 North Shore Leasing & Funding Corp.
"FOR ALL OF YOUR FUNDING NEEDS" |
Nationwide Account Manager
2 yrs. exp., self-motivated, team oriented, college degree preferred. We approve A to D credits, no equipment restrictions. Resume, salary history, requirements by fax: 631-231-3773 or Steve Kelly at steve@nslf.com
North Shore Leasing & Funding Inc. (NSL&F Inc.) established in 1993, is a national small-ticket equipment leasing company located in Hauppauge, NY.
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Monday, January 29, 2007
Headlines---
Inside Advanta Leasing, January 29, 2001
--- Leasing News Archives
Inside Marlin Leasing, January 29, 2007
by Christopher Menkin
Classified ads---Senior Management
Bulletin Board Complaint up-date
---Balboa Capital, Irvine, CA
Top Stories----January 22--26
Cartoon---Sidney Harris HR interview
Classified ads—Help Wanted
Get the Basics of Municipal Leasing
“Yields on Municipals for banks.”
Leasing #102—by Mr. Terry Winders, CLP
Overweight Cat or Dog Advice
FDIC to hear plea by Wal-Mart this Week
News Briefs---
You May have Missed---
Sports Briefs---
"Gimme that Wine"
Calendar Events
Snapple Real Facts
Today's Top Event in History
This Day in American History
Super Bowl First Grade Class
SuDoku
Daily Puzzle
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Inside Advanta Leasing, January 29, 2001
--- Leasing News Archives
I was an employee of Advanta about 2.5 years ago, but I still know plenty (one of my best friends) of people that worked there. From what I have heard Advanta thought the sale of their mortgage division was going to net them approximately $300 million, instead Chase Manhattan bought it for $1.5 billion. Upon this news they felt they could shut down their "non-profitable" leasing division as a tax write-off and have plenty of money to give out generous severance packages. On Tuesday (1/23/01) they shut their doors and the employees had no idea. My pal, who worked there for 8 years, was in a state of shock. Advanta called all employees into the cafeteria and told them of the shut down and asked them to leave by 1pm. They are not funding any more transactions, approvals or not. I have heard that when you call there that people are told the employees are still there. That is inaccurate. Only customer service (a skeleton crew) and collections remain. Advanta will be paying their employees through April 17th (very generous), then the severance packages start based on your time of employment. I know people that are essentially paid their base salary through November. In all fairness, Advanta employees did not know of the pending closing, so please take a grain of salt when hearing those rumors. The company may have shut down but many of those people were the best and deserve jobs again in this industry.
Best regards,
Name With Held
+ + +
I just spoke with Michele in the 'funding dept' at Advanta regarding 1 deal we have approved with them. She indicated that they will accept documents for approved deals thru 2-26-01 for funding for all Brokers. I reached her by calling Bill Beard's old number 800-357-3676, X3718. There are 3 'funding girls' there finalizing the funding of approved Broker deals thru 2-26-01. Please call her to confirm and help resolve your concern.
Good luck. Joel Addiosn
jaddison@vendorleasing.com
- Vendor Leasing Financial Svcs, Inc.
+ + +
They also confirmed that when they left everyone go on Tuesday they did not have right people retained to process the funding checks. The transaction was ready to fund buy no one was available to sign off on checks. That has been corrected and they expect to have all checks out next week and will fund per the letter.
Also confirmed that everyone was given very generous severance packages.
Sincerely,
Dick
dclark@dcalease.com
+ + +
FYI..,just spoke to a former long time Advanta ex-employee. Told me that employees were treated very well and given very generous severance packages. It's a departure from what most companies exiting our industry have done.
Rick Wilbur\
rick@mediacap.com
Managing Partner
Media Capital Associates,LLC
http://www.mediacap.com
(800) 836-7753 ext. 104
+ + +
I would like to concur with the remarks made by Ted Pritchard of Smokey Mountain Funding, Inc regarding the demise of Advanta. I can't say that I am fully aware of the circumstances that caused their swift exit from the leasing business but will always carry a favorable impression of every employee that I had the pleasure of dealing with.&; They were competent and congenial (a rare quality) and followed through as promised every time.&; Hard to believe that there's not a market for a company with those traits.
Frank Latourell
Director
Rave Financial Services, Inc.
fml@ravefinancial.com
[headlines]
--------------------------------------------------------------
Inside Marlin Leasing, January 29, 2007
a subsidiary of Marlin Business Services Corp.
by Christopher Menkin
Of the original three who left Advanta Leasing, Gary Kester, Gary Shivers, now only Dan Dyer remains. Leasing News attempted to obtain an “on the record” comment from them, including forwarding an advance copy of this article
Leasing News did receive this from George D. Pelose, COO & General Counsel, Marlin Business Services Corp.:
“Given your e-mail message below (and your numerous recent attempts to contact Marlin officers), please be aware of the following:
Marlin does not make any official statements to the press about financial, personnel or other matters. As a public company subject to Regulation FD, we have determined that the best course of action is to release material news through the methods set forth in the securities laws, such as the Form 8-K.
Marlin has (and will) take all necessary steps to protect and defend its employees from public comments that are untrue, disparaging and/or damaging to the employee’s (or Marlin’s) reputation.
Consistent with Item 1 above, you do not have my permission to publish any part of this e-mail. “
Leasing News specifically requested an “on the record comment” and made no agreement to keep any communication otherwise with Marlin Business Services.
Marlin Business Services Corp. (NASDAQ:MRLN) insiders say former president Gary Shivers, one of the original founders, was forced out by Dan Dyer, Chairman, CEO, and Treasurer. *
Dan Dyer
December 21, 2006, Marlin Business Services reported what it took to get Shivers to “resign:” $1,249,590 plus $5,791,676 in stock. **
Leasing News has been working on the story since the announcement interviewing many current and former employees, past officers, and others in the equipment leasing industry as to what was really going on, not just the spin in the press release. ***
A former director told us the stock options put Shivers in the position in two years to run a small ticket company his way. He has kept his house in New Jersey, and many of his friends live
here, not in Florida, Leasing News was told.
Another says he may not. It depends on what the stock is really worth.
The perception by outsiders at the resignation of Shivers sent the Marlin Business Services stock up for a relatively short time. Despite the bullish nature of the stock market, the stock has now given back all of the gain that they had when Shivers left. There are changes being noted in SEC filings, too.
The stock appears basically heading in the other direction. This leads investors, according to those who spoke with Leasing News, “to a very interesting quarterly conference call coming up.”
Yahoo, Friday, January 26, 2007 close: $ 22.28
These insiders, current, past, and also shareholders very close to the situation, report Shivers was the last buffer to Dyer, who runs the operation “military style.” Dyer wanted him out so badly, “My way or the highway,” he paid well at equipment leasing standards for Shivers to depart.
While the insiders have criticism, they also told Leasing News that they still have good friends at Marlin Leasing who are doing the best they can to make the company more profitable; several we
interviewed were employed by Marlin Business Services. For that reason, they wanted their comments all “off the record.”
One insider told Leasing News that Dyer, the former CFO of Advanta Business Leasing is “...very, very smart, can raise money, is 110% dedicated to the company, but when it comes to the ‘hands on’ running of a business and dealing with employees, he has the personality of a bee sting.”
In Marlin’s recent turn, to increase small ticket sales, basis points were cut. It attracted more brokers who could gain a higher commission with a lower “buy rate.” Several of the insiders have either joined
the telephone stockholder reports and/or listened to the recording afterwards. They all advised Leasing News to listen to the question and answer session after the financial report telephone conference call as an indication of the “mood” of Dyer and others who participate in the telephone conference call:
http://www.snl.com/irweblinkx/presentations.aspx?iid=4089372
Two of the sources were reportedly squeezed out directly by Dyer, they report, and perhaps their comments may be considered “disgruntled,” as former past employees in relatively high positions. A third has many friends who own stock and work at Marlin. He believes Marlin has hit the ceiling in the small vendor marketplace. Once a “nimble enterprise,” as he described it, the company now appears to be slowing down due to the weight of too much overhead.
