Monday, December 29, 2014

This camel verse.

This week's Bloomberg Businessweek announces the issue's theme of "good business" with this cover.  You probably can't see it, but in the lower right hand corner is the scripture reference: Matthew 19:24.  "Again I tell you, it is easier for a camel to go through the eye of a needle than for someone who is rich to enter the Kingdom of God," the third page of the magazine announces in very large letters.

The fourth page of the issue, in addition to setting forth a table of contents, has a column entitled "Cover Trail" on "How the cover gets made."  There is a sort of dialog there between two people, one of whom proposes the cover and its scripture and the other of whom never heard of the scripture, to the consternation of the person making the proposal.  The ignoramus states, "I was Raised Roman Catholic, went to church and Sunday school every week, and also went to a Jesuit high school where I had religion class all four years, and I still have never heard this camel verse."  The proposer states, "Something tells me you paid zero attention to any of those things."  "Fine, you win," answers the ignoramus.  "Joyeux Noel!"

I don't really think its about winning.

Saturday, December 13, 2014

Movie Recommendation: "Everlasting Moments"

Carol and I viewed this film on Amazon Prime last night.  Wonderful and, in a way, so counter-cultural in its values, especially now.

UPDATE:  Here is Roger Ebert's review. (Thanks, Carol.)

Thursday, December 04, 2014

"Grow Your Savings" - What a Joke

Carol pointed out an ad in this week's Gazette by Compass Financial Federal Credit Union (headquarters, Medley, FL) which trumpets "Grow Your Savings" and features a "Special 15 month CD 1.10% APY" with a "Minimum Deposit of $25,000."

The Inflation rate for the 12 month period ending October 31, 2014 was 1.7%.  If that should be the rate going forward, then there would be a negative actual return on that CD of -.4%.  But that's not all.

The 1.10% that the CD would "earn" is subject to the income tax.  Let's assume one is in a 25% bracket.  After taxes, then, the rate is .825%.

Now add in the inflation, and the negative return is -1.225%.

If one hides the cash in his mattress, the negative return is -1.7%, so there is a bit of an advantage to the CD.
But you are hardly growing your savings.

Thus, the stock market booms. Vanguard's 500 Index Fund (VFIAX) returned 16.81% for the 12 month period ending November 30, 2014.

Our nest egg is invested 60% in stocks and 40% in bonds.  Even our trusty investment adviser is now suggesting we increase the allocation to stocks, because the fixed-income sector is paying so poorly and the equity sector so well.  He's late to that party, obviously.  Does his arrival presage a stock market bust?

College Football: But Money is the Issue

Normally, money isn’t an issue at Florida, but the [UF]UAA could be on the hook for nearly $14 million — Muschamp’s and McElwain’s buyouts — before the Rams coach ever begins roaming the sidelines for the Gators. 

-from this morning's Miami Herald.  Muschamp is the UF coach that the Gators just fired.  McElwain is the Colorado State coach the Gators want.  To make this change, the Gators must pay Muschamp $7.5 million and Colorado State about $6.5 million.  That's a bump in the road that the Gators are grappling with today.

To think that the players can't even sell their autographs without bringing down the wrath of the NCAA.

Read more here: