While volunteering at a church festival this weekend I fell into conversation with a couple of forty something electricians. Both worked for different companies. One was content to keep working and not worry too much about the future. He will never be able to stop working. The other was weighing what to do with his investments now, in the face of the current economic climate.
In addition to his wages, he owns a commercial building that generates revenue. However, that building recently needed a new roof. The day after the roof was installed, two roof top air conditioners were vandalized. When it rains it pours! True, insurance covered the a/c units, but the roof was several thousand dollars out of pocket. "My wife is mad about the expense. It was a big hit. Is it worth the cost?" The answer had to be yes.
Even if the return over the cost of loan servicing and maintenance was a mere 1 or 2%, it was still better money than he would get on savings. Plus, his building was under his control, as were the rents and the tenants. It's not like he had his money in a stock market that rewards "investors" for holding shares when economic news is bad, and punishes them when the news is good. "All hail the Fed for juicing the stock market" is not a wise investment strategy. It is doomed.
I explained my understanding of two opposing economic theorists: the deflationists, who see demographic trends and dormant, unused Fed asset purchase cash sitting in banks causing prices and pricing power for companies to go down, i.e., to deflate; and the inflationists who see "stimulus" leading to the inevitable rejection of paper money leading to a flaming global spending spree making assets skyrocket in the value reflected by that value shedding currency, leading to hyperinflation and finally some new currency. "Well, thanks for the lesson, professor, but what do you do?"
There is little choice. You can only invest in what you believe is true. So you have to bet on the theory you see as most likely, then put most of your eggs in that basket. With the remaining eggs, you hedge by betting on the other side. If you are right, then your hedge goes down a little, and you don't gain as much overall. If you are wrong, then you don't lose everything. It's really the best anyone (other than Goldman Sachs) can do.
I am in the deflation camp. The demographics of the US and the other old, debt burdened economies of Europe point to a slow down in spending and speculative investing that will not stop for another decade or so.
As others have said, and as I have repeated at different times, the U.S.'s economic future is written plainly in the past fifteen years of Japanese history. I think my electrician friend is still scared, but he's thinking better on the subject. So am I.
Tuesday, July 30, 2013
Saturday, July 27, 2013
Honey Boo Boo makes the point
Everyday society may have reached the tipping point. Careful observation reveals that young women and girls (and the occasional pregnant looking man) have determined that leaving the house in cropped tops revealing two inch rolled belts of dimply fat is an acceptable look. Personal pride has been dissolved by a generation of self esteem building and copious amounts of Mountain Dew.
If the health and fitness industry is such a behemoth and Americans idolize the slim and beautiful, how can every fair, festival and crowd be stuffed with so many porcine pedestrians? Fitness is a business, but its product has failed, in a big way. Maybe it's my location in southwest Ohio. The demographics and the pervasive poverty likely have an impact on self image. In New York, Chicago, LA, or any European city there is a notable absence of this phenomenon. So maybe it is about the location.
On the other hand, this depressing effect may be the result of these typically young women growing up being told that fat is fine. That there is nothing wrong with their blatantly awful food choices. That its okay to be "curvy". Ma'am, Beyonce is curvy. Stretch marked sausage belts are not.
Look at Honey Boo Boo, the obese five year old with the grossly outsized mother. This TLC Channel darling started out as a beauty contestant (??) featured on Toddlers and Tiaras. That show is populated by mothers who AS A RULE are outsized and unstable and who spend thousands of dollars hauling their reluctant little dress up dolls (daughters) to popularity contests. These women and their daughters have made many viewers relate. "If they are on TV then it's okay to be big and...unique."
Honey Boo Boo's show just proves the (subtitled) point. American culture has nosedived into a supersized order of fries and a milkshake. But that's okay. We're just big boned.