Reportedly in the last few years, the main growth has come from broker business. One insider believes some of this category is being recorded as “generic vendor business” so as not to indicate the dependence on broker business. The love-hate relationship still exists, however, this person explained.
Marlin Leasing went after key national accounts, but basically was reportedly found out of its niche. Even though www.dell.com discloses that small leases with a $1.00 purchase option are from 15% to 20% APR (not including “fair credit” at 23% to 25% plus “fair market value” at end:), it has not slowed the program CIT financial offers as “Dell Financial Services, LP., an independent entity, to qualified Small Business customers.” ****
Marlin Business Leasing is also not priced correctly for the middle ticket marketplace, nor is it active in this field. The company patterned itself after Advanta Business Leasing, where the original three directors came from. It was geared up for the smaller vendor marketplace, as well as attracting broker business with lower rates than the competition.
There also is the question of the growing captive lessor marketplace, especially in national business, that is creating more competition for “A” and “B” credits under $75,000. The insiders labeled it
“desperately” looking for more growth.
The talk was starting an Industrial bank in Utah to handle factoring that would also become a venue for increased leasing sales. The FDIC is now considering requests from financial firms. It is reportedly
Wal-Mart they don’t want to consider. Perhaps Marlin may also enter the credit card market as did their mentor.
Factoring and leasing don’t mix. It is common in the factoring business, such as when Riviera Finance offered leasing, for the application form to state, “What was the date of your bankruptcy.”
Marlin Leasing insiders say the quest to expand the small ticket vendor business is difficult at best, as it is quite fragmented, plus is worked locally by many independent brokers. This is the marketplace brokers thrive, they say.
The independent broker role is not just better service, but the ability to put all types of credits together; yield or rate is not the determining factor, except for controlling their commission. The goal to keeping the small vendor happy is closing the sale and getting them paid as promptly as possible after the sale is made. Brokers can make up to 15 to 20 points on a deal, including a “spiff” to vendors for up to five points, a practice Marlin also pays direct to Vendors from their inside sales.
Equipment leasing brokers don’t need more than a few such profitable deals each month to make a good living, rather than the national sales operation that requires a high volume production as well
as a high closing and signing rate.
Several reliable sources report that Dyer and Shivers met with Computer Discount Warehouse (CDW), CDW Corporation (NASDAQ: CDWC), Vernon Hills, Illinois, a couple of years ago. The CDW internal sales method was to recruit college graduates to generate new accounts. CDW has a high turnover rate with its employees, but they have good account retention and have been able to sustain a high profitability.
Dyer and Shivers were convinced after the meeting to try this strategy. Many new sales reps were hired, sent to Philadelphia for training, paid a salary for one year, and then on month thirteen were forced to forfeit much of the guaranteed salary, and go on a commission plan. During the 12 month training period, they were taught to “follow a script.” This strict sales discipline resulted in a high employee turnover. Only 20-30% of the direct reps made it after the first year. The broker business remained strong, but the cost of training, benefits, and other expenses on the direct side were high. Some insiders believe that the CDW method did not work for Marlin since leasing is less of a commodity than computer hardware. Some believe that it takes stability among the sales force to create and retain a long term vendor relationship. What Marlin found was that as sales reps left, so did many of the direct vendor accounts.
Many stockholders are reportedly looking forward to the sale of Marlin, but the marketplace doesn’t like the going price. The situation, they say, is very similar to Advanta Business Service, who couldn’t get their sale price, sold off their portfolio, and went into the credit card business.
Where is Marlin Business Services leasing going? Most likely they will be purchased by a larger fish, when the price is right. The small ticket market has always attracted the big leasing guys,
who don’t understand how the small ticket market makes a profit, but if they buy into it and lower the rate, they believe it will generate more sales. It also increases their portfolio, plus gives their internal sales staff new vendors and customers to call upon.
At Marlin Business Services Corp., it is Dan Dyer in full control.
He is doing it his way in 2007.
* Investor Relations list of officers
http://leasingnews.org/PDF/Marlin_Officers.PDF
** December 21, 2006 press release
http://leasingnews.org/PDF/Marlin_mngmnt_realignment.pdf
*** from SEC filing
“The Separation Agreement provides for the payment to Mr. Shivers of a lump sum of $365,500.00 on August 1, 2007, and bi-weekly payments thereafter of $28,810.59 until the 18 month anniversary of the Separation Date. $884,090.62, timing for tax purposes, a total of. editor)”
“The Separation Agreement further provides that upon his termination of employment, 18,365 unvested restricted shares and unvested options to purchase 35,501 shares of common stock will become vested on the Separation Date. Options to purchase 138,390 shares will remain exercisable by Mr. Shivers for 90 days following the Separation Date, and options to purchase 45,191 shares will remain exercisable for two years following the Separation Date. (251,812, but a various original buying prices, but gross at $23.00 is estimated at $5,791,676. editor)
http://leasingnews.org/PDF/Marlin-8k.PDF
****
www.dell.com finance $10,000 $1.00 purchase option
For excellent and good credit, computation does not include advance rentals which increase yield, nor
gross profit charges such as “documentation” or
other fees which seem to range from $60 to $150,
lease factors quoted are 36 and 48 months respectively,
along with yields.
Excellent .0361-.02757 15% to 17% (depends on advance)
http://www.leasingnews.org/items/Dell_Excellentcredit.jpg
Good .0361-.02938 18% to 20% (depends on advance)
http://www.leasingnews.org/items/Dell_Goodcredit.jpg
Fair credit (“fair market value only,” no $1.00 out) .0393 .0338 23% to 25% plus “fair market value” at end
http://www.leasingnews.org/items/Dell_Faircredit.jpg
------------------------------------------------
The list:
http://www.leasingnews.org/list.htm
Advanta Leasing
http://www.leasingnews.org/list_alpha_new.htm#adv
Leasing News Archives, January 29, 2001
http://two.leasingnews.org//archives/january01/jan-29-01.htm
[headlines]
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Classified ads---Senior Management
Porsche 911 Carrera $72,4000 MSRP starting
Atlanta, GA
Experienced leasing exec looking for next challenge. Various asset types, deal sizes and channels. Turn-around or expansion opportunity.
Email: akimicata@mindspring.com
Atlanta, GA
Commercial Finance and Leasing expert with proven success in the transportation finance industry. Working directly with company Presidents to develop national transportation programs.
Email: mll1946@comcast.net
Baltimore, MD
25 year veteran of commercial and equipment leasing seeking a senior management position with leasing or asset based financing company in the southeast (Florida preferred)
Email: kellogg_md@yahoo.com
Denver, CO
Fortune 500 GM/SVP wants to team up with aggressive lender looking for Western expansion mid-market equip. finance/leasing. 20+ years experience within Rocky Mountain/Southwest and Ca markets.
Email: legal@csotn.com
Hope, NJ
25 years in optimizing call center operations, collections, billing, and back end revenue generation. Experienced in $7 + billion dollar portfolios. Verifiable achievements.
E-mail: cmate@nac.net
Irvine, CA
Credit executive, portfolio manager and syndication facilitator. Extensive business building experience in small and mid-ticket operations. Highly innovative. Fortune 100 audit and technology skills. Bottom-line manager.
Email: lenhubbard@bigfoot.com
Lawton, OK.
Twenty years, I have been the President of Cash Financial Services. I sold my loan portfolio. Resume. http://64.125.68.91/AL/LeasingNews/Resumes/Michael_Leonard.pdf
email: bobmooreok@email.com
Long Island, NY
Degree Banking/Finance. 13 years leasing exp. Now prez young leasing company where promises were not met. Interested in joining established firm with future.
Email: bob33483@yahoo.com
New York, NY, NJ, Ct Tri-State
Top Exec. middle and big ticket, top skills treasury,funding, ops,transaction detail, syndication, ready to max profit, help build quality operation. right now!
