This is essentially a user-based tax. Those that travel more and put more wear and tear on the roads pay a higher amount. Now, I think that a bus wears down a road more than a car so the tax needs to be higher on diesel vehicles. I think it is but I am not sure about that.
The bottom line is that every study seems to indicate we have SIGNIFICANTLY underinvested in our countries infrastructure. Our gas taxes are some of the lowest in the industrialized world so why not increase taxes. This is a NO BRAINER tax that people should just suck up and deal with.....and I HATE higher taxes!
Dan Ross
http://www.danross.info/
Showing posts with label U.S. economy. Show all posts
Showing posts with label U.S. economy. Show all posts
Wednesday, January 7, 2009
Tuesday, December 16, 2008
From an E-mail I received re: U.S. manufacturing and its importance to the U.S. Economy
Have you ever received this e-mail? It goes like this....
Joe Smith started the day early having set his alarm clock (MADE IN JAPAN) for 6am while his coffeepot (MADE IN CHINA) was perking, he shaved with his electric razor (MADE IN HONG KONG). He put on a dress shirt (MADE IN SRI LANKA), designer jeans (MADE IN SINGAPORE) and tennis shoes (MADE IN KOREA). After cooking his breakfast in his new
electric skillet (MADE IN INDIA) he sat down with his calculator (MADE IN MEXICO) to see how much he could spend today. After setting his watch (MADE IN TAIWAN) to the radio(MADE IN INDIA) he got in his car (MADE IN GERMANY ) filled it with GAS (from Saudi Arabia) and continued his search for a good paying AMERICAN JOB. At the end of yet another discouraging and fruitless day checking his Computer (Made In Malaysia ), Joe decided to relax for a while. He put on his sandals (MADE IN BRAZIL) poured himself a glass of wine (MADE IN FRANCE ) and turned on his TV (MADE IN INDONESIA), and then wondered why he can't find a good paying job in AMERICA .
My Counterargument: We don’t manufacture ANYTHING anymore. Nowhere above does it say that the alarm clock, tea pot, griddle, etc would be 2x-3x as expensive if it was made here. Heck, Joe wouldn’t be able to afford all those things if it weren’t for global manufacturing :)
We DESIGN/ENGINEER the new technology for the computers here (higher value-add). We design the “chic look” and then sell the computers (since relationships are key) but we don’t do items like MANUFACTURE or MAINTAIN SERVICE as those are outsourced to LOW cost centers. Why? Because the customer doesn’t give a crap where the computer was made as long as the quality of the product is comparable to what they were getting before. There isn’t much “proprietary” building/technology in a computer. Most of the components are made by someone else so it becomes a game of who can sell the most units (to leverage pricing with suppliers) and produce the product at the lowest price (to squeeze out low to medium sized competitors). Is the customer willing to pay a premium for a U.S. built computer? I don’t think so…
That is EXACTLY why everything got outsourced. So we could buy all this stuff that we might not need, on credit with borrowed money, to support workers overseas:)
Now customers are STARTING to care about where their customer service comes from as Dell recently brought customer service back from India after getting so many complaints.
Dan
Joe Smith started the day early having set his alarm clock (MADE IN JAPAN) for 6am while his coffeepot (MADE IN CHINA) was perking, he shaved with his electric razor (MADE IN HONG KONG). He put on a dress shirt (MADE IN SRI LANKA), designer jeans (MADE IN SINGAPORE) and tennis shoes (MADE IN KOREA). After cooking his breakfast in his new
electric skillet (MADE IN INDIA) he sat down with his calculator (MADE IN MEXICO) to see how much he could spend today. After setting his watch (MADE IN TAIWAN) to the radio(MADE IN INDIA) he got in his car (MADE IN GERMANY ) filled it with GAS (from Saudi Arabia) and continued his search for a good paying AMERICAN JOB. At the end of yet another discouraging and fruitless day checking his Computer (Made In Malaysia ), Joe decided to relax for a while. He put on his sandals (MADE IN BRAZIL) poured himself a glass of wine (MADE IN FRANCE ) and turned on his TV (MADE IN INDONESIA), and then wondered why he can't find a good paying job in AMERICA .
