Question and background: There is so much hype about crashing markets and the need for annuities as we approach retirement age. Which annuity would be the best? Also, if the markets fall apart, wouldn't they take the insured annuities with them? Wouldn't the same apply if there are currency problems?
Not to be overly simplistic, but I’ve generally found that there are two kinds of people in life:
If you’re anything like me, you probably want to throw a brick through the window the next time you hear the financial media yapping on and on about the so-called “Fiscal Cliff.” What is the Fiscal Cliff?
Unless you've been living in a cave, you've probably not been able to get away from all the news about the LIBOR rigging scandal...or perhaps we should call it LI(E)BOR-Gate. LIBOR stands for "London Interbank Offered Rate" and refers to the interest rate that banks (allegedly) charge each other for short term loans. Why is LIBOR important? Because lenders use it to set the interest rates they charge you for credit cards, mortgages, student loans, etc. Here's an infographic from HealthcareAdministration.com that does a great job summarizing the monkey business, the immense size of the problem, and a list of institutions that, along with Barclay's, may have been involved.
While I might quibble over a couple items, Ray Dalio's How The Economic Machine Works is the best presentation I've seen on what people need to understand about the economy. The 30 minute animation ought to be shown in schools and colleges around the country...and also made mandatory for our elected officials! It's well worth your time and actually fun to watch. Mr. Dalio is the Founder of Bridgewater Associates, currently the world's largest hedge fund managing around $150 billion in assets.