E-Mail: leasefinance@optonline.net
Philadelphia, PA
27 yrs. exp. sales, ops., credit, strategy, P&L mngmet. Most recently created & executed the biz plans for 2 highly successful Bank-owned small ticket leasing subsidiaries.
email: mccarthy2020@comcast.net
Salt Lake City, UT
GM in Sales, Marketing & Operations for Several technology captives. Seeking new adventure in Western States. Consultant of full time.
Email: stevegbdh@hotmail.com
San Francisco, CA
25 years experience w/global leasing company, sales,marketing,business dev., P&L responsibility, asset mgmt, brokering and re-marketing. Interested in joining an est. firm with a future.
Email: rcsteyer@yahoo.com
Sausalito, CA
Sr. Corp. officer, presently serving as consultant, fin. service background, M&A, fund raising, great workout expertise, references
Email: nywb@aol.com
Syracuse, NY
Int. equip. leasing exec. 25 yrs global P&L sr. mngt., including corporate turnarounds, strategic planning, new biz dev., structure finance, contract neg., vendor leasing specialist.
Email: jimh356094@aol.com
Tampa, FL
20+ years small to middle ticket finance, operations/sales management experience. Outstanding record revenue enhancement, operational improvement and team development.
Email: rlindcpa@earthlink.net
Wilmington, DE
Over 15 years experience managing Credit, Risk Management and Fraud operations for large Financial Institution. Proven Results. Anywhere between NYC and DC for right opportunity.
Email: cklous@comcast.net
To place a free “job wanted” ad here, please go to:
http://64.125.68.91/AL/LeasingNews/PostingForm.asp
For a full listing of all “job wanted” ads, please go to:
http://64.125.68.91/AL/LeasingNews/JobPostings.htm
[headlines]
--------------------------------------------------------------
Bulletin Board Complaint up-date
---Balboa Capital, Irvine, California
John Byk, partner, Reche Canyon Mobile Estates, a California Partnership, Colton, California, states the "Evergreen Lease" he inadvertently signed has been resolved, even if not favorably, as far as he is concerned.
"In March of 01, my partner and I signed a leasing agreement with Balboa Capital to pay for the purchase and installation of two Capstone Micro-turbine Generators to be installed in our mobile home park. The cost of the turbines, installation, and ancillary equipment was to be $127,627, "he wrote.”We subsequently spent another $80,000 of our park income to effect the installation.
"We were scammed. Our intention was to use the leasing mechanism to pay for the outright purchase and installation, which is how the lease was sold to us by Balboa.
"We made the 48th and last payment in March and two subsequent payments by mistake: a total of 50 payments of $3298 or $164,900."
Byk told Leasing News the mobile home park was not using the equipment because of the high price of natural gas. He didn’t want to keep the equipment. He wanted to return it.
After talking with all parties concerned, Balboa Capital agreed to place the equipment for sale. Originally Nassau Asset Management was to locate it elsewhere, but within a five month period a buyer was found.
January 16, 2007: Ed Castagna of Nassau Asset Management sent this e-mail:
" If you approve of the cost ( of transportation: $400. editor) I will put you in touch with them directly. I also need the manuals to be “fedexed” (I will provide you with an address where they need to be sent. After the transport company is paid the equipment will be removed, the manuals will be “fedexed” then I agree to sign a document stating X machines were removed on X date."
This letter (acknowledgement) was issued:
http://leasingnews.org/PDF/33798%20Letter.pdf
Ed Castagna told Leasing News:
“If the records were kept and hour readings registered before this equipment was taken off line John Byk and Balboa would have had less aggravation. If provided with the equipment's vital statistics the turbines could have sold for more money 5 months ago. This was a tough asset to sell. Microturbines are out of favor right now due to the high price of Natural Gas and it’s almost impossible to sell them without hour readings.”
Jon Byk sent Leasing News this e-mail:
The party's over
It's time to call it a day
We've burst their phony balloon
Ed's taken the stuff away!
It's time to windup the masquerade
Just make your mind up The Piper has been paid.
Kit,
Thank you for all you help and advice. It’s finally done!
It has been an ongoing nightmare I say as I breath a sigh of release. Ed Castagna, of Nassau Asset Management, has been a big help bringing Balboa to fruition. What a nice guy.
Very best in 2007,
Jon
Copy of posted Leasing News Bulletin Board Complaint:
http://www.leasingnews.org/Conscious-Top%20Stories/BBC_Balboa.htm
[headlines]
--------------------------------------------------------------
Top Stories----January 22--26
Here are the top ten stories most "opened" by readers last week.
(1) Leasing #102 -- “Lease Format” Chart
http://www.leasingnews.org/archives/January%202007/01-22-07.htm#102
(2) Weekly Bulletin Board Complaint Report
http://www.leasingnews.org/archives/January%202007/01-22-07.htm#bbc
(3) Cartoon---Colt’s Fan Celebrates
http://www.leasingnews.org/archives/January%202007/01-22-07.htm#toon
(4) CalFirst Leasing "not up to par"
http://www.leasingnews.org/archives/January%202007/01-26-07.htm#cal
(5) FDIC: Capital Source/Marlin’s ILC
http://www.leasingnews.org/archives/January%202007/01-26-07.htm#fdic
(6) CIT Vendor Finance "Tremendous Growth"
http://www.leasingnews.org/archives/January%202007/01-26-07.htm#citv
(7) 2006 Most Copied Cartoon
http://www.leasingnews.org/archives/January%202007/01-26-07.htm#toon1
(8) Classified ads---Sales Managers
http://www.leasingnews.org/archives/January%202007/01-26-07.htm#ads
(9) Classified Ads—Sales
http://www.leasingnews.org/archives/January%202007/01-22-07.htm#ads
(10) Essential Leasing & Finance Workshops
http://www.leasingnews.org/archives/January%202007/01-22-07.htm#elf
[headlines]
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[headlines]
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Classified Ads---Help Wanted
Account Manager
North Shore Leasing & Funding Corp.
"FOR ALL OF YOUR FUNDING NEEDS" |
Nationwide Account Manager
2 yrs. exp., self-motivated, team oriented, college degree preferred. We approve A to D credits, no equipment restrictions. Resume, salary history, requirements by fax: 631-231-3773 or Steve Kelly at steve@nslf.com
North Shore Leasing & Funding Inc. (NSL&F Inc.) established in 1993, is a national small-ticket equipment leasing company located in Hauppauge, NY.
|
|
Sales Professionals
|
Top commission (75%) plus health and retirement benefits. Full back office, large book funding sources meeting all your clients requirements. Robert Piot: 714-573-9804 or e-mail rpiot@socalleasing.com
|
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[headlines]
---------------------------------------------------------------
Get the Basics of Municipal Leasing
ELFA eNews Daily
Attend the "Municipal 101--The Basics" web seminar, scheduled for Thursday, February 15, 2007, 1:00-2:30pm EST!
$175 Member ELFA
$225 Non-Member
"Municipal 101--The Basics" provides an overview of the municipal leasing marketplace, examines trends in tax-exempt leases, and explores the opportunities for public sector equipment leasing transactions. During the 90-minute web seminar, you will get answers to these and other questions:
--What are some features and benefits of tax-exempt financing?
--How are tax-exempt lease arrangements structured?
--What are the credit requirements?
--Who can be a Lessee?
--Who are the eligible Lessors? Who are the Investors?
--What are the legal & documentation considerations?
Intended Audience
This program is designed for business executives, credit and sales personnel, and for individuals seeking insight into the municipal leasing market and interested in pursuing a new business development opportunity. Most companies will want to include a multi-person team representing these disciplines.
