Monday, December 23, 2019

Grinch or Santa?

Before we conclude 2019 and the decade, let’s make sure everything is checked off for the holidays:
    Holiday shopping (all online) √
    Papers, Exams, Grades, Meetings, Fantasy √
    Christmas lights/tree/parties √
    Year End Tax Planning (are you kidding)

The big question every year at this time: am I a Grinch or a Santa this holiday season?

The picture tells all – a Grinch. An accumulation of social media, ten cent big shots, POTUS, Detroit professional sport teams, Fox News, MSNBC, CNN, have all taken their toll. Time to hide out for a week: a couple of hockey games, Netflix, Amazon Prime, a great reading list, a few golf days, a number of recommendation letters (yes, I like writing these letters), and no knuckleheads – should do the trick.

SANTA LIST – Two things Santa for this holiday:

1). No more bullies
2). No more cancer, alzheimer’s, or dementia.

A tall order, but anything you can do will be appreciated.

ST. NOWHERE - 20%–25% of U.S. health care spending is wasted annually, according to new research published last week in the Journal of the American Medical Association. That made us go “wow” but also “eh, kinda makes sense,” considering the U.S. spends more than any other country on health care at nearly 18% of GDP.

FYI, the study’s lead author is the chief medical officer of health insurer Humana.

Back to the numbers: At least $760 billion of annual U.S. health care spending is considered wasteful. Breaking that down...

$266 billion is flushed down the toilet on administrative costs, the greatest source of waste.

Pricing failure accounts for $231 billion to $241 billion in waste.

Other ways we’ve managed to throw money down the drain: Over treatment and low-value care, fraud and abuse, and failure of care delivery.

Now that we’ve identified the problem, we can fix it...right? Right?

CAN WE TALK ABOUT RECESSION? - Because these mixed messages are making it really hard to define the relationship. The labor market remains strong and low interest rates have helped stocks—but recent weak economic data has some investors questioning how long this decade's expansion will stick around.

The red flags: Last week, ISM said the U.S. services sector grew at the slowest clip since August 2016, while November’s manufacturing reading was the worst in a decade.

That’s chilled sentiment among execs, who definitely don’t mean it when they say “I’m fine.” Last month, a Duke survey found optimism among CFOs was at a three-year low. Plus… One Fed Bank of New York measure currently suggests there’s a nearly 40% chance of a recession over the next year, the highest likelihood so far in this bull market.

A Bank of America Merrill Lynch survey recently showed recession concerns at the highest point in a decade.

But we haven’t hit deal breaker territory yet. November’s jobs report wasn’t the best, but it still 1) showed the economy adding jobs at a steady rate 2) confirmed unemployment is near multi-decade lows.

We’re still playing wait and see:

Earnings season is in a couple of weeks—analysts expect earnings to have fallen about 4% in Q4. They’ve also lowered expectations for all 11 sectors in the S&P.

Most economists and four out of five dentists agree that the eventual nosedive won’t be as gnarly as the financial crisis. But it will happen...the question is when.

Most of the economic gifts President Donald Trump is going to get for 2020 are already unwrapped and out from under the tree. The Federal Reserve slashed rates and went dark. The phase one China deal is pretty much done. So is the new NAFTA.

That leaves one big question for a recently impeached president as he heads for a dicey reelection bid: What's left to goose markets and the economy beyond what most expect will be a pretty blah 2020?

Even blah — a 2 percent-or-so growth rate with unemployment still near or below 4 percent — could be enough to help Trump overcome a low approval rating and win again. But if he really hopes to romp over the eventual Democratic nominee, he'll probably need markets to keep popping and growth to bubble higher, especially in the industrial Midwest. And it is far from obvious how the United States can get there from here.

MARKET WEEK - The 10-year break-even rate—a gauge of annual inflation expectations derived from the yield differential between the 10-year Treasury note and the comparable inflation-protected security—settled Friday at around 1.79%, according to Tradeweb. That was unchanged from Thursday but up from 1.64% at the end of last month. Bets on higher inflation have gained momentum as investors have grown more confident about the economic outlook.

Travis Kalanick’s ride at Uber Technologies is nearing an end. The co-founder of the ride-hailing giant has sold more than $2.5 billion of stock in the past seven weeks, more than 90% of his stake—a pace that if continued could see him sold out entirely in the coming days. Mr. Kalanick, the former chief executive, was pushed out of that role by investors in 2017.

