My Desultory Blog

Posted By RichC on July 28, 2011

I had the chance to test drive the new 2012 Volkswagen Passat TDI diesel on Wednesday and was both surprised and impressed; it was not entirely what I expected. The SEL Premium package made this mid to large sized sedan seem more like the VW Phaeton than it did the previous Passat. Besides the larger size and substantial interior space, the cushier seats and new leather smell was simply luxurious. The premium package on this demo model even sported the remote start option (see video at end) along with a little square of soft touch suede leather insert where your tooshie touches the seats. Nice.

Besides the luxury feel, the real reason I’d be interested in the new Passat is the 40+ mpg 2.0L turbocharged TDI engine and DSG near instant shift transmission. Although I’m partial to a 6-speed manual gearbox, there aren’t many automatic shifters like the 6-speed dual clutch transmissions VW puts in several of their models. The combination of a high torque diesel and quick but smooth shifts of the DSL is terrific. You’d be hard pressed to know you were driving a “diesel” let along a 4-cylinder. My only complaint is the “tiny” lag when starting from a dead stop … which has me wondering what this combination would be like IF VW decides to add a small hybrid battery motor for idle and start-stop?

Behind the wheel the Passat felt much larger than any of the previous Volkswagens that I’ve owned or driven. It is definitely not a GTI or even a Jetta … more like my old Mercedes Benz 560 SEL. Right from the push button start up and finger tip power steering, the Passat felt much more like a domestic luxury car. Not that it was at all boaty, because it was far tighter in the corners than my dad’s Buick. I suspect the fact that the suspension is new makes a difference along with the 17” 18″ wheels and wide tires – it was obviously designed to corner rather than float and lean. This “softer ride” will appeal to a few of us middle age drivers who have shed the minivan and SUV, but appreciate a more comfortable ride. I’m not sure I can take 8 hours of bolstered seats and teeth rattling found in many of the sport sedans and hatchbacks. It’s a tough call for those still wanting the traditional European VW firmness but appreciating the long haul comfort in a larger sedan.

Cargo and passenger room is not a problem in the new Passat. The trunk is large (nearly 16 cu ft) and the rear seat leg and headroom is spacious. When flipping the rear seats down, the pass-thru from the trunk looked long enough to take nap … I didn’t measure the length, but it is substantial.

The controls are not quite as simple as the VWs models only a few years ago, but the instrumention is at least located exactly where you would want them. I had a difficult time while in fiddling with the odd operating powered side mirror joystick switches as well as the unusual sunroof knob, but assume they are instinctive for those under 40 and can be learned by a few of us over that age. I didn’t experiment with the navigation screen, but one push of the map button quickly located my position. Although I like gadgets, I’m not sure the ones being put on many new cars are ones “I would pay to add” (does that mean I’m getting old?) One unusual addition to all of modern instruments was the analog clock which took a prominent center position on the dash … from the first look, it looked a little out of place?

The biggest attraction for those considering the 2012 VW Passat TDI is probably the fuel efficiency numbers: EPA estimates are for 43 highway mpg and 795 miles on a single tank of fuel (sticker on this TDI was 40 mpg highway and 30 mpg city). The other important number isn’t quite as attractive – $33,185 … although really not all that high considering the level of luxury and other vehicles in its class, if there is another vehicle of this size getting 40+ mpg? (the base TDI Passat is just over $26,000).

All in all the new American made Passat TDI should be a near perfect car for those who spend time on the long stretches of US interstates. The diesel engine has proven to be powerful and long lasting. Driving a Passat TDI sedan is a way to drive/ride in comfort while getting the same fuel efficiency most are lucky to get while babying a hybrid or compact car. I’m sure you’ll see more VW TDIs in the coming years.

Category: Automotive, Diesel, Volkswagen | 4 Comments »
Tags: 2012, diesel, passat, tdi, volkswagen, vw

Posted By RichC on July 27, 2011

After an evening mowing the backyard grass on Tuesday night, a cooling dip in the pool was in order. The 90 degree water was a bit warm, but still felt refreshing.

Besides cooling off, I “launched” (chuckle, chuckle) our hard dinghy we call Trinka and “moored” it in the pool. It is out of place, but looked attractive enough as the sun set to take a cellphone photo (left).

I’d say we were enjoying the summer, but frankly with my wife working a few extra hours, my daughter hard at work as a first year resident intern (very few days off) and my son taking summer classes and working his summer job at a golf course … we really don’t have much free time. Perhaps we’ll get a chance to do something this fall … or escape to do a little more sailing next winter?

Category: Misc, Personal, Photos, Sailing | No Comments »
Tags: dinghy, home, pool, trinka

Posted By RichC on July 26, 2011

After spending the weekend cleaning and “rebending” our Brenda’s bumped and bruised Toyota Rav4 into to some semblance of its former self … it now has a new piece of glass (opted for the $191.25 “real thing” rather than tacky Plexiglas). I can highly recommend Rich at Kiss Auto Glass for his quick service and willingness to sharpen his pencil. The final touch will be a new spare tire cover IF Ebay comes through as planned … so don’t bid against me.