For details and registration information for Municipal 101 - The Basics, please visit:
http://www.elfaonline.org/events/2007/WebMunicipal/
[headlines]
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Leasing 102
Yields on Municipals for banks
by Mr. Terry Winders, CLP
Before you buy any municipal lease you will first need to determine if your bank will be subject to the Alternative Minimum Tax (AMT). If your book income (pre-tax income from your financial statement) is greater than your taxable income you must make the calculation. The 20% tax applies to the taxable income. If it applies, you lose 10% of your tax-exempt interest. (in addition, other preference items may affect calculation.) Secondly, you will need to determine if the leases are qualified or non-qualified. Qualified leases are subject to a 20% TEFRA loss of interest expense while non-qualified leases are subject to a 100% loss of interest expense”, Last, but not least, you will need to determine your cost of funds.
A.) If your bank purchases a qualified lease* and you are not subject to the AMT, how do you calculate the taxable equivalent yield? Assume you purchase a lease to yield 7.00% and your cost of funds is 6.00%.
1. Calculate the TEFRA interest loss.
a.) 34% (tax rate) X 20% loss of interest expense = 6.80%*
b.) 6.80% X 6.00% (cost of funds) = .408% or 41 basis points.
2. Your net yield after the interest loss is 6.59% (7.00 - .41)
3. Your taxable equivalent yield is 9.98%
(.59%/.66) The reciprocal of 34% tax rate is 66%
* A lease to a municipality that does not issue more than ten million tax free financings in that calendar year
B.) Now, suppose you are subject to the AMT and you purchase a qualified Lease to yield 7.00%. What is your taxable equivalent yield?
1. Calculate the interest loss.
a.) 20% (tax rate) X 20% loss of interest expense = 4.00%
b.) 4.00% X 6.00% (cost of funds) = .24% or 24 basis points.
2. Effect of AMT is 10% (1/2 of your tax rate) X 7.00% (purchase yield) = .70 basis points.
3. Your net yield after the interest loss and the AMT is 6.06%
(7.00% / (.24 + .70) = 6.06%
4. Your taxable equivalent yield is 7.58%
(6.06%/.80) The reciprocal of 20% tax rate is 80%
C.) Let’s assume you buy a non-qualified lease** (subject to 100% interest loss) to yield 7.00% and your cost of funds if 6.00%. You are not subject to the AMT tax.
1. Calculate the interest loss.
a.) 34% (tax rate) X 100% loss of interest expense = 34.0%
b.) 34% X 6.00% (cost of funds) = 2.04% or 204 basis points.
2. Your net yield after TEFRA is 4.96% (7.00 – 2.04)
3. Your taxable equivalent yield is 7.51% (4.96%/.66)
** A lease to a municipality that issues more than ten million tax free financings in that budget year
D.) For the worst of both worlds, let’s assume you are subject to the AMT and you purchase a non-qualified lease to yield 7.00% and your cost of funds is 6.00%.
1. Calculate interest loss @ 204 basis points
(Using the calculation in C above)
2. Your net yield after TEFRA is 4.96% (same as C above)
3. Effect on AMT is 10% (1/2 of your tax rate) X 7.00%
(purchase yield) = .70 basis points
4. Your net yield after TEFRA and the AMT is 4.26%.
5. Your taxable equivalent yield is 5.32%
(4.26%/.80) = a negative yield
As you apply your own numbers to these formulas you may draw the following conclusions.
1. Banks have a tremendous incentive to buy qualified tax-exempt leases if they are not subject to the AMT.
2. To buy a qualified lease when you are subject to the AMT, the incentive is marginal.
3. To purchase a non-qualified lease when you are not subject to the AMT, the incentive is marginal
4. To purchase a non-qualified lease when you are subject to the AMT, the incentive is negative
Mr. Terry Winders has been a teacher, consultant, expert witness for the leasing industry for thirty years and can be reached at leaseconsulting@msn.com or 502-327-8666.
He invites your questions and queries.
[headlines]
---------------------------------------------------------------
Overweight Cat or Dog Advice
Overweight cats and dogs and their masters get help at
www.petfit.com.
www.petfit.com
[headlines]
---------------------------------------------------------------
News Briefs---- FDIC to hear plea by Wal-Mart this Week
http://www.ajc.com/business/content/business/stories/2007/01/28/1028sbizwalmart.html
A Who's Who of Fed Policymakers
http://www.cbsnews.com/stories/2007/01/28/ap/business/mainD8MUDVA81.shtml
[headlines]
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You May have Missed--- Chinese woman's fortune rests on cardboard
http://seattletimes.nwsource.com/html/businesstechnology/2003544422_zhang280.html
[headlines]
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Sports Briefs---- Super Bowl rarity: two personable coaches---Ira Miller
http://www.mercurynews.com/mld/mercurynews/sports/columnists/ira_miller/16567827.htm
Turner makes pitch for ‘great job’
http://www.cowboysplus.com/topstory/stories/012907cpcowlede.1eedb1a.html
http://www.dfw.com/mld/dfw/sports/football/16568389.htm
Kiffin adds to his staff
http://www1.pressdemocrat.com/apps/pbcs.dll/article?AID=/20070127/NEWS/
701270365/1015/SPORT0502
Bears try to low-key it, but spectacle in Miami just starting
http://www.chicagotribune.com/sports/football/bears/cs-070128bearsarrive,1,7240287
.story?coll=chi-news-hed
Tiger runs tour win streak to 7
http://www.ajc.com/sports/content/sports/stories/2007/01/28/0129tiger.html
Stanford strikes down No. 2 UCLA with second-half surge
http://www.usatoday.com/sports/college/mensbasketball/games/
2007-01-28-ucla-stanford_x.htm
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“Gimme that Wine” New Winery Boom Spans North America
With 2,116 wineries, California leads the nation in the total number of wineries, followed by Washington (365), Oregon (270), New York (199) and Virginia (105). Colorado replaced Missouri in the No. 10 spot this year, after jumping from 48 wineries to 70.
http://www.winesandvines.com/head_jan07_boom.html
Winter great for sauvignon blanc
http://www1.pressdemocrat.com/apps/pbcs.dll/article?AID=/20070124/NEWS04/
701240393/-1/SPECIAL&THEMES=FOODWINE
Bill would allow online wine sales in Georgia
http://phoenix.bizjournals.com/atlanta/stories/2007/01/22/daily40.html
Wine notes: Mondavi’s new beginning: Continuum
http://www.napavalleyregister.com/articles/2007/01/25/features/food_and_wine/
doc45b8b5a93a33c686785561.txt
Wine Prices by vintage
http://www.winezap.com
http://www.wine-searcher.com/
US/International Wine Events
http://www.localwineevents.com/
Winery Atlas
http://www.carterhouse.com/atlas/\
Leasing News Wine & Spirits Page
http://two.leasingnews.org/Recommendations/wnensprts.htm
The London International Vintners Exchange (Liv-ex) is an electronic exchange for fine wine.
http://www.liv-ex.com/
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Calendar Events This Day Bubblegum Sculpture Day
Freethinker's Day
www.truthseeker.com
Kansas Day
Celebrates Kansas admission in the union as the 34th state on January 29,1861,
Puzzle Day
http://www.setgame.com/set/puzzle_frame.htm
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The name for the space between your eyebrows is "nasion."
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Today's Top Event in History
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This Day in American History 1737- Thomas Paine, American Revolutionary leader, a corset-maker by trade, author of Common Sense, The Age of Reason . Rights of Man, and many other influential works, was born at Thetford, England. "These are the times that try men's souls" are the well-known opening words of his inspirational tract The Crisis, which holds the records for the most widely read in relation to the population in American History and was a major influence on the American Revolution. Paine also is known for proposing the government subsidy of steamboat building in America, that open commerce and great expansion of the country. He died at New York, NY, June 8, 1809, but 10 years later his remains were moved to England by William Cobbett for reburial there. Reburial was refused, however, and the location of Paine's bones, said to have been distributed, is unknown.
1780 - on the coldest morning of one of the most severe winters of record in the northeast, the mercury dipped to 16 degrees below zero at New York City, and reached 20 degrees below zero at Hartford, CT. New York harbor was frozen for 5 weeks, allowing the British to transport a heavy cannon across the ice to help fortify Staten Island.
