Five short minutes containing audio of the late comedian Bill Hicks, video of Carl Sagan, and some Hendrix against a down-tempo, ambient dub music backdrop. Enjoy.
The game is to find out what you already are.
Today, the New York Post ran a story that simply mystified me. It was entitled, “Samaritan Trucker Fired” and tells the story of a man named John Acheson who was fired from his job at Sid Wainer and Son a Massachusetts based specialty food purveyor, for essentially being a good samaritan.
According to the news report:
1. On August 4, Mr. Acheson witnessed a fatal shooting and was delayed after assisting the NYPD in tracking down four suspects in the shooting; and
2. On August 19, Mr. Acheson witnessed a woman strike a livery driver with a hammer and flee. He called 911, chased the woman into an alley and assisted police in arresting her.
3. On August 20, Mr. Acheson was fired from Sid Wainer and Son. His boss (who is unidentified in the story) is quoted as saying, “John, I gotta let you go. You don’t know how to mind your own business”
Simply astonishing.
I’m not sure the founder, Sid Wainer, would’ve approved of Mr. Acheson’s firing. According to the company website, Sid Wainer’s “code of ethics, his strength of character and his resolve to be a positive influence on all those around him” were ideas and concepts Sid Wainer taught his son and current President, Dr. Henry Wainer.
I’m not beating up on Sid Wainer and Son the company, I just think they missed a heck of a marketing and publicity opportunity by not parading the courage of one of their own in the media. They also missed a great human resources potentiality. In an industry where it is difficult to find quality help (truck drivers), Mr. Acheson could’ve become a symbol of “the type of quality employees the company hires”, and used that good-will to attract more and new employees.
Listen, any company that has it’s roots in the depression-era (it opened in 1914) that survives today has my awe and well-wishes, but unless there’s something to Mr. Acheson’s story as reported that we don’t know, they blew it on this one.
That being said, I believe Mr. Acheson has the opportunity to parlay this unfortunate situation into something better for himself. It is obvious that he is special in some way. Perhaps these incidents were cosmic tests of some sort. Perhaps he should consider driving for a paramedical organization or a hospital. This would fulfill his obvious need to assist others in distress and plays to his vocational skillset. Perhaps in doing so, if he has the smarts for it, it will lead him to a career in medicine, or as an EMT.
It is obvious to me that Mr. Acheson is meant for something more. I hope he realizes it too.
“Ursus Head” would make a great name for a garage band, wouldn’t it? The name’s from a small cape located in the bucolic Kenai Peninsula, near Iniskin and Pile Bay Village in southcentral Alaska. (If you click on the link, “zoom out” about 8-10 times and click on the “satellite” button for full effect!) It’s where I’d be right now if I had my druthers…
For those of you who have been wondering as to my whereabouts, I offer (in my own defense) a quick update on the progress of my studies:
1. I’ve passed 3 of the 5 Certified Risk Manager (”CRM“) certification exams, and am awaiting for the results of my third examination. Based upon the timing of the required courses, certification completion should be achieved in the first quarter of 2009. Each course is 20 hours of intensive instruction followed by a 2 1/2 hour short answer, essay examination. These institutes are by far the most rigorous and doing well on the exams requires the most thorough and complete understanding of risk management concepts. The CRM material also provides the most useful “real-world” information and is pretty much all hands-on. Insidiously, I like these courses the most!
2. As of November 1, 2008 I’ve passed all 3 of the Associate in Risk Management (”ARM“) certification exams and now am authorized to use the ARM designation. Each part of the material is tied to a 400 - 500 page academic text for which proficiency in the material is required to pass. While you can (theoretically) take classes on the material, I did this certification completely self-study. It’s heavy on theory, which is why I can’t get too excited about most of the material. That being said, it’s fundamentally a good thing to explore and understand the theoretical underpinnings of risk management and is a great adjunct to the CRM material. However, being exposed to both the CRM and ARM material at the same time, the ARM material alone feels incomplete.
