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Is There a Duesenberg in Nevada's Future? 
by Vice President Knight Allen
Originally published on October 9, 2014 - reprinted with permission

    I read a report on the Revel bankruptcy in Atlantic City. The numbers are staggering. It cost $2.4 billion to build, opened in 2012 and is being sold for $110 million. That's a solid 95% loss in two and a half years. Yikes!

    The interesting part of the article came at the back end when it was reported New Jersey Governor Chris Christie provided a$261 million tax package to the enterprise. Ooops!

    Does any of this sound familiar? Gov. Sandoval and a unanimous Legislature gives to Tesla, Inc., a company that has never made a nickel under Generally Accepted Accounting Principles a $1.3 billion package of goodies for their "gigafactory." Kinda makes Christie & NJ look like pikers doesn't it?

    The Tesla deal is, in my opinion, a blatant example of crony capitalism and corporate welfare. A corrupt system in which the people put up most of the money, take most of the risk and the corporation (and its billionaire owner) reaps the profits.

    The whole assumption underlying the Tesla deal is that their electric car is the vehicle of the future. That Tesla is Ford, GM & Chrysler in the 1920's. How reasonable an assumption do you think that is? Isn't it just as possible Tesla is another Duesenberg, Stanley or Hudson? What happens if Tesla starts to actually succeed? Do you think the Big Three, not to mention the foreign manufacturers are just going to sit back and do nothing? The only "sure thing" about Tesla deal is that, no matter which way it goes, Elon Musk, the controlling shareholder is going to walk away with a lot of money. A lot of $$$$$.

    Before we leave Tesla there is another aspect to look at: Electricity costs. The deal provides Tesla with a 10 to 30% discount on electricity rates over eight years. NV Energy will pay for the discount by charging other customers $1.84 more on average per year. Also, the factory will be generating solar power which the company will sell back to NVE at retail prices which are up to 50% higher than wholesale while it buys its "grid" energy at the 10-30% discount. Sweet-if you're Tesla.

    When it comes to Medicare and the changes for 2015, Vern is without a doubt the man to see. While he is prevented from giving specific advice about any plan he is a solid source about general changes within the system.

    I got my "2015 Annual Notice of Changes" from Senior Dimensions and thought I'd share with you what's going on with my Medicare Advantage Plan so you will have some specific numbers you can compare to your own plans. Disclosure: I own no shares of United Health Care (which owns the Senior Dimensions HMO).

  • Monthly premiums stays a $0. 

  • Maximum out of pocket expense stays at $2,500. 

  • Doctor office visits: Both primary and specialist stays at $0. 

  • Inpatient hospital stays remains at $0. 

  • Drug coverage: Initial Coverage Stage: 

  • Tier 1: up from $0 to $2.00. 

  • Tier 2: up from $5 to $8.00. 

  • Tier 3: up from $38 to $45.00. 

  • Tier 4: no change at $95.00. 

  • Tier 5: no change at 33% coinsurance

    I'll bet when they were kids the Mayor and Council members of Las Vegas must have loved playing "kick the can" because that's the game they've been playing with the soccer stadium for years. Now we wait until December to see what Christmas present they give to Cordish/Findlay and how big a lump of coal they give to us.

    Please don't forget: NO on Q3 (& a NO on Q1 won't hurt either).

    Want to give a "CONGRATULATIONS" shout out to our own Dr. Herb Randall on his election to the position of Chairman of the National Silver Haired Congress Board of Directors. This is a prestigious position and they couldn't have picked a better man for the job. Bravo, Doc.

Contact Director Knight Allen