"If capitalism is America’s biggest problem, why save it?" asks MarketWatch's Paul Farrell. "Wall Street, Corporate America, Big Oil and the entire economy been transformed into a bizarre circus Adam Smith would never recognize. Capitalism is now an out-of-control Frankenstein monster that changed everything." Not that Farrell provides any alternatives. [View news story]
LOL No one has said capitalsim is America's problem. Obama is America'sbiggest problem.
Buffet has become either a confused old man or a deliberate liar. Consider, the latest nonsense from NY Times.
Suppose that an investor you admire and trust comes to you with an investment idea. “This is a good one,” he says enthusiastically. “I’m in it, and I think you should be, too.”
Would your reply possibly be this? “Well, it all depends on what my tax rate will be on the gain you’re saying we’re going to make. If the taxes are too high, I would rather leave the money in my savings account, earning a quarter of 1 percent.” Only in Grover Norquist’s imagination does such a response exist.
This comletely and utterly false. You put up $150 and receive $10 forever. The discounted PV of this investment at 5% is $200. So you make it. Now if the tax rate is 50% the discounted PV of this investment is $100.
ONLY A FOOL or Buffet makes this investment. Tax rates do matter. Buffet know's this. He has become a liar.
Suppose assumptions about earnings are wrong and E5 = $2, opps terminal value falls to $18. If E5 = $1 terminal value falls to $9 and the value is now $35.
This model stock price is completely determined by it's terminal value, which is an assumption. And of course assumes huge profit growth in the first four years.
There is a reason for the current P/E discount rather than the 20-25 P/E the author believes is the fair value price.
To eat ... or to drive? Draconian concept, yes, but that's the choice many Americans may be faced with soon as the worst drought in decades pits meat producers against the ethanol starved oil companies. The issue of food versus fuel and surging corn prices crosses both economic as well as ethical borders, and is growing louder in Washington, D.C. as ripe fodder for an election cycle. In the end, it's likely big oil will win out, because as long as it is more profitable to produce a gallon of ethanol from corn than selling it for animal feed, not much will change. [View news story]
How does an oil company benefit from using less oil? After all they are in the business of selling oil. Refining does not drive profits.
To eat ... or to drive? Draconian concept, yes, but that's the choice many Americans may be faced with soon as the worst drought in decades pits meat producers against the ethanol starved oil companies. The issue of food versus fuel and surging corn prices crosses both economic as well as ethical borders, and is growing louder in Washington, D.C. as ripe fodder for an election cycle. In the end, it's likely big oil will win out, because as long as it is more profitable to produce a gallon of ethanol from corn than selling it for animal feed, not much will change. [View news story]
"In the end, it's likely big oil will win out, because as long as it is more profitable to produce a gallon of ethanol from corn than selling it for animal feed, not much will change."
How does big oil profit from ethanol if it is a replacement for oil? Either the statement is stupid or I am ignorant.
To eat ... or to drive? Draconian concept, yes, but that's the choice many Americans may be faced with soon as the worst drought in decades pits meat producers against the ethanol starved oil companies. The issue of food versus fuel and surging corn prices crosses both economic as well as ethical borders, and is growing louder in Washington, D.C. as ripe fodder for an election cycle. In the end, it's likely big oil will win out, because as long as it is more profitable to produce a gallon of ethanol from corn than selling it for animal feed, not much will change. [View news story]
"The private sector is doing fine." Pres. Obama later clarified his odd remark - private sector jobs remain 4.6M below their Jan. 2008 peak - but noted their relative strength vs. public sector job growth shows it has "not been the biggest drag on the economy." His point was that the loss of public sector jobs, down ~600K in three years, is a problem "the federal government could, with 100% certainty, fix." [View news story]
Democrat Record Let’s look at the facts. During the democrats iron fisted rule of Congress from, Jan 2007-2011, 6.4 million jobs were lost. Under the Obama regime over 300,00 jobs have been lost.
