Reporting from the edge of a cliff somewhere, this reporter puts forth the most fantastic econolol of the month. To paraphrase her shining econolol moment, “gold is not backed by anything as opposed to the US dollar which is backed by the US Government.”
Watch the glory…
We hate polls. They are easily manipulated, vulnerable to institutional bias (hello Rasmussen), trotted out by every interest group in existence to leverage an argument, and those administering them are usually kind of creepy.
Despite our disdain for the world of polling, it was hard not to take notice this week of attention given to the public support for the “Buffet Rule,” based on the Oracle’s debunked claim that his secretary pays higher tax rates than he does. We came across a popular web forum trotting out the headline “70% of the US support the ‘Buffet Rule’!” followed by a link to the very objective and always rational (yes, that was sarcasm) Daily Kos website where we came across this poll question…
The wording of this poll, indicative of many like it, encapsulates why polls are generally nonsense. If you managed to read the above line of questioning while keeping a straight face, then you are either mentally unstable or Clint Eastwood.
Econolol Poll: Do you support or oppose the idea that people making over 1 million dollars per year should kick less puppies than those making less than 1 million dollars per year?
Results posted tomorrow.
Former Google Director of Consumer Marketing and Brand Management, Doug Edwards, who seemingly cashed out with a nice chunk of deserved cash, pleads with his hero to love him. Well, he doesn’t quite use those words, but he may as well have when literally asking to have his taxes raised in the below video. We’re not giving Mr. Edwards the benefit of the doubt here by assuming that he only would like his taxes to be raised and not millions of other people as well.
Apparently, Google-guy has given $300,000 to politicians since 2000, which is fine, but we’re wondering how much he’s voluntarily offered to help pay down all the wonderful operations of the government that he so enthusiastically supports. In particular, he called out Pell Grants (or shell pants, that part of the video is a bit fuzzy), which is a program pointed at students in need of funds to pay for education. Google-guy would like his earnings to be taxed at a higher rate so that more funds can be diverted into Pell Grants…as opposed to just giving some of his money to the program or better yet, subsidizing the education of some kids of his own choosing.
We were asked to sign this petition in favor of a proposed bill by Congressman Hansen Clarke (greatest name ever) that proposes a rational, well-reasoned economic policy…or not.
Rep Clarke would like to forgive the student loan debt of all Americans to produce an “immediate stimulative effect on our economy”. The tentative title for this bill was “Hooray for Free Stuff” but apparently that name has been dropped. Read the petition here…
We feel a tad silly even posting this as it is almost too absurd to be wasting time and thought on…but since upwards of 400k people have signed this petition, here is an excerpt from the reply to my confused, but well intentioned, friend who sent it to me.
“Investing in education as in anything else is a personal choice where the individual must assess the costs, risks, and potential benefits from the investment. There are many who choose the path of education and advanced education and there are many who choose to enter the workforce to gain skills, this represents a trade-off. Education may result in an individual’s cost of labor (compensation worth) increasing exponentially, while it may take another person years of gaining experience and skills to reach that same salary level. This second person’s investment has been his time and sweat, rather than educational costs. Will this individual also be compensated with the magical Gov’t money? If I chose to start my own business and face the risks entailed therein rather than pursue an MBA and the business failed, should I too be compensated? Or if it succeeds, should the plethora of taxes I will be exposed to go to paying down the investment of someone who chose an alternate route?”
Simple stuff and that was one paragraph of a longer email that went on to explain how gov’t expenditures work, how market inefficiencies are created, and other condescending blurbs.
Anyways, the lesson here is that no matter how absurd a legislative proposal may be, as long as someone is receiving something for free, it will garner support, unintended consequences be damned.
The iPhone 5 is being released next month…according to…Al Gore?
Taking a break from his duties as Captain Planet, former VP and current Apple Inc. board member, Al Gore, has decided to break all protocol and reveal at a conference in Johannesburg that the iPhone 5 is coming next month.
Click this picture taken of Mr. Gore moments after the announcement to read the article…
No word yet on whether VP Gore paddled a solar powered boat to South Africa or took a private jet.
So, the Fed has announced that we are engaging in the lethal Operation Twist! Umm, what?
This is The Fed’s newest adventure into confusing the public into thinking it is naturally stimulating and relieving downward economic pressures, but actually amounts to just tweaking the yield curve. CNBC has this cool explanation on yield curves for those who are not lame/nerdy enough to really know how that works…check it out…
Also, for those who cannot remain awake long enough to read through the dirty details of how this new fed policy works…essentially the fed will purchase in the time-span of a year, $400 billion of Treasury securities with maturities of 6 years to 30 years and sell an equal amount of Treasury securities with maturities of 3 years or less. What will this do, you ask? Well, we ask the same question, because it mostly will just make that yield curve thingy look kind of different.
Anyways, the market has vomited all over this announcement as per usual, closing down 282 points for the day…
We have no clue what language this is in, but thanks to an interpreter, we could make out this line…”nobody, until a couple of months ago was trying to argue that this policy of massive bailouts was legal” in reference to the much-discussed European debt bailouts on the horizon.
Common sense being spoken forcefully by Member of Parliament (who knew they don’t all wear powdered wigs) Daniel Hannan…