Some End of Week Thoughts

1. With oil at $35/barrel why has the price of gasoline in maine stalled at $1.71. The last time oil was this price, gas was $1.25/gal.
2. From a buyer standpoint it seems that immigrants are leading the way for business acquisitions. "Regular" Americans that I talk to do just don't want to work--and certainly not blue collar jobs. Most are looking for a business that they can have someone manage while they collect pay.
3. I'm on Facebook after years of having various myspace accounts. It's nice to reconnect with old friends.
4. I wonder every year, at about this time, why I'm still in Maine! Cold winters are just miserable. But then, like every year, spring, summer and fall make me wonder why I would want to be anywhere else.
5. Reading LeCarre's George Smiley stories. Pretty dry so far.
6. Lots of small boutique shops closing in the Old Port.
7. Pondering a reunion of old NECN staff....

MIM's has closed

hmm...It's almost time to re-open Hanson Bros. Seafood/Cafe, and that seems the perfect place.

Neal Stephenson

For those that have not heard of Neal Stephenson, go to the local bookstore or get on Amazon and check it out. A cross between Umberto Eco and William Gibson, Neal writes historical fiction with an element of mathmatics and economics. I would first recommend Cryptonomicon, which deals with WWII code breaking, treasure hunters, sovereign data banks, and the history of early computing.

However is greatest work in the Baroque Cycle which details the emergence of the financial markets during the 1600's and the development of the scientific method through intertwining tales of historic persona. How the guy ever did the research and wrote the 9 books(3 volumes of 1000+ pages) is beyond me. His most recent book is Anathema.

Net Metering and Distributed Micro Generation

have to write this later!

Big 3 Auto Bailout

Just a quick idea on the Big 3 auto bailout. Rather than give a large loan package to the companies themselves, there may be a better way to respond. First the government should purchase a large stake in the companies to gain control of management and force a new strategic vision. That would cost $2-$5b in stock purchases. Second, rather than loan the companies $30b+ with no guarantee of a payback, no guarantee of fundamental change, and the appearance of rewarding failure, use the money to offer a $10,000 rebate per new Big 3 car purchase on vehicles that meet at least a 24mpg fuel rating. This would have a three fold effect:

It would stimulate demand for Big 3 products and boost sales immediately.
It would benefit consumers who need to make a new car purchase or want to shift into a more fuel efficient vehicle and stimulate consumer spending.
Motivate lenders to make auto loans since the rebate would reduce the loan to value ratio.

All stakeholders would benefit: the Big 3 would benefit from increase sales and moving current inventory, lenders would have a relatively safe market to make loans and earn a return, consumers would be able to buy a fuel efficient American automobile at a discount, and the government would benefit from a increase in the share value it’s stock purchase.

If the entire $25b was spent on $10k rebates, that would amount to $60-$75b in auto sales with on an average of a $25k vehicle price.

It just seems to me that throwing billions or hundreds of billions at companies and hoping for a trickle down effect isn't really working. We are still talking about relieving home owners who are facing foreclosures...wasn't the financial bailout supposed to address that? Top down economic stimulus is a failing model...bottom up stimulus and incentives directly benefit americans and if done properly will trickle up.