Thoughts on Bail-out Bucks and other Oddities

OK, who besides me finds it weird that April 15th is almost like any other day—except for the fact that the government is giving people money tax-free for no reason except they watch cable/satellite news and believe what they’re told. I know tax protestors have advocated for a system where April 15th would be just be another day but somehow, I don’t think this socialist scheme is what they had in mind.

Also, is it me or did you notice that Democrat governors want to keep their states shutdown for many more months while Republican governors are beginning to open their states and rev-up their businesses? Folks, the latest draconian directives from Sacramento and Los Angeles are exactly the opposite of what we need—no surprise there except these folks need a stream of other people’s money to keep the utopian/socialist dream alive.

For example, today Los Angeles County leaders proclaimed that all 12 million plus people must wear a face covering or not be allowed outside of their homes for the next several months (Actually, at this point, it was indefinitely). Are they adopting Sharia Law or something just as wacky? Imagine Southern California with no sporting events, amusement parks, concerts, or other gatherings—including churches? Yet apparently, none of this is allowed thru at least the summer. In other words, no tourists allowed, and the locals will be punished to boot. FYI: Disney is bleeding 30 million a day in lost revenue and this could drive them into insolvency.

Did you read Newsom’s restart plan yesterday, talk about tilting at windmills? Remember, in terms of fatalities, Covid-19 is not as bad as the average flu season and the mortality rate might be even lower if the numbers coming out now hold true. Its as far from Spanish Flu, Black Plague, and Ebola as you can get. Yet, our governor wants to make it as difficult as possible for us to get back to work.

I have to agree with those that say Covid-19 went thru California before anyone—except maybe Trump—was even paying attention. At the same time Dr. Fauci and other were saying it was no big deal (late January), Covid-19 was going thru California like wildfire. Yep, in the timeframe of late January and into February, it was everywhere, so by the time social distancing and all the rest were in vogue in March, most of us had already had it. The biggest trigger to the spread was those celebrating Chinese New Year in later January. People returning home from China spread this virus worldwide and simultaneously. (Plus, I think it was here before then anyways.)

There is no way New York could be the epicenter in the United States. Ground zero was California; but earlier. Now that antibody tests are coming online, we will have the opportunity to see if I’m right. I have friends being tested now that think they had it in early February. I think my wife and son had it during that time as well. This is herd immunity. When enough people in a population develop immunity to the disease, a disease can’t easily spread to new people because it runs out of hosts.

Folks, Garvin Newsom’s Presidential aspirations are riding on how he deals with restarting California. If other states recover before we do, he’s toast on the national stage. I think he’s listening to the wrong people and will muff this up. Newsom’s linking our fate with Oregon and Washington is not a bright idea. The good side is that his leadership failure in California will be used to protect the rest of the nation from his failed ideas in 2024.

One last random thought. Does 4/20 seem like an odd day to restart education in our part of California? Hitler’s birthday, Columbine anniversary, and make pot legal day. Also, I think the Sith Lord is celebrating another birthday.

Folks, I hardly watch any television but seeing the behavior of those that do is always a treat. The insanity I witness (and overhear) at work and in the grocery store check-out line is breathtakingly uninformed.

Conversations with the Naïve COVID-19 Edition

By regular contributor Johnnie Does.

Editor’s Note: This article was submitted to me last week but life got in the way and I’m just now able to get this posted.

Well, we are back with another segment. I really wish I could stop writing these but the naïve are everywhere and continue to spout off their naivety about COVID-19.

Here we go:

My friend who manages a movie theatre:
She took a 50% salary reduction along with limited hours at work since the place has been shut down. Her job is essentially to keep the movie theater in decent shape for a possible restart. Key word here is “possible.” She has been told the target date for reopening is June 9th but based on what criteria she has no clue. I have tried to tell her otherwise but like most, they don’t want to hear a contrarian viewpoint. She says that come December, she will have 15 years with her company. Inexplicably, she thinks it’s some vital milestone she must see through despite the obvious fact that at 50% of her income, she can barely cover her bills plus rent. I have tried to reason with her about finding another job/line of work…. crickets. Better the devil we know… or a lack of ambition?

The reality is, we know how this story ends. Best case scenario, she returns to fulltime capacity in August (at the earliest) and at 75% of her previous salary. This fiscal reduction will be explained under the guise of “shared sacrifice” that comes with a benefit cut and bonuses that are unattainable. Nevertheless, if she hangs tough with this arrangement, she’ll be the only one sacrificing. Once the business is back in operation, the suits at corporate are expecting their old pay and benefits packages to be reinstated.

This babe claims she is willing to endure the toil and economic hardship for a long period of time out of some inexplicable loyalty to a company that would gladly kick her to the curb in a heartbeat. Whether her personal finances eventually succumb or not, matters not to corporate. Either way her old reality is over. If she finds employment elsewhere, they will hire a much younger, recent college graduate at 50% of her salary. If she does return as she hopes, she will keep toiling away working just as hard or harder while making less money. Corporate may sing her praises but so what? There is no scenario in which her standard of living will be improved by allegiance to her old status quo. While all this is occurring, she continues to rack up very expensive credit card debt in the process of trying to survive. Sadly, I’ve learned that most need to learn the hard way or not at all. 9/10 times you never earn back your old rate of pay.

A charter schoolteacher:
Ok let me preface this, I do firmly believe there are a handful of really dedicated teachers out there, but the rest are literally the worst types imaginable. Charter schoolteacher (a Berkley Grad BTW), when it was announced school was cancelled for the remainder of the year, decided to berate the administration for dragging their feet on the restart dates of the school year. Keep in mind this virus, as serious or not as it may seem, has made for a very fluid decision-making process. The entire time that schools are closed, teachers have been paid full salary and benefits! Additionally, most teachers and their spouses will be receiving the promised $1,200 stimulus checks. However, due to her perceived injury for not being in a classroom, she decided to spout-off that teachers should be paid double as an inconvenience. Yes, you read that right. While her neighbors and many of the parents of the children she teaches are being furloughed, laid off, watching their small businesses die on the vine, or in the case of frontline workers, being worked as many hours as possible for very little additional compensation, in other words people around her are really suffering, all she can do is demand more for herself. This moron thinks she should get paid double…to not work mind you. Being less aware, you can’t! I hate to break it to her, but she and her fellow educators are not essential…and the Berkeley Grads are literally the absolute worst, most condescending folks one will ever meet.