On this day in 1913, the Federal Reserve Act, authorizing the creation of the Federal Reserve System to monitor the nation’s banks and modulate the money supply, was signed into law by President Woodrow Wilson.

Stocks to Watch: Boeing: The company’s plan to ferry astronauts into orbit faces a three-month delay if it’s required to make a second test flight of its Starliner space capsule, which landed successfully Sunday morning after a curtailed first launch.

Walt Disney: After mixed fan reaction and thumbs-down from most critics, “Star Wars: The Rise of Skywalker” took in an estimated $175.5 million in the U.S. and Canada, the lowest opening of the trilogy produced by Disney.

PG&E: The utility arm of PG&E reached an agreement with several customer advocacy, labor and safety groups that calls for state regulators to allow the company to pass on to consumers some rate increases.

BEST PERFORMING STOCKS OF THE DECADE -

COLLEGE CHRONICLES – Two words on the state of higher education these days: Dysfunctional Mediocrity. Let us all work on this in the coming New Year.

RECORDS – A new personal record was broken this past week; yours truly was cc’d twenty-three times as a “reply all” in an email on a topic I am still trying to figure out the point of the email. Management 101 at it’s very best.

IRS DATA - In the aggregate, the 2018 tax-filing season looked the same as it did the year before, with 79% of taxpayers getting refunds averaging $2,879, down only slightly from 80% and $2,908. But those totals mask some significant variation by income, according to newly released IRS statistics from tax returns filed through October 1.

These preliminary tallies provide the first hard data from the government about the actual refunds, deductions and taxes reported at different income levels in the new system. ... The fresh data shows that while refund statistics barely budged for lower- and middle-income workers, real movement occurred toward the upper end of the income distribution. Average refunds for taxpayers making between $100,000 and $250,000 dropped 10%, while average refunds for those between $250,000 and $500,000 rose by 11%.

TOP FIVE – TOP FIVE BEST AIRPORTS

1. San Diego International Airport (SAN)
2. Phoenix Sky Harbor International Airport (PHX)
3. Portland (Oregon) International Airport (PDX)
4. Hartsfield-Jackson Atlanta International Airport (ATL)
5. Sacramento International Airport (SMF)

BIRTHDAYS THIS WEEK – Birthday wishes and thoughts this week to Christina Coughlin …famous student athlete, Kirk Douglas, St. Lawrence ’39 (103), Jane Fonda (82), Nancy Newman …famous Rink Rats reader, USGA (125).

POLITICS 101 - The House and Senate are out for Christmas.

President Trump will spend the Christmas period at his Mar-a-Lago club in Palm Beach, Florida.

The only event on Trump's public schedule, per a White House official, is that on Tuesday he will join "a video teleconference with members of the military."

THE PRESIDENT’S PARTY - By the summer of 2017, Dave Trott, a two-term Republican congressman from Birmingham Michigan, was worried enough about President Trump's erratic behavior and his flailing attempts to repeal the Affordable Care Act that he criticized the president in a closed-door meeting with fellow G.O.P. lawmakers.

The response was instantaneous — but had nothing to do with the substance of Mr. Trott's concerns. 'Dave, you need to know somebody has already told the White House what you said,' he recalled a colleague telling him. 'Be ready for a barrage of tweets.

Mr. Trott got the message: To defy Mr. Trump is to invite the president's wrath, ostracism within the party and a premature end to a career in Republican politics. Mr. Trott decided not to seek re-election in his suburban Detroit district, concluding that running as anti-Trump Republican was untenable, and joining a wave of Republican departures from Congress that has left those who remain more devoted to the president than ever. ...

Just under four years after he began his takeover of a party to which he had little connection, Mr. Trump enters 2020 burdened with the ignominy of being the first sitting president to seek re-election after being impeached. But he does so wearing a political coat of armor built on total loyalty from G.O.P. activists and their representatives in Congress. If he does not enjoy the broad admiration Republicans afforded Ronald Reagan, he is more feared by his party's lawmakers than any occupant of the Oval Office since at least Lyndon Johnson.