My Counterargument: We don’t manufacture ANYTHING anymore. Nowhere above does it say that the alarm clock, tea pot, griddle, etc would be 2x-3x as expensive if it was made here. Heck, Joe wouldn’t be able to afford all those things if it weren’t for global manufacturing :)
We DESIGN/ENGINEER the new technology for the computers here (higher value-add). We design the “chic look” and then sell the computers (since relationships are key) but we don’t do items like MANUFACTURE or MAINTAIN SERVICE as those are outsourced to LOW cost centers. Why? Because the customer doesn’t give a crap where the computer was made as long as the quality of the product is comparable to what they were getting before. There isn’t much “proprietary” building/technology in a computer. Most of the components are made by someone else so it becomes a game of who can sell the most units (to leverage pricing with suppliers) and produce the product at the lowest price (to squeeze out low to medium sized competitors). Is the customer willing to pay a premium for a U.S. built computer? I don’t think so…
That is EXACTLY why everything got outsourced. So we could buy all this stuff that we might not need, on credit with borrowed money, to support workers overseas:)
Now customers are STARTING to care about where their customer service comes from as Dell recently brought customer service back from India after getting so many complaints.
Dan
Friday, December 5, 2008
Dow Jones bottom in? Cramer seems to think so....
I've quoted and tended to agree with Jim Cramer from MadMoney (CNBC show) for quite some time now re: this market downturn.
I have to disagree with him though re: this downturn being done. Until I see the S&P 500 not get pummelled by the pending convergence of the moving averages in the weekly charts (bottom chart) I won't buy into it. We should have a pretty good idea re: support for the S&P 500 by the end of December when the 10 day moving average and the price levels get close to each other.
The daily charts seem to indicate that support is being formed and that we are establishing a base of support. I would tend to agree with Cramer re: market redemptions potentially being at a peak now but I am NOT sold re: future profit taking occurring. I think people are investing ALOT less in the market today and have re-adjusted their allocations into equities. I don't think the upside is there anymore and I think A TON of leverage has been removed by the investment banks / banks that should limit the upside in the short-term. Just my 2 cents.
http://link.brightcove.com/services/link/bcpid1243645856/bctid3908038001
I could see the market going lower as unemployment soars, spending STOPS altogether and consumers TRY to re-build their balance sheets.
Here is recent news that I've read:
Today alone 20k job layoffs were announced. AT&T was 12k of the 20k alone.
http://biz.yahoo.com/ap/081205/financial_meltdown.html
http://news.yahoo.com/s/nm/20081201/bs_nm/us_finance_research_oppenheimer
http://www.cfo.com/article.cfm/12668072/4/c_12671474?f=MagazineMonthly120108
Auto sales are off 30% + in November.....I don't see these numbers improving ANYTIME soon....If the government approves a bailout the U.S. auto companies will CHEW through that $25 to $34 billion so fast you will be STUNNED. With sales off 30% + they need to go into Chapter 11 and re-structure FAST. Cut factories, cut lines of cars that aren't selling, layoff workers, re-negotiate contracts, etc. Did you know that there is more health care costs in a GM car than steel costs? True fact I recall from my days as a research analyst....
http://news.yahoo.com/s/ap/20081202/ap_on_bi_ge/auto_sales;_ylt=AmmzGDW65LZvc0aLKh.yF_OyBhIF
Abercrombie and Fitch's announced today that comp. store sales were down 28% year-over-year (Y-Y). Kohls was off 17%, JCPenney off 10%, Macys off 10%, etc. It is a bloodbath out there right now in retail land. Only DEEP discounts are getting customers to the counter. Profits will be HORENDOUS this year and I expect malls to start seeing vacancy rates RISE big time early next year as some retailers close down unprofitable locations or go belly up altogether. Oh, and I hate saying this but I expect alot of retail layoffs in early 2009. Retailers will get through the Christmas selling season and then trim, trim, trim.....
