Gallery

Wednesday, November 16, 2011

bmw 5series

bmw 5 series
bmw 5series dashboard
 bmw 5series interior
 bmw 5series 2011 interior
 bmw 5series on the road
 bme 5series test drive
 bmw 5series new
 bmw 5series test speed
 bmw 5series wallpaper
 bmw 5series back view
 bmw 5series black
 bmw 5series in auto show
 bmw 5series front view
 bmw 5series snapshot
 bmw 5series image
 bmw 5series photo
 bmw 5series 2011
 bmw 5series perform
 bmw 5series and man
 bmw 5series seat

Bmw 5series review
Bmw 5series,World debut of the new BMW 5 Series Sedan marks the epitome of driving pleasure in the world of modern design and premium midsize sedan. Look at the campaign and his leadership, the driving dynamics typical of BMW, through the comfort and safety and innovative features, the sixth generation of the BMW executive express is exactly the world's most successful luxury car reflect the standards supported by the manufacturer.
Design: Athletic and charismatic.
The longest wheelbase in the segment, a long hood and slim, coupe-like roofline and the short overhangs, new BMW 5 Series Sedan, stands out clearly from the competition. Overall, the exterior of the car is made in balanced proportions.Architectural features, the stylish and elegant side view of a car, a symbol of the BMW kidney grille and front slightly bent forward position, and finally back muscles.
Interior, precise and perfect harmony, featuring a blend of cool and clear directions to the driver and a unique style.
Reference dynamics, comfort and excellence: driving experience.
Transmission and advanced suspension technology, combined with high standards of passenger comfort and agility for the driver. When equipped with Sport Package, BMW 5 Series Sedan New Adaptive Drive that contains the driving dynamics control, and includes active roll stabilization and electronic damper control. The optional Integral Active Steering, for better stability at high speed and agility at a substantially lower rate, extend or shorten the wheelbase of the vehicle.
At launch, the new BMW 5 Series Sedan, V - Line 8 - 6 petrol engines are available in. The range of the finest BMW 550i BMW high-precision direct injection with a maximum power of 400 horsepower turbocharged and two "reverse" V - 8 engine comes with. The new line - 6 BMW 535i for single, twin-scroll turbocharger, high-precision direct injection, and for the first time, and is equipped with gas-less Valvetronic vacuum technology. It provides a maximum power of 300 hp and 300 lb-ft. Wu and fifth hundred fifty one hundred thirty fifth, six-speed gearbox, eight-speed automatic transmission, BMW, or a new "Auto Sports" will be available 8 speed options.
Later, BMW
hundred and twenty fifth of lightweight magnesium - 240 HP on-line gas-less Valvetronic Vacuum Technology for unmatched efficiency and responsiveness and aluminum construction - will debut at 6.
Efishen BMW: BMW 5 Series is to increase the lead.
Efishen BMW technology, power steering, shift point indicator, active cooling fins, including features such as Brake Energy Regeneration, including on-demand operation of the engine and accessory unit, the appropriate combination of each model are present in the be. Lightweight materials, vehicle balance, in order to lighten its weight, is used intelligently. For example, such a door, hood, front fenders, and suspension components are made of aluminum assemblies.
Innovative driver assistance systems.
Driver assistance systems offered in the new BMW 5 Series, Active Cruise Control with time to order a stop and go again, a new parking assistant, includes a front-view camera and collision warning at the top of the brake application. Other features, driver assistance available blind spot alert, lane departure warning system, heads-up display, and BMW Night Vision with Pedestrian Detection.
BMW - joint development and production with the 7 Series.
World debut of the new BMW 5 Series Sedan is the latest chapter opens truly impressive success story. In the course of five model generations, the total sales of the BMW 5 Series has already reached 5.5 million units. Now the new model, also present in the BMW 7 Series luxury sedan, based on newly developed vehicle architecture.
BMW's factories operating Luffy dingo with the widespread use of shared components with the BMW 7 Series and BMW 5 Series Saloon,, co-produced the highly efficient production ensuring the highest quality standards.
Exterior: the perfect balance of dynamic proportions.
Proportion of new BMW 5 Series Sedan, hood and long wheelbase, short overhangs, rear conservatory set is defined by a style typical of the BMW coupe-like roofline that flows and. Slightly wedge-like shape of the body, creates a sporty forward movement of the characters. BMW's new interpretation of the nodes at the bottom of the signature Hofmeister C-pillars, which emphasizes the dynamic look of the car's profile further.
Silhouette, for all engines, giving a clear indication of a near-perfect weight distribution front to rear, and all the superb balance. Design of the sculpture, the new BMW badge, while providing a flow of lines along the side facing toward the rear, 2.97 m and 116.9 ", measuring the pitch of the new BMW 5 Series is the longest part of the car is., if everything from a single mold, to create a fit body.
Front and charismatic, graceful hands, the back muscles.
Representation in front of the new BMW 5 Series Sedan has a sporty character of the car. Kidney grille BMW's upright - as viewed from an angle of some lean before - to symbolize the movement by pressing the front of the hall, and the wheel arches flared very together, giving the front of the charismatic powerful car The.
While it is composed, respectively 10 LED unit indicators to move outward, adaptive xenon BMW (in pots hundred and twenty fifth option) in conjunction with, the ring unmistakable very daytime running lights incorporating the LED crown.Highlights of the last fire of the LED light marks the upper edge of each headlight unit.