If the health and fitness industry is such a behemoth and Americans idolize the slim and beautiful, how can every fair, festival and crowd be stuffed with so many porcine pedestrians? Fitness is a business, but its product has failed, in a big way. Maybe it's my location in southwest Ohio. The demographics and the pervasive poverty likely have an impact on self image. In New York, Chicago, LA, or any European city there is a notable absence of this phenomenon. So maybe it is about the location.
On the other hand, this depressing effect may be the result of these typically young women growing up being told that fat is fine. That there is nothing wrong with their blatantly awful food choices. That its okay to be "curvy". Ma'am, Beyonce is curvy. Stretch marked sausage belts are not.
Look at Honey Boo Boo, the obese five year old with the grossly outsized mother. This TLC Channel darling started out as a beauty contestant (??) featured on Toddlers and Tiaras. That show is populated by mothers who AS A RULE are outsized and unstable and who spend thousands of dollars hauling their reluctant little dress up dolls (daughters) to popularity contests. These women and their daughters have made many viewers relate. "If they are on TV then it's okay to be big and...unique."
Honey Boo Boo's show just proves the (subtitled) point. American culture has nosedived into a supersized order of fries and a milkshake. But that's okay. We're just big boned.
Thursday, July 25, 2013
History rhymes. Can you hear it?
40pluscareerguru: Is this 1937 or 1929? This is an insightful comparison of the events and outcomes of the past to the events of the day. I don't agree with the author's solution, but he does put current events in context.
Tuesday, July 23, 2013
Twitter is for crazy people too. Sadly.
Today I got a follow notice in my Twitter account. I usually check the profiles of people who will be following me. I want to follow them back to build my tribe, but I don't want to follow or be followed by people who will only bring me down. I checked the profile of this young lady. She has a face shot and the wallpaper is her, I presume, looking jubilant in a bikini. Attractive.
Her profile said that if you aren't living on the edge, then you are taking up too much space. It also said that there was a fine line between social media and wasting your life. It ended with a one word sentence: Conservative.
Given some of the people I follow (Ricky Gervais, Ellen DeGeneres and John Stewart) and the interests I have, and my background, this tweeter did not seem like a good fit for me. Her most recent tweets were sardonic criticisms of Anthony Wiener and his escapades. He probably deserves it, but nobody is perfect. But such vitriol from this Anne Coulter wannabe. It was too much. I sent her a message telling her that while I thought A. Wiener would like her picture, I thought she would be wasting her life following me. It was a minor play on her tweets and her profile.
She sprung back on me like a cornered badger. Four quick tweets.
She accused me of overcompensating for something, alleged that I had a talent for playing the bongos (is this bad?), suggested I used pot, and then said I had both a "well justified inferiority complex" and an inflated ego. She finished by telling me that the village called and it wanted its idiot back. I responded to that one only with "okay, I'll tell them you're ready." No more insults.
That tirade was not unpredictable. In fact, it seemed likely considering her existing tweets. I am so sad that she then unfollowed me and went back to beating up on Carlos Danger.
Had we been in the same room, would she have gone off like that? No. Probably not. More likely II could have said the same thing, and she'd still be hoping that I would hire her as a secretary, despite her obvious flaws. Twitter is wide open. Anybody can join. Anybody. You can't choose who follows you, but you might want to be choosy about who you follow back. Life is too short for crazy people.
Her profile said that if you aren't living on the edge, then you are taking up too much space. It also said that there was a fine line between social media and wasting your life. It ended with a one word sentence: Conservative.
Given some of the people I follow (Ricky Gervais, Ellen DeGeneres and John Stewart) and the interests I have, and my background, this tweeter did not seem like a good fit for me. Her most recent tweets were sardonic criticisms of Anthony Wiener and his escapades. He probably deserves it, but nobody is perfect. But such vitriol from this Anne Coulter wannabe. It was too much. I sent her a message telling her that while I thought A. Wiener would like her picture, I thought she would be wasting her life following me. It was a minor play on her tweets and her profile.
She sprung back on me like a cornered badger. Four quick tweets.