HOLIDAY PARTY CIRCUIT – SPOTTED at the Huntington Library in Pasadena, CA. an alumni reception for St. Lawrence University Southern California alumni: President Bill Fox ’75 and his wife Lynn, Tricia Gomer ’74, Barry and Pat Phelps ’69.

DEMOCRATS: PRE & POST REAGAN DIVIDE - Democratic leaders like [Speaker] Pelosi, Joe Biden, Steny Hoyer and Chuck Schumer were shaped by their traumatic political coming-of-age during the breakup of the New Deal coalition ... and the backlash that swept Democrats so thoroughly from power nearly 40 years ago.

The Ocasio-Cortezes of the world have witnessed the opposite: The way they see it, Democratic attempts to moderate and compromise have led to nothing but ruin. Republicans aren’t the ones to be afraid of.

BEIJING 2022 - Sens. Rick Scott and Josh Hawley have called on NBCUniversal, which has broadcast rights for the Olympics, to refuse to air the 2022 Winter Games in Beijing.

Consider this the opening shot in the struggle between human rights advocates, who believe that a country currently operating concentration camps should not host the Olympics, and the Chinese Communist Party, which will defend its successful bid to host the 2022 games at all costs.

In a letter dated Dec. 19 and addressed to top NBC executives, Scott and Hawley point to China's "abysmal" human rights record.

By agreeing to air the Beijing Olympics, the senators write, NBC is "placing profits over principles and ensuring that China can be accepted into the international system even as it violates its basic rules and tenets."

The lawmakers also warn about China's mass surveillance regime, pointing to recent leaked government documents that reveal how the Chinese security state is using mass data collection for predictive policing and mass detention.

The Chinese Communist Party has built a vast network of detention camps, where it holds over a million Uighur Muslims in a sweeping attempt to stamp out their culture and religion.

Recent leaks of classified Chinese government documents revealing the inner workings of its mass detention camps have galvanized government officials in the U.S. and Europe to ramp up pressure on Beijing.

The run-up to the 2008 Beijing Olympics saw global protests against China's human rights abuses. Expect the 2022 Olympics to generate just as much controversy — though this time, China has far more economic and diplomatic leverage to push back.

COLLEGE FOOTBALL 150 - 1869: College football was born on Nov. 6, 1869, when Rutgers beat the College of New Jersey (now Princeton), 6-4, in a game that looked more like soccer or rugby than modern football.

1880s: In December 1889, an amateur athletics magazine called "The Week's Sports" published the names of 11 college football players — the first-ever "All-America" team.

The concept was created by Walter Camp, aka "Father of American Football." Among his inventions: the line of scrimmage, the system of downs and the scoring system.

1900s: At the turn of the century, questions about violence threatened football's existence, so much so that President Teddy Roosevelt got involved. Numerous rule changes were made, including the 1906 legalization of the forward pass.

In 1903, Princeton and Yale met in the championship. Fortunately for us, Thomas Edison sent a cameraman to film, so we have footage!!

1920s: The 1920s were considered the "Golden Age of Sports" in the U.S. For the first time, large numbers of post-war Americans were willing to pay money to attend sporting events.

Baseball and boxing were king, but college football crowds reached 100,000 fans for the first time and massive new stadiums were constructed to keep up with demand.

1940s: When the U.S. entered World War II, football became an integral part of military training at colleges around the country and resulted in schools like Army and Notre Dame building superpowers.

Military leaders began to emphasize the purported link between college football and military preparation. A Navy commander ... even turned it into a chant: Football! Navy! War! And this spiritual link between football and war ... would prove the salvation of the sport.

The modern era: 1950s: With some of the wartime powers fading, the 50s featured national champions like Maryland, Tennessee, UCLA, Michigan State and Syracuse. Meanwhile, Oklahoma won a record 47 consecutive games.

1960s: In what was dubbed the "Game of the Century," Notre Dame and Michigan battled to a 10-10 tie in 1966. It was only the 10th meeting between teams that were ranked Nos. 1 and 2 in the AP Poll.

1970s: The 70s were all about the wishbone offense and superstar RBs like Tony Dorsett (Pitt), Earl Campbell (Texas), Billy Sims (Oklahoma) and Archie Griffin (Ohio State) — the only two-time winner of the Heisman Trophy.

