com/6syr6wc 

 

Until next week folks, protect your assets!!!

ECONOMIC CALENDAR:
Monday - New Home Sales
Tuesday - S&P Case Shiller, HPI, Consumer Confidence     
Wednesday - ADP Employment Report, Productivity and Costs, Chicago PMI, Pending Home Sales Index, EIA Petroleum Status Report, Beige Book
Thursday - Motor Vehicle Sales, Jobless Claims, ISM Manufacturing Index, Construction Spending
Friday - Monster Employment Index, Employment Situation Report

Performance


Chart_11_28

Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized.
Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results.
Indices are unmanaged and cannot be invested into directly. N/A means not available.

Headlines

Black Friday sales increased 6.6% to the largest amount ever as U.S. consumers shrugged off 9 percent unemployment and went shopping. Consumers spent $11.4 billion, ShopperTrak said in a statement yesterday. Foot traffic rose 5.1% on Black Friday, according to the Chicago-based research firm. [8]

Did you skip the lines on Black Friday? There's still Cyber Monday -- and analysts are expecting an abundance of deals to bring in record online sales this year. Andrew Lipsman, an industry analyst at data tracking firm ComScore, said sales for the one-day shopping event are projected to hit a record $1.2 billion this year. [9]

Last week, Congress's special 12-member deficit-cutting committee failed to agree on measures to address U.S.'s fiscal woes. It marked the third year in a row that taxpayers headed into December with major tax-code issues unaddressed. Lawmakers have a lengthy to-do list. The 2% Social Security payroll-tax cut for employees expires at the end of 2011. So do a host of other provisions, including a fix to keep the alternative minimum tax from expanding to millions more taxpayers in 2012, and an extension of the popular IRA charitable contribution for people older than 70½. [10]

Oil prices rose towards $108 on Thursday, helped by bigger-than-expected stock draws in the United States and tensions around Iran. [11]



Quote of the Week
"We can do anything we want if we stick to it long enough." - Helen Keller
Recipe of the Week


Gingered Lemon Broccoli Salad


Recipe_11_28


Ingredients:
3 tablespoons light mayonnaise or salad dressing
2 tablespoons plain soy yogurt
1/4 teaspoon finely shredded lemon peel
2 teaspoons lemon juice
1/4 teaspoon grated fresh ginger
4 cups small broccoli and/or cauliflower florets
1/3 cup finely chopped red onion
1/4 cup dried cranberries
3 tablespoons roasted soy nuts

Directions:
In a large bowl, stir together mayonnaise, soy yogurt, lemon peel, lemon juice, and ginger. Add broccoli, red onion, and cranberries. Toss to coat. Cover and chill for 1 to 24 hours. Just before serving, sprinkle with soy nuts.



Healthy Lifestyle

Get Juiced


According to Purdue University researchers, citrus juice may be a far better partner for tea. Just a swallow or two can help you absorb a whopping 80 percent of tea's cancer-fighting antioxidants, explains study author Mario Ferruzzi, Ph.D., who notes that normally, we only absorb about 20 percent. "The antioxidants in citrus seem to safeguard the healthful agents in the tea, so they don't get demolished during digestion." [12]

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Phil Reames
Reames Financial
1856 Skyler Dr.
Kalamazoo, MI 49008
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