1802 - John Beckley became the first Librarian of Congress with the starting salary of $2 a day. He served until his death on April 89, 1807. The first library catalog, dated April, 1802, listed 964 volumes and nine maps. Until 1815, when George Watterston was appointed, the librarians were also the clerks of the House of representatives.
1834 -Federal Troops Quell First Labor Dispute
The banks of the Potomac River erupted in violence, as workers on the then-unfinished Chesapeake and Ohio Canal rioted after a planned strike was brutally extinguished. Never exactly a fast friend of indecision or conciliatory action, President Andrew Jackson swiftly called on Secretary of War Lewis Cass to send Federal troops in to quell the workers. While this was an eventful moment for the nation—it marked the first, though hardly the last time Federal troops were deployed to settle a labor "dispute"—it was just another roadblock in the troubled history of the Chesapeake and Ohio Canal. Originally conceived as a transit and trade friendly route between the Midwest and Atlantic seaports, the canal was periodically delayed by fiscal woes, stiff competition from the Erie Canal, as well as the Baltimore and Ohio Railroad. When construction began in 1828, the canal was designed to reach Pittsburgh; by the time the project was abandoned in 1850, the waterway reached Cumberland. Flooding forced the close of the canal in 1924; it was bought by the U.S. government in 1938 and transformed into a national historic park in 1971.
1843- birthday of William McKinley, 25th president of the US (1897-1901), born at Niles, OH. For the third time in the nation's history a president was assassinated. On September 6, President McKinley 25th Pres. 1897-1901)was visiting the Pan-American Exposition in Buffalo, New York. While greeting visitors he was shot twice in the abdomen by a young anarchist, Leon Czolgosz, who was carrying a concealed piston in a handkerchief. Vice-President Theodore Roosevelt, not quite 43 years old, became the youngest person to hold the presidential office. Ironically, according to historians, Conservative republicans had elected McKinley, but to keep what they considered "too liberal" New York Theodore Roosevelt "in line," plus gather votes, they choose him to fill what they considered a "harmless post." This was a period of muckraking journalist such as Frank Norris and Lincoln Steffens exposing the corruption in government and government controlled industries such as wheat, railroad tariffs and land acquisition, "The Octopus", published this year by Norris, dealt with the struggles of farmers in the San Joaquin Valley of California. Forty years later John Steinbeck was to continue the saga.
1845- "The Raven" is published . Edgar Allan Poe's famous poem "The Raven," beginning "Once upon a midnight dreary," is published on this day in the New York Evening Mirror. Poe's dark and macabre work reflected his own tumultuous and difficult life. Born in Boston in 1809, Poe was orphaned at age three and went to live with the family of a Richmond, Virginia, businessman. Poe enrolled in a military academy but was expelled for gambling. He later studied briefly at the University of Virginia. In 1827, Poe self-published a collection of poems. Six years later, his short story "MS Found in a Bottle" won $50 in a story contest. He edited a series of literary journals, including the Southern Literary Messenger in Richmond starting in 1835, and Burton's Gentleman's Magazine in Philadelphia, starting in 1839. Poe's excessive drinking got him fired from several positions. His macabre work, often portraying motiveless crimes and intolerable guilt that induces growing mania in his characters, was a significant influence on such European writers as Charles Baudelaire, Stephane Mallarme, and even Dostoyevsky.
1847- the 500 men of the US Mormon Battalion, along with 50 women and children, arrived at San Diego, CA, having marched 2,000 miles-the longest march in modern military history-since leaving Council Bluffs, Iowa, July 16, 1846, to fight in the war against Mexico. In the course of their trek they established the first wagon route from Sante Fe to Southern California. Their arrival is commemorated each year with a military parade in San Diego’s Old Town.
1861- Kansas became the 34th state. Known as the Sunflower State, the capital of the 34th state is Topeka. Kansas, the Jayhawk State, is named so because before and during the War Between the States, guerillas in the antislavery camp ... known as jayhawkers ... were extremely active in the Kansas territory. The pro- and anti-slavery groups fought such vicious battles that the state was referred to as ‘Bleeding Kansas’.
Trouble in territorial Kansas began with the signing of the 1854 Kansas-Nebraska Act by President Franklin Pierce. The act stipulated that settlers in the newly created territories of Nebraska and Kansas would decide by popular vote whether their territory would be free or slave. In early 1855, Kansas’ first election proved a violent affair as over 5,000 Border Ruffians invaded the territory from western Missouri and forced the election of a pro-slavery legislature.The territory’s admittance into the Union in January of 1861 only increased tension, but, just three-and-a-half-months later, the irrepressible differences in Kansas were swallowed up by the full-scale outbreak of the American Civil War. During the Civil War, Kansas suffered the highest rate of fatal casualties of any Union state, largely due to its great internal divisions over the issue of slavery.
http://memory.loc.gov/ammem/today/jan29.html
1861- Linus Yale, Jr. gets a patent for his invention of a pin-tumbler cylinder. The pin-tumbler cylinder lock with a thin, flat key, still the basis for many combination locks today, was the most successful of Yale’s many lock inventions, which included the first dial combination bank lock and a double bank lock that required two keys to open.
1863 -- Bear Hunter, leader of a Shoshone band, and 224 others massacred in village on Bear River near Great Salt Lake, Utah.
http://www.utahhistorytogo.org/brmassacre.html
1872-African-American Francis L Cardoza elected State Treasurer of South Carolina. He served until 1876 when his enemies accused him of taking money, but was found not guilty. He later served as a teacher at Howard University, received a law degrees, served on several board, in his later life
was principal of a high school.
http://vi.uh.edu/pages/mintz/43.htm
http://stills.nap.edu/btw/Vol.3/html/118.html
1879- Custer Battlefield National Monument, Montana established
http://www.nps.gov/libi/
http://visitmt.com/categories/moreinfo.asp?IDRRecordID=3124&SiteID=1
1880-Birthday of W.C. Fields, stage and motion picture actor (My Little Chickadee), screen writer and expert juggler. Born Claude William Dukenfeld at Philadelphia, PA, died Dec 25, 1946. He wrote his own epitaph: “On the whole, I’d rather be in Philadelphia.”
1896 - United States physician Emile Grubbe became the first to use radiation treatment for breast cancer on his patient, Rose Lee of Chicago.
1889 -- 6,000 railway workers strike for union and end of 18-hour day.
http://historytogo.utah.gov/rrstrike.html
1891- Following the death of her brother, King Kalakaua, Liliuokalani is proclaimed the last monarch of the Hawaiian Islands. Hawaii, first settled by Polynesian voyagers sometime in the eighth century, saw a massive influx of American settlers during the nineteenth century, most coming to exploit Hawaii’s burgeoning sugar industry. In 1887, under pressure from US investors and American sugar planters, King Kalakaua agreed to a new constitution that stripped him of much of his power. However, in 1891, Liliuokalani ascended to the throne and refused to recognize the constitution of 1887, replacing it instead with a constitution that restored the monarchy’s traditional authority. Two years later, a revolutionary "Committee of Safety," organized by Sanford B. Dole, a Hawaiian-born American, staged a coup against Queen Liliuokalani with the support of US Minister John Stevens and a division of US marines. On February 1, 1893, Stevens recognized Dole’s new government on his own authority and proclaimed Hawaii a US protectorate.
1900 - In Philadelphia, Pennsylvania, the American Baseball League was organized. The Philadelphia Athletics, lead by Connie Mack, were original members of the league. Mack would manage the team for fifty years.
