Archive for October, 2009
Simple Solutions to Big Problems
Alexander the Great cutting the Gordian Knot
Many problems society faces are very important, and therefore thought to be complex. To meet the challenge, large intricate responses are intuitively thought necessary. Interestingly many big problems have simple solutions.
One such large problem is the budget deficits America runs almost every year.
I want it known right off the bat that I am strongly against eliminating all of our national debt. That would be a disaster. However, I am most definitely in favor of balancing the budget. The reason America needs debt….is because that debt has another name…. the Treasury market.
The White House vs Fox “News”
First they came for the communists, and I did not speak out—because I was not a communist;
Then they came for the socialists, and I did not speak out—because I was not a socialist;
Then they came for the trade unionists, and I did not speak out—because I was not a trade unionist;
Then they came for the Jews, and I did not speak out—because I was not a Jew;
Then they came for me—and there was no one left to speak out for me. Pastor Martin Niemoller
The Obama White House has been in a sort of war with Fox News. First Press Secretary Gibbs attacked Fox. Then Communications Director Dunn attacked Fox. Next Obama’s top advisor David Axelrod attacked Fox. Even the White House blog is being used to attack Fox.
In a word, the White House has been trying to ostracize Fox. By “ostracize”, I am referring to the procedure under the ancient Athenian democracy in which a prominent citizen could be expelled from the city-state of Athens for ten years.
Bringing the “war” to an even more pitched level, a week ago Sunday the President made available to the network pool for interview Executive Pay Czar Ken Fineberg. However, the White House specified that all members of the pool were welcome except for Fox. The network pool consists of ABC, NBC, CBS, CNN and Fox.
Demanding the Best for our Children
William Sanders developed Value Added
Jack Welsh, legendary CEO of General Electric, preached that in order for organizations to maximize their efficiency they needed to annually cut the bottom performing 10% of their employees. Whether or not he is correct, and although that philosophy seems awfully harsh, there is no denying that “dead weight” in a company disproportionately diminishes the workplace. People are people. A few are stars, most are very solid, and some are incompetent, lazy or uninterested.
In the case of union workers, the inability to fire the poorest performing workers means a cumulatively higher number of them eventually fall into the unsatisfactory category. When that happens to a business, productivity and profits suffer. When that happens to education, an unforgivable outrage takes place.
The fact is that teachers unions are designed to help the most incompetent of their members keep their job regardless of performance. That reality works to the strong disadvantage of student education. In the words of Al Shanker, former president of the American Federation of Teachers “I don’t represent the children, I represent the teachers.
Stealing with $1,300,000,000 in the Bank
Last week federal authorities arrested Gallion hedge fund owner Raj Rajaratnam. Mr. Raharatnam is ranked by Forbes as the 559th wealthiest person in the world. He has been charged with illegal insider trading that resulted in $20 million of gains. Obviously Mr. Raharatnam already owned or could buy all the things that he wanted. The question that jumps to mind is……why bother stealing money when the amount to be gained will have no impact on your life whatsoever?
This led me to contemplate money in general and ask the question…..what is money to me? Is it just pieces of paper? Is it a representative store of value? Is it “the root of all evil”?
Back when I was a rookie working for Smith Barney, my branch manager said to me “money was how adults keep score.” He went on to explain that when I was a kid, sports was a method I might have used to keep score. Later in high school and college, grades might have been the tool I used to keep score. However as an adult, most people end up keeping score with money. It was a logical explanation, certainly when considering it came from someone trying to motivate me to generate an ever increasing “higher score”.
Dinner and the Great Person Theory of History
Being swept by the tides
Years ago I read the 1863 novel War and Peace. It is an amazing book that speaks to events at the time of Napoleon’s invasion of Russia; as witnessed by various aristocratic Russian families. At one point during the book, Tolstoy spends considerable time explaining how history is like a river….and that the river of history sweeps leaders and commoners along in its strong current. He explains how large scale historical events are beyond control and are in some ways, almost predetermined.
Personally I am more of a believer in free will. Although there obviously are strong currents sweeping us along, I believe individuals have a strong say in both influencing and determining events. Thus I am more in the camp of Thomas Carlyle, who believed that the history we read is to some extent the “biography of great men”. By “great men” Carlyle meant those people able to influence decisions made at various inflection points during important moments in time.
Do Noble intentions warrant a Nobel Prize?
Teddy Roosevelt won the 1906 Nobel Prize for mediating a peace treaty between Russia and Japan
Upon learning that he had just won the 2009 Nobel Peace Prize, Barack Obama did exactly the same thing I would have done. Announced that he didn’t deserve it…. but humbly accepted the award.
The Los Angeles Times reacted to the announcement of the prize by saying “the Nobel committee didn’t just embarrass Obama, it diminished the credibility of the prize itself because other political leaders received the prize for real accomplishments.” I have to agree.
However, the LA Times showed their ultimate colors when they praised in the same editorial the 1973 Nobel Peace Prize that was awarded to Henry Kissinger and Le Duc Tho for “a peace agreement that ultimately went awry, but at least there was an agreement.”
I find the whole concept of applause for effort, or good intentions, or happy thoughts….or agreement for agreement’s sake to be counterproductive. As my mother used to say, “hope is not a strategy”.
My Greatest Trade: It’s About Leadership
USC Football Coach Pete Carroll
Being that I’m a former Wall Street financial consultant and institutional salesman, you might be surprised by what I consider my greatest all-time trade. While I wish I could say it was the time I sold stocks and bought treasuries just before the 1987 crash….or bought Microsoft/Google on the IPO ….my all-time best trade has nothing to do with making money. However, it does have to do with something I’m passionate about.
When the Oakland Raiders moved to Los Angeles in 1982, the fascination I had with this unusual team led me to become an avid fan. They had a renegade slogan, (“just win baby”), a fun and open style of play, a history of swashbuckling independent minded players, and an animated following of fans. Every Sunday I religiously watched their games when televised by the networks, or went to a local bar with a satellite dish so I didn’t miss out on the action. I was a season ticket holder for the final three years they played in Los Angeles. When the team moved back to Oakland in 1995, I even flew up for 5 of their 8 home games.
QWERTY and the Historical Accident of Employer Paid Healthcare Insurance
Have you ever wondered why your company’s group health insurance plan covers morbid obesity treatment, or smoking cessation, or in-vitro fertilization? And….have you ever wondered why your employer pays for your health insurance but not your car insurance or property insurance? The reason has partly to do with the historical incidents of how health insurance developed through the years.
During World War II the American government initiated a freeze on wages. That meant employers had difficulty competing for workers. Unable by law to attract workers by paying more, businesses improved their benefit packages, adding healthcare during the war as a way to attract more employees. Prodded by strong unions just after the war, comprehensive employer healthcare package became essential to attract workers in the post war years. Thus was born the concept of your employer paying for your health insurance.
Roman Polanski: Lights, Camera…..action
Polish/French movie Director Roman Polanski was arrested last week in Switzerland in connection with a 1977 statutory rape case in which he pleaded guilty. American authorities are currently trying to extradite Mr. Polanski. Polanski fled the U.S. in January 1978 so as to avoid additional prison time. He is the director of such classic movies as the horror film Rosemary’s Baby and the brilliant noir Chinatown. Tragically, Polanski’s first wife, Sharon Tate, was 8 ½ months pregnant when murdered in 1969 by followers of Charles Manson.
Over 130 Hollywood luminaries, including the likes of Martin Scorcese, David Lynch and Woody Allen have signed a petition protesting Polanski’s arrest and demanding his release.
Email
RSS