A Question For The Educated

Can someone please explain to me the Freddie Mac and Fannie Mae bail out? Seriously, I am completely uneducated on this subject. I want to know how the Federal Government can bail out private investors to the tune of 5.8 trillion and dump an additional 200 billion cash into the companies. What would have been the economic implications if the Government had not of done that?

Let's discuss.

 

Problem With Crocs? - The Off Topic Post for the Month

This last year people started wearing these ugly, colored hard foam shoes called Crocs. For those of you old enough to remember, this recent trend is somewhat reminiscent of the 80's fashion flop "The Jelly Shoe."

I just read on Time's website that people who are wearing the footwear phenomenon, Crocs, are having problems with escalators. "One of the nation's largest subway systems — the Washington Metro — has even posted ads warning riders about wearing such shoes on its moving stairways." Here's the the funny part, they actually have a name for new problem - "shoe entrapments." "The U.S. Consumer Product Safety Commission said escalator accidents caused more than 10,000 injuries last year, but the agency has few records of specific shoe problems. Only two shoe entrapments have been reported by consumers since the beginning of 2006. During the past two years, so-called "shoe entrapments" in the Washington subway have gone from being relatively rare to happening four or five times a week in the summer..."

Not only are people having problems with escalators but apparently, in Sweeden, some hospitals want to ban Crocs due to their uncanny ability to build up a static charge and knock out medical equipment.

I don't know why this was so interesting to me. It just struck me as funny. So much press on such an insignificant thing. I can just hear it now, the movie title being read by the famous "movie trailer guy" Don LaFontaine - The Summer of Crock - A Podiatric Plague

So what's the point you ask as I sit here and chuckle to myself? I don't know, but now you have a reason to think it through if you are going to get yourself a new pair of Crocs.

 

The 3000 Mile Oil Change Myth Revisited.

In a May post about the 3000 mile oil change myth, I wrote about the frequency that you should actually change your oil and how the 3000 mile rule was actually a well executed marketing plan by Jiffy Lube.

USA Today recently published an article about how the automakers have extended the recommended interval between oil changes. Below is a chart from the article listing the various automakers and when they recommend you change your oil.



The balance of the article called "Automakers extend intervals between oil changes" outlined why this trend is happening. Improvements in motor oils combined with advancements in car engines allow the oil to last longer between oil changes. Now here is the kicker, according to the article, "Shell Lubricants, which owns the Quaker State and Pennzoil oil brands and operates the Jiffy Lube oil-change chain, long ago abandoned its corporatewide 3,000-mile oil-change message. " To this I say; NOT TRUE. If you go to any Jiffy Lube establishment, they will still put a sticker on your window that tells you to get your oil changed in 3000 miles or 3 months, which ever comes first.

"Whatever the owner's manual recommends should be a starting point for service intervals on oil changes," says Jack McDonald, training development director for Pep Boys, a 593-unit auto-service chain in 36 states. But he says many drivers may fall under the shorter interval of the "severe driving schedule" for stop-and-go, hot weather or heavy-load driving. Oil change indicator lights are designed to take higher-demand driving into account. "It keeps track of how you drive," says Bob Lee, a Chrysler vice president. "

For most people, the "severe driving" condition doesn't apply. People are commuting more and spending more time on the highway. This can't be considered severe. Delivery vehicles and trucks that are towing large campers and construction trailers on a daily basis could definitely fall into that category.

I drive a Chevy Silverado 1/2 ton pickup. I rarely tow anything and most of my driving is done on city streets. I am completely comfortable with the current information available and opt to change my oil every 5000 miles. My truck's computer doesn't tell me to change the oil until well after the 5000 mile mark.

Reduced need for oil changes and engine tuneups come as cars are lasting longer. The median age of cars last year was a record 9.2 years, up from 8.1 years in 1997, R.L. Polk reports. Owners also benefit from reduced maintenance costs for other items. Ford estimates owners can save up to $600 over five years by following the current oil change interval recommendations.

In light of the current information, I guess the myth has been debunked.


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