5 Reasons You Don’t Really Want to Win all that Lottery Money

Posted on March 30, 2012 by Dave!

For the last couple days, I had been planning retirement and trying to figure out just how I was going to spend my share of the winnings from the MegaMillions lottery (I do it with my company pool and my share would be a paltry 11 mil).  Then I see this article on why I don’t want to win it.  So naturally I read it. Here are the 5 reasons why they say I don’t want to win it (go to the article for more details about each):

1) Your friends will take advantage
2) Your relationship could fail
3) You’ll have an increased risk of bankruptcy
4) You’ll have to fight off a host of long-lost family members
5) You’ll be a target for a litany of lawsuits and scams

My thoughts on this are:

1) People I know will take advantage – my friends won’t. If ‘friends’ do, then really, how good a friend are they?
2) According to the example they gave (emotionally unprepared for the enormous responsibility and pressure of winning the lottery, took to gambling and womanizing to deal with the troubles adjusting to his new lifestyle), I have a hard time thinking that either my wife or I would not be able to handle it. It could happen I guess but given the chronic savers we are and the money sense we have, I’m willing to risk this one.
3) The theory is that winners have more credit available to them, use it, and overextend themselves. We are not credit people. Other than mortgage, we have lived debt free, paying off credit cards each month, not spending money we don’t have. I don’t think this is really in our DNA.
4) And? If they were long lost, it’s not like I am going to miss them when they come, are denied and leave.
5) Target of scams? Having been fortunate enough to have my Barrister and Libyian email friends already contact me to send over the fortunes that they have gotten for safe keeping, I feel safe in saying that while I am sure people will try and try more often, I think I am ok with the scam part. The lawsuit part I could see as problematic. Will need to up my liability insurance and probably install security cameras around my house. I should be able to afford those measures however.

To sum it up, I am still ready to win my 11 million this evening and begin retirement.  One may have problems when you are rich but they are a better set of problems than if one is poor.  I will be sure to let you all know if, er, when I win.  The first (and only) round is on me.  Cheers!

Filed under: Bits and Pieces, fun stuff | 6 Comments »

Handicapping 2012

Posted on March 30, 2012 by Brent Nyitray
How are the markets currently handicapping the 2012 election?
Intrade currently has obama trading at about 60
Sporting Index (A UK spread betting index) has him at 62.
No, you can’t arbitrage the two.

Sporting Index Markets:
Intrade Obama Chart:

Filed under: 2012 | 7 Comments »

Morning Report

Posted on March 30, 2012 by Brent Nyitray

Vital Statistics:

Last Change Percent
S&P Futures 1403.9 5.7 0.41%
Eurostoxx Index 2471.7 19.0 0.77%
Oil (WTI) 103.52 0.7 0.72%
LIBOR 0.4682 0.000 0.00%
US Dollar Index (DXY) 78.81 -0.376 -0.47%
10 Year Govt Bond Yield 2.15% -0.01%
RPX Composite Real Estate Index 170.13 0.4

Markets are higher this morning on no major news except for the increase in the European firewall. There is probably an element of end-of-the-quarter window dressing to it as well.

Personal Income came in +.2%, lower than expectations, while Personal Spending increased .8% higher than expectations. Inflation data came in as expected. Overall, no reaction in the futures. Chicago Purchasing Manager, Michigan confidence, NAPM, and some revisions are coming out later this morning.

The NYT notes that Moody’s may lower the credit ratings for B of A, Citigroup, and Morgan Stanley in mid-May. The side effect of this downgrade would be to kill their derivatives businesses, as the lower rating will force them to put up much more collateral against their derivatives books, and force many large buy-side clients to trade elsewhere. This could be the impetus to turn Citi and B of A back into plain old commercial  banks.

Goldman is raising money for a new fund to buy distressed home loan bonds without government backing. The documents state this is a bet on improving fundamentals in U.S. housing. The story also goes on to say that Goldman bid on mortgage bonds from AIG in a Feb 8 auction, and decided to hold the merchandise instead of selling it. Most of these bonds are trading in the 50s. Non-agency MBS have done well this year as credit conditions have eased – enough that some funds are paring their bets.

 

 

 

Filed under: Morning Report | 13 Comments »