Don't come around here no more
Whatever you're looking for
Hey! Don't come around here no more
I've given up, stop. I 've given up, stop.
I've given up, stop. On waiting any longer
I've given up, on this love getting stronger
"Don't Come Around Here No More" by Tom Petty & The Heartbreakers
Watch it on YouTube:
A little Tom Petty in honor of this weekends new Alice in Wonderland movie.
Sometimes I feel like we all live in wonderland; recently I had the chance to see the new Governor of New Jersey, Chris Christie, on CNBC and I must say I am impressed. He is a no nonsense kind of guy who is simply taking an axe to the New Jersey budget. He is cutting $2 billion from a budget with $6 billion in balances, he is cutting 375 different state programs, and he is not raising taxes at all! But he is warning that next year will be much tougher as he begins to tackle the "Alice in Wonderland" pensions and benefits. Two examples he gave. 1) "One state retiree, 49 years old, paid, over the course of his entire career a total of $124,000 toward his retirement pension and health benefits. What will we pay him? $3.3 million in pension payments over his life and nearly $500,000 for health care benefits - a total of $3.8 million on a $120,000 investment. Is that fair?" 2) "A retired teacher paid $62,000 toward her pension and nothing, yes nothing, for full family medical, dental and vision coverage over her entire career. What will we pay her? $1.4 million in pension benefits and another $215,000 in health care benefit premiums over her lifetime. Is it fair for all of us and our children to have to pay for this excess?" I wish him well because every state in the union is faced with the same bottomless rabbit hole of entitlements.
No Chris Christie in the White House though. No, the White House instead proposes to slap a new, first time ever, 2.9% Medicare tax on interest, dividends, annuities, royalties, and rents! This investment tax on top of the new higher 20% capital gains tax that takes effect when the Bush tax cuts expire next year, for a total investment tax rate of 22.9%, up from the current 15%, a whopping 52% increase in taxes for investors!! In the upside down world that Alice visits I'm sure that some actually believe that this little 52% increase will have no effect on peoples willingness to invest capital. Remember that capital, both monetary and intellectual, will flow to where it is treated the best.
Food for thought on an area where we might want to think about cutting back...military spending.
Now don't get me wrong, I'm all for a strong military but does anyone really believe we are getting our moneys worth?
As a percentage of GDP the U.S. spends twice as much as any other major country. And on a dollar basis ten times as much as China.
Just something to think about.
I hope a few of our elected officials see "Alice" this weekend and realize that we can't live in a fantasy world any longer.
Alice: If I had a world of my own, everything would be nonsense. Nothing would be what it is because everything would be what it isn't. And contrary-wise; what it is it wouldn't be, and what it wouldn't be, it would. You see?
Doorknob: Read the directions and directly you will be directed in the right direction.
Be careful out there,
Chris Wiles
This article contains the current opinions of the author but not necessarily those of the Rockhaven Capital Management. The author’s opinions are subject to change without notice. This article is distributed for informational purposes only. Forecasts, estimates, and certain information contained herein are based upon proprietary research and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed.
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