Buybacks Not So good for stocks

It seems that massive stock buybacks actually cause stocks to lose value according to some research.

The same appears to hold true over the longer haul. Take the 10 largest buybacks announced last year. On average, the group saw its share prices decline by 1.8% in the year following their announced buybacks, according to MarketWatch research. Seven of the 10 posted negative returns for the period.

Yup if you bought the $1 billion or more buyback company you would have actually lost money. That is why I like one time dividends instead. You get a nice chunk of change that is usually a few 100 bucks. The stock usually stays about the same price so it is just guaranteed money for just holding the stock for a few months. Can't beat that kind of thing. I agree 100% with this statement though:

"We occasionally run into circumstances where a stock seems to be misunderstood, and a buyback in those cases can demonstrate confidence of management," Oberweis said. "More indicative in my book is to have management themselves buying the stock, because it's very different to do something with your own money instead of someone else's money."

Insider buying is a massive vote of confidence when it comes to a stock. That means the managers have their money on the line exactly the same as you. It makes you feel like you are on the same team as them.

More on the Sony Mess

It looks like they have finally recalled the offending CDs due to pressure from the Blogosphere. This guy needs to be the first one fired out of this mess:

Thomas Hesse, Sony BMG's Global Digital Business President, attempted to do just that by dismissing the online protests. "Most people, I think, don't even know what a rootkit is, so why should they care about it?" he said in a November 4 interview on National Public Radio's Morning Edition. He added, "The software is designed to protect our CDs from unauthorized copying and ripping."

Yup, he said that the people that buy Sony are stupid. They are just too stupid to even care about the spyware hidden in their BMG Music CDs. Whatever the case it looks like Sony is just going to get a slap on the wrist for all this. Let's hope some of these lawsuits have some teeth though.

EFF comes to the rescue against Sony XPC CDs

I Googled and found a pretty good site called EFF.com that talks about how to recognize and protect yourself from this XPC technology. I love the Electronic Frontier Foundation. They seem to be looking out for the little guy like me. I just gave them some cashola for their efforts to protect us from predators like Sony. Here is the list:

EFF has confirmed the presence of XCP on the following titles (each has a data session, easily read on a Macintosh, that includes a file called "VERSION.DAT" that announces what version of XCP it is using). If you have one of these CDs, and you have a Windows PC (Macs are totally immune, as usual), you may have caught the XCP bug.

Trey Anastasio, Shine (Columbia)
Celine Dion, On ne Change Pas (Epic)
Neil Diamond, 12 Songs (Columbia)
Our Lady Peace, Healthy in Paranoid Times (Columbia)
Chris Botti, To Love Again (Columbia)
Van Zant, Get Right with the Man (Columbia)
Switchfoot, Nothing is Sound (Columbia)
The Coral, The Invisible Invasion (Columbia)
Acceptance, Phantoms (Columbia)
Susie Suh, Susie Suh (Epic)
Amerie, Touch (Columbia)
Life of Agony, Broken Valley (Epic)
Horace Silver Quintet, Silver's Blue (Epic Legacy)
Gerry Mulligan, Jeru (Columbia Legacy)
Dexter Gordon, Manhattan Symphonie (Columbia Legacy)
The Bad Plus, Suspicious Activity (Columbia)
The Dead 60s, The Dead 60s (Epic)
Dion, The Essential Dion (Columbia Legacy)
Natasha Bedingfield, Unwritten (Epic)
Ricky Martin, Life (Columbia) (labeled as XCP, but, oddly, our disc had no protection)

Several other Sony-BMG CDs are protected with a different copy-protection technology, sourced from SunnComm, including:

My Morning Jacket, ZSantana, All That I Am, Sarah McLachlan, Bloom Remix Album

This is not a complete list. So how do you recognize other XCP-laden CDs in the wild?
Tip-off #1: on the front of the CD, at the left-most edge, in the transparent "spine", you'll see "CONTENT PROTECTED" along with the IFPI copy-protection logo.

DO NOT BUY Sony Music CDs!

This is something that passed under my radar recently probably because I don't really buy music CDs very much.

That antipiracy software - which works only on Windows PCs - came with a cloaking feature that allowed it to hide files on users' computers. Security researchers classified the program as "spyware," saying it secretly transmits details about what music the PC is playing. Manual attempts to remove the software can disable the PC's CD drive.

So in other words Sony infected PCs with spyware just to protect Sony from people putting music on their Ipods. That is highly unethical but it gets far worse:

The program also gave virus writers an easy tool for hiding their malicious software. Last week, virus-like "Trojan horse" programs emerged that took advantage of the cloaking feature to enter computers undetected, antivirus companies said. Trojans are typically used to steal personal information, launch attacks on other computers and send spam.

Yup nothing like a big company putting spyware on your PC and then making the spyware so crappy that virus writers can exploit it. And this blows it into a boycott all Sony stuff at all costs until they fire top management territory:

To get the uninstall program, users have to request it by filling out online forms. Once submitted, the forms themselves download and install a program designed to ready the PC for the fix. Essentially, it makes the PC open to downloading and installing code from the Internet.

"The consequences of the flaw are severe," Felten and Halderman wrote in a blog posting Tuesday. "It allows any Web page you visit to download, install, and run any code it likes on your computer. Any Web page can seize control of your computer; then it can do anything it likes. That's about as serious as a security flaw can get."

Yup the fix makes it even worse. To uninstall their spyware you have to go and fill out a form which downloads more spyware that makes your PC even more open to attacks. That is something that only the worst of worst spyware offenders have done. And this bit is the most ironic thing about this whole mess:

Other programs that knock out the original software are also likely to emerge. Microsoft Corp. says the next version of its tool for removing malicious software, which is automatically sent to PCs via Windows Update each month, will yank the cloaking feature in XCP.

That means MSFT is coming to the rescue of a mess that Sony made. That is ancient Greek style irony. Whatever the case it is time to buy a Panasonic or Samsung TV and DVR player instead of anything by Sony. Who knows what will happen if I watch a DVR disc made by a Sony player in my PC.

I am also thinking of not buying a PS3 until that thing has been vetted by security pros. Or forgetting about the thing all together. It could download some spyware to my PC when I connect it to my home network. Finally, I *definitely* won't buy a thing from BMG music or even allow a CD from them to touch any electronic item I own for the rest of my life.

This is the kind of screwup that should cost top managers their jobs. If Sony does nothing to address the culture that made them put spyware on PCs, then more spyware if you want to get rid of the first batch of spyware, then I will never buy anything from Sony ever again.

Castro may be on his way out?

It looks like he has Parkinson's disease. It seems it could be affecting his ability to govern the nation:

The Miami Herald, which originally reported the CIA assessment on Wednesday, said Castro could be entering a period in which medicines are less effective and mental functions start to deteriorate.

But the newspaper said Cuba analysts fear the possibility of a tumultuous period during which an incapacitated Castro refuses to give up power but can no longer lead.

Maybe the CIA needs to start the mechanisms where they can get the right guy as the head of their government. Some chaos followed by UN peacekeepers. It sure would be nice to see the second to the last real communist government vanish into the mists of history.

Pics of My Hiking Trip

Now these are some pics from a hiking trip I took last Saturday

Here we are all ready to hike:


Here we are at the end of the hike:


A real before and after kind of thing.

GM Bankruptcy fears?

Hmm, it looks like we could have the biggest bankruptcy in a while if they go belly up:

Concerns about the future of the world's largest automakers are showing up in the credit default swaps market, where investors effectively buy insurance protection against defaults. Holders of GM debt who want to arrange a hedge against the risk that they won't be repaid are finding that the cost of buying the protection has risen dramatically in recent days.

Also there seems to be a pretty healthy amount of short interest in the stock at 11% of the float. Could high gas prices and lots of big gas guzzling trucks spell the end for GM? These prices have already hurt the Airline Industry. Could US automakers be next?

Quake Hits Northern Japan

Good thing there was no damage at all. It seemed like a powerful one though clocking in at 7.2 and it created:

A 12-inch tsunami wave hit the city of Ofunato, and two 4- to 8-inch waves generated by the quake struck two other towns in the area, the agency said.

That's good news for the people on Northern Japan. A 7.2 earthquake in a metropolitan area would have created havoc.

Belleville, Ind hotbed of violence?

Hmm this is kind of a weird story I think. It seems that this little Indiana town has had some strange things happen recently:

A man wanted in a Pennsylvania double homicide and apparent abduction of a 14-year-old girl was captured Monday after a car he was driving crashed in Indiana following a police pursuit, State Police said. The girl was found unharmed.

Also earlier there was this:

On Tuesday, police shot and killed 23-year-old Daniel B. Faust hours after he allegedly shot one of three officers who had gone to his home with a traffic warrant. The officer, Jevon M. Miller, was critically wounded.

Lots of weird gun violence for such a small town. The 18 year old man in the first crime, David Ludwig seemed like a regular kid that wouldn't be prone to violence. He shoots and kills the parents and then rushed off with the 14 year old girl. Maybe there is something in their drinking water.

Carl Edwards Wins 2nd Strait Race

Wow now this is good news that I missed while I was in Japan. Carl won his second strait race this time it was the Dickies 500 at Texas Motor Speedway. He did well previously at Atlanta Motor Speedway so I thought he would do well again there. He won that one and now he comes through and wins this one in Texas too. That Office Depot Ford of his is really humming. Now he has a shot at the title if he can do well in these last two races. Here is a pic of Carl from the Texas win:

Well I'm back from Japan

I'm back from Japan and ready to do some posting again. I have lots of pics to share so keep watching this space.

Two New Moons Found Around Pluto

Now this is an interesting discovery.

The newfound moons orbit about 27,000 miles (44,000 kilometers) from Pluto, more than twice as far as Charon, Pluto's other satellite. They are 5,000 times dimmer than Charon.

Right now they are named S/2005 P1 and S/2005 P2. They should think about calling one Cerberus after the guardian dog of the underworld and the other should be Persephone the Queen of the Underworld who Pluto abducted.

Iran Confiscates Mannequins?

The Iranians are some funny people I kid you not. They are confiscating lewd mannequins just in case some upstanding Muslim man may want to have sex with a plastic dummy.

A spokesman for the city's judiciary, who asked not be named, explained the drive would tackle problems of "public chastity." He said 65 mannequins have been impounded so far.

Actually they were Zionist mannequins that want to corrupt the Iranian people and make them turn away from Allah. Their plastic forms make men want to do unchaste things I tell you!

Stewart Wanted to get rid of Trump?

Now this could turn into a real Biggie vs Tupac thing before too long. Check out the first signs of disrespect by the Ex-con:

"I thought I was replacing The Donald," Stewart says in the Nov. 14 issue of Fortune magazine, on newsstands Nov. 7. "It was even discussed that I would be firing The Donald on the first show."

When did Trump learn that she intended to bump him off his own show? "I don't think he ever knew," Stewart tells the magazine.

Then Trump fires back:

I think there was confusion between Martha's `Apprentice' and mine, and mine continues to do well and ... the other has struggled very severely," Trump said recently on a radio program.

"I think it probably hurt mine and I sort of predicted that it would."

Trump better watch himself. Martha could pull a shank on him at any time with some of those prison skills she developed. And after the big house she has nothing to lose:

"I have learned that I really cannot be destroyed."

It'll be 187 on Trump's ass.

Bush Nominates Judge Alito

Finally, Bush has the common sense to nominate an actual judge to the Supreme Court. He has been a judge on the 3rd U.S. Circuit Court of Appeals since 1990. So he seems pretty qualified. He seems to be against abortion though:

In the early 1990s, Alito was the lone dissenter in Planned v. Casey, a case in which the 3rd Circuit struck down a Pennsylvania law that included a provision requiring women seeking abortions to notify their spouses.

It should be the kind of fight that the Republicans are looking for. A rumble over a conservative Court pick. Whatever this pick's fortunes are I think that even though abortion is made illegal in the US people will end up going to Canada to get them. Demand will always go to where the supply is. Here is a pic of Alito and Bush:

$450 Billion for Exxon?

I know that this is a hoax by this Chinese concern called King Win Laurel Ltd. It would really be something if this much financing could be rounded up. I have a feeling that only the Chinese government could round up this much money. So the conspiracy theorist in my has the Chinese Government pumping money into this secret buyout firm. It sure would be interesting to see Exxon bought out in this way.

Oil Companies Record Profits while US consumer gets clipped

Now this is the kind of thing that makes me mad. I really think someone should do something about oil companies getting record profits while the economy and consumer spending are hit by high energy prices. This I agree with:

"These companies are turning in record profits -- they have a responsibility to expand refining capacity," U.S. Energy Secretary Sam Bodman told a Senate Energy Committee hearing on hurricane damage to the industry.

This idea is totally stupid and muddle headed:

Democrats have also introduced bills that would impose a windfall profits tax on crude oil. Sen. Hillary Clinton of New York wants to assess companies up to $20 billion annually to help consumers and develop new energy technologies.

Yeah, lets just steal their profits without getting much of anything back from it. It becomes a disincentive for them to increase capacity, pump more oil, or even deliver more gas. So the prices of oil, gas, and distillates would go up because the demand is still there but the supply is constrained.

I would bet that the oil companies would go out of their way to get under the profit tax including shuttering refineries, stopping the exploration of new sources, or even hiding profits or spinning off parts of their business. It's either that or their money gets stolen by the US government.

Whatever the case Exxon and the other oil companies had better increase dividends, create a special one time dividend, or increase their stock buyback program. They need to return some of these record profits to shareholders.

Bye Bye Libby!

Well, it looks like the leaker is none other then I. Lewis "Scooter" Libby Jr the vice president's chief of staff. And he just resigned his post. These allegations are pretty serious I think they include obstruction of justice, perjury and making false statements .

I'm glad they got rid of these kind of people who pull these Clinton/Nixon era dirty tricks. Even though I'm a moderate I still believe in the integrity of the White House. Not just for the President but for all the staff working there as well. I mean there was no reason to bring this Wilson's wife into the thing at all. Even if she may have gotten him the job these White House types know that a CIA agent with a blown cover could get a lot of people killed.

I hope the Bushies can get this behind themselves and get back to the domestic issues at hand. I mean where is the push to make the tax cuts permanent. What can they do to curb the oil companies who just made record profits. That sort of stuff.

White Sox Win the World Series!

Well it is about damn time. 1917 is a long time to wait. Did you know that the last time the White Sox won this thing the US was just getting into WWI after the Lusitania was struck by a torpedo? There was still an Ottoman Empire as well as an Austria-Hungarian one during that time. Also during that year the Russian Revolution happened.

Almost every single thing that I see around me has been invented since that time. Everything from this computer I'm typing this on, to the chair I'm sitting, on to the network, that you are reading this on has been invented since 1917. The entire world including almost all of the maps, the cultures, the social boundaries, the morays, and the behaviors have been reinvented since the last time the White Sox hoisted the trophy. Now only the Cubs are left.

Cellborg Created!

Now this is pretty weird stuff that University of Nebraska scientists just figured out. Here is what they did:

Scientists first coated a silicon chip with a layer of live Bacillus cereus bacteria. Some of the long, rod-shaped microbes lodged between two etched electrodes on the chip’s surface, forming a bridge. The chip was then washed in a solution containing tiny gold particles, each one about 30 nanometers across.

This what the weird-assed gold cellborg can do:

The cellborg sensor is extremely sensitive: a drop from 20 percent to zero humidity results in a 40-fold decrease in current flow. In humidity sensors that are solely electronic, the decrease is only 10-fold.

If they could get it to reproduce itself then we will have some science fiction style stuff going on.

Barry Cowsill missing?

Hmm, now here is an interesting case for the team at Without a Trace. It looks like the former child star just vanished after Katrina hit New Orleans.

He left a message on his sister Susan's cell phone that was retrieved a few days later. He said he was holed up in his apartment. He said he'd seen looting. He asked for help.

That was the last his siblings heard from Barry Cowsill.

I wonder if he parished in the storm or he just moved to a shelter somewhere and isn't reading the newspapers and such. This line could move this into the Urban Legend catagory:

There have been some leads, some reputed sightings, including one that had Barry Cowsill showing up on CNN, but nothing that as of yet has reunited the siblings.

Harriet Miers out of the Running

Finally, Miers came to her senses and bowed out of the nomination. She got Bush off to hook for nominating her in the first place. I think this is exactly why I didn't think she was right for the job:

Republicans and Democrats alike questioned her qualifications — Miers had never served as a judge — and Bush faced charges of cronyism for tapping his former personal lawyer for the highest court in the land.

She was never a judge and wanted her first job on the bench to be the most powerful one in the nation? I think there should be some sort of list of qualifications that the person must meet to be considered for the job. Like years of experience as a appeals court judge or something.

And that cronyism charge is part of the reason why Bush's number are down. He keeps putting his friends and confidants in at posts even if they are unqualified. He's acting like a Tammany Hall Boss here. This is worryingng statement though:

Conservative jurists who received serious consideration last time or somebody outside what Bush calls the "judicial monastery," perhaps a current or former senator who would be welcomed by the GOP-controlled Senate.

The judicial monastery? Well these are judges considered for a job for a judge right? It's like getting professional tennis stars to play football. Sure they are athletic but they don't have the right skills to excel at the position. And a senator is right out unless he was a former judge. That guy will really get the unqualified tag pretty fast. Maybe he should tap a constitutional law scholar of some kind. Kind of like his FED chief is a former economics professor.

