Headlines

Coronavirus gets a promising drug. MAGA world isn’t buying it.

Warren Buffet built up cash and bought only a small amount of stock during market rout

US. deaths 65,298 ...

Biden claims ‘600,000 dead’ from virus ... Accuses Trump of having ‘intercourse’ with world

2 more California counties set to defy Newsom lockdown as pressure builds

Coronavirus live update: Antibody study estimates 12% of New Yorkers have had virus

May Day: Protesters demand freedom ... Cuomo: Too soon ...

Span eases strict lockdown

Canada bans assault-style guns after Nova Scotia rampage

Op-Ed: China has a big but brief chance to speed its way to global leadership

White House blocks Fauci testimony ...

France extends virus emergency until July 24

Headlines

Mexicans protest Trump administration’s latest deportation plan

After its strongest year in a decade, Apple stock is historically expensive

US embassy attack on Baghdad ... pro-Iran mob ... Trump: Tehran will pay

Lindsey Graham’ There will be no Benghazi on Trump’s watch

CBS airs picture of Elijah Cummings during segment about Rep. John Lewis’s battle with cancer

Fugitive ex-Nissan chairman, Carlos Ghosn says he fled Japan to escape ‘injustice’

Buchanan: Will war derail Trump’s re-election?

Joe Biden: ‘We’re all dead’ if we don’t stop using fossil fuels

Trump claims America stopped terrorist attack in Russia, Putin called to thank him

This decade saw Warren Buffer finally turn his back oh IBM and jump big time into Apple

Consumer confidence unexpectedly drops on dimmer outlook ...

Joe Biden: I would consider a ‘decent’ Republican for my running mate

Quotable Quote

There is never just one cockroach in the kitchen. — Warren Buffet

Equal Outcomes

I’m fairly sure I now don’t receive the same quantity and quality of healthcare as Warren Buffet.  I also strongly suspect that a strung-out druggie in Miami does not equal me in quantity and quality of medical attention.  So, if I vote for Bernie Sanders, is he going to even things out for the three of us? And, if he can’t ... as I can assuredly guarantee he can not ... since Socialism is a Pollyanna scam ...  then why should I or anyone else pick him for president?

Headlines

White House prepares to spin defeat as victory

Michael Cohen: Trump said black people are 'too stupid to vote for me'

Pence: We're keeping the House!

Kavanaugh rape accuser admits she made up her story

Trump tests his stamina with intense midterm rally schedule

Trump's top economic adviser says Cabinet was not asked to draw up a trade plan for China

NYT: Nationalism is breaking point for some suburban voters ...

Migration [caravan] lawyers recruit migrants to sue Trump

Supreme Court allows census trial to move forward

Warren Buffet loses nearly $4 billion in single day on his Apple stake

Biden threatens violence ...

Pittsburgh mayor: Armed security wrong response to synagogue shooting

Headlines

All from Internet news sites. Guess which from Politico?

Key GOP senators open to 'bump stock' ban

Las Vegas gunman may have been aiming at tanks filled with jet fuel

San Diego hepatitis outbreak continues to grow: 481 cases ...

WSJ: Federal Reserve needs an outsider as chairman

3 U.S. commandos killed [by ambush] in Niger

Jobless future: Shake Shack's humans out, robots in

CIA predicts NKorea action on Columbus Day ...

EU orders Amazon to pay nearly $300M for 'illegal tax advantage'

Senate investigators: No conclusion about collusion with Russia in 2016

Warren Buffet bets AGAINST self-driving trucks

Quake swarm at Yellowstone supervolcano now longest ever recorded...

Study: 12 Texas counties have more registered voters than adults

Taxing Times

Democrats never seem to see a new tax or a tax hike that they don't like. Take a quick gander at the tax mine field that President Obama laid down for Americans during his reign (mostly tied to Obamacare) ... see: Americans for Tax Reform Listing. Many of these 21 new taxes actually hit the middle class ... violating a pledge that Obama made before he was first elected.

Now, as to be expected, there are also taxes in the Obamacare mishmash that are graduated ... progressive if you will ... meaning that wealthy people will be understandably harder hit. And now comes the expected Democrat demagoguery (note the same first letters) surrounding the Republicans in the Senate's effort to scuttle Obamacare. The Dems are pounding the table saying that this Obamacare repeal will give huge tax breaks to the wealthy. And Warren Buffet, on cue, echoes this refrain ... see: Fortune Magazine Story.