She accused me of overcompensating for something, alleged that I had a talent for playing the bongos (is this bad?), suggested I used pot, and then said I had both a "well justified inferiority complex" and an inflated ego. She finished by telling me that the village called and it wanted its idiot back. I responded to that one only with "okay, I'll tell them you're ready." No more insults.
That tirade was not unpredictable. In fact, it seemed likely considering her existing tweets. I am so sad that she then unfollowed me and went back to beating up on Carlos Danger.
Had we been in the same room, would she have gone off like that? No. Probably not. More likely II could have said the same thing, and she'd still be hoping that I would hire her as a secretary, despite her obvious flaws. Twitter is wide open. Anybody can join. Anybody. You can't choose who follows you, but you might want to be choosy about who you follow back. Life is too short for crazy people.
Perspective from a heart.
I was married in a big fat Greek wedding. As in the eponymous movie I was not a Greek groom. My wife's immigrant and first generation American family was large and close knit. Lots of cousins, theas (aunts) and theos, but, oddly, no pets. Most owned or worked in restaurants or were lawyers, teachers or business owners. Really a great, fun loving but hard working group.
Now the Greek Orthodox marriage ceremony calls for "koumbara" or spiritual sponsors. They are usually close friends or relatives of the bride and groom and they have a part in the ceremony. Our koumbara were a first cousin and his wife. They are a joyous couple, bubbly, outgoing and very fun to be around.
We have been married for nearly fifteen years now. Our koumbara baptized my first born and she is blessed with these finest of Godparents. Recently though some clouds have darkened the horizon. The husband in that sponsor couple was recently stricken by a viral infection of unknown origin and fearsome effect. It caused him multiple short hospital stays and several weeks off work. It has been an intense and clear reminder that circumstances can change in a heartbeat. Between hospital stays, he recently made his way out to a hot air balloon festival where we chatted. It was good to see him not in hospital bed. He was looking much better.
A couple days later I was feeling very pressured. I was hating the practice of law and feeling the tension caused by several unresolved cases. If asked to describe my state of mind in one word, I'd have said depressed. I called a friend from law school who practices nearby. I wanted him to talk me off the ledge of chucking it all. Turned out he was feeling the same as I! Some help. We laughed and commiserated for a full hour, half that time was while I was with my wife during a lunch break at Subway. She was eating, Facebooking and listening approvingly while I took some friend therapy.
My afternoon improved steadily with my mood. By dinner time all seemed well. Then I got the news that my beloved koumbaro was back in the hospital with a nagging fever. I wished I could talk him better, but that kind of therapy isn't what he needed. My little meltdown, settled with the words of a kind friend, seemed frivolous in this perspective.
Health is precious and irritatingly fragile. Did you know the flu killed millions of Americans in an epidemic in the early 1900s? Millions! The flu! You just don't know. Friendships are also tenuous over time and distance. The good news is that they can last and grow forever with just a little care and feeding. Sadly though, they can disappear with inattention. Best to spend a moment or two, now and then, keeping real friendships, not virtual friendships, but real, "hey let's get a cup of coffee" friendships, alive and well.
We need our friends and we need our health. They are intertwined. I am grateful for the reminders and the lessons, and praying for the health of my koumba. Get well soon. (P.S. Since I first wrote this piece, my koumbaro is out of the hospital and improving nicely.)
Now the Greek Orthodox marriage ceremony calls for "koumbara" or spiritual sponsors. They are usually close friends or relatives of the bride and groom and they have a part in the ceremony. Our koumbara were a first cousin and his wife. They are a joyous couple, bubbly, outgoing and very fun to be around.
We have been married for nearly fifteen years now. Our koumbara baptized my first born and she is blessed with these finest of Godparents. Recently though some clouds have darkened the horizon. The husband in that sponsor couple was recently stricken by a viral infection of unknown origin and fearsome effect. It caused him multiple short hospital stays and several weeks off work. It has been an intense and clear reminder that circumstances can change in a heartbeat. Between hospital stays, he recently made his way out to a hot air balloon festival where we chatted. It was good to see him not in hospital bed. He was looking much better.