Coupe-like roofline and windows, along with stretched surfaces, door openers, on the border that runs along the picturesque drive to the side slightly flared shoulder, the appearance of the passenger-side window section gives a light and tight, despite its size. Bright light and shadow to create a form that highlights the sporty character of the saloon concave, lower down the body. Greater curvature of the rear wheel around, and eventually leads to clear evidence of a rear wheel drive BMW's typical of this type.
Line dynamic vehicle can not be seen as a sedan, BMW has been enhanced by a reverse rotation compact surprisingly at the bottom of the C-pillars further at this point never at minimum radius, re-interpretation of this Hofmeister kick a typical is to emphasize the slender silhouette of the car, lightweight passenger cell provides a low-aspect.
Parallel to each other, and the rise of the threshold contour, dynamic, and extends from front to rear lights to create an elegant and dynamic appearance of the first car.Sculptural shape typical B MW was established in this way is to reverse the side sections to each other and literally.
Contour, followed the contours of the rear lights, meet on the last plate. Viewed from the back, in new BMW 5 Series Sedan, the arch can clearly see the life-giving body that stands out through the concave surface between the contour and the wheel. And wheel arch flares, the horizontal division of the latter, in turn, highlights the strong position of the sedan strongly reinforce this impression arch ends the same height as the wheel and the wide track wheels.
L-shaped rear light clusters, which reflects the unique design provides a typical appearance that night and again the BMW. Three rows of LED lights, enough to form an equally glowing appearance characteristic of BMW. And last but, turn signals and brake lights also come in LED technology.
Clear direction to the driver of modern cockpit
Cockpit, asymmetrical design of the center console and angled toward the driver at an angle of about 7 °, the driver has a clear emphasis in this direction. The horizontal line in the instrument panel emphasizes the sense of space.
As with all BMW energized, well-researched ergonomics to allow optimum operation of driving controls and other functions. Handles are positioned for use in the passenger seat and driver centrally and buttons display for functional and comfortable for everyone, control of the driver to use, or at the steering wheel on or near, the steering wheel located on the left of the front center console. Steering wheel with tilt away adjustment and telescopic for input and output slope of the power, and, of course, the front seat of both, including the height of the head are standard adjustments 10-way power .
The seating position is 13 millimeters or 0.5 "of rear knee room for the new BMW 5 Series sedan has improved both the front and rear than before. Luggage compartment capacity is 18.2 meters in more than 520 liters. Options Because the flexibility to expand transportation capacity vehicles, the cube can be used, and folding rear seat backrest. In addition to the 40:60 split, through loading feature is the rear seat backrest has been provided as yet another option, ski bag for convenience.
Black Panel instrument cluster technology.
As with many aspects of the new BMW 5 Series Sedan, BMW's instrument panel, sophisticated, and beautifully combines traditional and new executions. Ship, if any, tracking vehicles, including the needs of the service - where the entire cluster is the most important instruments of circular classical four have been measured and related drive current of the other panel black high-resolution display is imminent, and other information - also various (and function-related) are displayed in graphic form.Are placed in a second Black Panel display in the center console stack configuration and control of air conditioning.
Four generations of the IDrive, intuitive, powerful and fast.
New BMW 5 Series sedan, a fourth-generation control screen displays the BMW IDrive has two versions: 7.0-in. X 480 pixels and the standard form or the optional navigation system and 800 dazzling 10.2-inch size,, 1280 × 480 pixel version with a wide range of features and functions such as the new BMW 7 Series. Is semi-transparent display so that you increase the image on the screen is actually sunlight.
Instrument cluster interacts in new ways and the available head-up display and a display control IDrive. Depending on the selected function, users can call a phone number or radio stations via the steering wheel. The display panel, the driver can change the lane to help negotiate a complex junction, directional and realistic way to display the options IDrive, improve navigation. If the optional head-up display is activated, you will see the relevant instructions.
Materials and colors will enhance the elegance.
Enhance the impression of personal interaction in the surface lines and more luxury and choice of colors and materials. For fine-grained upper section of the dashboard, there are two colors depending on the selected color for the interior.That is standard on the five hundred fifth the Dakota leather, available in a combination of six colors, including the new two and three, BMW nappa leather luxury, a combination of three colors are available as options.
Interior Trim Solid Dark Bar Ash, dashboards, and appeared to spread radical on the front center console and doors, a typical case, anthracite ash (gray) trees characteristic of another called FineLine and mat is optional .
The center console is available for two categories: car with a console for manual transmission, divided into two sections, black surface around the buttons and gear lever on the driving dynamics of options to control the orientation towards the driverThe. Key support has been arranged between the lever and climate controls.
In models with automatic transmission, the space between the climate control unit with electronic gear selector lever provides enough space for two cup holders and key ring. An additional storage compartment IDrive (where there is another cupholder manual transmission model) is located behind.
Powertrain Dynamics nature of the BMW EfficientDynamics.
New BMW 5 Series is a choice of three petrol engines are available in the U.S.. In its introduction, the new 5 Series will be available as Wu and fifth hundred fifty one hundred thirty fifth. XDrive all-wheel drive variants