Duh! Do I need to point out the obvious? If Obamacare is eliminated ... along with its repertoire of taxes ... then those taxes meant to soak the rich also go away ... so Upchuck Schumer is technically right ... but still is a big fat demagogue in the process. Are Republican healthcare reformers expected to keep these vestigial taxes as memorials to the disaster that was Obamacare? This would be like the smile that persists after the Cheshire cat has disappeared.

If Warren Buffet wants to pay more taxes, then I am sure that this can be arranged during the next big Republican government overhaul ... the coming tax reform process.

A Country for [Rich] Old Men

Once upon a time very wealthy individuals used their largess to endow libraries, concert halls and museums. Not so anymore.

It seems now that rich old men don't want to leave our world to itself. George Soros is suspected of being behind the massive immigration of Syrians into Europe ... see: Breitbart Story ... and Warren Buffet believes that that our supreme liar Hillary Clinton (or even Bernie Sanders) would make a crackerjack president ... see: Business Insider Story. And, of course there are Harry Reid's bugbears, the Koch brothers ... who want conservative principles to prevail once again in this country. Of course, there are many other people of wealth who believe that this money gives them license to run things politically.

And even our younger plutocrats are fighting the existing social order. Bill Gates strangely now believes that the only solution to our world's problems is Socialism ... see: The U.K. Independent ... and everyone knows how multi-billionaire Donald Trump is grabbing the headlines with his thoughts for national change.

How come amassing vast piles of money in business suggests to these folks that all their ideas deserve to be worshiped?.

Seesaw

The stock market has had it's share of volatility over the last three days. The Dow Jones Average was down over 250 points, then up  over 270 points, and now, closing at its lows, down 335 points. (For some reasons see: CNBC Item.) These clearly are wild swings ... but the stock indices have had much larger gyrations in the past years. This, of course, does not reduce the required dose of Pepto Bismol for those who are risk-averse. Like bronco-bull riding, this kind of stock market sends lots of tyro traders limping out of the market.

I cannot predict the future other than to say that things will, at sometime, settle down and go back up. Of course I just can't say when this will happen. So I suggest you follow Warren Buffet's advice and get greedy when others are fearful, and get fearful when others are greedy. However, decoding these market sentiments of fear and greed does get a little tricky sometimes.

I wonder if Obama will hold a press conference tomorrow to brag about the economy?

Honeymoon Downer

Niagara Falls Frozen Solid

This, of course, proves nothing ... just as Hurricane Katrina didn't or a drought in California doesn't.  Can we now acknowledge that local weather and global warming are basically unrelated?  And one cannot point to one to prove the other?

Afterward: A reader has sent me the following link which displays Warren Buffet's awakening about the actual lack of weather extremes currently ... and his growing global-warming skepticism ... see: Weather Channel Link.  SHAZAM!

Buffet Rule

A reader sent the following to me to share with others.  I realize that this wisdom has been around the Internet for a while but, in case you haven’t seen it, I think it is worth a few moments of your time.   This text approximates Warren Buffet's suggestions for our government’s reform. We are the richest country in the world yet we have more debt than any other country.  How does this compute exactly? 

The following numbers apply for just one term of service: 

Salary of retired US Presidents . . . . . . $180,000 for life

Salary of House/Senate members .  . . . $174,000 for life … this is stupid

Salary of Speaker of the House  . . . .. . $223,500 for life … this is really stupid

Salary of Majority/Minority Leaders .  . $193,400 for life … ditto last line

Average Salary of a teacher . . .. . . .. . . $40,065

Average Salary of a deployed Soldier . . $38,000

  

Warren Buffet, in a recent interview with CNBC, also offered one of the best quotes about the debt ceiling: "I could end the deficit in 5 minutes," he told CNBC. "You just pass a law that says that anytime there is a deficit of more than 3% of GDP, all sitting members of Congress are ineligible for re-election.”  He is also proposing the following reforms for our legislature:

Congressional Reform Act of 2013

1. No Tenure / No Pension -- A Congressman/woman collects a salary while in office and receives no pay when they're out of office.

2. Congress (past, present & future) participates in Social Security -- All funds in the Congressional retirement fund move to the Social Security system immediately. All future funds flow into the Social Security system, and Congress participates with the American people. It may not be used for any other purpose.