Iran wants Israel off the Maps

Looks like Iran wants to put some nukes on Israel if we aren't careful. This is what this nutjob said:

Referring to Palestinian suicide bomb attacks in Israel, Ahmadinejad said: "there is no doubt that the new wave in Palestine will soon wipe off this disgraceful blot from the face of the Islamic world."

Her goes one step further by going Muslim nations who normalize relations with Israel as well.

Ahmadinejad also condemned Iran's neighbors which seek to break new ground in their relations with Israel. "Anybody who recognizes Israel will burn in the fire of the Islamic nation's fury," state-run television quoted him as saying.

Yup so there might be a nuke going to Bahrain and Qatar as well. And we are supposed to reason with these madmen? Good luck with all that.

McDonalds to put Nutrition on Packaging

This seems like a step in the right direction for MCD. Finally, consumers can see just how much fat they are eating when they belly up to the counter at McDonalds. I guess they are trying to make themselves seem more health conscious.

McDonald's has been a magnet for complaints that fast food is unhealthy. It was targeted by the 2003 documentary "Supersize Me," which focused on the health risks of an all fast-food diet, and hit with a lawsuit blaming the company for the obesity of teenage customers, although that suit was dismissed.

It should be good for the bottom line as long as the Senate backs that anti-suing the fastfood companies Bill that went through Congress. It seems like a good bill because there is nothing addictive about McDonalds or any other fast food. The only problem I have is that it is cheaper to eat unhealthy then healthy in America. Oh well, I guess that is just an economies of scale thing.

Excerpt from Bernanke's Economic Meetings

Here is an excerpt from Bernanke's economic briefing with Bush. Patrick the Starfish usually gives a rundown on foreign markets. While Sandy Cheeks gives Bush the briefing on the US dollar.

Here is Bernanke with Bush

Here is a pic of the new FED chief at the welcoming ceremony with Bush. One more thing at Bernanke and transparency at the FED. He must to be good at explaining the economy because he has to explain it to this guy in the gray suit every day. I think Bernanke uses either a puppet show or a well produced cartoon starring Spongebob Squarepants to do it. I thought I would beat Jay Leno to the punch.

Bernanke In as Fed chief

It looks like Bush has picked a successor to Greenspan. He also happens to be Bush's economic adviser and a former member of the Board of Governors. He also seems pretty qualified for the job unlike Harriet Myers. This is from the White House site:

Before becoming a member of the Board, Dr. Bernanke was the Howard Harrison and Gabrielle Snyder Beck Professor of Economics and Public Affairs and Chair of the Economics Department at Princeton University (1996-2002). Dr. Bernanke had served as a Professor of Economics and Public Affairs at Princeton since 1985.

He seems to have a really good economics background and know what he is talking about. He also wrote three textbooks. This is good news:

Bernanke, 51, is a top monetary economist who has long advocated setting formal targets for inflation to help guide monetary policy, a position Greenspan has long opposed.

Maybe the FED will have a lot more transparency when it comes to monetary policy. No more "what inning is it in the rate tightening cycle?" arguments. Let's hope Bernanke will give us a decent gauge on how much they will be raising the rates so the market won't freak out. It's tough to gauge things when economists have such wide opinions when it comes to what level they are willing on raising rates to. I hope he takes some of the uncertainty out of FED moves.

California Milk Processor Board should not Pull Ad

Now this is a very humorous ad and the stiff necked people at baseball are just getting stupid.

The latest "Got Milk?" commercial hit a little too close to home for Major League Baseball. Poking fun at the leagues steroid scandal, the television ad for the California Milk Processor Board talks about a player getting pulled from a game "after testing positive for a performance-enhancing substance."

In the next scene, a coach pulls a carton of milk from the slugger's locker.

Baseball is saying this crap about this ad:

"There is nothing humorous about steroid abuse," said Tim Brosnan, executive vice president for business for the league. "I would think that the California Milk Processor Board and their advertising agency would know better regarding an issue that threatens America's youth."

If it threatens Americas youth so much then why hasn't baseball come down harder on the people that abused steroids and still continue to do so. Rafael Palmeiro only got a 10 game suspension for his steroid use. His team had to cut him for bad press for him to feel the sting at all. Now they are getting all righteous about this ad making fun of this kind of thing.

Bill could make TV Shows and Films into Porn

Now this is an interesting provision stuck into the new Children's Safety Act. It says that:

Currently, any filmed sexual activity requires an affidavit that lists the names and ages of the actors who engage in the act. The film is required to have a video label that claims compliance with the law and lists where the custodian of the records can be found. The record-keeping requirement is known as Section 2257, for its citation in federal law. Violators could spend five years in jail.

So the filmmaker will have to file this 2257 record or spend 5 years in jail. Now this article goes on to say this:

Industry executives worry that the provision, which is retroactive to 1995, will have a chilling effect on filmmakers. Faced with the choice of filing a 2257 certificate or editing out a scene, a filmmaker might decide it's not worth getting entangled with the federal government and let the scene fall to the cutting-room floor, the executives said.

Um, if the scene is crucial to the filmmaker vision then just file the 2257 certificate. Why is it chilling to have to file the same form as porn movies do? It seems pretty routine because the porn industry has had to do it for years and it isn't cutting into their business any. They still make billions a year. I guess Hollyweird is just chilled to have to be lumped in with those hideous porn purveyors. Hey come to think of it if they file the form they can be as graphic as they would like. They could conceivably have this Bush White House Porn Bill create more pornography in mainstream movies instead of less. Ah, unintended consequences.

Buffett Gets a Free Ride?

This is a pretty interesting article that confirms lots of my speculations.

"Professional speculators and arbitrageurs use our regulatory filings in a manner that yields them quick profits, at the direct expense of fund investors. In particular, information provided on Form 13F -- a formerly routine regulatory filing -- is being used in a way that was never intended and is harming fund shareholders," former ICI president Matthew Fink wrote in a 2002 report to members.

Other people, a select group of sophisticated investors, including Warren Buffett, are given "confidential treatment" from even having to file 13F disclosures with the government. That means they can keep secret for as long as a year trading information that would otherwise be made public.

I agree with Thomas Kostigen when he says that everyone should have to file these kind of disclosures. Or they should all be put in the dark by making it so no one has to file 13Fs at all. Whichever the case Buffett and his ilk should not get any kind of preferential treatment at all. Especially if it is harming fund investors.

Google Squashes Estimates

Now these are some impressive numbers from Google.

If not for charges related to a recent acquisition and employee stock options issued before the company went public 14 months ago, Google said it would have earned $1.51 per share.

That figure easily exceeded the consensus estimate of $1.36 per share among 31 analysts surveyed by Thomson Financial. Even the most bullish analysts hadn't expected Google to fare as well as it did; the highest earnings estimate had been $1.46 per share.

Google's revenue for the quarter totaled $1.58 billion, nearly doubling from $805.9 million last year. After subtracting the commissions that Google paid to other Web sites in its advertising network, the revenue stood at $1.05 billion, exceeding the Wall Street estimate of $944 million.

Now that really is blowing past the numbers. I especially like how their revenues grew so much. That means more people are going to Google then before and ads there are hot properties. I wonder if they will really be buying out AOL here. That would certainly make Google a force to reckoned with. AOLs portal with Googles search engine, e-mail, blogging and instant messaging. I would probably make it my new homepage. Sorry Yahoo.

Pfizer Stock Blasted

PFE got its ass handed to it today. It looks like Lipitor and Viagra aren't selling as well as they did before. I wonder if this is a function of high gas prices on now high heating oil prices?

Part of the problem is Lipitor, the anti-cholesterol drug whose U.S. revenue rose just 1% in the quarter due to "an unexpectedly rapid slowdown in the U.S. lipid-lowering market as a whole and marginal Lipitor prescription share erosion during the quarter of one percentage point," the company said.

Maybe people are filling up the tank instead of filling their Lipitor prescriptions. I mean getting to work is much more important then possibly getting heart disease some time in the future. Hmm, this could be bad for Americans who are already overweight because they won't be taking their cholesterol meds. They also may be eating more fast food because everyone knows that eating healthy costs far more then eating junkfood. Also if you can't stay warm/get to work you certainly don't need erectile-disfunction drugs:

Sales of the impotence drug Viagra skidded 4% worldwide to $386 million, with U.S. sales losing 7% and foreign sales gaining 14%.

Perhaps this is why Americans are getting ruder. They have high cholesterol from not taking Lipitor. All their money goes to gas or heating oil. And they can't get laid anymore because their Viagra is too expensive.

Some God with you Latte?

It looks like Starbucks is going to put quotes from Rev. Rick Warren, author of The Purpose-Driven Life on its coffee cups. It seems like an interesting way to get people to discuss things while downing their $3.50 coffee. Here is what they have been doing:

In 2005, Starbucks is printing 63 quotes from writers, scientists, musicians, athletes, politicians and cultural critics on cups for company-run and licensed locations to carry on the coffeehouse tradition of conversation and debate.