1901-Birthday of Allen Du Mont . My father worked for Dr.Dumont in the late 1940’s as a TV writer-producer, “Harlem Detective,” “Captain Video,” “Hands of Mystery.” I used to put “exploding” practical joke in his cigars, and one day at a board meeting, he gave one to Dr. Dumont, who lit it up. My father used to tell me this story often, as Dr. DuMont thought it was very funny and that my father had done it on purpose. Allen Du Mont perfected the cathode-ray tube and manufactured the first commercially available television sets. Brooklyn-born Du Mont worked as chief engineer at De Forest Radio Company until 1931, when his interest in television led him to start his own company, the Allen B. Du Mont Lab. In 1937, he offered his television receivers for sale and set up experimental broadcasting stations. Du Mont continued to shape the television industry. He helped formulate broadcast standards for black and white--and later, color--television, and he worked with the FCC to allocate frequencies for television channels.
1912-In Lawrence, Massachusetts, textile companies were angered when in 1911 state law reduced the workweek for women and children from 56 to 54 hours. They retaliated by increasing the workload, but not the wages. The workers responded with a massive strike. Workers had been averaging $8.76 for a 56-hour work week when a state law made 54 hours the maximum for women and for minors under 18. The companies reduced all hours to 54 but refused to raise wage rates to make up for the average loss of 31 cents per week suffered by each worker because of the reduction in hours. This caused the walkout which rocked the great New England textile industry. Under the aggressive leadership of the Industrial Workers of the World the strike became front-page news throughout the country. Over twenty thousand men, women and children won concessions by staying out of work for ten weeks. A song “Bread and Roses” became popular with the strikers, actually becoming a “marching son” and the rallying cry of the strike. .The strikers--largely Russian Jewish, Eastern European and southern Italian immigrants, although 54 languages were spoken in the mills--learned the art of mass protest. Forming a human chain, they took over the main streets of Lawrence on Jan. 29. After failed attempts to disperse strikers by dousing them with water in the freezing January cold, officers fired into the crowd. A young Italian woman, Anna LoPizzo, was killed. News reports from the time focused on predictions about the "ascendancy of white-skinned races" in Lawrence. They promised that illiterate immigrants couldn't possibly organize themselves on their own. The strikers, running out of food and money, decided to adopt a European tactic, of sending their children to stay with families outside the city. Four hundred letters were received from New York City who wanted the children, and on February 10 over 100 aged 4 to 14 were sent. They were greeted at Grand Central Station by 5,000 Italian socialists singing the "Marseillaise" and the "Internationale". The following week another 100 came to NY and 35 to Barre, Vt. It was becoming clear: if the children were taken care of, the strikers would stay out, for their spirit was high. The city officials in Lawrence, citing a statute on child neglect, said no more children would be permitted to leave.
Despite the city edict, a group of 40 children assembled on February 24 to go to Philadelphia. The railroad station was filled with police, & the scene that followed was described to Congressmen by a member of the Women's Committee of Philadelphia: "When the time approached to depart, the children arranged in a long line, two by two, in orderly procession, with their parents near at hand, were about to make their way to the train when police closed in on us with their clubs, beating right & left, with no thought of the children, who were in the most desperate danger of being trampled to death. The mothers & children were thus hurled in a mass & bodily dragged to a military truck, & even then clubbed, irrespective of the cries of the panic-stricken women & children..." After ten weeks the strikers won important concessions from the woolen companies, not only for themselves but also for 250,000 textile workers throughout New England. During one of the many parades conducted by the strikers some young girls carried a banner with the slogan: "We want bread and roses too." This inspired James Oppenheim to write his poem, "Bread and Roses," which was set to music by Caroline Kohlsaat, There is also an Italian song with the same title, "Pan e Rose," written by the Italian-American poet Arturo Giovannitti which is used by the Italian Dressmakers' Local 89 of the International Ladies' Garment Workers' Union.
http://www.metroactive.com/papers/cruz/03.10.99/women3-9910.html
http://www.laborheritage.org/iall-ma.html
http://www.spartacus.schoolnet.co.uk/USAettor.htm
http://1912.history.ohio-state.edu/labor/FirstDays.htm
http://www.fortunecity.com/tinpan/parton/2/breadrose.html
1921-the great "Olympic blowdown" commenced in the Pacific Northwest as a small but intense windstorm funneled along the mountains and downed vast expanses of Douglas Fir trees. 8 billion board feet of timber was destroyed. Winds at North Head, WA gusted as high as 113 mph.
1923 – Birthday of film and TV writer Paddy Chayevsky, born The Bronx, New York. . He eventually made a name for himself writing radio and teleplays, one of which became 1955's Marty a touching tale of a homely butcher and lonely schoolteacher that won Chayefsky his first Oscar. (His first credit was 1951's As Young As You Feel which was adapted from his story.) Dividing his work between Hollywood and Broadway over the next two decades, Chayefsky penned a series of acerbic works that were often heavy on social commentary, like The Bachelor Party (1957), the Marilyn Monroe-inspired The Goddess (1958), The Hospital (1971), which won him his second Oscar, and Network (1976), which brought in a third. He also adapted such films as The Americanization of Emily (1964) and Paint Your Wagon (1969). Chayefsky's last film was the Ken Russell extravaganza Altered States (1980). The director's decision to have the actors deliver Chayefsky's dialogue in breathless, rapid-fire manner so infuriated the author that he had his name withdrawn from the credits. He did a teleplay called "The Man Who Loved Dickens," based on a section of Evelyn Waugh's A Handful of Dust, about a illiterate man in a South American jungle who holds a lost explorer captive so the latter can read Dickens to him. Died August 1, 1981, New York City, NY
http://us.imdb.com/Name?Chayefsky,+Paddy
http://www.turnerclassicmovies.com/ThisMonth/Article/0,,1180|1181|1185,00.htm
1924- Carl Rutherford Taylor of Cleveland, OH, obtained a patent for his invention of an ice cream cone rolling machine. It was a “ machine for spinning or turning a waffle”, enabling ice cream cones
to become very popular.
1926- The first African-American female lawyer admitted to practice before the Supreme Court was Violette Anderson of Chicago, Illinois.
1928-Birthday of vocalist Joan Shaw, Newport News, V
http://www.officepark.co.uk/salena-jones/biog2.htm
1929 -- Seeing Eye Guide Dog Organization forms.
http://www.seeingeye.org/AboutUs.asp
1929- Glen “Fireball” Roberts, auto racer born at Daytona Beach,FL. Roberts was one of the most popular stock care racers in NASCAR history. He won 35 races in 206 starts from 1950 to 1964 when he was critically injured in a fiery crash. Died at Charlotte, NC, July 7, 1964.
1929--Drummer Ed Shaughnessy birthday
http://www.angelfire.com/mac/keepitlive/drummers/ed.htm
http://www.promark-stix.com/ss/artists/EdS.html
1937- Tommy Dorsey records Marie, Song of India, NYC. ( Victor 2555523)
1939-Birthday of singer Jeanne Lee, New York City, died October 24, 2000
http://www.nprjazz.org/programs/jeannelee.html
http://users.erols.com/eye/jeannelee.html
http://www.edmicheljazzproducer.com/jeanne_lee.htm
1944 - No. 1 Billboard Pop Hit: ``My Heart Tells Me,'' Glen Gray Orchestra.
1947- Herbie Fields records Dardanella ( Victor 20-2274)
1947- Arthur Miller's "All My Sons" premieres in New York City NY
http://www.shunsley.eril.net/armoore/gcse/allmysons.htm
http://www.amazon.com/exec/obidos/ASIN/0783226721/inktomi-videoasin-20/
002-1241397-9042458
1949---Top Hits
A Little Bird Told Me - Evelyn Knight
Far Away Places - Margaret Whiting
Buttons and Bows - Dinah Shore
I Love You So Much It Hurts - Jimmy Wakely
1950- Heavyweight Jack Dempsey was voted the greatest boxer of the first half of the 20th century in a poll of sportswriters and broadcasters conducted by the Associated Press. Dempsey polled 251 votes to runner-up Joe Louis’s 104.
1954- Birthday of talk show host Oprah Winfrey ( hey, when are you going to let David Letterman
on your show?! ) 1959 - Walt Disney's classic animated film, Sleeping Beauty, was released in theaters on this date. Reviews and reactions were mixed, as Disney had deviated from the style of animation the public had grown accustomed to.
