A Jayhawk's Nest

Cars

2011-07-03T11:52:00.001-05:00

The rest of the family cars...

WSJ: "Why Chinese Mothers Are Superior" and My Thoughts

2011-01-11T15:38:00.004-05:00

Just read an interesting article in the WSJ, titled "Why Chinese Mothers Are Superior." Find it here.

It's an interesting article, and worth a read. Just wanted to share some (initial) thoughts.

One point that needs to be emphasized is the role and psyche of immigrants. If you think about the average immigrant to America, in general I would contend that he/she is an above average risk taker, ambitious, adventurous and eager to make a better life by stepping out of their comfort zone. (Before anyone goes crazy, I'm talking specifically of legal immigrants, but this may apply to all immigrants.)

In fact, most middle-aged immigrants who have the opportunity to move to the US (either through work or the Green Card lottery, etc) often leave behind great and comfortable livelihoods, careers, friends and families in order to give their children a better opportunity. Most immigrants move from developing nations where opportunities aren't easily available to even the best, brightest, and hardest workers. So, moving to the US is naturally a better choice. There is also a preconceived notion that the US is categorically a better place to live, no questions asked (though this attitude is changing somewhat).

So, immigrant parents often sacrifice a lot and have this mentality that they moved here (US) to improve the lives of their children. Thus, they do everything they can to push their children to their limits and beyond, especially academically, the topic of the WSJ's article. Anecdotally, I also think a lot of such immigrants are very highly skilled in their home countries and many pursue graduate-level education here to order to re enter the American workforce. So, academics are obviously at the top of their priorities. It's the safe route and the algorithm reads: go to the best college you can, the best grad school, and you'll make the best living you can.

As for sports and extra-curricular activities, e.g. theater, it's again the mentality of probabilities and lack of knowledge of how the industries here work. In developing countries, sports don't usually pay much (though that's changing). Theater/acting does not make much of a living. And while they can all make a great living if pros (NFL, Hollywood, etc), the odds of success are very low and the risks are very high. Along similar lines, I would also bet that children of these "Chinese mothers" often study science/math/engineering in college and a very small proportion major in the liberal arts i.e. History, English, etc, because the odds of employment are higher ex-post. Whether or not these effects carry on to the future generations, specifically, the second generation (F2 and beyond, for you geneticists), would be interesting to know.

A new tax code

2010-12-21T12:02:00.002-05:00

I have an idea to increase efficiencies for the Federal government. Instead of taxing individuals with a federal income tax, each state should be responsible for a share of the federal budget, and therefore contribute to it. In essence, the states would tax their citizens, and then pay into the Feds for their budget. The burden of each state would be determined just like the electoral college, i.e. you have more power in who becomes president, you pay more. Seems fair, doesn't it?

Having the states pay into a grander system can only lead to efficiencies. First, states are more vigilant about their budgets (except California, of course, the exception to every rule). Many have requirements to keep the budgets balanced. Having the states pressure the federal government to keep some restraint on spending would probably alleviate the drunken sailor spending. Additionally, since it's Congress -- made up of state representatives -- that passes spending measures, it will maybe be more in tune with economic realities. The state governors may also be able to knock some sense into the reps to keep spending at a minimum. Moreover, you get rid of the giant waste known as the IRS and its absurd tax code that is impossible to figure out unless you have studied it for years (i.e. you're an accountant).

Of course, the opponents of this idea will rush out saying it's unconstitutional blah blah blah. Change the Constitution in order to "create a *more* perfect Union."

Thoughts?

Piano and Cello, Song for Sienna by Brian Crain

2010-12-15T13:16:00.001-05:00

Recently found this song. I think it's a strikingly pretty tune.

Does Facebook Formalize your Life?

2010-12-12T21:27:00.004-05:00

Recently, I have found that Facebook authenticates or formalizes something about you (or "makes it official"). Whether it's changing a relationship status, or adding education or work, putting something in there makes an automatic announcement to the world. I recently updated my profile and found it to be a rather serious matter to go in there and change things up. Quite nerve wrecking actually. It's like not only changing your biography, but doing so in a public manner and in real-time. Quite incredible that filling in a virtual, intangible blank that exists in some computer in the ether has that effect. Do you find a similar "Facebook-makes-it-official" effect?

Uh, Who is the President?

2010-12-10T18:06:00.002-05:00

So, apparently Mr. Obama (the current president, I think) invited Mr. Clinton (President, 1992-2000, I think) to The White House. While Mr. Clinton spoke, Mr. Obama excused himself and left the press room, whereupon Mr. Clinton spoke in front of The White House podium, even taking questions from reporters. Um, has Mr. Obama's administration lost its mind? Did they not watch The West Wing? So, who is in charge? Clinton? Obama? Both? What? Who? Yep, confuzzled.

Are you?!

Gifts and Responsibilities

2010-12-09T15:49:00.006-05:00

"Wealth is an advantage, but it also is frankly a responsibility." --Nicolas Berggruen

WSJ reports that Zuckerberg, Facebook's co-founder, has pledged to give away the majority of his wealth to "The Giving Pledge," which is "an effort organized by software mogul Bill Gates and investor Warren Buffett to persuade the world's rich to boost their giving (WSJ)."

The list of the current 16 billionaires is interesting. More interesting, perhaps, are their accompanying letters and motivations, which basically boil down to the Berggruen's quotation above: being wealthy is nice, but it comes with responsibility. Yours truly certainly believes so (though he will not be contacted by Buffett and Co. for obvious reasons) and commends these 16 individuals. In particular, I single out Larry Ellison of Oracle, whom I have always viewed as a snob, both because of his aggressive business practices and his sailing hobby. Good for you, Mr. Ellison.

Surprisingly, several household billionaires names haven't come around yet: Steve Jobs (Apple), The Waltons (Wal-Mart), Sergey Brin / Larry Page (Google), Steve Balmer (quite surprising given Gates' position in the deal), Michael Dell (Dell, though maybe he's trying to figure out how to use his money to save his company from impending doom), Paul Allen (Jobs' old friend). Let's get this clear though: just because one is not on the list, does not mean that they don't do their part. Though it would be a nice cohesive gesture.

Bottom line: Bravo Billionaires. But, keep the cold calls going.

What do you think: Is it mostly your billion or should society be allowed to share in its fruits?

Race to Nowhere

2010-12-08T12:49:00.003-05:00

A great article on an increasing popular documentary, Race to Nowhere, on the circus that has become high school and the enormous pressures faced by teens to always be on, always be doing something, always be "going, going, going"... not sure where. I think this is probably more true of the very sad but get-ahead-at-any-cost East coast, and parts of the west coast where you're judged by the amount of vapor you exhale.

Article from The NY Times appears here.

Enjoy!

Bernie Sanders' War in America Speech

2010-12-07T17:10:00.000-05:00

Worth your 10 minutes:

On Health and Education

2010-12-06T11:27:00.001-05:00

2 articles of note: one on personal health (destressing using breathing), and the other on making the world a better place via education.

On personal health: Click here.

On Improving Global Education: Click here.

Wikileaks Cast of Characters

2010-12-02T12:20:00.004-05:00

Want a Who's Who amongst Global Wikileak Characters?

Here's your chance: CNN has done a good job.

Don't worry, there's not much text to read -- just a picture and a short description.

Want some McSurance with your Fries?

2010-12-02T10:43:00.005-05:00

Slate has a fantastic article on so-called "mini-meds" that are not quite full health insurance but more of an "insurance" on paper.

McDonald's offers hourly workers at its 1,500 company-owned restaurants four health-insurance options... Only one of these options (annual premium: about $6,000 per year, obviously more than most hourly workers can pay) is "comprehensive" (i.e., real) insurance. The other three are mini-meds. The cheapest option (and the one nearly all its hourly workers opt for) cost $710 per year in 2008... and had an annual benefit ceiling of $2,000. The other two options cost $1,332 and $1,947 per year and had annual benefit ceilings of $5,000 and $10,000.

...the sliding premiums for the three insurance options available to corporate suits and some restaurant managers but not to hourly employees actually begin at levels below those paid by hourly workers for mini-med plans even though the suits' policies contain no annual benefit limits. That's right. Some nonhourly employees at McDonald's pay less for their real health insurance—with no annual limits and, indeed, an employee out-of-pocket maximum of $4,000 for covered expenses—than the schmucks shoveling French fries and flipping Big Macs pay for fake health insurance with annual benefit limits of $2,000, $5,000, and $10,000, and no employee out-of-pocket maximum for covered expenses. Oh, and the absolute highest health premium the suits might pay ($1,435 for higher-earning employees in the "no deductible PPO") is less than a quarter the premium McDonald's expects the schmucks to pay for the only policy hourly workers can opt for that isn't a mini-med.

Much more in the article available here.

So the question is, is mini-med better than nothing? I say no, absolutely not. Here's why (from article):

Rockefeller answered with the analogy of a car whose brakes don't work 10 percent of the time. "Your brakes have to work all the time," he said, "or else you're not going to drive the car." The point he was trying to make, however awkwardly, was that it's no use saying insurance works out really well for the 90 or 98 percent of policyholders to whom disaster doesn't strike if it works out really badly for the 10 percent or 2 percent to whom disaster does strike, because the main reason we buy insurance in the first place (Duh!) is because we might end up being that 10 percent or 2 percent.

That point was driven poignantly home by Eugene Melville, a witness who works part-time for a big-box retailer that he declined to identify. Melville, who choked up several times in the hearing room, said he purchased through his employer a mini-med policy from Aetna with a $20,000 annual limit. In July, Melville said, he went to the doctor "for what I thought was an injury from a car accident." The doctor noticed a lump in Melville's neck, ordered up a biopsy, and diagnosed Melville with oral cancer. Melville figured he had close to $20,000 left to spend on the recommended treatment, but he quickly learned that within that $20,000 ceiling there were smaller ceilings—$2,000 on hospital lab tests, surgical supplies, and drugs; $2,000 for outpatient treatments such as chemotherapy—that effectively prevented him from using his mini-med insurance at all. Eventually he enrolled in a program for the medically indigent that did not offer the surgical options recommended by his doctor. The kicker, Melville said, was that Aetna sent him a letter suggesting that his oral cancer was a preexisting condition.

It's simply criminal. The minimum wage is $7.25. Working 40 hours a week, 52 weeks a year, that's a gross income of $15,080. Pay some Federal Income tax, state income tax, Medicare, and FICA, and you might be lucky to take home $1000 a month. Pay rent, utilities, etc, and... well, you see where this is going. Either offer a real plan that can be used, or don't offer anything at all. The illusion of insurance is probably the worst. It's like thinking Santa really exists. You could say they know exactly what they're getting into, to which I reply, when was the last time you read and can recall every detail of any of your insurance policies?

Next time you order a double cheeseburger and large fries, think about that, will you?

Idiotic threats

2010-12-01T11:26:00.006-05:00

CNN.com reports that:

Senate Republicans promised Wednesday to block legislative action on every issue being considered by the lame-duck Congress until the dispute over extending the Bush-era tax cuts is resolved and an extension of current government funding is approved.

Politicians are stupid. Period. This reminds of the mid-1990s when Newt Gingrich shut down the government. Okay Republicans, go ahead. Block everything so that your special interest groups and those who need the tax cut least come before all else in the agenda.

The funny thing is that deep at heart I'm probably a fiscal Republican, but the crazy nonsense that goes on in the Grand Ol' Party makes me cringe. Not that the Dems are any better either, by the way.

I'm back! And, are some dentists crooks?

2010-11-30T13:18:00.005-05:00

Wow. It's been over a year since I last posted. Horrendous. But, I would like to come back and restart posting. I have found that it is incredible and often jaw-dropping to see posts several months/years ex-poste. And, it makes for quite the diary/memory bank. Too bad this can't be a pensieve.

For today, I'll leave you with this: Dentist visit soon? Watch what you wish for.

Enjoy!

United Breaks Guitars II

2009-09-17T21:40:00.004-05:00

United Breaks Guitars

2009-07-21T14:41:00.003-05:00

God, Guns, Guts and American Pick-Up Trucks!

2009-07-17T16:15:00.002-05:00

This is what I'm talking about - heck yeah!

The most useful airlines link

2009-06-26T10:16:00.003-05:00

The most useful link while making airline reservations, ever: here.

http://www.cnn.com/2009/TRAVEL/06/24/airline.fees/index.html

Still to come: Obesity Charge. Enjoy!

Never stop learning

2009-06-20T13:11:00.000-05:00

"We shall not cease from exploration
And the end of all our exploring
Will be to arrive where we started
And know the place for the first time."

--T.S. Eliot, The Four Quartets

The Expanse

2009-06-16T11:19:00.002-05:00

http://www.time.com/time/video?bcpid=16767621001&bclid=1342094282&bctid=26444197001

This is partly why we're better off...

2009-06-12T14:05:00.001-05:00

... we have a really cool president!

Arlington!

2009-06-12T13:48:00.001-05:00

Simple living

2009-06-12T11:36:00.001-05:00

Visit msnbc.com for Breaking News, World News, and News about the Economy

Sophie Madeleine

2009-05-29T22:20:00.002-05:00

Did you hear the Beard Song that I posted below? It's by Sophie Madeleine. She has an album. You can get more info, listen to all the songs right here!

Support the girl!

Enjoy!

Regulate featuring Warren B

2009-05-28T12:29:00.000-05:00

She's good!

2009-05-22T23:14:00.001-05:00

Jury Duty

2009-05-02T15:15:00.004-05:00

I think this would be my reaction too if asked to participate in jury duty.

In case you're wondering what it says, I'll type it out for you:

"Apparently you morons didn't understand me the first time. I CANNOT take time off from work. I'm not putting my family's well being at stake to participate in this crap. I don't believe in our "justice" system and I don't want to have a goddamn thing to do with it. Jury duty is a complete waste of time. I would rather count the wrinkles on my dog's balls than sit on a jury. Get it through your thick skulls. Leave me the F_ _K alone."

I love it.

Food, hunger, the end of the world, etc

2009-04-24T22:33:00.005-05:00

I recently watched a fantastic documentary on the realities behind Genetically Modified Organisms (GMO), in particular food - GM food as it's called. The documentary is The Future of Food, and I highly recommend it to you. There are many interesting and valid issues that are brought to the forefront regarding the dangers of GM food, starting from how it is produced to its effects on the world ecology. In essence, corporate-style mass production of genetically modified seeds, e.g. using Round-Up seeds, is a dangerous path down the destruction of biological diversity. At one point, we had hundreds of different types of potatoes and corn. Today we have a handful. Most of the corn grown in the US can only be used to feed livestock because it produces an insecticide (BT) that kills the bugs that try to eat the plant. But the corn is eaten by livestock, which we then eat... you should watch the documentary. If you have a Netflix subscription, you can stream the movie from there using the Watch Instantly feature.

Coincidentally, the Scientific American's lead story as of this writing is "Could Food Shortages Bring Down Civilization?'

This GMO issue adds to the mounting evidence of the wonders of rural life and is convincing me that I ought to move out of this crazy city ASAP, and go back to rural America where I left a large piece of my heart in the first place.

A New Adam

2009-04-07T09:40:00.003-05:00

Remember the Adam and Eve from Genesis? The ones created by God? Well, forget them. Now, there's a new Adam and a new Eve. In this version "Adam is a prototype... [and] Eve is better designed and more elegant."

I'm not on crack.

"A laboratory robot called Adam has been hailed as the first machine in history to have discovered new scientific knowledge independently of its human creators" according to this article.

So, get ready to tell your kids to read Science and not Genesis to understand how it all began.

I find it funny that we're not even remotely close to creating a human-like being with thousands of people working together and millions of dollars being spent to come up with something. Yet, 'creationism' - oh no, don't say it.

Either way, it's fascinating.

It's all this man's fault

2009-04-06T19:31:00.002-05:00

This is a fantastic (though a little long) read about a computer programmer who created the software that was used to trade securitized mortgage (and anything else) packages. It's a great insight into Wall Street and how it works (or does not work), the pigs that are scattered all over the trading floors, and about the angel of greed who looks over it. I highly recommend it. It's written by the programmer himself.

Link here.

The Financial Solution

2009-04-04T22:52:00.000-05:00

The business section of St Petersburg Times asked readers: "How Would You Fix the Economy?" Here's an interesting idea:

Dear Mr. President,

Patriotic retirement: There are about 40 million people over 50 in the work force; pay them $1 million apiece severance pay with three stipulations:

1) They leave their jobs. Forty million job openings - Unemployment fixed.
2) They buy NEW American cars. Forty million cars ordered - auto industry fixed.
3) They either buy a house or pay off their mortgage- housing crisis fixed.

All national financial problems fixed and at a cost of only $40 billion rather than the $1 or 2 trillion the current and past administrations spent/proposed.

The math is wrong - it would cost $40 Trillion - but aren't we headed there anyway, and wouldn't this solve the problem almost immediately?!

Us vs Them

2009-04-04T11:26:00.003-05:00

How does one get to be these people? Any insight is welcomed.

Snippets follow.

Lawrence Summers, director of President Barack Obama’s National Economic Council, earned millions working at a hedge fund and speaking to banks such as Citigroup Inc. that later received taxpayer bailout money.

David Axelrod, the chief strategist of Obama’s campaign who is now a senior adviser to the president, received $1.55 million in salary and partnership income from public affairs firms. He agreed to buyouts that will pay him $3 million over five years, his disclosure form showed.

Carol Browner, the White House energy policy coordinator, was paid $450,000 for her work last year with Albright Group LLC, a consulting firm founded by former Secretary of State Madeleine Albright. Browner is still owed between $350,000 and $750,000 in Albright Group

White House Counsel Gregory Craig was paid $1.7 million by the law firm Williams & Connolly LLP, where he was a partner.

Desiree Rogers, the White House social secretary, was paid $1.8 million for less than seven months’ work as president of Peoples Gas and North Shore Gas. In July, she left the utility company to work for Allstate as president of social networking, and was paid $350,000 through the end of the year. She also was paid $150,000 for serving on the board of Equity Residential, a real estate firm and $20,000 for serving on the board of Blue Cross Blue Shield in Chicago. She owns between $250,000 and $500,000 worth of stock in Equity Residential.

Thomas Donilon, deputy White House national security adviser, was paid $3.9 million by O’Melveny & Myers LLP, his former law firm.

Everything's amazing, everyone's unhappy

2009-04-03T16:18:00.000-05:00

A must watch right here.

Enjoy!

The magic of the market

2009-04-01T14:43:00.001-05:00

I got this from here.

There's a lot of truth in it!

IRS: A Taxing Problem

2009-03-31T22:13:00.004-05:00

The WSJ reports that the yet another cabinet nominee - Kathleen Sebelius (whom I have met by the way) - had to pay additional taxes because she missed them the first time.

I think this means one thing and one thing only: our tax system needs an overhaul.

This is not the first time, or the second time. It seems like every time someone is nominated, they have some tax issue. Keep in mind that these are not foolish people who just don't get it - these are smart, motivated, ambitious and generally wealthy individuals who can afford to get the help they need. But yet they fail. The only explanation is that our tax system is way too freakin complicated and needs to be simplified. How about a flat tax! Or, close all loopholes. Earn a dollar, pay .20 in tax. Don't care where it's from or how you got it. Deductions, rebates, credits... blahblahblah... do away with it! Instead, give people good incentives to do well - pay for education, give incentives to stay healthy.... Get a 3.5 in high school and you're in the 90th percentile of SAT/ACT? Guess what! Go to any college and the Feds pay your tuition as long as you maintain a 3.2 every semester, etc. Go to the doctor every year and maintain your weight, stay off drugs, excessive alcohol, etc... you get $500, etc. This nonsense about how many miles do you drive to work and do drive a hybrid or an electric car... whatever, create a better system by focusing on tomorrow, not on today!

Anyway, this is a call to abolish the IRS in its current form.

Thoughts?

Ad absurdum

2009-03-30T19:18:00.004-05:00

CNN reports "General Motors' outgoing chief executive Rick Wagoner is eligible to receive more than $20 million in his retirement package, according to a filing with the Securities and Exchange Commission."

Let me rephrase that: $20 million bucks for running GM to the ground. Let's see if he takes it.

Oh America, you are truly great. Just not fair.

You see the pattern, though, reader? If I worked at a big firm right now, let's say a phone company for example, my goal would be to get to the top, borrow huge amounts of money and buy out every other company, give phones out for free, employ 30 million Americans... voila, too big to fail. Then, it's simple: f*ck the company up. You're guaranteed to receive more money than 10 generations after you will need!! Sweeeeet! Oh, don't forget to sing "America the beautiful" in the process.

Seriously, though, you know what we call this in developing countries? Corruption. Here? "Benefits!" Tis truly absurd.

Do you Tweet/Twitter?

2009-03-28T18:11:00.000-05:00

By the way, I'm on Twitter.

Down 98% but still over a million bucks

2009-03-27T23:46:00.003-05:00

What's wrong with the following statement?

"CEO's pay drops 98%" - nothing, right?

Wrong. Allow me to finish... "to $1.11 million... down from $70.3 million a year earlier."

Want to know the name of this very poor CEO? It's none other than Lloyd Blankenfein of Goldman Sachs.

GS, by the way, is a public company. Kudos to him for not robbing shareholders more than they have already been destroyed by the collective actions of GS and its cohorts. Want to bet his salary plays catch up in the coming years? We have a deal: 98% of your salary.

Source: here.

How much is $1 trillion?

2009-03-25T11:27:00.010-05:00

I would like to illustrate how much a trillion dollar is to you, thanks to this website. I'm copying their info.

Let's start with a $100 dollar bill - you know what that looks like, right?

Now, let's look at what $10,000 looks like when bundled in $100 bills:

Still with me? Good. Now let's put it in perspective. Literally. If you looked at a cool million bucks, it would look like this:

Not too bad eh? So how about $100 million, i.e. the amount CEOs of public companies take home regularly?

Impressed? Good. It gets better. Let's see $1 billion now in the same way.

Pretty sweet eh? According to Forbes, there are around 750 or so people who can do that! But, wait, what about ONE TRILLION dollars? Keep your eyes wide open:

So, there you have it. If you ever wondered how much $1 Trillion really is, now you know. Too bad you and I owe 10 times that much!

USA: A rogue nation?

2009-03-24T06:20:00.004-05:00

What does the US have in common with China, Iran, Pakistan, Saudi Arabia, and even Sudan? You'd think we'd like to think of ourselves as far off from some of these countries as one can get. But, in reality, perhaps we should brand ourselves the now-defunct phrase "axis of evil." Geez, we must be bad, you're thinking. Indeed we are. Why? Because we join these aforementioned nations in one of the few to allow execution, i.e. legal murder by government aka capital punishment.

With China, four other nations -- Iran, Pakistan, Saudi Arabia and the United States -- accounted for 93 percent of the 2,390 executions, according to the group's report "Death Sentences and Executions in 2008."

A disproportionate number of death sentences were handed down to the poor and minorities in Iran, Sudan, Saudi Arabia and the United States. Hmmm... maybe we should attack ourselves and start digging for these graves. Urgh Republicans. Some day they'll understand that a life in the womb is the same life they like to torture and kill a couple decades later.

Source found here.

Seismic Shifts in US Economy to last 2+ Decades

2009-03-22T10:10:00.006-05:00

30 years from today, I'd like to come back and re-read this particular post.

UMB Scout Funds recently had an excellent market commentary on their perspective on the recent financial blow up and the longer term implications. Here are snippets. It's truly brilliant and I agree with their analysis.

From a longer-term view, we feel that the economy is beginning a debt super-cycle contraction. We stand firmly in the camp that a secular shift is occurring within the U.S. economy which will have significant effects on the sustainability of final demand and a shift away from debt-created consumption towards investment.

...

we expect the growth in consumption to be negatively affected both by baby boomers attempting to increase savings and consumers struggling with debt repayment. This is likely to lead to less growth stability than we have seen for the last 20-25 years.

...

Longer term, we believe a seismic shift has begun where the soil which spawns capital and wealth creation will be more fertile in many overseas economies than in our own. That being said, we maintain our view that, over the long run, the dollar will continue to weaken against many foreign currencies. The dollar’s reserve currency status may not be under attack within the immediate future, but it may be forthcoming, adding pressure for investors to favor foreign holdings.

Source: Click here.

True?

2009-03-21T19:46:00.000-05:00

Senator to AIG: "Resign or Go Commit Suicide"

2009-03-17T16:19:00.001-05:00

"The first thing that would make me feel a little bit better towards them if they’d follow the Japanese model and come before the American people and take that deep bow and say I’m sorry, and then either do one of two things — resign, or go commit suicide." - Senator Grassley, R, Iowa

The Bastards of AIG

2009-03-17T15:51:00.006-05:00

You think I'm done with AIG, eh? No way. Here's more cool stuff that you and I are working our rears off for (ok, I'm not working right now, but I am accumulating massive amounts of debt to work later).

New York Attorney General Andrew Cuomo confirmed in a letter to Congress that AIG paid 73 employees bonuses of more than $1 million each.

Cuomo also wrote that 11 of the employees no longer work for the company. The largest bonus paid was $6.4 million; seven other people also received more than $4 million each.

$1 million for *ucking up. $6.4 million for *ucking up more?

Welcome to the new America. I mean, the old America. The America that's always been there... on Knockturn Alley. In times good and bad for each other, enriching neighbors and robbing tax payers of their hard work.

So my numbers weren't too bad - they did make off like robbers. Jerks. I really hope Senator Schumer's idea to tax the bonus recipients for the entire amount works. But you know what, I bet you nothing happens. I bet there's some stupid privacy law in which AIG can't release their names. This sort of bull$hi+ where corporations screw the government (and hence tax payers) has been at the crux of deals for decades. I really hope there are wrestling matches in heaven/hell/whatever-it-really-is, and I get to wrestle these people, WWE style.

Bonus nightmare

2009-03-17T09:39:00.006-05:00

The Jayhawk is happy to see that the AIG bonuses are a big deal - people are finally paying attention!

Along the same lines - enjoy this cartoon from the Washington Post - sent by the wonderful yellowgondola.blogspot.com

By the way, Wall Street's name should be changed to Knockturn Alley (if this doesn't make sense to you, read Harry Potter).

AIG = American Imbecilic Greed

2009-03-15T14:30:00.010-05:00

This just in from the WSJ:

American International Group Inc. will pay $450 million in bonuses to employees in its financial products unit. That division was at the heart of AIG's collapse last fall, which compelled the U.S. government to provide $173.3 billion in aid to keep it running.

Those payments are in addition to $121.5 million in incentive bonuses for 2008 that AIG will start making this month to about 6,400 of its roughly 116,000 employees. AIG, which was rescued in September as it faced potential bankruptcy, is also making over $600 million in retention payments to over 4,000 employees.

Together, the three programs could result in roughly $1.2 billion in retention and bonus payments to AIG employees.

Let's do some math:

Incentive bonuses: $121.5 million + $450 million = $571.5 million
Employees receiving bonuses: 6,400
Bonus per employee: $89,296.88 - each person! a bonus! bonus!!

Since English is my fifth language, I sometimes wonder if I don't know what words really mean, so I looked up "bonus" at Merriam-Webster. It says:

bo·nus
Pronunciation:
\ˈbō-nəs\
Function:
noun
Etymology:
Latin, literally, good — more at bounty
Date:
1773

something in addition to what is expected or strictly due: as a: money or an equivalent given in addition to an employee's usual compensation b: a premium (as of stock) given by a corporation to a purchaser of its securities, to a promoter, or to an employee

Okay, so my English is not that bad. Let's move on and see more American Imbecilic Greed financed by you and me:

Retention bonus: $600 million
Employees receiving: 4,000
Retention bonus/employee = $150,000

So, you run a company to the ground, take tax payers down with you and you make out rich! I love America - it really is the greatest nation on earth - I bet AIG bonus recipients love America more though. The only adjectives that come to mind: corrupt, vile, evil, disgusting, unethical.

Is there really any argument in favor of these figures? Anyone?

R.I.P. suburbia?

2009-03-15T14:09:00.002-05:00

Are we seeing the end of suburbia?

A writer at Fast Company seems to think so. Check it out here.

My reaction:

1. While urban sprawl may not continue at the pace at which it once did, at least in the short-run i.e. the next 10-20 years, the sprawl that exists will continue to be developed.

2. Yes housing prices at many places have come crashing down and many vacant homes may be destroyed, but this will not end suburbia.

3. As long as the population of the country continues to rise, people will need a home.

4. Given our love for 'space' and 'personal bubbles,' suburbs will not die.

5. Good housing in the city is so incredibly expensive that it makes a lot of sense to buy a home outside of the city for a fraction of the cost. The data today show this. At some point, the prices of houses outside the city will come down to a point where people will see value in them and purchase them.

6. Inner city schools are, in general, terrible.

7. Telecommuting and working from home are catching on, and will continue to do so in light of corporate expenses and in an effort to slash them.

8. Companies are more likely to move to the suburbs, again as evidenced over the past decade or two, to take advantage of cheaper real estate and a calmer, friendlier environment.

9. Such articles almost always come at a trough of a cycle - when doom and gloom is the only supposed sensible prediction. I'll take the contrarian approach and say housing prices are about to turn soon, i.e. in the next 6-12 months.

10. The suburbia as we know will change, but everything as we know it will change over the years. It's always done so. Suburbia will become more efficient - homes may be smaller, homes may be more technologically advanced and energy savvy, there will be more hybrid/alternative fuel cars, suburbia may become more compact... but will it die? Yours truly says no way dude.

Anyway, the point is that it's an interesting article on a very applicable topic. I hope to revisit this entry in 2019 and then again in 2079 to see how it turns out.

Do you have thoughts? If so, share away! You, dear reader, have been very quiet - except leftarrow who gets a shout out for commenting!

We've had Enough.

2009-03-14T13:40:00.004-05:00

Lee Iacocca, who rescued Chrysler Corporation, 82 years old now has written a new book: "Where Have All The Leaders Gone?" Here are some excerpts:

Lee Iacocca Says:

"Am I the only guy in this country who's fed up with what's happening? Where the hell is our outrage? We should be screaming bloody murder! We've got a gang of clueless bozos steering our ship of state right over a cliff, we've got corporate gangsters stealing us blind, and we can't even clean up after a hurricane much less build a hybrid car. But instead of getting mad, everyone sits around and nods their heads when the politicians say, 'Stay the course.' Stay the course? You've got to be kidding. This is America , not the damned, 'Titanic'. I'll give you a sound bite: 'Throw all the bums out!'

"You might think I'm getting senile, that I've gone off my rocker, and maybe I have. But someone has to speak up. I hardly recognize this country anymore.
The most famous business leaders are not the innovators but the guys in handcuffs. While we're fiddling in Iraq , the Middle East is burning and nobody seems to know what to do. And the press is waving 'pom-poms' instead of asking hard questions. That's not the promise of the ' America ' my parents and yours traveled across the ocean for. I've had enough. How about you?

"I'll go a step further. You can't call yourself a patriot if you're not outraged. This is a fight I'm ready and willing to have. The Biggest 'C' is Crisis! (Iacocca elaborates on nine C's of leadership, with crisis being the first.)

"Leaders are made, not born. Leadership is forged in times of crisis. It's easy to sit there with your feet up on the desk and talk theory. Or send someone else's kids off to war when you've never seen a battlefield yourself. It's another thing to lead when your world comes tumbling down.

"On September 11, 2001, we needed a strong leader more than any other time in our history. We needed a steady hand to guide us out of the ashes. We're running the biggest deficit in the history of the country. We're losing the manufacturing edge to Asia , while our once-great companies are getting slaughtered by health care costs. Gas prices are skyrocketing, and nobody in power has a coherent energy policy. Our schools are in trouble. Our borders are like sieves. The middle class is being squeezed every which way.

"These are times that cry out for leadership.

"But when you look around, you've got to ask: 'Where have all the leaders gone?' Where are the curious, creative communicators? Where are the people of character, courage, conviction, omnipotence, and common sense? I may be a sucker for alliteration, but I think you get the point. Name me a leader who has a better idea for homeland security than making us take off our shoes in airports and throw away our shampoo?

"We've spent billions of dollars building a huge new bureaucracy, and all we know how to do is react to things that have already happened. Everyone's hunkering down, fingers crossed, hoping it doesn't happen again. Now, that's just crazy. Storms happen. Deal with it. Make a plan. Figure out what you're going to do the next time.
Name me an industry leader who is thinking creatively about how we can restore our competitive edge in manufacturing. Who would have believed that there could ever be a time when 'The Big Three' referred to Japanese car companies? How did this happen, and more important, what are we going to do about it?

"Name me a government leader who can articulate a plan for paying down the debit, or solving the energy crisis, or managing the health care problem. The silence is deafening. But these are the crises that are eating away at our country and milking the middle class dry.

"I have news for the gang in Congress. We didn't elect you to sit on your asses and do nothing and remain silent while our democracy is being hijacked and our greatness is being replaced with mediocrity.

"What is everybody so afraid of? That some bonehead on Fox News will call them a name? Give me a break. Why don't you guys show some spine for a change?

"Had Enough? Hey, I'm not trying to be the voice of gloom and doom here. I'm trying to light a fire. I'm speaking out because I have hope - I believe in America . In my lifetime, I've had the privilege of living through some of America 's greatest moments. I've also experienced some of our worst crises: The 'Great Depression,' 'World War II,' the 'Korean War,' the 'Kennedy Assassination,' the 'Vietnam War,' the 1970's oil crisis, and the struggles of recent years culminating with 9/11.

"If I've learned one thing, it's this: 'You don't get anywhere by standing on the sidelines waiting for somebody else to take action. Whether it's building a better car or building a better future for our children, we all have a role to play. That's the challenge I'm raising in this book. It's a "Call to Action" for people who, like me, believe in America '. It's not too late, but it's getting pretty close. So let's shake off the crap and go to work. Let's tell 'em all we've had 'enough.'"

Taken from a Motley Fool Blog found here.

So, are YOU fed up and ready with an action plan? Thoughts?

Jon Stewart vs. Jim Cramer

2009-03-13T08:47:00.001-05:00

This is a must-watch. Stewart brings up excellent points and articulates his thoughts extremely well. Cramer's a little sober here.

http://www.thedailyshow.com/full-episodes/index.jhtml?episodeId=220533

Enjoy!

How the Credit Crisis Happened

2009-03-12T21:18:00.001-05:00

The Crisis of Credit Visualized from Jonathan Jarvis on Vimeo.

Don't really know how to title this one

2009-03-10T11:56:00.001-05:00

Jon Stewart makes fun of CNBC - Ouch!

2009-03-09T10:43:00.000-05:00

The Daily Show With Jon StewartM - Th 11p / 10c

CNBC Gives Financial Advice

Daily Show Full Episodes
Important Things With Demetri Martin

Political Humor
Joke of the Day

Short circuited

2009-03-08T23:00:00.002-05:00

Once upon a time, there was a store called Circuit City...

http://finance.yahoo.com/news/After-60-years-Circuit-City-apf-14576739.html

Do you tip?

2009-03-08T21:55:00.003-05:00

Ever wondered about the American culture of tipping? Have an opinion yourself? You should share it. Here's an article by a British journalist who looks into our tipping, er, 'tradition.' The comments at the end of the article are especially amusing.

My opinion - tipping has gotten out of control. While I believe that I'm generally very generous because I realize that the people providing the service are not always paid very well, I wonder if it's gotten to the point where employers just exploit the tipping expectation and have deliberately decided to pay minuscule wages. Tipping 15-20% in restaurants is understandable since the wages are absurdly low, but when you have to tip the cab driver (for what?! He simply drove the car like you'd expect!), the delivery guy (generally after paying a heavy sum for delivery!), movers (although their work is really, really hard)... it's getting too much. We should have a 'no tipping' day - I'm guessing no one will show up to work.

What do you think?

Bush, Cheney, Darfur

2009-03-04T10:19:00.003-05:00

You should read this: http://www.cnn.com/2009/WORLD/africa/03/04/darfur.rape/index.html

And then consider that it's happened under Bush and Cheney's watch - they who considered themselves messengers and liberators from God himself and took it in their own hands to go plundering and murdering people in Iraq (which by the way was a fully functioning country), while genocide of the worst kind known to the world was taking place not too far away from the Middle-East. Some day when history is written (and not the revisionist kind of history that Cheney tried so hard to write in his final days as VP), I believe we'll look at the issue of Darfur and we'll look back with great remorse.

It doesn't help that nothing much has been said of Darfur or is being done even today, but at least we don't have a president who believes he is *the* 'axis-of-good.'

A New American Paradigm?

2009-03-01T23:28:00.003-05:00

WSJ outlines the new realities in corporate America - the massive cutbacks of professionals. Some interesting points:

1. The consumer-led economy of the past few decades created niche markets of people who learned to write, to advertise, etc. These jobs are getting axed - what are these super specialized people to do? They certainly can't build roads and wind turbines.

2. Getting a professional degree has been a way up - is it now going to be a way down, especially after you add up the debt required to get one?

3. Will the cost of professional services as a whole decrease as good talent is laid off and will eventually compete with each other?

4. Have we - as a society - become increasingly dependent on others? Of course, we have. Must there be a revolutionary change in these fundamentals, i.e. should a nuclear engineer also learn how to grow potatoes and tomatoes?

5. Will we finally have fewer ambulance chasers?

6. Did somebody say back to basics...?

7. Should we rename our country NUSA (New United States of America)?

Anyway, the list continues - here's the article.

See your cell in action!

2009-02-28T23:39:00.002-05:00

An absolutely amazing 3D video of our cells by medical illustrator David Bolinsky.

Click here

Simply amazing stuff!

Subsidize me too, please!

2009-02-27T12:37:00.000-05:00

Dogbert gets TARP funds

2009-02-26T22:47:00.000-05:00

Einstein is super smart! Watch her here...

2009-02-25T13:58:00.000-05:00

I'm joining the Santelli Tea Party!

2009-02-21T00:23:00.002-05:00

http://www.cnbc.com/id/15840232?video=1039849853

You should too!

Bill Gates is amazing

2009-02-18T15:43:00.000-05:00

Wall Street: A Castle built on Quick Sand?

2009-02-11T15:13:00.005-05:00

When you hear stories like this one, amongst a myriad of others, combine it with Madoff and you start wondering if the financial 'American Dream' and Wall Street are simply castles that have been built on quick sand and will no longer stand on their own going forward. The banks and brokers are essentially doomed as indicated in their almost non-existent equity prices that continually approach 0. The idea of the American who could purchase whatever they wanted to on credit is pretty close to a dream these days (or a nightmare?), and the once stalwart investment known as your home or real estate is turning out to be a squishy little bug - as reported here ("Median housing prices in the Fort Myers metropolitan area have plummeted from $322,000 in December 2005 to less than $107,000 in December 2008, the Obama administration notes.") I find it interesting nonetheless that everyone keeps talking about 401Ks, IRAs, blah, blah, blah. We've just had a period of over 10 years where the stock market cleaned us out, yet here we go again: "buy paper so that others can work and you can hopefully become rich." It's absurd. Just because the markets performed exceptionally well between 1980 - 2000, is no indication that they will, yet I think we all want to believe that will be the case. Selective memories? This market will get a lot worse before anything improves. Next in line to go: retailers - one of the largest employers in the country. And, with that, goes jobs - millions more of them. And with that, a much weaker consumer, i.e. significantly weaker sales... am I talking myself into a vortex? It's coming, but man do I hope that I am dead wrong in my pessimism.

Death Sentence for $15 Million Fraud

2009-02-10T21:36:00.001-05:00

Perhaps we should enforce this type of punishment in the US... I think all management fraud will cease and we'll be able to get back to business in no time. It's just too bad that I am vehemently opposed to the death penalty.

Former chairman of Chinese company sentenced to death

By V. Phani Kumar
Last update: 8:35 p.m. EST Feb. 10, 2009
HONG KONG (MarketWatch) -- A Chinese court has handed a death sentence to Li Peiying, a former chairman of Capital Airports Holding Co., for bribery and embezzlement of more than 100 million yuan ($14.6 million), according to a state media report. Li was given the sentence by the Jinan Intermediate People's Court in Shandong province in eastern China, after he was found guilty of seeking or accepting bribes for 26.61 million yuan while he was in office from 1995 to 2003, Xinhua reported. Li also misappropriated 82.5 million yuan from 2000 to 2003, according to the court, the report added.

Flight 1549

2009-02-08T22:13:00.001-05:00

A Theory of Everything - Garrett Lisi

2009-02-08T10:45:00.002-05:00

An amazing gift

2009-01-13T17:00:00.003-05:00

Think the world does not have much left in it? Want to see true love in action? Give me fifteen minutes and I'll show you.

2009!

2009-01-01T10:34:00.004-05:00

We're here! 2009 is finally here. One of the most interesting and challenging years is behind us. We can now look ahead, start afresh, think clearly again. A tabula rasa.

There are many changes ahead of us in 2009. For a start, a new president. He has a lot to accomplish, but he is a smart, capable and motivated fellow. The financial system's overhaul will continue. Politicians will continue to flounder. Gas prices may rise or may continue to fall. The financial markets will continue to be their random selves. Black swans will be sighted.

But, you and I enter the last year of the first decade of the twenty-first century. Let's use this opportunity to re-focus our lives to accomplish what is important in creating a better, healthier, happier, kinder, and selfless community. After all, we do have a stated mission as Americans:

We the People of the United States, in Order to form a more perfect Union... insure domestic Tranquility... promote the general Welfare... do ordain and establish this Constitution for the United States of America.

So let's do it! Focus on Domestic Tranquility and the promotion of the General Welfare.

On a personal level, there are many new challenges ahead for me. Stay tuned!

And, finally, keep this in mind:

"Keep a clear eye towards life's end. Do not forget your purpose and destiny as God's creature. What you are in His sight is what you are and nothing more. Remember that when you leave this earth, you can take nothing that you have received... but only what you have given; a full heart enriched by honest service, love, sacrifice and courage." -- St. Francis of Assisi

My Christmas Gift to You!

2008-12-25T12:55:00.002-05:00

http://sports.espn.go.com/espnmag/story?section=magazine&id=3789373&lpos=spotlight&lid=tab2pos1

I promise you'll get something out of it.

Merry Christmas!

America's Worst Breakfast Foods

2008-12-24T16:51:00.005-05:00

I recently came across this list and was in complete disbelief. You have to check it out. Here's a summary:

Worst side dish

Burger King Hash Browns (large)

620 calories
40 g fat (11 g saturated; 13 g trans)
1,200 mg sodium
60 g carbs

Calorie equilavent: 12 chicken wings

Worst breakfast sandwich

Hardee's Monster Biscuit

710 calories
51 g fat (17 g saturated)
2,250 mg sodium
37 g carbohydrates

Sodium equivalent: Six large orders of french fries

Worst kids' meal

Denny's Big Dipper French Toastix with margarine and syrup

770 calories
71 g fat (13 g saturated)
107 g carbs

Fat Equivalent: 23 chicken McNuggets

Worst pastry

Cinnabon Classic Cinnamon Roll

813 calories
32 g fat (5 g trans fat)
117 g carbs

Calorie equivalent: Seven bowls of Froot Loops

Worst smoothie

Smoothie King Grape Expectations II (40 oz.)

1,102 calories
256 g sugars
740 mg sodium

Sugar equivalent: 12 Haagen Dazs ice cream bars

Worst combo meal

McDonald's Deluxe Breakfast

1,360 calories
64 g fat (22 g saturated)
2,325 mg sodium
160 g carbs
49 g sugars

Saturated fat equivalent: 22 strips of bacon

Worst omelet

IHOP Big Steak Omelet

1,490 calories
(No additional nutrition information available)

Calorie equivalent: More than seven glazed Krispy Kreme doughnuts

And the Winner is...

The worst breakfast in America

Bob Evans Stacked and Stuffed Caramel Banana Pecan Hotcakes

1,543 calories
77 g fat (26 g saturated; 9 g trans)
2,259 mg sodium
198 g carbs
109 g sugars

Saturated fat equivalent: 26 strips of bacon

Sugar equivalent: 12 chocolate chip cookies

Sodium equivalent: 12 small bags of potato chips

So, there you go. Most unfortunately I quite enjoy the McDonald's Deluxe Breakfast. It's quite a bummer.

Charles Ponzi vs Bernie Madoff

2008-12-23T12:23:00.003-05:00

Why exactly is it called a "Ponzi Scheme?" Who was Ponzi? What did he do? All the answers to all your questions about the mastermind of the fraud named after him.

Click here: http://www.mentalfloss.com/blogs/archives/20995

Enjoy!

Countdown!

2008-12-22T23:09:00.001-05:00

Get this widget!

Wall Street needs a makeover

2008-12-12T10:59:00.005-05:00

I recently got to thinking about the role of Wall Street - asset managers, hedge funds, etc - and whether they really promote society's well being, and whether the field is over saturated today.

I certainly believe that we, as a society, are better off with the likes of Vanguard - low-fee index fund king - who allow the general public to invest at least part of their hard-earned money in stocks, which have shown to be a relatively good investment in the long term. However, I think the glitz and glamor of the industry has now attracted far too many individuals for the wrong reasons - greed and money - and society as a whole is probably worse off as these talented individuals go to Wall Street to - essentially - shuffle a deck of cards, instead of working as engineers to, say, build a better bridge, or come up with a new treatment for an illness, or research better ways to produce energy, etc.

Buying and selling stocks is really not very difficult - you click a button these days. So the question is what do you buy and what do you sell. Some generally ask why, but many do not. Regardless, in today's world, we have an industry in which people make 'careers' out of trying to shuffle around other people's money, and in the process they hope to become ultra wealthy. It's really ludicrous, but understandable if you are really producing something good for society, i.e. returns consistently in excess of the average like Warren Buffett. But, given that over 90% of asset managers cannot even beat the S&P 500, I really don't know why they exist. Moreover, I don't know why people happily give them their dough. Wait, I know - financial illiteracy.

Wall Street has become a gigantic card shuffling machine, where the cards are other people's money. This money has been earned by people who actually 'produce' stuff - tangible and intangible - and contribute to the economy's goods and services. Wall Street, on the other hand, simply tries to catch the wave and hopes that other people (those working at companies like GE, MMM, etc) will be successful at building stuff or providing services, but that they (Wall Street) will be enriched. Hedge funds engage in the most sophisticated form of gambling using options, credit default swaps, and other derivatives that are nothing but a zero-sum game, e.g. for the option buyer to win, the seller must lose. (It is not so with stocks in the long run). Anyway, the whole thing is absolutely absurd and I am not surprised that it is falling apart right in front of our delicate eyes.

Goodbye Madoff

2008-12-12T10:55:00.002-05:00

Ah the world of finance - one giant card shuffling machine.

Snippets from the article:

"A Wall Street powerbroker for nearly 50 years who built an influential firm has confessed to a massive fraud scheme that will cost investors at least $50 billion, federal authorities say.

"In 2001, Barron's reported that Madoff's firm was one of the three top market makers in Nasdaq stocks and the third-largest firm matching buyers and sellers of securities on the New York Stock Exchange.

"The criminal complaint signed by FBI Agent Theodore Cacioppi said Madoff told at least three senior employees at his Manhattan apartment Wednesday that the investment adviser business was a fraud and had been insolvent for years, losing at least $50 billion.

"Madoff told the employees he was "finished," that he had "absolutely nothing," that "it's all just one big lie" and it was "basically, a giant Ponzi scheme," according to the complaint filed in court."

http://finance.yahoo.com/news/ExNasdaq-chairman-arrested-on-apf-13815890.html

Having a bad day?

2008-12-07T23:14:00.000-05:00

Time marches on...

2008-12-02T22:17:00.001-05:00

Peter Schiff was right

2008-11-19T11:58:00.001-05:00

America: The Greatest Nation

2008-11-05T00:31:00.001-05:00

Insane and freaky.

2008-08-15T10:50:00.000-05:00

Pop Corn téléphone portable micro-ondes
Uploaded by sassiere

The Merton Prayer

2008-08-03T22:40:00.002-05:00

MY LORD GOD, I have no idea where I am going. I do not see the road ahead of me. I cannot know for certain where it will end. Nor do I really know myself, and the fact that I think I am following your will does not mean that I am actually doing so.

But I believe that the desire to please you does in fact please you. And I hope I have that desire in all that I am doing. I hope that I will never do anything apart from that desire. And I know that if I do this you will lead me by the right road, though I may know nothing about it.

Therefore I will trust you always though I may seem to be lost and in the shadow of death. I will not fear, for you are ever with me, and you will never leave me to face my perils alone.

--Thomas Merton, "Thoughts in Solitude"
(Website found here.)

Credit Crisis: The First Year

2008-08-02T11:49:00.002-05:00

From Marketwatch:

Why the change?

2008-07-11T13:55:00.002-05:00

In light of the recent bleak macro-economic and political environment, I felt it was best to symbolize my feelings about the world by changing the layout of this page to black. It symbolizes the demise of Bear Stearns, the 20%+ drop in the markets, the record oil prices (oil is black!), and the potential for things to get worse, including - God seriously forbid - another war (with Iran).

Just remember, things always get darkest right before it gets pitch black. So, hang in there.

Hopefully, this will only be a temporary move and we'll be back to happy days again soon. In the meantime, tread carefully!

Gas price stopping you?

2008-07-09T15:49:00.003-05:00

From Reuters:

A Nevada brothel is trying to stimulate business by offering free gasoline. ...

"It's rocking along. We're doing quite well. June and July historically are not big months," said [the owner].

Not sure how I should react to this - should I be disturbed about the prostitution aspect, or the fact that we're so easily lured into morally depraving activities? And, students of economics should note that prostitution is a normal and elastic good, at least according to this story.

"Family First" Mortage Corp Irony

2008-07-08T16:10:00.003-05:00

As you may know, hundreds of mortgage lenders have had to shut down recently due to the ongoing economic hell / real estate recession.

Here's a voice recording from Family First Mortgage Corp that alerted employees who were terminated. You should listen to it - it's quite horrifying to know that a company will fire you in this manner. (Message courtesy of Implode-O-Meter).

http://ml-implode.com/info/fam-first-orig-message.mp3

So anyway, that's just the dire state of things these days.

Buns and Guns

2008-07-07T10:06:00.000-05:00

Would you eat here?

Cool concept, eh?

11 Best Food You Aren't Eating

2008-07-02T12:58:00.001-05:00

From the NYTimes:

Beets: Think of beets as red spinach, Dr. Bowden said, because they are a rich source of folate as well as natural red pigments that may be cancer fighters.
How to eat: Fresh, raw and grated to make a salad. Heating decreases the antioxidant power.
Cabbage: Loaded with nutrients like sulforaphane, a chemical said to boost cancer-fighting enzymes.
How to eat: Asian-style slaw or as a crunchy topping on burgers and sandwiches.
Swiss chard: A leafy green vegetable packed with carotenoids that protect aging eyes.
How to eat it: Chop and saute in olive oil.
Cinnamon: May help control blood sugar and cholesterol.
How to eat it: Sprinkle on coffee or oatmeal.
Pomegranate juice: Appears to lower blood pressure and loaded with antioxidants.
How to eat: Just drink it.
Dried plums: Okay, so they are really prunes, but they are packed with antioxidants.
How to eat: Wrapped in prosciutto and baked.
Pumpkin seeds: The most nutritious part of the pumpkin and packed with magnesium; high levels of the mineral are associated with lower risk for early death.
How to eat: Roasted as a snack, or sprinkled on salad.
Sardines: Dr. Bowden calls them “health food in a can.'’ They are high in omega-3’s, contain virtually no mercury and are loaded with calcium. They also contain iron, magnesium, phosphorus, potassium, zinc, copper and manganese as well as a full complement of B vitamins.
How to eat: Choose sardines packed in olive or sardine oil. Eat plain, mixed with salad, on toast, or mashed with dijon mustard and onions as a spread.
Turmeric: The “superstar of spices,'’ it may have anti-inflammatory and anti-cancer properties.
How to eat: Mix with scrambled eggs or in any vegetable dish.
Frozen blueberries: Even though freezing can degrade some of the nutrients in fruits and vegetables, frozen blueberries are available year-round and don’t spoil; associated with better memory in animal studies.
How to eat: Blended with yogurt or chocolate soy milk and sprinkled with crushed almonds.
Canned pumpkin: A low-calorie vegetable that is high in fiber and immune-stimulating vitamin A; fills you up on very few calories.
How to eat: Mix with a little butter, cinnamon and nutmeg.

Any surprises?

Captured Alive

2008-07-02T10:40:00.002-05:00

To bring a story that I posted here earlier to a close:

The fugitive hedge fund swindler Samuel Israel III surrendered to law enforcement officials on Wednesday, ending a manhunt that began shortly after he faked his suicide on the day that he was to report to prison.

Source: NYTimes. Continued here.

The man's a fool. He'd probably have gotten a lot less than 20 years had he just served his term. Now, he'll probably be in for at least 20 years. Money isn't the end of it all now, is it?

Madness

2008-07-02T09:35:00.002-05:00

Taken from the Washington Post:

The American Family Association obviously didn't foresee the problems that might arise with its strict policy to always replace the word "gay" with "homosexual" on the Web site of its Christian news outlet, OneNewsNow. The group's automated system for changing the forbidden word wound up publishing a story about a world-class sprinter named "Tyson Homosexual" who qualified this week for the Beijing Olympics.

The problem: Tyson's real last name is Gay. Therefore, OneNewsNow's reliable software changed the Associated Press story about Tyson Gay's amazing Olympic qualifying trial to read this way:

Tyson Homosexual was a blur in blue, sprinting 100 meters faster than anyone ever has....

Source: Washington Post. Continued here.

If anyone can please explain why they'd want to replace the word gay with homosexual, I'd really appreciate it.

I'm voting Republican

2008-06-30T21:27:00.000-05:00

Midnight's Gone

2008-06-30T11:57:00.001-05:00

Artist: Terri Clark
Song Title: Midnight's Gone

We got our first McDonald's
And it made the headline news
In a town where no one locks their doors at night
All the lights are flashing yellow
We just roll right through
And there is not a superstore in sight
But there's more to life
I told myself I'd say good-bye
By the time the clock struck twelve

But I can't pull the trigger on that changing world out there
With all these dreams I can't believe I'm still standing here
It's time to face the fact that I'm not the rebel that I thought
'Cause midnights gone but I'm not

Everyone I run into
Has known me all my life
There are no secrets you can call your own
Since the age of seventeen
I've faced the morning light
Saying this day is the day I'm gonna go
All I have to do is drive away
But the things that make me crazy
Always make me stay

But I can't pull the trigger on that changing world out there
With all these dreams I can't believe I'm still standing here
It's time to face the fact that I'm not the rebel that I thought
'Cause midnights gone but I'm not

It's time to face the fact I'm not the rebel that I thought
'Cause midnights gone, midnights gone
but I'm not

Life Is Good

2008-06-30T10:52:00.007-05:00

Artist: Jo Dee Messina
Song Title: Life is Good

I used to think that life was all about the Joneses
Trying to find a way to just keep up some how
I had to have it, do it, be it, had to own it
A little secret that I finally figured out

We spend so much time climbing up the ladder
And then we're missing all the things that really matter

Chorus:
I've got my two feet on the ground
Breathin' in and breathin' out
Oh yeah
Life is good
I'm gonna grab on to today
Live every minute in the way I know I should
Life is good

I like to move, I like to run, I like to get it done
Or I can stay home on the couch and watch tv
Give me sunshine, give me rain, it makes no diffence to me
It's all the same, all the same to me

Call me simple, call me crazy
I believe that it's all in what we make yah

Repeat chorus

Call me simple, call me crazy
I believe that it's all in what we make yeah

"Jesus for President"

2008-06-29T19:55:00.005-05:00

People pack churches to hear Shane Claiborne talk about "Jesus for President," the book he co-authored. The dreadlocked Christian activist from Philadelphia and his team parked a black school bus around the back. The hand-painted gold letters on the side read "Jesus for President." The bus runs on vegetable oil and, yes, it's a political statement. "It'll be a long time before we fight a war over used veggie oil," says Claiborne with a sly smile. Claiborne is touring the country, packing churches and community centers, in support of the book he and Chris Haw co-authored, "Jesus for President."

