Today's Washington Post included an article about India open for doing up to $80 billion in nuclear energy business. General Electric (GE) helped put up an early reactor in the 1960s and sees another $30 billion in potential alone. Another situations where the US Congress is involved though makes this rather curious. India has a demand? Who will be allowed to supply the demand is the question.
The Indians already know the answer to solving their problems. To directly quote the article, "'If a deal with Congress doesn't happen, we will have business with other countries. So simple,' said SK Malhotra, a spokesman for India's Department of Atomic Energy." Mr. Malhotra is wise and knows the options for his nation. India is going to demand electricity and energy for their population and nuclear energy would be a good solution. With advancements allowing better treatment of waste (yet something else that can be recycled!) and less impact on clear air, the Indians are thinking a nuclear solution could be good for a portion of their energy needs.
Which brings us to supply & demand -- India will have nuclear power, that's a given they have asserted will be true. With no agreement from the US Congress that would forbid US companies to get into a $30 billion (or maybe $80 billion?) market, the French and Russians will get the contracts. This is simple supply & demand. Worldwide demand will create supply from some part of the globe. If the USA doesn't supply, the Indians go shopping.
US oil demand of over 20 million barrels per day is big and conservation would be wise and efforts should be made to reduce that number when possible. But even starting today, oil consumption is going to continue. As the USA demands oil, the supply will be made available. If the USA chooses not to produce our own, we'll buy it. If we choose to produce it ourselves, the advantages are: 1) we control the import & export accordingly. 2) US workers earn a living in the production process. These workers pay taxes and help drive the economy. 3) Corporate taxes, leases and other gains to the US treasury exist. 4) We control the environmental regulations and restrictions -- strict enough to be clean and relaxed enough to allow production. 5) Top oil producing nations (Saudi Arabia, Russia, Iran, Venezuela) that might not always have a similar worldview will not benefit financially from our spending -- WE will benefit from buying from ourselves.
The demand will continue to exist in some way. The USA can be a leader to responsibly extract oil for ourselves -- or leave it to others who might not be good stewards of the environment or care about our workers or our national security. What's it going to be? Drilling in America is one option. If we say "no" to that, then some other country will drill and they will sell to us, and we will owe them. I recommend we bring more of our own energy policy into our own control.
Friday, September 26, 2008
Thursday, September 25, 2008
Warren vs. Sam
Not a court case of any proportion, but a play out of the approaches being used to address the financial problems of the major banks in the USA. Mr. Warren Buffett got into the "bailout" game as he found $5 billion and put it into Goldman Sachs (GS). Goldman has done well to escape much of the credit crisis and has proven to be one of the winners. Their shares have been beat down with the rest of the market to no surprise, but they've got relative strength among their peers.
Charley Blaine of MSN Money wrote a piece that summarizes what Mr. Buffett is getting for his money. Sure, Mr. Buffett is getting great terms -- 10% preferred stock dividend is very nice -- not to mention an in-the-money (ITM) option on buying GS common shares at $115. This could be nice to dip into when the GS shares go back toward the $200/share level. Ringing the register at $85/share would be nice.
So, this is what private (wise) investors do -- they bring the cash to the table with the strongest banking entity and get great terms. And GS agreed...? So it must have been a good deal for them as well in several fashions -- or at least a risk management tool that they believed would be good for the long-term. It's not totally impossible to speculate that GS management also has ITM options that could benefit from the goodwill Mr. Buffett brings to the table. Also, with this confidence, how many institutions, investors, and hedge funds will feel comfort in buying some GS common shares? Certainly so. That won't hurt the GS common stock price.
Now Sam... our Uncle Sam needs to make similar decisions. Providing some funds to shore up the balance sheets of banks might be wise and help restore some confidence. Preserving jobs for middle America also has a lot of value, and in election years, politicans like to help. President Bush can't win or lose anything so he has to look out for the country. Senators vying for the Presidency need to consider big questions as well: What's in it for America?
Only time will tell.