A couple days later I was feeling very pressured. I was hating the practice of law and feeling the tension caused by several unresolved cases. If asked to describe my state of mind in one word, I'd have said depressed. I called a friend from law school who practices nearby. I wanted him to talk me off the ledge of chucking it all. Turned out he was feeling the same as I! Some help. We laughed and commiserated for a full hour, half that time was while I was with my wife during a lunch break at Subway. She was eating, Facebooking and listening approvingly while I took some friend therapy.
My afternoon improved steadily with my mood. By dinner time all seemed well. Then I got the news that my beloved koumbaro was back in the hospital with a nagging fever. I wished I could talk him better, but that kind of therapy isn't what he needed. My little meltdown, settled with the words of a kind friend, seemed frivolous in this perspective.
Health is precious and irritatingly fragile. Did you know the flu killed millions of Americans in an epidemic in the early 1900s? Millions! The flu! You just don't know. Friendships are also tenuous over time and distance. The good news is that they can last and grow forever with just a little care and feeding. Sadly though, they can disappear with inattention. Best to spend a moment or two, now and then, keeping real friendships, not virtual friendships, but real, "hey let's get a cup of coffee" friendships, alive and well.
We need our friends and we need our health. They are intertwined. I am grateful for the reminders and the lessons, and praying for the health of my koumba. Get well soon. (P.S. Since I first wrote this piece, my koumbaro is out of the hospital and improving nicely.)
Don't say No. Say YES!
I always start with No. In response to my children, my spouse, others asking for money or time, No. No. No. I regret now my rejection of an opportunity to host a fund raising party for President Obama when he was just Senator Obama. If I had said yes back then, my effort would likely have been paying dividends now. No is a curse.
My reflexive negativity reminds me strongly of Jim Carrey's character in the movie "Yes Man." In that story, he finds that saying no leads to a small and limited life. He goes to a seminar that urges attendees to always say "Yes" and his life turns around. There are some (Midnight run? Yes!) hilarious, negative effects to always saying yes, and the movie goes very far, having him respond positively to even bulletin board want ads, but you get the gist. He finds adventure, closer friendships and yes, he falls in love (with Zooey Deschanel). All of this because he turned positive toward life's abundant opportunities. It is one of my favorite movies and a go-to refresher when I'm feeling down.
Even though I start with no, I usually change my mind and say yes, but that negative first response still makes its way to my lips too often. It tends to make those around me give up on my participation before even asking for it and it weakens the impact of an immediate yes. No is an easy way out of making an effort. It leaves one safe and secure in their status quo. It has zero potential to produce positive results. I almost always regret saying no.
No is risk averse, true, and it is easier. But it returns almost nothing. Nothing but the same old, same old. That's safe and comfortable, but not too adventurous nor likely to lead to bigger things.
Maybe when someone says no to me in the future, I will consider a way to make saying yes more comfortable for them. This should be the plan in place even before asking. I know that I say no a lot, but I am sure trying to make it YES a lot more often. Maybe if I had said yes to the fundraiser request seven years ago, I'd be saying yes to invitations to dine at the White House. Maybe. But I can be sure that saying "No" got me absolutely nothing.
My reflexive negativity reminds me strongly of Jim Carrey's character in the movie "Yes Man." In that story, he finds that saying no leads to a small and limited life. He goes to a seminar that urges attendees to always say "Yes" and his life turns around. There are some (Midnight run? Yes!) hilarious, negative effects to always saying yes, and the movie goes very far, having him respond positively to even bulletin board want ads, but you get the gist. He finds adventure, closer friendships and yes, he falls in love (with Zooey Deschanel). All of this because he turned positive toward life's abundant opportunities. It is one of my favorite movies and a go-to refresher when I'm feeling down.
