Tuesday, February 15, 2011


Yes, for the hegemonic classes (aka rich & powerful) and their bureaucratic and media allies (aka co-conspirators).

No, for the common man and woman. They are still bleeding and running harder on the treadmill, getting nowhere. When they falter, they get tossed into the pit.

Barry is providing no leadership. Why should we be surprised? He was never a leader for anything anywhere. He's reverted to form, playing an inside game with his Beltway buddies on the budget. Engage the people? No way for Barry - he despises the common man & woman.

Private equity scam artists are back, milking the tax deduction for interest expense for debt capital. That deduction should be gutted except for loans directly tied to business activity such as inventory loans.

The financial media spends half their air time buttkissing the billionaires and CEOs who lay off the common man to get a bigger bonus. They should be kicking their butts, as I do as often as possible.

Has anyone noticed that January provided many record low temperatures for many places worldwide? Uh ... under the global warming claims of the "scientists" for the past 20+ years, that should not be happening. The billions handed to them for "research" has been wasted.

Re investments, I am still riding the bull elephant; no waterhole in sight yet. My strategy is still to sell high, buy low, OR buy low, sell high, for each asset class.

Here's a tax strategy I am implementing a bit over time. If one is an AMT taxpayer, the effective Federal rate is 28%, which is as low a rate as I've seen in my lifetime, harkening back to the Reagan tax reform rates of 1986. Barring a massive tax reform (which I support), rates are going up. Why not accelerate income to now, pay taxes that low rate, and invest money in municipal bonds? In some ways this is the Roth conversion strategy, but without the Roth IRA and its restrictions.

Example: draw $10,000 from a retirement account (if no tax penalty rate), pay 28% tax, buy municipal bonds at 5%. One receives $360/year tax free. If one leaves the money in the retirement account, investing at 5% and withdrawing the income, the result is the same $360 aftertax income. BUT by doing it NOW, one diversifies against the risk of higher taxes in the future.

If one's investments are heavily weighted to retirement accounts AND one can withdraw money without a 10% penalty tax, it make sense to do a little bit of that every year to balance one's investments and lock in today's low tax rates nd high tax free bond rates.

Word of the Day

"Louche" - adjective [$10] pronounded 'loosh', with the 'oo' long as in boot. [from French word meaning 'squinting']
Louche means disreputable, shifty.
Sentence: Are not most DC politicians louche douches?


Spin-em said...

No way for Barry - he despises the common man & woman.

why do you say that bunks?..

Spin-em said...

Bunk will you be watching the Daytona 500? lol

Bunkerman said...

Has Barry done one thing to improve their lives?

He likes to be adulated and powwows with the DC set; vacations in Hawaii, and then there's the quote:

“You go into these small towns in Pennsylvania and, like a lot of small towns in the Midwest, the jobs have been gone now for 25 years and nothing’s replaced them. And it’s not surprising, then, they get bitter, they cling to guns or religion or antipathy to people who aren’t like them or anti-immigrant sentiment or anti-trade sentiment as a way to explain their frustrations.”

Barry doesn't give a crap for the real problems in these areas.

Bunkerman said...

I'm not a stock car fan ... or a fan of any auto racing.

Give me a good wrestling match or a rubgy match & I'll watch.

Till then, I'm waiting for the snow to clear off the MG ranges.

Spin-em said...

In your opinion...Do you think Regis will be Donny Trumps running mate??

Bunkerman said...

In your opinion...Do you think Regis will be Donny Trumps running mate??

uh ...

why would anyone think a scam artist - serial defaulter - like Donald Trump is worthy of being more than a county commissioner is beyond me.

Spin-em said...

loooool...boy oh boy.. Donny Trump musta cost you a bonus or something??...the vituperation is a lil over the top.....