link
"The vast new left-wing conspiracy sets its tone every morning at 8:45 a.m., when officials from more than 20 labor, environmental and other Democratic-leaning groups dial into a private conference call hosted by two left-leaning Washington organizations."
"has served as the launching ground for attacks on critics of Obama’s policy proposals."
The White House morning staff meeting at 7:30. Is there contact between the White House and Podesta's group?
Friday, March 13, 2009
Cap and Trade
The effects of the Cap and Trade for C02 has already started. Many electric companies are abandoning plans (some in the works for 10 years) for coal plants. You might think this is good. But this might result in power shortages in the future. Those that need energy will buy generators that use diesel or gasoline. Will that produce more C02 than the coal plants (especially if you include the cost of transportation)?
The costs of cap and trade will increase energy prices. Thus manufacturing will move to Mexico, India and China where there are less environmental regulations. Will this result in even more C02 released than it remained in the U.S. without cap and trade?
The costs of cap and trade will increase energy prices. Thus manufacturing will move to Mexico, India and China where there are less environmental regulations. Will this result in even more C02 released than it remained in the U.S. without cap and trade?
Friday, March 6, 2009
Poll Results
DO YOU FAVOR THE STIMULUS BILL?
YES (WITHOUT THE PORK): 50%, YES 33%, NO 16% (3-2-1)
SHOULD GEITHNER BE APPROVED?
NO - 66% YES -33% (2-1)
WILL TROOPS BE OUT OF IRAQ BY JUNE, 2010?
YES - 66% NO - 33% (4-2)
WILL GUANTANAMO BE CLOSED BY FEB 2010?
YES - 83%, NO - 16% (5-1)
MONEY SHOULD GO TO
Green Energy Infrastructure - 83%,
Old Auto Industry -16% (5-1)
YES (WITHOUT THE PORK): 50%, YES 33%, NO 16% (3-2-1)
SHOULD GEITHNER BE APPROVED?
NO - 66% YES -33% (2-1)
WILL TROOPS BE OUT OF IRAQ BY JUNE, 2010?
YES - 66% NO - 33% (4-2)
WILL GUANTANAMO BE CLOSED BY FEB 2010?
YES - 83%, NO - 16% (5-1)
MONEY SHOULD GO TO
Green Energy Infrastructure - 83%,
Old Auto Industry -16% (5-1)
Thursday, March 5, 2009
Why the market continues to fall.
The Dow is at 6,594.44. The S&P 500 is 682.55. Obama's hope is not caring over to wall street. So why has the market fallen so far?
(1) Panic. People see the market fall, and try to get out while they still can.
(2) Value. Dividends are being cut and stocks are being nationalized. The recession makes the value of companies in the near future less valuable. The increase in the capital gain tax from 15% to 20%, a 33% increase, makes holding a stock less valuable.
(3) Cap and Trade. This would increase the cost of electricity (and thus the cost of production) for every company. Additional, those companies that produce C02 (like steal and electric companies) will be hard hit.
(4) Budget deficit. The massive spending proposed by the Obama administration and Congress will result in inflation in future years. This makes the value of dollar in future less valuable. Thus foreigners are less likely to buy stocks.
(5) Uncertainty. The massive changes in government makes investors uncertain on what new changes may be coming. Investors do not like uncertainty.
(6) Baby Boom. As the baby boomers move into retirement, they will need to sell their stocks. Without a new source of investors, the market will continue to be depressed.
Things that could happen to raise stock values. (1) The recession/depression will end. Increasing corporate profits and the ability to increase dividends. (2) The Republicans will take over and decrease the capital gains taxes. (3) Innovation. New companies/products arise that create value. (4) Global instability. Foreign capital rush to the U.S. for safety. (4) Global warming is found to be wrong.
(1) Panic. People see the market fall, and try to get out while they still can.
(2) Value. Dividends are being cut and stocks are being nationalized. The recession makes the value of companies in the near future less valuable. The increase in the capital gain tax from 15% to 20%, a 33% increase, makes holding a stock less valuable.
(3) Cap and Trade. This would increase the cost of electricity (and thus the cost of production) for every company. Additional, those companies that produce C02 (like steal and electric companies) will be hard hit.
(4) Budget deficit. The massive spending proposed by the Obama administration and Congress will result in inflation in future years. This makes the value of dollar in future less valuable. Thus foreigners are less likely to buy stocks.
(5) Uncertainty. The massive changes in government makes investors uncertain on what new changes may be coming. Investors do not like uncertainty.
(6) Baby Boom. As the baby boomers move into retirement, they will need to sell their stocks. Without a new source of investors, the market will continue to be depressed.
Things that could happen to raise stock values. (1) The recession/depression will end. Increasing corporate profits and the ability to increase dividends. (2) The Republicans will take over and decrease the capital gains taxes. (3) Innovation. New companies/products arise that create value. (4) Global instability. Foreign capital rush to the U.S. for safety. (4) Global warming is found to be wrong.
Wednesday, March 4, 2009
Obama and the Wizard of ID
"Margaret Thatcher: Socialism Eventually Runs Out of Money"
"The problem with socialism is you eventually run out of other people's money"
Sunday, March 1, 2009
Tuesday, February 24, 2009
Wealth and Investments I
What is wealth? In essence, wealth is the ability to exchange something you have for something you want. Value is what someone else will give you for your assets. If you have a stack a 100 pieces of paper, you don't know what it is worth until you try to exchange them. That stack may be napkins, $1 bills or $100 bills. If you have food on your face, that napkin may be more of use than the $1 bill. But that $1 bill could be exchanged for 20 napkins at the right place. So the value of something depends on the utility, time and place.
Money makes it easier to define wealth. But wealth is fleeting, which is why those of great wealth diversify. That painting you bought for $5 million might not fetch a buyer for $3 million. That $5 million in the bank may be devalued by inflation. That farm you own may be wiped out be a flood. Which is why those of great wealth pool their risks together. They buy insurance and sell portions of their assets to others.
A good investment is one that can be converted quickly, a liquid asset. It must have a means of establishing its value. Currency is traded frequently to establish its value among other currencies. It is easier to determine the value of a share of stock which is trading a million shares a day than a house which has only a few perspective buyers and exchanged in the frequency of years.
Money makes it easier to define wealth. But wealth is fleeting, which is why those of great wealth diversify. That painting you bought for $5 million might not fetch a buyer for $3 million. That $5 million in the bank may be devalued by inflation. That farm you own may be wiped out be a flood. Which is why those of great wealth pool their risks together. They buy insurance and sell portions of their assets to others.
A good investment is one that can be converted quickly, a liquid asset. It must have a means of establishing its value. Currency is traded frequently to establish its value among other currencies. It is easier to determine the value of a share of stock which is trading a million shares a day than a house which has only a few perspective buyers and exchanged in the frequency of years.
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