One of the advantages of this rumor though, is that it has caused the weakened dollar to appreciate in value. According to a Bloomberg.com article posted today:

The dollar increased 0.9 percent to $1.5393 against the euro at 1:48 p.m. in New York, from $1.5532 yesterday. It has risen 3.9 percent versus the 15-nation currency since April 22, when the dollar sank to a record low of $1.6019. The dollar was up 0.3 percent to 105.13 yen, from 104.77. The euro fell 0.5 percent to 161.86 yen, from 162.71.

So, would this be a good time to speculate on the dollar?

I went to the experts to find an answer on whether or not the dollar would “stand or fall”? Specifically, I wanted to know if it’s time to speculate on the dollar or is it still a “euro theatre”? They played around with it for a while, presented it to their people, and came back with the following answer:

So, then I asked them, “How can you be so sure, after all the Fed’s not going to lower rates again, right?” After looking into things a little closer, they came back with the following response:

Okay, so that sounds reasonable enough.

So then I asked them: “Would I be better off moving back into the stock market now or leaving my money in cash, where I’m basically getting a ZERO percent return?”A wrong decision could leave me in a real Fixx.

So, I took their advice.. a good decision after today’s market action.

According to a post on LawyersandSettlements.com,

A class action lawsuit filed in late March alleges that Wal-Mart, the giant discount retailer, violated mutual fund ERISA statutes and cost its 401(k) employee plan holders and investors $60 million in unnecessary expenditures by purchasing expensive mutual funds, when cheaper alternatives were available.

It’s not like it’s big news that Wal-Mart’s getting sued, since they’re sued on almost a daily basis. It’s also not like it newsworthy because most people like to see Wal-Mart get what they deserve for treating their employees so poorly. It’s newsworthy because, if the lawsuit’s successful, a precedent will be set that could revolutionize the whole 401(k) plan industry.

No longer would employers be able to just throw together some high-fee 401(k) plan to save on costs or allow kickbacks. They would have to put the interests of their employees first. A win would give teeth to enforcement of ERISA and to make sure employers uphold their fiduciary responsibilities to their employees.

Believe it or not, I’m all against class-action lawsuits since it seems that their whole purpose is to enrich the lawyers at the expense of both the plaintiffs and the defendants. Just ask anyone who’s participated in one. However, this one could be different in that it could actually affect a positive change, and do a lot of people good. It’ll be a very interesting event to follow and I wish them success.

You can find a copy of the complaint at ERISAfraud.com (pdf).

Instead of holding themselves responsible for their own misdeeds, many on Wall Street still blame Eliot Spitzer for their own, or their associates, demise. What does that tell you about the folks you trust to manage your investments? It’s just that kind of attitude that makes me so cynical about the investment world. So, I thought it appropriate to write a post defending Eliot Spitzer’s legacy.

The way I see it, Eliot Spitzer’s made mistakes, but he’s not a bad man:

1. He didn’t steal money out of my pocket like the some of corporations and criminals he prosecuted when he was Attorney General of New York.
2. As far as I know, he also didn’t embezzle any money from his constituency like many other politicians in his position.
3. And although he might have attempted some unsafe sex practices, I’d be willing to bet that his “dates” weren’t the victims of any price-fixing schemes on his part.

Now, nobody likes a hypocrite, especially one who seems holier-then-thou. But, ask yourself this: Did his dalliances with prostitutes have any affect on you personally?

No, the only people that he really hurt were himself and his family. Nothing that he did wrong was at the expense of the average American, or done so in order to fraudulently lines his own pockets. Unfortunately, like many other powerful men, he just couldn’t manage to keep his pants zipped.

Of course there’s no arguing that what Eliot Spitzer did was wrong, but I’m not one to forget his good deeds, no matter how his motives might be perceived by others.

Let us not forget the great changes he helped institute on behalf of the American consumer and individual investor like myself. I believe that his many positive accomplishments far outweigh the few mistakes he’s made.

Instead of criticizing him, I believe we owe a debt of gratitude to Mr. Spitzer.

Here are just of few of his accomplishments:

• The five largest music companies and three of the USA’s largest music retailers agreed to pay $67.4 million and distribute $75.7 million in CDs to public and non-profit groups to settle a lawsuit led by New York and Florida over alleged price-fixing in the late 1990s.
• As part of a Global Settlement decision in 2002, several regulations designed to prevent abuse stemming from pressure by investment bankers on analysts to provide “favorable” appraisals were instantiated. The investment firms involved in the settlement had all engaged in actions and practices that had allowed the inappropriate influence of their research analysts by their investment bankers seeking lucrative fees.
• My favorite: In the 2003 Mutual Fund Scandal, Spitzer discovered illegal trading practices on the part of certain hedge fund and mutual fund companies. Spitzer and later the SEC also charged that major mutual fund groups facilitated market timing trading for favored clients. Nearly all of the fund firms charged by Spitzer with allowing market timing or late trading had settled with his office and the SEC between mid-2004 and mid-2005.

So, remember to keep these good deeds in mind whenever you feel a little vindictive or read that Eliot Spitzer is “getting what he deserves”. He did a lot of good things on our behalf during his career.

Keep in mind that, only about six months or so ago, the President and his yes-men were saying that the economy was in excellent shape and that we shouldn’t be concerned. Now, in just six months time, they’re saying that they need to overhaul the whole financial system in order to oversee financial market stability. That’s quite a dramatic swing, wouldn’t you say?

It’s too late now, but IMO, the best thing the government could have done during this crisis would have been to take a laissez faire approach and let the markets work out things for themselves. Now they’re looking to cause more problems, and cost taxpayers more money, instead of just letting the pieces fall where they may. This whole mess has got me thinking that maybe even Nouriel Roubini may not be so overly-bearish is his economic outlook.

Being the skeptic that I am, I’m leaning towards the idea that Monday’s announcement of the financial overhaul plan is just a wag-the-dog political ploy created to appease the scared and irate masses, and to help keep Republicans in office this election year. But, I could be wrong.. this may only be an insane idea.

My prediction? This plan never materializes.

BEFORE:

AFTER:

It’s your money, manage it wisely.