2009 Golf Rules Changes

A MESSAGE FROM THE USGA

The USGA is contemplating sweeping rule changes scheduled to take effect sometime after January.

This is only a preview as a complete new rulebook is being written now. Here are a couple of basic changes:

Golfers with handicaps:
- below 10 will have their dues increase by 35%
- between 11 and 18 will see no increase in dues
- above 18 will play for free or get a check from the club for each round played

The Nassau $ amounts will be changed as follows:
-handicaps below 10 pay an additional $10
-between 11 and 18 - no change
-above 18 you will receive the total amount in the pot even if you do not play


The term “gimme putt” will be changed to “entitlement” and will be used as follows:
-handicaps below 10 - no entitlements
-handicaps above 11 to 17 - entitlements up to one putter length
-handicaps above 18 - if on green, no need to ever putt, just pick it up

The goal of these entitlements is to ensure that everyone’s final score is about the same.


In addition, a player will be limited to a max of one birdie and/or six pars per round. Any in excess must be given to those fellow players who have not yet made a birdie or par. Only after all players have received a birdie or par from the competent player can that Player begin to count his score again.

The concept of a "net score" will be used only for scoring those players with handicaps 18 and above. This is intended to "redistribute" the success of winning by making sure that in every competition the above 18 handicap players will post only net scores against every other player's gross score.

These new rules are intended to CHANGE the game of golf. Golf must be about FAIRNESS only; it should have nothing to do with ABILITY.

Jobs Data

The bad news is that the October unemployment rate went to 6.5% from 6.1% in September. One in 234 American workers filed a new unemployment claim in October. That's kind of scary.

The good news is that 93.5% of people who want to be working are working.

The Abyss

A little unauthorized quote from a Wall Street Tech Research Sales desk this morning:

"One thing that is painfully clear now -- upcoming December quarter results for Tech companies will be frightening. Most had assumed this, but the magnitude of the guide downs from bellwethers CSCO and from QCOM last night (each of whom had October vs. September quarter ends, therefore provided one more month of data) showed massive deceleration in the month of October. While the current month of November could easily get worse, the sobering forecasts we have just heard are actually GOOD things, and hopefully investors can use these opportunities to model out recession-like scenarios for all of their Tech coverage universe. Resetting the bar is a critical first step to establishing a floor in these stocks."

This is a big concept. Cisco and Qualcomm are very important companies. October was much worse than expected. November could be worse than October. Stocks can't bottom until buyers are focused on something other than trough earnings. In my opinion investors don't look past the trough until they understand how deep the trough is.

Down is bad but part of the process.

Well-Played, Microsoft

I had some mice in my garage this week so I put out traps. I caught a couple yesterday, including one that sadly wasn't dead yet. Yahoo probably feels a lot like that mouse.

Microsoft most likely was lucky to walk away from the Yahoo deal at $33. Yahoo was just greedy and stupid. This time around Microsoft seems to be playing it perfectly.

"We made an offer, we made another offer, and it was clear that Yahoo didn't want to sell the business to us and we moved on," Ballmer said. "We are not interested in going back and re-looking at an acquisition. I don't know why they would be either, frankly. They turned us down at $33 a share."

Yahoo will be a part of Microsoft at some point. They're just going to have to beg and squirm some more.

What's Going On?

It's Friday morning and U.S. stock futures are higher, European markets are higher and Asian markets were mixed.

Morgan Stanley Europe just made a big call to buy stocks, looking for 15% outperformance over the next year. WSJ takes another shot at the hedge fund redemptions story. Yawn. We get another bad jobs number in a couple of hours.

The big news today is probably that Obama is going to meet with his financial advisors today then address the press.

My friend Charlie Minter of Comstock Partners does a good job over here articulating the huge structural issues that Obama will have to deal with in order to make any progress with this economy. The deleveraging that still needs to happen, in Charlie's opinion, will prevent economies worldwide from growing for some time. It's probably a fantastic time to go out and find some stocks for your portfolio that can grow.

Uncomfortably Numb

Down 10% in two days. I'd ask but I know the answer - we're not having fun yet. Last week was fun, though.

I for one don't think the outlook has gotten any worse over the last 48 hours. This WSJ headline - "Stocks Sink as Outlook Darkens" - seems like reaching to me.

Things are bad and everybody knows it. Some folks still have to sell stocks and we don't know how many. We are obviously in a recession and historically that has been a better time than most to buy stocks. The problem is that it's a tough time to own stocks.