Thomas Sowell said: "The Constitution of the United States cannot protect us unless we protect the Constitution." And it is under attack. I just read a Wall Street Journal Op/Ed that the Federal Governments Justice has just lost their 15th lawsuit against States, private citizens. Whatever they can't get through Congress they implement by fiat or by ignoring the current law and court edicts, like the moratorium on drilling in the gulf. It is a sad day, actually many days to see these thugs destroy our country.
That's it for now.
Wade
Saturday, September 1, 2012
Tuesday, August 21, 2012
The ups and down of Life
Here are a few thoughts on the ups and downs of life
_____________________________________________________________
HEAVEN KNOWS
May the clouds part before you on your way.
May the sun brighten your path everyday.
And when you're alone and face the night,
May the weight on your mind be light.
We have had pleasures . . . and treasures,
There were so many and many were ours.
The sun rises, the sun sets,
And life is as complex as it gets.
Anxiously running to a place we'd rather not go,
Wondering and worrying because we do not know.
Our strength does wax and wane,
And we feel out of control again.
We must bow our heads again,
So we can lift our chins, and begin.
Our connection to Diety, sometimes strong,
Is the one connection that is never wrong.
Heaven knows where to find us,
And Heaven's cause is always just.
While we are in the heat of life's blows,
May we learn what an angel knows.
May the angels lift the ones who fall behind,
And help in the rescue of all mankind.
At all times, Heaven wants to be known,
And is always waiting for our return home.
__________________________________________________
Wade B. Cook
Friday, May 4, 2012
CORPORATE TAXATION
When we think about corporate taxes the field of inquiry becomes muddled with . . . well, mud slung from different political positions. Any discussion has to include a reference to "static" or "dynamic" considerations. Liberals (including myopic bureaucrats in government) primarily use a static model. Conservatives, and other right thinking people, know this presents one falsehood after another. And the problem with these falsehoods is that "computer models" then dictate present and future policies.
Here's a quick example. If taxes are at 20% on $100,000 and the government raises the rate to 30%, they will not take in an extra $10,000. That's static. Life is dynamic. We all make decisions based on our interests. We cut back, we buy tax shelters. We don't expand our businesses. We prolong selling assets. As a result, we contract, the economy contracts. It's not good. And one ugly side-effect is that the government takes in less revenue. Then, the disease of stupidity catches on, and spreads among the Liberal intelligentsia like a contagion and they ask for higher rates--adding more insult.
Real world experiences teach the opposite. I'll tell a personal story. I was taking my 15 year old daughter Carrie to a class. I asked her what she thought of this same scenario. I used the same 20% and 30%. Without being prompted she said, "No, they [the government] won't take in more. People will make less. Businesses won't grow and everything goes down." Oh, the pride of Papa Wade!
Kevin A. Hassett in NATIONAL REVIEW magazine put it this way: ". . . the counter intuitive economics of corporate tax reform." It was not counter intuitive to my daughter! It's natural to think in dynamic ways. The problem we face is so many government politicians. But people adapt and adjust. In short, they make better choices for themselves.
Mr. Hassett goes on: "How did we get here? The lion's share of the blame can be pinned on Democrats. They are in such denial on this issue that President Obama's proposed corporate tax 'reform' actually would increase the taxes paid by U.S. corporations."
True, and reality must check itself at the door of reason. Lower tax rates mean an expansion of the economy. This expansion is growth. Growth is profits, jobs, a better standard of living, and all things good. Growth seems anathema to liberals.
We now have the highest corporate tax rate in the world (of all economically developed countries). The world generally gets smart. They too adjust and adapt. "The change came after an explosion of academic literature that identified clear links between lower corporate rates and economic growth." (Ibid., Hassett)
And here's the rub: Studies conclude that labor - the working people - get much if not all of the corporate tax. And the counter intuitive and comical (if the results were not so pathetic) aspect to all of this is that lower rates (broad-based and permanent) would benefit workers more than corporations. The President's economic illiterate policies are destructive and recessionary.
Here's a quick example. If taxes are at 20% on $100,000 and the government raises the rate to 30%, they will not take in an extra $10,000. That's static. Life is dynamic. We all make decisions based on our interests. We cut back, we buy tax shelters. We don't expand our businesses. We prolong selling assets. As a result, we contract, the economy contracts. It's not good. And one ugly side-effect is that the government takes in less revenue. Then, the disease of stupidity catches on, and spreads among the Liberal intelligentsia like a contagion and they ask for higher rates--adding more insult.