3. Congress can purchase their own retirement plan, just as all Americans do.

4. Congress will no longer vote themselves a pay raise. Congressional pay will rise by the lower of CPI or 3%.

5. Congress loses their current health care system and participates in the same health care system as the American people.  (I think this is now written in the Obamacare law.)

6. Congress must equally abide by all laws they impose on the American people.

7. All contracts with past and present Congressmen/women are void effective 12/1/13. The American people did not make this contract with Congressmen/women. Congress made all these contracts for themselves. Serving in Congress is an honor, not a career. The Founding Fathers envisioned citizen legislators, so ours should serve their term(s), then go home and back to work.

  

This, at least, is how to fix Congress! (It would be nice if Buffet also put forward some ideas for the Executive branch ... it too is far from perfect.)

Transference

Sigmund Freud identified an interesting twist in the spectrum of human emotions which he labeled “transference.”  This was the tendency of those being psychoanalyzed to view their psychoanalysts as all-knowing and all-seeing … and thus an object of veneration (frequently falling in love with them.)

Siggy baby had it right … but he didn’t nearly go far enough.  It seems that our society today engages in a wide variety of illogical transference-like emotions.  We view successful investors (such as Warren Buffet) as super-experts in taxing policy.  We view movie stars (such as Sean Penn) as super-experts on international relations.  We view pop singers (such as  Madonna) as super-experts on child-raising.  We view comedians (such as Jon Stewart) as super-experts in news commentary.  We view the spouses of legislators (such as Clair McCaskill) as super-experts on law-making. 

And we view consummate politicians (you pick your favorite) as super-experts in governance.  (I guess I have also to add that we view successful venture capitalists as super-experts in politics.)

The Payoff

Joe Scarborough keeps asking the same question on his Morning Joe show.  How will Obama’s raising the tax rate on the upper 2% of income earners generate any significant amount of revenue?  Were this to happen … Warren Buffet won’t be paying any more taxes.  Michael Moore won’t be paying any more taxes. Harvey Weinstein won’t be paying any more taxes.  Jon Corzine won’t be paying any more taxes.  Hedge fund managers won’t be paying any more taxes.  Anyone who earns money from dividends or capital gains … or those who can afford a good tax attorney won’t be paying any more taxes under Obama’s scheme. 

Do you find it strange that these people are also the ones who have been the big fund raisers for Obama?  So Obama, by being so fiercely adamant in his fiscal-cliff solution, can let his plutocrat friends off the hook while, at the same time, appear to be appeasing the Wall-Street Occupiers.  The people who will be paying more taxes will be those schlemiels who earn $250,000 to $500,000 per year in ordinary income and don’t have any significant offsets.  They are the ones who will be taking in the shorts.  And they are the ones, as the small business owners, who are said to be the major job creators in the country.

On the other hand, how might Obama go after the real millionaires and billionaires?  He could limit total deductions and other income-tax offsets to something like $35,000 or $50,000 or $75,000 … just like what Mitt Romney had proposed in the Presidential debates … and like what the Republicans are currently offering in the fiscal-cliff discussions.  Under this methodology Warren Buffet, Michael Moore, Harvey Weinstein, Jon Corzine, hedge fund managers, and their ilk would be the ones taking in the shorts … instead of the small-business job creators.  And, using this methodology, raising $800 billion in taxes (or much more depending on the limit put on deductions) over ten years would be a piece of cake. 

Therefore, one could reasonably conclude that The Barry’s insistence on just raising taxes-rates on the 2%-ers is really, in truth, a sly payoff to his benefactors by our consummate demagogue-in-chief.

Postscripts:  Please don't assume that, by my not mentioning spending and entitlement cuts, I do not favor them.  I do.  I think they are a must and the ratio of government spending cuts to revenue additions should be at least 6:1.  Also don't infer from the above that I would like to increase the tax rates on dividends and capital gains.  I don't ... however I would be in favor of eliminating the "carried interest" tax loophole that hedge fund managers enjoy.  It is a distasteful  taxing gimmick and it would be a tragedy if this carried-interest tax avoidance loophole was the reason taxes went up on actual capital gains and dividends. 

Fewer Happy Returns

Mitt Romney was asked again in the South Carolina debate Monday night if and when he will release his income tax returns.  He indicated that, sometime in April after he has filed his 2011 taxes, he might consider such a move.  The question then presents itself -- why not also disclose his prior years?

