No post today, nor Word of the Day. I am consolidating some prior writings into a pamphlet I intend to publish in September.
Krypto found some weak signals, but for now, I will wait.
Tuesday, August 30, 2011
Monday, August 29, 2011
Words
"Hamartia" - noun [$10]
Hamartia means the fatal flaw leading to the destruction of the tragic hero or heroine.
Sentence: What is the hamartia of Hamlet? I argue a general greed created a lack of focus permitting multiple conflicting objectives: revenge against his father's murderer, desire to bring his mother down, and desire for the throne. The lack of focus caused him to dither and delay, make blunders, and miss opportunities. Unable to focus on a single objective, he completely bollixed up the entire effort.
Hamartia means the fatal flaw leading to the destruction of the tragic hero or heroine.
Sentence: What is the hamartia of Hamlet? I argue a general greed created a lack of focus permitting multiple conflicting objectives: revenge against his father's murderer, desire to bring his mother down, and desire for the throne. The lack of focus caused him to dither and delay, make blunders, and miss opportunities. Unable to focus on a single objective, he completely bollixed up the entire effort.
Friday, August 26, 2011
No QE3
As there was NOT an ocean liner named Queen Elizabeth III, so there should not be a Quantitative Easing III.
Why?
There is no need for it. The economy now has all the monetary base it needs to grow and interest rates (short and long term) are low enough. Low interest rates are not preventing any profitable investments.
What Needs to Be Done?
The problems are now all policy. Loan growth is low because there are massive new, tighter restrictions on getting a loan. Mortgage refinancings are far below what should be occurring because good quality borrowers are prevent from obtaining a new loan, by either over restrictive credit policies or by their existing loan being "underwater". FDIC rules for management of banks causes real loans to be examined much harder than speculations in securities.
In sum, the problems are ALL now policy problems under the purview of Obama. And he is doing nothing ... need I refer to the old fable about Nero fiddling while Rome burns?
Partial Solutions.
1. FNMA and Freddie Mac should lower credit standards to permit refinancings of ANY loan currently not in default. I mean ANY loan, regardless of credit score or low-to-value ratio. After all, the government ALREADY has that risk, and the loan gets better IF the debt service payments fall.
2. Force banks to make real loans and not speculate in securities. The banking system does NOT exist to faciliate the speculation in securities or derivatives or any similar thing. It exists to make LOANS: old-fashioned commercial and industrial LOANS.
All this is rather obvious. One wonders why these have not been done. After all, it's 2011, not 2009. Policymakers have had two years to "study" the problems. They have failed. Maybe those people should have their pay and benefits cut for "failure to achieve objectives".
Word of the Day
"Fugacious" - adjective [$10] literary
Fugacious means fleeting, evanescent, hard to capture or keep.
Sentence: Fat fees and fugacious fame of hedge fund managers is a fraud on the foolish rich. Example: John Pauson's flagship fund is down 38% this year. So much for his "genius". He and most of those knaves just roll the dice with OPM, get lucky one year and the next year loses. Sigh ...
Why?
There is no need for it. The economy now has all the monetary base it needs to grow and interest rates (short and long term) are low enough. Low interest rates are not preventing any profitable investments.
What Needs to Be Done?
The problems are now all policy. Loan growth is low because there are massive new, tighter restrictions on getting a loan. Mortgage refinancings are far below what should be occurring because good quality borrowers are prevent from obtaining a new loan, by either over restrictive credit policies or by their existing loan being "underwater". FDIC rules for management of banks causes real loans to be examined much harder than speculations in securities.
In sum, the problems are ALL now policy problems under the purview of Obama. And he is doing nothing ... need I refer to the old fable about Nero fiddling while Rome burns?
Partial Solutions.
1. FNMA and Freddie Mac should lower credit standards to permit refinancings of ANY loan currently not in default. I mean ANY loan, regardless of credit score or low-to-value ratio. After all, the government ALREADY has that risk, and the loan gets better IF the debt service payments fall.
2. Force banks to make real loans and not speculate in securities. The banking system does NOT exist to faciliate the speculation in securities or derivatives or any similar thing. It exists to make LOANS: old-fashioned commercial and industrial LOANS.