3. I’ve passed 3 of the 5 Certified School Risk Managers (”CSRM“) certification exams and based on the timing of the remaining required courses and exams, the time frame for completion of this certification is the 1st quarter, 2009. I usually get the question, “Why school risk management?” Because it’s entree into the issues and complexities of public entities. As compared to for profit enterprises, public entities have vastly different capitalization issues and legal liability exposures which affect risk control activities and risk financing options. So basically, I want to take what I learn about school risk management and apply the concepts to other disciplines- doing this forms the basis of the sparks of creativity!
So, assuming all goes well on the timing outlined above, there’s a bit more education I have planned for myself. The “ARM-P” designation is the “Associate in Risk Management for Public Entities” designation and is earned by completing one additional course/exam in addition to the ARM material. Late 2008 is my planned completion date for this certification. UPDATE: Got it and am currently waiting for my diploma!
Reaching out to more traditional educators, New York University has 2 risk management programs I’ve found of particular interest: one is a “Certificate in Financial Risk Management” program and the other is a “Graduate Certificate in Enterprise Risk Management” program. Both provide the “meaty” risk management graduate level material I’m looking for without having to suffer through the entirety and hellacious expense of a “formal” MBA program.
The only remaining question is what I’ll wind up doing with all this… Till next time, enjoy what’s left of the summer!
UPDATED RESULTS AS OF 12/6/08.
To borrow from Nancy Sinatra (of “These boots were made for walking” fame), “These times were made for new business startups!” It’s absolutely true: Ironically, times of economic slowdown are some of the best times for starting up a new business. I know it sounds counter-intuitive, but let me make my case with the following “big-picture” points:
If we accept the premise that business and economies have predictable cycles, then the above should be “obvious”. Right now, our economy and businesses in general are in “contraction mode” and we are struggling through a very difficult time of burning off the excesses that were “built up” over the last 6-7 years. Despite what you hear in the media, it’s not only normal, but a good thing for us all. This process thins out weakened competitors and strengthens those companies that are and have been managed well. It positions our economy for the next cycle of expansion, which brings us the goods and services we want and need at competitive price points.
Which brings me to point number one above. New businesses can take advantage of weaker competitors and those that are ill positioned for growth going forward in the near-term. They do not suffer from excess “weight”, baggage or balance sheet deterioration. They are nimble and can act fast and react smartly to the current economic reality. They do not fear losing market share.
Point number two: Wow, are people scared about their future, their jobs, etc. I think it would be more fascinating to explore what people *weren’t* afraid of! This mindset can be advantageously by the new business owner. Those owners that can foster a sense of security for their employees will have fruits of their efforts returned several fold over time. Right now, not only is talent easier to find, but it costs less. A win/win for the business owner.
Point number three: Vendors of all types (all other businesses that are not your direct competitors) are weakened by a one-two punch of loss of quality business and bad debt write-downs. Those new businesses that can establish a good working relationship with their vendors quickly will reap the rewards long term. Remember, good “terms” from your vendors are not necessarily just financial, they can (and should) be on the service side as well. A vendor may well pay better attention to a new business relationship where future growth potential lies than a long-standing one that is stagnant.
Point number four: Office space is *cheap* and a properly constructed lease can be written to provide the new business with not only a very low initial rental cost (relative to a few years ago), but can (and should) take into consideration at least a five year rental plan. I personally prefer a one year lease with 4 successive one-year renewal options, for a total of 5 years. This way you are locking in a lease cost lower than market average rates, but not locking yourself into the space should it no longer meet your needs. Oh, and one more thing: no personal guarantees! If the landlord insists on a personal guarantee, find other space.
Point number five: I love a good bargain. I can’t remember a time when so much technology can be purchased for so few dollars. Whether it’s computer equipment, office equipment, office tables, chairs, cabinets, etc., deals can be found as companies liquidate to generate cash. Setting up the infrastructure for your new business will cost you far less today than it would’ve just 2 years ago.