All the state workers I know except 1:
I am sure you can guess the one. (Hint, hint he owns this space). This lot of folks may be as bad as the teachers; they all feel all is well in the world because they are due as raise 7/1. I wouldn’t count that chicken so soon. Sales tax collections are way down, as are capital gains (stock sales) taxes for the State of California. This will be causing a massive shortfall for next fiscal year’s budget. Every private sector job lost, even the low paying retail and service jobs, has a direct effect on your compensation. While I do not pretend to know how state government employee contracts work, you could be in for very tough sledding; especially with a governor who has his eye on the White House in another 4 years. Most government workers think the pain is only going to be shouldered by private sector workers but beware, you may be in for a rude awakening.

90 Day Guy:
No one has been a star of this more than him. He is a man of many talents and professions and knows more than all of us due to his cable watching prowess. He has decided to avoid Covid-19 danger by staying in his house and smoking weed, whilst watching cable mind you. I cannot think of a wilder trip to be on. I never thought “the munchies” and self-isolation were compatible aspirations during the existential threat we are witnessing on the 24/7 news stations. Additionally, he claims he is doing his part observing social distancing by frequenting various golf courses in the county, since they have been kept open by the county Health Director.

Even amid the coronavirus crisis, Saturday was a busy day for golf courses across Sacramento County, like Haggins Oaks. The parking lot was packed with cars as golfers hit the green, but not everyone was happy about their decision.

The sound of a good swing paired with some sunshine makes a good mix for golfers like Tom Crook and Alisha Griffin-Crook. Both went to Haggin Oaks searching for something to do and stay active in the era of coronavirus and social distancing.

“It’s pretty much it other than walking,” Tom said. Their concern for health still high with this pandemic, but they say there are enough distancing protocols to feel safe.

Sacramento County Golf Courses Remain Open, Packed With People

Cable/Internet People:
These folks have been something else to endure. They hear some rumor or Google some topic and regardless of whether its peer reviewed or scientific, they take it as gospel. For example, the couple who drank fish tank cleaner in Arizona under the guise that it is an antidote for Covid-19. In case you missed that one, one person died from this “home remedy” and the survivor (both lifelong Democrats) claimed it was Trumps’ fault.

A man has died and a woman is in critical condition after ingesting a chemical that contained chloroquine, which Donald Trump has promoted as a coronavirus treatment despite warnings from health officials that it has not been proven to treat the virus.

Coronavirus: Man dead after trying to create Trump’s miracle drug from household cleaner

See also See also: Panic Peddlers: Media Blames Drug Trump Discussed for Death of Man Who Ate Aquarium Cleaner

The aquarium “cure” and the media’s spin on it is just one example of journalistic malpractice in the coverage of this virus. Daily projections of death and hospitalization are another. Hiding behind worthless models of the virus and claiming they’re valid is just as dumb as putting faith in political polling a year before said election… well, except for the fact that our leaders believed them and shutdown the country because the so-called experts cried “wolf” very loudly. The correct phrase for such nonsense coming out of the mouths of these folks is SWAG—Scientific Wild Ass Guess.

Case in point concerning crying “wolf”, Washington State Governor Jay Inslee dissed President Trump a week ago for not offering enough help to his state and a week later, low and behold, Inslee’s extra medical field hospital has been dismantled because it was never needed.

The massive army field hospital that hundreds of troops built inside a Seattle convention center last week will be dismantled before treating a single patient.

Washington’s field hospital to be dismantled before treating a patient, sent to states worse-hit by coronavirus

Nearly 300 soldiers from Fort Carson, Colo., and Joint Base Lewis-McChord (JBLM) near Tacoma, Wash., built the makeshift facility inside CenturyLink Field Event Center, normally home to the NFL’s Seattle Seahawks and the Seattle Sounders of the MLS, for patients who do not have COVID-19.

CenturyLink Field Event Center emergency hospital #1

Oh, and buried in the end of the story are these nuggets.

The decision comes just days after Washington returned 400 ventilators it received from the federal government so they can be used in New York and other hard-hit states.

Despite these returns, Inslee assured Washingtonians the state was continuing to take steps to bolster its medical resources in the event of a surge in cases, purchasing 1,000 hospital beds and more than 900 ventilators.

The virus has sickened more than 9,000 people in the state, killing 432 as of Thursday.

CenturyLink Field Event Center emergency hospital #2

Against this backdrop of foe drama and disinformation, we all hope for antidotes or cures, but the truth is that in the strictest sense, they do not yet exist. Nothing is yet scientifically verified as a proven “cure.” Anecdotal evidence may help with treatment strategies, but no universally recognized treatment protocol exists, and a preventative vaccine is still in the early stages of development. Many groups are preparing for phase 1 clinical trials and are seeing hopeful signs in certain patients.

Folks this crisis has largely been the product of cable news sensationalism. Folks on television grab on to one possibility or ill-informed idea and run with it, often to the exclusion of all else. (Think dog with a bone.) Somehow one facet of the story becomes their sole focus. It makes me wonder if they are the ones that can’t deal with a complex issue while claiming that we are the ones lacking the requisite number of brain cells. The net result is that most people lack context to what is going on versus what they read on Facebook.

As a result of the 24/7 news cycle, we are now stuck with social distancing, arbitrary shelter in place orders, and business closures. The truth is that only the governors in each state can release us from them not President Trump. That won’t happen until at least the end of April. I would say closer to end of May. I do not have any idea what the criteria to reopen will be and neither do they.

