From California to New York and back around the South, there is story after story about HOA fees going uncollected but perhaps the real story is who gets impacted when fees go uncollected.   No money for pool cleaning means there’s a pool cleaning company losing revenue which means job cuts if the cutbacks continue.    No money for landscaping means no work for landscaping companies or their employees.   The same goes for all the other things HOA fees pay for in your local community.

With oil at $146, I find it less likely that those fees are going to be paid anytime soon.  Would you rather have gas for your car or nice landscaping and a clean pool?   The problem becomes greatly exacerbated when dues aren’t paid, upkeep isn’t done and it becomes much more difficult to sell or rent a home in the community because of the dilapidated environment so the cycle repeats itself deeper and deeper.

So in the grand scheme of things, even if you saved money, paid off your mortgage and happily pay your monthly dues every month it might not matter much if your neighbor doesn’t pay his mortgage, dues or taxes because you’ll still suffer the same when it comes to your local community.   Ultimately it begs the question, Am I my brothers keeper?  Should those that have the money to pay, cover for those who don’t to preserve the community?

Bookmark to:

Many think it’s the federal reserve that’s causing the weak dollar, some think the sub-prime mess is the cause but the real problem is a loss of confidence.   There’s no confidence in the banking system, there’s no confidence in a failed foreign policy, there’s no confidence in the job market or in the stock market.

I can only compare this to a couple that’s been happily married for 20 years until one spouse finds out the other cheated on him/her 15 years ago and all of a sudden the marriage is in jeopardy.   What exactly has changed with regards to the couple’s confidence and happiness in the marriage?  One moment, you’re happily married, and in a blink of an eye, because of some new information, the happiness evaporates.   The only thing that has changed in either example is perception.

We’ve known for decades that the US is bankrupt.  Social security, Medicare, and deficits bankrupted the country over 60 years ago.   FDR confiscated gold in the 30’s for fiat system, the gold standard was removed in the 70’s and deficits have been ballooning for decades so what’s suddenly changed?

We’re all acting like we just found out our spouse has been cheating on us 60 years after the fact and we’re shocked and depressed about it.

The only thing that will change after the election is perception.  And quite honestly, that’s all we need to get the market back up.   Time and profits will prove me right……

Happy Independence Day…..Get out there and do some shopping because things are looking better already…..

Bookmark to:

Photo: Travel Kits issued in Business / First class listed in clockwise order: Emirates, Continental, British Airways, Delta

Airlines

Quick Summary:

British Airlines - The seating, entertainment was superb for a long haul flight. The airline provides Bose Noise Canceling headset and the in-flight entertainment has many options including video on demand and video game entertainment. The staff was your typical cold and indifferent unionized employees but no airline is perfect and I can live with it as long as service isn’t sacrificed and it wasn’t. The food was edible but bland. What’s in the travel kit? Pretty typical stuff: tooth paste, eye covers, tooth brush, various hand creams, long haul socks and pen.

Continental - I couldn’t believe my ears or eyes when I saw a poor old woman carrying a baby, car seat and trying to haul a bag on a plane. The ticket counter agent said the flight attendant would help her with her items but when she got to the airplane, the flight attendant on the plane rudely blurts out, “it’s not my job to help people carry their stuff” as she rolls her eyes. I intended to write down her name and report her to Continental but never got around to it. The seats on Continental were much smaller than on BA but I managed to marginally get comfortable. The food was edible but nothing to write home about. The inflight entertainment sucked - no Bose noise canceling headset and the movies just cycle through, i.e. no video on demand. It took over 30 minutes for the movie to cycle through so you’re left with a black screen most of the time! What’s in the travel kit? Typical stuff: tooth paste, tooth brush, tissues, long haul socks, eye covers, creams, and pen.