a hundred and twenty fifth of all three models will arrive later this year.
Fifth Extraordinary hundred and fifty, 4.4 liter BMW, 400 horsepower twin-turbo V - 8 engine is equipped. Previous BMW's usual V - 8 compared to the suction, the shift is reduced from 4.8 to 4.4 liters and twin turbochargers and direct injection equipped with high precision. Quantitatively, the new engine range 6400-5500 rpm delivers 400 horsepower. Maximum torque is available at 450nm over a very wide range of 1800
4500 RPM, is. From the dramatic thrust that drivers will notice subjectively independently of objective data are dramatic too: just 5.0 seconds 0-60 miles per hour when equipped with sport package 150 mph (preliminary) and maximum speed and estimated be. In this model, the maximum speed with no sport package is limited to 130 mph.
Thanks to its unique reverse flow layout, the fifth hundred and fifty, V - 8 engine, which has greater power to achieve much higher fuel consumption without. In technical terms, the approach will contain details of some very new design. First, the catalytic converter and exhaust cleaning twin turbochargers, V two - are located between the banks of eight cylinders. In turn, this is (driven by exhaust gas) needed a camshaft and exhaust valves to be kept on board a short path from the cylinder turbo. One of the main advantages of this layout is a more compact engine package. It is conventional V - A opposite 8-layout, V and - open a new era of development potential 8 engine.
BMW inline six-cylinder gasoline engine last is the engine for the fifth hundred and thirty-five new sedan. It is single, has a 3.0-liter twin-scroll turbocharger and displacement. In addition to direct High Precision Direct Injection, the new engine, BMW BMW Valvetronic technology and gas-free vacuum with twin turbochargers - the beginning of the line to be 6. BMW's EfficientDynamics technology combination of these dynamics, the Red Line from idle, throttle response and provides excellent fuel economy and emissions significantly reduced. The new engine has an output of 300 hp and 300 Nm of torque at 5800 rpm. Peak torque is an incredibly remarkable for accessibility: 300 lb-ft is available from the entire 1200 rpm - at 5000rpm.
8-speed automatic transmission Innovative play a supporting role.
All new BMW 5 Series models, fluid changes to a new level of perfection, eight-speed automatic brings sportiness and efficiency, will be equipped. Compared to the typical six-speed automatic offered in past BMW models, 8-speed "high" gear cruise, not only contributes to reducing fuel consumption and emissions important to make the peace of mind. Its wide dissemination of reports to and from lowest to highest gear, accelerate and improve the response rate in the range.
Strictly speaking, this new automatic attribute, two additional reports (7 and 8), which is achieved through an innovative concept that provides an increase in volume or weight. The contract has not been used in the automatic 8-speed so far, clutch packs and five gearsets planet four rather than two ways a 5 clutch pack up and is controlled to prevent freewheeling at any time. So-called "efficiency gear is" greater than 98% of all eight gears: a gradual increase in the number of mechanical elements, you can achieve very high efficiency of new transmission. Because this is live, with six-speed gearboxes without it entirely, and best of all. Reduce friction and torque converter, the total operating time of more "locked up" and combine this by maintaining a transmission is part of the concept of the new BMW 5 series of highly efficient overall . "
Shift faster, smoother, more efficient: two additional gear means the progress of the triple.
Wide spread of ratios, especially the engine "high" gear, 8 and can operate at lower speeds. In this wide spread, even yet, which reduces the difference in level between adjacent gears, in turn, this strong power when accelerating, which means a smoother flow.
Because out of gear or two up and down the clutch packs only, the same reason, faster shifts, there are additional benefits. On the other hand, is realized as a direct passage of at least two climbing gear. For example, a withdrawal is made from a single climbing gear clutch 2-8 pack, and it occurs without the intermediate step-down through the gears. The driver immediately so quiet, fuel-efficient low-speed gear 8, the next moment you can enjoy and get the maximum acceleration.
Manual transmission: Continuing the tradition of BMW
BMW is the car's sporty nature as well, underlining the commitment of the BMW driving enthusiasts, competition Mon BMW 5
9 "which continues to be the only manufacturer to offer a manual gearbox.
Wu and 550i sedan hundred and thirty fifth, providing a unique level of involvement of the driver of the segment in the U.S. in the six-speed manual will be provided.
Brake Energy Regeneration: energy-saving innovation.
New BMW 5 Series Sedan, continues to roll out the BMW Brake Energy Regeneration system in the U.S. model. To save energy and reduce consumption of vehicles over time, this system manages the time the alternator recharges the batteries.
Historically, the car's alternator runs constantly so that it is constantly charging the battery of the car. In the new BMW 5 Series, we are the only vehicle deceleration and braking, when the charge is not consuming power from the engine and effectively, especially free-spirited. Electronically controlled clutch similar to those used in air conditioning compressors, are used to arm and disarm the alternator.
LCM is no vehicle access to electrical charge, to meet the high demand, followed by corresponding special charge of the vehicle a more powerful battery. The battery is not in its internal boron silicate glass plates, separated by absorbent material saturated with liquid electrolytes normal "glass mat" technique called, and use. This structure is dramatically heating power, it is possible to provide the necessary power to the long period between the charge and reduce the conversion of rechargeable batteries.

