Saturday morning I set out early. It was a day of 'exotic' beauty: devoid of sunshine and unseasonably cool. Craving nature, I went to my neighborhood park with the lagoon and concentric track to breathe deeply and 'sort'. Few people come out on mornings like this. But, as nature is the artist, one is free to choose whether or not to come to the exhibit.
The cloud cover was resplendent. I remember thinking it looked like 'cascading folds of gray brain matter' across the entire sky. Uniformly. I hopped aboard a creative flight of fancy and pretended I was under a dome. There was serious breeze with 'it-really-is-windy' gusts that you would have thought would have altered the cloud cover, if in fact, not blown all out of the sun's way. So; windy, cold, 'dome-y', and isolated.
I had started my tall, dark, Caribou coffee earlier in the coffee shop over the Saturday paper and read about how the Park Service in New York City was reopening the Statue of Liberty's crown to the public for the first time since 9/11. And that day will have been the 4th of July this year. I folded up that thought for further reflection, for the walking laps that are my habit once I have my coffee in hand.
I thought as I walked 'we are going to be able to get inside Her head again', and see if her thoughts on liberty have changed. Eight years is a long time to spend analyzing. By the passage of so much time, and the hurt inflicted on our national psyche, what would the symbol of our United States feel about the inscription on her bronze plaque if she were to come to life and tell us?
The most memorable lines of the inscription, a poem written by Emma Lazarus, reads '. . .give me your tired, your poor, your huddled masses yearning to breathe free . . .' Those on watch since 9/11 have raised our awareness of modern day threats to our liberty and freedom, and enacted measures of precaution to deal with future assaults. Are those people from other countries who do not yet breathe freely still welcome on our shores?
I believe, as she is referred to in the poem as 'The Mother of Exiles', she still wants those willing to work hard and contribute to the mosaic of our society. Her thoughts and wishes are that we must be more vigilant about who we allow in and more active in protecting our way of life, rather than assume someone else will do it for us. Taking poetic license, as she now sees things in clearer perspective eight years later, let all freedom loving Americans strive to do the same.
Saturday, May 9, 2009
Wednesday, May 6, 2009
Mother's Day Reflections
This Sunday will be the second Sunday in May, and we Americans will again celebrate it as Mother's Day: an observance we have kept since President Woodrow Wilson dedicated it as such in 1914.
The ancient Greeks are known to have celebrated the honor of Rhea, mother to all their gods. Early Christians set aside the fourth Sunday in the liturgical season of Lent to honor Mary, the Mother of Jesus. The observance was later expanded to include all mothers and is now celebrated on the above mentioned date in countries such as Denmark, Finland, Belgium, Italy, Turkey, and Australia.
As we quietly reflect on the relationship we have had with our individual mothers, remember that motherhood is a role that women accept that makes human life possible. How well they do in that role depends on a lot of factors: did they come from loving families, are they single moms who have to provide as well as nurture, do they have a good domestic situation providing help and support, are they emotionally secure to meet the constant demands of motherhood? The reflections we devote to our mothers can be nothing but unique. But there are certain common elements that do bind our experiences.
The ability to naturally conceive children occurs according to an 'circadian rhythm' of life, called the child bearing years. It often coincides with the youthful bloom of life, and quite often, as an act of love. It is no accident that the celebration of motherhood occurs during the Spring cycle, season of (re)birth. The season where Hope 'springs' eternal,; the wishes a mom has for her child to grow well and prosper. Fruit of the womb; fruits of 'one's labor'; metaphors celebrating the vital role moms play abound.
As humankind are mammals, human mothers provide nurturing, instill our appreciation for and actual need of human touch. Moms provide that interconnectedness where we celebrate the joy of touch in hugging, shaking hands, and kissing one another to greet, console, and express affection and intimacy.
My mom gave ME a mother's day present a few years back when she was in her mid 70's: a wallet-sized, black and white portrait she had taken when she was 21 years old. Fittingly, the photo is in mint condition. It is of an era I can never have experienced, but her youthful beauty captured in that photograph gave me a profound appreciation for who she was and who she became. I see the young girl full of hopes and dreams for the future that lie ahead; these days I see that young girl as having reached the age of reflection and satisfaction in the life choices she made.
Happy 54th Mother's Day Mom. I've been a lucky son.
The ancient Greeks are known to have celebrated the honor of Rhea, mother to all their gods. Early Christians set aside the fourth Sunday in the liturgical season of Lent to honor Mary, the Mother of Jesus. The observance was later expanded to include all mothers and is now celebrated on the above mentioned date in countries such as Denmark, Finland, Belgium, Italy, Turkey, and Australia.
As we quietly reflect on the relationship we have had with our individual mothers, remember that motherhood is a role that women accept that makes human life possible. How well they do in that role depends on a lot of factors: did they come from loving families, are they single moms who have to provide as well as nurture, do they have a good domestic situation providing help and support, are they emotionally secure to meet the constant demands of motherhood? The reflections we devote to our mothers can be nothing but unique. But there are certain common elements that do bind our experiences.
The ability to naturally conceive children occurs according to an 'circadian rhythm' of life, called the child bearing years. It often coincides with the youthful bloom of life, and quite often, as an act of love. It is no accident that the celebration of motherhood occurs during the Spring cycle, season of (re)birth. The season where Hope 'springs' eternal,; the wishes a mom has for her child to grow well and prosper. Fruit of the womb; fruits of 'one's labor'; metaphors celebrating the vital role moms play abound.
As humankind are mammals, human mothers provide nurturing, instill our appreciation for and actual need of human touch. Moms provide that interconnectedness where we celebrate the joy of touch in hugging, shaking hands, and kissing one another to greet, console, and express affection and intimacy.
My mom gave ME a mother's day present a few years back when she was in her mid 70's: a wallet-sized, black and white portrait she had taken when she was 21 years old. Fittingly, the photo is in mint condition. It is of an era I can never have experienced, but her youthful beauty captured in that photograph gave me a profound appreciation for who she was and who she became. I see the young girl full of hopes and dreams for the future that lie ahead; these days I see that young girl as having reached the age of reflection and satisfaction in the life choices she made.
Happy 54th Mother's Day Mom. I've been a lucky son.
Tuesday, April 28, 2009
Where's Darwin?
Not Charles, the author of 'Survival of the Fittest' genetic studies. This isn't about the "intelligent design" debate.
This is about Darwin, Northern Territories, Australia, focal historical point of the movie "Australia", just released on DVD. It is fictionally based on the February 19, 1942 Japanese bombing of that town, which in the hearts and minds of Aussies is their WW2 'Pearl Harbor'. Rent it and gain a generous insight into the psyche of an earlier Australian era.
It's an Aussie party: past and present screen stars contributed heartily to make this epoch the memorable effort it deserves to be. Jack Thompson isn't familiar to American audiences at large, but is rightfully given a minor, highly visible role. Bryan Brown, much more recognizable (and much grayer), is greatly cast in an elder role of prominence. And the "Now" generation of Aussie Hollywood stars, leads Nicole Kidman and Hugh Jackman are flawless and believable.
Forget Kidman and Tom Cruise; and X-Man Jackman. When in Hollywood, they do as directed. When in Oz, they act as if they aren't acting.
Having had the privilege to live and work in Australia for 2 years, I had access to how Australia views politics, their history, their heroes, their place in the world, their values, etc. In all, a common perception emerges: that of the 'Aussie Battler'. Forget about odds, battle on, give it your best go. This spirit requires courage, often bravery (just talk about Gallipoli to an Aussie), and refreshingly, humility. Success is not as important as having 'battled on'.
In 1942, our world was much smaller. News traveled much slower and imagination figured much more prominently in grasping 'the news'. The screenwriter for the movie 'Australia' incorporated the showing of the movie 'Wizard of Oz' to an awestruck Darwin audience in 1942. Oz is a faraway land somewhere over the rainbow in much the same way as Australia had been to the rest of the world. And for the oldest indigenous race on earth, the Aborigines, who pass down their 'stories' orally, the young character finds the "Rainbow Song" a particularly good story.
Today's world is often changing in ways that we don't understand, with integrity, compassion, and altruism lacking. For a breath of fresh look at how they keep pace 'Down Under'. I have often heard Aussies and non-Aussies refer to Australia as 'Oz'. Maybe it IS more abound the enchantment than the similarity in sound between 'Aussie' and 'Oz'. Having been there, I am guessing the former. Stan
This is about Darwin, Northern Territories, Australia, focal historical point of the movie "Australia", just released on DVD. It is fictionally based on the February 19, 1942 Japanese bombing of that town, which in the hearts and minds of Aussies is their WW2 'Pearl Harbor'. Rent it and gain a generous insight into the psyche of an earlier Australian era.
It's an Aussie party: past and present screen stars contributed heartily to make this epoch the memorable effort it deserves to be. Jack Thompson isn't familiar to American audiences at large, but is rightfully given a minor, highly visible role. Bryan Brown, much more recognizable (and much grayer), is greatly cast in an elder role of prominence. And the "Now" generation of Aussie Hollywood stars, leads Nicole Kidman and Hugh Jackman are flawless and believable.
Forget Kidman and Tom Cruise; and X-Man Jackman. When in Hollywood, they do as directed. When in Oz, they act as if they aren't acting.
Having had the privilege to live and work in Australia for 2 years, I had access to how Australia views politics, their history, their heroes, their place in the world, their values, etc. In all, a common perception emerges: that of the 'Aussie Battler'. Forget about odds, battle on, give it your best go. This spirit requires courage, often bravery (just talk about Gallipoli to an Aussie), and refreshingly, humility. Success is not as important as having 'battled on'.
In 1942, our world was much smaller. News traveled much slower and imagination figured much more prominently in grasping 'the news'. The screenwriter for the movie 'Australia' incorporated the showing of the movie 'Wizard of Oz' to an awestruck Darwin audience in 1942. Oz is a faraway land somewhere over the rainbow in much the same way as Australia had been to the rest of the world. And for the oldest indigenous race on earth, the Aborigines, who pass down their 'stories' orally, the young character finds the "Rainbow Song" a particularly good story.
Today's world is often changing in ways that we don't understand, with integrity, compassion, and altruism lacking. For a breath of fresh look at how they keep pace 'Down Under'. I have often heard Aussies and non-Aussies refer to Australia as 'Oz'. Maybe it IS more abound the enchantment than the similarity in sound between 'Aussie' and 'Oz'. Having been there, I am guessing the former. Stan
Monday, April 27, 2009
Meet Ferdinand Pecora
I have just been introduced to the story of Ferdinand Pecora, and would like to celebrate his accomplishment in this segment. He was a central figure in the reform of the banking laws in the aftermath of the crash of 1929.
He has been referred to as "the Jackie Robinson" of his generation. A Sicilian immigrant of humble beginnings, he was an assistant district attorney from Manhattan when he was appointed chief counsel to the Senate Banking Committee in 1933. He took on the titans of Wall Street, exposed questionable banking practices (like re-packaging bad loans and selling them as bonds), and was named one of the Commissioners to the newly formed Securities and Exchange Commission. He was given full support by President Franklin D. Rooseveldt.
Fast forward to House Speaker Nancy Pelosi and her recent announcement to Tim Geithner that she will form a special commission to investigate the roots of the financial industry collapse along the lines of FDR's "Pecora Commission". A great start.
For this to germinate, it has been suggested by the former chief economist of the IMF, Mr. Simon Johnson, that three things would have to happen. First, a general counsel with the bulldog tenacity of Pecora has to be appointed. (Suggestions have included Elizabeth Warren, current head of the congressional oversight panel of the T.A.R.P. program; Patrick Fitzgerald, federal prosecutor of Scooter Libby and Rod Blagojevich; and New York Attorney General Andrew Cuomo, outspoken critic of Wall Street and Washington's handling of the bailout.
Secondly, a joint congressional commission won't work: an independent commission with subpoena power is needed. (For the last 20 years the financial services industry has been the biggest campaign contributor in all federal election cycles; ties to companies you're questioning is like putting on kid gloves before pointing your finger at them.
Third is to get the kind of presidential support that FDR gave Mr. Pecora. For that to happen, President Obama will have to subject his chief economic advisor Mr. Larry Summers and Tim Geithner, his secretary of the treasury, to intense scrutiny because of their past relations with Wall Street. (Geithner was a disciple of Robert Rubin, who with Summers was in the Clinton Cabinet that witnessed the repeal of the Glass-Steagall Act: the passage of which, in 1934, separated commercial and investment banking.)
David slew Goliath before. Back then he was known as Ferdinand Pecora. Stan
He has been referred to as "the Jackie Robinson" of his generation. A Sicilian immigrant of humble beginnings, he was an assistant district attorney from Manhattan when he was appointed chief counsel to the Senate Banking Committee in 1933. He took on the titans of Wall Street, exposed questionable banking practices (like re-packaging bad loans and selling them as bonds), and was named one of the Commissioners to the newly formed Securities and Exchange Commission. He was given full support by President Franklin D. Rooseveldt.
Fast forward to House Speaker Nancy Pelosi and her recent announcement to Tim Geithner that she will form a special commission to investigate the roots of the financial industry collapse along the lines of FDR's "Pecora Commission". A great start.
For this to germinate, it has been suggested by the former chief economist of the IMF, Mr. Simon Johnson, that three things would have to happen. First, a general counsel with the bulldog tenacity of Pecora has to be appointed. (Suggestions have included Elizabeth Warren, current head of the congressional oversight panel of the T.A.R.P. program; Patrick Fitzgerald, federal prosecutor of Scooter Libby and Rod Blagojevich; and New York Attorney General Andrew Cuomo, outspoken critic of Wall Street and Washington's handling of the bailout.
Secondly, a joint congressional commission won't work: an independent commission with subpoena power is needed. (For the last 20 years the financial services industry has been the biggest campaign contributor in all federal election cycles; ties to companies you're questioning is like putting on kid gloves before pointing your finger at them.
Third is to get the kind of presidential support that FDR gave Mr. Pecora. For that to happen, President Obama will have to subject his chief economic advisor Mr. Larry Summers and Tim Geithner, his secretary of the treasury, to intense scrutiny because of their past relations with Wall Street. (Geithner was a disciple of Robert Rubin, who with Summers was in the Clinton Cabinet that witnessed the repeal of the Glass-Steagall Act: the passage of which, in 1934, separated commercial and investment banking.)
David slew Goliath before. Back then he was known as Ferdinand Pecora. Stan
Thursday, April 23, 2009
absolutely ridiculous in jeans
'You look absolutely ridiculous in jeans' read the attention grabbing headline. I read it in the coffee shop on Sunday past, of course in denim jacket and jeans. I smiled broadly at the dour photograph of George Will, the author of this commentary column, reading on in amusement to see if I was mentioned by name.
Mr. Will is a former political philosophy teacher, former editor of The National Review, conservative syndicated columnist for The Washington Post, author of several books; and owner of a single pair of jeans that he wore once.
He was moved to write the piece by an article he read in The Wall Street Journal, where ' "we all strive to look equally shabby." ' Whereas denim was once ' "a symbol of youthful defiance" ', it is now the ' "infantile uniform of this [sic] nation." ' Mr. Will goes on to say 'denim is the carefully calculated costume of people eager to communicate indifference to appearances. But the appearances that people choose to present in public are cues from which we make inferences about their maturity and respect for those to whom they are presenting themselves.'
Collective contempt? What happened to not judging a book by its cover? And what about 'style' versus 'content'? I've known many a scoundrel, professionally traipsing about in fine suits, with zero depth. And on the other hand,I personally find Mr. Bill Gates' persona MUCH more commanding when clad in sweater and jeans than in an expensive suit. The man's actions have, and continue to speak louder than the words 'hey, look how presentable I am!'
I DO understand the argument about following orders, discipline, and uniformity of dress code. The rigidity of past generations adhering to those strictures has changed, however. The quiet desperation of dad's generation wearing wool suits to un-air conditioned offices in the summer is gone forever. Lighter fabrics, relaxed dress codes, and central air changed long held, tacit notions of what is and isn't presentable. Even on weekends, the father of the house was still to be seen in a white shirt and tie: to underscore authority? To prevent one from ever really relaxing?
What Mr. Will never addressed in the article was the collective appreciation for the comfort that denim provides. It is true, our generation was conditioned to wear it from early youth on, but it's not about rebellion or immaturity. I do care about my appearance in public, I do respect other people's need to feel comfortable when 'regarding' me. I can only speak for myself, but those who understand what I'm saying probably dress themselves with the same idea in mind that I do: appropriately.
I finished by coffee, gathered up the rest of the Sunday paper, turned my denim collar up, and headed out into the Sunday morning rain.
Mr. Will is a former political philosophy teacher, former editor of The National Review, conservative syndicated columnist for The Washington Post, author of several books; and owner of a single pair of jeans that he wore once.
He was moved to write the piece by an article he read in The Wall Street Journal, where ' "we all strive to look equally shabby." ' Whereas denim was once ' "a symbol of youthful defiance" ', it is now the ' "infantile uniform of this [sic] nation." ' Mr. Will goes on to say 'denim is the carefully calculated costume of people eager to communicate indifference to appearances. But the appearances that people choose to present in public are cues from which we make inferences about their maturity and respect for those to whom they are presenting themselves.'
Collective contempt? What happened to not judging a book by its cover? And what about 'style' versus 'content'? I've known many a scoundrel, professionally traipsing about in fine suits, with zero depth. And on the other hand,I personally find Mr. Bill Gates' persona MUCH more commanding when clad in sweater and jeans than in an expensive suit. The man's actions have, and continue to speak louder than the words 'hey, look how presentable I am!'
I DO understand the argument about following orders, discipline, and uniformity of dress code. The rigidity of past generations adhering to those strictures has changed, however. The quiet desperation of dad's generation wearing wool suits to un-air conditioned offices in the summer is gone forever. Lighter fabrics, relaxed dress codes, and central air changed long held, tacit notions of what is and isn't presentable. Even on weekends, the father of the house was still to be seen in a white shirt and tie: to underscore authority? To prevent one from ever really relaxing?
What Mr. Will never addressed in the article was the collective appreciation for the comfort that denim provides. It is true, our generation was conditioned to wear it from early youth on, but it's not about rebellion or immaturity. I do care about my appearance in public, I do respect other people's need to feel comfortable when 'regarding' me. I can only speak for myself, but those who understand what I'm saying probably dress themselves with the same idea in mind that I do: appropriately.
I finished by coffee, gathered up the rest of the Sunday paper, turned my denim collar up, and headed out into the Sunday morning rain.
Sunday, April 19, 2009
All 'Fragged' Out
George Will* lost the coin flip; the Sunday newspaper and its pre-ponderance has elected to kick-off.
Sunday morning was shrouded in mist-ery; I put on denim, shoes worn 250+ times, saved the umbrella for when rain is serious about being rain, and got coffee and the Sunday paper; coffee shop style. Dank Sunday mornings gently put the brakes on the roller coaster of time. Occasionally, gray is great.
Eye was on church later with kids; God cares that you go and listen with others rather than risk precip related wardrobe fallout and stay in. :) My Sunday morning hunkerdown coffee shop is Caribou Coffee. I've never actually seen a caribou, but I go there for coffee because, one day, like a winning lotto ticket, I hope to see one.
Okay the point. I have the luxury of a commute to work on mass transit that is just under an hour. I am expert in reading the news, taking a nap, and being prepared to discuss anything from pleasant to pressing. I leave too early during the week to 'subscribe'. I prepare on the train. I rarely buy a Sunday paper because it's not part of my routine.
I kinda remember why. I got rid of 2/3 of the paper without bothering to look at it. I don't need anymore shrubs or twilled khaki, or life insurance applications or glossy car ads. BUT, just because I don't bother with those parts of the paper doesn't mean others don't. Newspapers are information sources that appeal to a broad spectrum of readers/subscribers. This formula has worked great up until recent times. Print news, like broadcast news and music and movie purchasing has become 'fragmented'.
The vehicles that were in place to service the greatest amount of consumers are becoming disabled. Denver and Seattle have recently shutdown dailies; where are those readers going? Well, the consumer spenders will go to coupons on-line. That saves the hassle of sorting through the fliers in the paper. Also, you don't have to buy a paper to get free internet coupons. But advertising revenue is what keeps paper afloat. At least I buy, sort, and toss. Are papers failing because of harsh economic times or dwindling readership?
I know a number of young professionals who don't even read newspapers on line and yet are very up to the moment about politics, sports, social issues, etc. They join 'issue forums' that subscribe to news feeds on line; high speed internet service providers supply news as part of the service. They, in effect, customize their news sources which fragment the all purpose newspaper. The convenience of having everything at your fingertips (and cheaply) is giving way to customizability and growing wifi accessibility. How sad the day will be when people can no longer begin a conversation with the likes of "Did you see that article in the New York Times or Carl Hiaassen's last column in the Miami Sun". That day is coming.
I don't want a new routine.
*George Will's take on denim comes next. Stan
Sunday morning was shrouded in mist-ery; I put on denim, shoes worn 250+ times, saved the umbrella for when rain is serious about being rain, and got coffee and the Sunday paper; coffee shop style. Dank Sunday mornings gently put the brakes on the roller coaster of time. Occasionally, gray is great.
Eye was on church later with kids; God cares that you go and listen with others rather than risk precip related wardrobe fallout and stay in. :) My Sunday morning hunkerdown coffee shop is Caribou Coffee. I've never actually seen a caribou, but I go there for coffee because, one day, like a winning lotto ticket, I hope to see one.
Okay the point. I have the luxury of a commute to work on mass transit that is just under an hour. I am expert in reading the news, taking a nap, and being prepared to discuss anything from pleasant to pressing. I leave too early during the week to 'subscribe'. I prepare on the train. I rarely buy a Sunday paper because it's not part of my routine.
I kinda remember why. I got rid of 2/3 of the paper without bothering to look at it. I don't need anymore shrubs or twilled khaki, or life insurance applications or glossy car ads. BUT, just because I don't bother with those parts of the paper doesn't mean others don't. Newspapers are information sources that appeal to a broad spectrum of readers/subscribers. This formula has worked great up until recent times. Print news, like broadcast news and music and movie purchasing has become 'fragmented'.
The vehicles that were in place to service the greatest amount of consumers are becoming disabled. Denver and Seattle have recently shutdown dailies; where are those readers going? Well, the consumer spenders will go to coupons on-line. That saves the hassle of sorting through the fliers in the paper. Also, you don't have to buy a paper to get free internet coupons. But advertising revenue is what keeps paper afloat. At least I buy, sort, and toss. Are papers failing because of harsh economic times or dwindling readership?
I know a number of young professionals who don't even read newspapers on line and yet are very up to the moment about politics, sports, social issues, etc. They join 'issue forums' that subscribe to news feeds on line; high speed internet service providers supply news as part of the service. They, in effect, customize their news sources which fragment the all purpose newspaper. The convenience of having everything at your fingertips (and cheaply) is giving way to customizability and growing wifi accessibility. How sad the day will be when people can no longer begin a conversation with the likes of "Did you see that article in the New York Times or Carl Hiaassen's last column in the Miami Sun". That day is coming.
I don't want a new routine.
*George Will's take on denim comes next. Stan
Thursday, April 16, 2009
Three Wise Men
Any readers out there who will confess to acting on a hot tip, be it stocks, horses, or cars? I have on all three. I learned the same lesson from all three.
A close relative advised me to buy shares in a tech stock that was trading back then about where Ford Motor Co. is currently trading now. The argument went . .'even if the company goes under, book value of the stock is about double where you can load up on it now'. I bought a lot, and in 8 months, it turned to worthless paper. And that was 8 years ago.
Horse racing is fascinating, but I'm not a student of the game. Too many variables, so I 'outsource' the analysis to 'those who know'. And then I second guess and add my own horses to my trifecta and daily double bets (because I'm smarter) and of course, I lose.
Once I agreed to buy a car from a brother of a new sister-in-law without close inspection; a handshake deal. The car was a lemon and died maybe 10 times on the way home. When I called him and said I wanted my money back, he said, 'too late, I cashed the check already'.
Truth is, I wasn't willing to do the research in each of these instances, and relied on the word of others. I was looking for the easy way out, and so, in hindsight, I deserved to have come up short.
I mention this because I have just read an article that profiles 3 investors who were around and investing DURING THE DEPRESSION! ! ! And still at it on Wall Street. How about that for perspective? Mssrs. Irving Kahn, 103 yrs. old; Walter Schloss, 92 yrs. old; and Seth Glickenhaus, 95 yrs. old all have the unique vantage point of contrasting the crash of '29 with the meltdown of '08. Is '08 worse because of the global nature and the unimaginable amounts of money involved?
No. All 3 of these gentlemen see opportunity because they are looking matter of factly at the numbers of publicly traded companies without emotion. You know, debt to equity ratios; P-E ratios; how much cash there is on a company's book to be able to withstand dire market conditions. This is pure 'roll-up-your-sleeves' and make your OWN decisions about what has VALUE versus what has SPIN (spin being broker recommendations, expected growth of sector P-E ratios, etc.) AND, owing to the availability of timely information, where co-ordinated, pre-emptory steps can be taken to control damage, they believe that today's problems are to be dealt with more efficiently. (There are many more industries to invest in than there were during the Depression.)
This is written to acknowledge that wisdom and time tested principles don't go out of style. (Counter to what our Western advertisers would have you believe.) Take responsibility for your own investments; read up on yields, portfolio management, risk management (do your own research); look for undervalued assets and riskless investments; and incorporate this discpline into your life like people do with counting carbs and logging gym hours.
Kahn, Schloss, and Glickenhaus wouldn't still be around for us to learn from their examples if they had listened to hot tips.
Become financially self-reliant.
A close relative advised me to buy shares in a tech stock that was trading back then about where Ford Motor Co. is currently trading now. The argument went . .'even if the company goes under, book value of the stock is about double where you can load up on it now'. I bought a lot, and in 8 months, it turned to worthless paper. And that was 8 years ago.
Horse racing is fascinating, but I'm not a student of the game. Too many variables, so I 'outsource' the analysis to 'those who know'. And then I second guess and add my own horses to my trifecta and daily double bets (because I'm smarter) and of course, I lose.
Once I agreed to buy a car from a brother of a new sister-in-law without close inspection; a handshake deal. The car was a lemon and died maybe 10 times on the way home. When I called him and said I wanted my money back, he said, 'too late, I cashed the check already'.
Truth is, I wasn't willing to do the research in each of these instances, and relied on the word of others. I was looking for the easy way out, and so, in hindsight, I deserved to have come up short.
I mention this because I have just read an article that profiles 3 investors who were around and investing DURING THE DEPRESSION! ! ! And still at it on Wall Street. How about that for perspective? Mssrs. Irving Kahn, 103 yrs. old; Walter Schloss, 92 yrs. old; and Seth Glickenhaus, 95 yrs. old all have the unique vantage point of contrasting the crash of '29 with the meltdown of '08. Is '08 worse because of the global nature and the unimaginable amounts of money involved?
No. All 3 of these gentlemen see opportunity because they are looking matter of factly at the numbers of publicly traded companies without emotion. You know, debt to equity ratios; P-E ratios; how much cash there is on a company's book to be able to withstand dire market conditions. This is pure 'roll-up-your-sleeves' and make your OWN decisions about what has VALUE versus what has SPIN (spin being broker recommendations, expected growth of sector P-E ratios, etc.) AND, owing to the availability of timely information, where co-ordinated, pre-emptory steps can be taken to control damage, they believe that today's problems are to be dealt with more efficiently. (There are many more industries to invest in than there were during the Depression.)
This is written to acknowledge that wisdom and time tested principles don't go out of style. (Counter to what our Western advertisers would have you believe.) Take responsibility for your own investments; read up on yields, portfolio management, risk management (do your own research); look for undervalued assets and riskless investments; and incorporate this discpline into your life like people do with counting carbs and logging gym hours.
Kahn, Schloss, and Glickenhaus wouldn't still be around for us to learn from their examples if they had listened to hot tips.
Become financially self-reliant.
Tuesday, April 14, 2009
The 'nano-thermite' clip
I have to thank my buddy Angie for forwarding this fascinating clip my way.
A team of research scientists has just published the results of an 18 month analysis of the 'dirt' from the wreckage site of the World Trade Center. They claim to have found a 'loaded gun' with the presence of large amounts of nano-thermite compound. It has a low ignition temperature, can melt metal, and is a highly explosive substance. Around since the late 1800's, consisting of aluminum and rust powder, there is no other conceivable reason for the high concentration of the unreacted material to be on site, other than for demolition purposes, according to the report.
I stopped 'processing' the tragedy of 9/11 some time ago. Moving on to global economic collapse, AIG, all the 'new' president's men, No. Korea; I feel that time will reveal things when appropriate discoveries arise. I think back to the pain-staking effort that was put into recovering every remnant of Pan Am Flight 103 that exploded over Lockerbie, Scotland in 1988. Putting the plane back together took over 2 years in a hanger, yielding a fragment of a transistor radio that housed the bomb, a timing device fragment found among clothing remnants that matched a batch of 20 sold to the Libyan government in 1985, and a clothing label to a shop in Malta that was the piece of evidence that tied it all together.
And now we have a new angle to solve a crime that lives in infamy in the psyche of Americans. Dr. Niels Harrit, the Danish scientist who is interviewed in the clip, claims that the amount of nano-thermite needed to do the damage it did to bring down the THREE buildings was somewhere between 10 and 100 tonnes! Quantities that he suggests would have had to be brought in by pallet, and goes further to suggest that the company in charge of security for the buildings needs to be scrutinized.
This could be a flight of fancy but it certainly sounds plausible. It inspired hope in me, because the passage of time has dimmed the immediacy for knowing the final truths about 9/11, and now we have been given reason for re-examination. Thanks a bunch, Angie, for the heads-up.
Stan
A team of research scientists has just published the results of an 18 month analysis of the 'dirt' from the wreckage site of the World Trade Center. They claim to have found a 'loaded gun' with the presence of large amounts of nano-thermite compound. It has a low ignition temperature, can melt metal, and is a highly explosive substance. Around since the late 1800's, consisting of aluminum and rust powder, there is no other conceivable reason for the high concentration of the unreacted material to be on site, other than for demolition purposes, according to the report.
I stopped 'processing' the tragedy of 9/11 some time ago. Moving on to global economic collapse, AIG, all the 'new' president's men, No. Korea; I feel that time will reveal things when appropriate discoveries arise. I think back to the pain-staking effort that was put into recovering every remnant of Pan Am Flight 103 that exploded over Lockerbie, Scotland in 1988. Putting the plane back together took over 2 years in a hanger, yielding a fragment of a transistor radio that housed the bomb, a timing device fragment found among clothing remnants that matched a batch of 20 sold to the Libyan government in 1985, and a clothing label to a shop in Malta that was the piece of evidence that tied it all together.
And now we have a new angle to solve a crime that lives in infamy in the psyche of Americans. Dr. Niels Harrit, the Danish scientist who is interviewed in the clip, claims that the amount of nano-thermite needed to do the damage it did to bring down the THREE buildings was somewhere between 10 and 100 tonnes! Quantities that he suggests would have had to be brought in by pallet, and goes further to suggest that the company in charge of security for the buildings needs to be scrutinized.
This could be a flight of fancy but it certainly sounds plausible. It inspired hope in me, because the passage of time has dimmed the immediacy for knowing the final truths about 9/11, and now we have been given reason for re-examination. Thanks a bunch, Angie, for the heads-up.
Stan
Friday, April 10, 2009
Hello 'Ball'
I was all set to examine a social ill, and I got side tracked by The Masters golf tournament. Mentally I went somewhere to a place that celebrates springtime, where hope abounds like 'harvested hops'. As sure as nature predictably awakens, the game of golf is there to present a linkable memory to another chapter in the passing of time.
This tournament is about returning to a place that doesn't change locale. It is the only major event on the PGA Tour mecca-like in nature. It 'invites' the best golfers from around the world to compete for the 'Green Jacket', the cloak of excellence for the newly-to-be-crowned. And as the tournament unfolds, a myriad of potential stories unfold, prompting fans to project what their ending might be if they were to write the story.
Tiger Woods is toward the back of the pack making the cut; he's got 4 green jackets, never count him out. Zach Johnson, the 'Midwestern' representative of heartland golfers, won't be around to tee it up Saturday. Padraig Harrington, the Irishman who most benefited from Tiger's absence, is striving to make it 3 'majors' in a row if he can pull out a victory here.
Greg Norman, the 54 y.o. Aussie, who made a huge run at the Open Championship last year (British Open, to wit) is a storied wannabe in this tournament and the darling of fans who relate to being so close and folding under pressure. The So. Africans endured a 30 year drought between Gary Player winning in 1978 and Trevor Immelman winning last year. Both played the qualifying rounds, Trevor survived the cut.
Bernhard Langer, the German two time past champion who last won in 1993, can sleep in tomorrow morning. Angel Cabrera is near the top of the leader board (the Argentine who affects a working class appeal that transcends nationality). And I have to remember to mention Mike Weir, a Canadian past champion, who is workmanlike, quiet, unassuming, and a 'little lefty' who is proof that you don't have to be a monster to win at golf.
When the 2009 Masters winner is known on Sunday, another story in sport will have been written. It may be a local hero or it could be a faraway hero to fans in a distant country. All have come abiding by the rules of golf that participants are strictly held to in the quest for a footnote in history. The golfers embrace it, the fans respect the decorum of the game and the heraldry of the tournament, and the beautiful dynamic of the height-of-spring gathering of people: athletes and observers, fans who can't be in Augusta, Georgia, and those who are pulling for the likes of Vijay Singh to repeat and Henrik Stenson to put Sweden on the Masters map, watch.
It is the coming together of people from around the world who understand the many levels of beauty of the game of golf. Nationalistic pride is embraced and accepted without political undertones. You are cheered on because of your skill, your gamesmanship, and ability to handle pressure. If all the foreign heads of state who don't envision peaceful co-existence with the rest of the world could learn about life from observing the aesthetics of The Masters, hope WOULD spring eternal.
This tournament is about returning to a place that doesn't change locale. It is the only major event on the PGA Tour mecca-like in nature. It 'invites' the best golfers from around the world to compete for the 'Green Jacket', the cloak of excellence for the newly-to-be-crowned. And as the tournament unfolds, a myriad of potential stories unfold, prompting fans to project what their ending might be if they were to write the story.
Tiger Woods is toward the back of the pack making the cut; he's got 4 green jackets, never count him out. Zach Johnson, the 'Midwestern' representative of heartland golfers, won't be around to tee it up Saturday. Padraig Harrington, the Irishman who most benefited from Tiger's absence, is striving to make it 3 'majors' in a row if he can pull out a victory here.
Greg Norman, the 54 y.o. Aussie, who made a huge run at the Open Championship last year (British Open, to wit) is a storied wannabe in this tournament and the darling of fans who relate to being so close and folding under pressure. The So. Africans endured a 30 year drought between Gary Player winning in 1978 and Trevor Immelman winning last year. Both played the qualifying rounds, Trevor survived the cut.
Bernhard Langer, the German two time past champion who last won in 1993, can sleep in tomorrow morning. Angel Cabrera is near the top of the leader board (the Argentine who affects a working class appeal that transcends nationality). And I have to remember to mention Mike Weir, a Canadian past champion, who is workmanlike, quiet, unassuming, and a 'little lefty' who is proof that you don't have to be a monster to win at golf.
When the 2009 Masters winner is known on Sunday, another story in sport will have been written. It may be a local hero or it could be a faraway hero to fans in a distant country. All have come abiding by the rules of golf that participants are strictly held to in the quest for a footnote in history. The golfers embrace it, the fans respect the decorum of the game and the heraldry of the tournament, and the beautiful dynamic of the height-of-spring gathering of people: athletes and observers, fans who can't be in Augusta, Georgia, and those who are pulling for the likes of Vijay Singh to repeat and Henrik Stenson to put Sweden on the Masters map, watch.
It is the coming together of people from around the world who understand the many levels of beauty of the game of golf. Nationalistic pride is embraced and accepted without political undertones. You are cheered on because of your skill, your gamesmanship, and ability to handle pressure. If all the foreign heads of state who don't envision peaceful co-existence with the rest of the world could learn about life from observing the aesthetics of The Masters, hope WOULD spring eternal.
Wednesday, April 8, 2009
From FDR to SDR
I personally have just gotten comfortable with CDO's (collateralized debt offerings) and CDS's (credit default swaps) to throw my two cents into lofty conversations about the global economic meltdown. But that was SOOOO last quarter . . . brace yourselves for the innocuous term for the coming of the ONE WORLD CURRENCY: 'special drawing rights' or 'SDR's'.
It's hard to get angry at an acronym. They seem, by nature, defusing. They 'program' themselves into our recall and escape future analyses. Case in point: the ubiquitous ATM. No one says in conversation, 'Before we go to Howard's 24hr. Sports Bar, I gotta stop at the 'automated teller machine'. Nope, it's 'Swing by the ATM so I can grab some fun money'.
SDR's are the proposed 'answer' being offered, by the collective G-20 body politic that just finished meeting in London, to the funding crunch effecting exporters. Who's issuing the SDR's?
The IMF (International Monetary Fund) which happens to have no oversight. The IMF is already bailing out Iceland, Pakistan, Hungary, Belarus, Ukraine, Serbia, and others, so it's market mechnics are in place. Why not extend its influence to industry? (Sounds a little like US and GM, US and Goldman Sachs, US and AIG.)
The special drawing funds global rescue pool was tripled at the G-20 summit to $750Billion. Serious money. With that many countries being represented, with disparate personal agendas being advanced, it makes sense that some 'sea change' ideas had to be floated to form a foundation for future meetings. Russia was kind enough to promote the idea to develop the SDR into a full fledged currency to take the place of the US dollar as the international business currency. Too bold, too soon. China generously offered yuan currency swaps to developing countries to the tune of $95 Billion, a steadier step to purge their bulging coffers of deposits swollen with bad US dollars. Sounds like a giant global laundromat is being constructed to wash out currency exposure and future risk to foreign denominated debt instruments that hold 'hidden surprises'.
The kicker to the G-20 gala event for global insiders was President Obama's attendance at the UN's 60th birthday bash. We are all being force fed globally shared solutions to problems that have been manufactured to advance the agenda of 'visionaries'. Deregulation ushered in globalization of multi-national corporations, exotic investment vehicles were allowed to be created; this lead to unchecked, irresponsible boom, a truly worldwide bust, and an emerging solution that sounds eerily like the authors of the "LEFT BEHIND' SERIES of best sellers penned them.
And just think, 60+ years ago old FDR and Churchill figured out how to arrange the 'then' New World Order over cigars and brandy. Oh for the old New World Order . . .
It's hard to get angry at an acronym. They seem, by nature, defusing. They 'program' themselves into our recall and escape future analyses. Case in point: the ubiquitous ATM. No one says in conversation, 'Before we go to Howard's 24hr. Sports Bar, I gotta stop at the 'automated teller machine'. Nope, it's 'Swing by the ATM so I can grab some fun money'.
SDR's are the proposed 'answer' being offered, by the collective G-20 body politic that just finished meeting in London, to the funding crunch effecting exporters. Who's issuing the SDR's?
The IMF (International Monetary Fund) which happens to have no oversight. The IMF is already bailing out Iceland, Pakistan, Hungary, Belarus, Ukraine, Serbia, and others, so it's market mechnics are in place. Why not extend its influence to industry? (Sounds a little like US and GM, US and Goldman Sachs, US and AIG.)
The special drawing funds global rescue pool was tripled at the G-20 summit to $750Billion. Serious money. With that many countries being represented, with disparate personal agendas being advanced, it makes sense that some 'sea change' ideas had to be floated to form a foundation for future meetings. Russia was kind enough to promote the idea to develop the SDR into a full fledged currency to take the place of the US dollar as the international business currency. Too bold, too soon. China generously offered yuan currency swaps to developing countries to the tune of $95 Billion, a steadier step to purge their bulging coffers of deposits swollen with bad US dollars. Sounds like a giant global laundromat is being constructed to wash out currency exposure and future risk to foreign denominated debt instruments that hold 'hidden surprises'.
The kicker to the G-20 gala event for global insiders was President Obama's attendance at the UN's 60th birthday bash. We are all being force fed globally shared solutions to problems that have been manufactured to advance the agenda of 'visionaries'. Deregulation ushered in globalization of multi-national corporations, exotic investment vehicles were allowed to be created; this lead to unchecked, irresponsible boom, a truly worldwide bust, and an emerging solution that sounds eerily like the authors of the "LEFT BEHIND' SERIES of best sellers penned them.
And just think, 60+ years ago old FDR and Churchill figured out how to arrange the 'then' New World Order over cigars and brandy. Oh for the old New World Order . . .
Legislating Faith?
So much on my mind today and plenty of Federal Fodder from which to choose... I know this isn't necessarily business related (directly anyway) but it's a great illustration of just how far Obama and his Ultra-Liberal Cronies will go to advance a Liberal Secular agenda. If Obama doesn't believe we are a Christian Nation, founded by God-fearing men on a Judeo-Christian ethics, does he believe in Free Speech? The right to bear arms? The right to practice without interference from the government? Apparently his Appellate Court Nominee,David Hamilton, believes it is the government's responsibility to interfere with the with the practice of some religions. As a sitting judge in Indiana, he ruled that "prayers in Jesus Name at the Indiana House of Representatives were unconstitutional, but prayers to Allah were not."
During an address in Ankhara, Turkey President Obama said the following...
"We do not consider the United States to be a Christian nation... the United States is a nation of citizens bound by ideals and a set of values." Barack Obama
Maybe we should have the President read the Declaration of Independence
* When in the Course of human events it becomes necessary for one people to dissolve the political bands which have connected them with another and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature's God entitle them..."
* "We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights..."
Although Hancock penned the Declaration, it was a collaboration of a number of brilliant, wise, Christian men which was the genesis of the greatest country on earth!
If you still question whether of not YOUR government has an ax to grind with Christians, take a closer look at the following quotes by Obama's latest Appointee to the Faith Based Initiative...
(CNSNews.com) – President Barack Obama has named to the federal government’s faith-based initiative a gay-rights activist who, last month, described Pope Benedict XVI and certain Catholic bishops as “discredited leaders” because of their opposition to same-sex marriage.
Harry Knox, who is a newly appointed member of Obama’s Advisory Council on Faith-based and Neighborhood Partnerships, is the director of the religion and faith program at the Human Rights Campaign, a homosexual activist group.
In addition to his remarks about the Pope, Knox also criticized the Catholic Knights of Columbus as being “foot soldiers of a discredited army of oppression” because of the Knights’ support of Proposition 8. The latter was a ballot initiative that amended California’s state constitution to define marriage as being between a man and a woman, and passed in November 2008.
Knox told CNSNews.com that he “absolutely” stands by his criticism of the pope.
"The Pope needs to start telling the truth about condom use," Knox said on Monday, Apr. 6. "We are eager to help him do that. Until he is willing to do that and able, he's doing a great deal more harm than good -- not just in Africa but around the world. It is endangering people's lives.”
When you start questioning, as I do, why Christians are such an easy target for governments, entertainers, and wacko Atheists, refer to the words of Jesus Christ himself...
Matthew 24:9
"Then you will be handed over to be persecuted and put to death, and you will be hated by all nations because of me."
Matthew 5:10
"Blessed are those who are persecuted because of righteousness, for theirs is the kingdom of heaven."
I know this post is more of a rant. However, I feel like I need to scream from the top of the highest building, "Stop the Madness!" I guess for now anyway, I'll take solace in the words of Jesus and pray that this Administration does not evicerate a nation built on faith not the Secular Servitude that our leaders in Washington preach.
During an address in Ankhara, Turkey President Obama said the following...
"We do not consider the United States to be a Christian nation... the United States is a nation of citizens bound by ideals and a set of values." Barack Obama
Maybe we should have the President read the Declaration of Independence
* When in the Course of human events it becomes necessary for one people to dissolve the political bands which have connected them with another and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature's God entitle them..."
* "We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights..."
Although Hancock penned the Declaration, it was a collaboration of a number of brilliant, wise, Christian men which was the genesis of the greatest country on earth!
If you still question whether of not YOUR government has an ax to grind with Christians, take a closer look at the following quotes by Obama's latest Appointee to the Faith Based Initiative...
(CNSNews.com) – President Barack Obama has named to the federal government’s faith-based initiative a gay-rights activist who, last month, described Pope Benedict XVI and certain Catholic bishops as “discredited leaders” because of their opposition to same-sex marriage.
Harry Knox, who is a newly appointed member of Obama’s Advisory Council on Faith-based and Neighborhood Partnerships, is the director of the religion and faith program at the Human Rights Campaign, a homosexual activist group.
In addition to his remarks about the Pope, Knox also criticized the Catholic Knights of Columbus as being “foot soldiers of a discredited army of oppression” because of the Knights’ support of Proposition 8. The latter was a ballot initiative that amended California’s state constitution to define marriage as being between a man and a woman, and passed in November 2008.
Knox told CNSNews.com that he “absolutely” stands by his criticism of the pope.
"The Pope needs to start telling the truth about condom use," Knox said on Monday, Apr. 6. "We are eager to help him do that. Until he is willing to do that and able, he's doing a great deal more harm than good -- not just in Africa but around the world. It is endangering people's lives.”
When you start questioning, as I do, why Christians are such an easy target for governments, entertainers, and wacko Atheists, refer to the words of Jesus Christ himself...
Matthew 24:9
"Then you will be handed over to be persecuted and put to death, and you will be hated by all nations because of me."
Matthew 5:10
"Blessed are those who are persecuted because of righteousness, for theirs is the kingdom of heaven."
I know this post is more of a rant. However, I feel like I need to scream from the top of the highest building, "Stop the Madness!" I guess for now anyway, I'll take solace in the words of Jesus and pray that this Administration does not evicerate a nation built on faith not the Secular Servitude that our leaders in Washington preach.
Sunday, April 5, 2009
Things always look better in the Spring
A Little 'Head 'N Shoulders' Anyone?
With all the negative news floating about these days, a bit of springlike fresh air might be just what we need before we have to put the surgical masks back on. I have seen a couple of things in the market lining up and it bears mentioning. (Jerry hasn't gotten back to me about the Detroit 'flight of fancy' I earlier wrote about, and besides, with MSU going to the BIG dance on Monday IN Detroit, it is only proper for me not to detract from the celebration. Go Spartans!)
We seem to be following a global path to zero interest rates. Low interest rates provide impetus for corporates to make capital improvements or expansion or acquisition. That is, once the lack of lending by banks has been corrected. Gold is approaching the low end of its channel and slipping through that point could produce a 100 point correction down in the low 800's. Hedge fund investing for some reason has a couple black eyes . . . . BUT there is an interesting chart formation going on in the equity markets that could signal an up move despite the rise unemployment tide and credit debacle.
An inverse head and shoulders formation on the daily S & P 500 Futures Index is suggesting we can go higher in the stock market, In plain English, there is a study tool for analyzing markets called bar charting, that takes the high , low, and settlement prices and graphs them over a time horizon. As markets cumulatively express the balance of greed and fear in human nature, chart formations tend to form with some predictability. When a 'head and shoulders' occur in bull markets. the market often heads down. In markets where this pattern occurs upside down (or inversely), it signals an up move. In a related market occurrence, the currency options markets have been active.
There is large open interest in puts in Japanese Yen, Swiss Franc, and the Euro marked to the September expiration. Long 'puts' means the value of where the three currencies mentioned will be significantly lower by September than they are today. When an investor sells one currency to buy another, the newly purchased currency is put to work in instruments denominated in that currency. (You buy US Treasury Bills with US Dollars. You buy real estate in the U.S. in US Dollars,etc.) Futures contracts in the U.S. are marked to market in US Dollars. The result will be to take advantage of weakness in those currencies to realize a gain in US Dollars. There is a shortage of 'external' dollars in the market right now. Banks aren't lending, people aren't spending, and the shortage will increase demand if reasons emerge for a dollar demand. We may be seeing the reason (the head and shoulders in the stock market index and the flatline interest rates). Time will tell. In the meantime, enjoy the breath of fresh air.
Contributed by TC- Futures Trader, Part-Time Economist, and Futurist
Thursday, April 2, 2009
Fixing Detroit - The NEW Green Initiative
So, I'm sitting at my desk, minding my own business, studying the op.ed. pages, when Jerry lumbers over and drops 'something he saved for me' from 'his' newspaper yesterday on top of what I was reading. This is how he crosses swords and I'm ready to rumble.
He taps the headline for emphasis, that states, 'With all due respect, Mr. President, you got it completely wrong!' What follows is a list of scientists who fervidly dispute the value of any initiatives President Obama has supported in addressing the global warming hot topic. Jerry 'likes' science, watches public television, reads National Geographic, and avidly reads science fiction, so he is prone to immersing himself in make believe worlds. "See, these are learned men and women of science who are saying that the panic merchants peddling the polar ice meltdown/second great flood scenario, on top of the ozone layer destruction DON'T have scientific facts to back it up and are only doing it to obtain research grant money from the Federal government!" Hmmmmmmmmmmmm.
That's remotely possible, but not really conspiratorial in nature. I decide to give him a Pierce Brosnan squint and see if he labors on. He prattles on about hidden agendas, past weather cycles, wasting money, and BAM!, it hits me how to knock him off his puffin's perch, arrest his attention and de-Vulcanize him. "Jer, I think the
solution would be to bulldoze Detroit." Predictably, his eyes let me
know that his CPU would need a bit of time to prepare a response, so I thought I'd bite his ankles.
"Think of the beautiful irony in the message this sends out to the rest of the world. Mo-town rose to prominence on the back of the auto industry. Its heyday was really a remarkable time but complacency and mismanagement allowed pretenders to the throne to swarm the empire. Multi-national corporations took advantage of the weak U,S. Dollar and savvy foreign manufacturers came here and set up shop. Local economies welcomed the financial boon, better quality cars were turned out, and Detroit's self-denial cost it market share at the worst possible time.
"Okay. Make Detroit the 'epicenter' for green initiative education; you have plenty of cheap, available land that would lend itself to the intelligent design of the city's rebirth. We are trying to ween our country from its dependence on foreign oil; what a symbolic move it would be on our part to build upon the ashes of the gas guzzling economy of a foregone city to put people back to work and prove our resolve to the rest of the world as it waits for us to, once again, show the spirit that made us a great nation. Stop the Detroit auto bailout, right now, and put the money to better use."
We became distracted as phones rang and business needs arose. We weren't able to return to our discussion for the rest of the day, but I'm sure Jerry will bring his A-game to work tomorrow.
He's probably looking for quotable zingers, right now, somewhere in his revered Azimov collection. . . . . .
Contributed by TC- Futures Trader, Part-Time Economist, and Futurist
WOO! WOO! Something Intelligent out of DC
WOO! WOO!
"WASHINGTON--U.S. accounting rulemakers on Thursday agreed to make adjustments to its proposal to change mark-to-market accounting rules concerning when transactions would be considered distressed."
We're half way there! Now we need the FDIC to loosen the reins a bit and we'll be walking in Sunshine soon!
"WASHINGTON--U.S. accounting rulemakers on Thursday agreed to make adjustments to its proposal to change mark-to-market accounting rules concerning when transactions would be considered distressed."
We're half way there! Now we need the FDIC to loosen the reins a bit and we'll be walking in Sunshine soon!
Tuesday, March 31, 2009
Dollars and Nonsense
"The Credit Crunch..." banks refusing to lend money. The Banks will give all kinds of reasons for this, none of which make sense or matters to the common person. The Government, they think if they throw BILLIONS of dollars at the banks, nationalize Citibank, and increase regulation, the banks will open up the vaults and start lending money again. Nothing could be further from the truth.
The Fed (Federal Reserve) currently lends money to banks at 0.25% interest. Theoretically, the banks should turn around and lend that money to companies and consumers at a higher rate and with their profit being the arbitrage. Sounds good, but the banks aren't doing that. They're investing in bonds and making money on the arbitrage between the bond rate and their cost of funds! Simply, they are afraid to lend money because if they make a mistake or their core capital goes too low the FDIC will beat them with that giant federal stick! They are terrified of the regulation!
Ok, here it is... listen-up Geithner, that is if the sucking sound of TRILLIONS going down the drain at the Treasury isn't deafening. Here's how to get the banks making GOOD LOANS again without spending another dime of taxpayer money:
1. Repeal the mark to market rules. In an environment where the value of the banks assets may be decreasing daily this forces banks to act contrary to smart business practices. Banks forclose on perfoming loans because the value of the underlying asset has decreased. Banks are forced to take reserves (cash) and put it aside for under-collateralized loans. All of this affects the capital of the banks and causes the FDIC to swing their big stick again and tell the banks that they can't lend because their Capital has dropped below acceptable levels. It's a vicious circle that can be avoided. This recession is a temporary situation. The values uf the assets will recover if given adequate time. Forcing banks to take action at the bottom of the maket is exacerbating the recession and temporary problems at financial institutions.
2. The FDIC needs to temporarily lower Core Capital requirements for banks. Although this sounds dangerous on the surface, it really is very misleading. When banks put loans on non-accrual status it affects their capital negatively. The bank will NOT lose the full amount of the loan and if they are not forced by the FDIC to take immediate action, they may recover a majority of their loan amount, subsequently increasing capital. Give the banks flexibilty to do what they, NOT THE GOVERNMENT, do best, make loans.
Regulation, TARP Funds, Nationalization... it's all dollars and nonsense
The Fed (Federal Reserve) currently lends money to banks at 0.25% interest. Theoretically, the banks should turn around and lend that money to companies and consumers at a higher rate and with their profit being the arbitrage. Sounds good, but the banks aren't doing that. They're investing in bonds and making money on the arbitrage between the bond rate and their cost of funds! Simply, they are afraid to lend money because if they make a mistake or their core capital goes too low the FDIC will beat them with that giant federal stick! They are terrified of the regulation!
Ok, here it is... listen-up Geithner, that is if the sucking sound of TRILLIONS going down the drain at the Treasury isn't deafening. Here's how to get the banks making GOOD LOANS again without spending another dime of taxpayer money:
1. Repeal the mark to market rules. In an environment where the value of the banks assets may be decreasing daily this forces banks to act contrary to smart business practices. Banks forclose on perfoming loans because the value of the underlying asset has decreased. Banks are forced to take reserves (cash) and put it aside for under-collateralized loans. All of this affects the capital of the banks and causes the FDIC to swing their big stick again and tell the banks that they can't lend because their Capital has dropped below acceptable levels. It's a vicious circle that can be avoided. This recession is a temporary situation. The values uf the assets will recover if given adequate time. Forcing banks to take action at the bottom of the maket is exacerbating the recession and temporary problems at financial institutions.
2. The FDIC needs to temporarily lower Core Capital requirements for banks. Although this sounds dangerous on the surface, it really is very misleading. When banks put loans on non-accrual status it affects their capital negatively. The bank will NOT lose the full amount of the loan and if they are not forced by the FDIC to take immediate action, they may recover a majority of their loan amount, subsequently increasing capital. Give the banks flexibilty to do what they, NOT THE GOVERNMENT, do best, make loans.
Regulation, TARP Funds, Nationalization... it's all dollars and nonsense
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