Daily Digest

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Daily Digest 4/23 - The Age Of Privilege, Why Are Bankrupt Oil Companies Still Pumping?

Saturday, April 23, 2016, 11:06 AM

Economy

In an Age of Privilege, Not Everyone Is in the Same Boat (jdargis)

“It was always the intention to make the Haven somewhat obscure so it wasn’t in the face of the masses,” said Kevin Sheehan, Norwegian’s former chief executive, who helped design the Escape with the hope of attracting a richer clientele. “That segment of the population wants to be surrounded by people with similar characteristics.”

Rich People Are Living Longer. That’s Tilting Social Security in Their Favor. (jdargis)

That’s progressivity in action. Or rather, it would be if Mr. Moneybags and his gardener actually lived to the same age.

But in reality, a large body of research shows that the rich live longer — and that the life span gap between rich and poor is growing. And that means that the progressive ideal built into the design of Social Security is, gradually, being thwarted. In some circumstances, the program can actually be regressive, offering richer benefits to those who are already affluent.

The 2016 "Rage, Fear, & Anger" Election: Ron Paul's Deep Dive Into The Real Issues (Tom P.)

Until the political economic crisis became readily apparent, most politicians were unaware of the rapidly increasing distortions in wealth distribution. The dangers are conveniently ignored because most people live for the short term. If one is doing well financially, even though the system is financed with the whole country living beyond its means, worrying about preparing for a rainy day seems like wasted energy. However the payment is now coming due, and because few plan or understand it, any threat to benefits – both earned and unearned – creates great anxiety. Fear of being squeezed out of a share of the benefits that come with government intervention becomes the driving force for the whole country. The one group that seems the least worried about current conditions is the “one percent” who are financially secure by living off the special interest financial system. This does not include the wealthy who are financially rewarded for providing products and services that consumers choose to buy.

Apple suffers another iPhone blow (lambertad)

The quarterly weakness is impacting fiscal 2016 estimates as well, putting Apple on track for its first-ever decline in fiscal-year iPhone unit sales. Raymond James is now expecting 212 million units for fiscal 2016 at “meaningfully lower” average selling prices, while analysts on average are currently estimating unit sales of 217 million for the full year, versus 231 million last year.

Feds: someone gave us the passcode in NY drug case, so we don’t need Apple (jdargis)

This case pre-dates the debacle that played out earlier this year in San Bernardino, but relied on many of the same legal arguments. Here, in October 2015, the government asked the court to grant it an order that would have forced Apple to assist the unlocking of a phone belonging to Jun Feng, a man who eventually pleaded guilty to drug charges. Unlike the case in California however, Apple does have the ability to extract data on pre-iOS 8 devices with minimal difficulty. Feng has claimed that he forgot the passcode to this particular iPhone. According to the Wall Street Journal, it was Feng himself who recently supplied the passcode to investigators.

42 Percent of an Electric Car Revolution (jdargis)

The plug-in Prius can go about 13 miles on battery power alone. And so the extent to which it is an electric car varies, depending on how you drive and where you drive. (Weather has an impact.) If you live in a warm climate and drive 5 miles to and from your job every day, then you have an all-electric. If you live in the Northeast and commute 50 miles each way to work at an office with no charging stations, you’re basically driving a regular hybrid with an extra battery kick.

Why Are Bankrupt Oil Companies Still Pumping? (Kevin J.)

A central tenet in the thesis by analysts about the oil markets rebalancing has been that as prices declined, oil companies would be forced into bankruptcy. That in turn would lead to declining production, and eventually a rebalancing of supply and demand in the market, followed by higher prices. That process is already taking longer than many expected, and it looks like more time is needed. That additional time to balance the market is being driven by an unexpected factor; bankrupt oil companies are still pumping.

Gold & Silver

Click to read the PM Daily Market Commentary: 4/22/16

Provided daily by the Peak Prosperity Gold & Silver Group

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