An epic saga of real estate foreclosure and redemption, and the real-world education of newly-minted lawyer, Wajahit Ali

Loss aversion also explains one of the most common investing mistakes: investors evaluating their stock portfolio are most likely to sell stocks that have increased in value. Unfortunately, this means that they end up holding on to their depreciating stocks. Over the long term, this strategy is exceedingly foolish, since it ultimately leads to a portfolio composed entirely of shares that are losing money.

From an article in the NY Times on Anthem's much criticized plan to raise rates by 39% in California.

Having just been billed $35,000 for my daughter's four hours in a San Francisco hospital OR (and yes it was covered, by Anthem no less, and yes, the hospital got much much less than they billed), I can only stand in disbelief at those who do not see that our current health care financing system is utterly broken.

In a recent Commonwealth Club lecture, Pollan made the point that it is our American diet - a lot of fast food and heavy in red meat - that is killing us, as well as greatly increasing our carbon footprint. Cardiovascular disease and diabetes are the main symptoms. And this is supported by the government's agriculture subsidies to corn growers (that feed the cows), feed lots and the elimination of the normal OSHA, environmental and health restrictions that apply to most other industries. This is where agriculture policy intersects health policy. It is not a pretty picture.

According to Pollan, eating less meat would be the single thing we could do to improve our health, lower our health costs, reduce our dependence on foreign oil and lower our carbon footprint. As close to a no-brainer as I can think of. Not suggesting vegetarianism in any way, Pollan said that were an average meat eater in the US (who eats 400 pounds a year of the stuff) to reduce their meat consumption by just 20%, the greenhouse gas emissions savings would be the equivalent of swapping a Hummer for a Prius. Something to think about as the debate rages over these issues.

Pollan's books are In Defense of Food, The Omnivore's Dilemma, and Food Rules.

We are steadily becoming more vulnerable to economic disaster on an epic scale.

Simon Johnson, outspoken critic of the mega-bank bailout, concurs "Paul Volcker prevails."

Some of these things are like pouring rendered tallow directly down your throat. I'm actually not kidding: If you ate a half stick of butter you still wouldn't come close to the calorie count of a Venti Pumpkin Spice Frappucino Blended Creme.

So writes Clive Thompson on his blog.

1. Markets tend to return to the mean over time.
2. Excesses in one direction will lead to an opposite excess in the other direction.
3. There are no new eras - excesses are never permanent.
4. Exponential rising and falling markets usually go further than you think.
5. The public buys the most at the top and the least at the bottom.
6. Fear and greed are stronger than long-term resolve.
7. Markets are strongest when they are broad and weakest when they narrow to a handful of blue-chips.
8. Bear markets have three stages.
9. When all the experts and forecasts agree - something else is going to happen.
10. Bull markets are more fun than bear markets.

Reprinted from The Big Picture

No not Arianna Huffington, but Bill Gross, Chief Investment Officer of PIMCO (Newport Beach, CA.), the US' largest fixed income manager. Gross continues in his January "Investment" Outlook":

What amazes me most of all is that politicians can be bought so cheaply. Public records show that combined labor, insurance, big pharma and related corporate interests spent just under $500 million last year on healthcare lobbying for what is likely to be a $50-100 billion annual return. The fact is that American citizens have never been as divorced from their representatives - and if that description fits the Democratic Congress now in control - then it applies to Republicans as well - past and present. So you watch Fox, or is it MSNBC? O'Reilly or Olbermann? It doesn't matter. You're just being conned into rooting for a team that basically runs the same plays called by lookalike coaches on different sidelines. A "ballot box" pox on all their houses - Senators, Representatives and Presidents alike. There has been no change, there will be no change, until we the American people decide to publicly finance all national and local elections and ban the writing of even a $1 check for our favorite candidates.

Add Gross to the angry chorus of voices from financial professionals of all description regarding the stranglehold on DC politics by the largest industry players. Should be interesting to see where this leads.

Simon Johnson, former chief economist for the IMF and outspoken critic of the Bush-Obama bailouts of major banks, wishes that Mr. Summers would simply employ the same advice he found appropriate for South Korea circa 1998 to the USA in 2009.

And with that, I bid adieu to 2009 and the Oughts.

CDOs (Collateralized Debt Obligations) - not to be confused with CDSs (Credit Default Swaps) - were a major contributor to the excess risk that was created during the financial free-for-all era of the pre-Lehman collapse. CDO losses are on the order of $600B with much of this cost born by us the taxpayers.

If you were involved in the CDO business during the end days of the boom, please contact Jake and Jesse -- cdos@propublica.org or (917) 512-0258. Or, if you have information about others we should reach out to, please send that along, too. This is a serious investgative inquiry - responses can be confidential.