If your a Saavy Investor that is a Professional it makes since to absolutely insure your future during a sale of a invested position for possible future capital appreciation! This will be a short post. But very rich information and rich in explanation. Let’s dive in.
First we need to explain what is the term Schmuck Insurance in Capital Markets Speak?
According to NEW YORK STREET LORE? SCHMUCK stands for “Stupid Person”
Example of How Schmuck Insurance can help you mitigate a very poor transaction decision without future knowledge of appreciation of your partially sold investment.
Here are some Examples of Schmuck Insurance in the Market by Institutional Investors.
The Feared Activist Investor and US ARMY Veteran Carl Icahn of Icahn Enterprises goes after Pershing Square Founder Bill Ackman on LIVE TV! Reason? Bill’s Schmuck Insurance Clause and Herbalife’s Business Practices. Is he right or wrong? You decide. However? I would tend to agree that all clauses need to be looked at in the fine print. Misunderstandings do happen. But? Sometimes we all know some Attorneys and Clients slip one in the fine print we don’t see. Here is the legendary Spat.
How to implement Schmuck Insurance and make it work for you?
What makes good sense as a good rule of Thumb for deploying Schmuck Insurance? Ask the question. Does selling your shares really mean you lose everything if you close out your initial Investment? Only if you sell all your shares. Sell 80% as a good rule of thumb and let the other compound or grow in a sub categorized long term portfolio? Pure Brilliance.
Don’t Sell All Of Your Investment. I do believe it is good business to never close out your entire position without a little insurance. After all? We don’t want a situation where you sold to soon and your initial investment Thesis turns into a Situation where eventually your Investment SOARS in value.
Another great example is Sam Bankman-Fried. Sam in all honesty likely got overwhelmed with his Financial Situation and became slightly distracted. And add in the fact Sam had zero Experience Managing and Accounting for Funds received from Investors created a Nightare situation that he was ill prepared to handle. But look at the facts… Several of his Investments earned 100X BIllion in Returns. THATS INSANE! And eventually his Anthropic Investment earned his investors Billions.
I am not advocating Mr. Bankman-Fried did nothing wrong. However? Sometimes it’s best to allow the Professionals organized by way of a selected vetted Committee to keep you professionally safe, legally safe and even legally insulated from a over reaching US Attorney trying to misuse securities test (Howey Test) and charging a Company Founder with Federal Fraud Charges. Interested in More on Mr. Bankman-Frieds Investments that soared in value. Click Below for the full Article.
In the end to be Insured or not be Insured?
Given the situation I have just explained before you. If we get really creative as Investment Professional?
It would be a good idea to take this knowledge and keep it as a strategy when placing Investments or even eliminating partially sold investments into a sub categorized Insured Portfolio of Investments that have been Eighty percent sold but that last twenty percent is meant to keep you insured for future capital market resilient growth that may be unexpected. Pure Brilliance. Make sense? Good. Your welcome.
While observing my Credit Report from having a Former Account at Nebraska Furniture Mart in the Midwest. I noticed and read some information and your Rights that will be useful to you as a fellow Consumer initiated from congress passing of the Fair Credit Reporting Act.
What you need to know!
Useful Information for Consumer Credit and How your rights within Consumer Credit
A Summary of Your Rights Under the Fair Credit Reporting Act
The federal Fair Credit Reporting Act (FCRA) promotes the accuracy, fairness, and privacy of information in the files of consumer reporting agencies. There are many types of consumer reporting agencies, including credit bureaus and specialty agencies (such as agencies that sell information about check writing histories, medical records, and rental history records). Here is a summary of your major rights under the FCRA. For more information, including information about additional rights, go to www.consumerfinance.gov/learnmore or write to: Consumer Financial Protection Bureau, 1700 G Street N.W., Washington, DC 20552.
You must be told if information in your file has been used against you. Anyone who uses a credit report or another type of consumer report to deny your application for credit, insurance, or employment – or to take another adverse action against you – must tell you, and must give you the name, address, and phone number of the agency that provided the information.
You have the right to know what is in your file. You may request and obtain all the information about you in the files of a consumer reporting agency (your “file disclosure”). You will be required to provide proper identification, which may include your Social Security number. In many cases, the disclosure will be free. You are entitled to a free file disclosure if:
a person has taken adverse action against you because of information in your credit report;
you are the victim of identity theft and place a fraud alert in your file;
your file contains inaccurate information as a result of fraud;
you are on public assistance;
you are unemployed but expect to apply for employment within 60 days.
In addition, all consumers are entitled to one free disclosure every 12 months upon request from each nationwide credit bureau and from nationwide specialty consumer reporting agencies. See www.consumerfinance.gov/learnmore for additional information.
You have the right to ask for a credit score. Credit scores are numerical summaries of your credit-worthiness based on information from credit bureaus. You may request a credit score from consumer reporting agencies that create scores or distribute scores used in residential real property loans, but you will have to pay for it. In some mortgage transactions, you will receive credit score information for free from the mortgage lender.
You have the right to dispute incomplete or inaccurate information. If you identify information in your file that is incomplete or inaccurate, and report it to the consumer reporting agency, the agency must investigate unless your dispute is frivolous. See www.consumerfinance.gov/learnmore for an explanation of dispute procedures.
Consumer reporting agencies must correct or delete inaccurate, incomplete, or unverifiable information. Inaccurate, incomplete or unverifiable information must be removed or corrected, usually within 30 days. However, a consumer reporting agency may continue to report information it has verified as accurate.
Consumer reporting agencies may not report outdated negative information. In most cases, a consumer reporting agency may not report negative information that is more than seven years old, or bankruptcies that are more than 10 years old.
Access to your file is limited. A consumer reporting agency may provide information about you only to people with a valid need — usually to consider an application with a creditor, insurer, employer, landlord, or other business. The FCRA specifies those with a valid need for access.
You must give your consent for reports to be provided to employers. A consumer reporting agency may not give out information about you to your employer, or a potential employer, without your written consent given to the employer. Written consent generally is not required in the trucking industry. For more information, go to to www.consumerfinance.gov/learnmore
You may limit “prescreened” offers of credit and insurance you get based on information in your credit report. Unsolicited “prescreened” offers for credit and insurance must include a toll-free phone number you can call if you choose to remove your name and address from the lists these offers are based on. You may opt-out with the nationwide credit bureaus at 1-888-5-OPTOUT (1-888-567-8688).
The following FCRA right applies with respect to nationwide consumer reporting agencies:
CONSUMERS HAVE THE RIGHT TO OBTAIN A SECURITY FREEZE
You have a right to place a “security freeze” on your credit report, which will prohibit a consumer reporting agency from releasing information in your credit report without your express authorization. The security freeze is designed to prevent credit, loans, and services from being approved in your name without your consent. However, you should be aware that using a security freeze to take control over who gets access to the personal and financial information in your credit report may delay, interfere with, or prohibit the timely approval of any subsequent request or application you make regarding a new loan, credit, mortgage, or any other account involving the extension of credit.
As an alternative to a security freeze, you have the right to place an initial or extended fraud alert on your credit file at no cost. An initial fraud alert is a 1-year alert that is placed on a consumer’s credit file. Upon seeing a fraud alert display on a consumer’s credit file, a business is required to take steps to verify the consumer’s identity before extending new credit. If you are a victim of identity theft, you are entitled to an extended fraud alert, which is a fraud alert lasting 7 years.
A security freeze does not apply to a person or entity, or its affiliates, or collection agencies acting on behalf of the person or entity, with which you have an existing account that requests information in your credit report for the purposes of reviewing or collecting the account. Reviewing the account includes activities related to account maintenance, monitoring, credit line increases, and account upgrades and enhancements.
You may seek damages from violators. If a consumer reporting agency, or, in some cases, a user of consumer reports or a furnisher of information to a consumer reporting agency violates the FCRA, you may be able to sue in state or federal court
Identity theft victims and active duty military personnel have additional rights. For more information, visit to www.consumerfinance.gov/learnmore
States may enforce the FCRA, and many states have their own consumer reporting laws. In some cases, you may have more rights under state law. For more information, contact your state or local consumer protection agency or your state Attorney General. For information about your federal rights, contact:
Type of business
Contact
1.a.Banks, savings associations, and credit unions with total assets of over $10 billion and their affiliates.
