Shoot Yourself In The Foot And Yell "That'll Teach 'Em!"

This bit of news broke today:

APNewsBreak: BP giving financial help to stations

By HARRY R. WEBER (AP) – 4 hours ago

HOUSTON — Gas could become cheaper at some BP pumps after the oil company agreed to measures meant to help distributors and station owners offset a consumer boycott against BP fuel that was sparked by the out-of-control spill in the Gulf of Mexico.

Click here to read the complete article.

I've seen at least a few individuals crowing about this development. It seems they think they're somehow successfully "punishing" BP.

Ridiculous.

Furthering reducing the cash flow of BP means the chances increase that the bill for cleaning up the Gulf spill will fall on U.S. tax payers. After all, the Oil Pollution Act of 1990's liability cap is still the law of the land...

BP is not the only company involved here - what responsibility for this event should be laid at the feet of Transocean, the company that actually owned the sunken rig? What of others? (There's at least three others - can you even name them?)

Why is it a good thing to harm the livelihoods of people who are somehow related to BP, but who could not have had anything to do with the events leading up to the rig explosion? Do you think the guy who owns the gas station down the road that you refuse to buy a cup of coffee from anymore had anything to do with it?

Is trashing the retirement funds of tens of thousands of people in Britain, the U.S., and other locales a useful response to oil being in the water?

But hey, who cares? Right? We're sticking it to "the man" here!

If there were a BP station in my town or anywhere nearby, I'd shop there every day. It would help pay for getting this mess cleaned up faster.

Dropped Money As An Economic Indicator?

Five days in a row this week I've found dropped coins on the ground, four quarters and other coins totaling sixteen cents. All but one were not pennies.

This is unusual, in my experience. However, there was a time and a place that, with notable regularity, I could count on this happening: my university, Washington State University, at the beginning of each semester.

The start of each semester was the point in the term where students were receiving financial aid funds. I used to find dropped coins (and sometimes bills) everywhere. It seemed that when checking accounts were filled, people didn't think twice about leaving behind a bit of money they had dropped, nor did others take the time to pick them up. As each semester went on, the number and variety of coins rapidly dwindled until the next term began.

It makes me wonder if something has picked up in the local economy (or if government handouts are finding their way into the pockets of my neighbors).

Whatever the case may be, when I spot free money, I don't pass it up. The $1.16 I collected this week is now in my found money change jar, to be counted up at the end of the year and invested in some manner for passive income.

Did You Know That Arizona Does Not Share A Border With Mexico?

Ron White said it best: you can't fix stupid.

Globe Newswire: Lightbridge Invents New Transformational Nuclear Fuel Technology

It is expected that Lightbridge's all-metal fuel technology could be applied to currently operating or new light water reactors as well as small modular reactors which provide the same benefits as in larger commercial nuclear power plants. It is also highly synergistic with fast reactor fuel designs.

One of the key benefits of the Lightbridge-designed all-metal fuel technology is a potential 30% increase in power output per reactor compared to reactors using standard oxide nuclear fuel. This could translate into additional revenue for a 1,600-MWe light water reactor of up to $250 million or more per year, or nearly $16 billion over a 60-year expected lifetime of such reactors. This increased power output is expected to lower operating costs on a per kilowatt-hour basis and strengthen the economics of nuclear power versus other forms of power generation. In addition, currently operating light water reactors could also take advantage of this power uprate by switching to Lightbridge's all-metal fuel design.

The Lightbridge-designed all-metal fuel design would provide enhanced proliferation resistance and result in up to 23% less volume of used fuel per kilowatt-hour of electricity generated and is expected to have improved fuel operation compared to standard oxide fuel.

Click here to read the complete article.

I'm invested in the company's common stock. I keep it in my speculative/trading portfolio. These guys tend to stay quiet for long periods of time, and then suddenly they'll show up with a gem to share with the world, like this one.

The Congressional Effect Fund

I found a link to this today on Facebook: The Congressional Effect Fund.

Now this is funny. I don't think so because it's a joke - it's not - but because it illustrates in a tangible way the fact that government is very often a destructive force in the world, not a beneficial one.

The thesis of the fund is simple: legislative uncertainty, the state of affairs in which investors, business people, etc. are unable to gauge the future of a given investment due to the possibility that government will invent some new jackass law that will affect said investment somehow, is bad for stock market returns. Therefore, it stands to reason that when Congress is in recess and no new laws are being proposed or voted on, the rules of the game are known and financial moves can be made with a greater degree of certainty.

So then, when Congress is in session, the fund reduces its investors' exposure to equities, increasing it when Congress goes home.

Just to add a few more laughs to the idea (or maybe tears, given the present), there is this paragraph on the fund's about page:

While 43 years of data is significant, no investment strategy works all of the time. Although it has not happened often over the past 43 years, there could be years where the market responds much more positively on days when Congress is in session as compared to days when they are out of session. For example, in 1997, Congress enacted significant tax cuts, including a cut in capital gains taxes generally. In that year, the annualized average price increase on the days when Congress was in session was 59.5% (an average daily gain of 0.18% or 18 basis points) as compared to an annualized average price loss of -4.6% (an average daily loss of -0.02% or 2 basis points) when Congress was out of session. [emphasis mine]

The fund requires a $1,000 minimum buy in to open an account. I'm thinking about it...

AP: Borrowers exit troubled Obama mortgage program

You know that old advice about not throwing good money after bad?

WASHINGTON (AP) -- The Obama administration's flagship effort to help people in danger of losing their homes is falling flat.

More than a third of the 1.24 million borrowers who have enrolled in the $75 billion mortgage modification program have dropped out. That exceeds the number of people who have managed to have their loan payments reduced to help them keep their homes.

Click here to read the full article.

$75 billion spent and most of these folks are right back into foreclosure. The reason: their mortgages were not the only debts they were struggling with. They had auto loans, credit card debt, home equity loans, etc. This program is like plugging one hole in the hull of a boat that has four holes in it. You just don't sink as fast.

Another reason: banks actually started asking for proof of income. Now they do it...

I'm sure some people who attempted to use the program where honestly in trouble through no fault of their own. These results, however, suggest that the majority of them were dishonest and/or stupid. Throwing more money at them won't change that or make the situation any better.

Russia Getting Rid of Capital Gains Tax

I spotted this earlier today on Facebook:

The former communists running Russia apparently understand tax policy better than the crowd in charge of U.S. tax policy. Not only does Russia have a 13 percent flat tax, but the government has just announced it will eliminate the capital gains tax (which shouldn’t exist in a pure flat tax anyhow).

Contrarianism isn't just for investing, maybe? It's amazing to me how the former foes of the free West are now doing the things we've always claimed to be for, while we jump head first into the Hell that these folks are emerging from.

When Your Blog Becomes A Chore...

...you're bound to find excuses to avoid doing it.

I just need to have more fun with this thing is all.