The naivety out there is truly something else, especially during these times. Sadly, I don’t have to look far to find it. If you ever need an example of the blind leading the blind, we’re living it now.

Johnnie Does

The Real Cost of COVID-19

People frequently ask me what the real cost of this virus will be when it’s all said and done. Sadly, as Natasha Bedingfield said in her famous song “the rest is still unwritten.” As vague and sad as that statement was for me to say, we won’t know the answer for years, and that is the truth. As I write this, we are under a “shelter in place” order in California. New York and other states are under similar guidelines. As a result, large gatherings (over 10 people) are banned, church services are cancelled, most retail is closed, and restaurants are either closed up, or doing take out only. Commerce has come to a standstill, and while we have a stimulus plan being rolled out by the federal government (coming soon to a bank account near you), it will do no good.

Let’s analyze the impact of Corona using current events. Cheesecake Factory has declared they cannot pay rent due April 1. Cheesecake is a very large operator of restaurants; this should not be the case after just a 10-day shutdown (as of writing).

Cheesecake Factory Inc. is doing what a lot of tenants would like to do come April 1: withholding their rent.

The restaurant chain said that the “unprecedented times” we are living in has prompted it to take a closer look at its economic situation.

Cheesecake Factory says it’s not paying rent in April, has furloughed thousands of employees

The company has also furloughed 41,000 employees. These staff members will receive a daily free meal and retain benefits and insurance until June 1.

Point being, if Cheesecake is in trouble, how about the local independent shop? How does it survive? They cannot get a bulk deal on food and their staff is likely composed largely of family members working long hours… I don’t think this ends well for a majority of small restaurants. If stores do not close, the layoffs have started and it’s going to be brutal. As Samuel L. Jackson said in Jurassic Park “Hold onto your butts.”

Retail must be viewed the same way. I feel this virus and subsequent state ordered shutdowns will bring most to their knees. Case in point, Macy’s has laid off almost all employees (130,000) and the governing board will not be paid anytime soon.

Macy’s says it will stop paying tens of thousands of employees who were thrown out of work when the chain closed its stores in response to collapsing sales during the pandemic.

The majority of its 130,000, including stock people and sales clerks, will still collect health benefits but the company said that it is transitioning to an “absolute minimum workforce” needed to maintain basic operations. Macy’s has lost the bulk of its sales due to the temporarily closing of its stores starting March 18.

Amid Coronavirus Closures, Macy’s Furloughs Majority of Its 130,000 Workers

I feel most will use this as a chance to “get out of leases” where stores aren’t hitting their numbers. Online commerce will be even more important, and I think the days of free shipping may be coming to an end, as in-store sales will no longer subsidize it. See above on layoffs. This will be very brutal, and like the food service business, retail doesn’t pay well either. Folks, this event is the “retail apocalypse,” just not the way we pictured it happening.

Movie theatres, how the heck do they recover? If you work in this field, then look for new work quick. Not only are your local multiplexes closed, when operating, they serve overpriced food and booze, it tastes horrible. Movie production has also ceased worldwide, and as a result, movies won’t be coming out for a while. Again, I am envisioning mass layoffs here.

How does our education system recover? Is it just business as usual next school year? Nope. I think this virus exposed flaws in the current system in a couple ways. First the lack of on-line or distance learning. The district can’t assume everyone has a laptop, let alone Wi-Fi access at home. So, is the answer we buy all kids laptops? But if we do, how do we know Wi-Fi is available? Additionally, most schools offer a hot breakfast and lunch program, along with a take home bag for dinner for eligible students. How does this continue in the future? What if a cook somehow passes this virus on to food, and affects child…is the district liable?

How about volunteer groups? I will say this, you will see a steep drop off in membership. I guarantee it. Most members tend to skew older and those folks will be even more cautious going forward. This will be very prevalent in social justice groups, because who wants to be around a group of unknown folks with various levels of hygiene?

In closing, I would like you to consider the following.

First, the 2 trillion dollar “bail-out” is typical for an out of control Congress trying to assure re-election. This bill, which we had to pass to know what’s in it, was a cornucopia of pork barrel projects totally unrelated to mitigating the effects of the virus either medically or economically. Talk about putting lipstick on the proverbial pig, this thing was horrible. I would argue the “cure” is worse than the disease. Sadly, this is a recurring theme of omnibus fixes coming out of Washington. Oh, and two more “waves” of legislation are in the pipeline now, both with multi-trillion-dollar price tags in addition to what has been passed thus far.

Sadly, this virus, while it may calm when the weather gets warmer, will likely be back again in the fall, possibly in a new strain, just like any other flu. If it returns, how do we react then?

While we’re passing time in self-exile and hoping for warmer weather; hopefully, the Troll gets a few new photos of Hope Hicks celebrating summer apparel. To him, she’s like Campbell’s soup, it warms the soul.

I do firmly believe that social distancing is not a fad, it won’t be going away. We are all going to be germaphobes to the umpteenth degree. Bars will need to space out their stools and tables. Folks go there to “hang out,’ but don’t want to hang with strangers anymore. The concept of speaking to a barfly is not going to be a thing for a while. This goes for the restaurant side as well; tables will need to be spaced out… I do not see this ending well. Casinos will undergo big changes as well. The days of a 24/7 operation with minimal cleaning are over. Have you been to a blackjack table? Talk about shoulder to shoulder, more like bumping ugly’s with the person next to you; that will change. Bottom-line, I would say best case scenario is you see a return to 70% of your revenue compared to pre corona virus.

