Thursday, February 22, 2007
Thursday, January 11, 2007
Income Inequality: Why you should care
I recently came across a great article written by Charles Wheelan, PhD, Why Income Inequality Matters. I urge you to read it.
Wheelan compares the poverty he recently experienced in Brazil to the $50 million bonuses Wall Street paid out recently. Some fine point in the article are:
1. The income inequality in America has increased between 1970 and 2005 as measured by the Gini coefficient - an index that measures income inequality across nations, where 0 represents perfect equality and 1 represents absolute inequality. The U.S. score jumped from 0.39 to 0.47 between 970 and 2005.
While one can argue about the merits of the coefficient, it would be a useless exercise as this number - while not perfect - is widely accepted as a good measure of income inequality amongst those in academia. Moreover, if there are any other measures that you deem better than this one, please let me know.
2. Our sense of well-being is determined more by our relative wealth than by our absolute wealth. In other words, we care less about how much money we have than we do about how much money we have relative to everyone else. In a fascinating survey, Cornell economist Robert Frank found that a majority of Americans would prefer to earn $100,000 while everyone else earns $85,000, rather than earning $110,000 while everyone else earns $200,000. (Directly quoted from Wheelan).
3. Although the "tournament effect" (i.e. higher salaries not only motivate those who receive them, but also those who hope to receive them) provides a good argument for the rags-to-riches story, many nations such as Brazil, do not have the infrastructural mechanisms to support such paths. In so doing, then, illicit behavior and activities may be encouraged as all hope to share the pie is lost.
A fascinating article, one I strongly encourage you to look at.
Wheelan compares the poverty he recently experienced in Brazil to the $50 million bonuses Wall Street paid out recently. Some fine point in the article are:
1. The income inequality in America has increased between 1970 and 2005 as measured by the Gini coefficient - an index that measures income inequality across nations, where 0 represents perfect equality and 1 represents absolute inequality. The U.S. score jumped from 0.39 to 0.47 between 970 and 2005.
While one can argue about the merits of the coefficient, it would be a useless exercise as this number - while not perfect - is widely accepted as a good measure of income inequality amongst those in academia. Moreover, if there are any other measures that you deem better than this one, please let me know.
2. Our sense of well-being is determined more by our relative wealth than by our absolute wealth. In other words, we care less about how much money we have than we do about how much money we have relative to everyone else. In a fascinating survey, Cornell economist Robert Frank found that a majority of Americans would prefer to earn $100,000 while everyone else earns $85,000, rather than earning $110,000 while everyone else earns $200,000. (Directly quoted from Wheelan).
3. Although the "tournament effect" (i.e. higher salaries not only motivate those who receive them, but also those who hope to receive them) provides a good argument for the rags-to-riches story, many nations such as Brazil, do not have the infrastructural mechanisms to support such paths. In so doing, then, illicit behavior and activities may be encouraged as all hope to share the pie is lost.
A fascinating article, one I strongly encourage you to look at.
Merry 2007!
And so ends the Christmas break, New Year's celebration and a host of other parties. So long 2006 - you brought times of great joy, fascinating challenges, deep sorrow, and even mystery.
Most of all, 2006, you created a historic year for the world's equity indices. I applaud your hard work and thank you for it. As for the rest of us - we were the people who made 2006 what it was - according to Time magazine. We, the people, were Time's Person of the Year. Yay us!
To all my readers: may you have a superb 2007; may it bring you great joys you have not imagined, love you have always wanted, and wisdom you have always lacked!
Most of all, 2006, you created a historic year for the world's equity indices. I applaud your hard work and thank you for it. As for the rest of us - we were the people who made 2006 what it was - according to Time magazine. We, the people, were Time's Person of the Year. Yay us!
To all my readers: may you have a superb 2007; may it bring you great joys you have not imagined, love you have always wanted, and wisdom you have always lacked!
Saturday, December 23, 2006
Tuesday, December 19, 2006
An empty luggage rack
I bought a lottery ticket after several months. I had the feeling today - I knew I was going to win, something at least. So, on my walk back home this evening I purchased a Mega Millions ticket. The winning jackpot: $40M.
Well, here are the results: 9, 32, 37, 42, 48 Mega Ball = 7
My numbers: 1, 8, 16, 20, 46, Mega Ball = 14
In other words, I did not win... a few bucks. I must say, though, that the entertainment of waiting for the winning numbers was worth the cost. By the way, did you know that 50% of the revenue goes to winners, 35% goes to fund government interests in participating states, and 15% is commission for the sellers.
