Friday, May 26, 2017

Memorial Day


General Orders No.11, WASHINGTON, D.C., May 5, 1868

1. The 30th day of May, 1868, is designated for the purpose of strewing with flowers or otherwise decorating the graves of comrades who died in defense of their country during the late rebellion, and whose bodies now lie in almost every city, village, and hamlet church-yard in the land. In this observance no form of ceremony is prescribed, but posts and comrades will in their own way arrange such fitting services and testimonials of respect as circumstances may permit.

We are organized, comrades, as our regulations tell us, for the purpose among other things, “of preserving and strengthening those kind and fraternal feelings which have bound together the soldiers, sailors, and marines who united to suppress the late rebellion.” What can aid more to assure this result than cherishing tenderly the memory of our heroic dead, who made their breasts a barricade between our country and its foes? Their soldier lives were the reveille of freedom to a race in chains, and their deaths the tattoo of rebellious tyranny in arms. We should guard their graves with sacred vigilance. All that the consecrated wealth and taste of the nation can add to their adornment and security is but a fitting tribute to the memory of her slain defenders. Let no wanton foot tread rudely on such hallowed grounds. Let pleasant paths invite the coming and going of reverent visitors and fond mourners. Let no vandalism of avarice or neglect, no ravages of time testify to the present or to the coming generations that we have forgotten as a people the cost of a free and undivided republic.

If other eyes grow dull, other hands slack, and other hearts cold in the solemn trust, ours shall keep it well as long as the light and warmth of life remain to us.

Let us, then, at the time appointed gather around their sacred remains and garland the passionless mounds above them with the choicest flowers of spring-time; let us raise above them the dear old flag they saved from hishonor; let us in this solemn presence renew our pledges to aid and assist those whom they have left among us a sacred charge upon a nation’s gratitude, the soldier’s and sailor’s widow and orphan.

2. It is the purpose of the Commander-in-Chief to inaugurate this observance with the hope that it will be kept up from year to year, while a survivor of the war remains to honor the memory of his departed comrades. He earnestly desires the public press to lend its friendly aid in bringing to the notice of comrades in all parts of the country in time for simultaneous compliance therewith.

3. Department commanders will use efforts to make this order effective.

By order of


Adjutant General

The preferred name for the holiday gradually changed from "Decoration Day" to "Memorial Day," which was first used in 1882. Memorial Day did not become the more common name until after World War II, and was not declared the official name by Federal law until 1967. On June 28, 1968, Congress passed the Uniform Monday Holiday Act, which moved four holidays, including Memorial Day, from their traditional dates to a specified Monday in order to create a convenient three-day weekend. The change moved Memorial Day from its traditional May 30 date to the last Monday in May. The law took effect at the federal level in 1971. After some initial confusion and unwillingness to comply, all 50 states adopted Congress' change of date within a few years.

NEW YORK TIMES OP-ED, May 24, 2017 - Colin Powell: American Leadership — We Can’t Do It for Free

At our best, being a great nation has always meant a commitment to building a better, safer world — not just for ourselves, but for our children and grandchildren. This has meant leading the world in advancing the cause of peace, responding when disease and disaster strike, lifting millions out of poverty and inspiring those yearning for freedom.

This calling is under threat.

The administration’s proposal, announced Tuesday, to slash approximately 30 percent from the State Department and foreign assistance budget signals an American retreat, leaving a vacuum that would make us far less safe and prosperous. While it may sound penny-wise, it is pound-foolish.

This proposal would bring resources for our civilian forces to a third of what we spent at the height of Ronald Reagan’s “peace through strength” years, as a percentage of the gross domestic product. It would be internationally irresponsible, distressing our friends, encouraging our enemies and undermining our own economic and national security interests.

The idea that putting Americans “first” requires a withdrawal from the world is simply wrongheaded, because a retreat would achieve exactly the opposite for our citizens. I learned that lesson the hard way when I became secretary of state after a decade of budget cuts that hollowed out our civilian foreign policy tools.

Many had assumed the Cold War’s end would allow us to retreat from the world, but cuts that may have looked logical at the time came back to haunt us as tensions rose in the Middle East, Africa, the Korean Peninsula and elsewhere. Confronting such challenges requires not just a military that is second to none, but also well-resourced, effective and empowered diplomats and aid workers.

Indeed, we’re strongest when the face of America isn’t only a soldier carrying a gun but also a diplomat negotiating peace, a Peace Corps volunteer bringing clean water to a village or a relief worker stepping off a cargo plane as floodwaters rise. While I am all for reviewing, reforming and strengthening the State Department and the United States Agency for International Development, proposals to zero out economic and development assistance in more than 35 countries would effectively lower our flag at our outposts around the world and make us far less safe.

Today, the world is witnessing some of the most significant humanitarian crises in living memory. With more than 65 million people displaced, there have never been more people fleeing war and instability since World War II. The famines engulfing families in South Sudan, Yemen, Nigeria and Somalia put more than 20 million people at risk of starvation — further destabilizing regions already under threat from the Islamic State, Al Qaeda, Boko Haram and Al-Shabaab.

Do we really want to slash the State Department and the U.S.A.I.D. at such a perilous moment? The American answer has always been no. Yet this budget proposal has forced us to ask what America’s role in the world is and what kind of nation we seek to be. The president’s budget director, Mick Mulvaney, has described these cuts as “not a reflection of the president’s policies regarding an attitude toward State.” But how is a 32 percent cut to our civilian programs overseas anything but a clear expression of policy?

True, many in Congress have effectively declared the administration’s budget proposal “dead on arrival,” but they also acknowledge that it will set the tone for the coming budget debate. That’s the wrong conversation. Our diplomacy and development budget is not just about reducing spending and finding efficiencies. We need a frank conversation about what we stand for as that “shining city on a hill.” And that conversation begins by acknowledging that we can’t do it on the cheap.

