Song of the Week

Song of the Week

Song of the Week

Song of the Week

A Really Fun Anti-Bullying Song

Only 22% of Americans Believe in Evolution

Song of the Day

Energy Policy Redux

Watching all of the idiot pundits/politicians on TV talk about gas prices and energy has been so frustrating lately.  It really decreases my faith in the world.

Oil/gas prices
Facts: Oil prices have been going up a lot lately.  Also, gas prices have been going up a lot lately
What the pundits have to say:
Obama-"end tax breaks for oil and gas"...here's the deal-these tax breaks are most likely in the form of exploration what will likely happen in an efficient market is that there will just be less money for share repurchases.  I personally think share repurchases are a huge waste of money but I'm just some kid...
Gingrich-"2.50 gas"...this is impossible
Palin/other right-wing idiots-"drill, baby, drill"...the problem is not lack of drilling...we are drilling a shit ton.  The problem is that when we are drilling, its natural gas and not oil.  Let's face it, the U.S. is a natural gas rich country.  The U.S. was an oil rich country and then we used it all.  Surprise!!!

The main issue is not a drilling or a production problem...it's a use problem.  I know there are so many supply side economists who get really anal about production and making it easier to supply things...blah blah blah.  But the current energy issue is a demand problem.  There is not enough demand for natural gas.  Couple this with our drill baby drill philosophy and we get natural gas prices going from $14 to $2.50 in the past decade.  How many commercials are about producing natural gas in this country...well a lot cause I've been watching a lot of CNN?  Yet, Chesapeke Energy and ConocoPhillips have scaled back production on natural gas because of weak demand.

So as a natural gas rich country, you would think we would use a lot of it right?  The answer is no...natural gas is actually one of leading exports to Japan.  Instead, we use oil for our cars and most of our heating and cooling and we use coal for our power.  So efficient.....(sarcasm). 

So you might ask...why isn't the economy adjusting.  Well, the coal companies are very powerful and are from electorally valuable states (Ohio and Pennsylvania).  They can get their way to block the creative destruction an economy needs to grow.  It's simple Marxist theory, but this time coal is the factory worker and natural gas is the automation designed to make the worker lose his job and make things better for society.

I'm not a super genius in terms of markets, but as a below-average genius, I can tell you that with demand, supply will find a way.  In our relatively free economy, producers will find a way if they can make money doing it.  Let's get our concern onto demand and stop going anal over supply.

Here's an important/unimportant history lesson:  We used to get our electricity through oil and natural gas, not coal before the 1970s.  There were a lot of supply problems that made us convert to coal.

End of an Era

Hi,

I am going to be only sporadically post from here on out.  The external pressures on my life are taking up an increasingly large share of my time now.

Thank you for your support.

A Couple of Interesting Graphs on American Health Care

Why are healthcare costs so large in America...spending so much extra money would be explainable if the outcomes we were achieving were spectacular.  But a surprising amount of the time they are middling at best and shockingly bad at worst.

How is Mitt Romney so unrelatable?

Here is a full quote from Romney in a campaign stop in Wisconsin:

One of (the) most humorous stories, I think, relates to my father. You may remember my father, George Romney, was president of an automobile company called American Motors…

They had a factory in Michigan, and they had a factory in Kenosha, Wisconsin, and another one in Milwaukee, Wisconsin. And as the president of the company he decided to close the factory in Michigan and move all the production to Wisconsin. Now, later he decided to run for governor of Michigan and so you can imagine that having closed the factory and moved all the production to Wisconsin was a very sensitive issue to him, for his campaign…

Now, I recall at one parade where he was going down the streets, he was led by a band, and they had a high school band that was leading each of the candidates, and his band did not know how to play the Michigan fight song,” he said. “They only knew how to play the Wisconsin fight song, so every time they would start playing ‘On, Wisconsin,’ ‘On, Wisconsin,’ my dad’s political people would jump up and down and try to get them to stop because they didn’t want people in Michigan to be reminded that my dad had moved production to Wisconsin.

Oh...my dad closed down a factory in Michigan. Hundreds of people lost their jobs...chuckles...  And I bet that they don't have a lot of stock to pay them dividends for enough passive income...chuckles...  Closing a factory is no big deal...chuckles...  We got to buy 15 new Cadillacs from my dad's bonus that year...chuckes...  Oh my...there's a band that can and can't play certain songs...chuckles... I have such ability to inflict pain into other people's lives...chuckles...

I really do think that the Republican Party has nothing to offer to people who make under $100k.  As a person in line to make over $100k, I can only say "chuckles." 

A Funny Post

A reply from CEO of J.P. Morgan to a pretty girl seeking a rich husband

A young and pretty lady posted this on a popular forum:

Title: What should I do to marry a rich guy?

... I'm going to be honest of what I'm going to say here.

I'm 25 this year. I'm very pretty, have style and good taste. I wish to marry a guy with $500k annual salary or above.

You might say that I'm greedy, but an annual salary of $1M is considered only as middle class in New York.

My requirement is not high. Is there anyone in this forum who has an income of $500k annual salary? Are you all married?

I wanted to ask: what should I do to marry rich persons like you?

Among those I've dated, the richest is $250k annual income, and it seems that this is my upper limit.

If someone is going to move into high cost residential area on the west of New York City Garden(?), $250k annual income is not enough.

I'm here humbly to ask a few questions:
1) Where do most rich bachelors hang out? (Please list down the names and addresses of bars, restaurant, gym)
2) Which age group should I target?
3) Why most wives of the riches are only average-looking? I've met a few girls who don't have looks and are not interesting, but they are able to marry rich guys.

4) How do you decide who can be your wife, and who can only be your girlfriend? (my target now is to get married)

Ms. Pretty

A philosophical reply from CEO of J.P. Morgan:

Dear Ms. Pretty,
I have read your post with great interest. Guess there are lots of girls out there who have similar questions like yours. Please allow me to analyse your situation as a professional investor.

My annual income is more than $500k, which meets your requirement, so I hope everyone believes that I'm not wasting time here.

From the standpoint of a business person, it is a bad decision to marry you. The answer is very simple, so let me explain.

Put the details aside, what you're trying to do is an exchange of "beauty" and "money" : Person A provides beauty, and Person B pays for it, fair and square.

However, there's a deadly problem here, your beauty will fade, but my money will not be gone without any good reason. The fact is, my income might increase from year to year, but you can't be prettier year after year.

Hence from the viewpoint of economics, I am an appreciation asset, and you are a depreciation asset. It's not just normal depreciation, but exponential depreciation. If that is your only asset, your value will be much worse 10 years later.

By the terms we use in Wall Street, every trading has a position, dating with you is also a "trading position".
If the trade value dropped we will sell it and it is not a good idea to keep it for long term - same goes with the marriage that you wanted. It might be cruel to say this, but in order to make a wiser decision any assets with great depreciation value will be sold or "leased".

Anyone with over $500k annual income is not a fool; we would only date you, but will not marry you. I would advice that you forget looking for any clues to marry a rich guy. And by the way, you could make yourself to become a rich person with $500k annual income.This has better chance than finding a rich fool.

Hope this reply helps.

signed,
J.P. Morgan CEO

Songs of the Day

Here are some nice covers to One Direction:

It's Official (not really) Romney is the nominee

Romney just swept Wisconsin, Maryland, and D.C.  He is going to get enough delegates to ward off a brokered convention in either May or June.  Keep in mind that there are still plenty of states remaining that Santorum could win.  However, Romney now has the road to victory all to himself.  It wasn't easy, but ole' Mittens did it!

Another Example of NCAA Brackets and Political Pandering

The following is Virginia Senate Candidate, George Allen's (R) bracket.

Mizzou advancing to the Sweet Sixteen . . . without surviving Norfolk State in the first round?

Louisville falling to Michigan for an Elite Eight spot, but first losing to Davidson?

This is pretty awesome pandering...to home state/regional teams.  Obama panders too, but not this blatantly and not in a impossible fashion.

You might be asking your self...how stupid is George Allen?

Well, he's smart enough to put this logically impossible bracket on his campaign website...to highlight his stupidity (otherwise know as non-elitist).

Song of the Day

A Couple More Stock Picks if the GOP wins

Check out these defense stocks:  They will do good since the GOP loves to spend lots of money on defense.

Lockheed Martin (LMT): see F-35

Northrup Grumman (NOC)

Shouldn't they be called "offense" stocks?