WealthWise

Dont Just Do Something Stand There

Columnist: David Raub
Dec, 2008 Issue

As the economy teeters on the precipice of collapse, neuroeconomists issue a bit of well-researched advice: Leave emotions at the door.

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The Day the (Wall Street) Music Died

Columnist: David Raub
Nov, 2008 Issue

“Bye, bye, Miss American pie…” sang Don McLean in one of my favorite songs of an earlier time. The poignant lyrics, which I never fully understood, talked about the day the music died.

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Marked to Market

Columnist: David Raub
Special Wine Issue, Oct, 2008

To understand what’s roiling the stock and bond markets these days, one must understand an accounting concept known as “marked to market.” It’s an easy concept to grasp—a firm must value its assets based on what the market says they’re worth.

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The Fannie and Freddie Fiasco

Columnist: David Raub
Oct, 2008 Issue

In early August, the Wall Street Journal printed an op-ed piece by Franklin Raines titled, “Truce Time in the Fan-Fred Wars.” Raines is the former Clinton administration budget director, who left government to become CEO of the Federal National Mortgage Association (“Fannie Mae”). Raines resigned from Fannie Mae in 2004 to “take responsibility for” an accounting scandal on his watch. Fannie’s erstwhile regulator, the Office of Federal Housing Enterprise Oversight (OFHEO), accused Fannie of overstating its earnings by billions of dollars so Raines and other senior management could reap huge financial rewards through their executive compensation package.

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