Fact 1: Jan 2007 146,033,000 employed Democrats seize Congress Fact 2: Jan 2009 142,201,000 employed Fact 3: Feb 2009 141,687,000 employed Stimulus passed Fact 4: April 2012 141,865,000 employed
"The private sector is doing fine." Pres. Obama later clarified his odd remark - private sector jobs remain 4.6M below their Jan. 2008 peak - but noted their relative strength vs. public sector job growth shows it has "not been the biggest drag on the economy." His point was that the loss of public sector jobs, down ~600K in three years, is a problem "the federal government could, with 100% certainty, fix." [View news story]
Only a clown like Obama would call losing government jobs a problem that needs to be fixed.
Mayor Michael Bloomberg proposes a sweeping ban in New York City on large-sized sugary drinks at restaurants, movie theaters, and from street vendors in one of the most ambitious local measures to take on obesity. If passed, the new law would prohibit the sale of sodas, pre-sweetened ice teas, and sugar-laced energy drinks larger than 16 ounces. In somewhat twisted logic, New Yorkers could still buy two 16-ounce drinks - instead of one 32-ouncer. On the mayor's radar: DPS, KO, PEP, MNST, COT. [View news story]
Mayor Michael Bloomberg proposes a sweeping ban in New York City on large-sized sugary drinks at restaurants, movie theaters, and from street vendors in one of the most ambitious local measures to take on obesity. If passed, the new law would prohibit the sale of sodas, pre-sweetened ice teas, and sugar-laced energy drinks larger than 16 ounces. In somewhat twisted logic, New Yorkers could still buy two 16-ounce drinks - instead of one 32-ouncer. On the mayor's radar: DPS, KO, PEP, MNST, COT. [View news story]
If Canada proceeds in exploiting its vast oil sands reserves, it's "game over for the climate," James Hansen writes. Canada’s tar sands contain twice the amount of CO2 emitted by global oil use in all of history, he says; full exploitation plus continuing use of conventional energy sources "would assure that the disintegration of the ice sheets would accelerate out of control... Civilization would be at risk." [View news story]
The author is confused. The beggar thy neighbour exchange rate policy did not work for Canada, a classic small open economy during the Great Depression.
Instead of slashing real wages, why not reduce firms costs by removing the onerous regulations that the current administration has imposed on business. Cost reductions will stimulate supply and reduce product goods prices which will stimulate demand.
The author is confused. The trade deficit represents current borrowing by the USA abroad. The current account is borrowing plus debt servicing. In order to reduce the trade deficit borrowing must be reduced. The easiest way is to reduce the government deficit.
From National Income Identities: C+I+G+NX=Y ; C=Y-T -S; Combining, NX=(T-G) + (S-I)
Any increase in deficit spending increases the trade deficit. Any increase in private savings decreases the trade deficit. This is a simple deduction from National Income accounting identities.
"If capitalism is America’s biggest problem, why save it?" asks MarketWatch's Paul Farrell. "Wall Street, Corporate America, Big Oil and the entire economy been transformed into a bizarre circus Adam Smith would never recognize. Capitalism is now an out-of-control Frankenstein monster that changed everything." Not that Farrell provides any alternatives. [View news story]
The Seductive Warren Buffett [View article]
Suppose that an investor you admire and trust comes to you with an investment idea. “This is a good one,” he says enthusiastically. “I’m in it, and I think you should be, too.”
Would your reply possibly be this? “Well, it all depends on what my tax rate will be on the gain you’re saying we’re going to make. If the taxes are too high, I would rather leave the money in my savings account, earning a quarter of 1 percent.” Only in Grover Norquist’s imagination does such a response exist.
This comletely and utterly false. You put up $150 and receive $10 forever. The discounted PV of this investment at 5% is $200. So you make it. Now if the tax rate is 50% the discounted PV of this investment is $100.
ONLY A FOOL or Buffet makes this investment. Tax rates do matter. Buffet know's this. He has become a liar.
Halliburton: 110% Upside Potential [View article]
This model stock price is completely determined by it's terminal value, which is an assumption. And of course assumes huge profit growth in the first four years.
There is a reason for the current P/E discount rather than the 20-25 P/E the author believes is the fair value price.