Diplomacy and aid aren’t the only self-defeating cuts in the administration’s proposal. A call to all but eliminate two key export-promotion agencies — the Overseas Private Investment Corporation and the Trade and Development Agency — would harm thousands of American workers and actually add to the deficit. And any cuts to our economic development investments in Africa and elsewhere would undermine our ability to build new customer bases in the world’s fastest-growing markets.

With 95 percent of the world’s consumers outside our borders, it’s not “America first” to surrender the field to an ambitious China rapidly expanding its influence, building highways and railroads across Africa and Asia. China is far from slashing its development budget. Instead, it’s growing — by more than 780 percent in Africa alone since 2003.

Since the release of its initial budget request in March, the administration has started to demonstrate a more strategic foreign policy approach. This is welcome, but it will take far more than a strike against Syria, a harder line on Russia, increased pressure on North Korea and deeper engagement with China to steer American foreign policy. It also takes the resources to underwrite it.

America is great when we’re the country that the world admires, a beacon of hope and a principled people who are generous, fair and caring. That’s the American way. If we’re still that nation, then we must continue to devote this small but strategic 1 percent of our federal budget to this mission.

Throughout my career, I learned plenty about war on the battlefield, but I learned even more about the importance of finding peace. And that is what the State Department and U.S.A.I.D. do: prevent the wars that we can avoid, so that we fight only the ones we must. For our service members and citizens, it’s an investment we must make.

Colin Powell was the secretary of state from 2001 to 2005.

HOLIDAY TRAVEL - Prices at the pump are going up this Memorial Day weekend after a month of decline, according to AAA.

Why this matters: If you're driving for the long holiday weekend, it'll cost you more. Longer term, higher gasoline prices drives up Americans' interest in -- and mostly disdain for -- Washington's energy policies. However, with the OPEC production deal, domestic gasoline prices are unlikely to rise substantially any time soon.

No matter how you count them, the numbers are going up.

National average gasoline prices are $2.39 this week, according to the U.S. Energy Information Administration, three cents more than a week ago.

More than 34 million Americans are planning to take a road trip this weekend, which is 800,000 more than last year, AAA says. That increase is helping increase gas prices.
The biggest increases over the last week were found in Ohio (a dime higher), Michigan (nine cents), and California (eight cents).

BIRTHDAYS THIS WEEK – Birthday wishes and thoughts this week to Cher (71) Beverly Hills, CA.; Jim Lehrer (83) Dallas, TX.; Ray Skelton …a true gentle man.

ENDANGERED SPECIES - For years banks and brokers stocked their annual recruiting classes with new hires who shared at least one thing in common: They’d played college sports. In New York and Chicago, trading floors teemed with former football and lacrosse stars, as well as veterans of college hockey, wrestling, tennis and crew teams. Ex-jocks have a stomach for risk-taking, the theory went, and the ideal temperament to win clients’ trust and business. The industry started to shift away from athletes to Ph.D.s in the 1990s as derivatives grew in number and complexity. More recently, the rise of electronic trading and quantitative investing has called for many more recruits with math or computer-programming skills. Still, some say Wall Street may rue the day ex-jocks and others with similar skills are cast aside.

COLLEGE CHRONICLES – A personal note this week as we come to a close of the 2016-2017 academic year. I would like to congratulate the 73 undergraduate and 71 graduate students I have had the pleasure to work with these last few years on their graduation this weekend. These fine students represent fifteen countries, they range in age from 21 – 61, the majority work, manage families, manage companies, and still find time to excel in the classroom.  This teacher has learned just as much from them as they have learned from me. They get it. Many of us do not get it.

Be bold, be courageous, be your best. Much success!

STUDENT LOANS COULD MOVE FROM ED TO TREASURY - The Trump administration is considering moving responsibility for overseeing more than $1 trillion in student debt from the Education Department to the Treasury Department, a switch that would radically change the system that helps 43 million students finance higher education.

A shift in handling federal student aid is being weighed as the Trump administration and Ms. DeVos consider overhauling the Department of Education. Mr. Trump's proposed budget for 2018 slashes funding for the department by nearly 50 percent. Moving one of its core functions to Treasury would significantly diminish the agency's power. It could also alter the mission of the student loan program.

POTUS 2018 BUDGET – Very unlikely it will pass the Congress, but here it is:

FORD MOTOR -- Ford Motor Chief Executive Mark Fields is leaving the company, and will be replaced by the head of its Ford Smart Mobility LLC subsidiary, James P. Hackett, the company announced on Monday ... The shakeup is a result of Executive Chairman Bill Ford and the rest of the board losing confidence in Fields' leadership ... Fields replaced Alan Mulally in mid-2014, but lacked his predecessor's ability to rally employees around a common mission or to make critical decisions about the company's strategy. ... Directors were increasingly alarmed by the deterioration in Ford's business, despite hefty profits from its flagship F-series pickup truck line.

Why Ford is making this huge strategy shift

AUTO INDUSTRY IN TROUBLE - For years, America's auto industry has been a bright spot in the global economy. Since early 2009 employment in auto manufacturing has increased by two-thirds. Monthly sales of cars and lorries have nearly doubled ... In 2015 and 2016, GM and Ford reported record profits, fueled by surging demand for lorries and sport-utility vehicles.

However, there are growing signs that America's car market is running out of gas. In April sales of new cars and lorries fell for the fourth straight month. ... Facing swelling inventories, carmakers have slashed prices and increased incentives for dealers. But these measures have eaten into their profits.

CORD CUTTERS - Cord-cutters are ditching their cable packages at the fastest rate ever.