1957---Top Hits
Singing the Blues - Guy Mitchell
Don’t Forbid Me - _Pat Boone
Jamaica Farewell - Harry Belefonte
Singing the Blues - Marty Robbins
1958- Paul Newman marries Joanne Woodward
Creating one of the most enduring of Hollywood marriages, Hollywood stars Paul Newman and Joanne Woodward wed. The couple became politically active, lobbying for liberal causes and supporting Democratic candidates. Newman was appointed by President Jimmy Carter to serve on a United Nations Conference on Nuclear Disarmament. In the 1980s, Newman launched a line of food products as “Newman’s Own, including salad dressing and pasta sauce, donating the profits to charity. ( The salad dressing is my favorite ). Both Newman and Woodward have won Academy Awards: Woodward in 1957 for The Three Faces of Eve, and Newman in 1986 for The Color of Money. I saw them interviewed on the Today Show recently and they are still going strong.
1958-Challenge Records releases "Tequila" backed with "Train to Nowhere" by the Champs. The A side will make it to Number One in mid-March. One other note...the Champs included Jim Seals and Dash Croft, later to become Seals and Crofts.
1962-Warner Bros. Records signs the folk trio Peter, Paul & Mary. They will go on to have big hits with harmonized versions of such Bob Dylan songs as "Blowin' in the Wind" as well as "If I Had a Hammer," "Puff the Magic Dragon" and "Leaving on a Jet Plane."
1964 - For the 1965 to 1969 seasons, NBC-TV agreed to pay $36 million for the broadcast rights to the American Football League games. CBS already secured the National Football Conference.
1964- Dr. Strangelove premieres : Stanley Kubrick's black comic masterpiece, Dr. Strangelove or: How I Learned to Stop Worrying and Love the Bomb opens in theaters to both critical and popular acclaim. The movie's popularity was evidence of changing attitudes toward atomic weapons and the concept of nuclear deterrence. The movie focused on the actions of a rogue U.S. officer who believes that communists are threatening the "precious bodily fluids" of Americans. Without authorization, he issues orders to U.S. bombers to launch atomic attacks against the Soviet Union. When it becomes evident that some of the bombers may actually drop their atomic payloads, American President Merkin Muffley frantically calls his Soviet counterpart. The Russian leader informs Muffley that an atomic attack on the Soviet Union will automatically unleash the terrible "doomsday machine," which will snuff out all life on the planet. Muffley's chief foreign policy advisor, Dr. Strangelove, reassures the president and chief officials that all is not lost: they can, he posits, survive even the doomsday machine by retreating to deep mineshafts. Close scrutiny of the Dr. Strangelove character indicated that he was probably a composite of three people: Henry Kissinger, a political scientist who had written about nuclear deterrence strategy; Edward Teller, a key scientist in the development of the hydrogen bomb; and Wernher von Braun, the German scientist who was a leading figure in missile technology. Who can forget the character riding on the bomb falling out of the bomb bay to Russia:
The film is near its conclusion with the unforgettable scene of the "Leper Colony" bomber plane approaching closer and closer to its target. As the airship approaches its new objective with the bombing plane's theme song: When Johnny Comes Marching Home Again playing on the soundtrack, Major Kong and bombardier Lieut. Lothar Zogg (James Earl Jones) make final bomb run technical checks: bomb fusing circuits, the bomb arming test lights, the primary trigger switch override, the track indicators for maximum deflection, the detonator set at zero altitude, and safety releases. Then Kong finds that one of the bomb bay doors won't open - "the teleflex drive cable must be sheared away." He leaves his cockpit seat to fix to faulty bomb-release mechanism manually, telling his co-pilot Capt. G. A. "Ace" Owens (Shane Rimmer): "Stay on the bomb run, Ace. I'm goin' down below and see what I can do." He proceeds through the hatch to the bomb bay, telling the D.S.O. and crew:
Stay on the bomb run, boys. I'm gonna get them doors open if it hare lips everybody on Bear Creek. There are two huge nuclear warhead bombs in the foreground, each labeled with sexual salutations: "Hi There!" (a homosexual advance), the other labeled "Dear John!" (the typical opening of a letter that ends a relationship). Kong sees a sparking tangle of wires, and climbs astride the "Hi There!" bomb like a bucking bronco, fanning the flaring sparks with his cowboy's Stetson hat. Sweating profusely, he busily works to fuse two wires together to rewire the door circuitry. Ace asks anxiously: "Roger, 3 miles. Target in sight! Where in hell is Major Kong?" as Kong attaches an alligator clip to a patch panel above his head, causing the bomb doors to open wide.
The film has given us a memorable cultural image. When the bomb doors open, he first grabs onto his Stetson to avoid losing it in the sudden draft of air. The Hi There! bomb is dislodged, with Kong riding on it - the huge bomb [a potent swollen phallic symbol] between his legs. The bombardier asks: "Hey, what about Major Kong?" Kong is flailing the bomb with his hat like a rodeo cowboy atop a bucking bronco, howling wildly toward oblivion: "YAHOO!! YAHOO!!" as it malevolently descends toward its target and detonates in a white, climactic flash on the ground.
http://wso.williams.edu/~mhacker/strangelove2.html
http://www.filmsite.org/drst.html
1964 - No. 1 Billboard Pop Hit: ``I Want to Hold Your Hand,'' The Beatles. This first American release by the Beatles is one of the biggest selling British singles of all time with worldwide sales of 15 million copies.
1965---Top Hits
Downtown - Petula Clark
You’ve Lost that Lovin’ Feelin’ - The Righteous Brothers
The Name Game - Shirley Ellis
You’re the Only World I Know - Sonny James
1966 - "Sweet Charity", starring Gwen Verdon, opened at the Palace Theatre in New York. The Neil Simon musical was an adaptation of the Federico Fellini film, "Notti di Cabiria". The play lasted for 608 performances. In 1969, Hollywood produced a big-budget version starring Shirley MacLaine.
1966-The Bobby Fuller Four's "I Fought The Law" is released
1966-Folk singer Joan Baez wins three gold records this day, for the albums "Joan Baez," "Joan Baez, Vol. 2" and "Joan Baez in Concert."
1968 - Gore Vidal's controversial sex novel, Myra Breckenridge, was published by Little, Brown & Company on this date. It was later made into a film starring Raquel Welch and Mae West.
1968 - Coach Adolph Rupp, of the Kentucky Wildcats, got win #772, becoming the winningest coach in college basketball history.
1968 --President Johnson requests additional funds In his annual budget message, President Lyndon B. Johnson asks for $26.3 billion to continue the war in Vietnam, and announces an increase in taxes. The war was becoming very expensive, both in terms of lives and national treasure. Johnson had been given a glowing report on progress in the war from Gen. William Westmoreland, senior U.S. commander in South Vietnam. Westmoreland stated in a speech before the National Press Club that, "We have reached an important point when the end begins to come into view. I am absolutely certain that, whereas in 1965 the enemy was winning, today he is certainly losing. The enemy's hopes are bankrupt." The day after Johnson's budget speech, the communists launched a massive attack across the length and breadth of South Vietnam. This action, the Tet Offensive, proved to be a critical turning point for the United States in Vietnam. In the end, the offensive resulted in a crushing military defeat for the Viet Cong and the North Vietnamese, but the size and scope of the communist attacks caught the American and South Vietnamese allies by surprise. The heavy U.S. and South Vietnamese casualties incurred during the offensive, coupled with the disillusionment over the administration's earlier overly optimistic reports of progress in the war, accelerated the growing disenchantment with the president's conduct of the war. Johnson, frustrated with his inability to reach a solution in Vietnam, announced on March 31, 1968, that he would neither seek nor accept the nomination of his party for re-election.
He died shortly after he retired as a broken man.
1973 - Johnny Rivers was awarded a gold record for "Rockin’ Pneumonia and the Boogie Woogie Flu".
