Category: Economy

RANT! How dumb are the oil companies?

RANT! How dumb are the oil companies?

I am sure that you have heard of the current oil leak in the Gulf of Mexico.  If you haven’t, here is a link – please come back after you have caught up with current events.

I am just aghast at how stupid these companies are. Current reports are that they didn’t install an “acoustic switch” on the well. From NewsInferno:

The Deepwater Horizon oil rig that exploded last week was not outfitted with a safety device that might have prevented the massive oil spill now nearing the U.S. Gulf Coast. The device, known as an acoustic switch, is a last-resort protection against underwater spills, and is required by regulators in Norway and Brazil. Unfortunately, the U.S. has no such regulation for oil wells operating off of its shores.

According to a report in The Wall Street Journal, an acoustic switch is a remote control device that a crew can use in an attempt to trigger an underwater valve that shuts down a well that’s damaged. The switch is meant as a last resort, as the primary shut-off systems almost always work on wells when they are out of control. It can be triggered from a lifeboat if an oil platform has to be evacuated.

According to the Journal, U.S regulators did consider requiring the acoustic switch on offshore wells, but drilling companies resisted because of its cost, and questions about its effectiveness. To be fair, the switches have never been tested in real-world situations, only simulations. U.S. regulators also maintain they are prone to causing unnecessary shutdowns.

Are these guys just plain stupid.  Didn’t they see Jurasic Park where the pessimistic mathematician, Ian Malcolm, talks about if something can go wrong then it will go wrong?

BP AND ITS KIN SHOULD HAVE BACKUP SYSTEMS FOR THE BACKUP SYSTEMS THAT ARE BACKING UP THE BACKUP SYSTEMS.  IF THEY DON’T HAVE 6 FOOLPROOF WAYS OF TURNING OFF A BROKEN WELL THEN THEY SHOULDN’T DRILL!

Spirit Airlines and carry on fees

Spirit Airlines and carry on fees

I do not fly on Spirit Airlines. They don’t have regular service to the city that I live in so I have not had an opportunity to board one of their planes. I say this simply because my comments below need to be put in context.

I agree with their policy of charging for carry-on luggage.

I am sick and tired of getting to the airplane on time, quickly and efficiently getting to my seat with my one computer bag, settling in with a good magazine and my iPhone, and then watching all of the other idiots try to stuff all of their earthly possessions into the overhead compartment.

When I flew last week, at least 4 people didn’t have room overhead and had to gate check their bags. This simply slowed down the boarding and we left the gate late. In addition, the person sitting beside me had to gate check her bag because it simply didn’t fit in the overhead bin. I am not sure why she thought it would fit, it was so large and heavy that she couldn’t lift it over her head (and i swear that my overweight 6’3″ frame would have fit into the bag she was hauling).

I think the airlines are screwed up.  Make checking bags more efficient and friendly but shrink the size of the bag that is allowed on the plane to be briefcase size. Get their passengers onto the plane without the process feeling like I am being crammed into an old VW van. Then when we land, it won’t take me 20 minutes to get off the plane while the fat woman in front of me tries to pull her massive flowered bag out of the compartment and wheel it down the aisle.

Flying was never fun but now it is becoming painful.

Complaints on tax day

Complaints on tax day

On this tax day, I think this opinion from the Wall Street Journal is excellent.  It appears that Mr. Donohue is a 2 or 3 years older than I am but, other than that, his life and mine are very similar.  Not surprisingly, so are our opinions.

I would add that there is another huge tax that I am paying that many people that are poor do not pay.  My oldest son is in college.  Because I work very hard and make a very nice income, I pay list price for college education. My son is not eligible for financial aid simply because his old man works too hard. Luckily, he understands the value of hard work as well and has earned some merit based grants based on his academic credentials. He also works at part-time jobs to help pay the way. Anything in excess of that, Dad pays for.