Charley Blaine of MSN Money wrote a piece that summarizes what Mr. Buffett is getting for his money. Sure, Mr. Buffett is getting great terms -- 10% preferred stock dividend is very nice -- not to mention an in-the-money (ITM) option on buying GS common shares at $115. This could be nice to dip into when the GS shares go back toward the $200/share level. Ringing the register at $85/share would be nice.
So, this is what private (wise) investors do -- they bring the cash to the table with the strongest banking entity and get great terms. And GS agreed...? So it must have been a good deal for them as well in several fashions -- or at least a risk management tool that they believed would be good for the long-term. It's not totally impossible to speculate that GS management also has ITM options that could benefit from the goodwill Mr. Buffett brings to the table. Also, with this confidence, how many institutions, investors, and hedge funds will feel comfort in buying some GS common shares? Certainly so. That won't hurt the GS common stock price.
Now Sam... our Uncle Sam needs to make similar decisions. Providing some funds to shore up the balance sheets of banks might be wise and help restore some confidence. Preserving jobs for middle America also has a lot of value, and in election years, politicans like to help. President Bush can't win or lose anything so he has to look out for the country. Senators vying for the Presidency need to consider big questions as well: What's in it for America?
Only time will tell.
Saturday, September 20, 2008
Cost of a good shave
This past week gave me the opportunity to head north into Canada to meet the boss, see some colleagues in our Toronto office and visit some clients of the company I work for. The one night trip was meant to be fast -- about 36 hours within Canada to get some work done.
Given the short flight, the small Embraer jets have little overhead compartment room on board -- so a carry-on bag of average size is dropped off plane-side when boarding and when you get off. The "carry on" status only means it goes through security scans as you enter the secured airport area just like any carry-on, but ultimately the bag goes into the hold of the aircraft with the other luggage.
Typically I'd be checking an overnight bag for the reason that I have a razor in my kit and shave in the morning. A bag must be checked in this case -- they won't allow someone through security with a men's safety razor. And naturally with a checked bag comes the extra $15 each way (on top of the $566 ticket) for the one-hour flight.
So, to summarize, my razor went to Canada and came back for $30 extra. I believe next time I'll be abandoning the razor at my house -- then carrying on the bag & avoiding the fees. If I want a shave in Canada, I'll purchase a razor north of the border.
Given the short flight, the small Embraer jets have little overhead compartment room on board -- so a carry-on bag of average size is dropped off plane-side when boarding and when you get off. The "carry on" status only means it goes through security scans as you enter the secured airport area just like any carry-on, but ultimately the bag goes into the hold of the aircraft with the other luggage.
Typically I'd be checking an overnight bag for the reason that I have a razor in my kit and shave in the morning. A bag must be checked in this case -- they won't allow someone through security with a men's safety razor. And naturally with a checked bag comes the extra $15 each way (on top of the $566 ticket) for the one-hour flight.
So, to summarize, my razor went to Canada and came back for $30 extra. I believe next time I'll be abandoning the razor at my house -- then carrying on the bag & avoiding the fees. If I want a shave in Canada, I'll purchase a razor north of the border.
Monday, September 15, 2008
Expiration Week Starts... with implosion
The September expiration week begins and the financials try to out-do their July disaster bottoms as the Dow Jones falls over 500 points. What a day. I tried to paper trade (ie "pretend") a new strategy for swing trading equities and I stopped out all four positions at 2% loss. Well, today was unusual to say the least.
On the plus side, my S&P call spread is quite high and should be safe. My railroad and retail positions are still in the black as well and only four more days to wrap it up. Phew!
With volatility in the market place, it seems we should only have some in the weather. As hurricane Ike moves through North America, I must admit I was quite surprised as to the number of people that decided a 600 mile wide hurricane was worth "riding out". At the end of last week as radio news reporters were talking with people on the phone, it seemed hard for me to fathom what might be more important than moving yourself and your family to safety. And of course, now, the photos really tell of what kind of mess these hurricanes make and the layers of people that go back to try to positively impact the aftermath.
No doubt the financial markets and weather storms will return -- but perhaps the worst is over.
On the plus side, my S&P call spread is quite high and should be safe. My railroad and retail positions are still in the black as well and only four more days to wrap it up. Phew!