The ONLY company that was up in retail sales year-over-year was WALMART (up 8% from what I recall) as buyers looked for deep discounts at the stores. Heck, Target and Costco, who compete against Walmart and Sams Club, were both off nearly 10% in their comp. store sales.
http://news.yahoo.com/s/ap/20081204/ap_on_bi_ge/retail_sales;_ylt=Aju4RfuKxJlz0bDSrQpMHgCs0NUE
Interesting view of Aeropostale in the video below. Abercrombie and Fitch isn't discounting this season and their comp. store sales were off 28% Y-Y!
Enough depressing news for now....
Dan Ross
http://www.betterbizbooks.com/
I have to disagree with him though re: this downturn being done. Until I see the S&P 500 not get pummelled by the pending convergence of the moving averages in the weekly charts (bottom chart) I won't buy into it. We should have a pretty good idea re: support for the S&P 500 by the end of December when the 10 day moving average and the price levels get close to each other.
The daily charts seem to indicate that support is being formed and that we are establishing a base of support. I would tend to agree with Cramer re: market redemptions potentially being at a peak now but I am NOT sold re: future profit taking occurring. I think people are investing ALOT less in the market today and have re-adjusted their allocations into equities. I don't think the upside is there anymore and I think A TON of leverage has been removed by the investment banks / banks that should limit the upside in the short-term. Just my 2 cents.
http://link.brightcove.com/services/link/bcpid1243645856/bctid3908038001
I could see the market going lower as unemployment soars, spending STOPS altogether and consumers TRY to re-build their balance sheets.
Here is recent news that I've read:
Today alone 20k job layoffs were announced. AT&T was 12k of the 20k alone.
http://biz.yahoo.com/ap/081205/financial_meltdown.html
http://news.yahoo.com/s/nm/20081201/bs_nm/us_finance_research_oppenheimer
http://www.cfo.com/article.cfm/12668072/4/c_12671474?f=MagazineMonthly120108
Auto sales are off 30% + in November.....I don't see these numbers improving ANYTIME soon....If the government approves a bailout the U.S. auto companies will CHEW through that $25 to $34 billion so fast you will be STUNNED. With sales off 30% + they need to go into Chapter 11 and re-structure FAST. Cut factories, cut lines of cars that aren't selling, layoff workers, re-negotiate contracts, etc. Did you know that there is more health care costs in a GM car than steel costs? True fact I recall from my days as a research analyst....
http://news.yahoo.com/s/ap/20081202/ap_on_bi_ge/auto_sales;_ylt=AmmzGDW65LZvc0aLKh.yF_OyBhIF
Abercrombie and Fitch's announced today that comp. store sales were down 28% year-over-year (Y-Y). Kohls was off 17%, JCPenney off 10%, Macys off 10%, etc. It is a bloodbath out there right now in retail land. Only DEEP discounts are getting customers to the counter. Profits will be HORENDOUS this year and I expect malls to start seeing vacancy rates RISE big time early next year as some retailers close down unprofitable locations or go belly up altogether. Oh, and I hate saying this but I expect alot of retail layoffs in early 2009. Retailers will get through the Christmas selling season and then trim, trim, trim.....
The ONLY company that was up in retail sales year-over-year was WALMART (up 8% from what I recall) as buyers looked for deep discounts at the stores. Heck, Target and Costco, who compete against Walmart and Sams Club, were both off nearly 10% in their comp. store sales.
http://news.yahoo.com/s/ap/20081204/ap_on_bi_ge/retail_sales;_ylt=Aju4RfuKxJlz0bDSrQpMHgCs0NUE
Interesting view of Aeropostale in the video below. Abercrombie and Fitch isn't discounting this season and their comp. store sales were off 28% Y-Y!
Enough depressing news for now....
Dan Ross
http://www.betterbizbooks.com/
Tuesday, November 25, 2008
"Troubled Bank" soar from 117 to 171 says FDIC
http://news.yahoo.com/s/ap/20081125/ap_on_bi_ge/problem_banks;_ylt=AkNjrGxzkLUaZzJaKgEk9u.s0NUE
NEW YORK – The Federal Deposit Insurance Corp. says its list of problem banks, those considered to be in trouble, shot up to 171 during the third quarter. That's up nearly 50 percent from 117 in the second quarter, and the highest number since late 1995.
The FDIC also says commercial banks and savings institutions suffered a 94 percent drop in third-quarter profits to $1.7 billion from $27 billion in the same period last year. Except for the fourth quarter of 2007, it was the lowest quarterly profit since the fourth quarter of 1990.
The report is yet another sign of growing troubles in the U.S. banking industry. Late Sunday, Citigroup Inc. got a government backstop for $306 billion worth of mortgages and other assets. On Tuesday, the Federal Reserve agreed to buy up to $600 billion in mortgage-backed assets.
Dan Ross
http://www.betterbizbooks.com/
NEW YORK – The Federal Deposit Insurance Corp. says its list of problem banks, those considered to be in trouble, shot up to 171 during the third quarter. That's up nearly 50 percent from 117 in the second quarter, and the highest number since late 1995.
The FDIC also says commercial banks and savings institutions suffered a 94 percent drop in third-quarter profits to $1.7 billion from $27 billion in the same period last year. Except for the fourth quarter of 2007, it was the lowest quarterly profit since the fourth quarter of 1990.
The report is yet another sign of growing troubles in the U.S. banking industry. Late Sunday, Citigroup Inc. got a government backstop for $306 billion worth of mortgages and other assets. On Tuesday, the Federal Reserve agreed to buy up to $600 billion in mortgage-backed assets.
Dan Ross
http://www.betterbizbooks.com/
Sunday, November 23, 2008
Sunday, August 3, 2008
U.S. $$ vs. Euro - 10 year Chart
Interesting Chart of the Euro vs. the U.S. Dollar.
Back in 2001 each U.S. $$$ was worth nearly 1.2 Euros. Today, each U.S. Dollar is worth about .70 Euros.
That is what happens when you run deficits year after year after year after year, with no prospect of things improving. At some point the U.S. gov't has to stop the insanity because inflation is now creeping into the pocketbooks of Americans and people throughout the world as most commodities are priced in U.S. Dollars. So, as the $$$ drops EVERYTHING gets more expensive to us and to many foreigners as well.....Not all of them though :)
Back in 2001 each U.S. $$$ was worth nearly 1.2 Euros. Today, each U.S. Dollar is worth about .70 Euros.
That is what happens when you run deficits year after year after year after year, with no prospect of things improving. At some point the U.S. gov't has to stop the insanity because inflation is now creeping into the pocketbooks of Americans and people throughout the world as most commodities are priced in U.S. Dollars. So, as the $$$ drops EVERYTHING gets more expensive to us and to many foreigners as well.....Not all of them though :)
Dan Ross
Sunday, July 20, 2008
Vegas going into the Toilet - Another disturbing datapoint
I've been stating for awhile (Feb & April posts) that I expected Vegas to really get hit by this consumer slowdown. It seemed to me, the last two times I have gone, that it was increasingly more and more expensive to go there and nothing was free anymore. Hotels weren't cheap, cheap dining options were dwindling, freebies (comps) were down, etc. Don't get me wrong, I think there are tons of cool new options but, as their costs are higher than historic levels, they pass it along so they can make $$$.