1973---Top Hits
Superstition - Stevie Wonder
Crocodile Rock - Elton John
Your Mama Don’t Dance - Kenny Loggins & Jim Messina
(Old Dogs-Children And) Watermelon Wine - Tom T. Hall
1973- the first pilot on a regularly scheduled major airline who was a woman was Emily H. Warner. She was hired by Frontier Airlines as the second officer ( co-pilot) on a Boeing 737.
1974 -Fighting continues in South Vietnam .
The fighting continues in South Vietnam despite the cease-fire that was initiated on January 28, 1973, under the provisions of the Paris Peace Accords.
This latest fighting was part of the ongoing battles that followed the brief lull of the cease-fire. The Peace Accords had left an estimated 145,000 North Vietnamese troops in South Vietnam when the cease-fire went into effect. Renewed fighting broke out after the cease-fire as both sides jockeyed for control of territory throughout South Vietnam. Each side held that military operations were justified by the other side's violations of the cease-fire, resulting in an almost endless chain of retaliations. During the period between the initiation of the cease-fire and the end of 1973, there were an average of 2,980 combat incidents per month in South Vietnam. Most of these were low-intensity harassing attacks designed to wear down the South Vietnamese forces, but the North Vietnamese intensified their efforts in the Central Highlands in September when they attacked government positions with tanks west of Pleiku. As a result of these post-cease-fire actions, approximately 25,000 South Vietnamese were killed in battle in 1973, while communist losses in South Vietnam were estimated at 45,000.
1977 –Normally we do not write about deaths, but on this day gifted comedian and television actor Freddie Prinze, age 22, committed suicide by shooting himself in the head with a revolver in front of Martin "Dusty" Snyder, his business manager. He died in a Los Angeles hospital 36 hours later. Prinze catapulted to fame in the television sitcom, Chico and the Man, and experienced many emotional problems as a result, as well as a divorce. His suicide note read, "I cannot go on any longer." It was later determined that the suicide was actually intended as a practical joke by Prinze, who was under the influence of Quaaludes. He had faked suicide attempts in front of network secretaries earlier that day. Whether Prinze thought the gun was empty, thought that the safety was on, or just wasn't thinking due to the drugs, the joke he thought he was pulling on Snyder resulted in his untimely death. Modern history is full of such incidents including Russian Roulette or thinking the gun was not loaded and proving it by pointing to the head and pulling the trigger as one famous rock ’n ’roll musician did back stage after a performance.
1977 - Rose Royce took the #1 spot on the music charts with "Car Wash", from the movie of the same title. The song lasted a week at the peak before dropping away.
1979 -- President Jimmy Carter commutes the sentence of Patty Hearst.
1981- Dolly Parton barreled to the top of the charts with "9 to 5," her immortal paean to the woes of the- daily grind. "9 to 5" was also the title and theme song of the hit movie starring Parton, Jane Fonda and Lily Tomlin as disgruntled secretaries who exact revenge on their lecherous boss, played by Dabney Coleman.
1981---Top Hits
(Just Like) Starting Over - John Lennon
Love on the Rocks - Neil Diamond
The Tide is High - Blondie
9 to 5 - Dolly Parton
1983 - A series of Pacific coast storms finally came to an end. The storms, attributed in part to the ocean current, "El Nino", produced ocean swells 15 to 20 feet high which ravaged the beaches of southern California. Much of the damage was to homes of movies stars in the exclusive Malibu Colony.
1988--- The Canadian rock band Prism, which faded in 1983 after earlier hit records and a Juno award, staged a reunion at the 86 Street club in Vancouver. The reunion group featured three of the original members - Lindsay Mitchell, Rocket Norton and Al Harlow. Prism was formed in 1977 and produced such hit records as "Armageddon," "Spaceship Superstar" and "Night to Remember." It won the Juno for Group of the Year in 1980 and served as a springboard for writers such as Bryan Adams and Jim Vallance. 83 record.
1988 - No. 1 Billboard Pop Hit: ``Need You Tonight,'' INXS. The group is only the third from Australia - and the first in five years - to top the pop chart.
1989---Top Hits
Two Hearts - Phil Collins
When I’m with You - Sheriff
When the Children Cry - White Lion
Deeper Than the Holler - Randy Travis
1989 - The first of 20 episodes of the children's television program, Shining Time Station, the half-hour American version of Britain's "Thomas the Tank Engine and Friends," was aired in the United States on PBS. Former Beatle drummer Ringo Starr was originally cast as the 18-inch-tall Mr. Conductor. A few years later, he was replaced by comedian George Carlin.
1990 - Severe thunderstorms in the southeastern U.S. spawned a tornado which destroyed three mobile homes near Blythe GA injuring six persons. A fast moving cold front produced high winds in the western U.S. Winds along the coast of Oregon gusted to 65 mph at Portland, and high winds generated 22 to 26 foot seas which battered the coast. Winds near Reno NV gusted to 78 mph. High winds also buffeted the Central High Plains, with gusts to 94 mph reported at La Mesa CO.
1993- An interim policy on ending the ban on homosexuals in the US military was announced by President William Clinton. The policy ended the questioning of military recruits regarding their sexual orientation but allowed removal of openly homosexual members from active service. President Clinton's announced policy of "don't ask, don't tell, don't pursue" allowed homosexuals to serve in the armed forces as long as they were discreet.
1995- the San Francisco 49ers defeated the San Diego Chargers, 49-26, to win Super Bowl XXIX, San Francisco scored on the third play of the game and led, 28-10, at half. 49ers quarterback Steve Young was the game’s Most Valuable Player.
1996- the London production of Andrew Lloyd Webber's "Cats" became the world's longest-running musical with 6,138 performances. It had opened at the New London Theatre on May 11th, 1981. The previous record was held by the Broadway production of "A Chorus Line."
1996-Sun exhibited a prototype of a simple, inexpensive computer that allowed users to surf the Web or corporate networks. A number of similar network computers, or "thin clients," hit the market in 1996-97. The network model — where small, inexpensive machines communicated with a more sophisticated, central info hub — proved economically attractive to large companies.
1996-Country superstar Garth Brooks refused to accept his American Music Award for Favorite Overall Artist. Brooks said that Hootie and the Blowfish had done more for music that year than he did.
1998 - A bomb exploded outside the New Woman, All Women Health Care Clinic in Birmingham, Alabama. The explosion killed Robert Sanderson, an off-duty police officer working as a security guard. Emily Lyons, a nurse, was critically injuring. Police have been searching for suspect Eric Rudolph in the North Carolina area.
http://www.fbi.gov/most
http://www.covenantnews.com/eric/rudolph/eric01.htm want/topten/
fugitives/rudolph.htm
Superbowl Champions This Date
1995 San Francisco 49ers
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American Football Poem
A first grade teacher explains to her class that she is a Chicago Bears fan. She asks her students to raise their hands if they are Bears fans, too. Not really knowing what a Bears fan was, but wanting to be liked by their teacher, their hands flew into the air.
There is, however, one exception. Susie has not gone along with the crowd. The teacher asks her why she has decided to be different. "Because I'm not a Bears fan" she reports.
"Then," asks the teacher, "What are you?"
"I'm a Indianapolis Colts fan," boasts the little girl. The teacher asks Susie why she is a Colts fan. "Well, my Dad and Mom are Colts fans, so I'm a Colts fan, too" she responds.
"That's no reason," the teacher says. "What if your mom was a moron, and your dad was an idiot. What would you be then?"
Susie smiles and says, "Then I'd be a Chicago Bears fan."
(Sent to Leasing News by a Colt’s fan. editor)
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SuDoku
The object is to insert the numbers in the boxes to satisfy only one condition: each row, column and 3x3 box must contain the digits 1 through 9 exactly once. What could be simpler?
http://leasingnews.org/Soduku/soduko-main.htm
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Daily Puzzle
How to play:
http://www.setgame.com/set/puzzle_frame.htm
Refresh for current date:
http://www.setgame.com/set/puzzle_frame.htm
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