Movie theatres are literally screwed. They just spent a pant-load to re-do seating and configurations, subtracting quite a few seats. Total folks per screen are lower and they were forced to pay increased prices and then this happens. Ouch! I foresee in the future that seating may be even more limited. What if they have to go to small “clusters” of seats like 1, 2, 4, and maybe larger parties of 6-8? They may try something “value added” like table service or at the minimum food upgrades. The idea of paying $12 for a frozen pizza or $15 for a watered-down Bud Light are long over. Theaters have to upgrade and get a lot better but now it’s probably too late. I think the theatre business is dying on the vine and their demise just sped up. Streamers have put a dent in the old business paradigm and perhaps worse, the creators could take it straight to the people. Folks don’t have to watch movies at a theatre anymore. The traditional Hollywood revenue model is totally broken now. How do they pay 300 million dollars per episode for their “tent pole” franchises going forward? If you missed it, in the wake of the COVID-19 virus, Disney took out a $6 billion dollar loan. Guess owning 40% of all Hollywood movies has a downside.

A ton of retail will not make it. Look for deep discounts soon, especially in the clothing area. Maybe the Chief can buy some actual clothes. Last Monday, at our regular editorial board meeting (held at an undisclosed salsa bar) he was a sight no one’s eyes should be forced to endure. Trying to claim that a loincloth is just a leather kilt and he wore it in honor of St. Patrick’s Day was not very convincing. Sorry Chief but “sculpted” is not my word to describe you shirtless. Next time at least wear a shirt at the dinner table.

Anyway, back to the present topic. I think we will see a very different scene at restaurants, bars, theatres, and malls very soon. If you were looking for some ideas for the market, I would look at the “dinner kit” companies, and companies that are into the teleconferencing type stuff.

We will get out of this, but it’s going to be a rough several months, and look for this to rear its ugly head next fall.

Johnnie Does

PS the food reviews will continue no matter what. We just won’t do the ambiance. The people need me. I’m performing an essential service during these trying times. BTW the “Sac Bee” called me today looking for me to subscribe… of course I signed up and asked for 30 papers to be delivered daily. Hell, at $.50 a paper; on average that’s cheaper than a roll of toilet paper, if you can even find one! Hell, finding that stuff is like playing the adult version of Where’s Waldo?

Johnnie Does Questions the Trump Stimulus

Now that the details are starting to be released (Why is it that we have to pass this thing to know what’s really in it? Sound familiar?), I wanted to give my commentary on a few things I already disagree with. Before you shrug your shoulders and say “it’s just a right wing reaction by a right wing blog” hear me out.

This is a truly unprecedented situation. The leisure, restaurant, casino, and airline industries are on the verge of collapse. The stock market has given up all of the Trump gains since his election. The news media has whipped everyone into frenzy. Schools have closed indefinitely, restaurants have closed all dine-in operations, and movie theatres have closed. While I still feel this is a huge overreaction, as William has told me “once you ring the bell, how do you un-ring it?”

Now on to the Trump plan, it involves two $1,200 checks per person, for 2 months, with an extra $500 for children. The goal is that these checks to be out in a little over 2 weeks. My question is how? The Treasury/IRS has to have files upon files upon files, no chance this gets done in just a few months. (Last time the government did such payments under George W Bush, it took 3 months.) I have a feeling this will be left up to the individual states because at the end of the day, the federal government can’t move fast enough to be effective. (I’m assuming they want to be effective.) Instead, I think you may see the states distributing funds with the Treasury reimbursing. This means the $$$ will be going to non-citizens and likely people making far more than the intended income levels. Sorry folks, but we have voter registration roles that are out of whack, what makes you think they will get this right?

CEOs trolling for $$$

I also question bailing out corporations in return for equity, this I liken to a real life game of Shark Tank. I almost envision the CEO going into the smoke filled room asking for so many million/billion/trillion/gazillion in exchange for so much equity. It would literally be must see TV, almost the Apprentice in disguise! I guess if they like your pitch, equity stake can be negotiated. If they don’t like your pitch, well, you go the way of Lehman Brothers. I do not like this idea one bit, I understand the need for a lifeline, not a bailout. Even an equity stake doesn’t give the government enough downside protection, especially with the political risk of an election year!

In conclusion, the worst part is that I feel the GOP has once again been goaded by the Democrats into thinking this is a good idea. I see this ending horribly in November. All this talk of playing nice, ends with the Dems running TV ad, after TV ad of the party of the rich only gave you folks $1,200 X 2, we want to give you a living wage paid for by Uncle Sam each month! Shades of George W. Bush in 2007ish, it ended badly. They will have us over the barrel.

George W Bush signing legislation for tax rebate checks in 2008

These guys might all shake hands and bump fists in public, but they all know there is a lot at stake in November. All are trying to insure the re-election of themselves and their “fellow congressmen” while trying to pick off as many of the other side as possible. There is a reason we have 2 parties, I don’t think Pelosi and Schumer will be cutting re-election ads for Trump, and the GOP in November…..Just saying. Remember the last time things were TOO BIG TO FAIL!

Johnnie Does

Corona Craziness

By Johnnie Does

Folks, it is amazing how a virus originating in China can literally put people’s minds into a pretzel. 90 day guy came into the office today, you guessed it, Lysol Wipes, hand sanitizer and rubbing alcohol in hand. He said his wife forced him to bring all this to the office….I called BS. He said we should buy surgical masks, and discuss our interactions with the public, keep in mind we may get 12 people a month in the office. This is a typical overreaction from a cable watcher.

To be clear the views expressed on this blog in regard to cable are not entirely bad, frankly if you wish to pay to consume it each month, by all means. We just warn here that the job of cable (including Fox News BTW) is to gin up emotions and get people to react irrationally. Look at the events of the past 72 hours in our local city. Elk Grove Unified cancelled all classes and athletics, keep in mind nary a student had tested positive for this virus! Keep in mind the teachers were upset, but the only parental dissatisfaction were parents of the Sheldon High Men’s Basketball team scheduled to play tonight in the playoffs! I’m not bagging on the parents at all, actually they are the most rational people in this situation. Funny thing is, I saw many students of Laguna Creek High congregating and mingling with the public near my office at a local Target today! The horror! Yep can’t attend class, but they are out and about doing what kids do!

