Dilbert on the economic crisis - Brilliant! But I think the economic crisis is more like having a few sick cows along with some healthy cows, then grinding up all the cows into a big pile of hamburger and distributing the hamburger all over the world.
How do you know if the hamburger you received does not contain any of the sick cows?
You don't. Which is the problem with making hamburger this way (which we do, BTW), and with the "securitizing" of home mortgages.
Dilbert creator Scott Adams claims this is "everything you need to know about personal investing":
- Make a will
- Pay off your credit cards
- Get term life insurance
- Fund your 401k to the maximum
- Fund your IRA to the maximum
- Buy a house if you want to live in a house and can afford it
- Put six months worth of expenses in a money-market account
- Take whatever money is left over and invest 70% in a stock index fund and 30% in a bond fund through any discount broker and never touch it until retirement
- If any of this confuses you, or you have something special going on (retirement, college planning, tax issues), hire a fee-based financial planner, not one who charges a percentage of your portfolio
Scott Adams calls it his Unified Theory of Everything Financial.
He might be right.
Dilbert and IBM - Since I'm now working at IBM (me and about 340,000 others), I found a special affinity for this cartoon, which was passed around by a co-worker. The fact he cc'd our manager with the cartoon tells loads. So from my experience, IBM isn't (always) this way :)