My guess is that Mitt had been using the "carried interest" section of the tax code in years past (the same methodology that Warren Buffet uses to pay a lower tax rate ... around 15% ... than his secretary), and he plans quietly to abandon this practice in 2011.  He also hopes that showing his 2011 returns without this gimmick will satisfy for his critics.  Guess again Mitt!  If you have used this loophole in the past, it surely will come out (Obama's people do have access to your tax records) ... and probably just before the election ... as an October surprise.

So my suggestion to you Mitt is ... reveal everything now and put it behind you.  Say that, even though you (and Warren Buffet) have used this tax loophole, you now believe it to be improper and you will work for its repeal.  And, to show your sincerity, you will not use it for your 2011 tax filings, and, in the future, you plan on paying the normal statutory rate, not the carried interest rate (and maybe even urge Warren Buffet to do the same).

It might hurt your image for a while, but I don't think it will cost you the election.

Afterthought: Mitt Romney was on this AM's news saying (late last night) that his effective tax rate was close to 15% since most of his income has been from capital gains.  This suggests to me that he has indeed been using the "carried interest" methodology in his tax filings.  Now, as a result, our generally financially-illiterate media is starting the drumbeat against our lower 15% capital-gains rate.  If the fact that private equity firms and hedge funds have been, in my opinion, abusing "carried interest" to lower their taxes ... causes our equally-naive Congress to abolish a lower capital gains rate, then this would be a great tragedy.  They then would be doing what is best described as "pissing in the soup."  Please Congress, just eliminate the carried-interest tax loophole.

Ananomous posted a comment that appears to freeze things on this blog and, although I don't concur with it, I will post it here:

Nicholas Kristof writing in NYT recently: "President Obama is pushing to close this loophole. The White House estimates that this would raise $20 billion over a decade. But Congressional Republicans walked out of budget talks rather than discuss raising revenues from measures such as this one."

My comment in reply is:

Kristof worded this salvo very cleverly (I think it's called weasel worded) ... implying that the Republicans are great defenders of "measures such as this one." I strongly suspect it was mainly other things that they had objected to.  But still, I hope the Republicans do realize the political folly in defending "carried interest" tax treatments.

DEN posted the following comment (that also freezes things):

I am not against a 15% tax on investment income (i.e.,dividends). But I do object to the Fund Managers' characterization of their compensation for work as "investment" income which avoids paying the payroll taxes for SS and Medicare.

What's NeXT?

One of the premier examples of the extraordinary entrepreneurial spirit in the United States, Steve Jobs of Apple Inc. has just sadly stepped down as its CEO yesterday.  An original founder of Apple Computer in 1976 (see Apple Computer.), who pioneered the Apple 1 computer kit, the Apple II, and the Macintosh with its innovative Graphical User Interface (GUI).  Jobs was ousted in 1984 and went on to found NeXT Computer (see NeXT Computer) with enormous financial backing ... including Warren Buffet. 

The 1986-released NeXT computer was not a commercial success, primarily, in my opinion, because it did not include a floppy disc drive.  Steve Jobs, in his typical visionary way, was years ahead of his time, substituting an early version of a CD-RAM for both a mass storage device and input/output (I/O) device.  This was one of the few mistakes Jobs ever made in his technical career ... primarily because it became difficult (and expensive) to move data and applications from the rest of cyberspace onto the NeXT computer and the data-access rates of this device were snail-slow.  Today, 25 years later, CD-RAMs are often the primary hardware I/O devices on personal computers ... and mass data storage is rapidly moving off of its miniature hard discs and onto static-RAM memory (such as flash drives).  Here, Steve was just a few years too soon.

But Jobs can easily be forgiven this one technical hiccup for, after returning to Apple in 1997, he went on to lead the creation of the IPod, the IMac, the IPhone, and the IPad (with its GUI on steroids) which have fostered enormous worldwide markets for American technology.  Even the Apple Store is a technology marketing innovation which can be partially attributed to Jobs.

Now, Steve Jobs is leaving and the future of Apple Inc. is in question.  One has to echo all the kudoes being lavished on Steve Jobs.  In fact, they may not be lauditory enough.  So, when The Barry gives his early September address to the nation with the shibolith "jobs, jobs, jobs," my mind will certainly wander to that health-plagued founder of Apple.