What to do if CDs are not safe?

FDIC upped their insurance fees from banks due to more bank failures. In 2009, there are already 25 banks failures that cost some $20B. FDIC estimated that this number is rising and counting. To encounter the tide, FDIC planned to have $80B. The current policy is that FDIC insures up to $250K with each account, including CD and savings.

Generally, CDs have larger amount of balance. When banks fail, this part of impact is the most significant one. Therefore, if CD is not safe, what to do? There are a few ways to have self-insurance, upon your flavor.

If you perfer CDs, you can split one CD into a few other accounts in some reliable names. For example, you can open accounts in Wells Fargo, JP Morgan, and Bank of America as wells as some regional smaller brands. These smaller banks are not as scary as some big banks, e.g., Citi Group, and they are making tons of money from their loans.

If you don't want to stick with CDs, you can try the Treasurys and Corporate Bonds. There is no need to mention the safety of the Treasurys. But be careful about Corp Bonds. They can be from 5% to 20% yield. The higher the yield, the higher the risk too (they are junk bonds, mostly). Thus, look up banks in your area to select the investement rating bonds that with at least A ratings. The minimum investment in bonds is $1000. You can look it up from your banks or open accounts on online brokerage firms such as Etrade.

Next level of Palm: be an international player?

Palm refreshed its image at the CES with a new smart phone and long-wanted OS. Arming with these, it seems turn itself from survival mode to shining mode.
Analysts have become optimistic with the slew of previous Apple employees that re-made Palm. Will optimism last long? We will provide an indicator that Palm is really heading to investors hope it should. This is not from technical point of view (we shouldn't be too soon to surprise ourself given the New Palm is consisting of previous Apple technical staffs) and marketing point of view (only Sprint has signed for the new device, which is not available immediately yet).

We will look at Palm's international brand compared to its competitors.

Apple's iPhone are widely used in the America, Europe, and Asia. It is well branded along with other Apple devices. RIMM's blackberry has strong holds in the America and Europe. Palm, after years in survival mode, doesn't enjoy any of this international recognition. Cell phone business has become a multi-national business as competitions intensed. All major cell phone manufacturers, smart phone and conventional phone manufactures, don't hesitate to invade turfs occupied by others. Through battles, markets are re-structured and more innovative products are introduced. Palm, assuming it doesn't need to worry about its floating for the coming two years, should consider this route too.

Palm is still a weak player in this market. But they have a good timing. Apple has plenty of uncertainty to investors because of Steve Jobs' condition and Apple's future. Regardless what would be said of Mr. Cook, there must be some glitches over the transition. Palm can take advantage on their good relationship with Apple to further strengthen new phone's development. It shouldn't be surprised that Palm would release fancier products than Apple in the future. So, an internation player could be a viable argument for Palm. If so, a $40 Palm seems possible.

In the mid 2009, Plam will release the new phone to the market without disclosure of pricing. Current expectation on Palm is $20 at the year end of 2009.