The latest Magid Broadcast Study finds that 9% of TV subscribers aged 16-64 are extremely likely to cancel service in the next year, up from 5.7% in the prior year.

Why it matters: The trend reflects consumers' preferences to ditch bundled cable packages for more affordable, niche bundled services that can be accessed on TV box tops or on mobile. For consumers, there are more bundled packages than ever, all popping up around similar price ranges. YouTube TV and Hulu TV launched within the past two months, joining the likes of SlingTV and DirectTV Now — all at a roughly $40 monthly price point — a bargain considering the average American pays $92 monthly for cable.

BATTLE ROYALE -- Putin and Merkel: A Rivalry of History, Distrust and Power. Ms. Merkel, 62, is now the undisputed leader of Europe, weary but resolute, the stolid defender of an embattled European Union and of Western liberal values. Mr. Putin, 64, is now the equivalent of a modern Russian czar, who wants to fracture Europe and the liberal Western order. He has outlasted George W. Bush and Barack Obama in America, and Tony Blair, David Cameron, Jacques Chirac and Nicolas Sarkozy in Europe. ... Now Europe's fate is on the line, with coming elections in the Netherlands, France, possibly Italy and in Germany, where Ms. Merkel is seeking a fourth term as chancellor. If not on any ballot, Mr. Putin is a shadow figure in every race, inspiring angry European populists who embrace his nationalistic ethos, while Russia is also suspected of meddling through cyberhacking and spreading disinformation. Toppling Ms. Merkel would mean Mr. Putin had bested his last rival.

WEEKEND READ - National Geographic cover story, "Why We Lie ... scheming and dishonesty are part of what makes us human," by Yudhijit Bhattacharjee:

"Our capacity for dishonesty is as fundamental to us as our need to trust others, which ironically makes us terrible at detecting lies. Being deceitful is woven into our very fabric, so much so that it would be truthful to say that to lie is human."

"Researchers speculate that lying as a behavior arose not long after the emergence of language. The ability to manipulate others without using physical force likely conferred an advantage in the competition for resources and mates, akin to the evolution of deceptive strategies in the animal kingdom, such as camouflage."

Why it matters: "Our proclivity for deceiving others, and our vulnerability to being deceived, are especially consequential in the age of social media. Our ability as a society to separate truth from lies is under unprecedented threat."

REALLY? – A baby born in the U.S. in 2016 can expect to live 79 years on average. But depending on which county a child is born in, life expectancy can vary by two decades, ranging from a low of 67 years in Oglala Lakota County, South Dakota, to a high of 87 years in Summit County, Colorado.


As we approach the Stanley Cup Finals, it is that time of year to announce our Rink Rats National Hockey League awards for this past season.

Most Valuable Player – Connor McDavid, Edmonton Oilers

Outstanding Rookie – Austin Matthews, Toronto Maple Leafs

Outstanding Goaltender – Sergei Bobrovsky, Columbus Blue Jackets

Outstanding Defenseman – Erik Karlsson, Ottawa Senators

Outstanding Coach – Mike Babcock, Toronto Maple Leafs

Biggest Surprise of the Season – Toronto Maple Leafs

Biggest Disappointment of the Season – Dallas Stars



MLB Game of the Week (May 27) – Chicago Cubs (25-21) visit Los Angeles Dodgers (28-20), Dodgers win 5 – 4.

GS 4 CLE 2

Season to Date (39 - 17)

DRIVING THE DAY - President Trump meets with Prime Minister Shinzo Abe and takes part in the G7 meeting in Taormina, Italy ... Second estimate of Q1 GDP at 8:30 a.m. expected to be revised up to 0.9 percent from 0.7 percent ... Univ. Michigan Consumer Sentiment at 10:00 a.m. expected to rise to 97.5 from 97.0.

Next Blog: Jack Ass of the Month, Words of the Month, Dear Rink Rats.

We will be off next week, see you on June 5, Adios

Claremont, California

May 26, 2017


Monday, May 15, 2017

Commencement Season

We begin our eighth year of Rink Rats, thank you for reading.

Commencement address season has, well, commenced. Every spring, on every college campus across the nation, wisdom is blooming. And the cream of these graduation speeches rises to the internet for us all to glean and enjoy.

As with TED Talks, best man toasts and eulogies, there is a structure to these short addresses because the audience is well-defined by occasion. Graduates stand at one of the greatest moments of their lives (at least up to that point). They are excited, scared, purposeful or purposeless. They need a little celebratory push out of the nest.

In old school philosophy-speak, commencement addresses fall into a category Aristotle defined as epideictic oratory: the rhetoric of ceremony in which praise or even blame is laid at our feet and guidance is given on how to move forward. In most speeches the speaker cannot relate to their audience, thus a me, myself, and I theme is central to the address.

These speeches also contain inspiration, warnings, hope, calls to action, apologies for being an unworthy and/or boring speaker, inside jokes about the school or college life in general. Most addresses seize the spirit of the occasion, which is Janus-like in its need to simultaneously look forward and backward. The moment is called graduation (signaling the completion of an era) and commencement (the beginning of one), as President Ronald Reagan explained in his 1982 address to his alma mater, Eureka College in Illinois.

Graduation is a ritual of walking through a major threshold -- simultaneously leaving one room and entering another.

"Get in your car. You don't have a map, and you don't have a destination, you just flip a coin and get on the road," encouraged political operative Mary Matalin in a tandem one-two punch of inspiration delivered with her husband, James Carville, at the University of Maryland in 1999.

Screenwriter Aaron Sorkin's highly entertaining address to the Syracuse University class of 2012 urged active citizenship because "decisions are made by those who show up." It's a sentiment echoed by historian Howard Zinn, who reminded the 2005 class of Spelman College that democracy isn't handed down from the government but from "people getting together and struggling for justice."