Real world experiences teach the opposite. I'll tell a personal story. I was taking my 15 year old daughter Carrie to a class. I asked her what she thought of this same scenario. I used the same 20% and 30%. Without being prompted she said, "No, they [the government] won't take in more. People will make less. Businesses won't grow and everything goes down." Oh, the pride of Papa Wade!
Kevin A. Hassett in NATIONAL REVIEW magazine put it this way: ". . . the counter intuitive economics of corporate tax reform." It was not counter intuitive to my daughter! It's natural to think in dynamic ways. The problem we face is so many government politicians. But people adapt and adjust. In short, they make better choices for themselves.
Mr. Hassett goes on: "How did we get here? The lion's share of the blame can be pinned on Democrats. They are in such denial on this issue that President Obama's proposed corporate tax 'reform' actually would increase the taxes paid by U.S. corporations."
True, and reality must check itself at the door of reason. Lower tax rates mean an expansion of the economy. This expansion is growth. Growth is profits, jobs, a better standard of living, and all things good. Growth seems anathema to liberals.
We now have the highest corporate tax rate in the world (of all economically developed countries). The world generally gets smart. They too adjust and adapt. "The change came after an explosion of academic literature that identified clear links between lower corporate rates and economic growth." (Ibid., Hassett)
And here's the rub: Studies conclude that labor - the working people - get much if not all of the corporate tax. And the counter intuitive and comical (if the results were not so pathetic) aspect to all of this is that lower rates (broad-based and permanent) would benefit workers more than corporations. The President's economic illiterate policies are destructive and recessionary.
Monday, April 9, 2012
EASTER
April 8, 2012
I love the Easter season. I love everything about it. Today, Sunday is just beautiful out. The sky is a deep blue and the wind is only blowing slightly. When it picks up a bit it brings a cold chill.
I wonder if the weather was such in the Judean desert so long ago. I can't but imagine that the desert flowers were in bloom in all their simple, yet regal majesty. Spring, Easter, a new hope, a renewing and a refreshing.
In church today the scriptures once again exploded in meaning. Again my heart was touched. I know that my Redeemer lives. I know that his death and resurrection brought about because of His great and gracious love for us is unfathomable. Yet, I marvel and know because of our Messiah that we will be reconciled to God, the Father.
He came to bring us home.
Sincerely, Wade
I love the Easter season. I love everything about it. Today, Sunday is just beautiful out. The sky is a deep blue and the wind is only blowing slightly. When it picks up a bit it brings a cold chill.
I wonder if the weather was such in the Judean desert so long ago. I can't but imagine that the desert flowers were in bloom in all their simple, yet regal majesty. Spring, Easter, a new hope, a renewing and a refreshing.
In church today the scriptures once again exploded in meaning. Again my heart was touched. I know that my Redeemer lives. I know that his death and resurrection brought about because of His great and gracious love for us is unfathomable. Yet, I marvel and know because of our Messiah that we will be reconciled to God, the Father.
He came to bring us home.
Sincerely, Wade
Wednesday, February 29, 2012
BOOK REVIEW - "SHOOTING STARS"
SHOOTING STARS BOOK---SET TO BLAST OFF.
Evil has a new name. It's Gershon. Far, Far Away in the Zodiacs, a political and economic common weal of twelve independent constellations, this evil and treacherous maniac is accumulating power. He does so by robbing people of their freedom with lies and sophistry. Then when people and other sentient beings realize they've been duped and turn back to freedom, he, along with his evil minion squash them---destroying, killing, enslaving them in horrible ways.Upon his rise to power, the last of the Royal Zodian line went into hiding, even sending off for safety their Prince and his Princess from Vega, and their baby daughter, Stella. Together this marriage formed an alliance of the Summer Triangle, but before this freedom-friendly and powerful alliance could take effect, Gershon had already subverted the twelve stewards. The war raged on and Gershon would not give up his devious and insidious plans to destroy the last vestiges of the Royal Family.