Architecture Indexes Improve in October

"After a sharp dip in September, the Architecture Billings Index (ABI) climbed nearly three points in October (see chart above). As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the October ABI score was 49.4, following a score of 46.9 in September. This score reflects an overall decrease in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 57.3, up from a reading of 54.3 the previous month."

Related: See Reuters report here.

Insider Trading, Congress Style



On CNBC this morning Author Peter Schweizer discussed his forthcoming book “Throw Them All Out: How Politicians and Their Friends Get Rich off Insider Stock Tips, Land Deals, and Cronyism That Would Send the Rest of Us to Prison."

IJ Goes Up Against the Connecticut Dental Cartel



Institute for Justice -- "Teeth-whitening services are popular and increasingly available at spas, salons and shopping malls. This has been a boon for consumers because these businesses offer whitening services at a much lower cost than dentists do, often charging less than 25 percent of what a dentist would charge for similar results.

There is one group that is not smiling about these new, low-cost teeth-whitening services: the Connecticut Dental Commission. In June, the Commission ruled it is a crime punishable by up to five years in jail or $25,000 in civil penalties for anyone but a licensed dentist to offer teeth-whitening services, even if the customers apply the product to their own teeth.

Teeth-whitening products are regulated by the FDA as cosmetics, which mean anyone—even a child—can purchase them and apply them to his or her own teeth without a prescription and without supervision or instruction.

The Dental Commission's ruling has nothing to do with public health or safety and everything to do with protecting licensed dentists from honest competition." 

Watch video above, and here's background information from IJ, and here are some news reports here, here and here.

CPI Factoid of the Day: Natural Gas Prices -2.2%

Interesting factoid from Table A above (click to enlarge) in today's CPI report:

Compared to one year ago, every category of goods and services has increased except for one deflationary item: "Utility (piped) gas service," which has decreased by 2.2% from October 2011.  As I reported recently, natural gas futures prices for the month of November are the lowest in ten years, so the decline in natural gas prices for consumers is likely to continue through the winter.   

Welcome to America's shale gas revolution.

Chart of the Day: Gas Prices in Europe vs. USA


HT: Robert Kuehl

Tuesday, November 15, 2011

Amazing Time Lapse Views of Earth from Space


Earth | Time Lapse View from Space, Fly Over | NASA, ISS.

The video above features time lapse sequences of photographs taken by the crew of expeditions 28 & 29 onboard the International Space Station from August to October 2011 at an altitude of around 350 km.

HT: Sprewell

Happy 40 Year Anniversary Information Age 2.0

INTEL -- "The microprocessor has been the engine of the digital revolution that has changed our society dramatically over the past few decades, democratizing access to information and making for a more equalitarian world. This year Intel celebrates the 40th anniversary of the microprocessor and the 40th birthday of the Intel® 4004 which was the first customer-programmable microprocessor to become available on the commercial market."

MP: After the invention of the printing press in the 15th century that started Information Age 1.0, the commercial introduction of the mircochip in 1971 was the second most important information-related breakthrough in human history. Thanks to the introduction of the microprocessor in 1971, we can celebrate this year the 40th year anniversary of Information Age 2.0.  

Even in a Sub-Par Jobless Recovery, There Are Labor Shortages in the U.S. and Around the World

1. Wall Street Journal article "The $200,000-a-Year Mine Worker" (HT: Bob Wright):

"Demand for [workers] willing to work 12-hour days in sometimes dangerous conditions, while living for weeks in dusty small [mining] towns, is huge.

"It's an historical shortage," says Sigurd Mareels, director of global mining for research firm McKinsey & Co. Not just in Australia, but around the world. In Canada, for example, the Mining Industry Council foresees a shortfall of 60,000 to 90,000 workers by 2017. Peru must find 40,000 new miners by the end of the decade.

Behind this need for mine workers is a construction boom in China and other emerging economies that has ramped up the demand for iron ore, used to make steel, and other metals used in construction, such as copper, typically used for wiring buildings.

The [labor] shortage is particularly acute in Australia, the world's biggest source of iron ore and the world's second-biggest gold producer. The Minerals Council of Australia estimates the country needs an additional 86,000 workers by 2020, to complement a current work force estimated at 216,000.

"It's a tight labor market and difficult cost environment," said Ian Ashby, president of BHP BillitonLtd.'s iron-ore division. To attract workers, BHP and other companies are building recreation centers, sports fields and art galleries in hardscrabble company towns."

MP: Maybe that's what will happen in places like Williston, ND?

2. Business Week article "Why Americans Won't Do Dirty Jobs":

"Alabama enacted an immigration law in September that requires police to question people they suspect might be in the U.S. illegally and punish businesses that hire them. The law, known as HB56, is intended to scare off undocumented workers, and in that regard it’s been a success. It’s also driven away legal immigrants who feared being harassed.

[There] are [now] thousands of vacant positions and hundreds of angry business owners staring at unpicked tomatoes, uncleaned fish, and unmade beds. “Somebody has to figure this out. The immigrants aren’t coming back to Alabama—they’re gone,” says Randy Rhodes, owner of Harvest Select, a catfish processing plant. “I have 158 jobs, and I need to give them to somebody.”

There’s no shortage of people he could give those jobs to. In Alabama, some 211,000 people are out of work. In rural Perry County, where Harvest Select is located, the unemployment rate is 18.2%, twice the national average. One of the big selling points of the immigration law was that it would free up jobs that Republican Governor Robert Bentley said immigrants had stolen from recession-battered Americans. Yet native Alabamians have not come running to fill these newly liberated positions. 

