Saturday, May 31, 2014

Cab Thoughts 5/31/14

Democracy and socialism have nothing in common but one word: equality. But notice the difference: while democracy seeks equality in liberty, socialism seeks equality in restraint and servitude.--deTocqueville


An interesting new view of energy management has emerged in the last months, the idea of investing in power sources and managing them separately from the utilities. For example a condominium complex could add its own solar to its utility energy source separately, store it separately and use it as needed separately. The solar and the storage system could be managed as a partnership separate from the utility, like a REIT. It would be a stable return on income--and a real threat to the utility as it would be used most likely in peak, expensive hours.

OK: In the spring of 1839, the phrase 'OK' began to circulate in Boston as shorthand for 'oll korrect,' a slangy way of saying 'all right.' Early in 1840, Van Buren's supporters began to use the trendy expression as a way to identify their candidate, whom they labored to present as 'Old Kinderhook,' perhaps in imitation of Jackson's Old Hickory. Van Buren even wrote 'OK' next to his signature. It spread like wildfire, and to this day it is a universal symbol of something elemental in the American character -- informality, optimism, efficiency.
 
Who is....Madison Washington?

South Africa is both the murder and especially the rape capital of the world.  South Africa has more first degree murders per year (16,000) than the U.S. (14,000) which has six times its population. For all murders, South Africa is above India’s 43,000 homicides, despite India's 1 billion population. (South Africa numbers 50 million.). 8 percent of murder cases in South Africa result in a conviction.

Social engineers: After Spain defeated the Morisco rebellion of Alpujarras (1499-1501), Muslims and Jews fled eastward toward the Ottoman Empire. The Spanish monarchs feared that these religious outcasts would board ships in Seville and escape to the Americas. The last thing Ferdinand and Isabella wanted was for their centuries-old battle with Islam to continue in the New World so they took great measures to ban the importation of Muslims. Several church decrees, cedulas, were passed (in 1501, 1532, 1543, 1550, and 1577) to stop the flow of 'white slaves' (esclavos blancos), as Moors were called, and to deport those who had trickled into the New World. (The Spanish were apparently particularly concerned about the infection of Africans slaves with Islam.) They also were alarmed at the potential for unions between Spanish and indigenous American Indians so, while they banned Moorish men in the New World, they allowed for the importation of Moorish women and used these women as prostitutes in the New World. In 1526, Charles I authorized the establishment of a brothel of moriscas ('casa de prostitutas blancas') in San Juan, Puerto Rico,  to avoid mixing between Spaniards and indigenous women.
 
Golden oldie:

The very first flush toilet was built by John Harington, godson to Queen Elizabeth I. When Harington demonstrated his invention to her in 1597, she had it immediately installed in Richmond Palace. But it was a novelty well ahead of its time, and almost 200 years passed before Joseph Bramah, a cabinet maker and locksmith, patented the first modern flush toilet in 1778. The water trap improved it greatly as it prevented backflow odors. Thomas Crapper, a plumber, invented the modern toilet in the late 1800s.
 
James O'Keefe is pretty obnoxious but this stunt he pulled off is disturbing. O’Keefe trapped actor Ed Begley Jr., actress Mariel Hemingway, and director Josh Tickell, into agreeing to do an anti-fracking film funded by fraudulent Middle Eastern interests while promising to hide the source of the funds. The undercover activist tells the group that "if Washington, D.C., continues fracking, America will be energy-efficient, and then they won't need my oil anymore." In a phone call to Tickell, the "ad executive" states, "My client's interest is to end American energy independence; your interest is to end fracking. And you guys understand that?" Tickell's response: "Correct. Yes, super clear.”
 
Jane Fonda is writing a novel.
 
Some $2.5 trillion is on deposit in the banking system in “excess” reserves, that is, loanable funds available to individual or corporate borrowers through the nation’s banks. The Fed has created these reserves through unprecedented purchases of U.S. Treasurys and mortgage-backed securities, a strategy known as quantitative easing. These reserves are just sitting in the bank system, basically doing nothing, because demand for loans has been unusually weak amid an economic recovery that’s the slowest on record since the Great Depression. Philadelphia Fed president Charles Plosser fears if these funds work there way into the regular economy, inflation will result and the Fed will have to raise interest rates, killing the weak recovery. By the time the Fed ends it bond-buying campaign – mostly likely in the fall – the central bank’s total reserves could reach a record $4.5 trillion.
 
Finally! Asked on “Good Morning America” on Wednesday whether she’d ever considering running for office, Angelina Jolie replied, “You know, if I thought I’d be effective, I would.”
 
 Alan Pyke has an interesting article in ThinkProgress concerning the recent Credit Suisse bank case settled by the U.S.. His conclusions are that cooperation with law enforcement is rewarded with considerable leniency, that admission of guilt is generally painless regarding financial consequences and that these banks are indeed "too big to jail." On the last point he writes: "The tax evasion operation was well organized, according to Senate investigators, and Credit Suisse employees solicited Americans to participate in it “with the full knowledge of senior bank personnel.” The bank’s transgressions, which often involved Swiss bankers behaving like Hollywood spies, concealed at least $5 billion and probably more like $12 billion from the Internal Revenue Service (IRS). Yet despite the size and formality of the scheme, senior executives do not face criminal charges and will not even be forced out of their jobs under the settlement. A handful of junior bankers have been charged but that’s where the individual consequences end. Compare Credit Suisse’s experience with that of Wegelin & Co., a much smaller bank that was also Switzerland’s oldest. That firm pleaded guilty to American charges and then closed its doors forever."
 
A letter signed by 50 U.S. senators urging the league to change the Washington Redskins name was sent to NFL commissioner Roger Goodell. The relentless war on words continues.
 
The SEC must revisit the existing definition of an individual accredited investor shortly to determine whether it “should be adjusted or modified for the protection of investors, in the public interest, and in light of the economy.” Some organizations are pushing for an increase the financial thresholds in the name of investor protection – taking net worth requirements from $1 million to $2.5 million and annual income thresholds from $200,000 to about $450,000. The SEC estimates about 60 percent of households would no longer meet such higher requirements.
 
 
AAAAAAAaaaaaannnnnndddddd.........a graph on the adage "sell in May" which claims that the stock market only advances in winter:
Chart of the Day

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