1980s: This was a decade defined by swagger (it's all about the "U," baby) and scandal (SMU got the death penalty in 1987). And let's not forget Barry Sanders' 1988 campaign — the best individual season ever.

1990s: Three of the first seven years featured split championships — 1990 (Colorado, Georgia Tech), 1991 (Washington, Miami), 1997 (Michigan, Nebraska) — which led to the creation of the Bowl Championship Series (BCS) in 1998.

2000s: Here are some names from the All-2000s team (chosen in 2009): QB Tim Tebow, RB Adrian Peterson, RB Darren McFadden, WR Larry Fitzgerald, WR Michael Crabtree, TE Kellen Winslow, DE Terrell Suggs, LB Patrick Willis, S Ed Reed (full roster).

2010s: Auburn won the 2010 championship, but their rivals in Tuscaloosa have dominated the decade — though Crimson Tide alum Dabo Swinney has built an emerging superpower to the east.

SWAMI’S WEEK TOP PICKS

NFL Football Pick of the Week – Sunday 12/29, 8:20 PM (EDT), NBC:  San Francisco 49ers (12-3) at Seattle Seahawks (11-4). Final game of the season to determine playoff seating in the NFC. 49ers win, 34 – 28. (Season to Date 7-4)

College Football Pick of the Week – Saturday 12/28, 4:00 PM (EDT), ESPN: #4 Oklahoma Sooners (12-1) vs. #1 LSU Tigers (13-0). National semifinal in Atlanta. We like LSU in a rout 42 – 20.

#3 Clemson Tigers (13-0) vs. #2 Ohio State Buckeyes (13-0). National semifinal in Glendale, Arizona. Clemson wins in a rout 38 – 22. (Season to Date 8-3)

College Hockey Pick of the Week – Saturday 12/28, 7:00 PM (EDT), Prime:  #17 Harvard Crimson (6-4-0) vs. #16 Arizona State Sun Devils (10-6-2) at FinePoint Arena, Irvine, California. Harvard takes this one in Southern California, 5 – 3. (Season to Date 1-0)

NHL Pick of the Week – Saturday 12/28, 7:00 PM (EDT)), CBC: New York Rangers (17-14-4) at Toronto Maple Leafs (19-14-4). Original Six game, Leafs are playing better after the departure of Mike Babcock, but the New Yorkers are playing even better of late: Rangers win in Toronto 3 – 2.  (Season to Date 1-0)

2019 Season to Date (52-32)


“PRIS” HARVEY SCHROEDER – It seem every blog these days we remember a friend who has passed. Priscilla Schroeder, known to friends as "Pris," passed away peacefully at home on December 8, 2019, at the age of 85 years. She is remembered as a beloved wife, mother, grandmother, sister, and friend and advocate for many people.

Born in Syracuse, New York, Pris graduated from Nottingham High School and St. Lawrence University. In 1956, armed with her Bachelor of Science degree in Mathematics, Pris became a pioneer in the computer industry working for General Electric in upstate New York. There she met another young mathematician named Harold Schroeder, who became her best friend and life partner for over 61 years. They married in 1958, and daughter Susan arrived in 1962 and son William in 1964. Once her children entered college, Pris re-joined the aerospace industry as a Programmer Analyst Specialist at Rocketdyne and worked there for over 20 years.

Pris loved her alma mater, St. Lawrence University. Serving on the Alumni Council and organizing events in Southern California, and she had tremendous pride being in attendance when her grandson, Christopher graduated from St. Lawrence in May 2018.

A truly remarkable woman, she will always be in my thoughts and prayers.

Next Blog:  Thank God that decade is over.

Until next time Happy Hanukkah, Happy Festivus, Merry Christmas, Happy Kwanzaa

To all our readers from coast to coast, in Canada, South America and Europe, a joyous holiday and much love.

Claremont, California

December 23, 2019
#X-12-401

3,057 words, fifteen minute read

CARTOON OF THE WEEK – The Holidays



RINK RATS POLL – Your favorite holiday?

_____     New Year’s Day
_____     Easter
_____     Fourth of July
_____     Halloween
_____     Thanksgiving
_____     Christmas
_____     Other

QUOTE OF THE MONTH – “Kindness in words creates confidence. Kindness in thinking creates profoundness. Kindness in giving creates love.”
Lao Tzu

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