Cigarette makers are required to put health warnings on their cigarette packages.  Maybe the Government should be required to put wealth warnings on its decisions.

Federal Reserve Bank Chairman Ben Bernanke has released a game plan for raising interest rates, and has already started to implement that decision with the Fed raising the Discount Rate on February 19th.  Other rate rises are sure to come, including rises in the Federal Funds rate—it’s just not clear when and by how much.  Rising interest rates mean lower bond valuations for outstanding bonds and higher costs to individuals and businesses carrying various kinds of debt.

The so called Bush tax cuts are scheduled to expire on December 31^st of this year.  Absent legislation (which is unlikely to come from the current dysfunctional Congress), income tax rates, capital gains tax rates, and estate tax rates will rise January 1, 2011. 

Investment accounts need to reviewed and adjusted as necessary in light of these developments. (more…)