I wonder if the ACLU will jump on them for doing this. I mean it is infringing on the rights of non-believers to drink their coffee without having to think of God. Separation of Church and coffee they will say. They need to organize a million atheist march that culminates in pouring Lattes into the street.

Hurricanes make egg prices go up?

Ah this is the reason why egg prices went up 49.3%. The article says:

The hurricanes may also be responsible for a record 49.3 percent jump in the price of eggs. This surge contributed to a 1.4 percent increase in the wholesale price of food last month. Katrina and Rita tore through areas of the Gulf that are major poultry producers. Higher egg costs are likely to be passed on to consumers, at least to some extent, at the grocery store.

Hmm, I guess lots of chickens bought it when those hurricanes blasted through those areas. Time to cut back on my Egg Mcmuffin consumption.

Highest Inflation since 1974

Looks like energy prices are making inflation go way up.

Price increases were led by a 7.1% rise in wholesale energy prices, the biggest jump in 15 years. Food prices also soared, rising 1.4% on a record 49% increase in egg prices.

Core prices, which exclude food and energy, increased 0.3% as prices for capital goods increased 0.3%. Car prices increased 0.9% and heavy truck prices climbed 1%.

At least the Core prices are still gaining very modestly. That means that the high energy prices haven't trickled into the prices of regular goods yet. When that core number goes up it is time to start worrying about the economy. Well, worrying more that is. Also I wonder why egg prices went up so much? Could it be that bird flu? That is kind of a weird statistic.

Last Aussie WWI Vet Dies at 106

This guy enlisted when he was just 14 years old. He was a seaman on the HMS Encounter. It looks like WWI is now about to vanish into the mists of history like the Civil War. We need a 8 part Ken Burns special so the War to End all War can be better remembered.

Microsoft Playing Nice

With all the focus on who their real competitors are (Google and Apple) they are now working with their long time enemies. They are working with RealNetworks in their effort to fight against apple and iTunes:

RealNetworks, the Seattle-based digital media company, on Tuesday announced a broad partnership with longtime nemesis Microsoft that also settles all the company's antitrust complaints. A series of agreements to share technology and promote each other's products could better position both companies to fight against Apple's market-leading iPod player and iTunes music service.

And they are working with Yahoo against Google:

Microsoft and Yahoo were announcing that they had finally agreed to make their instant messengers work together.

That deal is designed in part to take on America Online Inc.'s more popular instant messenger. But analysts say the companies also probably have one eye on Google, which launched its own messenger last month.

This fight is looking better and better as we go along. The reformed most-evil company in the world versus the company who vows never to do evil. It should be exciting to watch the cut and thrust of this new battle.

BitTorrent the Reason Behind slumping DVDs?

This seems like a very valid reason why DVD sales are getting softer and softer. Here is a very good article about the creator of the program and some info about it. Here is the part that got me thinking about DVD sales:

Today there are roughly 1.7 million copies of Hollywood movies—typically the most popular ones—being downloaded at any one time using BitTorrent, a 12% jump from last year, according to online media measurement firm BigChampagne.

I was thinking that DVD sales have been dropping more because movies have been pretty junk recently. Actually, people could just be using BitTorrent to download the movie complete with all the extras instead of buying the DVD. This should also concern TV execs:

In the same period the number of TV shows downloaded grew by 150%—about 70% of them snagged using BitTorrent.

I think the Networks should provide an alternative distribution channel where they sell a download of the nights TV shows for like $1 or something. Or maybe charge some kind of monthly fee to download a certain amount of TV content. That way if you didn't TiVo the show (or don't have a DVR) you can have your own copy for a nominal fee. If they don't do this they will end up losing out to companies like BitTorrent.

I mean Napstdevastatedted the music industry until ITunes found the price point that people will pay to get the content without going through the hassle of getting the item for free. Now getting the TV and movie content for free means just downloading the software and going torrentspy and seeing what is available. TV and Movie companies now need to make it even easier to get the content. If they don't they will keep wondering why their revenue figures are getting softer and softer.

Everyone wants a piece of AOL

Now Yahoo has thrown their hats in the ring. It looks like they just want to head Google off at the pass before their get their claws into the thing. Here is what AOL did to get so wanted so fast:

The interest in AOL comes as the company transforms itself from a declining business focused on providing dial-up access to a free content provider able to tap the recent boom in online advertising.

This was a very smart move and it looks like it may pay some big dividends for Time Warner:

The Web portal side of AOL's business is worth about $11.3 billion, based largely on AOL's advertising potential, media analyst Michael Nathanson at Sanford C. Bernstein estimated in a research note.

This would be the most interesting fit I think:

Google would have most to gain from a stake in AOL.

It would give the Internet search leader a way to build a portal -- and grow its advertising potential -- while preserving an existing relationship with AOL responsible for more than 10 percent of Google's revenues.

That would make Google the top dog when it comes to the internet. They already generate lots of cash with their search technology and other offerings. This would give them a whole bunch of revenue streams to keep peoples eyes glued to Google. I only use Google's search technology right now buy use Yahoo for their e-mail, news, finance, and fantasy sports.

If Google could buy AOL then it would be a great incentive to stay on Google all the time instead of Yahoo. Hmm it looks like it will be a 3 way bidding war between the three internet titans for AOL. Now that would be a real catalyst for Time Warner Stock (TWX) in the near term I should think.

Refco circles the Toilet

More corporate malfeasance out there. This looks like it will bankrupt the company as well. Here is what just happened:

In the latest development in the deepening crisis, Refco Securities LLC, a broker-dealer that accounts for more than half of Refco's gross revenues, said on Friday it was unwinding clients' and its own positions. The move signals the unit is essentially going out of business, making it the second Refco unit to stop operating this week.

On Thursday Refco Capital Markets, a prime broker that served the hedge fund community, halted activities and froze all its accounts, saying it did not have enough cash to go on.

Now this is some serious stuff I should think. This is all because CEO and chairman, Phillip Bennett used $430 million in bad debts to inflate the company's financial standing as it went public. He is probably going to go to jail as well. Too bad the stock has been halted because it would be interesting to see what the price would do. Someone sees some value in the company:

Man Group's brokerage unit, Man Financial, has expressed interest in buying Refco's futures business, according to a source familiar with the matter, who added private equity firms were also eyeing the embattled company.

I think they may want to get in there and grab all the traders in one fell swoop before the company seriously goes down the tubes. Well it looks like Refco is going to fall into the same garbage bin that has Enron and Global Crossing in it.

Very funny site to Check out

Here is a site about bathroom etiquette that my friend found that is absolutely hilarious. Much good advice especially about urinal selection etiquette. Great stuff.

Troops in Scripted Event?

This actually didn't seem as bad as I was told it was. It seems that the troops were given a rundown of what they were to expect so they wouldn't be surprised.

"I'm going to ask somebody to grab those two water bottles against the wall and move them out of the camera shot for me," Barber said.

A brief rehearsal ensued.

"OK, so let's just walk through this," Barber said. "Captain Kennedy, you answer the first question and you hand the mike to whom?"

"Captain Smith," Kennedy said.

"Captain. Smith? You take the mike and you hand it to whom?" she asked.

"Captain Kennedy," the soldier replied.

And so it went.

"If the question comes up about partnering — how often do we train with the Iraqi military — who does he go to?" Barber asked.

"That's going to go to Captain Pratt," one of the soldiers said.

"And then if we're going to talk a little bit about the folks in Tikrit — the hometown — and how they're handling the political process, who are we going to give that to?" she asked.

This seems like pretty standard stuff so they are ready to answer the questions. It is like a TV pre-interview where they let the person know what they are going to ask so you can think about your answers a bit. I was thinking that they were heavily coached or given a script or something. And here is the AP being the AP undermining troop confidence etc:

The president told them twice that the American people were behind them.

"You've got tremendous support here at home," Bush said.

Less than 40 percent in an AP-Ipsos poll taken in October said they approved of the way Bush was handling Iraq. Just over half of the public now say the Iraq war was a mistake.

The first statistic says that Americans think that Bush is screwing up the war and the second says that actually going to war was a mistake. Neither of the statistics show that the troops are not supported by people at home though. In fact most people want us to stay the course according to this article.

Overall attitudes about the war while negative haven't changed dramatically through the summer and a solid majority, 60 percent, want U.S. troops to stick it out until Iraq is stable.

I have a feeling that a poll saying "do you support the troops fighting in Iraq" would get an even larger majority of people behind them. I guess the AP would think that is just pro-Bush propaganda or something.

Katie Pregnant for a While?

Hmm now this article contains all kinds of weird stuff on their pregnancy. Now this is the strangest rumor I think:

In terms of just how Holmes got to be in the family way, her aunt has denied rumors that the actress conceived via in vitro fertilization.

"I can assure you they did it the old fashioned way," Carol Zydorczyk said in a recent magazine interview. (We're not even going to ask how she knows for sure.)

