I got a question. Since the stock market is doing so poorly (dow down nearly 778 points), would it be a good time to try to buy some cheap stocks. I know it might be risky, but if I were to invest in stocks, what type of companies should I look to invest in, or more specifically, what companies should I invest in?

Popularity: 8% [?]

As we reported yesterday, WaMu posted an increase in their savings account APY to 4.00%. We called this a sign of desperation. It was announced late Thursday night, JPMorgan Chase will buy Washington Mutual for $1.9 Billion, marking this the biggest bank failure in the nation’s history!

WaMu is the 13th bank to fail so far this year and this is JPMorgan Chase’s second major purchase this year. Earlier this year JPmorgan acquired investment bank Bear Stearns, in a deal also forced by the government. JPMorgan Chase will acquire $307 billion in assets and $188 billion in deposits from the WaMu-JPMorgan deal.

What does this mean for WaMu customers?
According to Federal regulators, the transition for WaMu customers would be “seamless.”

FDIC Chairman Sheila Bair said, “There will be no interruption in services and bank customers should expect business as usual come Friday morning.”

The WaMu-JPMorgan Chase deal will not have an effect on the FDIC deposit insurance. Your deposits will still be covered up to $100,000.

I can’t help but think, which bank is next to fall?

Sources:
JPMorgan buys WaMu
Bailout in chaos, feds seize WaMu

Popularity: 10% [?]

While most of us are struggling to save money, and pay for gas, there are many Americans that have nothing to worry about.

Bill Gates has reclaimed the top spot with a net worth of $57 billion dollars. Gates lost his title to Warren Buffett for a few months in spring 2008. Buffett’s shares in Berkshire Hathaway have fallen and landed him in a close second at $50 billion.

Here is a run down of the list:
1 - William Gates III
2 - Warren Buffett
3 - Lawrence Ellison
4 - Jim Walton
5 - S Robson Walton
6 - Alice Walton
7 - Christy Walton & Family
8 - Michael Bloomberg
9 - Charles Koch
10 - David Koch
11 - Michael Dell
12 - Paul Allen
13 - Sergey Brin
14 - Larry Page
15 - Sheldon Adelson
16 - Steven Ballmer
17 - Abigail Johnson
18 - Jack Taylor & Family
19 - Anne Cox Chambers
20 - Donald Bren

Sources:
Forbes - The Forbes 400
Yahoo - The Forbes 400 Richest Americans
Photo - ©AP Photo/Las Vegas News Bureau, Bob Brye

Popularity: 8% [?]

This is a quick update, HSBC Direct’s promotional 3.5% APY has ended and going back to 3.25%. Still a leading interest rate number. HSBC Direct offers no fees, no minimums, and they’re FDIC insured, so your money is safe and covered up to $100,000.

Apply Now!

Here is a quick list to compare some online savings account and their APY for Sept. 17th, 2008:

• HSBC Direct - 3.25% APY
• WaMu - 3.75% APY
• E*Trade - 3.30% APY
• GMAC Bank - 3.00% APY
• ING Direct - 3.00% APY

Popularity: 8% [?]

My sister has been contributing to her 401k for several years now. She is only in 1 fund, the Fidelity Freedom 2040. As I take it, this fund automatically adjusts to accommodate the persons retiring in year 2040. She is 26 years old and will probably retire more than 10 years after this date.

Is this an ok fund for her to be in? Looking at the performance of the stock and associated fees, it seems in line with an index fund. Think she should diversify more or continue to contribute to this fund?

Popularity: 14% [?]

I was talking to one of my peers recently about the candidates for president this year and which one he thought would be the better choice as a young professional. Here is what he said:

me: Why is Obama a better choice as a young professional?

Jared: Because he understands young people. This is evidenced by the fact that he raised $66 million in the month of August, largely through online fundraising. Obama understands the importance of internet, just like young professionals, and is able to use it to his advantage - unlike John McCain who openly admits he’s never “done a Google.”

Who is the better choice for you?

• Barack Obama
• John McCain
• Neither
• Not sure yet
• I don't care, I don't vote

View Results

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Obama also wants universal health care now. Young professionals jump around a lot between industries - they are trying to find their place in the work world. It becomes harder to do this if you have to worry about things like benefits and health insurance. If we all had health insurance, someone like you could take more chances, and maybe jump into that start-up. You could pursue your dreams like you always wanted to.

Barack is also brilliant - a Harvard Law graduate - he pays more attention to both sides of the issues, and would be more focused on diplomacy and less likely to start or prolong unnecessary wars. That right there should let you know he’d be a better leader for young professionals. People like you and I who are trying to get our careers started - we have no interest in things like war. That trillion dollars that we threw away in Iraq - that money could be spent right here at home, stimulating our economy and opening up job opportunities.

We also are not in that top .01% economic category that Republicans actually represent. We’re also not of the religious right. We support progress, and change - we represent the future, and that’s what Obama represents.

Additionally, Barack Obama supports renewable energies, and true investment in those technologies. He’s aiming to free our generation from having to raise our kids in the throws of a global warming crisis. Obama will forge ahead into the future, and bring these technologies to the forefront. He see’s where we need to go - and he’s willing to take us there.

Everyone needs to understand that this election is clearly a choice between the past and the future, and I suggest we proceed, onwardly and upwardly into the “next.”

Popularity: 10% [?]

I’m sure most of you have seen the fact that FRE and FNE have been taken over by the government. There are a lot of opinions out there about the implications of such a move but the market seems to love it.

FRE FNM bail out

• Good for the U.S
• Bad for the U.S.
• Won’t Help the Economy
• Will help the Economy
• Will have no effect

View Results

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Here is a good news story on the topic. Any one have an opinion on this?

Bailout of mortgage giants should result in lower mortgage costs and make credit more available. But lending standards will stay tight and risky borrowers will still pay extra fees.
What rescue means for mortgage rates

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Popularity: 8% [?]