Many employers think the law is ludicrous and fought to stop it. Immigrants aren’t stealing anything from anyone, they say. Businesses turned to foreign labor only because they couldn’t find enough Americans to take the work they were offering.

At a moment when the country is relentlessly focused on unemployment, there are still jobs that often go unfilled. These are difficult, dirty, exhausting jobs that, for previous generations, were the first rickety step on the ladder to prosperity. They still are—just not for Americans."

MP: More evidence that there's been a structural shift in the U.S. economy (especially the second story), leading to a temporary mismatch between the jobs available (which might be plentiful) and the skills and willingness of available employees to fill those jobs (which might be scarce), which is contributing to a stubbornly high jobless rate. 

Fact of the Day: North Dakota Oil Production Approaches OPEC Member Ecuador's Level

BLOOMBERG -- "Surging crude output in the Bakken shale formation is set to make North Dakota a bigger oil producer than OPEC member Ecuador. The CHART OF THE DAY above tracks North Dakota’s production, which has almost doubled in the past two years, as Ecuadorean output has stagnated."

Markets in Everything: Canine Food Truck

"Fido to Go is Chicago's premier gourmutt food truck serving hand-crafted canine cookies & doggy ice creams! Find us out and about at the city's dog parks, beaches, and special events. We are also available to cater doggy parties and can even provide the games, activities, and photographer!"

HT: Mike W. 

Quote of the Day on Taxpayers as the Government's ATM, and Really Expensive $500 Haircuts

"The government's chief asset—in fact, pretty much its only asset—is its ability to tax people, now and in the future. The taxpayers are the government's ATM. Make a withdrawal today, and there's less available tomorrow.

Now the ability to tax is a pretty huge asset and the government has not (yet!) come close to depleting it. In that sense, there's a lot of money in the bank. But no matter how much you've got in the bank, a policy of ever-increasing withdrawals is nothing at all like a decision to earn more income. It's important to get the analogy right. And it's clear from the blogs and the op-ed pages that not everybody gets this.

Instead, the notion persists that an extra trillion in federal spending can be converted from "irresponsible'' to "responsible'' as long as it's accompanied by an extra trillion in tax hikes. That's like saying a $500 haircut can be converted from "irresponsible'' to "responsible'' as long as you withdraw the $500 from your bank account. If the super committee loses sight of this fundamental truth, it is doomed to fail."

~Steven Landsburg in today's WSJ

Jobs in Texas vs. California (the Lost Decade State)

Following up on a CD post yesterday about companies leaving California in record numbers, the chart above shows the difference in employment levels between California and Texas. While Texas employment was stable through the recession and is now 242,000 jobs above the December 2007 level, California lost jobs for 23 consecutive months starting in February 2008 and the September employment level is more than one million jobs below December 2007.  In every month since September 2009, the employment level in California has been below 16 million, which is back to the employment level of 2000, more than a decade ago.  In contrast, Texas employment is about 14% above the 2000 level.

Further evidence of companies and employees leaving California for better opportunities in prospering states like Texas is provided by the U-Haul rates for a one-way 26-foot truck rental:
 
Dallas to LA: $1,024
LA to Dallas: $1,762
Premium to leave California for Texas: 72.1%

Houston to LA: $892
LA to Houston: $1,884
Premium to leave California for Texas: 111.2%
  
Assuming that one-way U-Haul truck rental rates are based on relative demand, there are a lot more people and trucks leaving California for Texas than vice-versa, resulting in huge premiums to rent trucks going to Texas and large discounts for trucks going to California. 

Related: "The Long Stall: California’s jobs engine broke down well before the financial crisis," by Wendell Cox in City Journal and commentary at Coyote Blog.  (ht: morganovich)

Markets in Everything: Price Check iPhone App


"As we near Black Friday and Cyber Monday, Amazon is launching a new way to comparison shop on the go. Called Price Check, the free iPhone app allows users to scan the barcode of a product, take a picture of an item or say the product’s name to access product listings on Amazon.com’s marketplace. If the product is listed on Amazon, customers can then purchase the item with one click."

Austrian School Economist Hayek Finds New Fans

NPR had a segment today on Nobel economist Hayek, with some commentary from Cafe Hayek's Don Boudreaux.

Yesterday Ayn Rand was featured.  

Monday, November 14, 2011

Housing Slump Leads to Some Unusual Outcomes

1. "Here in Merced, California a city in the heart of the San Joaquin Valley and one of the country’s hardest hit by home foreclosures, the downturn in the real estate market has presented an unusual housing opportunity for thousands of college students. Facing a shortage of dorm space, they are moving into hundreds of luxurious homes in overbuilt planned communities."



2. "Las Vegas has a pot home problem. And like many of the region's maladies, it's tied to the housing slump. Major cultivators spend tens of thousands of dollars turning cheap homes into greenhouses. Last year, authorities took down 153 indoor grow sites in Nevada and seized more than 13,000 plants, compared with 18 sites and 1,000 plants in 2005, the U.S. Drug Enforcement Administration said."


Chart of the Day: Structural Shift in U.S. Economy

I have featured charts similar to the one above that displays real GDP and civilian employment over the last ten years.  More than any single chart, I think this one really helps to accurately describe the current state of the U.S. economy:

1. Measured by real output (GDP), the U.S. economy has made a complete recovery from the 2007-2009 recession now that real output in Q3 was higher than the 2007 Q4 level when the recession started. 

