The Weekend of my Discontent

The Browns beat the Bengals. McCain, in my humble opinion, slightly edged out Obama in the debate, but that actually equates to a win for Obama. And the bailout seems to be coming of age, with both candidates supporting it. Palin found love for Obama in Philly, drawing the ire of her colleague, Senator McCain. She's fit to be dismissed. Enough people did enough bad things this weekend to warrant this latest entry. And so my discontent continues.

First, let's start with the gridiron mayhem. Our poor Bengals, who at 0-3 needed a win. A big win. I'm a huge fan of quarterback Ryan Fitzpatrick, the second stringer from Harvard. He's gutsy, is not afraid of running, and showed it today by leading the team in rushing. He's certainly no Sarah Palin. He stepped into the role of leadership without revealing his limited experience. Ah, so he did throw an interception. We are all allowed a bad Philly cheesesteak now and then, right? Alas, the Bengals lost, capping off a rather somber weekend.

Second, and I think appropriate next topic, Sarah Palin. She has once again undermined her team by speaking the truly offensive: Obama's words. And without missing a beat, Senator McCain retracted what she said. I find myself an independent of sorts, which is really an excuse to be able to piss anyone off, but I must say that the Palin/McCain camp blew it. Sorry, did I just say Palin/McCain? As if he didn't have enough problems, retracting strong and courageous policy statements, even those that border on logical, just doesn't make sense. Senator McCain, you have made a mistake by allowing your team to select Governor Palin. And by the way, you unfortunately have to give her the ball every once and a while and let her run with it. That's what you signed up for in this election.

Third, the bailout seems to be in the offing. The pundits, even those that are generally against this plan, acknowledge that it must be done or terrible things will happen. As I have stated here before, let those things happen. Our free market and our republic depend on government staying the hell out of our business. Specifically, government need not craft a welfare state, whether it be in the pursuit of upholding those individuals that are less fortunate, voluntarily or involuntarily, and those corporations that have crawled up into the fetal position in the corner. It bodes of more governmental intervention and less delegation of responsibility to the people. Teach the men and women to fish. Don't just give them the fish, damn it!

Whew! Finally, the debate was an interesting mix of Harvard snobbery and articulation, strong-willed one liners, and courteous respect. Obama's cool and calm exterior, coupled with his speaking abilities, painted him as the junior Geek from Illinois. I thought that McCain was better prepared than I imagined he would be, and used the theme of inexperience to his advantage. Let's face it, folks. Obama is inexperienced. There's no arguing it. But what got me was the courtesy that Obama showed McCain several times throughout the sparring. At first, I thought it was a bit of a low point. Obama was not forceful enough. He didn't parry as often and as strongly as he has in the past. In hindsight, don't we have enough sparring, fighting, and war on the global stage to last a lifetime or two? Don't we need leadership that will stay the course in providing protection and (some) oversight, but also someone who will, when the time comes, let others speak and work to resolve issues through more diplomatic, and perhaps less expensive, channels?

So, my fellow Americans, my weekend of discontent has left me with a broken nose from the gridiron, a broken rib from the laughter invoked by Palin/McCain, a broken wallet with a slow leak thanks to Capitol Hill, and a strange sense that no one is in control and, worse yet, that no one is fit to take control.

With that, I bid you a good Sunday night and do sleep tight. Most of all, be thankful for what you have, take only what you need, and work diligently for peace. I shall try to do the same.

The Economics of Fast Times

Incredibly, the earth spins at the same rate every day, and we make up for the 4-minute shortfall every 4 years. Undeniably, people do not move at the same speed, have the same countenance, or desire the same results in the time that it takes the earth to rotate about its axis.

The hard won lesson is the economics of fast times. We cannot move faster, or perhaps beyond, the sum of our income and net wealth. So we were lead to believe. And even though most of us have taken at least high school mathematics, we believed this notion that you could overcome the natural mathematics and achieve fast times with little or no downstream, negative impact. We believed that in fact it was okay to take out a loan that was greater than the underlying value of the real estate and the improvement, be it currently standing or proposed. We demanded faster even still. Let's take that out to 40 years versus 30 years. So, the deed is done. The river has now overflowed its banks.

Also, the economics of fast times suggests that every dollar beyond the limit (the sum of income and net wealth) has to be repaid at some sum greater than the amount by which we surpassed the limit. Interest, additional financing costs, and potentially even loss of equity play into this. But, that was never supposed to happen. Real estate is a fixed commodity, with only so much of it left. We cannot, technically, create more real estate. The value has to continue to rise. But how far should it rise? No farther than the lowest yield (interest rate) will allow. In my opinion, housing prices are very similar to bond prices, which are inversely related to bond yields. As the yield goes up, the price comes down.

Ah! The economics of fast times also catches us in its snare outside of our homes. Our cars, our manicured lawns, and our expensive habits. Prices rise, and, according to our central bank, rates should indeed rise to curtail inflation. Oh, but I have an adjustable rate mortgage. Rates (yields) rise and prices fall. What, pray tell, is the cure?

As you would have expected, and by the very nature that I don't wield a Harvard MBA, it is a very simple answer. The economics of slow times. We have ingested all we can hope to devour and ultimately we will have to purge ourselves of it. What will this ultimately lead to for you and me? Learning, I hope. Understanding the nature of people is really is what is at the heart of this meltdown. Capitalism is often called out as the ruthless, unrelenting monster in this tale. I give its detractors some credit if they only would add the phrase "and greed" after the term. I don't believe that capitalism by itself is the pensioner's executioner. It is the greed we have assigned to it that catapulted us into these most recent fast times. Our understanding, and admitting to it, will help us to see clearly what it is that is a matter and find reason before spending in the next cycle.

The Morning Before

Just some quick thoughts here on the morning before one of the most important political debates of our generation. Whether you are a Democrat, a Republican, or of another political persuasion, it is important you realize that that this debate occur. The political process, regardless of how jaded we are by it, must continue with all its vigor. Regardless of the economic woes we face, this debate must continue. Also, regardless of affiliation, truly consider why Senator McCain suggested the delay. Look deep in your hearts and search your mind. I do believe it was to bring presidential politics onto the economic battleground and to put off the inevitable: a confrontation with an opponent that is more articulate and photogenic.

Well, that's all good and well. I certainly understand that articulation and good looks doth not make a good president. Is Obama the better choice? More experienced? Better able to lead? I truly don't know. From where I sit, it is not about the person but more so about the institution itself that needs to be reformed.

But why not let free politics reign? We keep speaking of free markets and the free press. So, Oxford, MS., let us hope that you have the opportunity to play hosts and hostesses to this evening's political supper. Let us also hope there is more than one guest at the table.

The Day After

It's apropos that I write my first blog post the day after Senator John McCain declared defeat. Yes, that's right. In his supposed innocent move to defer the debate and to divert attention to the real problem, our economy, he has all but resigned himself to concession. Ladies and gentlemen, the real problem is not the economy. The real problem is us. We are the enemy. We have a society and a government out of control.

Why is it apropos? Well, truly, there is no other moment in recent political campaign history that stands witness to such a foolish move. This has finally sent me hurdling headfirst into the blog torrent. It's indecent and I must call him on it.

It is also apropos because the government, the media, and the people themselves refuse to grapple with the true crux of the problem. The true problem, of which I am party to, is that we have bloody lost control. We have lost control of government. It is awash in money and fringe benefits that clearly cloud judgement. Media is simply not as qualified as it once was in reporting the facts. Just give me the facts, man. Finally, we, the PEOPLE, have taken freewill to an all time frenzy.

The enemy is truly us.

First, let's consider our government, which, by the way, is a republic and not a democracy. If I hear democracy one more time, I'll "have to barf up a lung." Anyway, I spoke with a colleague today who insisted we should completely abandon term limits. Friends, this is completely ridiculous. His reasoning was that the lame duck nature of the presidency disqualifies the person in office from doing anything in his or her second term. The presidency was meant to be limited in the number of terms to keep power from accruing to one single individual for a inordinate amount of time. Though it is unlikely we will return to the imperialist rule that dominated the world less than 100 years ago, we must keep power in check. We must add term limits to the Congress. It is long overdue. Career politicians are like whores in an Old West saloon - drinking liquor, gambling, and well, whoring. Deliberate the facts, represent us in the clutch, and make the tough decisions based on what is right - what the politician believes is right.

Second, the media is equally out of control. They have become the entertainment. They are the center of their own storm. The phrase "fair and balanced" was created by marketers based on focus groups and survey data. You must consider yourselves as servants of the truth and not the creators of hegemony. You are neither the leaders or the followers. Another "-er" word comes to mind. You are reporters.

Finally, the people are squarely to blame. Whether they are people on Wall Street or people on Main Street. The excesses, again which I am party to, have completely transformed our society into a band of Bedouins, searching for the next one-day sale, the best rate on the house, and the flashiest ride we can find. Who cares? What about mathematics? Science? The arts? Education? Ah yes, education. This is fundamentally where the United States needs to make the most headway and it is the primary battlefield upon which the war will be won. We have all but turned over education to the PC. In 3rd grade, my daughter has a calculator? Why? My guess is that others the world over, particularly Asian children in Asian countries, add it up green - no calculator and no batteries - only brain power. With education slipping, wealth has continued to rise. And now we know why. It is artificial. We have outpaced our actual intellectual and productive capacity by borrowing against future generations' prosperity. Shameful.

So, on this day after, do sleep tight. Do wish John McCain well in the debate, which, God willing, will occur. Pray this bailout works, because it, in its most fundamental form, undermines our way of life and sets us in motion towards more irrational actions. Most of all, be thankful for what you have, take only what you need, and work diligently for peace. I shall try to do the same.