You can always count on me to bring you the flip-side of pretty much anything as I discover it, and real estate flipping is the latest.
We’ve all seen the vast array of offerings on TV—Flip This House, Flip That House, Property Ladder, Sell This House, Stage This House, Real Estate Pros, and all the rest. Now you get to toss the remote and learn from a REAL pro—John T. Reed.
He’s seen these shows too, as well as read a few of the *ahem* literary offerings by the finest of hucksters, and tells the world through his fantastically-improved website just how much bull exists in this industry when it comes to flipping for profit.
He’s a veteran of the real estate industry—he’s been there, done that, and made both profits and mistakes. His wealth of knowledge and advice is available through self-published books and in little bits on his website for free.
Now, for the flipping “flipping” part: What you see on the TV shows is not really flipping at all—it’s a cosmetic facelift. Anybody with an ounce of brains can do that, because it’s just in-depth decorating. There’s not much profit in cosmetics, unless you happen to be Max Factor (or Home Depot in this case).
REAL flipping goes back further in the home’s life than just being mildly run down—to really turn a quick and easy profit, you must buy absolute disasters and make them fixer-uppers. This entails taking on things that would drive any other buyer away screaming from the premises, like bad foundations, lead-based paint, asbestos, lack of central heat and air, and anything else you would never dare to take on yourself for lack of experience and/or perceived expense to solve the issue.
By taking on these projects (or rather calling in pros to do them), you turn a deeply-discounted non-seller into something that so-called flipping sharks would circle around, even if you bought at a 60% discount to the market value, repaired the major flaws, and resold it for a 20% discount to market value. You will have made a quick and dirty 40% profit without having to get your own hands dirty.
(Record screech) “But wait,” you say, “wouldn’t that 40% be lowered by the cost of resolving the major issues that prevented the house from selling in the FIRST place?” Why yes it would, dear reader and thinker, but not by much when compared to what these TV flippers make as their own profit percentages. Reality says that they may make so many thousands of dollars, but their math is incomplete.
Say a guy buys a house for $240k in a $300k neighborhood (a 20% discount, which is really good for fixer-uppers). This means he can spend no more than $60k in remodeling and repairs before he ends up pricing himself out of his own market. If anything major comes up in the demo and remodeling process (termite damage, plumbing issues, electrical problems, foundation issues, etc.), this could easily put him over budget and push his house right out over market value, ensuring a slow and difficult sell.
Notice that he hasn’t even factored in carrying costs (mortgage payments, utilities, outside labor costs, etc.), which all go into his $60k budget, making it a much smaller budget than he realizes and isn’t acknowledging.
The stock market mantra is to buy low and sell high. The real estate mantra is “buy even lower.” This means you’re looking at taking on more and bigger problems than the average homeowner or cosmetic flipper can handle, and that’s where the greatest profit lies.
Back to the TV flipper: Okay, he’s bought the house for $240k in a $300k market, he spends his half his budgeted $60k on actual renovations/repairs, really dolls the place up inside and out, and now he’s ready to sell (the rest of his budget is silently eaten by carrying costs and incidentals). Outside realtors come in, cruise around, look at all his improvements, and value the house at $270k ($300k minus about 10% for the market downturn).
Now his perceived profit has just lost $30k (10%) due to a force he couldn’t control—the market. The selling realtor has to be paid, and that’s another 6% ($16,200 if my math’s right), for a total of 16% off the top (or roughly $46k). The profit before carrying costs (I have no idea what those would be, but budgeted $30k, or half his original renovation budget) is a lousy $16k at minimum (just under 6.5% of the purchase price). You can safely and more easily earn that in a CD or money market account, or invest in the S&P 500 index and make even more!
His profit before carrying costs was $16k, yet his renovation budget was $30k--so where did he make any money? Why did he work so hard to lose over 50% on his supposed "value-creating" renovations? He spent $30k to ultimately end up with $16k, assuming he can sell the house for $270k (the new market value). Do you see the futility in that?
The only DIY improvement that actually pays you back nearly 100% is paint. It also happens to be the cheapest improvement you can make to a house. Non-DIY improvements pay you back even more.
Oh, and let's not forget taxes on this unearned income--$16k @ 15% = $2400, leaving $13.6k or 5% profit from his sale (fewer dollars and lower percentages for higher tax brackets). How long would you have to work at your job to bring home that much money, and which would you rather do?
I don’t know about you, but I certainly refuse to perform the kinds of miracles you see on TV for a lousy 5% profit unless I was moving in. If the TV flippers knew how little they profit, they wouldn't either. The TV shows won’t tell you that, though, out of fear of losing ratings.
Moving in would save me the 6% selling costs, so I'd already be ahead of the game!
The less work a house has to have done to it, the more it costs to buy. The closer to move-in condition it is, the more it’s going to cost--end of story. This is why you want to take on the tough problems, then resell to “flippers”—it’s the only way to make a fast sale and a clear profit on real estate.
Those profit tallies you see after the open house and sale shots are NOT the whole picture—it’s incomplete math. You aren’t getting the whole story, only what the producers know will get you to watch the show. The prior incarnation of this phenomenon is the old “nothing down” schemes that used to be perpetuated in books and on late night TV infomercials.
TV executives don’t care about the integrity of the product—they just need to fill air time, and these companies will buy it up because it’s cheap.
On one show, I saw a flipper investor ask his scouting crew what they could do to find properties with fewer nasty surprises, and everybody looked at each other blankly. I had the answer, and I shouted it back to the TV: “Get an INSPECTION!”
The shows also don’t cover things that take up time like contractors who never show, courthouse-related things like getting permits and getting a condemnation order rescinded, police matters like getting a tenant evicted and getting a squatter removed, waiting for an available construction dumpster, emptying out a fully-furnished house, disposal of said furnishings, scheduling and waiting for inspectors, and getting contractors back on the job site after inspections have been passed.
Now you see why speedy timetables, large crews, access to ultra-large financing, and speedy sales are paramount to flipping. Your profit, even after spending large bucks to solve large problems, is surely to be a much bigger percentage than the paint-and-tile guy who comes along behind you. He needs many deals at the same time, or many successive deals close together, in order to make flipping a profitable career. Let's face it--there just aren't enough of these truly profitable disastrous gems out there for the picking in today's market.
Now, let’s go back to that same house and throw in a true flipper scenario: a house in a $300k market with lead-based paint, asbestos siding, and plumbing issues—all bright red flags for regular buyers and TV flippers, but not you. You get permission to go through the house with a qualified inspector or two, determine the problems, and get estimates on repairs BEFORE SPENDING A DIME ON PURCHASE.
You subtract all your costs from the $300k market value, then make this your bid (40% of market value is doing good, depending on estimates). This particular house should have a bid no higher than $180k. Whatever your estimates come to plus 10% for overruns, plus the cost of buying and selling, incidentals (permits, utilities, etc.) and a 20% market discount to attract TV flippers (and make a quick sale) is what you need to subtract from the current market value, and that’s what your offer number should be. Many times it’s turned down, and that’s life—move onto the next opportunity. If it's accepted, then take possession and get to work on those nasty red-flag issues AND NO MORE. Let the flipper sharks do the rest and lose money on it. You IMPROVE the property by merely making it habitable, and they just slap make-up on it--that's the difference.
Now you know why true flipping is rare and seldom done—it's the fleeting opportunity for meaningful profit. If the planets were to align, and a miracle were to occur, you might just find a dream property that fits all your true flipper parameters—but it will be hazard-laden and produce enough headaches to turn you away from real estate forever, let alone true flipping.
Another reason why true flipping isn’t done more often: money. If you plan to take your sweet time on a property, plan to eliminate carrying costs by paying cash. If you cannot pay cash, then get adequate financing with the least monthly carrying costs while you work on the property. TV flippers don’t do this, and it eats into their profit before they even swing a hammer. Market fluctuations also do a big number on profits, as you've read above.
These TV flipper shows are a terrific example of what NOT to do. None of the cosmetic improvements they do to a property pay them back 100% or more—the highest-returning improvements are in the “adding square footage” range: adding a second bath, a second or third bedroom, a big deck or sun room, expanding a kitchen, or adding a second story. All the cosmetic things don’t return nearly what is spent on them, so why spend money to lose money?
If you’re a homeowner now, you might want to ask yourself that same question—why chase the LAST dollar with granite counters and stainless steel appliances, when you can go for the FAST buck selling your house “as is” to TV flippers? People do it now out of greed, not speed, and get caught in market down-drafts, buyer taste fluctuations, and credit crunches in the end.
Monday, July 30, 2007
Saturday, July 28, 2007
The Great Risk Shift--A Book to Avoid Out of Respect to Fellow Taxpayers
My book came, and I flipped through it to the last chapter--the REAL reason why I got this book.
While I knew this was a whiny tome about how people are being expected to shoulder more and more of their own social burdens, the title did contain a "how you can fight back" promise.
Well, the so-called "fighting back" involves exchanging one set of social programs for another, for example:
Medicare--of course, this would become Universal Health Care.
Retirement--instead of the accounts we have now, there'd be a Universal Savings account invented to take it's place. This account would cover any kind of savings you can imagine--retirement, college, etc., and would take the place of the ailing Social Security program.
Welfare--another magical account would be created to cover "insecurity": periods of unemployment, downshifting or pay cuts, high inflation, death of a working spouse, etc. to take the place of the existing food stamp, AFDC, unemployment, and/or disability. This would become Universal Insurance.
In short, the author proposes turning America into a highly-taxed, highly-coddled state like Denmark, where all is provided at taxpayer expense (up to 80% of people's pay), and only enough is left for housing, food, gas, and fun (like there'd be any fun on THAT plan!). Where would low-income earners come up with the money for THIS plan?
A quick calculation reveals that we couldn't even afford to pay rent on the 20% of our remaining income, let alone eat and commute, on our middle-class income with this plan.
Taxpayers would contribute to the new accounts, and the government would administer them just like it does now, except that your dollars would have your name on them. Personally, my dollars have my name on them now with my own private accounts, and I'm not paying for something I don't want or need.
There are solutions to these problems in existence now, but few are able to (or choose to) take advantage of them. This plan would take the choice out of the equation, and as far as I can see, doesn't account for the entrepreneurial spirit or self-employment.
If you prefer being self-sufficient, self-reliant, personally responsible, and to live below your means, then stay away from this book. There's nothing here for you except anger. This plan is clearly geared for the mindless sheep out there who want something for nothing, only this plan shows how dear the cost of that something would be--we're already paying up to 40% of our incomes in various taxes just to support people and government now!
What got us into trouble as a country is the fact that government borrows against assets--what's to say the government won't borrow against THESE assets as well? I don't want my accounts to be used as collateral by Uncle Sam.
While I knew this was a whiny tome about how people are being expected to shoulder more and more of their own social burdens, the title did contain a "how you can fight back" promise.
Well, the so-called "fighting back" involves exchanging one set of social programs for another, for example:
Medicare--of course, this would become Universal Health Care.
Retirement--instead of the accounts we have now, there'd be a Universal Savings account invented to take it's place. This account would cover any kind of savings you can imagine--retirement, college, etc., and would take the place of the ailing Social Security program.
Welfare--another magical account would be created to cover "insecurity": periods of unemployment, downshifting or pay cuts, high inflation, death of a working spouse, etc. to take the place of the existing food stamp, AFDC, unemployment, and/or disability. This would become Universal Insurance.
In short, the author proposes turning America into a highly-taxed, highly-coddled state like Denmark, where all is provided at taxpayer expense (up to 80% of people's pay), and only enough is left for housing, food, gas, and fun (like there'd be any fun on THAT plan!). Where would low-income earners come up with the money for THIS plan?
A quick calculation reveals that we couldn't even afford to pay rent on the 20% of our remaining income, let alone eat and commute, on our middle-class income with this plan.
Taxpayers would contribute to the new accounts, and the government would administer them just like it does now, except that your dollars would have your name on them. Personally, my dollars have my name on them now with my own private accounts, and I'm not paying for something I don't want or need.
There are solutions to these problems in existence now, but few are able to (or choose to) take advantage of them. This plan would take the choice out of the equation, and as far as I can see, doesn't account for the entrepreneurial spirit or self-employment.
If you prefer being self-sufficient, self-reliant, personally responsible, and to live below your means, then stay away from this book. There's nothing here for you except anger. This plan is clearly geared for the mindless sheep out there who want something for nothing, only this plan shows how dear the cost of that something would be--we're already paying up to 40% of our incomes in various taxes just to support people and government now!
What got us into trouble as a country is the fact that government borrows against assets--what's to say the government won't borrow against THESE assets as well? I don't want my accounts to be used as collateral by Uncle Sam.
Friday, July 20, 2007
Invasion of the Pod People, Round 2 (L-O-N-G)
No, this isn’t about some sci-fi horror flick, and it has nothing whatsoever to do with the blasted I-pod. It has a lot to do with peas and politics, however.
My husband has taken to calling people who have that little fish logo on the backs of their cars to symbolize their religion “fish people.” I am taking to calling eco-weenies “pod people” because they seem to worship the same set of PROFIT prophets: Al Gore, Ed Begley Jr., Michael Moore, and Robert Kennedy (the radical extremist of the bunch). Well, Michael Moore isn’t so much of an eco-weenie, but he rates up there with the rest of the “profit” prophets.
I only wish the pods they came from never opened. They snatch minds instead of bodies.
The first invasion happened in the 60’s with the first wave of hippies. In their effort to thwart all things good, decent, and conservative, they went out and protested their way through high school and college years (at least they made it to college!), and ended up getting jobs in places where they could effect the most change in public and social policy. We’re still paying for their efforts today, as well as contending with the changes coming down the pike.
After 40-some-odd years of social and political change, you’d think we’d have learned by now that issues have two sides: benefits and consequences. Most of the changes that came about as a result of the last wave of hippie overthrow have left us with dire lasting consequences—consequences that would take anther generation of hippie overthrow to correct…or make even worse.
Let me give you some examples:
• CAFÉ standards—the smaller and more efficient the car, the less safe it is, and the higher our gas taxes get raised to make up for income loss.
• EPA and wetlands protection—every mud puddle has the potential to be classified as a “wetland” (even if it’s in your back yard) because a bird might land there to drink or bathe.
• Title 9 sports programs—because women’s sports have died off, men’s sports have to die in equal numbers regardless of participation and fan support.
• Diversity—everyone should be given a chance to go to college, even if they don’t possess the intelligence to be there.
• Catalytic converters—removes lead and pollutants from the burnt fuel (even though we now use unleaded gas), and robs us of 10 miles per gallon doing it.
• Low-flush toilets—now we get to flush twice to get the same action as one flush took us in our old toilets. Exactly WHERE’S the savings here?
• DDT, and other beneficial chemicals—now we have malaria breakouts and other formerly-eradicated diseases cropping up globally when they were once under control.
• Nuclear power plants and oil refineries—NIMBYs have driven us to this energy-deprived state we’re in now because of an irrational and unfounded fear of a mass-casualty accident or irreparably disrupting nature and habitats. Even Chernobyl had no more than 100 deaths in its meltdown, and those people were working INSIDE the plant! ANWR worshippers won’t even give us a chance to prove drilling can be done eco-sensitively.
Nowadays, we have Pod People TNG issues to worry about, like:
• Light bulbs—CFC bulbs contain mercury, and need to be disposed of as hazardous material. It was bad enough to spend $7 per bulb, and now we have $35 LED bulbs as the new up-and-comer. These “new” bulbs only have a 10-year lifetime (similar to CFC bulbs)—for five times the price, it should have five times the life!
• Bottled water—the plastic bottles form this totally-unnecessary product are clogging landfills, and bottled water purity is largely unregulated. The bottles themselves leach chemicals back into the water, but you won’t hear anything about that from them!
• Alternative energy—there simply aren’t enough alternatives to get us off oil, so let us drill or nuke up, or get off our backs. Low-income people can barely afford to live as it is, and Pod People want them to somehow pony up for the extra expense of alternatives!
• Universal health care—we all should be required to pay for something we don’t all want or need because some of us can’t seem to eat right, exercise, or correctly supplement ourselves. Bring out the safety nets!
• The war in Iraq—Cindy Sheehan has a Chinaman’s chance in hell of replacing Nancy Pelosi, especially with absolutely-no-political background from which to start campaigning. Just sit back and let ol’ Guns-n-Butter leave office in ’08, and watch the Dems do the work for you, Cindy. The troops WILL come home—it’s just a matter of when.
• New CAFÉ standards—now they want to make cars even MORE unsafe and expensive.
• Global warming—it’s called weather, get used to it. If you don’t like it, plant trees.
• Other issues that require us to SPEND in order to SAVE something—namely, the planet, and for what? More importantly, for WHOM--a bunch of idiots that are going to exploit it the same way we are, only minus a basic education and with a whole lot of emotional baggage? Then who are THEY going to save it for, if at all? All our work will have been in vain.
For more, please read a copy of Eco Freaks.
Here we go again down the path of expedience and least resistance without regard for long-term consequences. Buckle your seatbelts!
What’s different about this new batch of pod people issues is the amount of money they insist we spend to avoid certain doom, and how rabidly radical some people have gotten over their issues. When you have a Kennedy child telling people at a concert (with open mikes everywhere, and televised to boot) saying that anyone who doesn’t believe in global warming is a traitor to this country, and should be treated like one (shot or imprisoned), I have a problem. This kind of rabid radicalism should be right up there with the Taliban and Al-Qaeda.
Robert Kennedy may as well be the Osama bin Laden of environmentalists. I recently learned he was just trying to protect his newly-formed industry—Environmental Law. As a lawyer, he needs someone to prosecute or defend, and what better way to shake us down than with a trumped-up industry and trumped-up charges! I smell a Sharpton…
The last batch of Pod People has this in common with today’s batch: the destruction of non-believers, dissent, and capitalist markets; the promotion of nature and a completely level playing field (as they see it), and to hell with long-term consequences. It’s become a religion, and these are the Evangelicals of the left. Orwellian pigs need not apply.
I wasn’t old enough to know who pulled the strings back in the last round of Pod People invasion, but I sure do know who pulls the strings now—would-be politicians, money-seekers, and influence-peddlers. It’s amazing what some people can do with a movie script, a book, or even a TV show, and it’s even more amazing to see the sheer numbers of people who eagerly comply and agree with certain political dogma.
“I see Pod People…they’re everywhere…and they don’t even know they’re being used!”
It takes a certain kind of person to see just how many of us peasants would rather be led around by the neck than think and act for ourselves, and concoct a belief system designed to take advantage of that fact (religion, environmentalism, you name it). Of course, advantage always means MONETARY as well as POLITICALLY.
When things try to get imposed on us, we fight back with free markets, and try to let demand decide the fate of things. Unfortunately, good old-fashioned supply and demand doesn’t always allow for the flourishing of bad ideas, concepts, and products, forcing the objectionable agenda to go into the political market, seeking refuge through policy implementation and/or subsidies. Of course, this means a barrage of inaccurate data go along with it, as well as a heaping helping of emotional blackmail (politicians are part sheep too, and can be swayed just like us). Hence, the development of the “mockumentary” as a swaying tool—it’s brief, lively, and titillating enough to work on your average time-starved politician.
When the free markets can’t profit from Pod People ideas or products, the political markets sure can—it just gives more grist for the lobbying and loophole mill. A politician can profit almost as much (if not more) from an idea or agenda as the originating product-maker. So much for anti-capitalism, a dearly-held tenet of Pod People everywhere!
As long as we carefully investigate each issue before we make up our minds to join the fray or ignore it, the free markets are all we have to stop this new invasion. When the free markets speak louder than politics, then Pod People eradication will begin.
I’d love to be able to spray Roundup on them as I come across them, but that would be committing murder—how else does one kill weeds? :)
My husband has taken to calling people who have that little fish logo on the backs of their cars to symbolize their religion “fish people.” I am taking to calling eco-weenies “pod people” because they seem to worship the same set of PROFIT prophets: Al Gore, Ed Begley Jr., Michael Moore, and Robert Kennedy (the radical extremist of the bunch). Well, Michael Moore isn’t so much of an eco-weenie, but he rates up there with the rest of the “profit” prophets.
I only wish the pods they came from never opened. They snatch minds instead of bodies.
The first invasion happened in the 60’s with the first wave of hippies. In their effort to thwart all things good, decent, and conservative, they went out and protested their way through high school and college years (at least they made it to college!), and ended up getting jobs in places where they could effect the most change in public and social policy. We’re still paying for their efforts today, as well as contending with the changes coming down the pike.
After 40-some-odd years of social and political change, you’d think we’d have learned by now that issues have two sides: benefits and consequences. Most of the changes that came about as a result of the last wave of hippie overthrow have left us with dire lasting consequences—consequences that would take anther generation of hippie overthrow to correct…or make even worse.
Let me give you some examples:
• CAFÉ standards—the smaller and more efficient the car, the less safe it is, and the higher our gas taxes get raised to make up for income loss.
• EPA and wetlands protection—every mud puddle has the potential to be classified as a “wetland” (even if it’s in your back yard) because a bird might land there to drink or bathe.
• Title 9 sports programs—because women’s sports have died off, men’s sports have to die in equal numbers regardless of participation and fan support.
• Diversity—everyone should be given a chance to go to college, even if they don’t possess the intelligence to be there.
• Catalytic converters—removes lead and pollutants from the burnt fuel (even though we now use unleaded gas), and robs us of 10 miles per gallon doing it.
• Low-flush toilets—now we get to flush twice to get the same action as one flush took us in our old toilets. Exactly WHERE’S the savings here?
• DDT, and other beneficial chemicals—now we have malaria breakouts and other formerly-eradicated diseases cropping up globally when they were once under control.
• Nuclear power plants and oil refineries—NIMBYs have driven us to this energy-deprived state we’re in now because of an irrational and unfounded fear of a mass-casualty accident or irreparably disrupting nature and habitats. Even Chernobyl had no more than 100 deaths in its meltdown, and those people were working INSIDE the plant! ANWR worshippers won’t even give us a chance to prove drilling can be done eco-sensitively.
Nowadays, we have Pod People TNG issues to worry about, like:
• Light bulbs—CFC bulbs contain mercury, and need to be disposed of as hazardous material. It was bad enough to spend $7 per bulb, and now we have $35 LED bulbs as the new up-and-comer. These “new” bulbs only have a 10-year lifetime (similar to CFC bulbs)—for five times the price, it should have five times the life!
• Bottled water—the plastic bottles form this totally-unnecessary product are clogging landfills, and bottled water purity is largely unregulated. The bottles themselves leach chemicals back into the water, but you won’t hear anything about that from them!
• Alternative energy—there simply aren’t enough alternatives to get us off oil, so let us drill or nuke up, or get off our backs. Low-income people can barely afford to live as it is, and Pod People want them to somehow pony up for the extra expense of alternatives!
• Universal health care—we all should be required to pay for something we don’t all want or need because some of us can’t seem to eat right, exercise, or correctly supplement ourselves. Bring out the safety nets!
• The war in Iraq—Cindy Sheehan has a Chinaman’s chance in hell of replacing Nancy Pelosi, especially with absolutely-no-political background from which to start campaigning. Just sit back and let ol’ Guns-n-Butter leave office in ’08, and watch the Dems do the work for you, Cindy. The troops WILL come home—it’s just a matter of when.
• New CAFÉ standards—now they want to make cars even MORE unsafe and expensive.
• Global warming—it’s called weather, get used to it. If you don’t like it, plant trees.
• Other issues that require us to SPEND in order to SAVE something—namely, the planet, and for what? More importantly, for WHOM--a bunch of idiots that are going to exploit it the same way we are, only minus a basic education and with a whole lot of emotional baggage? Then who are THEY going to save it for, if at all? All our work will have been in vain.
For more, please read a copy of Eco Freaks.
Here we go again down the path of expedience and least resistance without regard for long-term consequences. Buckle your seatbelts!
What’s different about this new batch of pod people issues is the amount of money they insist we spend to avoid certain doom, and how rabidly radical some people have gotten over their issues. When you have a Kennedy child telling people at a concert (with open mikes everywhere, and televised to boot) saying that anyone who doesn’t believe in global warming is a traitor to this country, and should be treated like one (shot or imprisoned), I have a problem. This kind of rabid radicalism should be right up there with the Taliban and Al-Qaeda.
Robert Kennedy may as well be the Osama bin Laden of environmentalists. I recently learned he was just trying to protect his newly-formed industry—Environmental Law. As a lawyer, he needs someone to prosecute or defend, and what better way to shake us down than with a trumped-up industry and trumped-up charges! I smell a Sharpton…
The last batch of Pod People has this in common with today’s batch: the destruction of non-believers, dissent, and capitalist markets; the promotion of nature and a completely level playing field (as they see it), and to hell with long-term consequences. It’s become a religion, and these are the Evangelicals of the left. Orwellian pigs need not apply.
I wasn’t old enough to know who pulled the strings back in the last round of Pod People invasion, but I sure do know who pulls the strings now—would-be politicians, money-seekers, and influence-peddlers. It’s amazing what some people can do with a movie script, a book, or even a TV show, and it’s even more amazing to see the sheer numbers of people who eagerly comply and agree with certain political dogma.
“I see Pod People…they’re everywhere…and they don’t even know they’re being used!”
It takes a certain kind of person to see just how many of us peasants would rather be led around by the neck than think and act for ourselves, and concoct a belief system designed to take advantage of that fact (religion, environmentalism, you name it). Of course, advantage always means MONETARY as well as POLITICALLY.
When things try to get imposed on us, we fight back with free markets, and try to let demand decide the fate of things. Unfortunately, good old-fashioned supply and demand doesn’t always allow for the flourishing of bad ideas, concepts, and products, forcing the objectionable agenda to go into the political market, seeking refuge through policy implementation and/or subsidies. Of course, this means a barrage of inaccurate data go along with it, as well as a heaping helping of emotional blackmail (politicians are part sheep too, and can be swayed just like us). Hence, the development of the “mockumentary” as a swaying tool—it’s brief, lively, and titillating enough to work on your average time-starved politician.
When the free markets can’t profit from Pod People ideas or products, the political markets sure can—it just gives more grist for the lobbying and loophole mill. A politician can profit almost as much (if not more) from an idea or agenda as the originating product-maker. So much for anti-capitalism, a dearly-held tenet of Pod People everywhere!
As long as we carefully investigate each issue before we make up our minds to join the fray or ignore it, the free markets are all we have to stop this new invasion. When the free markets speak louder than politics, then Pod People eradication will begin.
I’d love to be able to spray Roundup on them as I come across them, but that would be committing murder—how else does one kill weeds? :)
Monday, July 16, 2007
Open Letter to Cindy Sheehan
You’re angry with the war in Iraq. You hurt because you lost a son there. You hurt more because you get no sympathy from your family. Now you want to end the war for other sons.
You publicly plan to run for office and unseat the incumbent Nancy Pelosi, so you can vote to end the war and bring our troops home.
My question to you: And THEN what? You’ve already exhausted your efforts to make a public spectacle of yourself (to no avail) by protesting in a field and shouting down politicians at their events.
Let’s suppose for a minute that the planets align, and you actually get Nancy’s position—you WON’T be Speaker of the House, but a freshman senator, and treated accordingly. You will also have to get up to speed and keep abreast of ALL the political issues happening on the Hill AND in your state. You will no longer be a one-issue mule, and over time, you WILL succumb to the same things the seasoned politicians have for generations: money. When your term expires, will you leave office with your work done, or will you stick around as long as you can for the brass ring of high pay and good retirement?
You will have become something you despise most right now—a politician.
As a politician, do you think you will earn the respect of your fellow office-holders, the very people you shouted down at rallies and events? Do you think you can earn the respect of those you would have voting for you, now that you’ve managed to intrude upon the grief of so many who ALSO lost sons in Iraq (and grieved with dignity)?
Where are you hoping to get the experience, political background, money, and voting block it would take to seriously run for office? These politicians spent YEARS gathering these things before they ever got their names on a ballot, starting with a legal degree and a school board position. One issue isn’t going to be nearly enough, no matter how passionate you are about it.
Another thing you need to be aware of: it takes 60 votes for anything to pass the Senate, and another majority vote in the House to pass a law. Your one vote wouldn’t add up to squat unless you have a coalition willing to vote your way on issues—what are you willing to do, and how much slime are you willing to produce, in order for the wheels of politics to be greased in your favor?
Then there’s the presidential veto. All your efforts will be for naught with the stroke of his veto pen.
Do us all and yourself a favor, Cindy—go seek some grief counseling, and go take care of the son (and/or daughter) you still have. You’re no longer striving for good, only revenge, and this is what we’re all seeing on TV—we, your potential voters, who are not impressed. Your actions do come with consequences.
You publicly plan to run for office and unseat the incumbent Nancy Pelosi, so you can vote to end the war and bring our troops home.
My question to you: And THEN what? You’ve already exhausted your efforts to make a public spectacle of yourself (to no avail) by protesting in a field and shouting down politicians at their events.
Let’s suppose for a minute that the planets align, and you actually get Nancy’s position—you WON’T be Speaker of the House, but a freshman senator, and treated accordingly. You will also have to get up to speed and keep abreast of ALL the political issues happening on the Hill AND in your state. You will no longer be a one-issue mule, and over time, you WILL succumb to the same things the seasoned politicians have for generations: money. When your term expires, will you leave office with your work done, or will you stick around as long as you can for the brass ring of high pay and good retirement?
You will have become something you despise most right now—a politician.
As a politician, do you think you will earn the respect of your fellow office-holders, the very people you shouted down at rallies and events? Do you think you can earn the respect of those you would have voting for you, now that you’ve managed to intrude upon the grief of so many who ALSO lost sons in Iraq (and grieved with dignity)?
Where are you hoping to get the experience, political background, money, and voting block it would take to seriously run for office? These politicians spent YEARS gathering these things before they ever got their names on a ballot, starting with a legal degree and a school board position. One issue isn’t going to be nearly enough, no matter how passionate you are about it.
Another thing you need to be aware of: it takes 60 votes for anything to pass the Senate, and another majority vote in the House to pass a law. Your one vote wouldn’t add up to squat unless you have a coalition willing to vote your way on issues—what are you willing to do, and how much slime are you willing to produce, in order for the wheels of politics to be greased in your favor?
Then there’s the presidential veto. All your efforts will be for naught with the stroke of his veto pen.
Do us all and yourself a favor, Cindy—go seek some grief counseling, and go take care of the son (and/or daughter) you still have. You’re no longer striving for good, only revenge, and this is what we’re all seeing on TV—we, your potential voters, who are not impressed. Your actions do come with consequences.
Sunday, July 15, 2007
For Those Wondering About Ed Begley's Whereabouts...
He's been busy developing a line of eco-weenie cleaning products--yeah, like we don't have enough of them out there already! And at $6.00 for a 24 oz. bottle, it only makes me cling to my bleach water, rubbing alcohol water, and hydrogen peroxide a little tighter. His HGTV show must be going off the tracks.
P.S. Ed--I get mine for about .50 a bottle, then water it down. Why spend so much money to clean and save the planet, only to end up with unwanted plastic bottles in the landfill?
Then we have Robert Kennedy branding TV conservatives as traitors who should be shot or imprisoned for infusing a little common sense into the environmental game...while I'm not a TV conservative, I do subscribe to the "thinker" side of this debate--I wonder if I would be included in the TV traitor roundup. Good thing we're all familiar with the tree from which Mr. Kennedy fell. Too bad Mary Jo Kopeckne isn't around to witness the idealogical brutality.
P.S. Ed--I get mine for about .50 a bottle, then water it down. Why spend so much money to clean and save the planet, only to end up with unwanted plastic bottles in the landfill?
Then we have Robert Kennedy branding TV conservatives as traitors who should be shot or imprisoned for infusing a little common sense into the environmental game...while I'm not a TV conservative, I do subscribe to the "thinker" side of this debate--I wonder if I would be included in the TV traitor roundup. Good thing we're all familiar with the tree from which Mr. Kennedy fell. Too bad Mary Jo Kopeckne isn't around to witness the idealogical brutality.
Wednesday, July 11, 2007
What's YOUR pesticide load?
From Foodnews.org (scroll down to the list at the bottom)
A list of 45 foods ranked in order of pesticide load--100 being highest (peaches), and 1 being lowest (onions). Grapes are listed twice because both foreign and domestic got their own rank.
The top 10 offenders, and produce you should DEFINITELY buy organic: peaches, apples, bell peppers, celery, nectarines, strawberries, cherries, pears, imported grapes, and spinach.
A list of 45 foods ranked in order of pesticide load--100 being highest (peaches), and 1 being lowest (onions). Grapes are listed twice because both foreign and domestic got their own rank.
The top 10 offenders, and produce you should DEFINITELY buy organic: peaches, apples, bell peppers, celery, nectarines, strawberries, cherries, pears, imported grapes, and spinach.
Thursday, July 05, 2007
Cavalcade of Risk #29: What It Means to be Free (L-O-N-G)
After yesterday’s July 4th holiday, I want to tell you what “freedom” is, and what it means to be free. Many people don’t know, don’t have a clue, and actually work to suppress it without knowing it.
What we know as “freedom” was hard-won with lots of blood and lives. Now, many would just throw it all away, seeking security in the shelter of government arms (and no, I don’t mean guns).
Freedom is a willingness to handle risks with limited interference. Many Americans aren’t up for that challenge (or any other challenge, it seems). Those who clutch tightly onto social safety nets are announcing to the world they aren’t up to the rigors of being free.
Neal Boortz says it best, and I’ll paraphrase it here: anybody who votes for (and uses) government support of any kind is voting for the yoke of slavery to be put upon their backs. They’re handing their power over to politicians in the misguided belief that the state can do a better job at providing these things than they themselves can. The more power that’s handed over (through voting ballots, social program enrollment, etc.), the less freedom an individual has. Handing over power also means handing over paychecks.
In that vein, we already hand over up to 40% of our income in taxes—how much more can we afford to give up? Money is power, after all.
People go to work each day to buy freedom, and the more they pay in total taxes, the more power they’re giving away to Uncle Sam and his state-level cronies. The more social programs people use, the more power Uncle Sam takes away (through increased taxes) to pay for it. Stop voting for increased social program spending, and it will stop tax increases. We made that money, so why can’t we choose who to share it with? That’s what charitable donations are for.
If given a choice, many people turn down the chance to choose (as we see in Social Security reform and Medicare), and many more willingly shackle themselves to the notion of perceived security--giving the keys away in exchange. Sound familiar? It describes most liberal Democrat ideals, Social Security, Marxism, Socialism, and Hillary’s latest campaign slogan of “shared prosperity.” Personally, I’d love to trade in the welfare, Medicare, and Social Security programs for a decent border fence and I.D. authentication program.
There’s freedom TO and freedom FROM, as I once wrote about religion (and since deleted). Part of the reason for colonists coming to America was to escape religious persecution or just religion in general. In fact, the overwhelming majority of our forefathers were Atheist—they believed neither god nor government should rule with an iron fist.
July 4th is about freedom FROM more than anything else—tyranny, taxation, and government interference—all spelled out in the Declaration of Independence. The Bill of Rights deals with the freedom TO stuff, and lawyers deal with the non-freedoms.
Those who vote for and actively pursue social causes and other liberal ideals are actually seeking to LIMIT freedoms—encouraging Uncle Sam’s oversight into personal lives. In truth, Uncle Sam could care less about us as he throws up roadblock after roadblock. I guess some people would rather do without personal choice just to avoid doing (or thinking) for themselves. This is what is meant by “Uncle Sam’s plantation.”
We saw firsthand what abdicating power means after Hurricane Katrina, and what exists in other “New Orleans-style” political areas today—areas overrun with generations of helpless individuals who would die without Uncle Sam’s constant support, which decades of power-ceding created. My, how we’ve come so far since the days of slavery! This is what started Uncle Sam’s plantation, and only the recognition, acceptance, and participation in true freedom will shut it down.
This is what colonists went to war with England to prevent, and what July 4th, 1776 is all about: personal independence, the freedom FROM the belief that a king or god can make better decisions about your life than you can, and freedom TO make your own way without the yoke of oppression. Now it’s just another day off work, thanks to the smothering of commercialism. And we wonder why immigrants come to this country and do so well…probably because of a healthy respect for freedom of choice and personal responsibility.
Consider this while you light the barbeque, crack open your beer, throw the Frisbee, launch the fireworks, and wave the flags next year. Enjoy your freedom, now that you know what it is. On with the carnival!
MONEY RISK AND RISK AVOIDANCE:
Aron Wakling at The Credit Card Blog sends in this rather intriguing (to me at least) article about virtual prepaid credit cards.
Jimmy Atkinson of Forex Blog asks if terrorism affects your trading.
Leon Gettler of Sox First says that Sarbanes-Oxley stopped risk-taking in the business world. That’s not all it stopped, Leon! He also sends in The Subprime Fallout: The Bears Are Out to explain how subprime mortgages can affect everyone through pension funds and other investments made by financial institutions on their behalf.
Golbguru at The Tao of Money asks if it’s wise to quit your day job in favor of website income. I say it’s NEVER wise to quit your day job unless your other job easily, safely, and securely replaces that day job income for the long term (preferably more—isn’t that why people change jobs to begin with?).
SuperSaver at My Wealth Builder says we need to build some intestinal fortitude when buying stocks.
The Skilled Investor shows how statistics can lie.
Prince of Thrift at Debt-Free Forever blog says “it’s time for me to come clean and be honest about my stupidity.” Come sweep me away, dear Prince, on your paid-for white steed!
HEALTH RISK AND RISK AVOIDANCE:
Bob Vinyard of InsureBlog wants to know--what’s in your wallet? How Americans living in Canada deal with the health care system up there. I’d like Michael More to take as look at this one.
Dave Williams of MedTripInfo blog asks if it’s risky to travel abroad for health care.
Richard Eskow of The Sentinel Effect takes on the universal health care issue in challenging an editorial with Cato Institute fellows in Daydream Believers: Libertarians and Universal Healthcare.
Jay at Colorado Health Insurance Insider shows the freedom of individual health insurance and how a client actually comes out ahead keeping her private insurance vs. joining her employer’s group with lower premiums.
IronMan at Political Calculations shows how to value the lives of hypermilers, and explains the dangers of “hypermiling”—we used to just call it “drafting” back in my day. It’s extremely dangerous for a number of reasons, but more people are being attracted to it for the gains in gas mileage. This article includes a calculator to enter your miles driven compared to miles “drafted.” You ask me, I’d rather find a better replacement for the 10-mile-per-gallon ripoff we call the catalytic converter—thanks, environmentalists!
Michael Cannon of Cato-at-Liberty sends us this article about the Anti-Universal Care Club, and includes a link for signups. I’ve already joined.
This concludes our flag-waving, fireworks-lighting, hot dog-eating, freedom-loving issue of the Cavalcade of Risk. Join the Cavalcade again on the 18th with Richard Eskow at Sentinel Effect.
What we know as “freedom” was hard-won with lots of blood and lives. Now, many would just throw it all away, seeking security in the shelter of government arms (and no, I don’t mean guns).
Freedom is a willingness to handle risks with limited interference. Many Americans aren’t up for that challenge (or any other challenge, it seems). Those who clutch tightly onto social safety nets are announcing to the world they aren’t up to the rigors of being free.
Neal Boortz says it best, and I’ll paraphrase it here: anybody who votes for (and uses) government support of any kind is voting for the yoke of slavery to be put upon their backs. They’re handing their power over to politicians in the misguided belief that the state can do a better job at providing these things than they themselves can. The more power that’s handed over (through voting ballots, social program enrollment, etc.), the less freedom an individual has. Handing over power also means handing over paychecks.
In that vein, we already hand over up to 40% of our income in taxes—how much more can we afford to give up? Money is power, after all.
People go to work each day to buy freedom, and the more they pay in total taxes, the more power they’re giving away to Uncle Sam and his state-level cronies. The more social programs people use, the more power Uncle Sam takes away (through increased taxes) to pay for it. Stop voting for increased social program spending, and it will stop tax increases. We made that money, so why can’t we choose who to share it with? That’s what charitable donations are for.
If given a choice, many people turn down the chance to choose (as we see in Social Security reform and Medicare), and many more willingly shackle themselves to the notion of perceived security--giving the keys away in exchange. Sound familiar? It describes most liberal Democrat ideals, Social Security, Marxism, Socialism, and Hillary’s latest campaign slogan of “shared prosperity.” Personally, I’d love to trade in the welfare, Medicare, and Social Security programs for a decent border fence and I.D. authentication program.
There’s freedom TO and freedom FROM, as I once wrote about religion (and since deleted). Part of the reason for colonists coming to America was to escape religious persecution or just religion in general. In fact, the overwhelming majority of our forefathers were Atheist—they believed neither god nor government should rule with an iron fist.
July 4th is about freedom FROM more than anything else—tyranny, taxation, and government interference—all spelled out in the Declaration of Independence. The Bill of Rights deals with the freedom TO stuff, and lawyers deal with the non-freedoms.
Those who vote for and actively pursue social causes and other liberal ideals are actually seeking to LIMIT freedoms—encouraging Uncle Sam’s oversight into personal lives. In truth, Uncle Sam could care less about us as he throws up roadblock after roadblock. I guess some people would rather do without personal choice just to avoid doing (or thinking) for themselves. This is what is meant by “Uncle Sam’s plantation.”
We saw firsthand what abdicating power means after Hurricane Katrina, and what exists in other “New Orleans-style” political areas today—areas overrun with generations of helpless individuals who would die without Uncle Sam’s constant support, which decades of power-ceding created. My, how we’ve come so far since the days of slavery! This is what started Uncle Sam’s plantation, and only the recognition, acceptance, and participation in true freedom will shut it down.
This is what colonists went to war with England to prevent, and what July 4th, 1776 is all about: personal independence, the freedom FROM the belief that a king or god can make better decisions about your life than you can, and freedom TO make your own way without the yoke of oppression. Now it’s just another day off work, thanks to the smothering of commercialism. And we wonder why immigrants come to this country and do so well…probably because of a healthy respect for freedom of choice and personal responsibility.
Consider this while you light the barbeque, crack open your beer, throw the Frisbee, launch the fireworks, and wave the flags next year. Enjoy your freedom, now that you know what it is. On with the carnival!
MONEY RISK AND RISK AVOIDANCE:
Aron Wakling at The Credit Card Blog sends in this rather intriguing (to me at least) article about virtual prepaid credit cards.
Jimmy Atkinson of Forex Blog asks if terrorism affects your trading.
Leon Gettler of Sox First says that Sarbanes-Oxley stopped risk-taking in the business world. That’s not all it stopped, Leon! He also sends in The Subprime Fallout: The Bears Are Out to explain how subprime mortgages can affect everyone through pension funds and other investments made by financial institutions on their behalf.
Golbguru at The Tao of Money asks if it’s wise to quit your day job in favor of website income. I say it’s NEVER wise to quit your day job unless your other job easily, safely, and securely replaces that day job income for the long term (preferably more—isn’t that why people change jobs to begin with?).
SuperSaver at My Wealth Builder says we need to build some intestinal fortitude when buying stocks.
The Skilled Investor shows how statistics can lie.
Prince of Thrift at Debt-Free Forever blog says “it’s time for me to come clean and be honest about my stupidity.” Come sweep me away, dear Prince, on your paid-for white steed!
HEALTH RISK AND RISK AVOIDANCE:
Bob Vinyard of InsureBlog wants to know--what’s in your wallet? How Americans living in Canada deal with the health care system up there. I’d like Michael More to take as look at this one.
Dave Williams of MedTripInfo blog asks if it’s risky to travel abroad for health care.
Richard Eskow of The Sentinel Effect takes on the universal health care issue in challenging an editorial with Cato Institute fellows in Daydream Believers: Libertarians and Universal Healthcare.
Jay at Colorado Health Insurance Insider shows the freedom of individual health insurance and how a client actually comes out ahead keeping her private insurance vs. joining her employer’s group with lower premiums.
IronMan at Political Calculations shows how to value the lives of hypermilers, and explains the dangers of “hypermiling”—we used to just call it “drafting” back in my day. It’s extremely dangerous for a number of reasons, but more people are being attracted to it for the gains in gas mileage. This article includes a calculator to enter your miles driven compared to miles “drafted.” You ask me, I’d rather find a better replacement for the 10-mile-per-gallon ripoff we call the catalytic converter—thanks, environmentalists!
Michael Cannon of Cato-at-Liberty sends us this article about the Anti-Universal Care Club, and includes a link for signups. I’ve already joined.
This concludes our flag-waving, fireworks-lighting, hot dog-eating, freedom-loving issue of the Cavalcade of Risk. Join the Cavalcade again on the 18th with Richard Eskow at Sentinel Effect.
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