Hmm, this could very well be true. It was rumored that Tommy Boy was shooting blanks when he was married to Nicole Kidman. I think this aunt was watching them going at it just like those slaves in Rome do. This is a strange and painful sounding bit too:

In other reports, when it comes time for the actress to give birth in several months, it has been suggested that Holmes will attempt a silent labor in keeping with Scientology tradition.

The practice encourages mothers to be to forgo painkillers and to refrain from screaming or even talking as they bring their children into the world. Scientologists believe that the silence reduces trauma during birth and prevents irrational fears later in life.

Yup, nothing like making the woman suffer in intense agony while they can't even cry out or deaden the pain a little. I wonder if they have a silent C-section cooked up for her if there is complications in the pregnancy. In whatever the case it sounds like something they would do in Maoist China. Some Zen mixed with a little torture.

The 'Lost' Guy Robbed

Seems like Hawaii Kai isn't as safe as it used to be. It seems that someone broke into
Josh Holloway's house and robbed him and his wife at gunpoint. Now that must have been pretty scary for anyone to go through. I have to disagree with this part though:

There was no indication that the robber recognized the 36-year-old actor,

I have a feeling that he was hit because they knew who he was and where he was living. I would investigate some of the relatives of the people that work on the Lost set. I would bet that someone's cousin or something overheard where this actor lived and planned to rob him. It is strange that they didn't just burglarize his house though. Here is a pic of the poor bastard that got robbed:

New Video Ipod

It seems APPL has finally brought out their video Ipod. The prices seem pretty high but it still may fly off the shelves pretty well.

The video iPod -- a long-rumored product that could further spark sales of the popular brand -- has a 2.5-inch screen and comes with 30 or 60 gigabytes of memory. It will sell for $299 and $399, respectively, and holds up to 150 hours of video.

It certainly looks pretty nice to me:


The only problem I have with it is this:

The company also plans to offer music videos for $1.99 each at its iTunes online music store. It will also offer short films from Pixar Animation Studios Inc. which is also led by Jobs.

I'm not sure if this will be worth it because you can already watch these videos for free on on Yahoo Launch. It would seem to me that selling these things may not be a very decent revenue stream for them. There is also word that they will be allowing people to download TV shows as well. This may be an interesting way to spend $1.99 but I still think people won't want to watch an entire 1 hour show on a tiny little screen like that. I wonder if APPL will offer a cradle that connects to your TV. Now that would be an interesting I should think.

Let's Hope for a Mild Winter

Now this price increase will really cut into some peoples spending habits.

A typical household heating with natural gas is projected to spend an additional $350 this winter compared with last year, according to the report published by the Energy Information Administration, the statistical arm of the Energy Department.

Now that is quite a chunk out of peoples already stretched savings. This money will probably come out of buying Christmas presents this season. It may be one of those record low holiday seasons when compared to previous years. This could put a serious hurting on consumer goods and retailers. $350 is around the same price of an X-box 360, a new DVD recorder, 3 pairs of high end jeans, or the Video Ipod.

Smurfs Wiped Out by UNICEF

It looks like UNICEF did what Gargamel has only dreamed of. Their new ad campaign wipes out the Smurfs leaving only Baby Smurf alive to tell the tale. This seems to be their aims:

UNICEF's Belgian office is using the Smurfs as the centerpiece of a new fundraising initiative to shock viewers into donating money to help children in war-torn regions. The agency also hopes to rehabilitate former child soldiers in Burundi.

That seems like a good cause but I don't see how eradicating a cartoon race would do that though. It seems to show that even the Smurfs aren't safe from being bombed out of existance. It would seem like it would scare kids more then it would get people to donate money.

I mean kids are already scared that at any time they may be blown up by terrorists. Now UNICEF is there to wipe out their imaginary friends too. Kids can't even be safe in their own heads. Perhaps UNICEF will try to wipe out Blue's Clues, or maybe Dora the Explorer next. Send money or we drop a Daisy Cutter on Barney. Give me cash or we machine gun the Wiggles. It must be tough to be a kid in this day and age.

I think the FED should release minutes faster

This seems like a pretty good insight into the FEDs thinking and I wonder why they have to release it a week later. There shouldn't be any Top Secret stuff in there at all. It shouldn't take more then a day to transcribe the thing depending on who they get to do it. I think this is important stuff that should be put out there ASAP. Oh well, I guess there is some reason why they delay the thing.

Better Luck Next Year BoSox

Well at least they gave it their all. I really wanted to see a Yankee-Boston 7 game donnybrook for all the marbles but it isn't going to happen. Oh well there is always those baked beans.

Boston Red Sox Swept!

Wow, they didn't put up much of a fight to the supposedly reeling ChiSox. Add this to the spanking that the Patriots got from the Chargers and this becomes a real bad week for Boston. That Pats loss was one of the most humiliating performances from a supposed Super Bowl contender in a long time.

Now the BoSox are blasted right out of existence faster then you can turn your head. So much for the Co-AL East champions or whatever their owner called them. They should have worried more about the White Sox then they did about playing another game against the Yankees to see who actually won their division. Let's hope it isn't another 86 years until they win another World Series.

Some jobs lost but not too much

Looks like the post-Katrina job losses weren't as bad as people thought.

Payrolls fell by 35,000, with jobs in retailing, lodging, bars, restaurants and leisure pursuits such as gambling all taking a hit. The unemployment rate climbed to 5.1 percent, from a four-year low of 4.9 percent in August.

I heard some economists saying that up to 250,000 jobs could be lost. This number is pretty good seeing as how bad those hurricanes destroyed that city and disrupted things. I think that many these jobs came from those casinos destroyed in Biloxi. The unemployment rate rose to 5.1% but not as much as people feared.

XBox 360 Game list released

Well more or less released. This isn't a definitive list but it does have some details on what the system will launch with. Here are the games mentioned:

Take-Two said its launch titles are basketball game "NBA 2K6," hockey game "NHL 2K6," tennis game "Top Spin 2," snowboarding game "Amped 3" and "The Elder Scrolls IV: Oblivion," a role-playing game.

Activision has four Xbox 360 launch titles on its list. They are World War II game "Call of Duty 2," action game "Quake 4," extreme sports title "Tony Hawk's American Wasteland" and "GUN."

EA the world's biggest video game publisher, on Monday said it will have five titles out in time for the launch. They are the racing game "Need for Speed Most Wanted," its "FIFA 06: Road to FIFA World Cup" soccer title, basketball game "NBA Live 06," golf game "Tiger Woods PGA Tour 06" and "Madden NFL 06."

A THQ Inc. (THQI.O: Quote, Profile, Research) spokesman said the company has two launch window titles for the Xbox 360: urban action game "Saint's Row" and "The Outfit," a World War II-inspired game.

Microsoft this week confirmed that the action-adventure game "Kameo: Elements of Power" and "Perfect Dark Zero," both from game developer Rare, will be shipping at launch.

"Project Gotham Racing 3" from independent game studio Blizzard Creations also should be in stores, Microsoft said.

Seems like a pretty good list of games at launch. There will be plenty of sports stuff. Some roleplaying and action stuff to keep people interested as well. It would be nice to see more racing games though but I guess Project Gotham will have to do. I'm probably only going to buy FIFA World Cup and maybe The Outfit depending on the reviews. I haven't bought a Soccer Game for any console and it should get me pumped up for the World Cup.

FED has Inflation Fears

Well, at least they are watching how gas prices may start causing business to charge more for items and stoke inflation fears. This Richard Fisher character seems pretty level headed and speaks fairly plainly. You really don't have to go through and parse his words like you have to do with Greenspan. Perhaps Bush should make this guy the new Chairman of the FED.

Lindsay Lohan wrecks for the third time?

Wow looks like she should be hiring a driver here soon. She again wrecked her car fleeing from paparazzi. This time it looks like she was fine and then got injured in the antiques store or something.

Lohan and her passenger, whom Recano identified as the actress' assistant, initially appeared to be unharmed and ducked into a nearby antiques store, apparently to avoid paparazzi and TV cameras, Recano said. However, according to the sheriff's department, Lohan and her passenger were later taken by ambulance to an unnamed hospital for treatment of "minor injuries." The unidentified driver of the van, meanwhile, was rushed to the hospital with "moderate injuries."

I guess she tripped on some chintz or maybe a 19th century Swiss butter churn hit her in the head. Whatever the case this is one messed up Mercedes

Cruiser shoots and scores!

Well looks like Tommy-boy and Katie are expecting a baby. You can probably count the days until the child is dangled from a balcony or literally thrown through the air on Oprah. You can bet on on one thing though, if Katie goes into postpartum depression she is as good as a goner.

Maybe Google and Sun are going to Merge?