So, anyone got any good ideas on our next new business?
People tend to see the world in a “half-empty” way, tending to focus on the negative rather than the positive. I suppose that’s just a human nature thing and it’s not going away anytime soon. And we’ve all got good reason to feel this way right now: we’re in a political and financial malaise and if you listen to most of our major media outlets, America is “in decline” and not relevant in the 21st century, in essence “talking us out” of recovery.
Quite frankly, it’s easy to see their “point” as there are many signposts indicating decline:
…among other things….
I submit to you that while the threats are grave, we hold the keys to our own recovery and prosperity. That doesn’t mean it will be easy; quite the contrary, it will be hard. It will be hard to fix the problems that our parents left us with and that we ourselves helped create. It will be painful to “fix” our broken systems be they governmental, health, economic, or energy. In some cases, the broken system will not be able to fixed, it will have to be scrapped. The pain will be broad-based, but since I live in the real world, I know that some will feel the pain more than others.
But I don’t subscribe to the theory that our problems are insurmountable. I’m not willing to give up that ghost yet. It’s true that we as a society will be forced to change, and it will change. Our economy will change. Our government will change.
To turn a phrase from a well-known song, what the world needs now is not love, it’s courage. Courage to make the hard decisions about what we want our future to look like and then the courage to face the trials and consequences of our decisions. Indecision is not an option, as there are grave consequences for indecision.
Perhaps most of all, our expectations will need to change. The general sense of “entitlement” we exude must (and will) erode. We are not “entitled” to anything in this world, except for those rights prior generations fought overwhelming tyrannical forces for. Those same rights, quite frankly, we have begun to take for granted.
I’m sure it’s been a long time (or maybe the first time), so go read our Bill of Rights and thank a vet.
We have limited time on this earth and some of us see fewer years than others.
It’s comforting to know that no matter the “anguish of the moment” we are going through and how insurmountable it all appears, this too shall pass. But it’s also a warning when the inverse of that proposition is analyzed: No matter how *well* things are going at the moment, no matter our glory, no matter our earthly status, this too shall pass. It’s how we balance these two “swings of the pendulum” that creates the tapestry of our lives.
You have a choice. It is obvious and distinct. You can either choose to create chaos in your life and in the lives of others, or you can create harmony for yourself and in the lives of others. This is no tree-hugging hippie-crap, it’s the nature of the universe.
It takes as much effort and energy to act selfishly as it does to act selflessly. Nature abhors a vaccuum: If you do not choose to act on your own accord and create a harmonious reality for yourself and those around you, others will define you by your inaction and you’ll likely be cheated out of great joy.
We live in a universe of creative destruction. If Einstein is right (and science has yet to prove him wrong), then matter and energy cannot be destroyed, only converted from one form to another. This reality is temporal and we need to consider the effect of our choices when building a life. A positive change needs to be made today in order to “live the benefit” tomorrow.
No one ever regrets being nice. No one ever regrets feeling genuine empathy for others. Being nice does not make you an idiot nor does it indicate that you need medical attention or pharmaceutical aid. But most people are afraid to drop pretenses, because they believe it gives them power- power over others and others’ circumstances.
You can buy into that load of manure if you want, or you can smile knowingly and opt yourself out. It’s all a facade and one day it all evens out. This is evidenced by the fact that the hearse is never followed by the armored car.
If you’re concerned about your place in the world, change it. God (or whatever deity, higher power or “source” you believe in) does not take cash, checks or credit cards. And for those of you who believe in “nothing” or “an absence of anything”, this must also logically be true.
Have you been to the grocery store lately? Erosion of the value of the dollar is not only present in the increase in the cost of energy, but also in the dramatic increase in the cost of our basic family food needs since late last year, as our economy started to unwind.
