Business & Politics

3/1/2006 Political Too bad somebody who subscribes to Tom Friedman’s ideas is not our president. His 3/1/06 editorial “Who’s Afraid of a Gas Tax “ is right on. “Only if the total price of gasoline is brought into the $3.50 to $4 per gallon range and kept there will large number of Americans demand plug-in hybrid cars that run on biofuels…” A recent poll found that 60 percent of those polled including one-third of Republicans disapproved of how Mr. Bush is handling our energy crisis. 87% said Washington should require car manufacturers to produce more efficient cars. When asked whether they would favor an increase in a gas tax, 85% said no. When it was framed as part of a national strategy to achieve energy security and climate security, 55% favored a tax and 37 % said no. WE NEED TO BECOME ENERGY INDEPENDENT—thanks to Friedman and other notables, maybe the idea will really catch on—Bush is just giving it lip service. We need to get serious and we need to do it now.

3/2/2006 Business—This morning’s LA times had an article about two Countrywide Employees who got nailed for insider trading. It makes me think our 10b51 web-seminar should be good timing. Maybe we should get it out sooner.
3/2/2006 PERSONAL- I think I have figured how to handle the dilemma I have with the picture of the grandkids. The problem is how to handle Cathy’s being pissed at me for getting the picture and what to do with it. Re. Cathy’s being pissed, I’ll just say what happened—and I think she will understand. I’ll take it with us to my birthday party dinner at the Ranch House and say to Cathy and Greg—I have a confession and a problem. First the confession—then tell how I had originally wanted to get this picture to give to the family for Xmas—sent it (the one with the girls sitting on a bench with the dogs) to Caren (the wife of one of my client)—I think it was in September 2005. Caren e-mailed me that she would have to think about it and would get back to me. She never did. In January of 2006, I e-mailed Dan about playing golf and meeting to discuss their situation. He said yes and that Caren had finished the picture—OOPS! Now what was I going to do? No matter what, I would have to buy the picture. When Dan and I met in late February, he brought the picture with him—and I loved it! I had already told him that I was surprised that it was done and that she never contacted me again. I asked Dan how much she wanted for it and he said “I don’t know, you’ll have to talk to Caren”. I’m thinking uh-oh, this could cost me an arm and a leg. It turned out to be very reasonable. I took it and got it framed. So at dinner, I’ll tell the story—and then ask them what should I do with it—should we keep it in our house or in my office or give it as a Xmas present to the family next Xmas? One reason I want to do this now instead of just showing up with it at Christmas is that I love the picture and want to show it to everybody.

3/3/06 BUSINESS
Incentive Stock Options( ISO’s) are a great benefit if managed properly. Too often people choose to exercise and hold for long term capital gains forgetting the Alternative Minimum Tax (AMT) ramifications. Hopefully our How to Avoid the ISO/AMT tax trap web seminar will help.
3/7/06 BUSINESS— I realized that some good topics for future web-seminars would be

Insider Trading—understanding 10b51
Managing Concentrated Positions, Puts, Calls, Collars, Exchange Funds
When does it make sense to use 83b?

3/13/06 BUSINESS- Many companies are starting to issue SARS (Stock Appreciation Rights) instead of Stock Options. The major advantage is that Dilution is reduced since only the spread between the grant price and the appreciation is paid by the company. The employee has the same advantages with SARS as he/she does with stock options. Leverage is the same with SARS as it is with stock options. The spread is taxable. Not AMT kicks in. SARS still have to be expensed just as options do—so there is no advantage to the company there. However, the restrictions imposed by Sarbanes/Oxley for Cashless Exercises have been eliminated since the employee does not have to buy any shares and will receive shares or cash as compensation. The same vesting rules apply with SARS.

3/22/06 POLITICAL—Thomas Friedman’s article today once again pushed on his theme of our becoming less dependent on oil. I am so pleased that he keeps beating on that drum. Today he referred to a speech by Senator Lugar given to the Brookings Institute. The speech was exciting because it described some bi-partisan legislation that Senator Obama and he have introduced which is a comprehensive energy policy. But more important is that he is leading the charge against the Bush administration’s “just produce more oil” mind-set. Lugar’s point is we cannot just sit back and wait for the market to force the changes. The main reason we cannot do this is that demand for oil is increasing while the supply is diminishing. This can cause serious stress throughout the world as countries compete for the resource. We need to have an energy policy which will speed up the conversion—we need such things as tax incentives for the Auto industry to re-tool, more production of ethanol, international cooperation between China, India, and US and plans for what to do if there is a crisis (such as Iran deciding not to ship to one of us). His legislation initiative suggests a multi-pronged approach instead of a silver bullet one. My hope is that enough people in our country will GET IT!

3/29/06 POLITICAL—I cancelled my membership to MoveOn—because they just became too knee jerk for me. Their original purpose was to censure Clinton and “move-on.” After that, they started taking positions on things with which I did not agree. I was especially pissed off when they automatically rejected Bush’s attempt at fixing Social Security. The Democrats did the same thing. Instead of coming up with solutions, they just knocked the president’s solution. I did not like the president’s solution either (private accounts) but at least he attempted to change the country’s consciousness about it. MoveOn is now getting behind the idea of censuring the president for the illegal wiretaps. I support that move but it is not enough for me to rejoin MoveOn. Sometimes the mentality of this country drives me nuts. We practically impeach a president for his sexual actions but barely murmur when a president gets us into a war we have no business being in and breaks the law with illegal wire taps! Now the FCC fines CBS for Janet Jackson’s breastcapade and some other sexual program—but has no problem with showing all the violence on TV. Our religious right is more upset with sex than violence. I don’t get it! It really pisses me off.

POLITICAL 4/3/06: Another thing that pisses me off is the fiscal irresponsibility of our government. We need more organizations like the non-partisan Concord Coalition to raise the consciousness of the public for the flagrant spending that is going on right now. Making tax cuts in the face of huge deficits makes no sense. I hate that my grandchildren are going to have to pay for our profligacy. This war should be paid for now with current dollars. There should be a war tax. That would be one way for the American Public to feel connected to this misbegotten war. Only our soldiers and their families (plus the Iraqis and Afghans) are in this war. If we are really in a war—the whole country should be suffering. As it is, we ordinary folks just keep spending and enjoying ourselves with an occasional upset over the war.
POLITICAL 4/7/06 Cheyne’s chief of staff testified yesterday that President Bush had authorized the CIA leaks (no direct link yet to the Valerorie what’s-her-name case). So here is what gets me. The President lied to us about weapons of mass destruction, condoned unauthorized wire taping and now is leaking CIA classified information. To me, these seem like much more serious transgressions then lying about sex. Our government comes to a standstill while we impeach President Clinton because he did not want to admit to having sex with Monica. Nobody was killed because of that lie. Nobody was maimed because of that lie. The lie did not cost an extra $200 billion a year. There is something wrong with our priorities