a.Consumer Financial Protection Bureau 1700 G Street, N.W. Washington, DC 20552
b.Such affiliates that are not banks, savings associations, or credit unions also should list, in addition to the CFPB:
b.Federal Trade Commission Consumer Response Center 600 Pennsylvania Avenue, NW Washington, DC 20580 (877) 382−4357
2.To the extent not included in item 1 above:a.National banks, federal savings associations, and federal branches and federal agencies of foreign banks
a.Office of the Comptroller of the Currency Customer Assistance Group P.O. Box 53570 Houston, TX 77052
b.State member banks, branches and agencies of foreign banks (other than federal branches, federal agencies, and Insured State Branches of Foreign Banks), commercial lending companies owned or controlled by foreign banks, and organizations operating under section 25 or 25A of the Federal Reserve Act
b.Federal Reserve Consumer Help Center P. O. Box 1200 Minneapolis, MN 55480
c.Nonmember Insured Banks, Insured State Branches of Foreign Banks, and insured state savings associations
c.Division of Depositor and Consumer Protection National Center for Consumer and Depositor Assistance Federal Deposit Insurance Corporation 1100 Walnut Street, Box #11 Kansas City, MO 64106
d.Federal Credit Unions
d.National Credit Union Administration Office of Consumer Financial Protection (OCFP) 1775 Duke Street Alexandria, VA 22314
3.Air carriers
Asst. General Counsel for Office of Aviation Consumer Protection Department of Transportation 1200 New Jersey Avenue, SE Washington, DC 20590
4.Creditors Subject to Surface Transportation Board
Office of Public Assistance, Governmental Affairs, and Compliance Surface Transportation Board 395 E Street, SW Washington, DC 20423
5.Creditors Subject to Packers and Stockyards Act, 1921
Nearest Packers and Stockyards Division Regional Office
6.Small Business Investment Companies
Associate Administrator, Office of Capital Access United States Small Business Administration 409 Third Street, SW, Suite 8200 Washington, DC 20416
7.Brokers and Dealers
Securities and Exchange Commission 100 F Street, NE Washington,DC 20549
8.Institutions that are members of the Farm Credit System
Farm Credit Administration 1501 Farm Credit Drive McLean, VA 22102−5090
9.Retailers, Finance Companies, and All Other Creditors Not Listed Above
Federal Trade Commission Consumer Response Center 600 Pennsylvania Avenue, NW Washington, DC 20580 (877) 382−4357
Alan Greenspan the Economist who served as Chairman of the Federal Reserve Bank for Four Presidential administrations has passed away. I am incredibly saddened to learn of Mr. Greenspan’s spirit moving on from all of us. As we remember Mr. Greenspan let’s reflect on some thoughts by others who he has worked with and how his Monetary Policy Decisions will be etched in United States History.
Sadly with the Divisive Political media making sure most Americans are divided on the issues, let’s remember he was the Federal Reserve Chairman. As Federal Reserve Chair His Monetary Policies were not to be selected based on the Political influence. But rather on the Data and the Economy. His position as Federal Chairman was not secured by Undue Influence. But rather on Economics and Law.
The chair serves a four-year term after being nominated by the president of the United States and confirmed by the United States Senate; the officeholder serves concurrently as a member of the Board of Governors. The chair may serve multiple terms, subject to re-nomination and confirmation each time; William McChesney Martin (1951–1970) was the longest serving chair, with Alan Greenspan (1987–2006) second.
It’s truly impressive he was able to serve as Chairman for Four Presidential Administrations. I do believe most would agree Greenspan’s tenure is impressive.
Who was Alan Greenspan?
Alan Greenspan was an American economist who served as the 13th chairman of the Federal Reserve from 1987 to 2006. Serving many Presidential Administrations for both Democrat and Republican, He worked as a private adviser and provided consulting for firms through his company, Greenspan Associates LLC.
NPR generously rememberd Mr. Greenspan today with this click to listen.
Alan Greenspan (March 6, 1926 – June 22, 2026) was an American economist who served as the Federal Reserve’s 13th chairman from 1987 to 2006. He worked as a private adviser and provided consulting for firms through his company, Greenspan Associates LLC.
