Bizzy’s AM Coffee Biz-Econ Links (120105)

Oh, How Nice: DOJ Dropping Case Against Andersen

The firm’s conviction was overturned in May. Last week DOJ moved to dismiss:

Federal prosecutors said that it was not in the best “interests of justice,” to retry Andersen on obstruction of justice charges for shredding documents related to the collapse of Enron. The decision was expected in light of the Supreme Court’s decision and the fact of Andersen’s nearly defunct status.

In a separate court filing last week, David Duncan, who oversaw the destruction of Enron-related documents at Andersen, withdrew his guilty plea in connection with his alleged obstruction of the federal investigation of Enron.

Translation: We forced a firm that didn’t deserve it out of business and gave the one guy who appeared to deserve criminal prosecution a chance to skate. Mission accomplished. (/sarcasm)

Brick and Mortar Stores Get Big Cyber Traffic Pickups

The Wall Street Journal (requires subscription) reports that on Cyber Monday “old-school giants Wal-Mart and Target saw much greater increases in Internet visitors than their cyber counterparts, according to recent Nielsen/NetRatings figures”:

Visitors aren’t necessarily buyers, but this could be an early indicator that the Christmas shopping season will be a true blockbuster. If the brick-and-mortar physical store sales increase by more than 4%, AND their cyberstores increase their sales by double digits over last year, AND the online-only outfits do their expected 10%-15% increases, there will be a lot of champagne flowing on New Year’s Eve for reasons other than the changing of the calendar.

Measuring the True Drop in the Cost of Gasoline

Here’s a revealing map (obtained from here; HT ThePeriodical.com):

To get the total tax you pay for every gallon of gas, add the 18.4-cent federal rate to your state’s figure. It’s important to realize that the cost of the product you are putting into your tank has in most cases dropped over 40% from its post-Katrina high.

Example: Indiana. The state’s combined federal and state tax per gallon is 48 cents (29.6 + 18.4). If the total price peaked at $3.10 and is $2.00 today (a 35% drop), that means the pretax priced dropped from $2.62 to $1.52–a 42% drop. Remember how much tax goes into your state’s and Uncle Sam’s coffers the next time gas goes into your tank.