Ah, but what do I care! After all, I ain't never seen a hearse, with a luggage rack.
Well, here are the results: 9, 32, 37, 42, 48 Mega Ball = 7
My numbers: 1, 8, 16, 20, 46, Mega Ball = 14
In other words, I did not win... a few bucks. I must say, though, that the entertainment of waiting for the winning numbers was worth the cost. By the way, did you know that 50% of the revenue goes to winners, 35% goes to fund government interests in participating states, and 15% is commission for the sellers.
Ah, but what do I care! After all, I ain't never seen a hearse, with a luggage rack.
Bragging Rights
About a year ago I blogged about creating technology to create picture searches, i.e. instead of words, search using pictures. See the blog titled "Google This: A Picture" written on Nov 8, 2005.
Somebody listened and now there's a company doing just that - read it here.
Or perhaps I just thought about it after someone else...
Some days I really wish I knew how to program - we'd be at Internet 7.7 by now!
Somebody listened and now there's a company doing just that - read it here.
Or perhaps I just thought about it after someone else...
Some days I really wish I knew how to program - we'd be at Internet 7.7 by now!
Friday, December 15, 2006
Thursday, December 14, 2006
Rebecca St. James
This woman is amazing - just incredible. Professional, extremely talented, a real woman of faith.
I went to her concert last night - it was an absolutely fantastic show.
She was there with Brian Littrell - recognize him? He was one of the Backstreet Boys! "What! A Jayhawk now goes to Backstreet Boys concerts?" You might ask yourself. Brian was there with Rebecca. But, he's incredibly talented as well, and I'd go to his concerts too!
Pictures coming soon!
I went to her concert last night - it was an absolutely fantastic show.
She was there with Brian Littrell - recognize him? He was one of the Backstreet Boys! "What! A Jayhawk now goes to Backstreet Boys concerts?" You might ask yourself. Brian was there with Rebecca. But, he's incredibly talented as well, and I'd go to his concerts too!
Pictures coming soon!
Tuesday, December 12, 2006
A New Breed: Extreme Workers
I recently came across the following article on Marketwatch: "The rise of the 'Extreme Worker'.
I've always believed that America is a great country for many reasons. One of these is that any legal individual has the opportunity to work as hard as they'd like, so long as the work is legitimate. Moreover, there is an incentive to work. Of course, Uncle Sam will take some of your earnings away and progressively more the more you make, but you are still given the opportunity and incentive to work hard. And, the harder you work, the better off you'll be financially.
However, there is a cost to this - as in all things. You're health and social life, for one, may suffer.
Now, there's a new term for people who work over 70 hours a week, must be available at any time of the day or night to serve clients, and hardly take vacation: extreme workers.
Some of the consequences of being an extreme worker include:
1. 46% say family relationships (with spouse and children) are sacrificed.
2. 50% say it makes it impossible to have satisfying sex.
3. Their kids eat too much junk food.
4. Women see it and feel it's all their fault.
5. Women feel there is a direct line between the kids' underachieving in school and the oppressive hours that Mother puts in on the job.
These are just some of the negative social and personal consequences. Of course, there might be positives as well, but what's a life worth living if you can't spend time with your loved ones and, equally, show them that love? After all, I ain't never seen a hearse, with a luggage rack.
So, conclusion:
Resolved that I, a Jayhawk, do not want to live the life of an extreme worker!
I've always believed that America is a great country for many reasons. One of these is that any legal individual has the opportunity to work as hard as they'd like, so long as the work is legitimate. Moreover, there is an incentive to work. Of course, Uncle Sam will take some of your earnings away and progressively more the more you make, but you are still given the opportunity and incentive to work hard. And, the harder you work, the better off you'll be financially.
However, there is a cost to this - as in all things. You're health and social life, for one, may suffer.
Now, there's a new term for people who work over 70 hours a week, must be available at any time of the day or night to serve clients, and hardly take vacation: extreme workers.
Some of the consequences of being an extreme worker include:
1. 46% say family relationships (with spouse and children) are sacrificed.
2. 50% say it makes it impossible to have satisfying sex.
3. Their kids eat too much junk food.
4. Women see it and feel it's all their fault.
5. Women feel there is a direct line between the kids' underachieving in school and the oppressive hours that Mother puts in on the job.
These are just some of the negative social and personal consequences. Of course, there might be positives as well, but what's a life worth living if you can't spend time with your loved ones and, equally, show them that love? After all, I ain't never seen a hearse, with a luggage rack.
