How to be Rich, Happy and Free from Scams

The South Sea Bubble was one of the earliest British stock market bubbles. But it was more than just a bubble, like the dot com bubble of recent years -- it was an example of a scam of massive proportions, with the snouts of businessmen, management, and government firmly in the trough. The South Sea Company With the rise of British Imperial power in the early eighteenth century, the huge wealth generated by its vast overseas businesses was creating a growing wealthy middle class. But it was well nigh impossible for anyone new to invest directly in the companies controlling the trade. For example, the East India Company, which enjoyed a monopoly on trade with India, had fewer than 500 shareholders to whom its handsome (and tax-free) dividends were distributed. Enter the South Sea Company. Following the War of Spanish Succession, Britain was left with a national debt of around £10m (which was a considerable sum at the time). The South Sea Company was established in 1711 and raised capita...

This is a transcript of David Kuo's recent podcast with Jonathan Phelan of the FSA. Here they talk about common investment scams and how to avoid them. David: This is Money Talk, the weekly podcast from the Motley Fool. I'm David Kuo, and today I'm joined by Jonathan Phelan, Head of Retail Enforcement at the Financial Services Authority, and today we'll be having a look at scams. Welcome to the Money Talk podcast, Jonathan. Jonathan: Hi David. David: Right, as obvious as it may seem to a lot of people, what exactly is a 'scam', and is money always involved in a scam? Jonathan: Ultimately money is involved, but really a scam starts with the con, and con doesn't stand for con, con stands for confidence, and they gain your confidence by sweet talking you, taking an interest in you, your family, your wife, your kids, your car, your job, that sort of thing, and you could have many many conversations or a few emails before they even ask you to part with money, but...

DUBAI (AFP) - – The impact of the global financial crisis is still in its "first half," but there is only a brief opportunity to bring tough reforms, the World Economic Forum warned on Friday. "It is still too early for people to pat themselves on the back and say that we've managed to get through the crisis," WEF managing director Richard Samans, told AFP. "I think we're still in the first half of the aftermath of this crisis," Samans said on the sidelines of the forum's second summit on the global agenda in Dubai. Other forum participants agreed, saying the recovery was threatened by a wide range of problems thrown up by the US-rooted global financial crisis. "The truth is that we did our best, but (the world is) still going through the storm," Mohammed Alabbar, head of a committee tasked with helping Dubai counter the impact of the crisis, told the conference. "The world... is in trouble, because government debts are out of co...

by Brett Arends provided by The Wall Street Journal How much money do you actually need to take this job and shove it? Go on, admit it: You've thought about it. Maybe you've imagined quitting your job and easing into early or semi-retirement -- or starting your own business. It's a perennial topic, but it's especially timely now. Millions are either unemployed or working part-time. Millions more fear their job could be next. Obviously there are a legion of complicating factors involved in anyone's decision. Sherrill St. Germain, a financial planner in Hollis, N.H. with a lot experience in the field, says the big issue for many clients is losing group health insurance. "That's the thing that keeps them stuck," she says. "That's the deal-breaker." Say what you will about healthcare reform: The present system is a huge drag on economic mobility and entrepreneurship. But even if you can surmount all the other complications involved in escapin...

By Rob Silverblatt After the dust clears from the furious rally in stock prices, what will happen next? It's the question in the back of every investor's mind, and the answer could be far from encouraging. The way many economists see it, the market is headed for a sustained period of slow growth as the tepid borrowing environment and sluggish employment prospects balance out the recent rash of enthusiasm. For investors, this turning point in the market provides ample reasons for tempered expectations. But even amid a slowdown, there are a number of opportunities for solid returns. Here are some tips for navigating a slow-growth economy. Pay attention to dividends. Under normal market conditions, investors can expect a healthy balance of dividend payments and companies' earnings growth to anchor their returns. But if corporate earnings falter in a slow-growth climate, dividends will take on mounting importance. On its surface, this is a troubling proposition, mostly because ...

By Simon Maierhofer When was the last time you put together a real pros and cons list? Was it back in your dating days, when you purchased your last car, or when you thought about gifts for your mother in law? Regardless of how long it may have been, it's time for another pros and cons list. Here's why: The stock market has been moving up relentlessly for eight months. Over the same period of time, 3 million jobs have been lost and about one bank a day had to close its doors since the beginning of the year. Aficionados of technical analysis will find it interesting that the recent 15-day rise came on volume (NYSE total market volume) that was 27% lower than the average volume since March 1st. If you're thinking, stocks are up, all is well; now's the time to snap out of it and face the music. The implications of this pros and cons analysis will be disturbing, so let's start out with the good news and ease into the subject. Leading indicators - leading what? On Thursd...

Donna Rosato Raises should make a comeback, but keep an updated resume handy. Despite all the talk about economic recovery, you're probably still anxious about next year's job market -- worried not necessarily about your position but maybe your spouse's or your adult kids' or your best pal's. Your concern is understandable. According to the consensus estimate from the Blue Chip Economic Indicators, the jobless rate will steady in the first half of 2010, before dipping to 9.6% by year-end. Continued high unemployment after a slump has become more common in recent years; after the last two recessions, it took two to three years for the jobless rate to return to pre-recession levels. What's different now: Economists say the severity of this downturn means that it could take even longer for unemployment to drop below 5% as it was in 2007, if it ever does. Structural changes in industries from manufacturing to media, coupled with strong gains in productivity, are ena...