Category: Automotive, Personal, Photos | 2 Comments »
Tags: Rav4, repair, toyota

Posted By RichC on July 26, 2011

As Washington DC politicians debate how to deal with the U.S. debt ceiling and rapidly climbing debt, investors are faced with the growing possibility of default or at minimum a very real likelihood that we’ll see our nation’s credit standing slip. Individuals, companies and the government seeking to borrow money will see interest rates increase and their cost of capital cost rise. As this becomes more and more likely, where should a savvy investor park their dollars?

According to 24/7 Wall Street writers Jon Ogg & Douglas A. McIntyre, investors might want to consider the top ten suggestions below.

1. Dividends & Cash Balances

AT&T (T: 29.91, -0.41, -1.35%), with a yield of 5.7%, will not default on its dividend obligations. Neither will General Electric (GE: 18.96, -0.08, -0.42%), which pays a yield of 3.1%. McDonald’s not only pays a high dividend, it has bought back billions of dollars of its own shares in the last five years, which has had the effect of lifting the stock price. Each of these firms has significant cash on hand. Each has strong earnings. There are at least a dozen public companies that meet these criteria. None of these have any chance of default or a suspension of their dividend payouts.

2. Gold

The ability of the US to raise money was once based on its massive gold holdings. That is not true any longer, but it does speak volumes about the value of the precious metal. The trouble with gold as an investment is that the limited supply means that prices will rise as more people and institutions buy it as a “safe haven.” That means the price will probably go higher than its current all-time record. Gold has risen from $1,168 to $1,600 over the last year. A number of analysts believe the price will double from its current value. The risk of gold is that its worth will fall precipitously if there is a solution to the debt disaster, the crisis in the EU and the slow global economy. The US may solve its debt problems, but the other two economic problems that help pressure gold’s price up won’t improve any time soon.

3. T-bills

Treasury bills, as they are officially called, are a form of US government debt, but one that the US will almost certainly never default on. The yield on T-bills is near zero, but some have maturities of as little as four weeks. The financial world knows how little risk is involved in holding T-bills, and will almost certainly not trade them lower. An advantage of T-bills is that they can be bought at almost any bank branch.

4. Swiss Francs

The balance sheet of Switzerland is among the best in the world. Billions of dollars have already poured into the franc this year. This has sent its value up from 95 USD to 125.80 USD in a year, and from 115 USD just a month ago. Investors have to worry that the value of the franc could fall if the logjam over the American budget is solved. Once again, the solution to the US debt problem is not a solution to the world’s financial difficulties and the deficit problems in small EU nations. The Swiss franc will remain attractive.

5. Triple-A Corporate Bonds

There is another way, besides buying stock, for investors to seek the safety of the American companies with the strongest balance sheets. That alternative is to invest in the corporate debt of the last four US firms which still have Aaa ratings of their own–Exxon Mobil (XOM: 84.57, -0.65, -0.76%),

Johnson & Johnson (JNJ: 66.25, -0.47, -0.70%), Microsoft Corp. (MSFT: 27.91, +0.38, +1.38%) and Automatic Data Processing Inc. (ADP: 52.96, -0.27, -0.51%). Economic Data recently made the point that Microsoft’s balance sheet is so solid that its borrowing costs are as good as those of the US government, which means its payout to investors is tiny. The analyst who made the observation wrote, “The company’s $1 billion of 0.875 percent notes due in 2013 and $1.75 billion of 1.625 percent debt maturing in 2015 have the lowest interest rates of more than 3,500 securities in the Barclays

Capital U.S. Corporate Index of investment-grade company debt.” MSFT bonds have low yield, but are remarkably safe.

6. Silver

The devil’s metal is attractive as an investment in the case of a government debt default for many of the same reasons that gold is. Additionally, it has the benefit of being the de facto currency on Wall St. in the extreme cases when paper currency can be devalued. Demand for silver is also high because it has more industrial uses than gold. Another benefit of silver is that its price, at $40 an ounce, makes it more within the reach of many people who cannot afford gold at $1,600 an ounce. Central banks don’t trade as much in silver as in gold because the market is small. It takes too much bulk weight of silver to add up to real value compared to gold.

7. Gold & Silver ETFs

Many investors will turn to exchange-traded funds and other exchange-traded products rather than trying to buy hard gold or hard silver assets. The reason is simple: gold and silver have to be re-certified to be put back into the system. middlemen take a cut as the metals are bought and sold. The two most common ETF proxies for gold are SPDR Gold Shares (GLD) and iShares

Gold Trust (IAU). The SPDR product is highly liquid based on daily share volume and in total dollars traded. If there is a full breakdown in the economy, taking delivery of gold will be nearly impossible. ETFs take away that problem. The iShares Silver Trust (SLV) is by far the top ETF for the metal and it now has a value of more than $12 billion. These ETFs are the easiest way for the public to move in and out of the precious metals. These products also have options that trade actively, allowing investors the ability to make projections for the most extreme cases or for hedging purposes.