...

Young evangelicals represent an important swing-voting bloc. They're not a lock for Republicans as their parents were. Their feet are firmly planted on issues dear to both parties. Traditional family values are, as they have been in the past, an important issue.

But these voters say views on abortion and homosexuality won't define them in November. The environment and social justice are moving to the forefront of their discussions.

Taken from CNN. Emphasis added.

S&P 1170 Revisited

2008-06-26T10:47:00.004-05:00

As many of you know, I'm generally an optimist. Yeah right, you may say to yourself. That's true - recently, I've turned increasingly bearish on the US economy.

Today, there's an article in Bloomberg that only adds more fuel to the fire that's burning our portfolios. The master, Warren Buffett, has spoken. And, he's not optimistic. In fact, "he's concerned about ``stagflation,'' or slowing in the U.S. economy while inflation accelerates," reports Bloomberg. You can access the article here.

Of course, Goldman today downgraded C and GM, just as they hit multi-year lows. C's new target is $11. That's right, $11. Wow. This, by the way, was after they upgraded the financials in March (post-Bear Stearns). So much for the big dogs that get paid muchos deniros. Indeed, f- Wall Street.

Let's take a look at a couple of charts here (thanks to stockcharts.com). No, it's not about technical analysis, it's about psychology this time. And what I see is bad, bad news. I have two charts: the first, is the Volatility Index (VIX) and the second is a S&P 500 ETF (SPY).

The VIX is a gauge of fear. As you can see, as the market has fallen rather precipitously recently, the VIX has not spiked like it did a few months ago as we touched these lows. Indeed, it seems to be true that a slow death is a painless death. We're like frogs in boiling water - we'll be dead before we know it. In addition to this semi-complacency, the S&P keeps breaking through major support levels. The next test is 1270s. If we break this, ladies and gentlemen, 1170 is a possibility. Remember 1170? That's right - I talked about it several months ago.

So, anyway, what I see is disturbing. There's still a lot of hope that the market will recover, while it keeps going down. This is a bad sign. What you want is for market participants to throw in the towel, be filled with fear and run away. They haven't done so yet, which only means that they will... one day. There are way too many oil bears out there, while oil simply keeps going up. We need oil bulls for the oil bubble to pop. Inflation is a concern. Economic growth keeps choking. Election uncertainty looms. All in all, stock some canned food and pray. That will serve you best.

$80.4 million for this...

2008-06-25T11:09:00.002-05:00

I'll get back to work now.

US Marshals WANTED List

2008-06-20T09:23:00.002-05:00

The Jayhawk's Nest loathes Wall Street thieves. They are vile creatures. Here's one - catch him and I'll buy you dinner.

Bradley Birkenfeld = Idiot

2008-06-19T15:52:00.004-05:00

WSJ reports:

A former UBS AG banker pleaded guilty in federal court to helping a billionaire client evade taxes by hiding $200 million in assets in offshore accounts, a move expected to aid federal prosecutors in their probe of the Swiss banking giant.

Bradley Birkenfeld, 43 years old, answered softly when U.S. District Judge William Zloch asked him why he participated in the fraudulent tax scheme. "I was employed by UBS…I was incentivized to do this business," he said, standing, hands clasped behind him, at a podium before the judge.

Why the heck do they do these things!?! To make an extra 100K? I'm willing to bet that Birkenfeld was an extremely well paid and well respected fellow in his community. Now, he'll spend about 5 years in jail and pay at 250K penalty. By the way, I don't really think the monetary penalty is very high for these IBankers. Regardless, I just don't understand this stupidity.

Moral of the story: Dodgy business is dodgy business, no matter what. Stay away from it!

How do you feel?

2008-06-17T10:12:00.002-05:00

Some days, we simply need to look to others to express ourselves. Today is such a day!

It was the best of times, it was the worst of times; it was the age of wisdom, it was the age of foolishness; it was the epoch of belief, it was the epoch of incredulity; it was the season of Light, it was the season of Darkness; it was the spring of hope, it was the winter of despair; we had everything before us, we had nothing before us. -- Charles Dickens

Doomsday: T minus N

2008-06-11T15:49:00.010-05:00

Home price drop means $4 trillion in lost capital

The Risk Nightmare - Trillions in CDS markets, nothing to show for?

We have 25-year old 'super-bubble' - According to George Soros

As for the title, 0 < N < infinity.

I can think of nothing else right now, except:

"Dust thou art, and to dust thou wilt return."

My Partial Oil Solution

2008-06-10T10:30:00.004-05:00

I have a partial solution to the volatility of oil prices. As you know, oil is priced in US dollars. Over the past several years, as the USD has gotten hammered, oil has continued its upward trajectory. Many so-called 'experts' agree that oil prices have an inverse relationship with the USD. Clearly, this sort of dependence is rather risky, as we're finding out in the current environment.

My solution - and I'm not sure if it's been suggested before, but I'm guessing that it's certainly not a novel idea - is to price oil using a basket of currencies. In other words, we should price oil as follows: 0.25 USD + 0.25 EUR + 0.25 YEN + 0.25 GBP. I've randomly picked YEN and GBP, but any other major currencies can be used. This also doesn't have to be an equal weighted index, but could use a different methodology. Either way, the point is that we need to reduce the volatility of an extremely important commodity like oil and its dependence on a single currency.

You can even take this further and price all commodities like this to avoid ridiculous rice and wheat riots.

Three Wooden Crosses

2008-06-05T09:35:00.003-05:00

Continuing to explore the Purpose theme, Randy Travis makes an excellent point. I love this song.

Three Wooden Crosses by Randy Travis

A farmer and a teacher, a hooker and a preacher,
Ridin' on a midnight bus bound for Mexico.
One's headed for vacation, one for higher education,
An' two of them were searchin' for lost souls.
That driver never ever saw the stop sign.
An' eighteen wheelers can't stop on a dime.

There are three wooden crosses on the right side of the highway,
Why there's not four of them, Heaven only knows.
I guess it's not what you take when you leave this world behind you,
It's what you leave behind you when you go.

That farmer left a harvest, a home and eighty acres,
The faith an' love for growin' things in his young son's heart.
An' that teacher left her wisdom in the minds of lots of children:
Did her best to give 'em all a better start.
An' that preacher whispered: "Can't you see the Promised Land?"
As he laid his blood-stained bible in that hooker's hand.

There are three wooden crosses on the right side of the highway,
Why there's not four of them, Heaven only knows.
I guess it's not what you take when you leave this world behind you,
It's what you leave behind you when you go.

That's the story that our preacher told last Sunday.
As he held that blood-stained bible up,
For all of us to see.
He said: "Bless the farmer, and the teacher, an' the preacher;
"Who gave this Bible to my mamma,
"Who read it to me."

There are three wooden crosses on the right side of the highway,
Why there's not four of them, now I guess we know.
It's not what you take when you leave this world behind you,
It's what you leave behind you when you go.

There are three wooden crosses on the right side of the highway.