Even though I start with no, I usually change my mind and say yes, but that negative first response still makes its way to my lips too often. It tends to make those around me give up on my participation before even asking for it and it weakens the impact of an immediate yes. No is an easy way out of making an effort. It leaves one safe and secure in their status quo. It has zero potential to produce positive results. I almost always regret saying no.
No is risk averse, true, and it is easier. But it returns almost nothing. Nothing but the same old, same old. That's safe and comfortable, but not too adventurous nor likely to lead to bigger things.
Maybe when someone says no to me in the future, I will consider a way to make saying yes more comfortable for them. This should be the plan in place even before asking. I know that I say no a lot, but I am sure trying to make it YES a lot more often. Maybe if I had said yes to the fundraiser request seven years ago, I'd be saying yes to invitations to dine at the White House. Maybe. But I can be sure that saying "No" got me absolutely nothing.
Sunday, July 21, 2013
Skipping Church
My wife and children are Greek Orthodox Christians. I just drive them to church, pay the fair share and volunteer at the annual Greek Festivals. Other than my secular duties, I have no skin in that game. I am pretty sure that every religion sprung from a myth about a story rooted in the identical, sole kernel of truth, so I'm not going to sweat the dogma.
As I look around my congregation I see many who seem to share my views. We show up for the same mass every week, dutifully send the kids to Sunday school and take turns staffing the gyro line at the annual food festival.
At this church, God takes the summer off. He comes back after the festival, a week after Labor Day. I like His accommodating schedule. I skipped church today. I promised to work a little extra at the gyro line. Easy penance. I am grateful for the day off and for the time making gyros though. Amen.
As I look around my congregation I see many who seem to share my views. We show up for the same mass every week, dutifully send the kids to Sunday school and take turns staffing the gyro line at the annual food festival.
At this church, God takes the summer off. He comes back after the festival, a week after Labor Day. I like His accommodating schedule. I skipped church today. I promised to work a little extra at the gyro line. Easy penance. I am grateful for the day off and for the time making gyros though. Amen.
Friday, July 19, 2013
Equality for all at the airport
While planning an upcoming family trip to none other than steamy Universal Studios in Florida, I am caused to think of the impending airport gate waiting time. If there is a better place to observe people and behavior, I don't know where it is.
It used to be that air travel was considered special. But that was a long time ago. Well before my time. While I do recall smoking and non smoking sections on airplanes, I do not recall people dressing up to fly.
Air travelers are no longer a special group. Instead, we are all just scrutinized and dehumanized sheeple shuffling to our gates after saying goodbye to our non traveling loved ones at the first security hurdle. If you don't have a boarding pass, then you get no further than the ticketing desks (at American airports that I have been in.)
I have been through security at a Midwestern airport a couple of times in the past few years. Each time I have refused to raise my hands and be irradiated by a guy posted behind a lead wall. I always go rogue and ask for the Fourth Amendment violation treatment. Every time, the same white haired, handlebar mustached gentleman with gentle hands explores for... Heck I don't know what he expects to find. When I show up with my wife and my two kids, he must be expecting at least a Lego figure, but he hasn't found anything yet. He smiles when he does his work on me because each time I go through I hum God Bless America while he probes my pant cuffs, crotch and belt line. He always smiles and asks if I have any questions. I always ask if he is aware that my Constitutional rights are being violated. He always says "no they aren't. Have a good trip." We part ways satisfied that we did what we could.
After the security performance, it's the quick trip to the gate. You don't want to be late, even when you are early, so you go fast. We almost all do. Look around. People in airports rarely saunter. When you are trying to get from gate to gate at a large airport, it does not matter who you are or what you do, or what your problems are at home . The crowds won't part for you because you are rich, or if you are in a hurry. People hurrying to their gates see you as just an obstacle in their path, as much as they appear to be one in yours. It is best to understand that nobody is personally trying to make your trip difficult (except for United's very efficient customer antagonists, they really are trying to make your trip a nightmare). Deepak Chopra says that you should try to remember that people are doing the best that they can with their own level of consciousness. I try to keep that in mind.