Stella is now a young woman, a teenager exactly, who was hidden away and protected from all of this. And, she had a brother, the new Prince, who Gershon knew nothing of. Now alone, without the guidance of their parents, they learn from Maximus, their protector, of their heritage, royal gifts and destiny---if they choose to accept it. One such gift is to travel as SHOOTING STARS. This transport is faster than the speed of light---it is travel at the speed of thought.Leslie Hodgson, the author of this compelling book, builds on this and winds these two teenagers through their learning trials, has them meet and befriend a stately Winged Horse named Arrow from Pegasus, and Helios, a Dragon from the constellation Draco.
Gershon is not just waiting for them, but is luring them into a trap---to use them for his evil designs or to kill them. Millions will die, and these young people have to grow up fast. As in all ages and in all places the war between tyranny and liberty rages on. The costs are dear. SHOOTING STARS is a page-turning, riveting novel of loss and triumph. You'll feel like you're soaring though the galaxies with Isaac and Stella.Now available at Amazon.com. Shooting Stars, by Leslie Hodgson
Option Pricing and Covered Calls
I want to write in response to one of the blog-site followers, Erin Shabowitsky. She was concerned that there are not too many good covered calls right now. I say yes, especially if you want more than 2% a month cash returns.
Why? The reasons are varied, so let me try to put some perspective. Stocks climb a wall of worry. As the market has moved higher and higher, the premiums are depressed. The fluff is sucked out of the option price. Remember, "when a stock goes up implied volatility goes down (with call options).
Normally we would see an option on BAC at $8 in the .50 cents to .80 cents range. Not now. The $8 calls are about .15 cents and the April options are not much more, say .30 cents. Virtually all the stocks I check are this way.
"FEAR IS PURE AND POTENT, GREED IS ALWAYS TEMPERED WITH REALITY."
There is too much reality out there. It looks like the market wants to move higher, and in many ways (P/E ratios, EPS, even book value) that would be justified, but it also looks like it needs a short to mid-level correction. I bet on that. Reality will set in and it will back off some. At that time option prices will increase. Will they soar? I don't know, that depends on the amount of the downturn or correction.
Just keep your powder dry. Don't spend your capital, be patient.
Why? The reasons are varied, so let me try to put some perspective. Stocks climb a wall of worry. As the market has moved higher and higher, the premiums are depressed. The fluff is sucked out of the option price. Remember, "when a stock goes up implied volatility goes down (with call options).
Normally we would see an option on BAC at $8 in the .50 cents to .80 cents range. Not now. The $8 calls are about .15 cents and the April options are not much more, say .30 cents. Virtually all the stocks I check are this way.
"FEAR IS PURE AND POTENT, GREED IS ALWAYS TEMPERED WITH REALITY."
There is too much reality out there. It looks like the market wants to move higher, and in many ways (P/E ratios, EPS, even book value) that would be justified, but it also looks like it needs a short to mid-level correction. I bet on that. Reality will set in and it will back off some. At that time option prices will increase. Will they soar? I don't know, that depends on the amount of the downturn or correction.
Just keep your powder dry. Don't spend your capital, be patient.
Sunday, February 26, 2012
The Business of America
Hello my friends. I've been very blessed lately. I've had an opportunity to study the Federalists Papers. In the editors preface, he comments on parts of the papers that deal with commerce, wealth and the like. A most profound statement.
His name is Isaac Kramnick, the editor of the 1987 edition of THE FEDERALISTS PAPERS (In their original content and format), said of Alexander Hamilton's quote in #12: "The prosperity of commerce is now perceived and acknowledged by all enlightened statement to be the most useful as well as the most productive source of national wealth . . . By multiplying the means of gratification . . . it seems to vivify and invigorate all the channels of industry and to make them flow with greater activity and copiousness."
The Business of America is Business. When will liberals learn this? And success at this endeavor and all others is freedom. The battle between Tyranny and Freedom is raging on.
His name is Isaac Kramnick, the editor of the 1987 edition of THE FEDERALISTS PAPERS (In their original content and format), said of Alexander Hamilton's quote in #12: "The prosperity of commerce is now perceived and acknowledged by all enlightened statement to be the most useful as well as the most productive source of national wealth . . . By multiplying the means of gratification . . . it seems to vivify and invigorate all the channels of industry and to make them flow with greater activity and copiousness."
The Business of America is Business. When will liberals learn this? And success at this endeavor and all others is freedom. The battle between Tyranny and Freedom is raging on.
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