The sad thing is at the time of the editorial deadline for this article only 22 people have died in the US from this virus. I say only because the media and local educators are making this thing sound like the Spanish Flu (originating in China too BTW). Of the 22 dead, 15 occurred in the same nursing home in Washington State. We have had 2 cases in Sacramento County, 1 in Elk Grove, there has been 1 death in Placer County….an older man, just like the others who have passed away. Yet we cancelled classes for a week. Santa Clara County cancelled events with attendance over 1000, so the San Jose Sharks will play 3 games with no attendance? The Ivy League has cancelled their basketball tournament. MLB, NBA, and NCAA are considering what to do about their respective sporting events, with MLB and NBA kicking the press out of the locker rooms.

This type of overreaction is befuddling to me. However I have come to expect it. I call it “Hurricane Katrina Risk” meaning you cannot under deliver so you must over react. Why are we cancelling school, when we had 0 positive tests? Telling people not to go to games? Stockpiling food, water, toilet paper, and sanitizer? Come on man! Yet you all wonder why the stocks have been crashing?

Here is some straight talk on this; Corona is very similar to a cold, most likely you are going to contract it. My advice, stay vigilant, maintain good hygiene, and keep your immune system strong. The reality is; I work in a building with a bunch of dentists, its business as usual for them. Ditto at my bank, the restaurant I went to dinner at, the gym, and church. You are far more likely to die from the common cold or the flu, than this virus. Here we are wanting everyone to batten down the hatches and not go outside, and at this time there is nothing to be scared of unless you are elderly, or have health issues. Over reacting is not going to solve our fears here, it just makes it worse. How will you react if this virus kills more people?

Just to give you more anxiety, I heard today the Corona Virus can live in toilet paper, and I heard its transferrable in packages delivered by Amazon. No word on if UPS, USPS, and FedEx are in on the conspiracy.

Johnnie Does

BTW 90 day guy hit the golf links the past 2 days…..with the public. If he is so scared of catching this, I would think a controlled environment is far better than an uncontrolled one. Oh well.

Editor’s Note: This article was submitted yesterday, before Sheldon High School won their playoff game. Also, after this article was submitted, a report was published that an elderly person living in a senior facility in Elk Grove had died from Corona. The elderly woman was over 90 years old and had underlying health conditions.

Corona Virus Triggers Unnecessary Panic

Folks, parts of our cable television watching society are stocking up on antibacterial soap and toilet paper and looking for fallout shelter plans on eBay while the rest of us have purposed just to live our lives. I’m in the latter category.

So, on the first day of a stupid government school shutdown in my community, I’m going on record with a claim that Corona triggers unnecessary panic? Heck yeh! But the market is down 2K just today. So what?

Here’s a few thoughts on the unforced error of cancelling all classes this week in the Elk Grove School District.

In the Saturday release, the Elk Grove School Superintendent claimed he was moving Spring Break to this week, sorry, not happening. Look for the regularly scheduled Spring Break to happen next month in the second week of April. Both parents and teachers are taking off that week regardless of what was claimed in the press release issued on Saturday—much of which was a lie debunked by the Sacramento Bee which I will get to shortly.

You see, many parents scheduled time-off from work just to coordinate with the District’s schedule, buying airline tickets, making hotel reservations, and such long ago. These people will be out the money if they don’t go now. Also, there is that pesky union contract with the District’s teachers stating that the second week in April is the time off for those on both Traditional and Modified Traditional schedules. A reasonable suggestion that I heard from a teacher in the District was that Spring Break will happen as scheduled and a few extra days will be tacked onto the end of the school year. We’ll see if that prediction pans out.

As I’m writing this, a claim has surfaced that one child in the District tested positive. If that’s true, then please tell me what is the metric that children will ever be allowed to return to school? By being arbitrary, this Superintendent has opened a can of worms that he may never get back in the bottle. Just by being in school a child might give an illness to another, this is reality. If this is his metric, how can he ever risk that classes convene again?

The grilling given to the Elk Grove Superintendent by the Sacramento Bee’s Marcos Bretón is priceless.

More shocking. Saturday’s announcement, with such widespread implications, including the possibility of triggering public anxiety and panic, was rolled out with little or no coordination between the county’s public health department or key elected officials in Sacramento, even though a letter to parents Saturday said “this complex decision involved close collaboration and coordination with our Board of Trustees, labor groups, the Sacramento County Office of Education and the Sacramento County Public Health Department.”

If county health officials were communicating with the Elk Grove district all along then that message didn’t get out to county elected officials.

They were all caught flat-footed: Sacramento County Supervisor Phil Serna, the chair of the board this year, learned about the Elk Grove announcement when word of the district closure caused his phone to “blow up.”

Serna was at a campaign event for a colleague in the Arden Arcade area Saturday afternoon when he learned. With him was Sacramento Democratic state Sen. Richard Pan, a doctor, who has spent weeks trying to calm public fears about the coronavirus. With them was Sacramento Mayor Darrell Steinberg and Assemblyman Kevin McCarty, D-Sacramento.

All of them learned at the same time and without warning.

Closing Elk Grove schools gives a shocking lesson in how not to handle the coronavirus

Serna, Pan, Steinberg and McCarty all huddled together after learning about the Elk Grove announcement from The Bee. Together, they have planned a 1 p.m. news conference on Sunday at the Sacramento County Board of Supervisors offices at 700 H St.

The first question that should be answered there must be this: How could the largest school district in Northern California announce it was shutting its doors in a complete vacuum of information and leadership?

Why is a serious step such as closing a school district trotted out via letter to Elk Grove parents as if the contents of the letter referred to a bake sale and not an issue with serious health and policy implications?

And here is another question: Why would EGUSD, apparently with the OK of county health officials, shut down the entire district when such a drastic step is not recommended by state health officials? By late Saturday, the California Department of Public Health released its guidelines for schools, colleges and large public events to protect against the spread of COVID-19.