It is just speculation on my part but it may very well be possible. Now that would really change the landscape in any fight with Microsoft. It would put Google in the server software business as well as Linux development. They could then offer OpenOffice (a much better one improved with Google knowhow) via a web service. They seem to be doing some interesting things for NASA right now:

The company announced last week that it plans to build a one-million-square-foot campus on NASA's Ames Research Center in Silicon Valley. The two entities plan to partner up in a host of purposely vague areas, including "large-scale data management, massively distributed computing, bio-info-nano convergence [whatever that is] and encouragement of the entrepreneurial space industry," according to Google's press release.

So maybe they are going to try some kind of distributed computing and data storage over the web type of thing. It sure would be cool to have some sort of Google search of all your documents stored in some offsite area that is backed up every day (or maybe hour or minute.)

Of course the security would have to be iron-clad or it will be another way for hackers to steal data. Google seems pretty good at protecting security (that desktop search screwup notwithstanding) when compated with MSFT. I'm sure companies will pay big money to put something like this in place. No more NAS and they will all have a ready made hotsite at least when it comes to their data.

Google could then create some sort of very secure web collaboration suite that would challenge MSFT. This could be done with an enterprise level chat client that could be developed in-house or possibly made by Yahoo. A combined company will mount a serious threat to MSFTs dominance in the market for sure.

It would change the nature of Google but I think it would be a very forward thinking move. It will lauch the time when software will become more web-based then PC based. We won't have to store data or even the applications on the PC or even on the business site anymore. All of that stuff will be taken care of on big server farms at Google headquarters or somewhere around the world. Sun was talking about this during the bubble era but now we have players like Google that could make it a reality. SUNW+GOOG>MSFT for sure.

Update: Google is pushing OpenOffice

Ah, looks like Sun is including Java Runtime engine with Google Toolbar and Google will be somehow pushing OpenOffice as well. I thought they were only going to do the Toolbar and Java Runtime addon. However this seems to be a strange thing for McNealy to say:

Financial terms were not disclosed. "There is going to be a lot of money flowing both ways if we do this thing right," McNealy said.

Isn't all of this stuff free? So they seem to be getting together to push a bunch of free software that I guess will generate traffic for Google's web page or something. I can see how Google will make more money if people are jumping on to view the ads while they download OpenOffice.

I'm not sure how Sun will be making any money though. I guess it increases the installed base of OpenOffice and Java Runtime Engine in regular users homes. I really don't think most companies will be wasting their time with OpenOffice anytime soon. I mean they could have switched over a long time ago but haven't. I don't think Google pushing OpenOffice on their webpage (or whatever they will try to do) will make these companies switch any faster.

Google and Sun go after Office? Say What?

Now this is really a stretch in this article. This is what Sun and Google are collaborating on:

Under the deal, the toolbar will be offered as part of the Java Runtime Engine.

Eventually, the Java component could be offered to users who download the free toolbar that offers quick access to Google search, spell checking and a popup blocker.

But since Sun makes an Office suite called OpenOffice people are jumping to the conclusion that Google is somehow pushing OpenOffice. No, that is not what the two companies are collaborating on. They are simply putting Java Runtime Engine which will probably do almost nothing at all for the average user on Google Toolbar. I have Java Runtime Engine (it came with StarOffice 7.0 that I was testing) on my PC and all it seems to do is periodically ask if you want to update the thing.

Also MSFT shouldn't be scared a bit since OpenOffice is a pale competitor to Office 2003. The thing doesn't work very well with newer macro's that are created in Excel2003. It doesn't have any collaboration suite like Office 2003 does. Also a lot of the functionality of Word is missing in the version of OpenOffice that I tested. The interface is also very clunky feeling to a person that uses MSFTs Office a lot.

It is true that I never went into heavy detail testing OpenOffice because an attachment that I tried to open in Outlook Web Access crashed with an RPI not found error. A user shouldn't have to research a weird assed error messages like that. I'm sure there is a fix to the problem but I don't want to have to search for it or patch the program and hope for the best. I would simply have my PC loaded with Office 2003 and the file opens with no muss or fuss. OpenOffice's is only real selling point IMO is that it is free. Google could offer to come to my house and install OpenOffice on my machine personally and I still wouldn't switch from Office 2003.

This is why Nick Cage is my favorite Actor

He just had a kid with his wife Alice Kim and named him Kal-el Coppola Cage. Yup, he named his son after Superman's Kryptonian name. Now that beats all those dorky celeb names by a mile. You can take all your Apples, your Tallulah Belle, and your Phinnaeus' and dump them. You can't beat Superman for a name. I guess he could have called the kid Clark Kent Cage but that sounds too much like a TV anchorman.

Q4=Energy and Financials

They should be growing their earning like gangbusters in this upcoming quarter. According to the article we should be selling off retailers, consumer-discretionary, and materials.

Meanwhile, retailers and consumer-goods wholesalers are especially vulnerable to rising gasoline prices as consumers put more of their income into their gas tanks, leaving less to spend at stores

As for consumer-discretionary companies, they are seen posting earrings growth of just 1%. That is the second-worst performer only to the materials sector, which is expected to decline.

Still, that's better than what's expected out of the materials sector, which is projected to post and earnings decline of 5%, according to Thomson Financial. Dow Chemical, DuPont and U.S. Steel Corp. (X) will be responsible for most of the fall-off. Natural gas is the primary fuel used to run factories, and it's the most-used raw material in manufacturing.

However here is why we should be buying:

As a result, the energy sector has delivered the most substantial upward estimate revisions of any sector of the economy since the first quarter of 2003. ExxonMobil, Chevron and ConocoPhillips (COP) are the three biggest factors behind the sector's bullish profit outlook, according to Thomson data.

After the energy sector, financial firms are expected to post the second-highest growth rate, up 21%, with total earnings coming in at $45.7 billion vs. $37.1 billion in 2004.

Seems like sound advice to me. I like this company myself:

Then there's Goldman Sachs Group Inc. (GS) , which on Sept. 20 reported an 84% gain in third-quarter earnings, booking a record profit of $1.6 billion, or $3.25 a share, and greatly lifting the sector's overall prospects.

As was expected Syria put the hit on Hariri

It looks like the Syrians were the ones who killed off former Lebanese Prime Minister Rafik Hariri. At least this is what some defectors have claimed. This is something that concerns me though:

Bush's national security team is due to meet Saturday to review policy toward Syria, the officials said. Options range from tougher economic sanctions to limited military action. One official involved in the deliberations said military action is unlikely for now.

Let's not bomb them just yet. I know if the choice is between Syria which we could probably take in a few weeks and Iran (which would be a terrible Vietnam style slog) we would choose Syria any day. We can barely get the corner turned on Iraq and we are beating the war drums again. I think merely isolating them and helping internal anti-Syrian groups would be good for a start. Any protracted land war will result in another costly rebuilding process.

Maybe a few years down the line we can have Iraq attack them with our logistic and technological help. I mean we are an Empire so we can get our satellite to declare war on the enemy and come in and give them free weapons, planes, and logistical help. I may be playing too much Victoria lately. :P

Oracle to Crush Salesforce.com?

Now this is an arrogant ass. Here is what this President of Oracle says:

"In this case I think it would be much more fun to crush them," Oracle President Charles Phillips said of Salesforce.com at a press briefing in New York. "We see a lot of ways to compete with them. We will try that for a while."

I really hope Salesforce.com beat Oracles face in the areas where they compete. It sure would be nice to make this arrogant SOB eat his words. I also hope that Salesforce.com would put some kind of poison pill or something in their bylaws to prevent Oracale from ever taking them over. Or they should be acquired by SAP which as I recall is Oracle's nemesis.

Whatever the case I will never own Oracle as long as idiots like this are in charge. Well the stock has flatlined for about 3 years so it really isn't worth owning anyway. Perhaps if they got rid of arrogant jerks like Phillips here the stock will do a little better.

Yahoo Sued

It seems they poached an executive from a company called Nuance Communications and they are getting some payback via the courts. I think Yahoo should either settle or just bought the whole firm. I mean they have $3.39 billion in cash just sitting there doing nothing. Oh well I guess they could give Nuance the old MSFT treatment and smash them into the ground.

Bible to be Taught in Public School!

Here is a new course on the Bible that shouldn't draw fire by the various militant-atheists out there. I think Bible knowledge is very important to figure out quite a bit of things in society nowadays. You can see how the various religions think and get their basis from. It seems you can really understand Shakespeare better as well. I never knew this about his work:

Students may gain a more nuanced understanding of Shakespeare, with his 1,300 biblical references;

When I was going to school they only taught Bible knowledge in Advanced Placement English which I was one level too low to qualify for. I ended up watching History Channel documentaries and reading the free Bible that the Mormons gave me. I think this would have been a great thing to learn about in High School instead of much later on.

