Tuesday, October 29, 2013

Consumption vs. Investment

Here are two videos you should see that describes a key economic issue: consume or invest.

WHAT WORKS - Before Washington, California was the national symbol of partisan paralysis and government dysfunction. This was the place where voter initiatives slashed the power of state lawmakers, runaway deficits and gridlocked budgets were the rule of the day, and a circus of a recall election forced a governor out of office ... But in the past month, California has been the stage for a series of celebrations of unlikely legislative success ... The turnaround from just 10 years ago - striking in tone, productivity and, at least on fiscal issues, moderation - is certainly a lesson in the power of one-party rule. Democrats hold an overwhelming majority in the Assembly and Senate and the governor, Jerry Brown, is a Democrat. The Republican Party ... has diminished to the point of near irrelevance.

But ... three major changes in California's governance system intended to leach some of the partisanship out of politics ... may also be having their desired effect ... Lawmakers came into office this year representing districts whose lines were drawn by a nonpartisan commission ... This is the first Legislature chosen under an election system where the top two finishers in a nonpartisan primary run against each other, regardless of party affiliations, an effort to prod candidates to appeal to a wider ideological swath of the electorate. And California voters approved last year an initiative to ease stringent term limits, which had produced a Statehouse filled with inexperienced legislators looking over the horizon to the next election. Lawmakers can now serve 12 years in either the Assembly or the Senate.

TWITTER ENTERS HOT IPO MARKET - As Twitter this week begins an eight-city road show to pitch its stock sale to big institutional shareholders like Fidelity, BlackRock and Legg Mason, it will be entering one of the strongest markets for I.P.O.'s in three years, especially in the United States. Despite Facebook's initial stumble in its market debut in May 2012, investors have shown a growing appetite for initial offerings ... Retail investors, in particular the very wealthy, are also seeking exposure to soaring stock of new companies. ...

This year, 169 companies have gone public in the United States, raising $45 billion, according to Thomson Reuters. Both figures are at the highest levels since the financial crisis of 2008, though the number of offerings remains below the level set before the financial crisis. And nine companies have raised more than $1 billion in their debuts so far in 2013, the largest number in at least five years.

BIRTHDAYS THIS WEEK – Birthday wishes and thoughts this week to: Kate Capshaw (60), Michael Dukakis (80), Bill Gates (58), Rochelle Hanson …famous public servant and finance expert, Lauren Holly (50), Dennis Miller (60), Gary Player (78), Denis Potvin (60).

FRANKLIN CIDER MILL – I grew up in a small suburban town, Franklin Michigan. The perfect place to grow up: walk to school, skating pond in the back yard, baseball fields three blocks away, corner store, small local library, AND The Franklin Cider Mill.

The Franklin Cider Mill is a one-of-a-kind living piece of history.
1.       They press and bottle apple cider right here at the Mill! Each side of the press can hold up to sixty bushels of apples.
2.      The average yield is approximately three gallons of cider per bushel of apples.
3.      Cider season opens Labor day weekend and usually remains open until the first weekend after Thanksgiving.
4.      The apples are all sorted and washed before going into the grinder.
5.      Usually between eight to twelve hundred bushels of apples are sorted on the second floor of the Mill, there the sorting and feeding of the apples into the grinder.
6.      The donuts sold here are made by an old German recipe brought to this country many years ago.
7.      The cider is NOT filtered, NOT pasteurized, and does NOT contain any form of preservative. It is a pure fruit juice and MUST be kept refrigerated

 If you are in the Detroit area this fall, take in The Franklin Cider Mill, truly one-of-a-kind. Also don’t forget while in Birmingham stop by Leo’s Coney Island hot dogs, THE BEST.
COLLEGE FOOTBALL BCS - Oregon passed Florida State and moved into second place behind Alabama in the BCS standings. ... Alabama's remaining schedule is LSU, Mississippi State, Chattanooga and Auburn before a possible [SEC] championship game. If the Crimson Tide run the table, it'll likely play in a third straight BCS championship game, and fourth in five years. ... Ohio State is still fourth in the standings after its 63-14 victory against Penn State. ... Stanford is fifth in the standings, followed by unbeaten Baylor and Miami.