First nominated to the Federal Reserve by President Ronald Reagan in August 1987, Greenspan was reappointed at successive four-year intervals until retiring on January 31, 2006, after the second-longest tenure in the position, behind only William McChesney Martin.[1] President George W. Bush appointed Ben Bernanke as his successor. Greenspan came to the Federal Reserve Board from a consulting career. Although he was subdued in his public appearances, favorable media coverage raised his profile to a point that several observers likened him to a “rock star”.[2][3][4] Democratic leaders of Congress criticized him for politicizing his office because of his support for Social Security privatization[5][6] and tax cuts.[7]
Many have argued that the “easy-money” policies of the Fed during Greenspan’s tenure, including the practice known as the “Greenspan put“, were a leading cause of the dot-com bubble and subprime mortgage crisis (the latter occurring within a year of his leaving the Fed), which, said The Wall Street Journal, “tarnished his reputation”.[8][9] Yale economist Robert Shiller argues that “once stocks fell, real estate became the primary outlet for the speculative frenzy that the stock market had unleashed”.[10] Greenspan argued that the housing bubble was not a result of low-interest short-term rates but rather a worldwide phenomenon caused by the progressive decline in long-term interest rates – a direct consequence of the relationship between high savings rates in the developing world and its inverse in the developed world.[11]
It’s incredibly Sad that I must share the news I know will affect many in the Investment Management Space. Bulwark’s Catherine Rampell wrote elgantly,
“ALAN GREENSPAN, THE FAMOUSLY inscrutable long-time chair of the Federal Reserve, died on Monday at the ripe old age of 100. And just as his signature style was coming back in vogue, too, thanks to our new Fed chair, Kevin Warsh.”
In preparing and Visiting Many Articles Remembering Mr. Greenspan, I discovered this piece on the Brookings University website.
Donald Kohn of Brookings University wrote today on the news,
“I first got to know Alan Greenspan when he came to the Federal Reserve Board for briefings before his confirmation hearing in the summer of 1987. We worked closely together for his 18 years as chairman, especially during the first 13 of those when I was in charge of staff work on monetary policy and interacted with him every day, often multiple times. He liked to call me his mentor, and I did school him on the peculiar tribal practices of the Fed, including its Federal Open Market Committee (FOMC) where monetary policy is made. But in truth, much more learning flowed from Alan to me than vice versa.
In his discussions with staff members and fellow policymakers, Greenspan encouraged them to voice new ideas and analytical insights and to find weak points in the hypotheses he was putting forward. But those ideas, insights, and challenges needed to be backed by evidence and solid reasoning. Once when he asked me what I thought we should be doing on policy, I started my response with, “My gut tells me…” He quickly cut me off: “That’s not your gut, Don, that’s your experience and knowledge.” We had a wonderful working relationship, in which we each felt free to tell the other when he was wrong—each of us no doubt thinking he had more opportunities for that than the other.
When he took office as chairman of the Federal Reserve Board in August 1987, he realized that he and the Fed were unprepared for financial crises that might emerge, and he had staff at the Board and the New York Fed prepare a book of contingency plans for a variety of possible emergencies. On October 19, 1987, one of the contingencies in the book materialized—a sharp fall in equity prices (in fact, 22.6% in one day) that threatened the financial and economic system. To tell the truth, I don’t recall consulting that book on October 19, but Alan took the steps required to contain the damage to the financial system and minimize the effects of the crash on the economy. He supported Jerry Corrigan, then president of the New York Fed, who was (forcefully) persuading banks and securities firms that it was in their collective interest to keep credit and payments flowing and not to hoard liquidity. And Greenspan backed that up by making sure the Fed itself was meeting any increased liquidity needs of the financial system, issuing a statement that said: “The Federal Reserve, consistent with its responsibilities as the nation’s central bank, affirmed today its readiness to serve as a source of liquidity to support the economic and financial system;” that statement was often credited with helping to calm markets and end the panic. Alan was at a central banker meeting in Basel, Switzerland, on 9/11, and it took him some time to get back, but, under Roger Ferguson’s leadership, we followed the playbook he had established.”
Editor’s note:
Don Kohn, a senior fellow and holder of the Robert V. Roosa Chair in International Economics in Economic Studies at Brookings, is a 40-year veteran of the Federal Reserve; he served as a member of the Federal Reserve Board from 2002 to 2010, and as vice chair from 2006 to 2010. Read the full article here.
As much as this does sadden me as a writer to have to report Alan Greenspan has passed from complications of Parkinson’s, I have to conclude that Mr. Greenspan’s Monetary policy will live on and his Outsized Personality will live on as well. We wish you well Mr. Greenspan. R.I.P 1926-2026
Alan Greenspan
A final send off to Mr. Greenspan was in order. Thank you for visiting.