I wouldn’t complain about the costs of sending my son to college except that the system is not totally fair. I am very familiar with another family with kids that are slightly older than mine. In their case, the father has had little success in building a career and essentially earns a buck or two over minimum wage. The mother doesn’t like to work, and even though she is a trained nurse she only works 15 hours a week – not because she can’t find work but rather she doesn’t want to work that many hours (she says standing too long makes her feet sore). Together, they sired 6 kids (obviously they knew how to work at something). As those kids grew up, food stamps were regularly available to them and they ate a free school lunch. The kids are smart and when they finish high school they have all gone to college – the most any have had to pay is ten grand for 4 years at a very good private college. Most of the others paid nothing except for incidentals. One studied overseas for a year for free.

All of these kids received government secured student loans. These are capped at a certain amount per year.

I am happy that these 6 kids are devoted to their future enough that they have gone to college. They appear to be starting their lives in good jobs and I am happy for them and wish them well. However, as I write checks for college for my son, I am jealous of their lazy parents – they don’t work hard and their kids are not penalized for that. I work hard and am penalized.

It just doesn’t seem fair and I am fed up.

By MIKE DONAHUE

I’m in the 32% federal and 10% state income tax brackets. I pay a 1.2% property tax on very expensive California real estate. I am subject to the Alternative Minimum Tax. I am self-employed and subject to a 15% payroll tax on the first $100,000 in income and an 8.75% state sales tax. If I have a gain from investing, I pay a minimum of 15% federal and 10% state tax but can only write off $3,000 per year if I lose.

And now the government wants me to pay more?

As a child I mowed lawns, shoveled snow, had a paper route, sold sandwiches at school, and cut up dead trees and split them for firewood to sell during spring break. I have worked every summer since I turned 14. I took out student loans for college and worked 35 hours a week, at night, to pay for the rest.

Since I graduated in 1983, I have been in straight commission sales and have had many 60- to 70-hour work weeks. No secure salary, no big promotions, no pension—just me profiting though helping others while being subject to the swings of the economic cycle. The first 20 years were tough, but it’s finally starting to pay off.

I drive a nicer car (bought used), live in a better neighborhood, have more retirement savings than many. But I am certainly not rich, and every month I find my ever increasing bills (and taxes) tend to match my income. I have more than most only because I’ve worked harder than most and because I am a saver. It was not easy.

Why then does the government feel so entitled to take my money and give it to others? Why should I have to carry so many people on my back? Call me cruel. I don’t care. I give to whom I choose—but since so much is confiscated (and wasted in the process) I have little left I wish to give.

During the 1990 recession I could have qualified for state and federal assistance, but my wife and I managed to get by as she worked nights while we juggled our infant daughter between us. It was hard. However, it never occurred to us to take from others to subsidize our shortage. It’s not our way.

Life is hard. You learn when you fail and you make changes when things hurt. Why then is the liberal agenda trying to make sure nobody feels any pain? And why does the government feel so entitled to steal from many in order to give it to others. What has happened to personal responsibility and accountability?

My patience and pocketbook are reaching the breaking point. I am not for equal outcomes regardless of effort. I’m tired of being the mule. Maybe I will quit and live on the dole for awhile. I probably even have enough health issues to join the one in seven adults categorized as disabled. I’ve been poor and I’m not afraid to go back.

Remember it was social mobility that made America great—the ability to earn and get ahead. If Congress continues to buy votes at the expense of social mobility we will no longer be a great nation. The truly rich will stay that way but many “Henrys” (high earners, not rich yet) like me will quit. We may be only a small percentage of the population but we pay a large portion of the taxes and employ many. If you take the incentives away you will lose Henrys.

Mr. Donahue is a financial adviser in La Jolla, California.

It is no longer someone else’s mess

It is no longer someone else’s mess

Every President, except for George Washington, inherited something from the previous administration. Sometimes this is good and sometimes it is bad.

President Barack Hussein Obama has been talking for quite some time about the “mess” that he inherited from George Walker Bush. He has made references to mops and other allegories to describe the challenges that he has faced. While that is all well and good for the first few days of the Presidency, at a certain point BHO needs to own the problem.

That day is today.

