The Motley Fool's CAPS investing service is one of the newest additions to the investing community at Fool.com, and it's another great way for investors to work together to beat the market. One of the CAPS features allows users to set up a blog to talk about their picks, investing strategy, market view, or their favorite baseball team (if they so desire).
I've scoured through the CAPS blog universe to bring you a generous helping of the top blog posts of the past week.
How to solve the mortgage crisis
At this point, who isn't thinking about the craziness going on in the mortgage industry? Though Ben Bernanke and the Fed didn't think the problems were dire enough to cut the federal funds rate, the situation is certainly front and center for employees and investors in American Home Mortgage, which declared bankruptcy this week. Those involved with other subprime and Alt-A lenders such as Accredited Home Lenders
luvb2b, currently one of the Top Fools on CAPS, weighed in this week with a blog post suggesting a solution to the mortgage market problems. The plan focuses on bringing more liquidity and two-way trade into the market by giving a more active role to the affected borrowers.
Accredited Home and Lone Star
And speaking of subprime, how about that buyout for Accredited Home? A couple months ago now, private equity fund Lone Star offered to buy Accredited for $15 per share. Right now, you can pick up shares of Accredited for just a hair more than $6. So, as Jerry Seinfeld might say, what is the deal? Check out MesaWeb's blog for one take on the situation.
That crazy Mr. Market
If you need to do some catching up on what's been going on with manic Mr. Market over the past week, CAPS player camistocks has rounded up a bunch of articles covering some notable happenings. Included in the review is coverage of the sorry state of the credit default swaps for the investment banks, the black eye that the Blackstone
Amazon.com's rise -- liquidity or fundamentals?
At 71 times projected 2007 earnings and 105 times trailing-12-month earnings (yup, that was triple digits, you read it right), Amazon.com
But not everyone shares David's bullishness. On CAPS, turleymiller has written a post suggesting that the recent gains for Amazon have been about more than the company's improved outlook. Specifically, he posits that a combination of short sellers trying to cover, buyers buying to lean on short sellers, and other investors remaining unwilling to sell has helped create the impressive 200% gain for the stock over the past year.
In the beginning
The road to retirement is rarely a straight line, and it's seldom without its share of bumps. Unfortunately, those bumps can end up being craters for some. In a recent blog post, CAPS player Zrak shares part of his financial history, including how he saw a good chunk of his retirement savings disappear with Procter & Gamble's
Break out that summer reading list
Ready to get your learn on in what's left of the summer? In his recent blog post, CAPS player chk999 tells readers about an economics book that one commenter suggests should be "required reading for everyone aged 18 or over."
I'm with Cramer
Let's play some Mad Libs: Last week on CNBC, Jim Cramer had a ______ when talking about what the Federal Reserve should do.
Answers that would have worked include "meltdown," "breakdown," "freakout," "spaz attack," and "psychotic break." If you haven't had a chance to watch the instant classic, you can check it out on my CAPS blog via YouTube.
As you may be able to tell from my blog, I am not with Cramer on this one. But there are two sides to every story -- for a take on why Cramer may be right, check out motleyanimal's blog.
So now it's your turn -- get off the sidelines, join CAPS, and start up your own CAPS blog to share your own knowledge and insights with the rest of the CAPS universe.
More CAPS Foolishness:
- 5 All-Star Stocks on Fire
- Invest Like a Pro: Brown Investment & Advisory
- 7 Highly Rated Stocks on Sale
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Fool contributor Matt Koppenheffer shares some thoughts of his own on his CAPS blog. He owns does not own shares of any of the companies mentioned. The Fool's disclosure policy does not have its own CAPS blog, but if it did, it would blow your mind.