Escape From Peoria

FBI probing Fannie…

2008-09-24T04:03:00.000-04:00

FBI probing Fannie…

http://www.reuters.com/article/fundsFundsNews/idUSN2341763520080924

The beginning of the most apropos headline Reuters has ever published. In an effort to simplify the U.S. economy, and the insanity surrounding it, I will use the old adage, “It's one big shit sandwich and we're all gonna have to take a bite.”

Democrat, Republican, Communist, or Libertarian, $700 billion is plenty to go around, and that is just the bailout. What effects will this have on the credit crunch, the GDP, the stock and bond markets? None. Well, not none, just none that will be noticeable. For example, most U.S. citizens won’t hear the jokes Mexicans are making about how great the peso is exchanging against the dollar.

The Chinese and Japanese are going to shit, because they’ll be sitting on over $1 trillion in U.S. debt, made nearly worthless as the national debt increases again.

Additionally, much like when Florida added the “No smoking in restaurants” amendment to the state constitution, NO FUCKING LAWS ARE ENFORCING IT! Everyone admits there’s a problem with the mortgage brokerage and securities issue, but no one has solved it. Much like a movie in which someone has been stabbed in the chest, and there is another character who can magically bring them back to life. For whatever reason, no one has bothered to pull the knife out of the dead person’s chest first!! You can bring him back to life, but he’s gonna die again when you extract that sharp piece of steal that is cleaving his aorta in half. Fix the problem, then try to resuscitate.

Last, but not least, Fannie and Freddie officers fucked up. If they had worked at Enron, charges would be pressed, and they would be found guilty. So where’s the problem? Nail their asses to the proverbial wall. Yeah, right, it’ll never happen. Why? Because, the two companies exist in order to keep the market stable, and so people feel comfortable in mortgage-based securities. If you indict the leadership, who will you get to run it in the future, and it will be run in the future. For years, private companies have wanted to compete with the two Macs, but the special tax treatments have left the two Macs nearly without competition. Why? Who has it benefited?

In short, please buckle your seatbelts, put your seat backs and tray tables in their upright and locked position, it’s about to get a little bumpy.

No loan for you!

2008-09-21T03:20:00.002-04:00

I was just reading an article yesterday about Ford offering the Fiesta in Europe that gets 65 miles per gallon. (Kiley 2008) They claim it would not be profitable here in the U.S., because it is clean diesel. I understand that diesel is more expensive than regular right now, but when put it into perspective, I think there is a market here.

If we assume the Fiesta has a 11.9-gallon tank at a national average of $4.02 per gallon, it would be $47.84 for a full tank of diesel. (DOE 2008) That tank will yield 773.5 miles. In comparison, the Toyota Prius Hybrid gets around 47 mpg, at a national average of $3.84, and the tank is 11.9 gallons for a cost of $45.70. (Edmunds.com 2008) That tank costs $2.14 less, but loses 221 miles per tank.

Based on the demand for the Prius in the U.S., I feel reasonably confident Ford could make the Fiesta work in this market.

Department of Energy. Gasoline and Diesel Fuel Update as of 15 September 2008. Retrieved on 16 September 2008, from the World Wide Web: http://tonto.eia.doe.gov/oog/info/gdu/gasdiesel.asp

Edmunds.com. 2008 Toyota Prius Base Model. (2008). Retrieved on 16 September 2008, from the World Wide Web: http://www.edmunds.com/new/2008/toyota/prius/100920099/researchlanding.html

Kiley, David. Business Week. The 65 mpg Ford the U.S. Can’t Have. (2008). Retrieved on 16 September 2008, from the World Wide Web: http://www.businessweek.com/magazine/content/08_37/b4099060491065.htm?chan=rss_topStories_ssi_5

Enough With the Drilling Talk Already

2008-07-09T18:09:00.003-04:00

Offshore oil drilling in the Gulf of Mexico is the equivalent of giving methadone to heroin addicts. It creates methadone addicts! It will not wean people off oil; it will ruin beaches, which will reduce tourism, ultimately lowering revenue and thereby tax income. It is predicted there is 18 billion barrels of crude oil under the Gulf of Mexico, and if we could access all of it, every drop, it would last 870 days, at the current 20.7 million barrels used per day. That is 2.4 years worth of oil, which would be great, except it is expected to take between 5 and 10 years to have the equipment setup to drill. Here’s the rub, if we still need oil in 5 to 10 years, the game is already lost.