So, conclusion:
Resolved that I, a Jayhawk, do not want to live the life of an extreme worker!
Thursday, December 07, 2006
Global Warming = Irrational Hysteria?
http://releases.usnewswire.com/GetRelease.asp?id=77195
Thanks pmf for the above link. First it was the financial markets that were exhibiting "irrational exuberance"; now, it is global warming concerns that are exhibiting "irrational hysteria"!
Either way, cut the carbs (CO2 that is!) - see the article below.
Thanks pmf for the above link. First it was the financial markets that were exhibiting "irrational exuberance"; now, it is global warming concerns that are exhibiting "irrational hysteria"!
Either way, cut the carbs (CO2 that is!) - see the article below.
Monday, December 04, 2006
Discouraged?
Don't give in to discouragement....... If you are discouraged it is a sign of pride because it shows you trust in your own powers. Never bother about people's opinions. Be obedient to truth. For with humble obedience, you will never be disturbed.
-- Blessed Mother Teresa
Thanks Kate for this!
-- Blessed Mother Teresa
Thanks Kate for this!
What is a Place?
One of my many devotees requested that I respond to his comments left on 11/27/2006 at 10:20:00 AM in the now-famous column "Strangers: the Bad, the Ugly, and the Kind":
We now run into greater complexity in the problem of human behavior. The "kind strangers" in Charlotte can partially be explained by the fact that there still exist geographic cultural differences within the United States. Charlotte, though increasing rapidly in size and financial strength, is still a "southern city". As a southern city, filled by at least a plurality of people from a southern culture, manners and common courtesy are more prevalent. DC on the other hand, located on the border of North and South, is a hybrid -- a city of Southern efficiency and Northern hospitality.
My devotee, pmf, makes several interesting points that remind me of a geography class I took in college in which we did nothing but discuss what the word "place" meant for about 8 weeks! While it may appear somewhat strange to discuss a word as simple as 'place' at first, one later realizes that indeed any place is not simply defined by its physical construct at any given moment in time. Instead, there are a plethora of elements that make up a place: the physical, the human, and the interaction between the two are inextricably intertwined. And this leads to both human and physical geographical complexities which are alluded to above such as the cultural differences between two geographically distant locations.
If you are interested in delving into this topic further, I suggest you begin by looking at some of Robert Sack's publications.
By the way, did pmf mean DC is a city of Northern efficiency and Southern hospitality?
We now run into greater complexity in the problem of human behavior. The "kind strangers" in Charlotte can partially be explained by the fact that there still exist geographic cultural differences within the United States. Charlotte, though increasing rapidly in size and financial strength, is still a "southern city". As a southern city, filled by at least a plurality of people from a southern culture, manners and common courtesy are more prevalent. DC on the other hand, located on the border of North and South, is a hybrid -- a city of Southern efficiency and Northern hospitality.
My devotee, pmf, makes several interesting points that remind me of a geography class I took in college in which we did nothing but discuss what the word "place" meant for about 8 weeks! While it may appear somewhat strange to discuss a word as simple as 'place' at first, one later realizes that indeed any place is not simply defined by its physical construct at any given moment in time. Instead, there are a plethora of elements that make up a place: the physical, the human, and the interaction between the two are inextricably intertwined. And this leads to both human and physical geographical complexities which are alluded to above such as the cultural differences between two geographically distant locations.
If you are interested in delving into this topic further, I suggest you begin by looking at some of Robert Sack's publications.
By the way, did pmf mean DC is a city of Northern efficiency and Southern hospitality?
Thursday, November 30, 2006
So what if it's not CO2 - cut it off anyway!
Today I'll take the other side of my last blog and assume that excessive release of carbon dioxide or other greenhouse gases is not the root cause of global warming. Indeed many would argue that this is a fair assumption.
I still believe that it is a good idea to be vigilant of our consumption of fossil fuels and control the amount of CO2 emission. Doing so helps us in at least two ways: reducing foreign dependence on oil and reducing health risks.
I don't live in the Middle-East and do not support being dependent on them. We've all heard the argument and know the implications - depending on others for a resource as vital as crude oil is simply a ticking time-bomb. Rather, if policies encourage the research and the use of alternatives to crude oil, not only does it decrease aggregate demand (and possibly price assuming the cartel does not also cut supply drastically), but it also reduces the emission of CO2 amongst other gases that pose a longer-term health hazard. Have you been to Los Angeles or perhaps seen the air above a major city during the day, for instance during take-off or landing on an airplane? The revolting sight of brown smog will be enough to change your mind on our love affair with burning fossil fuels.
