Thursday, August 28, 2014

The Blacklist Bought out by Netflix for $2 million per episode

Talk about paying up for content.

“The Blacklist” just earned a lot of green.
The NBC series, which stars James Spader, has been acquired by Netflix for the hefty sum of $2 million per episode, an individual with knowledge of the deal told TheWrap on Thursday.

At least the show can get a bit more adult if they want since it won't be on network television. The big question is if more people will subscribe to Netflix because of this buyout. 

Bearish Bear says Market will drop from 30% to 60%: Said the same thing in 2009 and 2012

Sometimes these bears like David Tice are in religion mode.

Being extremely bearish on stocks is not a new position for Tice, who said in 2009 that the S&P 500 would go to 400, and in October 2012 said the market, "really seems like it seemed in early '08."

This chart from Morningstar shows the performance of the fund over the last ten years, with $10,000 invested in the fund worth $5,340 today. In contrast, $10,000 invested in the S&P 500 over the same period would be worth $22,244 today.

Yeah his fund would have cost you $4660 in losses if you stuck with him for 10 years. An index fund would have more than doubled your money. A broken clock is wrong 99% of the time.

Wednesday, August 27, 2014

Boehner Profited from Inversions!: So what. If you have an S&P500 Index Fund you Did Too

I love how Bloomberg has a veiled attempt at saying that Boehner is somehow crooked for owning Medtronic and Coviden shares.

While U.S. House Speaker John Boehner and Ways and Means Committee Chairman Dave Camp have resisted calls for a crackdown on companies adopting overseas addresses to pay lower taxes, both have made money off one of the deals. They also have investments at risk of losing value because of government action. 

The two lawmakers reported the sale of stock in Covidien Plc within nine days of Medtronic Inc. saying it was planning a takeover, an announcement that sent Dublin-based Covidien’s shares near a 52-week high. The deal, one of several that have sparked a national debate over U.S. corporate tax policy, would put the combined company’s headquarters in Ireland and reduce its tax rate. 

They profited from inversions! The horror! The funny thing is that I profited from the same inversion because I am long an S&P500 Index Fund and sure enough the evil tax evaders are in there. Most likely if you have a 401k or a Retirement fund of any kind you probably own shares in Medtronic or Coviden as well. How unpatriotic of just about every American with a retirement fund that is invested in the stock market. This whole "inversion shaming" is such a joke.

Tuesday, August 26, 2014

The Real Reason Why Corporations are Inverting: 35% Tax on Everying You Make is a Strait Rip-Off

This article sums up inversion in a nutshell.

The purpose of an inversion has never been, and never could be, and never will be, "ooh, Canada has a 15 percent tax rate, and the U.S. has a 35 percent tax rate, so we can save 20 points of taxes on all our income by moving." Instead the main purpose is always: "If we're incorporated in the U.S., we'll pay 35 percent taxes on our income in the U.S. and Canada and Mexico and Ireland and Bermuda and the Cayman Islands, but if we're incorporated in Canada, we'll pay 35 percent on our income in the U.S. but 15 percent in Canada and 30 percent in Mexico and 12.5 percent in Ireland and zero percent in Bermuda and zero percent in the Cayman Islands."

That means they can take their profits from Mexico, Ireland, Bermuda, etc. and take it back up to Canada and deploy it how they see fit. Rather then try to game the American system so that they don't have to pay 35% on every penny they make no matter where it came from.

This article does a good job of saying that they made that money in Ireland and not the US. So they used Irish roads, fire department, haggis stands, etc. and Ireland only asks 12.5% taxes for that privilege. Why should Burger King have to pay 35% on that Irish money? They pay 35% on their American profits already so that should be their so-called "fair-share."

Burger King Goes the Tax Inversion Route: Boycott Everything Scarborough Because Every Company Lowers their Taxes

They have a duty to shareholders to be fiscally responsible. If they move their headquarters to Canada in order to stay competitive with McDonalds and Wendys then they should do it. These boycotters are full of it as well.

Activist group MoveOn.org is sponsoring a petition to scuttle the “Whopper Tax Dodge” or else institute a boycott. The petition has more than 1,000 signatures.

MSNCB TV host Joe Scarborough called for a Burger King boycott. Sen. Sherrod Brown (D-OH) did too, saying in a statement, “Burger King’s decision to abandon the United States means consumers should turn to Wendy’s Old Fashioned Hamburgers or White Castle sliders.”

I wonder if they plan on boycotting Apple because they use all sorts of ways to pay only 18%? I mean they aren't paying their so-called fair share according to these dweebs. Forget the fact that they actually paid 13 billion in taxes. That is roughly the nominal GDP of Namibia.

Maybe Scarborough needs to toss his iPhone (if he has one) and buy a Samsung instead. Of course Samsung only pays 24% in taxes (likely it is much lower depending on what they do to mitigate taxes) which is far lower than our 35% rip-off rate. They aren't paying their fair share either. Maybe Joe Scarborough needs to take up semaphore and throw his phones/pads/computers away.

