Don't Get Burned by Wall Street's "Cut-and-Run" Routine

By David Newman (November 21, 2008)

Dividend-paying stocks used to offer a way to "play it safe." Especially during bear markets, the regular paychecks could help "soften the blow." But not anymore. The truth is; dividend investors are getting hammered.

The Wall Street Journal calculated that 36 companies in the Standard & Poor's 500-stock index have cut or suspended dividends this year, removing $33.3 billion from investors' pockets.

And of the 7,000 or so publicly traded companies that report dividend information to the S&P, 138 decreased their dividends during the third quarter... a 15-fold increase from the same period last year.

And since these floodgates have been flung wide-open, many more companies will now join the trend and feel it's alright to cut their dividends. Remember, stock dividends are not contractually guaranteed. So with a wave of a CEO's hand, they can disappear.

 

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Now the Military Receives Forfeiture Kickbacks

By Mark Nestmann (November 21, 2008)

Asset forfeiture is a hugely profitable enterprise for city, county, state governments, and the federal government as well. In the most-abused type of forfeiture - civil forfeiture - you need not be accused of any crime to lose your property.

nstead, police allege that your property was used illegally, and then seize it. Unless you jump through a series of legal hoops, you're not even entitled to a judicial hearing to determine if the seizure is legal. In the meantime, you've lost the use of your property.

 

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Can the Aussie Dollar Break Away from Gold?

By Sean Hyman (November 21, 2008)

First of all, it's important to note that gold is one of Australia's biggest exports. There are often huge correlations between the Aussie dollar (AUD) and gold. However, there are periods of disconnect there as well.

Let's take a look at the chart below that goes back about four years.

 

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