So Commencement season is upon us, here are some of the notable speakers this season:

Arizona State University (May 8)  - Starbucks chairman Howard Schultz

University of Southern California (May 12) - Will Ferrell

Virginia Tech (May 12) - Facebook chief operating officer Sheryl Sandberg

University of Pennsylvania (May 15) - Senator Cory Booker (D-N.J.)

U.S. Coast Guard Academy (May 17)- President Donald Trump

Skidmore College (May 20) - Oprah Winfrey

Lafayette College (May 20) - Alexander Hamilton author Ron Chernow

St. Lawrence University (May 21) – Senator Susan M. Collins ’75 (R-Maine) &  Richard Guarasci (St. Lawrence Professor 1973-1992) President Wagner College

Harvard University (May 25) - Facebook founder (and Harvard dropout) Mark Zuckerberg

Wellesley College (May 26) - Former Secretary of State Hillary Clinton

University of La Verne (May 27) – Maria Contreras-Sweet

Brooklyn College (May 30) - Senator Bernie Sanders (I-Vt.)

Massachusetts Institute of Technology (June 10) - Apple CEO Tim Cook

Dartmouth College (June 11) - CNN anchor Jake Tapper

University of California, San Diego (June 17) - Dalai Lama

CASH - So much cash is raining on some U.S.-based corporations that they are at a loss on what to do with all the money.

With the $250 billion sitting in its bank account, Apple could comfortably go out and buy Chevron, the second-largest U.S. oil company, at today’s market price without borrowing a penny. The technology giant would still have $50 billion left to buy more than 700,000 Tesla model S electric cars or about four Gerald R. Ford class aircraft carriers.

Then there’s Microsoft. The Seattle-based software maker has the second-largest stash, at $126 billion, enough to buy a $100,000 home for 1.2 million Americans.

And the blizzards of green are not limited to the tech sector.
Legendary investor Warren Buffett will preside over his annual Berkshire Hathaway shareholder meeting this weekend in Omaha — known as “Woodstock for Capitalists” — while his company sits on $86 billion in cash. That’s enough to pay for New York City’s government operations for a year.

The cash hoards are coming to the forefront as earnings season is heating up. U.S. companies are reporting mostly robust profits, and the stock market, especially technology shares, are ballooning. Some investors have cautioned that equities are frothy in light of the geopolitical risks such as North Korea and the political divide in the country.

A big part of the reason behind the rich corporate caches is taxes — or unpaid taxes. Apple, Microsoft and many other U.S.-based international companies are sitting on well more than $2 trillion in cash from untaxed overseas profits, which could be brought back to the United States to be used for investment and dividends if lawmakers lower the U.S. corporate tax rate, which at 35 percent is one of the highest in the world.

“Apple is one of the best companies in the world, and a third of their value is sitting in vaults in Switzerland and Luxembourg and Dublin,” said Timothy Loughran, a finance professor at the University of Notre Dame’s Mendoza College of Business. “Isn’t that pathetic?”

The Trump administration has promised to lower the corporate tax rate significantly. Economists and politicians on both sides of the aisle have said a lower corporate tax rate or a tax holiday that repatriates money from overseas will unleash hundreds of billions of dollars, if not trillions, in dividends and business investments in the United States.

“Companies have been accumulating cash over many years,” said David Kass, a finance professor at the University of Maryland’s Smith School of Business. “The perverse disincentives of our current corporate tax system are discouraging corporations from bringing back international profits to invest in the U.S.”

Apple chief executive Tim Cook, in an interview with The Washington Post last year, said federal and state taxes on Apple’s cash reserves, the vast majority of which is overseas, is about 40 percent. Many U.S.-based companies leave their earnings overseas rather than pay the U.S. rate.

If the corporate rate is reduced or a holiday is granted, Apple, Microsoft and others could pay a special dividend, buy back shares or both. They could also make acquisitions, although Apple has preferred to grow organically by inventing new products such as the iPhone and iPad and investing in itself.

Apple earned $45.6 billion in profit in 2016 on revenue of $215 billion. It paid a handsome dividend of $2.18, although the rise in share price has cut its yield to about 1.7 percent and made the shares much less of a bargain than they once were.

If Apple chose a special dividend, its $250 billion would cover a $48 payment on each of its 5.2 billion shares. That is highly unlikely, although some lump sum dividend is possible, and it could touch nearly every American who has a retirement plan or owns taxable mutual funds.

“What is going to happen when Apple has $1 trillion in cash?” said Loughran, pointing out that the iPhone 10 is due out this year. “It won’t be that long. What are we going to do then? The way I think about it is the treasure of America sitting in a vault in Switzerland. We created $250 billion from profits and we are not using it. This is an obvious reform that is needed.”

Kass said he expects a major return by Apple to shareholders through several vehicles, including an increase in the Apple dividend, stock buybacks and a big one-time dividend. He said it is less likely that Apple would make acquisitions, given the company’s historic aversion to them. Berkshire Hathaway has little in overseas exposure because most of its profits are made in the United States. And Buffett has been reluctant for Berkshire Hathaway to pay dividends, arguing that he can make better use of the money by finding smart investments.

“His companies are sufficiently profitable, and he is very patient, that his cash has accumulated over several years,” Kass said. “But if the corporate rate is lowered from 35 percent to 15, 20, 25, it will result in additional profits for Berkshire and just about every other American-based corporation.

“If that takes place, then Warren Buffett’s pile of cash will increase much further,” he said.

BIRTHDAYS THIS WEEK – Birthday wishes and thoughts this week to Barb Colley …famous ex-ROC administrator; Shelly LaMotte …famous hospitality manager; Tim McGraw (50) Memphis, TN.; Robb Suffredini …famous soccer Dad.

