I asked an accountant in the office what happens with our interest rate hedges. He thinks we don’t pay gains on the unrealized gains of a hedge, but I’ll try to find out more.

I asked an accountant in the office what happens with our interest rate hedges. He thinks we don’t pay gains on the unrealized gains of a hedge, but I’ll try to find out more.

Feel free to lose money (and feel free to pay gobs of taxes), but don’t get all uppity and try to make money!

Feel free to lose money (and feel free to pay gobs of taxes), but don’t get all uppity and try to make money!

For those who drive more, the marginal cost/mile converges and might be worth it the initial investment.

At the same time, if you are like me and only drive occasionally, it makes better economic sense to buy a cheaper, older car. That might be the better environmental choice too. People rarely consider the effects the manufacture of their new hybrid has on the environment.

Regardless, drivers should be responsible for the full costs of their driving and use of roads…

For those who drive more, the marginal cost/mile converges and might be worth it the initial investment.

At the same time, if you are like me and only drive occasionally, it makes better economic sense to buy a cheaper, older car. That might be the better environmental choice too. People rarely consider the effects the manufacture of their new hybrid has on the environment.

Regardless, drivers should be responsible for the full costs of their driving and use of roads…

The cheapest Toyota Highlander Hybrid is $34,200.

What do you get for your extra $6700?

Roughly 20 vs. 26 mpg.

At 12000 miles per year, and $4/gallon, the annual fuel costs are $2400 vs. $1850.

At a fuel savings of $550/year, the hybrid ought to pay for itself in about 12 years.

Assuming, of course, you oil price predictions are correct. And that you will actually keep this vehicle for 12 years.

And yet, people buy hybrids. Talk about not knowing the true costs of driving!

Then again, they buy extended warranties, too.

I think that it would make more sense to instead buy $6700 worth of oil futures as a hedge against rising prices.

Con artists (and especially government con artists) have a pretty easy time of fleecing people like this. Unfortunately, we get fleeced as well. Maybe the inumerate people are better off, as they aren’t even aware of what is happening.

The cheapest Toyota Highlander Hybrid is $34,200.

What do you get for your extra $6700?

Roughly 20 vs. 26 mpg.

At 12000 miles per year, and $4/gallon, the annual fuel costs are $2400 vs. $1850.

At a fuel savings of $550/year, the hybrid ought to pay for itself in about 12 years.

Assuming, of course, you oil price predictions are correct. And that you will actually keep this vehicle for 12 years.

And yet, people buy hybrids. Talk about not knowing the true costs of driving!

Then again, they buy extended warranties, too.

I think that it would make more sense to instead buy $6700 worth of oil futures as a hedge against rising prices.

Con artists (and especially government con artists) have a pretty easy time of fleecing people like this. Unfortunately, we get fleeced as well. Maybe the inumerate people are better off, as they aren’t even aware of what is happening.