In an effort to skip the middle part of the process, namely ruining the environment in order to put a Band-Aid on a wound that had better be long since healed, let’s skip to the end and reduce tax income. I know the government does not need to lose tax income, but isn’t a year or five worth of subsidies better than the long term damage that will be wrought by an “environmental accident”.

Here is my proposition, starting with the 2009 auto year, the first car manufacturer to field an entire line of electric, hybrid, or high-efficiency cars and trucks will be allowed to write off all U.S. federal and state income tax from the sale of these products and the licensing of their technologies to other companies in the following tax year. A product line is being roughly defined as the entire product offerings for retail sale, encompassing at least five styles: coupe, sedan, pickup truck, SUV/cross-over (or comparable), and one that is the company’s prerogative. None of the gasoline-powered vehicles can have less than 85 miles per gallon to qualify, while electric and hybrid must have a range of 400 miles, and no other vehicles may be sold. Additionally, consumers will be able to take a deduction on the sales tax from purchasing these vehicles.

This program will last five years, each year a different measurement will be used to determine the car company that has done the most to further the effort. For example, the 2010 product lines could be judged based on average efficiency for the total product line, and by the 2013 lines, it could be the first company to use only renewable energy sources. The key here is to create S.M.A.R.T. (specific, measurable, achievable, realistic, and timely) goals and incentives for the automotive manufactures, foreign and domestic. Additionally, by making the sales tax, tax deductible, the price comes down and the units sold will go up. Within the five years, an estimated 85% of the cars on the road would be high efficiency vehicles that will not necessarily require a completely new infrastructure immediately. However, if hydrogen stations are needed, for example, the savings on income tax will generate the funding necessary to make it happen. The results will be cleaner air, a safer environment, and a cultural shift in our dependency on oil.

Now seriously, is that so hard?

Definition of Irony

2008-04-08T23:47:00.002-04:00

Tibet's capital, Lhasa, was hit last month by Buddhist monks' protests against Chinese rule which gave way to rioting. Since then security forces have poured in to reimpose control there and in other restive Tibetan areas.

“hit”? Really? Because that’s the adjective I would use to describe a peaceful protest by Buddhist monks. It also makes it sound like the monks started the rioting. Great, so now I’m going to be paranoid when I see saffron colored robes coming my way on a dark street at night.

China accuses Tibet's exiled Buddhist leader, the Dalai Lama, of organizing the unrest. Tibet's Communist Party chief Zhang Qingli has called him a "jackal in Buddhist monk's robes."

It would seem the Chinese have been taste testing the leaded toys they’ve been shipping over here.

Chinese popular opinion backs official claims that followers of the Dalai Lama timed the unrest to disrupt the games. He has denied this and said he wants autonomy, not independence.

The next time you don’t like a story in the newspaper or on T.V., remember that in some countries that voice would be stifled…now find a way to send that reporter to that country. No, seriously, these are the “facts” as they have been reported in China. Lesson: Always try to take everything with a grain of salt, especially if there is more than one side.

China says 19 people died in the Lhasa unrest, mostly at the hands of Tibetan rioters. Representatives of the Dalai Lama say about 140 people died in broader unrest across Tibet and nearby areas, most of them Tibetans killed by Chinese security forces.

Ask yourself, which is more likely, Tibetan rioters killed 19 people in the Capitol city, or, in the burbs there were 140 people killed by security forces. Why were security forces in the suburbs, when there was rioting in the Capitol?? This doesn’t pass the sniff test.

The real point to this blog, is this:
A quick clarification for those of you who wish for a free Tibet, and are willing to riot to do so… DON’T DO IT!
If you are “Pro-Tibet” or “Pro-Dalai Lama”, please do the research necessary to discover that the Dalai Lama is a pacifist, and has been living in exile for decades in order to exist freely without conflict with China. Does he want his home back? Sure! Is he willing to hurt anyone or anything to reach that goal? No! He’s a vegetarian for goodness sake! Feel free to yell, scream, picket, or boycott, but please, have the respect to do no harm.

And for the record, I'm not backing the Tibetans because they wear robes...at least not that you can prove!
Italics added by me, quoting Chris Buckley and Thierry Leveque of Reuters: http://news.yahoo.com/s/nm/20080407/ts_nm/china_tibet_dc

Constituo - to fix

2007-12-07T21:20:00.000-05:00

ABA Daily Newsbytes, Dec. 7, 2007
CONGRESS
Senate Passes AMT FixThe Senate last night passed by an 88-5 vote a bill that would provide a one-year fix for the alternative minimum tax, but does not include a tax offset to pay for the $50 billion in revenues that would be lost. The Senate vote is at odds with the House, which passed legislation (H.R. 3996) Nov. 9 that would provide an AMT fix and extend a number of expiring tax-break provisions, but would offset them mainly by closing tax loopholes for hedge funds, equity funds and other financial partnerships. The House bill also would permanently exclude mortgage debt forgiveness from individual taxpayers' income, extend the deductibility of private mortgage insurance until 2015, and delay from 2011 to 2012 the effective date of the ABA-opposed 3 percent withholding provision. For more information, contact ABA's Larry Seyfried.