Nowhere in those recommendations do state officials call for the closure of a district without a single student or staff member testing positive for COVID-19. And up until now, there hasn’t been an EGUSD student or staff member who has tested positive. State health officials only contemplate closing an entire district if there have been students, teachers or staff members who have tested positive at multiple schools in a district.

But entities such as EGUSD can’t simply act without consideration for how the decision will affect a general public already jittery about the coronavirus.

As Steinberg said, Sacramento County must have a coordinated message. They need protocols. Stories of this import cannot simply be dropped like a stink bomb in the dark.

But maybe if it hadn’t been made in such a vacuum someone could have helped the Elk Grove educators make this call in a way that didn’t seem premature and haphazard.

Panic is what happens when a health crisis is mismanaged and when people who should be in the loop are not. This is not the way it should be done.

Marcus is right on this issue. (As always, I’ve quoted him extensively because this article will soon find its way behind McClatchy’s pay firewall.) Marcus, “stink bomb” is a much politer term than the ones I’m thinking of right now.

Since this opinion piece was posted, the high school boys’ basketball game is rumored to get an exemption, while the high school prom last Saturday night was killed five hours before it was scheduled to begin; off district property I might add.

Perhaps educators should try staying in their lane and let public health officials do their job. That might actually be refreshing. A coordinated response is needed not arbitrary nonsense. Panicking and then telling others that you didn’t is disingenuous and harmful; especially when your actions affect thousands of people and millions of dollars. Elk Grove’s Superintendent needs to be fired, but it won’t happen until summer just so he and the District can save face.

Folks, the Corona virus fears will blow over and the stock market will recover. These issues are just distractions to keep folks on the 24-hour news channels employed. Both of these issues will be in the country’s rearview mirror before long and they’ll go on to some other story while we that live in Elk Grove deal with the aftermath of this out of control bureaucrat.

Rick Santelli Shows His True Colors

By Chief

Rick Santelli is a commentator on CNBC who specializes in the bond/treasury markets. He usually contributes throughout the day as he reports on the swings in the market. Thursday, he made a complete and utter fool of himself and backed it up today with a halfhearted apology regarding the coronavirus.

Here is what he said Thursday:

“People are getting nervous, listen, I’m not a doctor. I’m not a doctor. All I know is, think about how the world would be if you tried to quarantine everybody over the generic-type flu. Now I’m not saying this is the generic-type flu, but maybe we’d just be better off if we just gave (the coronavirus) to everybody and then in a month it would be over, because the mortality rate of this probably wouldn’t be any different if we did it that way than the long-term picture,” Santelli said, “But the difference is we’re wreaking havoc on domestic and global economies.”

CNBC’s Rick Santelli suggests giving everyone coronavirus to spare the economy

Maybe someone should check themselves in to the doctor for a foot in mouth disease exam?

Here is his apology, if you can call it that:

“Yesterday, during a segment on ‘The Exchange, ‘I said ‘maybe it would be a good idea to expose everybody to the coronavirus, maybe it would be better off for the economy, the global economy or the markets in general,’” Santelli said of his comment that sparked outrage and calls for CNBC to fire him. “It was the dumbest, most ignorant, stupid thing anybody could have ever said.”

CNBC’s Rick Santelli sorry for saying we should infect ‘everybody’ with coronavirus to help economy

“It was just a stupid thing to say,” he said. “It’s not appropriate in this instance and we are resilient, both in the United States and in the globe. That resilience will get us through. The idea of something so absurd, I apologize, and I apologize to everybody on the segment and all my peers at CNBC.”

So ok, a lot to unpack here but here we go. First off Santelli is your typical 90 day calendar guy, when the market is up all is well, when the market is down, he incites panic. He knows no other lot in life. He is paid to comment on the news and react to market swings but how can any sane human being spout off the vomit he did on live TV and think they got away with one? Give coronavirus to everyone….nice pal…how about those of us who lack a gold plated $0 out of pocket healthcare plan Rickster? How do you expect us to come up with the money for that? Or should the government just pay for it…since in some ways it sounds like a science project to you? As far as your comment about mortality….this virus is wreaking havoc in nursing homes, and hospitals, targeting mostly the elderly and those with weak respiratory/immune systems. So it sounds like your goal is to create a stronger human race….nice. As far as his apology goes, Santelli was obviously sat down by someone far higher on the pay grade chart than him, because what he said in his apology made even less sense. He tried comparing corona virus to smallpox saying you were encouraged to expose others to it, so they could get it, and get the vaccine.

In closing I will say this, Rick is not sorry, those are his true beliefs. He saw the market get very choppy and decided to white knight and declare “we need to get this virus over with because….my retirement!” His comments that this virus is affecting both the domestic and foreign economies is somewhat correct, but the reason people are panicking is because of idiots like you Rick. There could not be more misinformation spread about this virus, both in print, online and TV media. It’s being made out to be an instant killer, with the infected quarantined off and cut out of civilization. While there is no known cure or vaccine, it seems like quarantine and maybe some medicines are aiding in people surviving. Think about that for a minute, this bozo wants to infect everyone with this, knowing there is no cure, which will overload our hospitals and health care system, because again…his stock account. To make matters worse for Rickster, today the jobs report came out….and unemployment dropped yet again. Folks the underlying economy is doing just fine. We are in a small, cable ratings fueled drop in the stock market, that’s all. Go out to lunch, dinner, or go to a gym, church, etc. People are packing these places, yet the talking heads are talking about this virus 24/7. The NBA and MLB are warning people not to go to games, and to essentially shelter in place. Rick, you are not helping.

Rick, stocks go up, and down, the overall economy is not based on whether the “Dow is up or down.” I’m actually not surprised you blew your smoking hot take for all to see, you like to rile people up, you succeeded, now more people will sell off, because they don’t want to get burned. I am however disappointed in a fellow CNBC employee, Kelly Evans. She didn’t challenge your BS at all.

The Chief

PS Santelli is a Tea Party guy, no real shock there.

Conversations with the Naïve: The Real Debt Dilemma

I recently had a friend of mine who reads this blog ask if I “ever have any fun in my life, and what my future looks like?” This person referenced that the blog here hates debt, and apparently no one on the editorial staff will spend a dollar, on anything. This is complete and utter malarkey. What we are doing on this blog isn’t pointing out you should be eating a diet of ramen every day, we are pointing out that life should be lived within your means, but also with an eye toward the future. No one on this blog is a financial advisor who believes in telling clients not to take trips or have fun, while they live the good life. I’ll explain further below.

Sadly today we live in a world of illusion where style is far more important than substance. We as a society tell people to splurge on unneeded things constantly. We no longer view a pay check as revenues earned, we view it as a means to pay our monthly bills, and that is the wrong approach. We run everything through the credit card under the guise of a 1% cash back, or the 30 day terms. We see a red tag that proclaims “sale” and feel compelled to buy. The blog posts on this site have nothing to do with hoarding your money, buying gold, or locking yourself in your house and refusing to part with it. It is about planning for a very uncertain future, no one has a crystal ball, and things can change very rapidly as we have learned with the Coronavirus and its direct impact on the stock market, and global/domestic travel.

Case number 1: The former girlfriend who works 3 hours a day, takes 2 classes a semester at a local junior college. She is always broke well prior to the end of the month. After a little uncovering, the main culprit was marijuana. In a close second, credit card debt, and late car payment fees. All of this is a result of a general lack of drive and care towards her future, keep in mind she is 30. Her most important and immediate goal is getting stoned. Her intermediate goal is getting married and having kids, sounds like career advancement is on hold indefinitely.

Case number 2: The alcoholic guy we detailed some time ago. Never has any money, and is subletting a bedroom in the house he rents so he can make ends get close to meeting. While he never has money to buy food, or pay his debts, he has an endless supply of wine that would make a winery jealous. This person is on his 4th DUI in his 80 years on this earth and has recently been banned from drinking at church functions from 2 church groups. Most folks dream of their golden years traveling or relaxing, he lives his stumbling and stammering.

Case number 3: The guy who is 75k in credit card debt, in addition to his other bills as detailed here. He has champagne taste on a beer budget and wants a bailout. He is very desperate now and likely to lose both cars, and his house, and possibly his marriage. Keep in mind he has 2 young children to boot. His life is very similar to a bad car wreck, you know you shouldn’t look, yet you can’t take your eyes off of it.

Case number 4: A guy I have known since college, he got his now wife pregnant, and their kid is very special needs. He just recently wrapped up his degree, they got married, they have no income as she must stay home with child, and he is an intern…at age 33. Credit card debt? You guessed it, and they live in a bedroom at his parent’s house.

Case number 5: A person I’ve also known since college. Student loan and credit card debt, a 33% vehicle loan, every add-on imaginable, because well you only live once, and works a zillion hours a week at a theatre. I call her “red tag lady” because she needs to buy something everywhere she goes, and the only concept of a budget she has is when her card is declined, that means she needs to pay toward it. Case in point. We went out to dinner and keep in mind our coupon included enough food for 2, she decided to add on an appetizer and order take-out bacon fried rice on top of what amounts to a pretty large meal to begin with. A $45 coupon quickly turned into an $85 meal, with no alcohol included by the way. The most important thing in her life is finding a boyfriend right now, or as I call it a bailout.

Case number 6: A fellow church goer. Major health issues, all of them self-induced, fast food is a staple of the families diet, as in three times a day every day. He refuses to work, forcing his wife to labor almost all hours of the day. Credit cards? Check. High Interest loans? Check. A massive drug addiction? Check, he blames it on opioids. He is a hopeless case.

Now contrast that to myself.

I worked very hard at my job, a boutique office with just 1 colleague. Drove a 14 year old car until it finally decided to cry uncle, saving me a pant load on car insurance and car payments. I learned to cook, and budget at a very early age, and had to bite the bullet and live at home for about 3 years after college while I found my career and learned a budget. While I may have hit the bottle a bit (a habit I’ve since kicked) I learned quite a bit during my time at home. I banked money, and invested in myself. I learned everything about the industry I worked in, almost obsessively. By year 3, I was going to take the test to start my own business with this industry, I passed, becoming the youngest ever. 2 years later I applied for and was accepted to take over someone’s office who was retiring, I was elated, maybe a bit scared but elated. My office partner (boss) took me out to lunch and said I can’t believe I’m going to lose you, but I’m going to make you an offer you can’t refuse. He made me partner and my cut is 49% of the business after tax income, he is still the owner, and a majority one at that. I agreed, and my life has changed big time since that date. I bought my house 5 years ago, and am making double payments to reduce my mortgage (I don’t call a mortgage debt) and while I had to buy a new car, I chose to lease and the terms are 0%. I have no debt and never had any. I may pay with credit cards but I pay in full each month. I started my Roth IRA at 25, and at present its value is about $75,000. I also have a stock “mad money” account valued around $75,000. This is in addition to about $15,000 in emergency savings which will only be tapped to pay bills. Keep in mind I’m 34. I have traveled to a bunch of different states and take several trips a year.

Conclusion: Contrast me to the 6 cases named above, it’s not an exercise in tooting one’s horn. It’s about knowing a need versus a want, and being meticulous and sticking to a budget. Make yourself indispensable and you will reap the rewards. Praying over decisions and not making rash one’s helps a ton as well. I work in an industry and in a field that is going the way of the dodo bird, hint it’s similar to a travel agent. I know this job will not be there for me… I’m preparing…just like you should be doing for the next recession/political risk. Trust me, banks play fast and loose with credit/financing during boom years, when things go bust they do not play nice. To tie this all together, the 6 cases named above? One claims to be a Republican, the other 5….they all support Bernie, hoping that you and I will be bailing them out. Lather. Rinse. Repeat.

Johnnie Does

PS. The new boat/car/jet ski’s etc. that you had to have fresh off the dealer’s lot; someone else will be buying those off you for a song if a recession hits as hard as I think it will. That someone is likely to be a guy like me who has saved up money during the good times. In the end, that boat/jet ski/car you just had to have but only took out a handful of times will be forfeited and given to another.

Corona Crazy

Folks, I’m sick (no pun intended) and tired of hearing about the Corona virus. A month ago, the Corona virus was caused by someone drinking too much cheap Mexican beer but now it’s the bogeyman that will end civilization as we know it. Folk, Ebola scares that crap out of me but, by comparison, this is not such a big deal.

For consumers of the mainstream media (and Fox News), this illness is being blown way out of proportion. Rush Limbaugh is correct that this illness is being weaponized as a political club to hit Trump with because when it comes to accomplishments, the Dems have no candidate that can lay a glove on him.

Folks, you’d think all the doom and gloom of Y2K was happening now or we just got hit by an EMP blast that left only the media to run the infrastructure of the country.

Original Corona hurt

Due to the media’s impact on low information voters, Corona beer sales are reportedly down 38 percent in recent days. (No word if there is a corresponding slowdown in the sale of lime slices.)

Another case in point: 38% of American beer drinkers surveyed this week said they wouldn’t buy Corona “under any circumstances” at the moment.

Because of coronavirus, 38% of beer-drinking Americans now say they won’t order a Corona

New ways to get Corona

Now we have word that a new infection vector for Corona virus has been found. Besides, bats, reptiles, and other exotic food you might eat from your local market, now your good ole family pet may be to blame. Yep, little fluffy may give you the plague.

THE PET dog of a coronavirus patient in Hong Kong has tested positive for the deadly disease.

The owner of the dog, Yvonne Chow Hau Yee, who lives with her beloved Pomeranian, tested her pet pooch after being diagnosed with COVID-19.

The dog has been quarantined by officials, suggesting they have concerns that the pet could pass on the disease.

If confirmed, the Pomeranian would mark the first case of coronavirus in a pet animal…

Dog tests positive for coronavirus and quarantined in Hong Kong ‘sparking fears pooches could spread the killer bug’

Panic at local Schools

While all this is going on, parents at my son’s school received a letter earlier today that reads in part:

  • Clean hands with soap and water or alcohol-based hand rub
  • Cover nose and mouth when coughing or sneezing with a tissue or flexed elbow. (Our school trains students to cough and sneeze into their elbow.)
  • Avoid close contact with anyone with cold or flu-like symptoms
  • Thoroughly cook meat and eggs
  • Avoid unprotected contact with live wild or farm animals
Part of school letter to parents 02/28/2020

Folks, the stuff listed is what used to be called common sense. Wash your hands when they’re dirty and have protected interaction with farm animals.

Stock Market decline

In response to the feeding frenzy created by the media, this week the Stock Market is down significantly ~ 3,500 points.

Dow Jones week of Feb 24, 2020

Trump is the biggest winner of the week. Need proof I’m right? Where does Wall Street get their news? It’s not Fox or Limbaugh but the Liberal Media—NY Times, ABC, CNBC, etc. Amazingly, the Market is way overdue for a correction and Trump will not get the blame.

In my opinion, Trump dodged a bullet that I didn’t think he could. He is now able to take credit when The Market is up and Corona (and China) gets the blame for the decline. This correction was created by the very same media that has been trying to crucify him since he won the Republican nomination four years ago. The Corona narrative crafted by the media makes it plain that Trump is not at fault for the market correction. Can you say irony?

Conclusion

  • Shut off your television.
  • Buy a Corona from your local market and use a lime to prevent Corona virus—acid in lime kills the germs.
  • Pull out your favorite Clive Cussler book—he died earlier this week—drink your Corona, thoroughly barbeque your favorite farm animal, and enjoy our unseasonably warm weather.
Clive Clussler
Jul 15, 1931 – Feb 24, 2020 (age 88)

Oh, lastly enjoy watching people like 90-Day Guy, the chatty lady at the grocery store, and Wall Street investors panic due to media hype overload.

College Girl’s Offering to Her God

Those of you that paid attention in Sunday School might recall the following passage about a poor woman that offered her all to God:

And she sat down opposite the treasury and watched the people contributing money into the campaign. Many rich people put in large sums. And a poor woman came and put in three small silver coins. And she called her supporters to her and said to them, “Truly, I say to you, this poor woman has put in more than all those who are contributing to the campaign. For they all contributed out of their abundance, but she out of her poverty has put in everything she had, all she had to live on.”
Mark Pocahontas 12:41-44

Here is the Washington Times version:

“A young woman came up by herself [in a selfie-line tonight] and she said, ‘I’m a broke college student with a lot of student loan debt,’” she said. “And she said, ‘I checked and I have six dollars in the bank. So, I just gave three dollars to keep you in this fight.’ That’s what we gotta do. We gotta stay in this fight with people who are counting on us.”

Warren: 2020 quest continues for ‘broke college student’ who gave $3 of last $6 in bank

Not satisfied with the offering from the young woman who was in debt up to her eyebrows and drowning is student loan debt, millionaire candidate, Elizabeth Warren, then shared a video of the encounter with her 3.7 million Twitter followers—most who hail from Russia, China, and Ukraine (if they really exist at all)— so her supporters know that they are expected to give her their all.

If elected, Warren has repeatedly promised to forgive economically ignorant young people that blindly follow the dictates of society and magically forgive all their trespasses. Note that Warren has never actually drafted and introduced any legislation to make this happen while serving in the US Senate—our same criticism of Ted Cruz in 2016—because only at some indeterminate time in the future (like her 2nd term) would she be comfortable enough to make this a reality. However, she has no problem promising to screw all of us that played by the rules and paid off our student loans. “Damn the bad luck’” she said.