APPLE'S COMEBACK CAMPAIGN CONTINUES - Apple Inc. extended its rebound in the latest quarter with rising profit and revenue, but reported tepid iPhone demand that adds pressure on the technology giant to deliver a hit with its new 10th anniversary handset later this year.

Profit in the three months through April 1 rose 4.9 percent to $11.03 billion - Apple's first quarterly increase in earnings in more than a year. The overall performance adds evidence that the world's most valuable company has stabilized its business after a slump in its last fiscal year, during which weak sales of its core products and rising competition sent revenue and profit tumbling.

And its dividend has surpassed Exxon's major payout: There was a time when Apple investors were loath to call it a 'dividend stock.' Now it's the biggest dividend stock there is.

Apple announced after the bell Tuesday a 10.5 percent increase in its dividend to $13.22 billion annually, surpassing Exxon Mobil's $12.77 billion payout and making it the biggest-paying dividend stock in the world. ... The giant payout increase, a luxury made possible by the tech company's now $256.8 billion cash hoard, should help cushion the blow.

Shipments of its flagship product slipped 1% from a year earlier to 50.8 million iPhones, owing partly to continued weakness in China and to customers waiting for the forthcoming phone model, which is expected in the autumn. The overall performance adds evidence that the world’s most valuable company has stabilized its business after a slump in its latest fiscal year, during which weak sales of its core products and rising competition sent revenue and profit tumbling. The latest quarter’s increase in revenue was the second in a row, following three consecutive quarterly declines.

Apple's CEO, appearing on CNBC's "Mad Money" show last Wednesday, said his company will pump $1 billion - yes, with a "b" - into a fund to invest in advanced manufacturing projects here in the U.S. There's a lot to unwind with Cook's announcement and MT breaks it down for you:

While Cook didn't frame it as a concession to Trump, the new manufacturing fund is clearly aimed at the president, who's criticized companies for making products overseas and taken repeated shots at Apple in particular for producing iPhones in China. Apple joins scores of other firms, like SoftBank, that have sought to court Trump with new investments and job creation here in the U.S. (though unlike Apple, several of the firms appear to have recycled previously made plans to allow the president to take credit.)

The $1 billion for Apple's fund will have to be borrowed, Cook told "Mad Money" host Jim Cramer, because the company is up against "bizarre" tax rates that make it extraordinarily painful to bring home the considerable profits it makes overseas. Apple and other U.S. multinationals have hoarded billions of dollars abroad, so they can avoid the 35 percent top corporate tax rate if they bring that money home. Trump has proposed requiring companies to repatriate that money at a lower, one-time tax rate.

Tesla update - A few notes on Silicon Valley electric automaker Tesla, which saw a jump in revenue but posted a first quarter net loss of $330 million.

Big picture: The loss isn't what's important, it's how Tesla navigates a slew of upcoming projects, notably the launch of the Model 3 sedan later this year.

Few expect the electric car and alternative energy company to make a profit for some time. Its future now depends on the Model 3, which unlike the Tesla Model S and Model X luxury cars is aimed at a wider consumer base, with a stated entry price of $35,000.

RISKY BUSINESS - A wave of regulations aimed at cutting risk in China’s financial system is rippling through the country’s markets and sending banks and companies scrambling for funds. During the past month, Chinese shares have fallen nearly 5%, draining almost half a trillion dollars out of the country’s markets. Bond yields have shot up to their highest levels in two years, and bond defaults hover at record levels. Investors blame the volatility on a host of measures Chinese authorities have rolled out to curb runaway debt levels, from raising the cost of short-term funds to actions that are prompting banks to unwind hidden loans and securities. The market turbulence will test Beijing’s resolve to tackle China’s snowballing debt, especially if it looks like regulators’ clampdown is jeopardizing short-term growth.

FORMER POTUS FOR RENT - Rough speaking fees for former presidents who are on the circuit:

Bill Clinton: $250,000 (raised his fee to match Hillary's when hers went up after she was SecState)
George W. Bush: $200,000
Barack Obama: $400,000

Note: These are averages — it's more if speech is overseas; less if it's local.
Bonus scoop: Michelle Obama books for $200,000.

ONE NATION UNDERWOOD: "House of Cards" Season 5 trailer ...Kevin Spacey's sinister President Frank Underwood [shares] a disturbing vision for the next six terms ... with an Underwood in the award-winning drama's fictional White House. 'The American people don't know what's best for them. I do. I know exactly what they need,' says POTUS, [drawling] to Claire (Robin Wright), his running mate in the fictional 2016 election, which will continue in the upcoming season."

They're like little children, Claire. We have to hold their sticky fingers and wipe their filthy mouths. Teach them right from wrong. Tell them what to think, and how to feel and what to want. They even need help riding their wildest dreams, crafting their worst fears. Lucky for them, they have me. They have you. Underwood 2016, 2020, 2024, 2028, 2032, 2036. One nation, Underwood.

THE LEGEND OF THE OCTOPUS - we often think about some of the history, some of the superstitions and some of the lucky charms in hockey. One such item, particular to the NHL, is the throwing of an octopus onto the ice in Detroit. A strange sports custom if ever there was one.

For the true origins of throwing octopus onto the ice we must hearken back to the age of poodle skirts and The King of Rock and Roll himself, Elvis Presley.

Back in 1952 the NHL boasted a total of six teams, and because of the league’s diminutive stature it only took a total of eight wins (two best-of-seven series) to clinch the Stanley Cup. That’s a far cry from today’s NHL, where 16 wins secures a date with Lord Stanley, but I’m sure you can imagine what those guys would have looked like — what with the primitive protection and all — if today’s grueling playoff schedule was in place back then. It would have been a massacre, and instead of being awarded a trophy teams would instead be treated to free room and board at Detroit Receiving Hospital. It give me chills just thinking about it.

