Heyer Capital, LLC

investment management and timely advice from a local CPA (Fox Valley, Wisc.)

Archive for May 2009

White House to Sonia Sotomayor critics: Be ‘careful’

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White House to Sonia Sotomayor critics: Be ‘careful’

“Be Careful?”


It was the Bolsheviks that demanded judges neglect the law and rely on their “revolutionary  consciousness” to decide cases.  

Peter Schiff points out: The central government’s Constitution isn’t something that needs to be “interpreted.” It’s not written in Mandarin.  It needs to be enforced. The problem is that judges want to apply their agendas, empathy, and ideology to places they don’t belong. A proper judge needs to be able to hand decisions that enforce the Constitution regardless of how it plays out. 

To deny the Constitution is to violate the law.


Written by heyercapital

May 28, 2009 at 8:43 am

Left Out of D-Day Events, Queen Elizabeth Is Fuming – NYTimes.com

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I’m neither star-struck by palace intrigue nor an exuberant Anglophile –Daniel Hannan & John Locke aside–, but I can only hope that the Queen uses this as her excuse to dissolve parliament and start anew. 

Left Out of D-Day Events, Queen Elizabeth Is Fuming – NYTimes.com.

Written by heyercapital

May 28, 2009 at 8:31 am

Daniel Hannan : Telegraph Blogs

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In the course of a mere two weeks, a political storm has erupted in Britain. This is a Cat 5 hurricane that has MP’s afraid to even leave their offices. (It reminds me of the heat of the Milwaukee county pension scandal where the county board member called the sheriff at 2 AM asking for him to declare martial law to cool things down.)     The expectation is that fully half of the members of parliament will be tossed out on the ears in the coming elections, if they don’t join the 30 that have already resigned. This tempest took two weeks to brew.

The British Member of European Parliament Daniel Hannan – who famously criticized PM Gordon Brown as a “devalued prime minister of a devalued government” — has been canvassing his enormous constituency the past month and only recently found one solitary voter supporting the governing Labor party. 

If you’re interested in following the opinions of a feisty politician who advocates lower taxes, less government, and local control and spending, then I recommend his blog, linked here: 

Daniel Hannan : Telegraph Blogs.


I have long advocated a fully open government here.  Every government email is mirrored to the web.  Every elected official wears a wi-fi microphone streaming onto the web. Every hearing on Youtube. Every government check is posted online.  With technology costs so low, any minor expenses would be more than recovered through reduce savings. Not convinced? Just imagine what taxpayer advocacy groups would be willing to pay to have the governor wear a wire full time.

Written by heyercapital

May 26, 2009 at 9:21 am

JPMorgan $29 Billion WaMu Windfall Turned Bad Loans Into Income – Bloomberg.com

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JPMorgan $29 Billion WaMu Windfall Turned Bad Loans Into Income – Bloomberg.com.


Needless to say, all those pundits that heaped scorn and wrath on “mark to market” write-downs seem eerily silent when banks do the opposite.

Written by heyercapital

May 26, 2009 at 6:34 am

Posted in Business/Econ

Simple steps for investor protection

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Today, right now, send your stockbroker or mutual fund salesman a letter asking if your account is handled by a fiduciary and in what capacity.  I’ll wait right here for you to return, but I won’t wait for an answer from your salesman.  I’ll bet I know the answer.  


If you work with an “investment advisor” they are a fiduciary to you. They must always act in your best interests and describe when they are not. Period. Full stop. End of story.  Any other investment relationship less than fiduciary is ripe with conflicts of interest. 

A good example is buying a mutual fund.  The mutual fund itself is an investment company that has a pool of assets. Who manages those assets?  An investment advisor to that investment company. There is a fiduciary relationship between those two.  How does that investment company gain assets?  Typically through a sales effort with the public.  The salesmen who sell those mutual funds and collect commissions typically are NOT a fiduciary to their clients.   Good, bad, right, or wrong, I won’t say.  But Wall Street is set up for investor protection for itself, but not necessarily for you, unless you demand it. 

Ask your advisor in writing for a response in writing. 


Next important point: where is the money? Literally.  Where is your account held?  Many brokers are “introducing brokers.” You may go in to visit and discuss investments with your broker at his local office, but your actual account may be held at a third party.  This is very common.  You must be aware of the financial health of the firm that actually has your account.  Is it insured? To what amount?  Is there supplemental, private insurance above and beyond SIPC?

Key in on, “Who creates the statements of the account?” If an investment broker has access to your money AND creates the statements themselves, that is a recipe for trouble.  There should be more safeguards for your money and distinct segregations of advice and access to the account. 

For instance, (if you’ll permit a brief commercial) most of my clients’ accounts are held at TD Ameritrade.  I have strictly limited access to the accounts; basically I can place trades for the accounts and instruct Ameritrade to send the clients themselves a disbursement check directly from the account.  TD Ameritrade takes care of everything else.  They send the statements. They send the confirmations.  They take the transfers-in. They handle the securities & checks.  They handle settlements. They send out third party checks.  They change the address on the account.  These distinct segregations of duties protects clients. The custodians take care of the money, which permits me to focus on trading, performance, and talking with clients.

The client owns the account directly. I trade for the client.  Simple. Everyone knows where everything is and in what amounts, so we can all see how the account is doing.

Written by heyercapital

May 22, 2009 at 7:35 am

Would you buy a used car company from this man?

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Unfortunately you, dear beleaguered taxpayer, are going to buy the car company itself.

And their competitor. 

And GMAC, the car loan provider to both companies.


And just in case your blood pressure is still low, here are a few more reading suggestions to learn how you’re being robbed blind. 





Fortunately, the bill to audit the Federal Reserve has 170 co-sponsors in the House.

h/t to Rush Limbaugh for the graphic

Written by heyercapital

May 21, 2009 at 8:47 am