Daily Reading: January 6, 2008

I, with the council of a friend, have been saying that oil prices are unsustainably low. Here is an AP article that agrees.

Jeff Skilling is going to receive a new sentence. AP. In my opinion, the new sentence should be an abrupt removal of his male anatomy! If you haven't read "The Smartest Guys in the Room: The Amazing Rise and Scandalous Fall of Enron" it is well worth the effort. Here is a link to purchase it on Amazon.com.

Another book that I highly recommend, and just finished re-reading over the holiday, is "Liar's Poker: Rising Through the Wreckage on Wall Street" by Michael Lewis. It is excellent. You can buy it here.

A German billionaire, overcome by the financial crisis, killed himself today. Foxnews.com

While I'm on the topic of good books, each of the books in the 'Must Read' section of this blog should be in every investor's library. Follow the links to purchase them.

The Fed thinks we are in the midst of a long recession and inflation could remain "uncomfortably low" for a long time. WSJ. As if it's not obvious.

Bank of America's CEO, Ken Lewis, thinks that top management shouldn't receive bonuses for 2008. WSJ. This is old news to me. Management teams at large American corporations have been over paid for a couple of decades. The marginal cost of retaining a high-profile CEO is much, much, much, much greater than the marginal benefit received. Obviously, the implosion of Wall Street highlights my point.