But I’m getting off the subject. It took eight games to win the Cup, so when Detroit swept the Toronto Maple Leafs and the Montreal Canadiens en route to their 1952 championship two Detroit area store owners — Pete and Jerry Cusimano they were — threw the eight-tentacled beast onto the ice and the Legend of Detroit’s Lucky Octopus was born.

Of course other fans around the league have put their own spin on the octopus toss, but none ever caught on like the one born right here in Michigan. In the ’95 series between Boston and New Jersey a fan of the Bruins threw a lobster onto the ice, and in ’96 fans of the Florida Panthers took to throwing thousands of toy rats whenever the Panthers scored. Unfortunately for Panthers fans that practice was short-lived due to both the lengthy cleanup time involved as well as the Panthers eventual implosion in the Stanley Cup Finals that year. There was also supposedly a guy who smuggled a 4-foot leopard shark into the HP Pavilion during the Detroit/San Jose series in 2007, but one has to question whether or not that was an inside job. Security can’t be that lax, right?



MLB Game of the Week (May 20) – Colorado Rockies (24-15) at Cincinnati Reds (19-18), two 2017 surprising teams, Rockies win this one 6 – 3.

GS 4 SA 2

Season to Date (36 - 16)

MARKET WEEK – Big Tech" is "Our Favorite Security Blanket" for stocks: Investors are flocking to tech stocks on worries that the economy may be rolling over. And all are waiting for the new iPhone.

At times like this, investors cling to what they fear could soon become scarce — robust growth.

We think Amazon [now $961] ... could reach $1,000 by summer and $1,100 within a year, for a gain of close to 20%, which, along the way, could make Amazon founder Jeff Bezos the world's wealthiest person.

By the end of the decade, Amazon's profits will balloon ... as revenues overwhelm costs and investments. That's the tricky part for long-term investors. ... The next downturn for Amazon stock might not come when profits disappoint, but when they become too obvious.

DRIVING THE WEEK - Trump meets with Crown Prince Muhammad bin Zayid Al Nuhayyan of Abu Dhabi on Monday ... Turkish President Recep Tayyip Erdogan visits on Tuesday and Colombian President Juan Manuel Santos on Thursday. Trump departs for his first foreign trip on Friday.

Can the president, famous for his homebody ways, pull off a grueling foreign trip without any major blow-ups? (And no, this is not like jetting around to friendly mega-rallies like the campaign) ...

Treasury Secretary Steven Mnuchin testifies before Senate Banking on Thursday at 10:00 a.m. to offer a "domestic and international policy update" ... House Ways and Means Committee has a hearing Thursday at 10:00 a.m. on tax reform ... Ways and Means Committee Chair Kevin Brady will sit down for an interview with M.M. Wednesday evening in DC ... Industrial production at 9:15 a.m. Tuesday expected to rise 0.4 percent.

Next Blog: Jack Ass of the Month, Words of the Month, Dear Rink Rats.

Until next time, Adios

Claremont, California
May 15, 2017

CARTOON OF THE WEEK –The New Yorker Cover

Monday, May 1, 2017

Radio Days

I am listing to the radio more these days; I find it soothing, less busy, and television programming stinks.

My Radio Day begins at 5:25 a.m. – NPR Morning Edition: yes NPR can at times be a tad to the left in political commentary, I find the morning news and stories informative.

6:30 a.m. – 8:30 a.m. – I listen to KUSC 91.5 with Dennis Bartel, a wonderful and entertaining time of the day for radio. The classical music is a nice escape from freeway traffic.

Noon – 3:00 p.m. – It is sports talk time with Christopher Russo, Sirius satellite radio channel 82, the “Mad Dog” has by far the best sports talk. Where most sports talk shows concentrate on the main sport of the day: NBA, NFL, that’s about it. Mr. Russo talks about golf, tennis, hockey, good books, as well as the main sports like MLB, NFL, and NBA.

3:00 – 6:00 p.m. – We end our radio day with KJAZZ 88.1, the Steve Tyrell show at 5:00 p.m. is great cocktail hour listening. The jazz and blues offer a nice end of the day atmosphere at the end of a hectic day.

A great radio channel to listen while traveling on long road trips is Sirius Satellite channel 148, Classic Radio. Half hour segments of great shows from the 1940’s and 50’s like Jack Benny, Bing Crosby, Bob Hope, The Shadow, Sam Spade: big time old school and it is wonderful.


Winning confirmation of Justice Gorsuch: Trump did it fast, with little drama and huge consequence. The win tipped the Court, invigorated conservatives, and bought him credibility with the establishment. It's the president's one achievement so far that will outlast him, regardless of what else unfolds.

Pro-business executive orders and regulatory changes: Nothing lifts a presidency (or increases the chance of reelection) more than a rising economy. Trump's early pro-business rhetoric and assault on regulations has boosted many industries. And the market "Trump bump" has given business a new spring in its step.

Encouraging CEOs to think more systematically about American jobs: Businesses talk openly about trying to "bait" a positive tweet from Trump (or insulate themselves from assault) by announcing factory openings or job expansions. These overtures aren't always all that they seem: Some were already in the pipeline, or may never come to fruition. But he has forced huge companies to reckon with the issue.

Operation Normal I: Installing experienced national-security and economic teams, obviating the fears of some Republicans that a Trump Cabinet would have a bit of a clown-car aura.

Operation Normal II: Post-Flynn, establishing a national-security decision-making process that has produced well-executed policies that have been regarded as sensible by mainstream Republicans. This includes the Syria strike, the embrace of NATO and the China state visit.


