Why PowerPoint is Bad

There are a million examples of bad PowerPoint slides, but this one is special. Understanding why it's bad is like unraveling a Mobius Strip. Get to the end, and you're back at the beginning - kind of.

Source: Microsoft Q4 2010 Webcast

Recommendation: Long BP Based on impending fix of Oil Leak

Since the blowout preventer is going to be fixed very soon thanks to this man's work, I'm recommending a strong buy of BP.

Fuermann said his desire to use meditation to activate the blowout preventer -- and his belief that visualization could actually work -- is rooted in his own life experiences and in a global movement called the Intention Experiment.

"I'm very known for fixing things and making things work," Fuermann said, adding that he believes his meditation helped fix a friend's Flip video camera. "I visualize things working and hold the belief that they actually work."

Dwayne Bourgoyne, a deep-water mining expert at the Colorado School of Mines, said Tuesday that he has "never heard of such an attempt to stop an oil spill or any other kind of mechanical failure." But he also conceded that while he is familiar with the known law of physics he is "unfamiliar with the telekinetic potential of meditation." - Boulder Daily Camera, May 4, 2010

I love how the reporter got him to concede that all he knows about are "the law of physics."

The most fascintating news release you'll read this week

"Undisclosed in the marketing materials and unbeknownst to investors, the Paulson & Co. hedge fund... played a significant role in selecting which RMBS should make up the portfolio."

"...after participating in the portfolio selection, Paulson & Co. effectively shorted the RMBS portfolio it helped select by entering into credit default swaps (CDS) with Goldman Sachs to buy protection on specific layers of the ABACUS capital structure. Goldman Sachs did not disclose Paulson & Co.'s short position... to investors."

"The deal closed on April 26, 2007, and Paulson & Co. paid Goldman Sachs approximately $15 million for structuring and marketing ABACUS. By Jan. 29, 2008, 99 percent of the portfolio had been downgraded."

"Investors in the liabilities of ABACUS are alleged to have lost more than $1 billion."

John Paulson, if you recall, was lauded by congress for seeing the crises ahead of time.

Source: SEC Charges Goldman Sachs With Fraud in Structuring and Marketing of CDO Tied to Subprime Mortgages

Company Vision Statement

I only had to take one identifiable word out of this client organization's mission statement. It was hung in a prominent corridor of the client office. It made as about as much sense on the wall as it does here.



Source: Wordle, Client Wall

Future Demand Borrowing, Revisited and Forecasted

This kind of closes my case on future demand borrowing, 2 months later.



Demand won't collapse for another couple of months, due to a) the homebuyer tax credit, and b) the Fed buying mortgage backed securities through March.

But once those two demand stimulants go away.... watch out.

Source: Calculated Risk

Future Demand Borrowing, Revisited

Looks like my forecast on future demand borrowing was borne out.



Source: Rolfe Winkler

"It Flies"

An emotional engineer is a beautiful thing. Well done, gentlemen (and ladies).

"Future Demand Borrowing"

The homeowner tax credit didn't create many new home buyers. 5 out of 6 of them were "borrowed" buyers from 2010-11. The result is that 2009 volumes are higher, but 2010-11 volumes will be more anemic.

You'll hear more about this over the month or two, as November/December closed sales are published as being way down. The leading edge evidence comes from great analysis by Seattle Bubble.



The homebuyer extension is like one more RB&V at 3am when you're wasted; it'll keep you in the groove just a little bit longer, and make the morning after even worse.

Source: NWMLS: Tax Credit Boosts November Closed Sales as Pending Sales Drop Through the Floor

Buying votes for $250/per

January 2009: Social security payments go up by a 5.8% COLA due to increased energy costs.

December 2009: Energy prices drop 30%, so Social Security will go up by 0% (it cannot go down).

Congress/Obama want to thus give every senior $250, total cost $13 billion.

How can any this be anything else other than vote buying?

WASHINGTON (AP) - President Barack Obama called on Congress Wednesday to approve $250 payments to more than 50 million seniors to make up for no increase in Social Security next year. The Social Security Administration is scheduled to announce Thursday that there will be no cost of living increase next year. By law, increases are pegged to inflation, which has been negative this year.

Social Security payments increased by 5.8 percent in January, the largest increase since 1982. The big increase was largely because of a spike in energy costs in 2008.

Inflation has been negative this year largely because energy prices have fallen. Gasoline prices have dropped 30 percent over the past year while overall energy costs have dropped 23 percent, according to the Bureau of Labor Statistics. - AP Oct 14th

Breakfast of Champions

Mrs. Ninja's caloric intake from 6:00am to 3:00pm:

diet pepsi
rest of candy apple
chips
sponge cake