To eat ... or to drive? Draconian concept, yes, but that's the choice many Americans may be faced with soon as the worst drought in decades pits meat producers against the ethanol starved oil companies. The issue of food versus fuel and surging corn prices crosses both economic as well as ethical borders, and is growing louder in Washington, D.C. as ripe fodder for an election cycle. In the end, it's likely big oil will win out, because as long as it is more profitable to produce a gallon of ethanol from corn than selling it for animal feed, not much will change. [View news story]
To eat ... or to drive? Draconian concept, yes, but that's the choice many Americans may be faced with soon as the worst drought in decades pits meat producers against the ethanol starved oil companies. The issue of food versus fuel and surging corn prices crosses both economic as well as ethical borders, and is growing louder in Washington, D.C. as ripe fodder for an election cycle. In the end, it's likely big oil will win out, because as long as it is more profitable to produce a gallon of ethanol from corn than selling it for animal feed, not much will change. [View news story]
How does big oil profit from ethanol if it is a replacement for oil? Either the statement is stupid or I am ignorant.
To eat ... or to drive? Draconian concept, yes, but that's the choice many Americans may be faced with soon as the worst drought in decades pits meat producers against the ethanol starved oil companies. The issue of food versus fuel and surging corn prices crosses both economic as well as ethical borders, and is growing louder in Washington, D.C. as ripe fodder for an election cycle. In the end, it's likely big oil will win out, because as long as it is more profitable to produce a gallon of ethanol from corn than selling it for animal feed, not much will change. [View news story]
"The private sector is doing fine." Pres. Obama later clarified his odd remark - private sector jobs remain 4.6M below their Jan. 2008 peak - but noted their relative strength vs. public sector job growth shows it has "not been the biggest drag on the economy." His point was that the loss of public sector jobs, down ~600K in three years, is a problem "the federal government could, with 100% certainty, fix." [View news story]
Let’s look at the facts. During the democrats iron fisted rule of Congress from, Jan 2007-2011, 6.4 million jobs were lost. Under the Obama regime over 300,00 jobs have been lost.
Fact 1: Jan 2007 146,033,000 employed Democrats seize Congress
Fact 2: Jan 2009 142,201,000 employed
Fact 3: Feb 2009 141,687,000 employed Stimulus passed
Fact 4: April 2012 141,865,000 employed
http://bit.ly/MVzjsr
"The private sector is doing fine." Pres. Obama later clarified his odd remark - private sector jobs remain 4.6M below their Jan. 2008 peak - but noted their relative strength vs. public sector job growth shows it has "not been the biggest drag on the economy." His point was that the loss of public sector jobs, down ~600K in three years, is a problem "the federal government could, with 100% certainty, fix." [View news story]
Mayor Michael Bloomberg proposes a sweeping ban in New York City on large-sized sugary drinks at restaurants, movie theaters, and from street vendors in one of the most ambitious local measures to take on obesity. If passed, the new law would prohibit the sale of sodas, pre-sweetened ice teas, and sugar-laced energy drinks larger than 16 ounces. In somewhat twisted logic, New Yorkers could still buy two 16-ounce drinks - instead of one 32-ouncer. On the mayor's radar: DPS, KO, PEP, MNST, COT. [View news story]
Mayor Michael Bloomberg proposes a sweeping ban in New York City on large-sized sugary drinks at restaurants, movie theaters, and from street vendors in one of the most ambitious local measures to take on obesity. If passed, the new law would prohibit the sale of sodas, pre-sweetened ice teas, and sugar-laced energy drinks larger than 16 ounces. In somewhat twisted logic, New Yorkers could still buy two 16-ounce drinks - instead of one 32-ouncer. On the mayor's radar: DPS, KO, PEP, MNST, COT. [View news story]
If Canada proceeds in exploiting its vast oil sands reserves, it's "game over for the climate," James Hansen writes. Canada’s tar sands contain twice the amount of CO2 emitted by global oil use in all of history, he says; full exploitation plus continuing use of conventional energy sources "would assure that the disintegration of the ice sheets would accelerate out of control... Civilization would be at risk." [View news story]
SanDisk: Limited Upside For This Tech Stock [View article]
The Causes of Unemployment [View article]
The Causes of Unemployment [View article]
Another Disappointing Jobs Report [View article]
From National Income Identities: C+I+G+NX=Y ; C=Y-T -S; Combining,
NX=(T-G) + (S-I)
Any increase in deficit spending increases the trade deficit. Any increase in private savings decreases the trade deficit. This is a simple deduction from National Income accounting identities.