2. While real output has completely recovered to above pre-recession levels, U.S. employment at 139.6 million is still 6.6 million jobs (and 4.5%) below the 2007 peak of 146.2 million, and that translates into the ongoing "jobless recovery."   

3. The recovery of real output to historical highs with 4.5% fewer employees has also translated into record-level corporate profits, which are now almost 40% above pre-recession levels.  

4. The recovery of both output and profits to above 2007 levels with 6.6 million fewer workers could explain the sluggish job growth that will probably continue for several more years.  If companies can produce more output now than in 2007 with fewer workers and record profits, where's the incentive to hire more workers?  

The Great Recession stimulated huge productivity and efficiency gains as companies shed marginal workers and learned how to do "more with less (fewer workers)."  The surge in productivity over the last few years may be unprecedented in recent history and may be responsible for a "structural shift" in the U.S. economy that will have long-lasting effects, e.g. an extended period of time with a jobless rate above 7%

From ‘Made in China’ to ‘Bought in China’

Fact of the day:

Boston Globe -- "China is now the world’s largest consumer in a number of categories, including beer, cigarettes, and — remarkably — cars. Some Western automakers have begun skipping US and European markets and debuting models in China first."

Markets in Everything: Chipotle Asian Style

Washington Post -- "With more than 1,000 locations in North America and the United Kingdom, most of us are exceedingly familiar with Chipotle’s colossal mountains of Mexican deliciousness. But at least for the foreseeable future, ShopHouse Southeast Asian Kitchen — the brand new brainchild of Chipotle CEO Steve Ells that just opened recently — has only one location: Dupont Circle (DC). 

Chicken and pork meatballs, right, are one of the meat offerings at ShopHouse. The new fast-casual concept has the same pick-and-choose style of Chipotle: Choose either a banh mi sandwich or a rice bowl, with your choice of chicken satay, tofu, steak or chicken and pork meatballs. The sandwiches are topped with green papaya slaw, herbs and crushed peanuts, while the rice bowls offer your choice of veggies, sauces, toppings and garnishes. Early favorite toppings include those with the word “spicy” in them: spicy red curry sauce, spicy charred corn and the even spicier long beans."

Here's the menu.  I've tried it twice and really liked it. I predict success. 

Companies Continue to Leave Anti-Business California in Record Numbers to Save 40% in Costs



Los Angeles - "It's time to take a hard look at why businesses are leaving the state.

Since 2007, more than 2,500 employers have left California. They've taken about 109,000 jobs with them. Why is that happening and... more importantly... how can it be stopped?

Joseph Vranich, a business relocation expert, explains the exodus in the video report."

According to Joe Vranich, "Business leaving the City of Los Angeles for a nearby county can save up to 20% in costs while moving to another state can save up to 40% in costs."

BMW 5 Series Gran Turismo IMOTOR Review



BMW 5 Series Gran Turismo iMOTOR Review

BMW 5 Series Gran Turismo iMOTOR ReviewiMOTOR tests out the controversial new BMW 5 Series Gran Turismo. So just what's the point of this car? For more like this go to www.i-motor.co.uk

It's Not Just Members of Congress Who Benefit from Insider Trading, Congressional Staff Also Gain

Wall Street Journal (October 11, 2010) -- "At least 72 aides on both sides of the aisle traded shares of companies that their bosses help oversee, according to a Wall Street Journal analysis of more than 3,000 disclosure forms covering trading activity by Capitol Hill staffers for 2008 and 2009. 

"Congressional staff are often privy to inside information, and an unscrupulous person could profit off that knowledge," says Vincent Morris, a spokesman for Rep. Louise Slaughter (D., N.Y.), a leading backer of the "Stop Trading on Congressional Knowledge Act," or STOCK Act. "The public should be outraged there is no law specifically banning this."

Congressional aides have ringside seats on the making of laws that affect American business. Receiving salaries up to roughly $170,000 a year, they can glean information about policies and government action before the public. They have access to information about hearings or legislation that can move stocks and markets." 

HT: Cyril Morong

Happy Birthday P.J. O'Rourke

It's P.J. O'Rourke's 64th birthday today, here are some quotes:

1. Giving money and power to government is like giving whiskey and car keys to teenage boys.

2. If you think health care is expensive now, just wait until you see what it costs when it’s free.

3. The Democrats are the party that says government will make you smarter, taller, richer, and remove the crabgrass on your lawn. The Republicans are the party that says government doesn't work and then they get elected and prove it.

4. The mystery of government is not how Washington works but how to make it stop.

5. The Clinton administration launched an attack on people in Texas because those people were religious nuts with guns. Hell, this country was founded by religious nuts with guns. Who does Bill Clinton think stepped ashore on Plymouth Rock?

6. Social Security is a government program with a constituency made up of the old, the near old and those who hope or fear to grow old. After 215 years of trying, we have finally discovered a special interest that includes 100 percent of the population. Now we can vote ourselves rich.

7. When buying and selling are controlled by legislation, the first things to be bought and sold are legislators.

8. No drug, not even alcohol, causes the fundamental ills of society. If we're looking for the source of our troubles, we shouldn't test people for drugs, we should test them for stupidity, ignorance, greed and love of power.