#TheWorstPerson: Floridian Doug Wilkey Tried to have a Kids Lemonaide Stand Shut Down

Now this is terrible for a grown man, one Doug Wilkey to try to shut this kid, T.J. Guerrero’s, stand down.

Guerrero’s Dunedin, Florida, stand, though, is not just your typical after-school activity. It has become a rallying point for community members after Guerrero’s 61-year-old neighbor tried to have the stand shut down.

It has become a rallying point for community members after Guerrero’s 61-year-old neighbor tried to have the stand shut down.

“When will this illegal nonsense ... stop?” Doug Wilkey wrote in reference to the lemonade stand in an email complaint to city officials on June 11 that was obtained by ABC News. “This is the value of the home that I have owned for 32 years getting ravaged! This is costing me thousands of dollars in home value & my taxes should be reduced accordingly!”

According to Guerrero’s mother’s partner, Wilkey never directly complained to Guerrero or his family.

However it is good that the community rallied around this kid:

Community members have rallied behind Guerrero, buying drinks in droves. Local radio station 102.5 heard the story and worked with Guerrero Monday at his stand, raising more than $1,000 for Guerrero. The mayor even stopped by.

“I think it is a great show of entrepreneurship. This 12-year-old is setting a great example,” Dunedin Mayor Dave Eggers told ABC Action News. “I don’t know what the other neighbor’s problem is, but I would like to talk to him to try to figure it out.”

Guerrero has no plans to stop selling treats to locals.

“I know my one neighbor does not support this,” he said. “But it makes me want to work even harder. I just can't believe all these people care. It makes me feel so wonderful.”

I guess running afoul of your asshole neighbors is good for business.

Too Bad Keystone Opponents; Enbridge Just Fround a Pipeline End-Around

Never underestimate the power of capitalists trying to find a place for their product to go.

Instead of waiting, the company said it plans to build a link to an adjacent pipeline, known as Line 3, which already crosses the border. Enbridge will move the oil from the Alberta Clipper to Line 3 about a mile and half north of the border, send it into the U.S., then transfer it back to the main line at another interconnect about 16 miles into the U.S.

Because the only new construction is the link in Canada, and Line 3 already has permission to bring oil into the country, no additional approvals are needed.

It isn’t a permanent solution. Enbridge wants to almost double the capacity of the Alberta Clipper to 880,000 barrels a day, but the move would provide a temporary increase in capacity for exporting Canadian crude, which has been constrained by a lack of pipelines.

I agree with this article in that these environmentalists need to reduce the demand for oil. That means push their liberal Senators and Congressmen to expand electric vehicle reimbursements. They also need to dole out greater tax breaks to car companies that make them. Let buying a Tesla be the same as buying a BMW or maybe even a bit better. Then have them expand charging stations and infrastructure. Plenty of union jobs there I assume

Friday, August 22, 2014

Wow Income Inequality between Whites and Blacks is Staggering

I have to agree that black people have seriously suffered in the last few years.

A typical black household has accumulated less than one-tenth of the wealth of a typical white one. And it's only getting worse. 

Over the past 25 years, the wealth gap between blacks and whites has nearly tripled, according to research by Brandeis University. 

The article sites that most black families do not own a home which is where much of white peoples wealth seems to come from. This statistic is horrible.

All of these factors combine to push many blacks into poverty. America's 15% poverty rate masks the underlying racial differences. More than one in four blacks live in poverty, while fewer than one in 10 whites do. 

You would figure that black leaders would be doing everything they could to fix these numbers. 

Thursday, August 21, 2014

5 Stocks that Might Benefit from the ALS Ice Bucket Challenge

Well it seems that ALS research is getting a big bump from people dumping ice water on their heads and giving money to fight the disease.

Besides the millions of viral videos now circulating the web, there is an entire force of big pharmaceutical companies and non-profit clinics and universities hunting for a cure. The record influx of funds supporting Lou Gehrig’s disease may help them hone in on one.

In August, the ALS Association began putting those donations to work, awarding scientists with 21 new research grants valued at $3.5 million, it said in a report.

The stocks are:

Biogen IDEC (BIIB)Their drug dexpramipexole failed in a late stage trial but they are going back to drawing board to see what they can salvage.

Avanir Pharmaceuticals Inc. (AVNR) Their drug Nuedexta is supposed to treat pseudobulbar affect which is uncontrollabe laughing and crying. It might be used to help with ALS because some of them have this affliction as well.

Isis Pharmaceuticals Inc. (ISIS) They have a very early stage drug called ISIS-SOD1-Rx that is being studied right now to help with ALS. I'm long this stock.

Sanofi (SNY) They developed the only therapy for ALS which is a drug called Rilutek. It extends the life of an ALS patient but doesn't cure it.

