getting back to moral hazard
if you assume that everything is random and we have no control then insurance for everyone is a fair answer to the bad luck that comes to some
if we think people do have control and freedom and choice and that luck plays only a small part in our lives, then it may not be that wise to pool the costs of bad decisions
for example
in health care
there are factors that are risky and lead to more expense such as
drug abuse
tobacco
alcohol
over eating
"mountain climbing" and other risky sports
why is it fair for the people who live carefully, wisely, prudently, to pay for the medical bills of the reckless?
this gets to the heart of the political debate
how much control does the individual have?
are we really free?
Is it a material world or a spiritual world?
Friday, June 29, 2012
Thursday, June 28, 2012
What is Freedom?
My silly
I see the medical establishment as tantamount to a religion.
It is certainly a belief system.
Our government has been up to the neck in it for a long time. Now over the head!
individual mandate upheld as a tax
You can't buy health
health is something you do
so today I will remember that it is all spirit
the materialists have a victory in the political arena
but ultimately their view of the world is not correct and leads to all sorts of trouble
awaken to the reality of perfect health right here and right now
that is the truth
simply receive the goodness that is constantly available and be well
the "illness" was only an illusion
Even now I will not "buy into" these false beliefs in disease
I see the medical establishment as tantamount to a religion.
It is certainly a belief system.
Our government has been up to the neck in it for a long time. Now over the head!
individual mandate upheld as a tax
You can't buy health
health is something you do
so today I will remember that it is all spirit
the materialists have a victory in the political arena
but ultimately their view of the world is not correct and leads to all sorts of trouble
awaken to the reality of perfect health right here and right now
that is the truth
simply receive the goodness that is constantly available and be well
the "illness" was only an illusion
Even now I will not "buy into" these false beliefs in disease
Sunday, June 24, 2012
The Nine Senses
Hearing
Sight
Touch
Smell
Taste
The Moral Sense
Common Sense
Pre-sense
Nonsense
Pre-sense needs explanation. It is both our ability to predict the future and to live in the present.
It is also the presence of infinite mind.
Sight
Touch
Smell
Taste
The Moral Sense
Common Sense
Pre-sense
Nonsense
Pre-sense needs explanation. It is both our ability to predict the future and to live in the present.
It is also the presence of infinite mind.
Thursday, June 21, 2012
Oil Drops
Oil has come down a lot recently.
I remember not long ago the pundits were predicting gasoline at $5 a gallon.
Once again they were just wrong. Plain wrong.
You can't predict the future.
And you really can't predict it if your understanding is flawed.
What was the flaw in their understanding?
They don't believe in freedom.
They don't believe in innovation.
They don't believe in the genius of the common man.
They don't understand supply and demand.
They think the common man is stupid and will pay anything.
They want to be able to control things.
So it is a political argument.
The little man is a fool and must be protected by "me" because I am so wise.
But history shows us that the one who thinks himself to be wise often turns out to be the fool.
This morning oil is down almost to $80 a barrel.
What next?
Fools will tell you.
I remember not long ago the pundits were predicting gasoline at $5 a gallon.
Once again they were just wrong. Plain wrong.
You can't predict the future.
And you really can't predict it if your understanding is flawed.
What was the flaw in their understanding?
They don't believe in freedom.
They don't believe in innovation.
They don't believe in the genius of the common man.
They don't understand supply and demand.
They think the common man is stupid and will pay anything.
They want to be able to control things.
So it is a political argument.
The little man is a fool and must be protected by "me" because I am so wise.
But history shows us that the one who thinks himself to be wise often turns out to be the fool.
This morning oil is down almost to $80 a barrel.
What next?
Fools will tell you.
Monday, June 18, 2012
12.8% yield
here is a way to get a hypothetical yield of 12.8% annualized out to next January 19.
this morning you can buy SPY for $134.14 a share
and you can write a call on that position at a 134 strike price out to January 19, 2013 and sell that call for $8.02.
Imagine you have a million dollars to invest.
Buy 7900 shares of SPY at a cost of $1,059,706.
Write 79 calls at 134 out to 1/19/13 and get back $63,358
cost of position is $996,348.
now imagine that next January 19 the stock closes at or above 134, then your stock will be called and the proceeds will be
$1,058,600 for a gain of $62,252.
You also will have received a dividend of around $12,363 during this time
total income from this would be $74,615.
if you annualize this amount you get a yield of 12.8%
what is the risk?
the stock goes down and closes below 134 but you have insurance here of $8 a share so even if it went down to 126 you would not lose any thing.
other risk is that the stock goes way up in which case you do not get the big gain.
this morning you can buy SPY for $134.14 a share
and you can write a call on that position at a 134 strike price out to January 19, 2013 and sell that call for $8.02.
Imagine you have a million dollars to invest.
Buy 7900 shares of SPY at a cost of $1,059,706.
Write 79 calls at 134 out to 1/19/13 and get back $63,358
cost of position is $996,348.
now imagine that next January 19 the stock closes at or above 134, then your stock will be called and the proceeds will be
$1,058,600 for a gain of $62,252.
You also will have received a dividend of around $12,363 during this time
total income from this would be $74,615.
if you annualize this amount you get a yield of 12.8%
what is the risk?
the stock goes down and closes below 134 but you have insurance here of $8 a share so even if it went down to 126 you would not lose any thing.
other risk is that the stock goes way up in which case you do not get the big gain.
Saturday, June 9, 2012
Tuesday, June 5, 2012
Cheap Oil Good or Bad News?
I hear that cheaper oil is bad news.
Bad if you own an oil well
good if you are an average Joe
good for consumers
Of course it is good news if oil prices are declining
and it is what we should expect in a rational peaceful world
billions of people striving to live better lives
each seeking economy and more for less
gradually the living standard improves
we get more efficient
we live better using less oil
we learn to find and extract oil more cheaply
of course the price should always go down
and of course that is a good thing
Bad if you own an oil well
good if you are an average Joe
good for consumers
Of course it is good news if oil prices are declining
and it is what we should expect in a rational peaceful world
billions of people striving to live better lives
each seeking economy and more for less
gradually the living standard improves
we get more efficient
we live better using less oil
we learn to find and extract oil more cheaply
of course the price should always go down
and of course that is a good thing
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