There is no defined time for the honeymoon period of a new candidate. Most people felt that September 11, 2001 was close enough to the inauguration of George Walker Bush (just under 9 months) that the attacks on that dreaded day were at least partially the fault of William Jefferson Clinton. The honeymoon is certainly longer than the first 100 days that are all the talk at the beginning of a term. Everyone seems to agree that it doesn’t extend beyond a year from the date the person is elected.

For the past 12 months, BHO has been the President or the President-Elect. Every day he has received security briefings. Every day he has had access to and influence over thought leaders on a wide range of issues. Every day, he could pick up the phone and call any world leader, banking leader, Senator, Governor, or Representative.

When a person inherits a farm or house or china from a parent, from that day on the item or property belongs to the heir. This is the same now for the issues within the United States. The mess no longer belongs to GWB – it is the sole ownership now of BHO and he better get to work fixing it and stop talking about mops!

Healthcare for illegals

Healthcare for illegals

First, let me be clear, I think that Rep. Wilson of South Carolina should be censured for his outburst while President Barack Hussein Obama was speaking in a joint session of Congress. He reminds of irresponsible brats such as Kanye West. Public outbursts while the President is speaking are simply unacceptable in any format and definitely not allowed in a joint session of Congress.

I do think that it is interesting that the rude outburst occurred due to a statement from BHO regarding healthcare for illegal aliens. There is a reasonable argument that BHO, while perhaps not lying, was not telling the complete truth. Check out this interesting video below and then read the rest of my comments.

 

Now I see that the Democrats in the Senate would like to toughen up the loopholes to prevent illegal aliens from getting taxpayer supplied insurance. I don’t get it, BHO says that this can’t happen but now a few days later there is an amendment that prevents this thing that can’t happen.  Makes me think that BHO was bending the truth a bit and probably knew it.

Of course the solution that the Senate is currently thinking about is to use Social Security numbers.  Seems reasonable.  SS numbers have become the defacto national identity card that we need. I have ranted on this before, if we would just have national identity cards then we would control much of the illegal problem that we have.

Below are a few clips from a recent article in the Wall Street Journal:

A key Democratic senator said Friday that lawmakers planned to toughen provisions in a health bill to prevent illegal immigrants from enjoying benefits, in a Democratic response to concerns by some Republicans.

Members of the Senate Finance Committee met Friday, and Sen. Kent Conrad (D., N.D.) said they wanted to use Social Security numbers to ensure that illegal immigrants weren’t eligible for subsidies envisioned as part of a plan to expand health coverage.

President Obama’s health-reform proposal has sparked heated debate over whether the plan benefits illegal immigrants, as demonstrated by Rep. Joe Wilson’s “You lie” outburst. WSJ’s Elizabeth Williamson breaks down the details of the proposed new government-run insurance plan.

Still up in the air is whether illegal immigrants would be banned from participating in federally regulated insurance “exchanges” under Democrats’ health bills, even if the immigrants were willing to use their own money to buy policies. On Friday, a coalition of three dozen faith-based groups wrote to Congress to express anger at the proposed ban.

You want change – you can have change

You want change – you can have change

I received this as a “joke” email today from a friend that is quite conservative in his political beliefs.  I thought it was a unique commentary on the state of our nation.  I find it refreshing that this email doesn’t blame President Obama for the solid state of the economy but instead is complaining about him adding to the problem.

 

Dear Employee: 

As the CEO of this organization, I have resigned myself to the fact that Barrack Obama is our President and that our taxes and government fees will increase in a BIG way. To compensate for these increases, our prices  would have to increase by about 10%. But since we cannot increase our prices right now due to the dismal state of the economy caused by banks that can’t run an effective business, we will have to lay off sixty of our employees instead.

This has really been bothering me since I believe we are family here and I didn’t know how to choose who would have to go.

So, this is what I did. I walked through our parking lots and found sixty ‘Obama’ bumper stickers on our employees’ cars and have decided these folks will be the ones to let go. I can’t think of a more fair way to approach this problem. They voted for change…… I gave it to them.

I will see the rest of you at the annual company picnic.  

            
                                                          THE BOSS