Bristol-Meyers Squibb Co. (BMY) Their immune modulation therapies might be useful in treating ALS. This is from the ALS Forum:

BMS currently is developing a therapy aimed at microtubule stabilization. In addition, BMS has a large program aimed at immune modulation. Both microtubule stabilization and immune modulation could be potential opportunities for ALS therapeutics. [Updated: August 9, 2013]



BMS currently is developing a therapy aimed at microtubule stabilization. In addition, BMS has a large program aimed at immune modulation. Both microtubule stabilization and immune modulation could be potential opportunities for ALS therapeutics. [Updated: August 9, 2013] - See more at: http://www.researchals.org/page/4805/?filter_stage=&filter_location=&filter_class=Small+Molecule#sthash.G8GGvF9a.dpuf

They Found the Missing Global Warming Heat: It's in the Atlantic Ocean

I was wondering where it went.

In 1999, the feverish rise in Earth's surface temperatures suddenly slowed, even as greenhouse gas emissions escalated. This unexpected slowdown has been called a global warming hiatus or global warming pause. Most climate scientists don't think this hiatus means global warming went kaput, but the reason (or reasons) for the slowdown has scientists flummoxed. Researchers have offered more than two dozen ideas to explain the missing heat.

Now, a study published today (Aug. 21) in the journal Science suggests a natural climate cycle in the North Atlantic Ocean gobbled Earth's extra heat. While the study is unlikely to settle the scientific debate, it does support the idea that Earth's global warming continues in the ocean, even when air temperatures stay flat.

Of course this cycle won't last forever and will stop in 2030 for some reason or another. They say it is a 30 year cycle though so in 2060 it should start back up again. So maybe all the climate doom-and-gloom models need to be adjusted for ocean heat trapping.

This is exactly why people bristle at Climate Change Science. Nothing is sure and it is constantly moving and changing like any other kind of science. The so-called "settled science" argument that will cause the UN to make sure the Chinese and Indians keep their people in poverty is such bunk.

Student Suspended for Saying "Bless You" to Someone Who Sneezed

This is just outrageous any way you look at it.

“She said that we’re not going to have godly speaking in her class," Turner said, "and that’s when I said we have a constitutional right. ... It’s all right to defend God and it’s our constitutional right, because we have a freedom of religion and freedom of speech."

Turner was sent to the administrator's office, where she finished the class period with an "in-school suspension," WMC said.

The 1st Amendment says that the Congress can make no law against the free exercise of religion. So saying bless you to someone that sneezed is free exercise of religion. It must take a lot of faith to be an atheist.

Wednesday, August 20, 2014

Millennials Insanely Risk Averse Study Finds

I guess the Great Recession can do that to a group of people just starting their fiscal lives.

Unfortunately, millennials have a basic misunderstanding of risk. BlackRock's "Global Investor Pulse" survey found that almost half of its 4,000 participants were opposed to taking any risk with their money, keeping it in cash or bonds. The participants included investors of all ages, "with those born in the late 1970s and after leading the way." 

The problem is all-cash will get eroded away by inflation. Just some low-fee index funds or even some dividend rich income funds are better than cash. I blame this on lack of financial literacy for millennials.

Tuesday, August 19, 2014

The Checked-Out President: Tells Harry Reid to "Work it Out:

I guess Harry Reid knows that Obama is so-over this President thing.

With Mitch McConnell, the Republican leader, sitting a few feet away, Mr. Reid complained that Senate Republicans were spitefully blocking the confirmation of dozens of Mr. Obama’s nominees to serve as ambassadors. He expected that the president would back him up and urge Mr. McConnell to relent.
Mr. Obama quickly dismissed the matter.

“You and Mitch work it out,” Mr. Obama said coolly, cutting off any discussion.

Mr. Reid seethed quietly for the rest of the meeting, according to four separate accounts provided by people who spoke with him about it. After his return to the Capitol that afternoon, Mr. Reid told other senators and his staff members that he was astonished by how disengaged the president seemed. After all, these were Mr. Obama’s own ambassadors who were being blocked by Mr. McConnell, and Secretary of State John Kerry had been arguing for months that getting them installed was an urgent necessity for the administration.

Yeah, these are Obama's own nominees that are supposed to be urgently needed. Instead he is like "Dingy Harry work it out." Politics are sooo beneath him. Maybe if Harry Reid was a noted artist, Jay-Z, or a Nobel prize winning economist Obama would have gave him the time of day. Instead he is merely a grubby Majority Leader of the Senate. I think Obama needs to resign and become Democratic Party Chairman and let Biden finish off his term.

A Hillary Speech Does Not Come Cheap; She is a Political Rock Star baby!

Talk about a money making opportunity!

The paper reported Saturday on specifics of the contract for Clinton's speech at a University of Nevada, Las Vegas Foundation fundraiser in October. Clinton will receive $225,000 for speaking at the dinner. In exchange, she will attend for 90 minutes and pose for a maximum of 50 photographs with no more than 100 people. That's a discount: Her regular fee is $300,000, Myers reported.

I guess she can barely afford "houses" with that kind of money. Oh and she is a rock star alright with some rock star demands as well:

Co-host Ron Claiborne read off some of Clinton's specifications for her events -- which include travel on a private jet, a presidential suite to stay in, and the presence of a stenographer -- prompting Harris to ask, "Did she specify which color M&M's she would like?"