All this is rather obvious. One wonders why these have not been done. After all, it's 2011, not 2009. Policymakers have had two years to "study" the problems. They have failed. Maybe those people should have their pay and benefits cut for "failure to achieve objectives".
Word of the Day
"Fugacious" - adjective [$10] literary
Fugacious means fleeting, evanescent, hard to capture or keep.
Sentence: Fat fees and fugacious fame of hedge fund managers is a fraud on the foolish rich. Example: John Pauson's flagship fund is down 38% this year. So much for his "genius". He and most of those knaves just roll the dice with OPM, get lucky one year and the next year loses. Sigh ...
Thursday, August 25, 2011
A Word for Thursday
Word of the Day
"Exanimate" - adjective [$10]
Exanimate means 1. lacking animation; 2. lifeless or appearing lifeless.
Sentence: The squandering of the economic stimulus of 2009 caused the US growth rebound to be stillborn, and hence our current exanimate economic growth. All thanks to our P-O-R leaders in the Dark City.
[NB: P-O-R = Pelosi-Obama-Ried]
"Exanimate" - adjective [$10]
Exanimate means 1. lacking animation; 2. lifeless or appearing lifeless.
Sentence: The squandering of the economic stimulus of 2009 caused the US growth rebound to be stillborn, and hence our current exanimate economic growth. All thanks to our P-O-R leaders in the Dark City.
[NB: P-O-R = Pelosi-Obama-Ried]
Wednesday, August 24, 2011
An Epicurean Delight
Grand Jean displayed his Epicurean skills in the wilderness last week at a campsite deemed "Slippery Rock" camp. Boreas, the North Wind, had forced us to ground early after the last crossing of Le Grand Portage, and Boreas continued to blow all afternoon. Grand Jean reached into one of his two giant LRP packs to pull out the ingredients for making a fine sandwich for himself and Big Al.
I noticed the smell and ambled over. Drool began to drip from my mouth as the smell of fried Spam wafted over me. Grand Jean was making a few grilled Spam and cheese sandwiches ... with real butter. OMG, what a masterpiece!!!
Big Al offered me a small quarter sandwich to taste, and the taste exceeded my already lofty expectations. The sandwich bread was finely grilled with real butter; two slices of Kraft American singles bracketed a Spam single slice [these are available in supermarkets in my hometown in Ohio.] I ate it slowly, savoring its exquisite flavor ... a 10! This will go onto my lunchtime menu back at the bunker.
Grilled Spam and Cheese
Two slices of good bread
Butter
One slice of Spam
Two slices of American cheese [or Velveeta cheese]
Fry the spam until a bit crispy. Put a slice of cheese onto the bottom slice of bread, add the Spam slice and top with the second slice of cheese. Spread a bit of butter onto the bread on both sides of the sandwich and put into the skillet. When one side is browned, flip over and brown the other side. When it's brown, you are done. Eat and relish its wonderful flavor.
Word of the Day
"Enervate" - verb, transitive [$10]
Enervate means 1. to lessen the vitality or strength of; 2. to reduce the mental or moral vigor. Enervate is a rough antonym of energize.
Sentence: Wind enervates canoeists: it saps the canoe's forward momentum and blows the canoe off course. Wind is the canoeists' bane.
I noticed the smell and ambled over. Drool began to drip from my mouth as the smell of fried Spam wafted over me. Grand Jean was making a few grilled Spam and cheese sandwiches ... with real butter. OMG, what a masterpiece!!!
Big Al offered me a small quarter sandwich to taste, and the taste exceeded my already lofty expectations. The sandwich bread was finely grilled with real butter; two slices of Kraft American singles bracketed a Spam single slice [these are available in supermarkets in my hometown in Ohio.] I ate it slowly, savoring its exquisite flavor ... a 10! This will go onto my lunchtime menu back at the bunker.
Grilled Spam and Cheese
Two slices of good bread
Butter
One slice of Spam
Two slices of American cheese [or Velveeta cheese]
Fry the spam until a bit crispy. Put a slice of cheese onto the bottom slice of bread, add the Spam slice and top with the second slice of cheese. Spread a bit of butter onto the bread on both sides of the sandwich and put into the skillet. When one side is browned, flip over and brown the other side. When it's brown, you are done. Eat and relish its wonderful flavor.