Here is some supporting data
http://www.lasvegasvegas.com/
Nevada gaming is seemingly in a freefall, earning 15.2 percent less in May 2008 than in May 2007. Put another way, it's the worst May in 10 years. The decline is across the board, with the Strip at 16.4 percent less, downtown at 17.3 percent less, Mesquite at 3.2 percent less, North Las Vegas at 29.4 percent less, and Boulder Strip at a whopping 30.2 percent less.
Gambling on tables and slots were shown to be down approximately the same amount, at 15.7 and 15.1 percent, respectively.
In table games, blackjack was down 26.2 percent, craps was down 7.3 percent, roulette was down 27.7 percent, and baccarat was down 0.6 percent.
The downturn also equates to less tax money going to the state, almost $19 million less. Either taxes go up or spending gets cut...
Dan Ross
http://www.BetterBizIdeas.com
Here is some supporting data
http://www.lasvegasvegas.com/
Nevada gaming is seemingly in a freefall, earning 15.2 percent less in May 2008 than in May 2007. Put another way, it's the worst May in 10 years. The decline is across the board, with the Strip at 16.4 percent less, downtown at 17.3 percent less, Mesquite at 3.2 percent less, North Las Vegas at 29.4 percent less, and Boulder Strip at a whopping 30.2 percent less.
Gambling on tables and slots were shown to be down approximately the same amount, at 15.7 and 15.1 percent, respectively.
In table games, blackjack was down 26.2 percent, craps was down 7.3 percent, roulette was down 27.7 percent, and baccarat was down 0.6 percent.
The downturn also equates to less tax money going to the state, almost $19 million less. Either taxes go up or spending gets cut...
Dan Ross
http://www.BetterBizIdeas.com
Saturday, May 3, 2008
Gas Prices hit new highs - Impact to the Economy??
Evidence shows time and time again that when oil/gas prices hit new highs the economy hits the brakes in a hurry as it reduces disposable income by $20-$40 a week for each American household.
Crude oil now trades at over $112 per barrel and, as the below illustration shows, the cost of one gallon of gasoline has just surpassed the inflation-adjusted peak of 1981. They say this is due to increased global demand, geopolitical tensions, and a declining US dollar. I would say it is primarily due to #1 & #3 with speculation in there as well. If we were to show a concerted effort towards balancing the U.S. Budgets the $$$$ would appreciate and commodity prices would come down quickly
Source: http://Chartoftheday.com <---Check out the free service. Great info. to empower yourself!
Crude oil now trades at over $112 per barrel and, as the below illustration shows, the cost of one gallon of gasoline has just surpassed the inflation-adjusted peak of 1981. They say this is due to increased global demand, geopolitical tensions, and a declining US dollar. I would say it is primarily due to #1 & #3 with speculation in there as well. If we were to show a concerted effort towards balancing the U.S. Budgets the $$$$ would appreciate and commodity prices would come down quickly
Source: http://Chartoftheday.com <---Check out the free service. Great info. to empower yourself!
Dan Ross
Tuesday, April 29, 2008
Ad Spending By Medium - Great info!
Ever curious as to where the $$$ get spent on advertising and how they compare/rank vs. each other? How much do cable companies get vs. Network TV or Radio, etc?
Well, below is a great chart I found at http://marketingcharts.com/ . Check out the site and sign up for their free newsletter full of great info.
Dan Ross
http://BetterBizBooks.com
Foreclosures up over 100% Y-Y - RealtyTrac.com info.
From http://realtytrac.com this a.m., foreclosures are up over 100% Y-Y. Areas in red represent the hardest hit parts of the country with grey areas impacted the least and blue areas next to least. Here in Dallas there are some areas of pink
Dan Ross
http://BetterBizBooks.com
Dan Ross
http://BetterBizBooks.com
Sunday, March 30, 2008
Hilarious Cartoon re: Uncle Sam and Stimulus Package
I was laughing my head off when I received this from a friend the other day.
Dan Ross
http://BetterBizBooks.com
Dan Ross
http://BetterBizBooks.com
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