Like almost everyone I know, I’m trying to stretch the value of every dollar available. I’m still a net buyer of equities as my investment policy statement dictates- while most are unnerved (panicking?) by the gyrations of the stock market, I believe that our current economic slowdown is *temporary* and not representative of a systemic breakdown. But my family cannot eat future stock market performance today.
So I’ve been considering taking some short-term emergency fund savings (where we’re earning about 2.25% annual yield and losing money after the effects of inflation) and stocking up on non-perishable food and related supplies as a hedge against what is reasonable to expect: higher prices tomorrow.
It’s not a grand plan, but today every little bit counts; and it’s less about “math” and more about logic: The idea is based on the premise that I *expect* food prices to increase at a rate greater than 2.25% over the short-term. There’s limited downside if I’m wrong:
We’ll always use the toilet paper.
P.S.: Remember, there’s more literary goodness to read on the main page here.
This post marks the end of my trilogy of modest proposals dealing with our oil dependency.
This morning I was reading new forum posts on brokeroutpost.com. This website is a for mortgage professionals - it’s very enlightening to see the mortgage crisis from the mortgage broker perspective.
One of the forum posts was on the topic of the prices of gasoline at the pump around the country: As expected, prices ranged from $3.75 to well over $4.50. The posts then drifted to alternative fuel sources: veggie oil, plug-in hybrids, etc.
Then, one of the posters calling himself “neo-logic” chimes in with the following suggestion: “Someone should make a car that runs on b.u.l.l.s.h.i.t. That’s a renewable resource.”
True dat!
It’s been a while since we’ve added a new state to the union (Hawaii in August, 1959). Lately I’ve begun to think that maybe we should start thinking about the political process of adding Iraq as our 51st state. Let me plainly state my case:
1. It would solve the “pesky” and on-going problem of the Iraqi’s having to set up their own government.
Our military leaders tell us that Iraq suffers from *political* issues, and not necessarily military ones, which is why we have to stay there “for the forseeable future” (Which I think we can loosely translate to 50-60 years, like Germany and Japan, places we still maintain a military presence after WWII). Well, we can fix this problem: our constitution has worked well for us for over 200 years, so no need for the Iraqi’s to continue to try to start from scratch.
2. It’d be a heck of a solution to our current oil woes.
Instead of us continuing to pour money into Iraq (that we’ve stolen-borrowed from our children and our children’s children without asking, I might add) without reward, we could now monetize our investment for our children. It would be like adding Alaska to the union (with its huge oil reserves), only in one of the most geopolitically sensitive areas of the globe. As I said, we’re going to “be there” for a generation anyway!
3. Having $1.00/gallon gas in the U.S. for at least a generation would sure silence the anti-war crowd.
I don’t think this requires any explanation. Oh, and don’t forget to “short” the oil company stocks…
4. Our enemies would be forced to stop accusing us of being “imperialist”.
Sure this proposal would peeve the Islamic extremist jihadists, so I say let the Iraqi’s vote on it. And no rigged elections this time: if they honestly want us to leave, we should. If they want to be Americans, they should be allowed to be Americans. And this gift keeps on giving- a “free” Iraq as a state of the United States would be Syria’s and Iran’s worst nightmare. Not to mention China, who competes with us for every barrel of oil available to support their burgeoning industrial economy.
With oil prices currently at around $125 per barrel, it is difficult to believe the US government’s calculation that inflation is currently at 3.98%.
It occurred to me that if our wages were indexed to the price of oil, perhaps it wouldn’t be so bad. So, imagine if you will, that you were making $100,000 when the price of a barrel of oil was $100. (which happened “way back” between February and March of this year).
The cost per barrel has increased 25% in roughly 3 or so months. Now imagine, if you will, your salary increasing by the same percentage. In our hypothetical example, you are now being paid $125,000 today for the same job you were doing in February.
Sweet!
