Bad news for US financial stocks.
Century old commercial lender, CIT Group, filed for bankruptcy tonight. This isn't overly surprising but it IS a real kick in the pants to American citizens, since the US Government gave CIT $2.33 billion of TARP money (taxpayer money) in December 2008. What a joke.
US financials may be hit hard tomorrow. Then again maybe not. Who the heck knows what's driving market sentiment these days. In the words of very smart money dude, David Rosenberg, "the stock market is divorced from economic reality".
On a totally different topic, I've been trying to remember the basic principles of compound interest, and how long it would take to double your money. (Yes, this type of thing is fun for me :)
After a bit of googling, I came up with this chart, which is based on a fixed annual rate of return:
- 5%: 14.4 years
- 6%: 12 years
- 7%: 10.3 years
- 8%: 9 years
- 9%: 8 years
- 10%: 7.2 years
- 11%: 6.5 years
- 12%: 6 years
- 15%: 4.8 years
- 20%: 3.6 years
So if you're earning 5% per year on your investments it will take 14.4 years to double your money, at 6% it would take 12 years, etc. etc. Just thought you might like to know...
*And I made another $120 sale on Craigslist today. Our house is emptying out really fast and My Fella has threatened to start duct-taping down everything he wants to keep.
Silly Fella. As if duct tape could stop me.
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