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@theMarket: Merkel Versus the Markets
By Bill Schmick,
11:41AM / Friday, November 25, 2011
Global Investors are convinced that unless something changes and soon, the Euro and the nations that use it are toast. They are exerting as much selling pressure as possible on worldwide markets to force those changes. So far all it has done is make us all poorer.

Germany's Chancellor Angela Merkel agrees change is necessary but not the kind the markets want. Her nation insists that good old-fashioned fiscal austerity will solve Europe's problems over time. Investors believe that while that is a laudable goal, it will not do anything to solve the immediate problems of the "too big to fail" nations such as Italy and Spain.

Over the last two weeks the flow of positive comments


The Independent Investor: Best Avenues to Save For Retirement
By Bill Schmick,
01:54PM / Wednesday, November 23, 2011
Today savers are offered a plethora of tax-deferred retirement plans. For those of you who are just starting out the choices can seem overwhelming but it is not as hard as you think.

Back in the day, before the advent of government-sponsored savings plans, defined benefit pension plans and the odd annuity were the only investment vehicles available to me. As a young stud on Wall Street, it didn't matter. Retirement saving was for others. I would live forever, make millions in the market and retire when I was 30. Fortunately, I woke up to the realities of the real world and started saving early in my career. You should, too.

In fact, the earlier you recognize that saving for retirement


@theMarket: ECB Between a Rock and a Hard Place
By Bill Schmick,
03:07PM / Friday, November 18, 2011
All eyes are on the European Central Bank. The financial risk in Europe has escalated to a point where investors see no way out unless the ECB comes to the rescue. The problem is that the bank's charter makes that difficult.

Back in the day when the ECB was first established, its member countries insisted that its role would be confined to controlling inflation through monetary policy. Unlike the U.S. Federal Reserve, there was no directive to manage unemployment in their guidelines. This is important because in this country managing unemployment allows our Fed to goose the economy (by printing money) despite the risk of future inflation to reduce the jobless rate.

The Fed's


Independent Investor: Who Do We Owe?
By Bill Schmick,
05:14PM / Thursday, November 17, 2011
Our national debt stands at $14 trillion and rising $3 million a minute or $3.99 billion a day, every day. Given that our debt ceiling at the moment stands at $14.294 trillion, it is only a matter of time before we once again have to renegotiate the debt ceiling.

Readers may recall that as a result of the last go-around over the debt ceiling, investors worried that a technical default by the U.S. would create massive negative fallout among the holders of our national debt. "They" (so the story goes) would dump our debt overnight creating a huge spike in interest rates, etc. etc.

So who are "they?"

Let's start with foreign holders. China is often mentioned as a

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@theMarket: The Italian Massacre
By Bill Schmick,
05:17PM / Friday, November 11, 2011
Unlike Greece or Portugal, the Italian bond market is the third largest in the world. So when interest rates on their sovereign debt skyrocket overnight, the world's stock markets pay attention. It was a massacre.

Wednesday's decline was breathtaking with all three U.S. indexes declining over 3 percent, giving back in one day what it took a week to gain. World markets followed suit taking a huge bite out of investors' recent stock gains. As I wrote last week, volatility is here to stay and maintaining a defensive investment posture is a good strategy.

Readers should be aware that I am writing this column on Thursday, which is the 236th birthday of the Marine Corps. As a Marine (no

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