With volatility in the market place, it seems we should only have some in the weather. As hurricane Ike moves through North America, I must admit I was quite surprised as to the number of people that decided a 600 mile wide hurricane was worth "riding out". At the end of last week as radio news reporters were talking with people on the phone, it seemed hard for me to fathom what might be more important than moving yourself and your family to safety. And of course, now, the photos really tell of what kind of mess these hurricanes make and the layers of people that go back to try to positively impact the aftermath.
No doubt the financial markets and weather storms will return -- but perhaps the worst is over.
Friday, September 12, 2008
Wisdom on Parade
The Parade magazine (is it really a magazine?) that comes with the Sunday copy of the newspaper is colorful and easy to read but short on deep journalism or content. So, why not blog about it?
This past week, Mr. Warren Buffett is featured in a column on "10 Ways to Get Rich". And sure enough, they have simplified some words of wisdom from Mr. Buffett. Although simplified, getting back to basics can be of benefit and Mr. Buffett knows what works. The guy has been averaging over 20% returns in his investment portfolio in the early 1960s. And, he understand compound interest and how it works -- which has allowed him to amass over $60 billion in personal wealth.
So point #6 was no surprised -- 'Limit what you borrow'. If I might quote the Parade magazine, "Living on credit cards and loans won't make you rich." Yes, if we want to be a rich person, we need to live like one. If we want to be healthy, we need to live like one. Emulating success will not likely make most of us a $60 billion portfolio, but we can take tangible steps daily toward achieving things in life.
Finally comes the moment of truth -- the "A-ha!" moment when I look at people asking questions about creative financing tactics with their credit cards on public bulletin board/answers type services (I'm thinking Yahoo! Answers). Young and broke, they want to get the "best credit card" while at the same time, there are a dozen posts daily about people seeking relief from the problems they created with their credit cards. One even was questioning the laws of the UK so that perhaps the writer could leave the USA and not be pursued for their debts.
I'd certainly rather stress out about doubling my equity position on my Coke shares vs dodging the laws for my fiscal irresponsibility. I'm sure Mr. Buffett works on the first, whereas those who are broke consider the second.
This past week, Mr. Warren Buffett is featured in a column on "10 Ways to Get Rich". And sure enough, they have simplified some words of wisdom from Mr. Buffett. Although simplified, getting back to basics can be of benefit and Mr. Buffett knows what works. The guy has been averaging over 20% returns in his investment portfolio in the early 1960s. And, he understand compound interest and how it works -- which has allowed him to amass over $60 billion in personal wealth.
So point #6 was no surprised -- 'Limit what you borrow'. If I might quote the Parade magazine, "Living on credit cards and loans won't make you rich." Yes, if we want to be a rich person, we need to live like one. If we want to be healthy, we need to live like one. Emulating success will not likely make most of us a $60 billion portfolio, but we can take tangible steps daily toward achieving things in life.
Finally comes the moment of truth -- the "A-ha!" moment when I look at people asking questions about creative financing tactics with their credit cards on public bulletin board/answers type services (I'm thinking Yahoo! Answers). Young and broke, they want to get the "best credit card" while at the same time, there are a dozen posts daily about people seeking relief from the problems they created with their credit cards. One even was questioning the laws of the UK so that perhaps the writer could leave the USA and not be pursued for their debts.
I'd certainly rather stress out about doubling my equity position on my Coke shares vs dodging the laws for my fiscal irresponsibility. I'm sure Mr. Buffett works on the first, whereas those who are broke consider the second.
Wednesday, September 10, 2008
Hockey Night (Almost)
Friday is hockey night in Virginia, which doesn't deserve any type of national hype, but it's definitely a good time for exercise and fun on inline skates. I was able to get a pair of inline skates in college so pick-up games on the unused tennis courts was a good time for social fun and good exercise. After college, this evolved into playing up at Potomac Inline group in Chantilly, Virginia. They recently built a very nice new rink with a lot of hard work from the players and other sources.