No significant new laws: He has full Republican control of Washington — and little to show for it. In retrospect, some White House aides think they screwed up by rushing into health care, and wish they had plunged into tax reform or an infrastructure package.

Little personal growth in office: His loose style, resistance to structure and amorphous views (and loyalties) leave White House aides insecure, and create internal inefficiencies and blind spots. This chaos contributed to the health-care debacle, provoking weeks of public butt-covering and finger-pointing. To this day, many aides tell us the West Wing reality is even worse than is publicly portrayed.

Failure to articulate a theory of the case, foreign or domestic: International allies and Congressional Republicans are left uncertain of what he believes, and opponents have an opening to define the vacuum on their terms.

Inability to get over it: The president hasn't kicked any of his bad campaign habits, all of which complicate governance — score-settling, name-calling, reckless tweeting, petty grievances, and unnecessary shots at allies and others he will one day need to succeed.

Resistance to reaching out to the 54% of 2016 voters who voted for someone else: Trump's low approval ratings make it harder for Democratic leaders on the Hill to make deals with him. Ditto his continued incitement of the Democratic base.

POTUS PLAN B? - President Trump brought his chaos-and-loyalty theory of management into the White House, relying on competing factions, balanced by trusted family members, with himself perched atop as the gut-instinct decider. He now realizes this approach has flopped, and feels baffled and paralyzed by how to fix it.

The chaos dimension has created far more chaos than anticipated. Come nightfall, Trump is often on the phone with billionaire, decades-long friends, commiserating and critiquing his own staff. His most important advisers are often working the phone themselves, trashing colleagues and either spreading or beating down rumors of turmoil and imminent changes.

This has created a toxic culture of intense suspicion and insecurity. The drama is worse than what you read.

POTUS WEEK -  MONDAY: The president will sign a "Law Day" proclamation, drop by a meeting of the Independent Community Bankers Association and have lunch with VP Mike Pence, Secretary of State Rex Tillerson and Defense Secretary Jim Mattis. He's also meeting privately with Tillerson.

TUESDAY: The president will present the Commander in Chief Trophy to the Air Force Academy.

WEDNESDAY: Palestinian President Mahmoud Abbas will be at the White House.

THURSDAY: Trump will return to New York for the first time in his presidency, and will give 
"remarks commemorating the 75th Anniversary of the Battle of the Coral Sea.

SOMETHING TO WATCH -- Will Trump Release the Missing JFK Files? Unless the president intervenes, we'll soon know more secrets about the Kennedy assassination. The nation's conspiracy-theorist-in-chief is facing a momentous decision. Will President Donald Trump allow the public to see a trove of thousands of long-secret government files about the event that, more than any other in modern American history, has fueled conspiracy theories - the 1963 assassination of President John F. Kennedy? The answer must come within months. And, according to a new timeline offered by the National Archives, it could come within weeks. Under the deadline set by a 1992 law, Trump has six months left to decide whether he will block the release of an estimated 3,600 files related to the assassination that are still under seal at the Archives.

WHERE EAGLES DARE - Air Force launches test missile off Central California coast to show nuclear deterrent capability: An unarmed intercontinental ballistic missile was launched just after midnight Wednesday April 26 from Vandenberg Air Force Base as part of an operational test to show the country's nuclear deterrent capability, according to the U.S. Air Force.


Purdue University, a flagship public institution in Indiana, is jumping into online education by buying for-profit Kaplan University with the aim of creating a new, public online university. The highly unusual acquisition will extend Purdue’s reach to more working adults while building an additional revenue stream at a time when state funding is uncertain. Purdue President Mitch Daniels said the school wanted to stay true to its land-grant mission of educating as many people as possible, but he recognized it couldn’t build an online presence alone. The venture highlights the shifting higher-education market as public funding declines, tuitions rise and college students grow older, busier and more indebted. Purdue said it plans to acquire Kaplan University’s 32,000 students, 3,000 employees and 15 bricks-and-mortar campuses and learning centers from Graham Holdings, which will maintain Kaplan’s international, professional and test-prep businesses.

TOP ALUMNI NETWORKS - College Rank, a website dedicated to evaluating and ranking college programs and experiences, has released its list of the Top 25 Best College Alumni Networks:

1). Colgate University
2). Stanford University
3). Gettysburg College
4). Texas A&M University
5). Virginia Polytechnic & State University

Notables: 12) St. Lawrence University
                    16). Claremont-McKenna College

Two words: “Hoot Owl”.

CAREER SERVICES 101 – Advice for new college graduates: The first would be to treat everybody with respect. The second thing is that it’s not a race. You cannot be CEO overnight. It takes a long time and part of that journey is fun. You have to enjoy the ride.

So don’t be aggressive. You can be assertive, but if you’re overly aggressive, you’re going to ruin your opportunities. Sometimes you have to let the organization pull you.

Some of the best jobs were given to me that I didn’t even realize were coming. Some of the worst jobs I’ve had were when I pushed for them, and I discovered that I wasn’t ready for the job.

FUTURE VALUE - This chart explains why Tesla's stock price is entering insane territory: With a total value of $48 billion, versus $51 billion for GM, Tesla is still considered by Wall Street the number two US automaker — Ford is at $45 billion.

The takeaway: When it comes to the whole massive-market-cap-thing, however, we have been reminded that Tesla sells a remarkably small number of vehicles, relative to the traditional US Big Three: GM, Ford, and Fiat Chrysler Automobiles.

Get smart fast: Tesla bulls argue that Elon Musk's enterprise will be legitimately bigger than GM's and Ford's in the future because electric transportation will displace gas-powered mobility over the next few decades and Tesla has the best brand and largest head start.