9. If government were a product, selling it would be illegal.

10. Feeling good about government is like looking on the bright side of any catastrophe. When you quit looking on the bright side, the catastrophe is still there.

11. America wasn't founded so that we could all be better. America was founded so we could all be anything we damned well pleased.

12. Bureaucrats want bigger bureaus. Special interests are interested in whatever's special to them. These two groups bring great pressure to bear upon politicians who have another agenda yet: to cater to the temporary whims and fads of the public and the press.

13. People who are wise, good, smart, skillful, or hardworking don't need politics, they have jobs.

14. If we're going to improve the environment, the first thing we should do is duck the government. The second thing we should do is quit being moral. Screw the rights of nature. Nature will have rights as soon as it gets duties. The minute we see birds, trees, bugs, and squirrels picking up litter, giving money to charity, and keeping an eye on our kids at the park, we'll let them vote.

15. The U.S. Constitution is less than a quarter the length of the owner's manual for a 1998 Toyota Camry, and yet it has managed to keep 300 million of the world's most unruly, passionate and energetic people safe, prosperous and free.

16. When you look at the Republicans you see the scum off the top of business. When you look at the Democrats you see the scum off the top of politics. Personally, I prefer business. A businessman will steal from you directly instead of getting the IRS to do it for him. And when Republicans ruin the environment, destroy the supply of affordable housing, and wreck the industrial infrastructure, at least they make a buck off it. The Democrats just do these things for fun.

Markets in Everything: Superhydrophobic Coating



The product NeverWet provides water repellent, anti-corrosion, anti-bacterial, anti-icing and self-cleaning properties to anything it coats. Your stuff will never get wet again, check out the video above.

Natural Gas Prices at 10-Year Low for November

WSJ Blog -- "Home heating costs for many Americans will be lower this year. Natural gas futures closed on Friday at $3.58 for a million British thermal units, down 20% from early June (see chart, data here). In a typical November, natural gas prices start rising in anticipation of higher demand, but this year a supply glut is weighing on the market. It has been 10 years since prices were this low heading into the winter."

MP: The chart above shows inflation-adjusted natural gas futures prices back to 1994.  November futures prices of $3.58 are 14% below a year ago, 39% below two years ago, about half of the price in November 2008 of $7.13 and well below the average real price of natural gas futures contracts over the last decade of $6.73.  Welcome to the shale gas revolution.     

Above the Law: Insider Trading on Capitol Hill



On Saturday, there was a CD post featuring a preview of the "60 Minutes" segment "Congress: Trading stock on inside information?" The full episode aired last night and appears above; it's based on Peter Schweizer's forthcoming book, "Throw them All Out." Following a preview by Steve Kroft, here's how the segment opens:

Peter Schweizer: "This is a venture opportunity [being in Congress], this is an opportunity to leverage your position in public service, and use that position to enrich yourself, your friends and your family."

Sunday, November 13, 2011

Quote of the Day on the Cornucopia of Taxpayer Dollars for Renewable Energy, aka Crony Capitalism

“It is like building a hotel, where you know in advance you are going to have 100 percent room occupancy for 25 years,” said Kevin Smith, chief executive of SolarReserve, whose Nevada solar project has secured a 25-year power-purchase agreement with the state’s largest utility and a $737 million Energy Department loan guarantee and is on track to receive a $200 million Treasury grant. 

Interesting Fact of the Day: As the "Saudi Arabia of Natural Gas," the U.S. Could Become an Exporter

Philadelphia Inquirer (fixed now) -- "Now, another potentially large rival market for natural gas is emerging: Exports.

The Department of Energy has received five applications from companies that want to create terminals to ship liquefied natural gas (LNG) overseas. One application has been approved.

The natural gas industry, which is eager to sell more fuel, says overseas markets could generate billions of dollars in export earnings, improve the nation's balance of trade, and boost the economy in shale-gas areas such as Pennsylvania.

The fact that policymakers are even discussing exports is a remarkable statement about how the shale-gas revolution has turned energy markets on their head."

Big Farm's Crony Capitalism and Corporate Welfare

What do Christmas tree growers have in common with producers of beef, blueberries, cotton, milk, eggs, avocados, honey, lamb, mangoes, mushrooms, peanuts, popcorn, pork, potatoes, soybeans, and watermelons?  They are all well-organized, agricultural special interest groups that have lobbied the Department of Agriculture to impose taxes or fees on their products (and raise prices to consumers) to fund the marketing and promotion of their products to the public.   

The Christmas tree growers’ efforts to use the federal government’s coercive power of taxation to benefit their industry had to be postponed last week due to public pushback about higher taxes and the display of blatant crony capitalism.  Maybe it’s time for some public outrage (OWS protestors?) over the corporate welfare bestowed on "Big Farm" for producing blueberries, avocados, peanuts, etc. 

See related: 1) WSJ editorial "About That 'Christmas Tree Tax': The real story is a case of business and government collusion," and 2) Heritage Foundation post "Agricultural Marketing Fees: Not Just for Christmas Trees"  (HT: Matt B.). 
 

Filmmaker Michael Moore's $2m Torch Lake Vacation Mansion in a 99% White Community

Michael Moore's $2 Million Michigan Vacation Mansion


Michael Moore: "Capitalism did nothing for me.  The system is not set up to help somebody from the working class."