Delta - The friendliest, warmest people I’ve ever flown long haul on. The captain and flight attendants made it a point to come out and say “thank you” for flying their airline. Never saw a person who didn’t have a smile on his/her face which made it a very pleasant flight. Unfortunately, either I’m getting fatter each flight or the seats continue to shrink. Delta has some of the WORST seats in business/first class. My hips were snugly squeezed against the seat the whole time and the retracting positions on the seat weren’t too comfortable. The food was decent and the wine selection was delectable. The video entertainment system was excellent. I caught up on four movies I hadn’t seen: No Country for Old Men, The Bucket List, There Will Be Blood and some documentary. Bose noise canceling headset provided. What’s in the travel kit? Perhaps the most color coordinated travel kit with mouth wash, tooth paste, creams, napkins, long haul socks and eye covers all in red!

Emirates - The staff on Emirates was exceptional. Not only do you get a warm towel before meal service, it has a tinge scent of something very pleasant. Emirates staff actually came to my seat and set down a cushion pad for me to sleep in overnight. The seats were large and comfy and reclined 180 degrees. The inflight entertainment system was amazing. A full 22” LCD TV monitor with THOUSANDS of movies to watch arranged in a neat library with a wireless PDA controller. Bose noise canceling headset standard. The airplanes feature a forward and down looking camera on the planes which can be displayed on the LCD so you always know what’s going on outside - even in the middle seat! The meal and service was excellent along with scrump-diddly- dicious wine. I had ZERO complaints about anything on Emirates except that they don’t fly domestically in the U.S. otherwise they’d earn all my business! What’s in the travel kit? Amazing! I was actually surprised at what was in the travel kit. First, the Emirates kit has a leather covering with a gold embossed logo. Second, I never expected to find Bvlgari cologne and creams inside the kit. Shaving cream AND a razor? Qu’est-ce que c’est? Who do these people think they are? Deodorant, tooth brush, tooth paste and tissues provided in the elegant bag. The eye covers were made of some type of soft leather not your typical vinyl like everyone else. Quite a difference no?

So in this round, Emirates is the clear winner and the only other airline that comes close is British Airways but they still have a lot of work to do if they want to provide the level of service Emirates does during their flights!

Bookmark to:

I was in the South Pacific a few years ago and absolutely fell in love with some local goods: wine, honey, etc. but had to keep limiting my purchases because the local airline had draconian weight restrictions on the return flight. The fee was about $5 per kilo of additional weight beyond allowance.

Let’s put this in perspective, I failed to buy about $1000 worth of goods because the airline was going to charge me about $100 extra in luggage fees. I know it sounds crazy, but paying an airline extra money to haul my stuff back just irks me so I don’t shop as much. The effect is cumulative so instead of buying 4 T-shirts at a shop, I’ll buy just one. Instead of buying two bottles of wine, I buy one. Instead of buying large works of art (sculptures, vases, paintings, etc), I’ll buy none.

On the other hand, if the market place offered a $100 airline luggage voucher and a free suitcase for say, $1000 worth of purchased goods, I might be inclined to actually spend $1000 at the market.

Bookmark to:

Yup, spending less than you earn is going to do wonders for your portfolios now isn’t it?   Soon enough, banks will start failing and your savings will go poof!   I know what you’re thinking, “My funds are FDIC insured” and I can only giggle as you’ll soon learn just how “insured” your funds really are…..smirk…….

When the subprime mess, high inflation and public malaise devastate us all you’ll be able to gloat about how it wasn’t your fault

Bookmark to:

Here’s a quote from an article,

Delta Air Lines said Monday it will begin charging fees for customers cashing in their frequent flier miles. Starting Aug. 15, Delta will add a $25 fuel surcharge for flights to domestic destinations and Canada. It will charge $50 for international flights.

The other problem is that airlines are cutting flights and destinations as American Airlines has made the most changes.

NEW YORK (CNNMoney.com) — As oil prices continue to break records, the nation’s six leading airlines have announced capacity cuts for 2008, trimming flights in major hubs and cutting off service to dozens of discount destinations.

All told, the industry will cut capacity by 9% in 2008, according to James Higgins, analyst for Soleil-Solebury Research.

I expect to see announcements of even higher miles redemption requirements before the end of the year along with more fees for redemption.   It’s really getting ugly in airline land now.

Bookmark to: