Not A Mystery
Finance
Respect For The US Senate, Now An Oxymoron
As we approach April 15th., otherwise known as Tax Day, it’s time once again to mention the staggering corruption of the US Senate, the world’s ‘greatest deliberative body’. For well over three years (!) there has been an attempt to get rid of a loophole in the tax code granting hedge fund managers a lower … Continue reading
Children Should Be Taxed And Not Heard
As far as I’m concerned, all babies look like Winston Churchill. I’ve never thought of babies as contributing members of society. But now that’s changed. Parents aren’t just raising adorable kids. They are also producing little human capital units that are likely to grow up, get jobs, pay taxes and raise little human capital units … Continue reading
You Can Call A Spade A Spade, But You Still Have To Find It
The usual suspects are shocked, shocked they say, over last week’s annoncement by ATT and several other large corporations that they would have to take (non-cash) write-offs because of new rules in ‘ObamaCare’ taking effect immediately. In ATT’s case the number was $1 billion. The charges relate to prescription-drug benefits for retirees. Companies that provide … Continue reading
Investors Seek A Perfect “Co-Owner” Before The Music Stops
The world needs a new Country and Western song updated for today’s investor, along the lines of Mickey Gilley’s “Don’t The Girls All Get Prettier At Closing Time“ Our song might go platinum, all because there’s a new wrinkle (sic) on the menu of get-rich quick schemes. Billions of dollars in corporate bonds sold to retail … Continue reading
Serfs, Slaves And The Health Care Debate
I wasn’t always a fan of Paul Krugman, but that was when I still thought El Rushbo spoke only the truth. F2U Rio Linda: he doesn’t. In any event, the New Yorker magazine just published a great profile of Krugman the person, which also sheds light on Krugman the (Nobel Prize winning) economist. And buried in that article … Continue reading
My Financial Valentines
Of course Leslie is my Real Valentine. But in the world of Runner-Ups, I have to nominate my favorites. Even though it’s Don’t Ask and Don’t Tell, I can’t hold back, my Guys are Ben and Hank. After reading “On the Brink: Inside the Race to Stop the Collapse of the Global Financial System” by … Continue reading
Have Your PhD With Fries And A Coke, All On Us
The Chinese seem not inclined to clown around with the value of the renminbi. Meanwhile the administration is trying to apply pressure on them to revalue their currency, “which President Obama says is kept at an artificially low level to give China an unfair advantage in selling its exports”. From the NY Times, A senior … Continue reading
A Great Tax Idea Whose Time Hasn’t Come, Yet
A few years ago when talking with a Brit friend I learned that the UK’s equivalent of our IRS, known as the Inland Revenue, filled out his tax returns automatically without even asking his permission. Wow, I thought, this is socialism to the extreme! But when you think about it for a second, perhaps it’s … Continue reading
Strategic Defaults And Altruism Can Only Take You So Far
Normally what would make an interesting blog post is the connection of two seemingly unrelated events. But that’s not happening today. Instead we have two non-intuitive findings that remain just that … non-intuitive. Our first discovery is a conundrum. Why don’t more people who are ‘underwater’ on their mortgages, and can’t get their lender to negotiate … Continue reading
Is Big Mac 2010 Still The Gold Standard?
Time flies. It’s the Economist Big Mac Index for 2010. That’s pronounced “Twenty-Ten” F2u Rio Linda. Just to review, The Economist has been publishing their (not so tongue-in-cheek) Big Mac Index since 1986. It’s a reality check on world-wide currency exchange rates, based on the concept of Purchasing-Power Parity. Purchasing-Power Parity (PPP) says that exchange rates are … Continue reading
Betting Against The House Is Never Smart
Just when it looked like the financial system is coming back under control I discover that the term “Large Sophisticated Investor” is an oxymoron. When you gamble with the Big Dogs, normal practice is that you have to show your stake and throw some money into the pot before each hand. It’s exactly the same thing … Continue reading