To be very specific, what happens to a life when it ceases being a relentless pursuit of money? I think back to my church confirmation classes and remember being taught that the “love” of money is the root of all evil. But we’ve learned that money is nothing more than a storehouse of value and a method of exchange. In today’s world, it’s nothing more than ones and zeroes contained in a computer database/ledger. It also begs the question: Who’s in charge or control of the “ledger”?
Our money can “disappear” at any time- as it has in America before. Does anyone remember confederate currency? Because it was a fiat currency (meaning it had no intrinsic value, just like our current dollars) and was backed by a government that ceased to exist, confederate currency collapsed and had no value at the end of the Civil War. Those who were “rich” by confederate currency standards were left penniless. I guess the moral of that story is having “more” shouldn’t necessarily make you feel more secure and that you should never assume the unlikely is impossible.
Actually, the disappearance of money doesn’t even need to be so draconian or dramatic as followed by a governmental collapse. Inflation is a hidden danger and stealth destroyer of monetary “wealth”. Inflation is the general level of prices over time. I like to think of it as a general *increase* in the cost of a “basket” of goods and services over time. For example, I would need $661.92 in 2007 dollars to buy what $100 could buy in 1965, the year I was born. A loaf of bread cost a whopping 21 cents then- compare that to today!
Reasonable people ask why this is. It’s because our money supply is manipulated by a financial cartel in the form of the Federal Reserve. As more dollars are injected into the money supply and “made available”, the value of the dollars already existing in circulation *falls*. Therefore, you need increasing amounts of dollars to buy the same amount of goods and services over time.
Recently I was referred to a 60 Minutes segment about David Walker which was broadcast originally back in March, 2007. Don’t know who David Walker is? Don’t feel bad, neither did I. Up until March of this year, he was the US government’s top accountant, the Comptroller General of the Government Accountability Office. He pegs our national debt at $53 TRILLION dollars, not $9 TRILLION and paints a picture of our country’s economic future so grim, it’s as compelling as it is utterly chilling. I consider it a “must see”.
I’m left pondering whether the “endgame” plan is the bankruptcy of the United States (with its corresponding debt default and monetary collapse) to “make way” for something new- I believe George Herbert Walker Bush (41) called it a ” New World Order”.
Wouldn’t that be a hoot? I wonder how the people who spent the entirety of their lives in the sole and relentless pursuit of money are going to feel?
Well, just a flurry of activity today, isn’t it? I’m going to be away on vacation until late April/early May so I wanted to commit a few ideas that I’ve been mulling over lately to the site before I either forget them or get caught up in other things. Some concepts I have “in development” as of today that’ll have to wait for my return:
1. A line item breakdown of variable annuity costs - OUCH!
2. Why stock market timing is a bad (but pervasive) idea;
3. A discussion of “senior” seminars and the art of the “sale” - beware the siren call of the “free” steak dinner!;
4. The allure of fixed index annuities and when they are suitable;
5. Long Term Care Insurance Objections (and rational responses);
6. Within every small business owner lies the soul of risk manager;
7. Moral and ethical obligations of a fiduciary;
8. Legal considerations of the sale of securities by “captive” financial advisors/insurance agents;
9. Exploration of the concept of “Personal” Enterprise Risk Management;
10. How to reduce health insurance premiums through exposure analysis;
11. Matching bond fund durations to meet a 1-5 year financial need;
12. “If investing *isn’t* boring, you’re doing it wrong”; and
13. An exploration of personal risk control techniques.
Just a little “light” reading, huh? Also, if you haven’t already done so, please consider registering your email address (or send me an email at md at marcd.com and I’ll register for you!) so that the site updates will be forwarded automatically to you by email. Consider referring a friend to the site - we need more friends! Thanks again for your support and I’ll see you in about a week.