Once there, sitting in a gate area reveals people for what they are. Which is to say essentially the same as everyone else. They are tired grandmothers, lawyers and salesmen, families, all speaking innumerable languages, dressed in various garb, often munching on overpriced airport food ($12.00 for a turkey sandwich on wheat?!) while staring into glowing screens of various sizes, interrupting their digital diversions only to case a suspicious glare aimed at the potential luggage thief sitting in an armed vinyl chair two rows over. (Armed chairs! Why?) This observation describes what any traveler will see when they look at any other travelers. Travel, especially air travel, shows that no matter what language we speak, or where we came from or where we are going, that the journey and life itself is mostly the same for all of us.
So try to enjoy the trip, even the wait, and take solace in the fact that you have a great deal in common with every single person you see going from gate to gate, literally and figuratively. Talk to someone sitting nearby. Trust me, they will know what you are talking about when you ask "Can you believe how much they get for a sandwich here?"
It used to be that air travel was considered special. But that was a long time ago. Well before my time. While I do recall smoking and non smoking sections on airplanes, I do not recall people dressing up to fly.
Air travelers are no longer a special group. Instead, we are all just scrutinized and dehumanized sheeple shuffling to our gates after saying goodbye to our non traveling loved ones at the first security hurdle. If you don't have a boarding pass, then you get no further than the ticketing desks (at American airports that I have been in.)
I have been through security at a Midwestern airport a couple of times in the past few years. Each time I have refused to raise my hands and be irradiated by a guy posted behind a lead wall. I always go rogue and ask for the Fourth Amendment violation treatment. Every time, the same white haired, handlebar mustached gentleman with gentle hands explores for... Heck I don't know what he expects to find. When I show up with my wife and my two kids, he must be expecting at least a Lego figure, but he hasn't found anything yet. He smiles when he does his work on me because each time I go through I hum God Bless America while he probes my pant cuffs, crotch and belt line. He always smiles and asks if I have any questions. I always ask if he is aware that my Constitutional rights are being violated. He always says "no they aren't. Have a good trip." We part ways satisfied that we did what we could.
After the security performance, it's the quick trip to the gate. You don't want to be late, even when you are early, so you go fast. We almost all do. Look around. People in airports rarely saunter. When you are trying to get from gate to gate at a large airport, it does not matter who you are or what you do, or what your problems are at home . The crowds won't part for you because you are rich, or if you are in a hurry. People hurrying to their gates see you as just an obstacle in their path, as much as they appear to be one in yours. It is best to understand that nobody is personally trying to make your trip difficult (except for United's very efficient customer antagonists, they really are trying to make your trip a nightmare). Deepak Chopra says that you should try to remember that people are doing the best that they can with their own level of consciousness. I try to keep that in mind.
Once there, sitting in a gate area reveals people for what they are. Which is to say essentially the same as everyone else. They are tired grandmothers, lawyers and salesmen, families, all speaking innumerable languages, dressed in various garb, often munching on overpriced airport food ($12.00 for a turkey sandwich on wheat?!) while staring into glowing screens of various sizes, interrupting their digital diversions only to case a suspicious glare aimed at the potential luggage thief sitting in an armed vinyl chair two rows over. (Armed chairs! Why?) This observation describes what any traveler will see when they look at any other travelers. Travel, especially air travel, shows that no matter what language we speak, or where we came from or where we are going, that the journey and life itself is mostly the same for all of us.
So try to enjoy the trip, even the wait, and take solace in the fact that you have a great deal in common with every single person you see going from gate to gate, literally and figuratively. Talk to someone sitting nearby. Trust me, they will know what you are talking about when you ask "Can you believe how much they get for a sandwich here?"
Saturday, July 13, 2013
No inflation in creativity
As I consider tossing another thought salad for the Internet to consume, I have to wonder, in a world where anyone can publish their writing for all to see, instantly, why isn't writing itself devalued?
