Mish's Global Economic Trend Analysis

---

Funniest and Most Absurd Real Estate Promotion in Years Posted: 26 Jul 2013 11:00 AM PDT Those attending the iProperty.com International Property Expo in Singapore, to learn about "the best property in Asia" can win a free house by attending. Guess where the house is located. One might think somewhere in Asia because that's the focus of the expo. But No! The free house is located in the mother of all choice spots, Detroit, Michigan. Check out the image. Note the creative description: "Yes, it's true we are giving away a home! This is a gorgeous 3 bedroom brick home located in an excellent neighbourhood just a stone's throw away from key facilities like the Triumph Hospital and the Bel Air Shopping Centre. It boasts a garage and basement and has just been newly furnished. It's Freehold Landed U.S property with 3 bedroom and 1 bathroom. A lot size of 4,225 sq ft with Garage, basement and tenant included! This property has a net selling price US $38,000." Is this ad supposed to entice people to attend or scare them away? It's Too Late The iProperty promotion clearly needs a nice corresponding "better buy now before it's too late" message. And I have just the right promotional idea in mind. It's from my December 13, 2005 article It's Too Late. I think it's too late. In fact I know it's too late. How do I know? The following Email I received tonight should explain it nicely. When you see stuff like this, not only is it too late, it's way too late. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.

Spain Levies Consumption Tax on Sunlight Posted: 26 Jul 2013 01:03 AM PDT Proving that idiocy truly has no bounds, Spain issued a "royal decree" taxing sunlight gatherers. The state threatens fines as much as 30 million euros for those who illegally gather sunlight without paying a tax. The tax is just enough to make sure that homeowners cannot gather and store solar energy cheaper than state-sponsored providers. Via Mish-modified Google Translate from Energias Renovables, please consider Photovoltaic Sector, Stunned The Secretary of State for Energy, Alberto Nadal, signed a draft royal decree in which consumption taxes are levied on those who want to start solar power systems on their rooftops. The tax, labeled a "backup toll" is high enough to ensure that it will be cheaper to keep buying energy from current providers. Spain Privatizes the Sun Via Google translate from El Pais, please consider Spain Privatizes The Sun If you get caught collecting photons of sunlight for your own use, you can be fined as much as 30 million euros. If you were thinking the best energy option was to buy some solar panels that were down 80% in price, you can forget about it. "Of all the possible scenarios, this is the worst," said José Donoso, president of the Spanish Photovoltaic Union (UNEF), which represents 85% of the sector's activity. Before the decree it took 12 years to recover the investment in a residential installation of 2.4 kilowatts of power. Following the decree, it will take an additional 23 years according to estimates by UNEF. Petition of the Candle Makers Revisited And so the "Petition of the Candle Makers" comes to pass. I have written about the "petition" on many occasions, but here is the latest reference: Extremely Difficult to Keep Up With Economic Stupidity Reflections on "Unfair Competition" Corporations always consider it "unfair" when any other company can do things faster, smarter, or cheaper than they can. The buggy whip industry once protested cars. Today, land-line telecom companies have to compete with wireless and they don't like it. Now, we see protests about VOIP (voice over internet protocol). Technology marches on. But France does not like it. The French solution is to tax Skype because it has an "unfair advantage". This is an age-old unwinnable argument. Petition of the Candle Makers The ultimate irony is France's preposterous "unfair advantage" argument was lampooned by French economist Frederic Bastiat back in 1845 when he penned 'Petition of the Candle Makers'. In his article, candle makers were incensed that the light of the sun could be had for free. The sun's unfair trade advantage was to the "detriment of fair industries" who could not compete against the sun's price. Something had to be done to "shut off as much as possible, all access to natural light, and thereby create a need for artificial light" so that "industry in France will encouraged". The moral to this story is "Don't propose something purposefully stupid hoping to make a point. Some idiot might actually think it's a good idea and do it". Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.

You are subscribed to email updates from Mish's Global Economic Trend Analysis To stop receiving these emails, you may unsubscribe now.	Email delivery powered by Google
Google Inc., 20 West Kinzie, Chicago IL USA 60610