8. Singapore Funds: iShares MSCI Singapore Index Fund (EWS)

Singapore may be one of the safest markets for US investors who want international exposure in the event of trouble with US debt. When we covered the nations with Aaa ratings earlier this year, we noticed it was Singapore that had one of the strongest ratings in the world. It is perhaps the most advanced economy of its kind, and this ETF is down less than 3% from its recent highs. This nation was not immune to the recession and would not be immune to future recessions. Its GDP did recover better than that of almost any other developed nation, however. The real problem for US investors is that Singapore is small with a population of about 4.7 million and its GDP is only about $292 billion. Amazingly, this ETF is now close to $1.9 billion in market capitalization.

9. Canadian Funds

CurrencyShares Canadian Dollar Trust (FXC) is the easiest investment for most US citizens to make into a North American nation. Canada has an economy that is based upon hard assets, many of which will rise in value with commodities. Mining, minerals, oil and agriculture dominate the economy. Canada is still the top trading partner of the US. The nation is also English-speaking for the most part and its corporate law is very close to that of America.

10. International Bond Funds

One stand-out international bond fund is the T. Rowe Price International Bond Fund (RPIBX). The average maturity is between 5 and 10 years, so it is not an international money-market fund. Its performance and its holdings could easily make it one of the more focused funds if U.S. investors decide to begin looking for safer opportunity outside US stocks or government debt. It is a $5.6 billion fund with minimal U.S. exposure (4%) and has more than 56% of its weighting tied to the debt of Germany, Japan, the UK, and France.

FoxBusiness

Category: Financial, Politics | No Comments »
Tags: debt, default, deficit

Posted By RichC on July 25, 2011

Category: Misc | No Comments »
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Posted By RichC on July 25, 2011

Since I didn’t finish a longer winded write up last night that I had planned for this morning, I’ll just include a rather impressive Mousetrap style advertising web video below; it took a lot of creativity and work.

This is our Photography-themed Rube Goldberg Machine. We hope you all enjoy the clip!

Watch our video explaining some of the process of getting this video done here: http://youtu.be/qfrmTN0Ly94

Category: Marketing, Photography, Video | No Comments »
Tags: advertising, Marketing, photography

Posted By RichC on July 24, 2011

It was a hot Saturday to be working on the Toyota Rav4, but I figured it was best to use the extra day just in case there was a complication. Instead of having the insurance company fix our car, we have opted to go the salvage title route and accepted the insurance company’s check after the recent hit from behind accident.

After a few days looking for a replacement rear hatch/door by searching salvage yard parts online, I’ve decided to do a little re-bending on my own. “Back in the day,” (as my daughter would say) I was fortunate to have learned a bit about collision and body work and in particular “how” to straighten frames and parts using less than professional tools. In fact, all of my first cars were salvage yard rebuilds and it was profitable enough at the time that I could afford a “nicer” engagement ring – although there are times I wish I would have kept the 1969 Camaro that I sold in order to purchase it.

For the Rav4 that meant a bit of “self-bending” utilizing a chain and a tree. I was able to tweak the rear door back to its approximate position enough to utilized the hinges and latch … but not enough to replace the rear glass with real glass – I’ll look for some Plexiglas or Polycarbonate to form a new rear window next week and bed the edges with a little 3M Marine Grade 5200 sealer/adhesive. Any other low cost suggestions … or way to convince Brenda we need a VW TDI?

Category: Automotive, Personal, Photos | 2 Comments »
Tags: Rav4, repair

Posted By RichC on July 23, 2011

I enjoy political humor as much as the next guy … and have a pretty good tolerance for the lambasting of politicians whether it is by rightwing talk radio or leftwing comedians (most deserve it). In fact, I enjoy listening to a few of the well known loudmouths as a way to hear left and right opinions of political news without falling asleep. I’ve heard Sean Hannity refer to President Obama as the “the anointed one” while sharply criticizing his policies … or the smart guy Jon Stewart railing on conservative politicians with his excellent props.  But I’ve also heard a few other loud mouths choosing not to be as tactful, and unfortunately they seem to find an audience as well. For example, Bill Maher commented that his attacks on Michelle Bachmann or Sarah Palin are “not sexist” attacks  … all the while insensitively belittling them and in particular the Palin family. How low is too low even for the liberal HBO audience of Bill Maher?

“And when I point out that Sarah Palin is a vainglorious braggart, a liar, a whiner, a professional victim, a scold, a know-it-all, a chiseler, a bully who sells patriotism like a pimp, and the leader of a strange family of inbred weirdos straight out of ‘The Hills Have Eyes,’ that’s not sexist. I’m saying it because it’s true, not because it’s true of a woman.”

HBO Real Time with Bill Maher

Category: Audio, Humor, Politics | No Comments »
Tags: bill maher, comedy, hbo

Posted By RichC on July 22, 2011

Category: Politics | No Comments »
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Posted By RichC on July 22, 2011

Category: Automotive, Diesel | 1 Comment »
Tags: cars, Chevrolet, Cruze, diesel