In the words of Economics there should be content hyperinflation. Every newly published article, opinion or blog post should devalue every existing publication. But somehow it doesn't work that way. But for blatant plagiarism, every single written utterance is a new addition to the universe. Every new writing imbues copyright on its author, and for good reason.
Every work of authorship, no matter the quality, is a new addition to our collective perception. If it is powerful and insightful, then it might motivate. If it is poor and uninformative, then it may turn us to consider other thoughts. A mediocre blog may do nothing more than satisfy a need for diversion from something more intense.
The act of creating has value too. Every effort instructs in some way. One can only learn so much without doing. As James Altucher points out in his book "Choose Yourself"creativity is like a muscle that needs exercise. And once it's toned, it produces some amazing results. Give it a go. Add something to the world.
In the words of Economics there should be content hyperinflation. Every newly published article, opinion or blog post should devalue every existing publication. But somehow it doesn't work that way. But for blatant plagiarism, every single written utterance is a new addition to the universe. Every new writing imbues copyright on its author, and for good reason.
Every work of authorship, no matter the quality, is a new addition to our collective perception. If it is powerful and insightful, then it might motivate. If it is poor and uninformative, then it may turn us to consider other thoughts. A mediocre blog may do nothing more than satisfy a need for diversion from something more intense.
The act of creating has value too. Every effort instructs in some way. One can only learn so much without doing. As James Altucher points out in his book "Choose Yourself"creativity is like a muscle that needs exercise. And once it's toned, it produces some amazing results. Give it a go. Add something to the world.
Thursday, July 11, 2013
Dog days of July
Like parents of generations before me I cracked under the relentless pressure from my children. Yes, a dog. We adopted Alli from a shelter. She was a puppy in a small litter of four. She might me be a lab mix. There are so many dogs and cats needing homes. It made no sense to buy a pure bred dog for $500 or so. Better to take advantage of the successful genes manifested in our coffee and cream colored mutt. There is enough love in a family to extend to a dog. Even Maria is happy when the dog is around. Her adoption has also led to an increase in the local economy. Dog food, flea collar, bowls, pillow, etcetera. It's a win for everyone nearby. I hope she inspires me to create a marketable item for the pet accessory industry. Ah, dreams.
Wednesday, July 3, 2013
Death by student loan debt
In a recent Twitter discussion I found myself explaining to a fellow that banks, lenders and schools take no risk when lending extraordinary amounts of money to students with no hope of repayment. The other fellow was of the mind that no debt should be dischargeable. That seemed harsh. The Constitution makes provision for bankruptcy. Why? Because even in the late 1700s Americans believed in second chances.
A student loan debt is almost never dischargeable under current bankruptcy statutes. A public company that makes a product that kills people can escape liability for ruined lives and families. A financial firm can lose billions in pension funds stripping security and dignity from desperate retires, and it can escape liability. An 18 19 20 year old kid decides art history is the degree he needs, his parents think (wrongly) that a college degree is a guarantee, and all of a sudden, the financial aid office is helping the kid obligate himself to borrow and pay 30k in tuition - per year. Four years later, with living expenses, books and transportation, the debt is 200k. He can't escape. He will be hounded for life. There are social security recipients suffering student loan garnishment. No joke.
The likelihood of paying that amount back while trying to live, have a family and just pay bills is minimal. If a lender were not guaranteed to be repaid by the government, then it would not lend freely to a person who was going to buy a degree that had limited return potential.
If lenders were more reluctant to lend, because they had to actually manage a risk of non-payment, then schools would have to lower their program prices to the point that their cost matched their value. When there is no risk of loss to the school or the bank, then the sinister incentives to urge debt on students looms large.
There is no moral obligation to provide a college education to every person. It's okay if some kids don't get to go to college. They will be okay. Better for sure if they don't start life as debt slaves.