Andrew Breitbart: "Left-wing filmmaker Michael Moore has been touring Occupy Wall Street demonstrations across the country urging activists to continue their fight against the wealthy “one percent” of Americans.

According to public tax records, Moore owns a massive vacation home on Torch Lake, Michigan–one of the most elite communities in the United States–in addition to his posh Manhattan residence. Through an independent source, Big Hollywood has obtained exclusive photographs of the house matching the address of Moore’s waterfront mansion (see samples above). It is the kind of luxurious summer home that 99 percent of Americans can only dream of owning (estimated value = $2 million).

In addition, according to statistics from 2009, Forest Home Township [where Torch Lake is located] has no black residents. The township is roughly 98 percent white. Call that 99 percent, and Moore’s claim to be among “the 99 percent” begins to have some basis in reality."

Update: See Henry Payne's excellent article in the Detroit News "Occupy Michael Moore: His opulent Michigan lake estate."

Peter Thiel on Higher Education Bubble. Aptitude Tests for Employers Instead of College Degrees?



In this WSJ video, Peter Thiel, founder of Clarium Capital and The Thiel Foundation, explains why young Americans need to be encouraged to take on more risk to spur innovation and why the cost of a U.S. education is hindering that.

HT: Sprewell

Related: Craig Newmark points to a 2009 George Will article that might help explain why we have a higher education bubble:

"In 1964, there were more than 2,000 personnel tests available to employers. But already an Illinois state official had ruled that a standard ability test used by Motorola was illegal because it was unfair to "disadvantaged groups."

A heavy burden of proof was placed on employers, including that of proving that any test that produced a "disparate impact" detrimental to certain minorities was a "business necessity" for various particular jobs.

Small wonder, then, that many employers, fearing endless litigation about multiple uncertainties, threw up their hands and, to avoid legal liability, threw out intelligence and aptitude tests for potential employees. Instead, they began requiring college degrees as indices of applicants' satisfactory intelligence and diligence. This is, of course, just one reason college attendance increased from 5.8 million in 1970 to 17.5 million in 2005."

MP: Peter Thiel describes higher education as a "giant selection mechanism" and estimates that only 10% of the value of a college degree comes from actual learning, and 50% of the value comes from selection (getting into a selective university) and 40% comes from signalling (graduating from a selective college becomes known to employers).  If employers could use intelligence tests instead of college degrees as measures of aptitude, it might be a lot more efficient and more cost-effective than the current practice of using very expensive four-year college degrees that add very little in terms of educational value (at least according to Thiel).    

The Long, Undistinguished, and Very Costly Graveyard of Failed Government Energy Projects

From an article in yesterday's Washington Post by energy writer Steven Mufson "Before Solyndra, A Long History of Failed Government Energy Projects":

"Solyndra, the solar-panel maker that received more than half a billion dollars in federal loans from the Obama administration only to go bankrupt this fall, isn’t the first dud for U.S. government officials trying to play venture capitalist in the energy industry. The Clinch River Breeder Reactor. The Synthetic Fuels Corporation. The hydrogen car. Clean coal. These are but a few examples spanning several decades — a graveyard of costly and failed projects.

Not a single one of these much-ballyhooed initiatives is producing or saving a drop or a watt or a whiff of energy, but they have managed to burn through far more more taxpayer money than the ill-fated Solyndra. An Energy Department report in 2008 estimated that the federal government had spent $172 billion since 1961 on basic research and the development of advanced energy technologies."

Conclusion: "Perhaps the federal government is, as former Obama economic adviser Lawrence Summers put it, “a crappy VC,” or venture capitalist. Or perhaps it should stick to funding basic research. But if more recipients of Energy Department loan guarantees falter, they will become part of a long, if undistinguished, history of failure."

Saturday, November 12, 2011

Natural Gas Is Boosting U.S. Regional Economies

AreaDevelopment.com -- "Hydraulic fracturing (“fracking”) and horizontal wells now make it possible to economically produce natural gas from low permeability shale rock, greatly increasing natural gas supplies while reducing prices. These shale rock formations are found primarily in Louisiana, New York, North Dakota, Pennsylvania, Texas, and West Virginia. Their development is helping many “downstream” businesses grow and create jobs.

For example, estimates of Pennsylvania job creation due to increased shale gas production since 2009 range from 44,000 to 72,000. In Bradford County, Pa., the 2009 unemployment rate of 10 percent has been halved because of Marcellus Shale gas development. New York’s economically depressed Southern Tier is also benefiting from gas field development in nearby Pennsylvania. Case in point: RB Robinson Contracting, Inc., a family construction business in Candor, N.Y., had eight full-time employees in 2009. Today, it provides full- and part-time work for 120 people.

Ohio’s steel industry has also felt the economic impact of the revival of shale production. More than 400 workers in Youngstown are constructing a new $650 million steel mill for Vallourec & Mannesmann Holdings, Inc. It will annually produce a half million tons of seamless steel well tubing used in drilling and “fracking” natural gas wells. U.S. Steel is spending $95 million to expand and upgrade its tubular steel mill in Lorain, Ohio, and Timkin is spending $50 million on a similar project at its Canton mill."

MP: The chart above shows the increase in mining jobs in Pennsylvania, which have almost doubled since 2004, due to the shale gas boom in the Marcellus region of the state.    

HT: Energy Tomorrow