AssetPreserver News

I came across this recently and thought it might be of use. It is the FDIC’s ongoing list of failed banks since Oct 2000. Clicking on each bank gives information on the failure and what is in store for the customers.

The United States Gasoline Fund, LP (UGA) is an interesting fund that tracks the price of unleaded gasoline.

To quote:

The trust will invest in the futures contract on unleaded gasoline delivered to the New York harbor traded on the New York Mercantile Exchange that is the near month contract to expire.

The trust is organized as a limited partnership meaning you will get K-1 forms (around March)  instead of 1099 forms. The expense ratio is 0.60%.

Gasoline prices are volatile and are dependent on many factors:

• crude oil price
• refining capacity
• supply and demand
• seasonality
• government regulations
• government taxes

Here is a link to the United States Gasoline Fund home page. The fund is managed by United States Commodity Funds, LLC.

Remember, the fund tracks gasoline prices, not oil prices. Also, no dividends are paid.

We have no holdings or vested interest in this fund nor is this a recommendation.

Doug

The I-bond rates, adjusted every May 1 and Nov 1, were released:

Fixed rate = 0.10%
Semiannual inflation rate = -2.78%

which gives a composite rate of -5.46%. Since I-bonds are guaranteed not to give negative returns, the interest rate from May 1,2009 to Nov 1, 2009 is 0.0%. In other words, nothing is earned. This anomaly is due to the fact that deflation occurred as measured by the consumer price index (CPI).

I know, the title sounds suspicious, but it is true. A series EE U.S. savings bond does what the title purports.

Currently (May, 2009) Series EE bonds are issued at a fixed 0.70% interest rate. Pathetic.

But, the U.S. Treasury guarantees the Series EE bond will double in value in 20 years. Using the rule of 72, 72/20 = 3.6 which means in 20 years the investment will return 3.6% annually in order to double in value. The U.S. Treasury will make a one-time adjustment to insure that the return is doubled in 20 years.

DtI – Doug the investor