Word of the Day
"Enervate" - verb, transitive [$10]
Enervate means 1. to lessen the vitality or strength of; 2. to reduce the mental or moral vigor. Enervate is a rough antonym of energize.
Sentence: Wind enervates canoeists: it saps the canoe's forward momentum and blows the canoe off course. Wind is the canoeists' bane.
Tuesday, August 23, 2011
Bashing Buffet
Warren Buffet must be either a fool or a knave. Or maybe he's just ready for the dog track.
While I was in the Canadian wilderness, Warren Buffet said the rich should pay more taxes. No doubt some rich should pay more, particularly the hedge fund and private equity fund managers ... and Warren Buffet himself.
Buffet gets most of his income and wealth from stock in Berkshire Hathaway, which he has held for many years, thus qualifying for long term capital gains tax treatment on whatever shares he sells. That rate is 15%.
But does he even pay that? Nope.
He donates stock to charities such as the Gates Foundation and pays nothing - the gain is never realized for his tax return. And he even gets a tax deduction on the full value of the stock donated. That deduction offsets whatever other ordinary income which would be taxed at rates as high as 35%. In summary, he pays no gain on the stock donated, yet gets a full value tax deduction for its value: that's free money.
And he says he'll leave all his wealth to the Gates Foundation, thus avoiding any estate taxes. No capital gains taxes will ever be paid.
Warren Buffet is shirking paying his fair share to support the government, including the elderly and the poor and for national defense and for all the other services which benefit him
He's a freeloader.
How can those loopholes be closed?
Make all capital gains be realized and due when any transfer of the stock occurs, whether on donation or on death. Do not permit those taxes (already low) to be offset by charitable donations.
Then billionaire freeloaders would be forced to pay their fair share.
Word of the Day
"Hie" - verb, intransitive and / or reflexive [$10] Shakespeare. Archaic and poetic.
Hie means go quickly
Sentence: Warren, hie to the dog track, you old hypocrite.
While I was in the Canadian wilderness, Warren Buffet said the rich should pay more taxes. No doubt some rich should pay more, particularly the hedge fund and private equity fund managers ... and Warren Buffet himself.
Buffet gets most of his income and wealth from stock in Berkshire Hathaway, which he has held for many years, thus qualifying for long term capital gains tax treatment on whatever shares he sells. That rate is 15%.
But does he even pay that? Nope.
He donates stock to charities such as the Gates Foundation and pays nothing - the gain is never realized for his tax return. And he even gets a tax deduction on the full value of the stock donated. That deduction offsets whatever other ordinary income which would be taxed at rates as high as 35%. In summary, he pays no gain on the stock donated, yet gets a full value tax deduction for its value: that's free money.
And he says he'll leave all his wealth to the Gates Foundation, thus avoiding any estate taxes. No capital gains taxes will ever be paid.
Warren Buffet is shirking paying his fair share to support the government, including the elderly and the poor and for national defense and for all the other services which benefit him
He's a freeloader.
How can those loopholes be closed?
Make all capital gains be realized and due when any transfer of the stock occurs, whether on donation or on death. Do not permit those taxes (already low) to be offset by charitable donations.
Then billionaire freeloaders would be forced to pay their fair share.
Word of the Day
"Hie" - verb, intransitive and / or reflexive [$10] Shakespeare. Archaic and poetic.
Hie means go quickly
Sentence: Warren, hie to the dog track, you old hypocrite.
Monday, August 22, 2011
A Portage Too Far
I ache. I still feel tired.
The wilderness canoe and camping trip was exhausting, as an ambitious plan seems to have angered the wind gods to push back a bit, and make the 'plan" far too much. As Odysseus was blown off course for years, having angered Poseidon (ruler of the sea and waters) and Aeolus (ruler of the winds), so were the Epicurean campers delayed and buffeted, first by Eurus (East wind god), then by Boreas, (North wind god) and at the end by Zephyrus (West wind god). Only Notus (South wind god) was not angry.
Poseidon was particularly angry, as he caused the fish to refuse to bite and even freed fish that were caught by Les Grands Pêcheurs (the great fishermen). Our only fish dinner was from the generosity (and overabundant catch) of another fisherman.
