Month: November 2011

NBA Fouls Fans

11/14/2011

NBA Players are proposing a 53%-47% split of revenues while owners want a 50%-50% split. Each 1% is worth $40 million and since the contract is for 6 years, that $720 million. Not chump change. But, it also means a…

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Tax the Rich

11/10/2011

The inheritance tax hurts the poor by encouraging the rich to overspend because they can’t leave it all to Junior. This tax-avoidance induced spending on jets, boats and lavish parties reduces the money available for new plant and equipment. Look,…

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Dodging Debt

11/09/2011

Frank McCourt, embattled owner of the LA Dodgers is selling the club. By craftily splitting the sale of the team and the sale of the team’s media rights, he expects to net $1 billion. But, he has bills! The club…

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Crushed by the Heat

11/08/2011

Picking grapes at night results in better wine, lower energy costs and happier workers. High daytime temperatures (90 and up) change the sugar composition of grapes leading to possible uncontrolled fermentation due to wild yeast. To bring down the temperature,…

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Poor Granny

11/07/2011

To put the absolutely dismal interest rates we are getting on savings into perspective think of it this way. The highest yielding 1-yr CD pays 1%. At that rate, it takes 70 years to double your money. By contrast at…

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Stress Less, Pay More!

11/04/2011

The Friday File: A recent article in the Journal of Marketing Research shows that relaxed shoppers pay up to 15% more for the same merchandise as less-relaxed ones. So if you hear soothing music, are offered a free cup of…

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Politics of the VAT

11/03/2011

Democrats fear a Value Added Tax because it is very regressive. (That means the poor pay more taxes as a proportion of their income than the rich). Republicans fear a VAT because it can easily raise lots of money —…

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Luck for the Lady President

11/02/2011

This past Sunday Argentines reelected president Cristina Kirchner. Like all good politicians lady luck has been with her. Argentina pulled out of its ’01 financial meltdown by; not paying its bills, devaluing its currency and defaulting on its debts. Miraculously,…

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Italy is Next!

11/01/2011

Greek PM Papandreou’s call for a referendum to approve additional financing has heightened fears that Greece will default. In response 10-yr Italian debt yields hit 6.33% a euro-era high and as much as 4.55% above super safe German bonds. Once…

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