Good time to Buy Yen

Looks like the time is ripe to switch your dollars into yen if you are going on a Japan trip like me. The yen is trading at 113 yen per dollar. If that Tankan survey is really good then the Yen price may move a few yen stronger. However this other guy thinks:

Alan Ruskin, foreign-exchange analyst with 4Cast, thinks any significant yen gain hinges on factors beyond a rosier near-term economic picture.

Ruskin says the yen needs at least two of these developments to play out before it will gain: acclerated yuan appreciation; Bank of Japan interest-rate tightening; the end of U.S. interest-rate hikes; and the end of so-called carry trades, particularly in emerging markets.

I do like how the Japanese stock market is at 4 year highs though. That is good news for people who own shares in the iShares MSCI Japan Index Fund (EWJ)

Roberts is In as Supreme

Looks like he passed the Senate and will be the nations 17th Chief Justice. He looks like a solid Justice and should be a fairly moderating force that will follow the Constitution. Much more so then some left-wing firebomber like they have in the 9th district. Whatever the case we have to get used to him because he will be on the Court for many, many years.

Gas Prices Cut into Wallets

This doesn't look good for the Credit Card Industry. It seems Americans can't pay for the high gas and keep up with their ballooning credit:

The American Bankers Association reported Wednesday that the seasonally adjusted percentage of credit card accounts 30 or more days past due rose in the April-to-June quarter to 4.81 percent. That followed a delinquency rate of 4.76 percent in the first quarter and was the highest since the association began collecting this information in 1973.

It seems that Americans are living too far beyond their means. The low savings rate provides little cushion for these people as well. Let's hope the disruptions don't give us $4 gas anytime soon. Now that will really send Americans reeling.

Deaths at Superdome Urban Myth?

It seems that they found only a handful of people dead in the Superdome.

They have no official reports of rape and no eyewitnesses to sexual assault. The state Department of Health and Hospitals counted 10 dead at the Superdome and four at the convention center. Only two of those are believed to have been murdered.

So there seems to have been only 2 real murders? The media I think is to blame for swirling all of this out of control. They needed to have had a reporter in the Superdome showing people what was really happening. But I guess the reports of:

children with slit throats, women dragged off and raped, corpses piling up in the basement —

were just to scary for reporters to brave. Ormaybee officials were keeping the reporters out of the Superdome for their own safety or something. But this is the stuff of urban legends. Here is how it will start I think. The FEMA officials or perhaps National Guardsmen dragged the bodies out of there early on. There were hundreds of dead spirited away by black painted trucks.

A week after the floodwaters poured into the city, an Arkansas National Guardsman told The Times-Picayune of New Orleans that soldiers had discovered 30 to 40 bodies inside a freezer in the convention center's food area. Guardsman Mikel Brooks told the newspaper that some of the dead appeared to have met violent ends, including "a 7-year-old with her throat cut."

So this guy started the rumor that children were getting their throat cut. I wonder if this guy was an actual eyewitness or just got this info from someone else. It would be interesting to follow up to see if this guy meets a suspicious end in the coming months. Death by hunting accident alone in some barren place with a different caliber of bullet in his back then the rifle he was carrying. Or he was found dead at the wheel of his car at a red light of an apparent heart attack. That would solidify the coverup if there was one.

In any case this incident would be great for a social scientist who studies the psychology of crowds. Finding out how the rumors were started and how they were spread would be some interesting reading.

The Japanese ditch Hollywood Stars

Seems like there will be less and less Lost in Translations out there. This is a very interesting article on how the advertising industry is changing in Japan. It seems Hollywood stars will have to shill items in the US if they want to make the big bucks. The Japanese have Asian Fever now. And this is why:

The catalyst for the change, almost everyone agrees, has been Japan's raging love affair with Korean culture that took everyone here by surprise two years ago.

The phenomenon was spearheaded by a drama series called "Winter Sonata," a tragic love story featuring Bae Yong Joon, a South Korean actor affectionately referred to as Yon-sama in Japan. With his baby face and great teeth, Yon-sama, 33, flutters the hearts of Japanese women in their 30s and older, who tell market researchers he rekindles the romantic urges they felt in their youth.

Yup, this guy is the best thing since sliced bread in Japan now and he is the kind of person that advertisers want to sell things. The article goes on to say:

It's a demographic that makes marketers swoon, too. Yon-sama is now the biggest foreign star in Japan. Bigger than Brad. Bigger than Leo. Dozens of Japanese companies are desperate to attach their brand to Yon-sama, or at least to find the next great Korean star.

"Five years ago, two years ago even, I could never have imagined this happening," said Tomoko Kamiguchi of Dentsu Casting & Entertainment, which negotiates with talent agencies to get stars for its clients' ads.

So is seems that American stars aren't such a big deal anymore in Japan. They have wan Koreans to fawn over nowadays. I mean this guy isn't the most manly looking guy on block but
he moves the product in Japan. I wonder if the reason for this guy popularity is his non-threatening and metrosexual look? This could be the reason why Richard Gere is still making money in Japan. He seems anything but manly nowadays. He's more of a peaceful Buddahman. Even that Nick Cage ad mentioned in this article was 4 years ago before this Yon-sama burst (well crept preciously) onto the scene.

When BoSox Win Emergency can Wait

I guess when the BoSox are winning people go to the emergency room 15% less. I guess it is because they are sitting at home watching the game and not doing something that they would have to go to the emergency room for. Sitting on ones couch watching the ballgame is probably one of the safest pursuits a person could engage in. Well the people could have heart attacks or something once Boston finally one the World Series. I mean the people that remember them winning their last one are quite frail I would assume.

These Oil Guys Don't fool Around

Wow I don't think the refineries are going to be hit as hard as people think from Rita. These guys are really ahead of the game. Transocean a company whos shares I owned last year is doing this:

installed hotlines out of affected areas and ordered satellite phones for people who support its operations in the Gulf of Mexico, said Guy Cantwell, company spokesman.

"We also learned it could be a 15-hour drive to get the phones to someone in Houston, so we had them sent in by chopper," he said.

While Valero is:

"We are about two or three days ahead of where we were with Katrina," said Mary Rose Brown, spokeswoman for San Antonio-based Valero.

"RVs are rented and ready to go; trucks are packed and ready; we have generators ready; and we've sent refinery managers cash that way we can get it to employees affected," she said.

I think their refineries have to take a direct hit to not be up and running the day after the storm hits. It seems that gas prices shouldn't be affected as much by the storm as people think.

Buying songs on your cell phone?

It seems Wireless carriers are trying to get people to buy songs on to listen to on their cell phones now. I'm very skeptical that this will take off. I can see people put songs onto their cell from their desktops depending on how easy it is. They would just need a USB connector and they are all set. I would be willing to bet that some wireless providers like Verizon will cripple their phones to force you to use their service. I think this approach is the wrong one though:

Published reports suggest that Sprint plans to charge around $2 for its full-length song downloads, which would be double the desktop price. Although Nancy Beaton, Sprint's director of entertainment and personalization, declined to discuss details, she said "customers will put a premium on the convenience."

I'm not sure they will if they already bought the song on the desktop. If they paid $1 for the song already they might not want to pay $2 just to listen to that same song on their phone. I can see people paying for ringtones since it takes some work to make a ringtone on a PC and then get it to work on a phone. Paying double for a song that doesn't sound as good just so you can listen to it on a phone is not something that people will run out and do. This may be the same sort of growth white elephant that watching TV or DVDs on your phone will be.

The Germans sure like their Beer

And I sure like these Germans.

Global Warming to Create Social Unrest?

This is quite a jump according to this report by the Australian Medical Association (AMA) and the Australian Conservation Foundation. Here is what could come of global warming in the by 2100:

"As stresses increase there is likely to be a shift toward authoritarian governments," the report said.

"At the worst case, large scale state failure and major conflict may generate hundreds of millions of displaced people in the Asia-Pacific region, a widespread collapse of law, and numerous abuses of human rights."

Well at least the authoritarian governments will be done in by the collapse of law and the major conflicts. So global warming may be a bad thing and a good thing at the same time.

The thing that this report doesn't take in is that by 2100 we probably won't be burning too much fossil fuel because we will have used it all up by then. Even the Saudis may start having declining oil pumping rates before too long. Eventually, oil prices will get so high they won't be economically sustainable and people will move on to fuel cell, methane, or even steam power if it becomes a cheaper alternative. There is no way to project global warming to 2100 without taking into consideration all of the things that will have happened in that 100 years time.

Interesting Article about the possible AOL/MSFT merger

Hmm this article is very interesting regarding this possible merger. The Bullish guy raises some very good points. While the Bearish guy has thinks MSFT should undercut its rivals in paid search (since they have money to burn) instead of merging with AOL.

One thing MSFT should try is to make all of AOLs customers into broadband subscribers by any means necessary. They should try to make the dialup connection obsolete. They can work with local broadband suppliers to create a MSFT branded broadband service that they can provide to AOL customers on the cheap. They could even make this the default setting in Vista. It could mean that more people will be going to Google and Yahoo but they will be paying MSFT $19.99 to do it.

