Why Did Oil Collapse And How Low Will Gas Prices Go?

Finally, oil has gotten crushed!  We haven’t seen this large of a decline in oil in years as momentum speculators rushed out like someone discovering their Match.com date looks nothing like their picture!  One can say that the decline in oil prices was sparked by fears over slower US economic growth, but who are we kidding?  Someone who was long oil panicked, leading to more panic, followed by even more PANIC!!!

Perhaps the initial seller finally read, “Gas Prices Are Out Of Control And People Love It!” and spread it around.  The point of the post was actually to highlight how ridiculously OVERPRICED gas prices are given how much reported supply we have (US$1 million more barrels/day in 2011 vs. 2010).  If someone like me, who has a job and barely drives feels it, why doesn’t the rest of America feel it?  America does, and its hard for fundamentals to justify such levels.

SO WHAT NOW?

Should I Invest In CDs And Other Questions To Ask Before You Do

For my cash asset class, I pretty much dump all my money into long term CDs. My net worth is divided almost equally into stocks, bonds, cash, and real estate. I didn’t plan for it to be this way, it just happened and I don’t mind one bit. I love real estate the most because I like having a real asset which is tangible, produces income, and provides a hedge against inflation. My second favorite asset class is cash.

Cash is the only true means of passive income generation. I literally don’t have to do anything for the interest income earned after I decide on a CD. It just compounds and automatically renews to another similar duration CD after the initial period is over. My goal is to generate five figures a month in interest income from my CDs by the time I retire.

QUESTIONS TO ASK BEFORE INVESTING IN A CD

Online Poker Crackdown Is Good News

If you haven’t heard, our broke government wants to get its hands on the online poker industry’s potentially US$6 billion dollar annual revenue pie.  They’ve frozen bank accounts linked with Full Tilt Poker, Poker Stars, and Absolute Poker and have indicted 11 founding executives of the companies.  All totaled, the government wants US$3 billion in fines and restitution!

As you may know, I enjoy the game of poker.  I don’t think it’s gambling because you are playing against opponents, not the house.  This is the crux of the argument as to why the online poker industry should live or die.  The government thinks poker is gambling, but online poker executives obviously think otherwise.

If poker was gambling, why is it that we always see familiar faces win big tournaments.  Names such as Phil Hellmuth, Phil Ivey, Chris Ferguson and John Juwanda are everywhere!  You only win 49% of the time in gambling, but these guys win much more, that’s why they are so wealthy.  One interesting thing Phil Hellmuth told me at a charity event last year is that Full Tilt Poker player/shareholder Phil Ivey makes some US$2 million a month from his site!

DUMB PLAYERS ARE GAMBLERS

Making Money From Home And Supporting A Family Just Got Easier

For many couples who want to start families, it’s getting increasingly harder to do so without sacrificing a lot financially.  Education costs for kids are soaring and it now takes two incomes to afford a home in many big cities rather than just one 30+ years ago.

The nagging question on a lot of couple’s minds is, “Can we afford to have one person stay at home to raise the kid(s)?”  An equally common question is, “Can we afford to have kids at all?”  It’s kind of sad that many well-educated and well-paid couples have these thoughts. Part of the reason why I’m working so diligently on building up Financial Samurai and Yakezie.com is because my spouse or I would like to have something to do if one of us decides to one day stay at home and raise a family.

After a couple of years blogging, I know that making money online is possible. Not only that, it gives the stay-at-home spouse something exciting to do for several hours a day, in addition to raising the kids. Working from home while being able to raise a family is an enormously attractive proposition and I’m excited to present another way to do so!

A KILLER PRODUCT TO HELP GET US THERE

Fixing The Airlines Industry

I’ve come up with a great business idea in the worst sector in the world.  No sector has had more bankruptcies than the airlines industries.  That said, I’m undaunted because I know demand when I see it!

Introducing Samurai Airlines, where babies pay more and the person in the middle seat gets both armrests!

The inspiration for my new company comes from years of frustrated flying.  I somehow always win the lottery by getting the middle seat next to bathroom with a baby behind and two giants to my left and right.  Despite all my trips and “Premier Status” on a number of airlines, I’m still treated like donkey food.  As a result, I’d like to propose the following benefits of Samurai Air: