Archive for October, 2008

  • Third-Quarter Update
    , October 1st, 2008 at 7:39 pm

    Now that the third quarter is over with, I wanted to pass along some thoughts about changes to my Buy List. I make changes once a year in mid-December, and start tracking the new list on January 1. Right now, I’m considering cutting a few stocks. I don’t know yet, but these are on my short list:
    Clarcor (CLC)
    Harley-Davidson (HOG)
    Lincare (LNCR)
    SEI Investments (SEIC)
    WR Berkley (WRB)
    Unitedhealth (UNH)

  • The Fine Print
    , October 1st, 2008 at 4:25 pm

    From The Onion:
    bailout_stat.jpg

  • HR 1424
    , October 1st, 2008 at 12:17 pm

    Here’s the Senate’s bill. It checks in at 451 pages.
    If you turn to page 299, you’ll find:

    20 SEC. 503. EXEMPTION FROM EXCISE TAX FOR CERTAIN
    21 WOODEN ARROWS DESIGNED FOR USE BY
    22 CHILDREN.
    23 (a) IN GENERAL.—Paragraph (2) of section 4161(b)
    24 is amended by redesignating subparagraph (B) as sub
    1 paragraph (C) and by inserting after subparagraph (A)
    2 the following new subparagraph:
    3 ‘‘(B) EXEMPTION FOR CERTAIN WOODEN
    4 ARROW SHAFTS.—Subparagraph (A) shall not
    5 apply to any shaft consisting of all natural
    6 wood with no laminations or artificial means of
    7 enhancing the spine of such shaft (whether sold
    8 separately or incorporated as part of a finished
    9 or unfinished product) of a type used in the
    10 manufacture of any arrow which after its as
    11 sembly—
    12 ‘‘(i) measures 5⁄16 of an inch or less in
    13 diameter, and
    14 ‘‘(ii) is not suitable for use with a bow
    15 described in paragraph (1)(A).’’.
    16 (b) EFFECTIVE DATE.—The amendments made by
    17 this section shall apply to shafts first sold after the date
    18 of enactment of this Act.

  • Here We Go Again
    , October 1st, 2008 at 1:39 am

    The Senate will vote later today on a revised bailout plan.

    Senate Majority Leader Harry M. Reid (D-Nev.) called the Senate’s revised legislation “the best thing to move forward.” Reid was joined on the floor by Senate Minority Leader Mitch McConnell (R-Ky.), who said the plan was “one of the finer moments in the Senate.”
    A senior House Republican adviser, who spoke on the condition of anonymity to talk about private strategy, said the addition of the FDIC cap increase and the tax credits — without any corresponding tax increases — could have “substantial appeal” in that caucus. Boehner was consulted by Senate leaders and gave his approval, the aide said.
    But the addition of the tax provisions may entail new risks in the House, which returns to action Thursday. Speaker Nancy Pelosi (D-Calif.) responded tepidly to the Senate announcement, and it remained unclear when the House would would consider the revised bill, though a vote is likely by week’s end. “The Senate has made a decision about how to proceed and what can pass that body. The Senate will vote . . . and the Congress will work its will,” Pelosi said.

    I’m honestly a little confused. I believe the Constitution requires all money bills to start in the House. Perhaps this Senate vote would be to test the waters, then it would go to the House and back to Senate.

    The FDIC provision, which would raise the insurance cap for bank accounts to $250,000 from the current $100,000, was discussed during weekend negotiations in Pelosi’s office but was not included in the final package. But in what negotiators from both parties considered a critical breakthrough, the largest banking lobby in Washington embraced the idea. “We now see this as a way to help the package pass,” said Ed Yingling, president of the American Bankers Association.
    While the move would result in banks paying higher fees on their insurance premiums, advocates say it would provide important assurances to small businesses that keep large sums of cash in bank accounts and are reeling from the credit crunch. “We are having an awful lot of people come into banks and ask questions,” Yingling said.