I still believe that it is a good idea to be vigilant of our consumption of fossil fuels and control the amount of CO2 emission. Doing so helps us in at least two ways: reducing foreign dependence on oil and reducing health risks.
I don't live in the Middle-East and do not support being dependent on them. We've all heard the argument and know the implications - depending on others for a resource as vital as crude oil is simply a ticking time-bomb. Rather, if policies encourage the research and the use of alternatives to crude oil, not only does it decrease aggregate demand (and possibly price assuming the cartel does not also cut supply drastically), but it also reduces the emission of CO2 amongst other gases that pose a longer-term health hazard. Have you been to Los Angeles or perhaps seen the air above a major city during the day, for instance during take-off or landing on an airplane? The revolting sight of brown smog will be enough to change your mind on our love affair with burning fossil fuels.
Wednesday, November 29, 2006
Global Warning
Over the past several months, I've come across several articles addressing global warming. Several articles in the recent issues of The Economist and Fast Company - two of my favorites - have discussed the issue at great length. Both magazines have had articles that accept global warming as a reality and encourage policies and practices on a national as well as personal level that may help reduce carbon dioxide emission - the chief cause of global warming.
In particular, I urge you to read "How Many Lightbulbs Does it Take to Change the World? One. And You're Looking At It." that may be accessed here (http://www.fastcompany.com/magazine/108/open_lightbulbs.html).
I came across a short article by Jeremy Siegel (found here) - an economist at the University of Pennsylvania - that sheds more light at the issue and, more importantly, the consequences if global warming continues at currently projected paths. The impacts are devastating to say the least:
The seas could be 10 feet higher in a mere 60 years. Of the five largest cities in the United States (New York, LA, Chicago, Houston, and Philadelphia), only Chicago and... Philadelphia would not be seriously impacted.... And goodbye to New Orleans and trillions of dollars of real estate that lines our coasts. The economic consequences of rising waters would be catastrophic.
(Note: Kansas will not be affected!)
Solving global warming, on the other hand, is no easy feat. But, we've got to start somewhere and the relatively small cost to avoid complete destruction is worth it - call it cost/benefit or risk/reward analysis or whatever else.
Naturally, then, I've come to believe that this is a serious issue and a solution lies in our everyday actions.
In particular, I urge you to read "How Many Lightbulbs Does it Take to Change the World? One. And You're Looking At It." that may be accessed here (http://www.fastcompany.com/magazine/108/open_lightbulbs.html).
I came across a short article by Jeremy Siegel (found here) - an economist at the University of Pennsylvania - that sheds more light at the issue and, more importantly, the consequences if global warming continues at currently projected paths. The impacts are devastating to say the least:
The seas could be 10 feet higher in a mere 60 years. Of the five largest cities in the United States (New York, LA, Chicago, Houston, and Philadelphia), only Chicago and... Philadelphia would not be seriously impacted.... And goodbye to New Orleans and trillions of dollars of real estate that lines our coasts. The economic consequences of rising waters would be catastrophic.
(Note: Kansas will not be affected!)
Solving global warming, on the other hand, is no easy feat. But, we've got to start somewhere and the relatively small cost to avoid complete destruction is worth it - call it cost/benefit or risk/reward analysis or whatever else.
Naturally, then, I've come to believe that this is a serious issue and a solution lies in our everyday actions.
Tuesday, November 21, 2006
Where am I?
Most of you know this by now: I'm engaged! Hence, I'm occupied for now, but will return here later!
By the way, if you own ANN - I feel your pain!
By the way, if you own ANN - I feel your pain!
Saturday, November 04, 2006
Oops, I goofed!
Well, I was off on my ANN analysis. The stock tanked after my posting. Actually, what happened was that it failed to breakthrough and as I had cautioned the RSI was getting into overbought territory. The kicker was the weak retail sales that came in from several chains. That, my friends, is the market for you - a roller coaster ride!
Monday, October 30, 2006
ANN: Breakthrough!
This is a very bullish chart for ANN. Since early July when it made a high above 44, it's had a hard time breaking through the price level, forming a fairly substantial resistance level. The price level was re-tested in mid September only to retrace. Over the past three sessions, we've seen above average volume and some great action today to break above the resistance level. MACD is also very bullish.
So, what should a trader do here?
Set stops and watch this baby carefully. The RSI is approaching overbought levels, but we may get an "over 70 RSI burst" move up... sit tight, this could be a nice long trade.
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