News & Views 04/02/2014

NEWS
CNN MONEY--- Facebook buys Oculus VR, a virtual reality gaming company, for $2 billion--- "Facebook will pay $400 million in cash, with 23.1 million shares of Facebook common stock valued at $1.6 billion,"

VIEWS
Let me see if I understand this correctly. I start up a company. I sell a whole bunch of people some form of e-paper that doesn't exist in physical form that then says they own shares after paying a whole lot of money. Since I still own a large chunk of the company I then cash a bunch of them out for myself.

Then I borrow cash from the company's line of credit, along with the physically nonexistent e-shares and then trade them for other pieces of nonexistent paper to acquire another company. In other words I've borrowed and reallocated $2 billion worth of somebody else's money. Thusly making the newly acquired company's owners rich too. Meaning I nor they had to spend nor necessarily risk their own money in the process. What a deal!
     Want to buy some shares of LVCI?



NEWS
The Raw Story--- New Alabama food truck regulations prevent local churches from feeding the homeless--- "The new regulations were put in place to protect brick-and-mortar vendors from food trucks."

VIEWS
Alabama didn't think this new regulation out too well. It seems like a simple quick fix. Alas with government nothing is ever quick nor simple.



NEWS
The New York Post--- State launching task force to stop cigarette smuggling, tax evasion--- "This new law-enforcement strategy will help to crack down on these illegal cigarette sales and capture those smugglers who seek to evade the law and rob the state of the revenue it is rightly owed,” Governor Cuomo said."

VIEWS
New York state imposes a tax of $4.35 per pack. New York city another $1.50 on top of that. No this doesn't add up to just $5.85 for taxes alone. We can't forget about the New York state sales tax which is 4% and the New York City sales tax of 4.5%. All of which are computed on the final purchase price after the $5.85 taxes and the actual cost manufacturer and retailer charges. This totals up to between $10.50-$15.00 per pack. Manufactures wholesale them (before taxes) for about $2-$3 a pack.

In short, I suppose it all boils down to this. The government doesn't like it when individuals "rob the state" anymore then smokers like being robbed by the state. Perhaps New York will have a better success rate cracking down on these "smugglers" then they have with their 'war on drugs'.


NEWS
The Daily Mail--- Calvin and Zatera Spencer hit the jackpot with a $1million win in the Powerball lottery earlier this month.--- "Two weeks later, on March 26, they won $50,000 on a Pick 4 game and the following day scored a further $1million prize on a scratch card."

VIEWS
If I ever win I'm going to tell everybody it's the first ticket I ever bought just to piss people off as much as I when I read about couples like them. Course I'll go into hiding first since I can't imagine all the death threats that would be sure to follow, eh?



NEWS
UPI--- Lawmakers grill GM's Mary Barra over ignition switch failure--

VIEWS
The woman only became the CEO in January. The lawmakers treated like it were her personally who made all the bad calls prior to her tenure. Every time lawmakers hold these hearings they conduct themselves like they were appointed to hold some sort of holy tribunal similar in nature to the 'Spanish Inquisitions". Here you have a bunch of legislators who proably have more dirt in their own closets then those they rake over the coals. I seriusly doubt any one of them would be qualified to be CEO of even a small company.

Three things stood out for me. (1) They asked the CEO if she even bothered to read the emails her company submitted to them. She said she didn't explaing there were over 200,000 of them she gave to the panel as requested. Did any one of them read them all either!

(2) One uninformed legislator held up the ignition switch assembly expressing outrage that the part wasn't replaced because it only cost 57 cents. It's amazing how anyone can be really that damn dumb. Ever try changing an ingnition switch? Special tools are needed to deactivate the air bag and remove it before one can even think about removing the center control panel buttons to gain acess to the steering wheel for removal. If this panel member can find anyone who can do the job for 57 cents I suggest she put down the pipe she smoking and write down the address of that mechanic.

(3) Then we have the mother of one of the people killed in a crash we assume was caused by the faulty ignition swtch. We don't know for sure. Because it hasn't gone to trial, we don't know the circumstances which led up to the crash. Assuming she has a case, the mother said she would join the pending class action suit. She stated there's only one thing GM understands and that's taking away a large chunk of their money. Here's a flash... GM isn't going to pull the money out of their butts. The money she wants to take will come out of the pockets of future car buyers and investors pockets when stocks take a temporary hit. They are the ones that will be punished, not GM. Besides GM's bottom line is already getting whacked by having to recall over 2.6 million vehicles.

There's one more little thought I had. You think government investgators and ambulance chasers aren't right now looking into other car manufacturers' ignition switches?

This entire thing has been blown way out of portion. Yes someone getting killed is a big deal, but not as big as this one is being made out to be for both potilical and financial gain. About 13 have allegedly died over the last 10 years from this faulty ignition switch. That's an average of 1.3 per year. However there were 34,080 other motor vehicle deaths in 2012 alone.



NEWS
Mother Jones--- Hobby Lobby's Hypocrisy: The Company's Retirement Plan Invests in Contraception Manufacturers--- "Several of the mutual funds in Hobby Lobby's retirement plan have holdings in companies that manufacture the specific drugs and devices that the Green family, which owns Hobby Lobby, is fighting to keep out of Hobby Lobby's health care policies:"

VIEWS
It appears they can be either for or against birth control depending on how it benefits them. They're argument is they have a right to their religious beliefs under the 1st amendment.

"Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof." I realize I may be out of step with the SCOTUS, but the way I read the 1st amendment, it's as much about protecting religion as it is protecting us from it.

Specifically regarding this 'Hobby Lobby' case. Many religions have no such prohibitions against the use of contraception. By denying employees coverage it could be said they are " prohibiting the free exercise thereof". One may argue back that they are not denying them anything. Employees can still purchase them, but need to do so on their own dime.

A counter argument can be made. There's nothing written in the healthcare law that forces anyone to use them. Therefore the law is not mandating their usage, only that coverage be provided for them. Coverage which is paid in part by the employees themselves. If the company were to pay 100% of the coverage for a employee they might have a argument, but currently it does not.

The company could further argue that the constitution applies only to government, but not private companies. But that would then mean they then would have no right to appeal on the grounds of the 1st amendment. Which would invalidate their whole appeal before the SCOTUS. So this whole case boils down to this. Do companies have the same protections as an individual under the 1st amendment?

I am adamant in my belief they do not. Companies are not individuals nor should they ever be. If it should ever be decided they are we're in for a world of hurt. It would then mean owners of any religion would be freely allowed to impose their will on the people who work for them. Have you ever seen some of these crazy religions and what they require of their followers?

"Congress shall make no law respecting an establishment of religion,". I as a owner would then be free to establish a new religion and declare myself to be any kind of crazy ass religion of my choosing. I would then enjoy the full protection of the U.S. government to impose whatever I want on my employees that my crazy-assed religion required of it's followers. Think about that and all the possible implications it would mean.