The furthest portage - aka Le Grand Portage - was about two miles long. Sure, over flat ground carrying a 60 lb. pack would be relatively easy. But imagine doing that after a three hour paddle in your canoe, then having the first 200 yards straight up a rocky path, followed by a thousand yards of rocky twisting trail up and down. Then you have to return and do it again. Add it up: almost six miles, four with a 60 lb. pack and almost three over very rugged paths.
You think: but the far wilderness you reached must have been wonderful. Uh ... nope - it was just another lake and the best two camp sites were taken. The fish were reluctant to bite. The only good thing about the area was that we could see an osprey nest on the island where we camped with a fledgling on top of a high, dead tree. The osprey would swoop over the lake, catch a fish & return to feed its young. That was cool.
Too much work, too little fun. A very poor work/fun ratio.
On the bright side are two items.
First, I survived. The other Epicurean campers did not have to hold a Viking funeral for me, pushing a burning canoe (charged to my credit card) into the lake in a blaze of glory.
Second, I learned a marvelous recipe from Grand Jean. He was surely the first class Epicurean camper, making several fine omelettes [with real eggs!!!] for breakfast or lunch and sipping Irish whisky in the evening. The recipe he showed me was so special that I'll save it for tomorrow. He made it for Big Al and himself as they were experimenting with various camping techniques jointly in preparation for a trip to northern Minnesota.
Actions
None. The model has a weak sell signal for real estate stocks, caused likely by the stability of the TIAA real estate fund. I will wait.
Word of the Day
"Nadir" - noun [$10]
Nadir means the lowest point.
Sentence: The psychological nadir of Le Grand Portage was not the physical hardship of the 200 yard climb with a 60 lb pack, but was the crowd of people at the portage at the very end: half a dozen canoes and over a dozen people in a small landing point made it seem like Grand Central Station in the wilderness. Ugh !
The wilderness canoe and camping trip was exhausting, as an ambitious plan seems to have angered the wind gods to push back a bit, and make the 'plan" far too much. As Odysseus was blown off course for years, having angered Poseidon (ruler of the sea and waters) and Aeolus (ruler of the winds), so were the Epicurean campers delayed and buffeted, first by Eurus (East wind god), then by Boreas, (North wind god) and at the end by Zephyrus (West wind god). Only Notus (South wind god) was not angry.
Poseidon was particularly angry, as he caused the fish to refuse to bite and even freed fish that were caught by Les Grands Pêcheurs (the great fishermen). Our only fish dinner was from the generosity (and overabundant catch) of another fisherman.
The furthest portage - aka Le Grand Portage - was about two miles long. Sure, over flat ground carrying a 60 lb. pack would be relatively easy. But imagine doing that after a three hour paddle in your canoe, then having the first 200 yards straight up a rocky path, followed by a thousand yards of rocky twisting trail up and down. Then you have to return and do it again. Add it up: almost six miles, four with a 60 lb. pack and almost three over very rugged paths.
You think: but the far wilderness you reached must have been wonderful. Uh ... nope - it was just another lake and the best two camp sites were taken. The fish were reluctant to bite. The only good thing about the area was that we could see an osprey nest on the island where we camped with a fledgling on top of a high, dead tree. The osprey would swoop over the lake, catch a fish & return to feed its young. That was cool.
Too much work, too little fun. A very poor work/fun ratio.
On the bright side are two items.
First, I survived. The other Epicurean campers did not have to hold a Viking funeral for me, pushing a burning canoe (charged to my credit card) into the lake in a blaze of glory.
Second, I learned a marvelous recipe from Grand Jean. He was surely the first class Epicurean camper, making several fine omelettes [with real eggs!!!] for breakfast or lunch and sipping Irish whisky in the evening. The recipe he showed me was so special that I'll save it for tomorrow. He made it for Big Al and himself as they were experimenting with various camping techniques jointly in preparation for a trip to northern Minnesota.
Actions
None. The model has a weak sell signal for real estate stocks, caused likely by the stability of the TIAA real estate fund. I will wait.
Word of the Day
"Nadir" - noun [$10]
Nadir means the lowest point.
Sentence: The psychological nadir of Le Grand Portage was not the physical hardship of the 200 yard climb with a 60 lb pack, but was the crowd of people at the portage at the very end: half a dozen canoes and over a dozen people in a small landing point made it seem like Grand Central Station in the wilderness. Ugh !
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