A student loan debt is almost never dischargeable under current bankruptcy statutes. A public company that makes a product that kills people can escape liability for ruined lives and families. A financial firm can lose billions in pension funds stripping security and dignity from desperate retires, and it can escape liability. An 18 19 20 year old kid decides art history is the degree he needs, his parents think (wrongly) that a college degree is a guarantee, and all of a sudden, the financial aid office is helping the kid obligate himself to borrow and pay 30k in tuition - per year. Four years later, with living expenses, books and transportation, the debt is 200k. He can't escape. He will be hounded for life. There are social security recipients suffering student loan garnishment. No joke.
The likelihood of paying that amount back while trying to live, have a family and just pay bills is minimal. If a lender were not guaranteed to be repaid by the government, then it would not lend freely to a person who was going to buy a degree that had limited return potential.
If lenders were more reluctant to lend, because they had to actually manage a risk of non-payment, then schools would have to lower their program prices to the point that their cost matched their value. When there is no risk of loss to the school or the bank, then the sinister incentives to urge debt on students looms large.
There is no moral obligation to provide a college education to every person. It's okay if some kids don't get to go to college. They will be okay. Better for sure if they don't start life as debt slaves.
Tuesday, July 2, 2013
Fourth of July
Here we are on the cusp of a grand anniversary. 238 years ago the terrorist revolutionaries we call the Founding Fathers, acting under threat of death by the British Royal government , said Enough. In 1776 there was a war on US soil for the future of the American idea. While we have seen amazing technological strides, the government created by the Founding Fathers via The Constitution has reverted to an overreaching, overspending blob of greed, corruption and self preservation.
This is hardly the worst we've had it. In "Team of Rivals", the excellent Lincoln biography, the viciousness of politics and self interest of men (and women) in power is laid bare. People in power are interested almost singularly in remaining in power and in enforcing their will on others.
The cruelty of slavery was ignored by southerners whose livelihood was dependent on dehumanizing for economic gain. Northerners were talking about the immorality of slavery but were probably more concerned with their cost of "free" labor. Who knows or considers these times now? Sadly, it appears that many Americans do not. I am disappointed to no end by the video link here.
Americans fail history
Those who fail to learn from history are doomed to repeat it.
This is hardly the worst we've had it. In "Team of Rivals", the excellent Lincoln biography, the viciousness of politics and self interest of men (and women) in power is laid bare. People in power are interested almost singularly in remaining in power and in enforcing their will on others.
The cruelty of slavery was ignored by southerners whose livelihood was dependent on dehumanizing for economic gain. Northerners were talking about the immorality of slavery but were probably more concerned with their cost of "free" labor. Who knows or considers these times now? Sadly, it appears that many Americans do not. I am disappointed to no end by the video link here.
Americans fail history
Those who fail to learn from history are doomed to repeat it.
Monday, July 1, 2013
AT&T Privacy policy.
What a sad joke AT&T is. Their written, electronic, and spoken communication always refers to you as a valued customer. Even when they are telling you that none of your information is confidential as between you and the company. I just got an email update of the AT&T privacy policy. I actually read it. More accurately it should be called the AT&T Involuntary Dissemination Policy.
There is essentially zero privacy online. AT&T knows which websites you visit while on their network, what services you use, who you call, who you text and who texts you. Then it shares that information with a crowd of recipients. Maybe a crowd is an overstatement on my part, but the language of the Involuntary Dissemination Policy seems able to encompass just about any company or government entity as a potential recipient of information about you.
Big Brother regulates AT&T and other carriers. Big Brother can be renamed "Simon" as in Simon says...
There is essentially zero privacy online. AT&T knows which websites you visit while on their network, what services you use, who you call, who you text and who texts you. Then it shares that information with a crowd of recipients. Maybe a crowd is an overstatement on my part, but the language of the Involuntary Dissemination Policy seems able to encompass just about any company or government entity as a potential recipient of information about you.
Big Brother regulates AT&T and other carriers. Big Brother can be renamed "Simon" as in Simon says...
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