COLLEGE FOOTBALL PICK OF THE WEEK – Saturday 11/2, 8:00 PM ET, ABC: #7 Miami Hurricanes (7-0) at #3 Florida State Seminoles (7-0). Just like the old days, a HUGE Florida in state game, ACC domination is at stake. FSU too much for The Canes 42 – 28.  Season to date (6-2)

SMALL COLLEGE FOOTBALL PICK OF THE WEEK – Saturday 11/2, 2:00 PM ET, BRAVO: #8 UW-Platteville Pioneers (7-0) visit #7 UW-Whitewater Warhawks (7-0) in this WIAC first place game at Perkins Stadium. Perennial power Whitewater will dominant 28 – 10.  Season to date (6-1)

NFL PICK OF THE WEEK – Thursday 10/31, 8:25 PM ET, NFL: Cincinnati Bengals (6-2) at Miami Dolphins (3-4). Too tough for Miami to bounce back after a Sunday struggle, Bengals 24 Miami 14.  Season to date (7-0)

(NCAA, Nov. 2) Cornell Big Red (1-5) 10 at Princeton Tigers (5-1) 32
(SCIAC Game of the Week, Nov. 2) Chapman Panthers (5-1) 28 at La Verne Leopards (3-2) 30
(NHL, Nov. 2) Toronto Maple Leafs (8-4) 3 at Vancouver Canucks (9-4-1) 5
(NFL Upset of the Week, Nov. 3) Pittsburgh Steelers (2-5) 21 at New England Patriots (6-2) 20
Season to date (36-29)

Distaff – Royal Delta
Turf – The Fugue
Sprint – Pointsoffthebench
Mile – Wise Dan
Classic – Will Take Charge


lallygag \LAH-lee-gag, LAL-ee-\, verb:
1. to spend time idly; loaf.
2. to indulge in kisses and caresses; make love; neck.
“Are you coming in, or are you going to lallygag in the hallway?”

trece, adjective, noun
not to budge, to stick to your guns
Seguir or mantenerse en sus trece is an idiomatic phrase which means to refuse to change your position on something, for example:
“Los dos lĂ­deres se mantienen en sus trece.”
The two leaders are refusing to budge.

MARKET WEEK - The Dow and the S&P 500 are riding three-week winning streaks as we head into the final four trading days of October, with investors now focused on the two-day meeting of Federal Reserve policymakers that begins tomorrow. The central bank is not expected to begin trimming its bond-buying program, in part because of concerns about the lingering effects of the government shutdown.

DRIVING THE WEEK – Budget conference begins Wednesday with a meeting that is entirely for show ... Huge week for economic data begins this morning with industrial production at 9:15 a.m. expected to rise 0.4 percent ... Pending home sales at 10 a.m. this morning expected to be flat ... Producer prices at 8:30 a.m. Tuesday expected to rise 0.2 percent headline, 0.1 percent core ... Retail sales Tuesday at 8:30 a.m. expected to be flat, up 0.4 percent ex-autos ... Case-Shiller home prices at 8:30 a.m. Tuesday expected to rise 0.6 percent ...

Conference Board consumer confidence Tuesday at 10 a.m. expected to dip to 75.0 from 79.7 .. ADP employment report 8:15 a.m. Wednesday expected to show a gain of 150K ... Consumer prices at 8:30 a.m. Wednesday expected to rise 0.2 percent headline and core ... No big moves expected in FOMC announcement Wednesday at 2:00 p.m. ... Treasury Secretary Jack Lew is in NYC today for meetings.

Next week: Jack Ass of the Month.

Until Next Monday, “Adios.”

Claremont, CA
October 29, 2013

#IV-28, 185

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