Microsoft Reorganizes

This seems like a great idea for MSFT. They seemed to be having all sorts of communication problems and were losing people to Google due to bureaucracy. Here is what they are doing:

One of the three new divisions, Microsoft Platform Products and Services, will include the company's Windows, server and tools, and MSN online divisions. It will be led by Kevin Johnson, formerly in charge of worldwide sales and marketing, and Jim Allchin.

The other two units are Microsoft Business division, which will include its Office products and products for small- and mid-sized businesses, and Microsoft Entertainment and Devices Division, which will include its Xbox game console, other games, mobile phone and handheld devices products.

I like how they are joining the all of those items in the MSFT Platform Products and Services together since they all pretty much work in concert with one another. Now they can seriously integrate things so they work together well. Let's hope we'll see the end to those weird server side errors that you have to be an MCSE to fix.

It also seems they had a WWII German army system going before:

"There's a whole set of decisions that might have had to percolate to Bill Gates' and I because they crossed the seven ... Business groups that are now contained in these three divisions, and I think that ought to lead to crisper, faster actions on certain kinds of decisions we need to make," Ballmer said.

So there seems to be lots of decisions that Gates and Ballmer had to work on personally. Just like Hitler had to personally okay almost everything army related. So they couldn't commit the Panzers on D-day because they didn't want to wake him up.

It looks like they are switching to a more Napoleonic Army system of thinking instead. The French allowed the Marshals to maneuver on their own initiative but were answerable to the Corsican if things went badly. So maybe the Marshals of the three new departments will get to do their own things without having Gates or Ballmer around to okay everything. That seems to be the aim:

The company's reorganization will merge seven business units into three divisions. That is aimed at helping the company become more nimble and giving executives broader power to make decisions without bringing in top leaders.

FED Raised Rates Again

Yup they pulled the trigger. I guess they think that the Hurricaine's impact will not be felt for too much longer. I hope they know that gas prices are starting to crimp peoples buying habits out there. The gas cap here is making people delay purchases hoping that prices will go down. They also seem to be buying less cars as well. If that is happening in the rest of the nation then that can't be very good for the economy.

Maybe that is the FEDs gambit. They are thinking that much of the high prices are because of speculation and should drop before too long. So they are just moving along at their measured pace hoping gas prices don't hurt the consumer too much. It seems that any threat to supply however tenous is driving prices strait up. That seems like bubble behavior to me.

I Agree with Jobs when it comes to Online Music

I think Jobs is right on the money when it comes to raising music downloading prices. I think ITunes may have saved the music industry from a death spiral and now they want to try to crash the plane again. Even with the low price of $.99 cents per song people are still pirating music. I think an even larger number will go back to pirating if they are charged more.

It seems that $.99 is the absolute ceiling per song. People are finally being conditioned to think that free is not the default price of music. They are now thinking the default price is $.99 or lower. The hassle of piracy will look better each cent charged over what they have been conditioned to pay. I mean free is much better then $1.50 or whatever they jack the price to. This guy is totally clueless:

Sony BMG CEO Andrew Lack said at a Reuters gathering earlier this year that Apple is benefiting from two revenue streams, sales of both the iPod devices and song downloads, while the music industry has only one.

"I'm not making any money on this," he said. "I've got one revenue stream that a proctologist would have a hard time analyzing. It's not pretty."

Umm, then get your parent company to make an IPod killer then. If they don't know how then you will have to make due with that one revenue stream. They have already cranked album prices to such a level that it is cheaper to buy the songs from ITunes. Now they want to choke off the only profitable revenue stream they have left. I think these guys just want to be the next airline industry. Just counting the days until they all go bankrupt.

That's how Kate Moss stays so thin

I guess being like a supermodel means snorting some coke every now and then. At least the Mirror got some real photographic proof this time. I wonder if she is going to give back her settlement because is seems that the story was true. This is the funniest part though:

After she agreed in writing to abide by H&M's policy that its models be "healthy, wholesome and sound," the company decided to keep her on, spokeswoman Liv Asarnoj said

Hmm I wonder if sniffing coke makes one healthy, wholesome and sound? Maybe this is the 2000s version of early to bed, early to wise, makes one healthy, wealthy, and wise.

Activision Chief Seems Optimistic

This some very interesting comments on the state of the video game industry. I agree with what he is saying about increasing their margins. I can see games going to $60 as they first introduce the new consoles. Some of the consoles seem to have graphics that compare favorably to computers. A $60 game is just $10 more then computer games go for but you only have to pay $200-300 to get situated with a console instead of $2000 for a computer. This part I'm not so sure about this though:

Activision had ten franchises selling over 1 million units this past fiscal year. Kotick says that Activision could expand this number to 12 in fiscal 2006 and is particularly bullish on the prospects for "Gun," a Western-themed shooter title.

I checked out the trailer for the game and the graphics really weren't all that hot. Although, it would be fun to play a western First Person Shooter this one doesn't do anything for me. Also the blood shooting out of people look really strange for some reason. The story elements seem kind of interesting but nothing too spectacular

It does seem to have some good doses of sex, violence, and cussing which should sell some copies I guess. Also Deadwood shows that an adult style Western will get people to stand up and take notice. Let's hope the game version will reach the same audience.

Good news for STEM

This seems like a very good deal for the StemCells (STEM.) Well down the line quite a bit anyway. The thought of allowing people to recover from paralysis is something that will capture people's imagination. Too bad this is so far off though but these kind of companies that push the technology envelope are fun to follow.

Jeb Bush Son Arrested

They picked him up for public intoxication and resisting arrest. I guess the apple doesn't fall too far from the tree. I mean W was a boosehound way back when as well.

Bush Writing Checks he Can't Cash?

Wow $200 billion added to the deficit to rebuild New Orleans? Now that is a pretty big chunk of change on top of Iraq and Afghanistan. I think they are getting ahead of themselves here. It seems that quite a few of the people that fled are not going back to New Orleans are going to settle in the evacuated areas.

I think the government agencies should go in there and interview each survivor and gauge their intentions first before federal rebuilding money is tossed around. If they plan to stay in Texas lets say and prosper then money shouldn't be poured into New Orleans. And with those corrupt and incompetent officials there the money may be wasted or embezzled faster then it can pour in. Lets hope the feds keep a tight reign on this money.

Still it rankles my fiscal conservatism to just throw money at something like this. Let's hope there are checks and balances in place and they have thought things through. If this move impacts the economy beyond high gas prices and the general devastation caused by the hurricane then I will be joining the "I hate Bush" camp.

Microsoft To Buy AOL?

This seems like an interesting development. I mean Time Warner can finally get rid of that underperforming business and Microsoft can add their users to the MSN name. This article says they are collaborating pretty deeply. MSFT has a ton of cash but haven't made many acquisitions recently so there might be something brewing. Here is the extent of the collaboration:

More recently, the executive said, the two companies have been talking about the possibility of deeper relationships, such as collaborating in the lucrative market of selling advertising online.

The person familiar with Microsoft's thinking said the company's MSN unit has always been interested in striking a deal that would allow it to benefit from AOL's market-leading instant messenger program.

Hmm, adding the user base of AIM and MSN could be an easy way for MSFT to increase their installed base. Also they seem to be trying to make an inroad into Google and Yahoo's lead in internet paid search. Could be a good fit as long as MSFT doesn't send out millions of those annoying free CDs.

They Lost Plague Mice?

Wow there should be some kind of accounting for this screwup at the Public Health Research Institute. They lost some mice that were infected with Bubonic Plague. And this is a very weak answer by them:

Federal official said the mice may never be accounted for. Among other things, the rodents may have been stolen, eaten by other lab animals or just misplaced in a paperwork error.

Paperwork error? Eaten by other animals which are probably infected with Bubonic Plague right now? Hopefully not stolen by Al-Quida operatives? I think someone needs to be reprimanded for this mess.

Techland M&As Big Again

This is a very interesting article about how big internet companies are flush with cash and looking to buy certain companies. It also covers how the environment is different now then it was in the Bubble years. Both companies are more solid balance sheet wise and have weathered the tough times. It talks about the EBAY/Spype deal and has this interesting tidbit:

The software industry will remain active. Big corporations increasingly want to purchase their software from a few big players. That's forcing the smaller outfits into the arms of larger buyers. Salesforce.com (NYSE:CRM - News) is viewed as a likely takeover target, according to analyst Stuart Williams of Technology Business Research. Potential buyers could include big software companies, possibly even Oracle itself.

Hmm, this could make the stock even more attractive then what I was thinking yesterday.
I can see a big company like Oracle scooping this company up instead of building a web based CRM solution from the ground up. Very interesting news.

Lets hope this Doesn't happen here

Looks like the Brits are having some gas shortages. Let's hope the idiotic gas cap here in Hawaii doesn't cause us to deal with stuff like this picture.