With gas prices came some changes and I found another good group to play with in Woodbridge, VA through the Prince William Hockey Club. The adult league is quite casual Some other mutual friends are playing there so Friday nights the fun begins in the co-ed league -- definitely a good time with a variety of skill levels.
Hockey is great exercise, burns a lot of calories, and allows the players to vent frustration on a small rubber (or plastic) puck. I don't have any skills, but we tend to fare better than the Bulgarian ladies team that lost 82-0 to the Slovak ladies squad for Olympics qualifying. I'm guessing that there was a goals for advantage to the scoring roster than resulted in the score being driven this high into the double digit range. Fortunately in Woodbridge, we're trying to keep it more fun.
With gas prices came some changes and I found another good group to play with in Woodbridge, VA through the Prince William Hockey Club. The adult league is quite casual Some other mutual friends are playing there so Friday nights the fun begins in the co-ed league -- definitely a good time with a variety of skill levels.
Hockey is great exercise, burns a lot of calories, and allows the players to vent frustration on a small rubber (or plastic) puck. I don't have any skills, but we tend to fare better than the Bulgarian ladies team that lost 82-0 to the Slovak ladies squad for Olympics qualifying. I'm guessing that there was a goals for advantage to the scoring roster than resulted in the score being driven this high into the double digit range. Fortunately in Woodbridge, we're trying to keep it more fun.
Monday, September 8, 2008
eBay & Craigslist
The title says it all for those who are familiar with these two web sites that allow for goods (& more) to be exchanged on their websites. With a four-year old birthday coming up one week from yesterday, I'm seeking to do some basic shopping. This time, I was motivated to find some used golf clubs, as my son really enjoys the idea of the game. I say "idea" because his experience is mostly limited to miniature golf and the ability to smack plastic golf balls with plastic golf clubs.
Now, our Little Tykes Golf Set gets a lot of use! I've debated the past few days and then decided that maybe we'd try something a little more "real" to gauge his interest. We saw a junior set of clubs at a local sporting goods store and the putter just seemed to fit him a lot better than most of what we see; naturally being made for preschool kids this is no surprise!
Still, $100 for a set of sticks for a preschool kid is rough, especially when 'Dad' is a poor golfer at best and rarely plays. The game is a lot of fun, but the money and time commitments are more than I can give right now.
Now, fortunately back to the titled establishments. In short, my eBay bid to $17 did not work (shipping was another $18) and I saw the bid go to $31 bringing the total to $49 for the lucky bidder. I was able to find a craigslist solution that, although not super close to the house, it's something I can investigate and hopefully finalize on later this week, and spend the same amount ($35) as I was planning to spend on ebay.
Now, if a four-year old can keep his eye on the ball, we'll have to see what happens!
Now, our Little Tykes Golf Set gets a lot of use! I've debated the past few days and then decided that maybe we'd try something a little more "real" to gauge his interest. We saw a junior set of clubs at a local sporting goods store and the putter just seemed to fit him a lot better than most of what we see; naturally being made for preschool kids this is no surprise!
Still, $100 for a set of sticks for a preschool kid is rough, especially when 'Dad' is a poor golfer at best and rarely plays. The game is a lot of fun, but the money and time commitments are more than I can give right now.
Now, fortunately back to the titled establishments. In short, my eBay bid to $17 did not work (shipping was another $18) and I saw the bid go to $31 bringing the total to $49 for the lucky bidder. I was able to find a craigslist solution that, although not super close to the house, it's something I can investigate and hopefully finalize on later this week, and spend the same amount ($35) as I was planning to spend on ebay.
Now, if a four-year old can keep his eye on the ball, we'll have to see what happens!
Sunday, September 7, 2008
Bank Green & Win Green!
The title above also found on the small color flyer inserted into my monthly statement from the local credit union where I do my local banking. Now they're offering a chance to "Win $5,000 with FREE Online Bill Pay".
I remember a few years ago when several of the online bill pay services were charging money for the service, and now they're going to give me a chance to win $5000. Ah, the evolution of banking processes -- it seems someone woke up and realized that processing thousands of paper checks (or as some would prefer to read, 'cheques') can be a big laborious process.
