Tuesday, May 28, 2013

In Memorium

(written) May 27, 2013
Each year at this time I go back in my memory to visit a friend and mentor. I joined the Cub Scouts at age 8. The Pack had 160 boys, met on Wednesday and had one adult leader (that is another story). The assistant Den leader was Michael Thomas Glynn. He took me under his wing and became the big brother I never had. He helped me become a Wolf. Then he was promoted to Den Leader and I was chosen to be the assistant. Mike moved up again and I became Den Leader. When I joined the Boy Scouts, Mike was my Patrol leader. I just kept following in Mike's footsteps. Mike had all the merit badges to become an Eagle Scout, but hard as he tried, he couldn't earn the last two required badges, swimming and life saving. He was proud of me when, with his encouragement, I became the first Eagle in Troop 416. Mike went on to graduate 66th in a class of 596 from West Point in 1965. To this day, I remember Mike's enthusiasm on Christmas Eve 1965 when he met my fiancé, Fran. He spoke about the career he hoped to have in the State Department when he completed his military service. Mike went to Vietnam on January 3, 1966. He was a Platoon Leader in Pleiku Province, Vietnam, when he was killed on May 28, 1966. He was the second member of the West Point Class of '65 to die in Vietnam. What might have been? At this time of year, we should look with appreciation and gratitude to the men and woman who serve in our military, and especially to those who have given their lives.
Ed Mallon

Friday, May 17, 2013


As the economy has gone through its many changes, I have continued to watch certain trends. One of the trends is new jobless claims each week. The number for the week is good to know, and we’d like to see it below 350,000, but the four-week average is the important number. We want to see that drop below 350,000. Last Friday, the Labor Department announced the jobless weekly number at 335,000 and the four-week number at 336,000. This was good news.
This information is available to everyone, so it is important to have some personal indexes that are not controlled by the government or media. The BK index is used to get some sense of the impact of inflation on the economy. You will recall that back on September 23, 2010, I discussed the BK index and the alarming 27% jump in the index, while the CPI only went up 3%. Since that time, the index has gone from 1.59 to 1.65, an increase of approximately 3.8% over almost three years. This would indicate that inflation is not rearing its ugly head in the consumer marketplace. (For those of you who have forgotten, this index measures the price of a Junior Whopper with cheese at Burger King over time).
Another index that I use to determine the direction of the economy is the FMAS Index. This index has been pretty reliable at determining the direction of the economy. It is also known as a leading indicator because it tends to decrease before consumer spending as a whole goes down, and tends to rise as consumers begin to spend again. I have been using this index since I realized the income of my wife, Fran Mallon (FM), an artist, and the number of Art Sales (AS), tend to move ahead of the economy. Thus I am pleased to announce that for the first quarter of this year the FMAS Index is up 400%, indicating that the economy is about to become robust!
Another very important index is the EROORES Index (Ed’s random observation of real estate sales). While this index turns out to be hard to quantify, casual observation of my own neighborhood revealed that three houses went on the market during a three-week period, and all were under contract in less than a week. Many of my clients in Denver have noted that housing sales are going like “hot cakes”, and with the help of their observations, I have gathered that the housing market is totally robust. Yes, the economy appears to be headed in the right direction, however slowly that may be.
Ed Mallon