The American Heritage Dictionary defines “Fix” in a number of ways, three of which make sense in context, but I leave the reader to discern which is actually meant.
7.
To correct or set right; adjust: fix a misspelling; fix the out-of-date accounts.
To restore to proper condition or working order; repair: fix a broken machine.
9.
To spay or castrate
11.
To influence the outcome or actions of by improper or unlawful means: fix a prizefight; fix a jury.

As usual, anytime I read something this stunningly stupid, I am left with questions. First, how the hell did 88 senators think this was good enough to pass without, oh, I don’t know, offsetting US$50 billion?? When was the last time 88 senators agreed on anything? This alone should have set off warning lights! And my penultimate question, where were the other seven? Because when the senate is voting on a bill that is going to leave a $50 billion question mark, I want my representative there (alas, mine was there…bang up job, Sparky).

Since it is so easy in this case, I would like to give a hearty pat on the back to the following: Carper (D-DE), Conrad (D-ND), Dorgan (D-ND), Feingold (D-WI), and Whitehouse (D-RI). The five outstanding legislators who thought enough to say, “Nay”.

Who are the seven no-shows, you ask. We have some familiar names that seemingly have other, more important matters, to attend to. (Are they still being paid?) Biden (D-DE), Clinton (D-NY), Dodd (D-CT), McCain (R-AZ), Obama (D-IL), and Voinovich (R-OH).
Even athletes have to show-up to be paid their insane amounts of money…

Ribbit

A Bit Lighter - And New Stuff!

2007-12-01T22:11:00.000-05:00

Alright, so that first blog was admittedly weighty. As penance, I have taken time out of my busy work/school schedule (read: the wife was out of the house all day, so I was left to my own devices) to rev up the site a bit.

Please note the links to the right. None of these should be taken any more seriously than they deserve, but they are where I spend decompression time after I do homework, before I go to bed.

The list begins with personal blogs at the top, followed by my “geek streak” sites, then food, wine, beer, etc… Now, if we are truly judged by the company we keep, then I am in good shape. However, if we are judged by our frequented sites or podcasts, well, it would seem that I am a crazed, geeky, globe-hopping, artistic, social liberal, overweight, alcoholic, gear-head in a kilt. Oddly, not too far from the truth…six on one hand, half-dozen on the other. This should’ve been my first post!

Ok, but to bring it back around to a serious issue: the kilt. I have a real problem with the mainstream view of the kilt in America. It’s not a skirt, but even if it were, so effing what? It’s comfortable to wear, nearly all year long. It can be formal or casual. My utilikilt has pocket space enough to carry nearly a case of beer, though a strong belt is recommended. I don’t understand what the big deal is. I can only come up with two dilemmas that would cause a man to not wear a kilt, nor favor another man wearing one. First, if worn in “authentic” fashion on a hot day, it may be that if a lass were to see what was under the kilt, she might think you were unseasonably chilly all the time (a “wee” problem, if you will). The second issue, if a man is worried he might grow uncomfortably curious as to what was under another man’s kilt, as he did in the gym showers at school (homosexual tendencies, of the straight(ish) man). In either case, get over it! Real Men Wear Kilts!

I would like my reader(s) to pay particular attention to the fact that while I had ample opportunity, no caber jokes were made in the previous paragraph. Thank you, thank you very much.

-Ribbit

Giving Frogs a Bad Name

2007-11-28T13:32:00.000-05:00

I generally use other people’s soapboxes to vent, after they pick a topic, but I had to bring this one up myself.
http://www.voanews.com/english/2007-11-28-voa22.cfm
French President Calls Rioting 'Unacceptable'
Really?? Rioting is “Unacceptable”?? Two nights of unrest, injuring 120 police officers is unacceptable?? Well, at least they have taken 20 people into custody!
I was honestly thinking Sarkozy was going to be different, better in someway than his predecessors. However, the last line in the article, (in reference to the last time this happened, 2005) “but this time police say the youths are better armed and more violent,” makes me wonder if France isn’t going to actually surrender to itself.

-Ribbit