Posts filed under “Really, really bad calls”

Congratulations, you were drafted! Prepare to go broke.

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My Sunday Washington Post Business Section column is out. This morning, we look at how often pro athletes manage to go financially bust.

The print version had the headline Congratulations, you were drafted! Prepare to go broke!, while the online version is merely Professional athletes need to learn to keep their finances in good shape.

In the column, I detail why pros go broke (Youth and inexperience play a large part in it) as well as what they can do to avoid the most common fate of the pro athlete.

Here’s an excerpt from the column:

“The data on professional athletes are startling: Shortly after they retire, nearly four of five NFL players are bankrupt or under financial stress, according to Sports Illustrated. Joblessness and divorce are the main reasons. It’s marginally better in the National Basketball Association, where after retirement nearly two of three players are broke within five years.

Why does this happen? There are lessons here even for those investors who cannot hit a jump shot. Let’s look at the reasons so many athletes go broke.”

I really like what the Post did in the dead tree version of the paper — nice art work, including a good table:
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click for larger version

athlete bust


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Source:
Professional athletes need to learn to keep their finances in good shape
Barry Ritholtz
Washington Post, June 1 2014  
http://wapo.st/1nT4d4L

Category: Apprenticed Investor, Foreclosures, Investing, Really, really bad calls

Why Make Shareholders Accountable?

  “I don’t know what all these banks did to deserve all this but once again, when you are fining the bank, you are fining the shareholders of the bank who had nothing to with what management did. So if management did something egregious or criminal go after the people that did it and stop…Read More

Category: Legal, Really, really bad calls

How to Build a Better Bailout

“To avert panic, central banks should lend early and freely, to solvent firms, against good collateral, and at ‘high rates.’ ” -Walter Bagehot, Lombard Street   Former U.S. Treasury Secretary Timothy Geithner has been promoting his new book, “Stress Test: Reflections on Financial Crises.” I haven’t read it, and based on what I have heard…Read More

Category: Bailout Nation, Bailouts, Books, Really, really bad calls, Taxes and Policy

The Daily Show: Timothy Geithner Extended Interview

FAILWATCH: Here are all five segments of Former Treasury Secretary Timothy Geithner’s Daily Show appearance this week:

 
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Category: Bailouts, Economy, Really, really bad calls, Video

No, 8 in 10 Manhattan Home Sales Are NOT All-Cash

Source: RealtyTrac via Rampage   Yesterday, we directed our ire at bad automobile data. Today, its housing’s turn. I was running through my early morning sites one day last week in preparation for preparing my daily reads posting, when I saw this headline at the Washington Post: “8 in 10 Manhattan home sales are all-cash.”…Read More

Category: Data Analysis, Real Estate, Really, really bad calls

No, Those Are Not Millions of Unsold Cars Rusting Away

This week, an e-mail landed in my inbox with the header “Unsold Cars.” Above is just a few of the thousands upon thousands of unsold cars at Sheerness, United Kingdom. Please do see this on Google Maps….type in Sheerness, United Kingdom. Look to the west coast, below River Thames next to River Medway. Left of…Read More

Category: Consumer Spending, Data Analysis, Really, really bad calls, Web/Tech

The Retirement Delusion

A recent Gallup poll asked working Americans what they expected in retirement. “Half of Americans think they will have enough money to live comfortably after they retire.” This is the first time since before the financial crisis that a majority of Americans have felt this way. The poll is very revealing about both investing psychology…Read More

Category: 401(k), Investing, Really, really bad calls, Taxes and Policy

HGTV Won’t Flip My Big Gay House . . .

Once upon a time, there was a group of folks known as home flippers. They bought houses that needed some TLC, fixed them up, then sold them for a profit. The real-estate equivalent of day traders, they mostly went extinct during the housing crash. Except on television. Please bear with me as I somehow try…Read More

Category: Real Estate, Really, really bad calls, Television

Tapping Your 401(k) ?

From Bloomberg Visual Data: The IRS collected more than $5 billion in 2011 from penalties incurred by taxpayers who withdrew money from tax-deferred retirement accounts before the age of 59 1/2. The people who pay the penalty include younger workers who switch jobs and don’t bother to roll over their accounts and older workers who…Read More

Category: 401(k), Digital Media, Really, really bad calls, Taxes and Policy

Jefferson on Corporatocracy

Source: The Cagle Post

Category: Crony Capitalists, Digital Media, Politics, Really, really bad calls