Why it matters: A market cap at Tesla's level signals an immense level of investor confidence in Tesla's future execution.

BIRTHDAYS THIS WEEK – Birthday wishes and thoughts this week to Chris Krich ...famous golf swing and leader; Daniel Day-Lewis (60) Travis City, Michigan; Al Pacino (77) Southampton, N.Y.; Jerry Seinfeld (63) Manhattan, N.Y.

HISTORY IN PICTURES - Ralph Lincoln: 11th Generation Lincoln (creepy).

A SHULTZ HOUR - When George Shultz was secretary of state in the 1980s, he liked to carve out one hour each week for quiet reflection. He sat down in his office with a pad of paper and pen, closed the door and told his secretary to interrupt him only if one of two people called: "My wife or the president," Shultz recalled.

Shultz, who's now 96, says that his hour of solitude was the only way he could find time to think about the strategic aspects of his job. ... And the only way to do great work, in any field, is to find time to consider the larger questions.

THE SUMMER WHITE HOUSE -- Goodbye, Mar-a-Lago, hello, Bedminster: President Donald Trump's repeated weekend jaunts away from Washington have caused nonstop headaches for his South Florida neighbors this winter. But once his exclusive seaside retreat at Mar-a-Lago closes for the season, Trump is expected to shift his weekend plans north, to his Trump National Golf Club in Bedminster, New Jersey - and bring with him all the chaos that comes with being a preferred presidential destination.

RINK RATS AT THE MOVIES - A surprisingly fascinating documentary, "Obit," which last week began a two-week run in New York, calls artful death notices "a once-only chance to make the dead live again.

A review in the N.Y. Times, "Commemorating the Dead With Humanity and Delicacy": "We keep nervous, vigilant watch over our mortality and an expedient means for us to mark time is to keep up on who among the prominent, or even casually known, has checked out for good."

"'Obit' shapes the tension and tedium of the writing process itself into engaging narrative drama as it lets us watch the veteran writer Bruce Weber assemble a 2014 obituary of William P. Wilson, a media consultant who provided vital cosmetic and staging tips to the 1960 Democratic presidential candidate John F. Kennedy before his first televised debate with Richard M. Nixon."

See the trailer. ...  @OBITthefilm

BASEBALL PAYROLLS - The Los Angeles Dodgers topped the major leagues for the fourth straight Opening Day but dropped to $225 million, according to a study by The Associated Press. That’s the Dodgers’ lowest payroll since 2013.

Detroit Tigers are second at $199.75 million and the New York Yankees, in the midst of a turn toward youth, third at $195 million. The Yankees had not been outside the top two since 1993, and their Opening-Day payroll had not dropped this low since 2007, according to the AP’s calculations. New York topped Opening-Day payrolls from 1999-2013 before falling behind the Dodgers each year since 2014.

KEEPING SCORE -  World Golf Rankings as of April 27, 2017...

This week / Last week / End 2016 / End 2015
# 1 / 1/ 3 / 8 Dustin Johnson, USA
# 2 / 2 / 2 / 3 Rory McIlroy, N. Ireland
# 3 / 2 / 1 / 2 Jason Day, Australia
# 4 / 4 / 6 / 15 Hideki Matsuyama, Japan
# 5/ 5 / 5/ 1 Jordan Spieth, USA




MLB Game of the Week (May 6) – Houston Astros (16-9) at Los Angeles Angels (14-13), top two teams in the American League West, Angels win 5 – 4.

SCIAC Game of the Week (May 5) – SCIAC Softball tournament, round 1: Chapman University Panthers (20-18) at University of La Verne Leopards (27-11), regular season champs La Verne prevails 6 – 4.

Season to Date (30 - 16)

MARKET WEEK – On the first day of May today, the stock market is coming off strong monthly gains. In fact, the Dow and S&P were higher for the fifth month out six in April. The Nasdaq logged its sixth consecutive monthly advance.

Investors are hoping the old Wall Street cliche "sell in May and go away" won't apply this year. In fact, the Dow, S&P 500, and Nasdaq have not fallen in May since 2012.

In advance of Friday's March jobs report, the new month kicks off with March personal income and spending at 8:30 a.m. ET. The ISM's April manufacturing index and the government's March construction spending are out at 10 a.m. ET.

The Fed holds its two-day May policy meeting starting tomorrow. The market does not expect an interest rate hike this month, but the probability for a move at the June meeting is about 63 percent.

DRIVING THE WEEK - Treasury Secretary Steve Mnuchin speaks this morning at Milken at 10:45 a.m. EST ... Trump drops by the ICBA meeting today at 11:00 a.m. ... Palestinian President Mahmoud Abbas visits the White House on Wednesday ... Trump returns to New York for the first time in his presidency on Thursday and will give "remarks commemorating the 75thAnniversary of the Battle of the Coral Sea."

House Ways and Means Committee Republicans today continue their two-day policy meeting in the Longworth House office building on Capitol Hill on tax reform ... Senate Banking has a hearing Tuesday at 10:00 a.m. on "Examining the U.S.-EU Covered Agreements" ... Senate Budget Committee has a hearing at 10:30 a.m. on Wednesday on the economy ... House Financial Services expected to mark-up the CHOICE Act on Tuesday ...

FOMC announcement Wednesday at 2:00 p.m. not expected to include any changes ... April jobs report Friday at 8:30 a.m. expected to show a gain of 190K with unemployment at 4.6 percent and wages up 0.3 percent .

Next Blog: Jack Ass of the Month, Words of the Month, Dear Rink Rats.

Until next time, Adios

Claremont, California

May 1, 2017

CARTOON OF THE WEEK –Paul Noth, The New Yorker