An interesting read…
Author Archives: efficientminds
Facebook changes privacy settings for teens
Why would Facebook loosen its teen privacy policy in the wake of yet another teen suicide connected to online bullying? I suspect the answer is simple: to make more money. Privacy and safety of teens be damned. Profits come first in capitalism.
I wonder if in some sick way Facebook sees cyberbullying as a means to expand its brand and profit. Maybe it will take more suicides and postings of drunk passed out girls for Facebook (and parents) to realize something must be done.
I don’t use Facebook simply because I don’t need to. Hopefully parents with teens will share that belief. If not, I hope they at least closely monitor their children’s internet activities. You won’t be invading their privacy. You will be doing your part to keep your child away from an increasing danger.
http://www.cnn.com/2013/10/16/tech/social-media/facebook-teens-privacy/
Macy’s to break with tradition, open Thanksgiving at 8 p.m.: employees – Chicago Sun-Times
Where is our country going? Traditions be damned? After 155 years Macy’s has decided to open on Thanksgiving day. I wonder if consumerism has gone too far. I wonder if any of the executives who receive bonuses will work from 8pm to 5am then again from 8am to 1pm. I wonder if the people shopping during those hours can truly afford what they are purchasing. I also wonder if the reason for the season is completely forgotten.
To sum it up in one sentence: i wonder if people who have forgotten the reason for the season are out spending money they don’t have at all hours, while laborers also are away from their families, so that executives who are in their expensive homes with their families can get another big bonus…
Historical risk vs. return for 12 industries
Visit my Rpubs post. Note the efficient frontier plots and weights in Section 3. It is interesting that although the Telecom sector looks undesirable in isolation (Section 2.3) it is desirable in a diversified portfolio (Sections 3.2 and 3.3). More on portfolio theory another day…
CNNMoney: how to sign up for Affordable (we hope) Healthcare
If you are not covered by a health plan this is worth looking into. At some point you will be required by law to have health insurance. Don’t fret, you are required by law to have car insurance also.
I am curious to find out if the prices on these exchanges (or more accurately stated, out of pocket costs for individuals) are really lower than comparable plans before the exchanges existed. In theory, they should be. Competition for your insurance premium dollars (which is subsidized for qualified individuals) should drive costs down. Also, there should be economies of scale associated with a given insurance company insuring more people.
Disclaimer: I am not an expert in the Affordable Care Act nor the insurance business. If anyone out there signs up, please let me know what quotes, coverages, and subsidies you receive. If you also recall recent pre-exchange quotes that would be nice to know also. You may email me directly: djm@efficientminds.com I am already covered as a CSU employee in their group plan.
http://money.cnn.com/2013/10/01/news/economy/obamacare-enrollment/
Facts…
A public service announcement from me…
When debating the pros and cons of the Affordable Care Act, make sure you base your discussion on facts. One unbiased website to get those facts is factcheck.org
Boy, I sure hope the sun will shine tomorrow if the government shuts down.
Carrying On: Teach regulation, not robbery – The Georgetown Voice
10 ways a government shutdown would affect your daily life – CNN.com
Republicans Should Trade The Debt Ceiling For A Better Budget Baseline – Forbes
So let me get this straight. For the past 30 or 40 years Congress has defined the “baseline” budget as one with automatic 6-7% annual spending increases? Please note this is not a Democrat nor a Republican construct. The auto-increase approach has lasted through many permutations of Democratic and Republican leadership over the decades.
I like the author’s suggestion that we return to the old baseline definition: just use prior year spending without any automatic increases. Isn’t that how you create your baseline budget? Who would put in automatic spending increases unconnected to any revenue increases?
The Forbes author noted the current definition for baseline amounts to political doublespeak. For example, calling an increase of 4% a “cut” or “reduction” from the baseline budget. Regardless of your party affiliation, please seek truth and understanding rather than doublespeak-based talking points.
The goal of dialogue should be understanding otherwise it is a waste of time. In the case of our politicians it is also a waste of our tax dollars going towards their compensation.
Finally, how do you think military intervention in Syria would impact the budget deficit? I for one am glad a diplomatic solution may prevail.
From APR and quoted interest rate to loan fees…
I received positive feedback after emailing the following write-up on mortgage loans to students. Perhaps it will move more people closer to understanding mortgage APRs, fees, and “rates” (quoted interest rates).:
Let loan amount = PV = 80,000
Let QIR = 4.250%
Let APR = 4.464%We saw in class how to calculate the fees embedded in the APR:
Step 1: PV = -80,000; I = APR = 4.464/12; N = 30×12; FV = 0; -> PMT=403.64
Step 2: PMT = 403.64; I = QIR = 4.250/12; N = 30×12; FV=0; -> PV=-82,050
Step 3: fees in APR = 82,050 – 80,000 = 2,050Another way to look at Steps 1 and 2:
1. Loan amount with APR -> PMT if fees are included in loan amount
2. Loan amount + fees with QIR -> PMT if fees are included in loan amount (same PMT as step #1)Step one is an implicit inclusion of fees, step 2 is an explicit inclusion of fees. Of course, you could pay the fees with a check at closing, but that is a cost that you incur. You must account for it somehow. A convenient way is to go by the APR that does include fees.
Now, should you pay the fees at closing [or roll them into the loan]? Guess what, it depends. It depends on (a) if you can afford to pay the fees at closing and (b) if there are better alternative instruments to put those fee dollars.
Right now, 30 year T-bonds return 3.80% per year. So, presuming you have the cash, it would not make sense to roll the fees into the loan. You would be borrowing $2,050 at 4.25% to invest in T-bonds that yield only 3.80%. Thus, pay the fees with a check at closing.
However, if you think you can earn 5% on average over the next 30 years, roll the fees into the loan (i.e., borrow $2,050), invest the $2,050, and pray you do earn 5%!
May you be enlightened.
Efficient Minds™ 