The back also asks "Did you know that if every U.S. household paid their bills online, we could cut solid waste by 1.45 billion tons per year?" Wow, that sure is a lot of paper pushing (& trips to the recycling bin... and electricity running shredders... and...). As Michael Scott says in Season 3 of The Office in the Business School episode, "But real business is done on paper, okay? Write that down." Students around the university lecture hall quickly type his comments into their laptop computers.
So, this paper ad goes to the family recycling bin while I continue to pay my bills online. I'm guessing I've already joined the revolution. Now I have to wonder if the $5000 is a check or if they will direct deposit it to the winner...
I remember a few years ago when several of the online bill pay services were charging money for the service, and now they're going to give me a chance to win $5000. Ah, the evolution of banking processes -- it seems someone woke up and realized that processing thousands of paper checks (or as some would prefer to read, 'cheques') can be a big laborious process.
The back also asks "Did you know that if every U.S. household paid their bills online, we could cut solid waste by 1.45 billion tons per year?" Wow, that sure is a lot of paper pushing (& trips to the recycling bin... and electricity running shredders... and...). As Michael Scott says in Season 3 of The Office in the Business School episode, "But real business is done on paper, okay? Write that down." Students around the university lecture hall quickly type his comments into their laptop computers.
So, this paper ad goes to the family recycling bin while I continue to pay my bills online. I'm guessing I've already joined the revolution. Now I have to wonder if the $5000 is a check or if they will direct deposit it to the winner...
Saturday, September 6, 2008
Monday to Friday
Françoise Bertaut de Motteville wrote "The true way to render ourselves happy is to love our work and find in it our pleasure." It seems that in 17th century France, the idea of being happy while engaged in our life's work was taking hold and still continues til today.
How to get the most out of our work is an interesting thing -- how some people are extremely driven to accomplish tasks or interact with people constantly is rather amazing. Other people have near zero drive to anything. I typically find myself caught between the two extremes. To maximize our drive (or our pleasure) in what we do, it seems wise to find ourselves loving our work -- or at least enjoying it enough so that it is not a sore pain point that just comes around several days a week.
My paid job keeps me involved Monday to Friday typically. I'm trying to make sure I enjoy that, despite daily challenges that come along. If I feel perpetually stuck or not having fun anymore, I'll be looking to move on and find something else. Love what you do!
How to get the most out of our work is an interesting thing -- how some people are extremely driven to accomplish tasks or interact with people constantly is rather amazing. Other people have near zero drive to anything. I typically find myself caught between the two extremes. To maximize our drive (or our pleasure) in what we do, it seems wise to find ourselves loving our work -- or at least enjoying it enough so that it is not a sore pain point that just comes around several days a week.
My paid job keeps me involved Monday to Friday typically. I'm trying to make sure I enjoy that, despite daily challenges that come along. If I feel perpetually stuck or not having fun anymore, I'll be looking to move on and find something else. Love what you do!
Friday, September 5, 2008
Off to the races!
An adventure of something new must have a starting point, so today the bell sounds to try something new. I should find myself motivated to get a variety of other things done, but perhaps a chance to express in words a few observations from Virginia, USA might be fun.
I'll certainly be looking forward to learning a lot here, reading the comments & gaining some wisdom into the world around me. Thanks for reading along, and please comment or email me with anything on your mind as I explore life unsystematically.
I will highlight the title... 'Expiration Friday' is typically the third Friday of a given month in which stock options typically expire. Although one set of options can expire this third Friday, it seems fitting that other contracts continue into future months, or are opened and created for future months at any given time. So, although expiration Fridays signal a small end, they leave room for many new beginnings for the future.
I'll certainly be looking forward to learning a lot here, reading the comments & gaining some wisdom into the world around me. Thanks for reading along, and please comment or email me with anything on your mind as I explore life unsystematically.
I will highlight the title... 'Expiration Friday' is typically the third Friday of a given month in which stock options typically expire. Although one set of options can expire this third Friday, it seems fitting that other contracts continue into future months, or are opened and created for future months at any given time. So, although expiration Fridays signal a small end, they leave room for many new beginnings for the future.
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