Are we living in a Kleptocracy?

Cpi_2007_map_3 The recent $900,000,000,000 government bail out of financial institutions raises the question here in United States are we now living in a kleptocracy? A kleptocracy is government that extends the personal wealth of the few at the expense of the many. (The word is loaned to us from the Greek with klepto meaning theft (as in kleptomaniac) and cracy meaning governining body (as in bureaucracy)) It does not seem to me that laws get passed anymore unless there is a strong, well funded effort behind them which means someone economic interest is at stake.

In 2007 Transparency International,  an international organizaiton founded in Germany whose mission is to create change towards a world free of corruption, ranks the United States as the 20th least corrupt of a179 nations but behind Switzerland, Hong Kong, New Zealand, Japan, Canada among others. Will the US fare better this year?

Huskerism

Universityofnebraskalincolnlogo_4This morning I had a chance to peruse a promotional brochure from the University of Nebraska. The piece was created to encourage high schoolers to apply to the flagship intuition in the NU system, the University at Lincoln. Even though students there are called Cornhuskers, the brochure was so effective it made me want to attend the University. From it I was able to gather:

  • The weather is always clear and sunny in Nebraska
  • No ugly people attend the University
  • Downtown Lincoln is a happening place, especially for coffee
  • Study areas are  located conveniently close to ice cream
  • I would have a shot at being a Nobel Prize winner

So Literis Dedicata et Omnibus Artibus I say. Let the party begin.

A Big Drop

Stock_market_drop On October 19, 1987 I was working for Cullinet - the first software company to be traded on the NYSE   - the day the Dow went down 22.61%! We were on our way to close some business at Atena and all along the drive we listened on the radio as the average dropped 50 points, 100 points, 250 points. The next day the Dow dropped another 9%. When the dust settled on a percentage basis the loss was 4.5 times as big as Tuesday's.

Naturally we were horrified and feared for our jobs. But Enterprise Software works a little differently than most things and ultimately we were surprised by the turn of events.

Financial Musical Chairs

Understanding the current Financial Crisis is very difficult. Even the insiders I speak with have no real explanations for the melt down American finance has gone through in the last few weeks. In such cases, it is often best to start with the basics. Loans were made to a large number of people who because of some change in their situation - divorce, health problems, or loss of job - can no longer pay back or could never pay back what they borrowed. Now the question is who is going to incur the loss. Everyone involved must have had some suspicion that this would happen. The current financial crisis was caused by their efforts to "manage the risk" and not be left holding the bag when the music stopped. Accelerated by derivatives, this exercise in risk management created an interlocking system of obligations that left everyone exposed. So the answer to who is going incur the loan losses is all of us either though an economic depression or government intervention and though the tax system.  My personal preference would be though government intervention, but that may just be me.

Does Anton Chigurh = Perry Smith?

Capote_poster Over the weekend had the chance to see again the 2005 biographical film about Truman Capote that won Philip Seymour Hoffman the Academy Award for Best Actor. This inspired me to get out my copy of book Capote was working on at the time In Cold Blood. In the film Capote said this book would create a new way of writing. Maybe he never said that or maybe that is not what he meant, but is it just me or is the character Anton Chigurh in Cormac McCarthy's No Country for Old Men based on Capote's Perry Smith?

The Lost Fleet

Lostfleet At the dawn of the age of oil, whale blubber illuminated the homes and streets of America and lubricated the early machinery of the industrial revolution. The United States was once the most important whaling nation. By one estimate we accounted for 70% of the world’s catch. Now Boston Journalist Marc Songini has written a poignant and thought provoking account of the decline of whaling and the people associated with it.

His book, The Lost Fleet, is centered on the fortunes of New Bedford, Massachusetts which was once one the wealthiest cities in 19th century America. The town motto was Lucem Diffundo, “We Light the World”. By 1850 of the 700 or so whalers in the American fleet 80% sailed from the port of New Bedford. As Herman Melville  himself wrote:

The town itself is perhaps the dearest place to live in, in all New England. Nowhere in all America will you find more patrician-like houses; parks and gardens more opulent, than in New Bedford.

Within a few short years political, economic, and ecology changes had destroyed the fleet and delivered a blow to New Bedford which it has never recovered from.

One punch came with the outbreak of the Civil War in 1861. After two ill advised efforts to block Charleston Harbor using New England stone laden whalers, the fleet became a special political target of the Confederate Navy. New Bedford’s fleet was decimated first by the CSS Alabama and later by the CSS Shenandoah.

Ecology also played a major role in ending New Bedford’s prominence. As the over-hunted whales retreated further and further north to escape the fleet’s harpoons, whalers where forced to sail further and further to capture them – in some cases to the waters off Alaska. Two unusually early winters in 1871 and 1876 trapped and wrecked many New Bedford ships in the ice around Point Barrow.

Still, the biggest blow to whaling may have been the least dramatic, when in 1859 the first oil well was drilled in Titusville, Pennsylvania. This shifted the economics of oil, whittling whaling further and further away from profitability.

Yet whaling has cast a very large shadow on the United States in form of the acquisition of Hawaii and Alaska into the Union, one of the greatest American novels Moby Dick, many of its best folk songs, and tattoos. New Bedford was also a hotbed of abolitionism and gave refuge to Frederick Douglass after he escaped from slavery.

With entertaining turns of phrases and memorable characters, Songini captures not only the facts but the sense of the era.

Whaling was a hard, cruel business for men and especially for whales. Today the United States has no whaling industry and it is the national champion of the effort to save them. As we approach the end of the oil age there are many parallels that are worth appreciating and The Lost Fleet is a great book to start considering them.

Duin & Kruidberg Country Estate

Henriettes_castleThe Duin & Kruidberg Country Estate is a castle hotel, restaurant and conference centre, located in the Zuid Kennemerland National Park, close to Haarlem and Amsterdam. It was formed when two country estates, Duin & Berg and Kruidberg, were joined together.

Man on Wire

Man on Wire

Tonight I saw a film with my children that almost bordered on a religious experience for me. It was called Man On Wire. The film is a documentary about Philippe Petit's walk on a cable suspended between the Twin Towers of the New York World Trade Center on August 7, 1974.

Maybe I am just a child of those times, but Petit's adventure seems a non-commercial act of defiance and beauty that is all the more poignant because it will never be repeated.  The film has a religious significance because Petit is drawn to attempt it even before the towers are completed and because he survives the experience, but not unchanged.

The film has won many awards including the Jury Prize and Audience Award at the Sundance Film Festival, the International Audience Award at the Los Angeles Film Festival and the Standard Life Audience Award at the Edinburgh International Film Festival.

Newswar

A while back, PBS ran a documentary about the news business. Called Newswar it was about the institution of the Press during a changing political, technical, and economic time. Part III "What is Happening to the News" I found particularly insightful.

Newspapers and the Internet have a very complex relationship. The documentary made an interesting point that on-line news services like Yahoo are largely dependent on newspapers for content, while other on-line services like Craig's list are undercutting newspapers economic base.

According to Saul David Alinsky: "When written in Chinese, the word crisis is composed of two characters - one represents danger, and the other represents opportunity."

This would certainly seem to be the case for professional journalists where their skills were never in more demand nor the resistance to paying them greater.

Sharpening the Ax

Abraham Lincoln is thought to have said, “If I had 60 minutes to cut down a tree, I would spend 40 minutes sharpening the ax and 20 minutes cutting it down.”  Lincoln also almost cut off a finger chopping wood.

Still sharpening the ax is one of the Steven Covey's 7 Habits* and in the modern age of tools more important than ever. Although I have worked with spreadsheets for many years this blog posting 10 obscure Excel tricks that can expedite common chores by Jeff Davis was very informative. The ten are:

  1. Select all with one click
  2. Copy the formatting of one or more cells and apply them to another cell or range
  3. Preform one-click data mining with AutoFilter
  4. Press [Ctrl]~ to display formulas
  5. Generate a unique list of entries in a column
  6. Let Excel calculate your subtotals for you
  7. Analyze selections with the AutoCalculate menu
  8. Love your [Ctrl] key - for three reasons
  9. Transpose data from row to column
  10. Convert calculations to literal values

The only one I knew about before reading Davis's posting  was number 10 so this posting was well worth reading and my recommendation for anyone who works occasionally or regularly with Excel is to take a look.

* 7 Habits of Highly Effective People

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