Being tax time, I’m reminded of a piece of sage advice I’ve acquired along the way that I’ll share with you. At one time many years ago, there was an ice cream parlor in my town called “White Mountain Creamery”. It made some of the best ice cream I ever tasted and was always packed with people. By all outward appearances it was a thriving small business. Until one day, that is, when it closed without warning.
I always wondered what happened behind the scenes. Was it the sudden death of the owner who lacked a buy/sell agreement? Was it a lease renewal negotiation that soured? But if that was the case, why didn’t the business move and reopen at a new location? What would cause a seemingly very successful business to shutter “overnight”?
I came to learn it was simply a matter of too much money going out and not enough money coming in. And it simply doesn’t matter how much you’re earning, whether it’s $30,000 a year or $30,000 a month. It’s not what you make, it’s what you keep.
So remember the lesson of White Mountain Creamery whether you’re evaluating new business opportunities or simply living your life. It’ll never let you down.
My father was a small business owner. As I think back, I suspect this happened out of necessity and not by choice. You see, at the age of 14, he was forced to start working to help support his family after a construction accident took the life of his father at a young age. My father was first generation “off the boat” that came through Ellis Island in the early 1940’s.
His family was very poor and no one had the benefit of a formal education. As I understand it, my dad was exceedingly bright and well-liked at school and despite receiving several offers to go to college, he started work full-time straight out of high school to continue to help support his family. At the time, I don’t think he gave it any thought. He just did “what he had to do”.
Before he died, he told me that he had 2 regrets, one of which I will relay here. He said that looking back, he regretted not being able to stay in school and always wondered what the tapestry of his life would’ve been had the circumstances allowed him to go to college after high school.
I think all of us can look back to specific moments in our life and see the proverbial “fork in the road”, where life offers us choices. They seem so clear in hindsight. I view them in terms of “IF…THEN…ELSE” computer language programming branches. “If I make choice “A”, then the likely result is “X”; If I choose “B”, I’ll likely end up in a completely different place.
In short, I try to explain to my kids that each successive choice we make leads us to different possibilities and (accordingly) to different successive choices (If, then, else branches). Some are small choices, and some large. It’s how our futures flow.
We all live with our previous choices, the choices that were made for us and the choices of our parents. All of these accumulated and conspired over time to bring us to our current “place”. Now comes a point of decision: If you want a different “place” (result) for yourself today, you will have to actively make some new and different choices. You cannot “undo” what has been done, but you can take that experience and change your future. It’s like “hacking” your own life.
Sometimes I wonder if our founding fathers would recognize their country. Why is it that government officials, be it local, state or federal, always announce major new directives on Friday afternoons? No need to answer - the answer is self-evident.
Yesterday the Bush administration announced a proposal that would give sweeping new regulatory powers to the Federal Reserve, (which is not a government agency despite its name), according to this AP wire.
Is everyone asleep?
Most rational explanations of how the credit crisis evolved includes the Federal Reserve as a major factor. The concept is that when the Federal Reserve lowered interest rates and infused cash into the monetary system (increasing liquidity) in the days and months after September 11, 2001, it made money “cheap” and plentiful. These decisions at the very least, helped create the current monetary environment.
Banks were encouraged and expected to make loans available (to both businesses and individuals) who may have been affected by the 9/11 event. People were encouraged to “go shopping” to keep the economy afloat. And as it turned out, many people, in fact, did just that. A good question to ask at this point is how exactly did we finance this?
Many used their homes as an ATM, because it was “easy” money.
Banks were lent “easy” money by the Federal Reserve, and then in turn re-lent this “easy” money to others. Loan underwriting standards were lowered dramatically. People who couldn’t qualify for a Discover Card were given new mortgages, which in turn fueled the housing boom. People with current mortgages were encouraged by banks, lenders and mortgage brokers to take equity “cash-outs” because their home equity was just “sitting there”, not doing them any good.
Is there any other way this could have ended?
And now, we are asked to give the Federal Reserve more power. While I understand that the American people want a solution and a “quick-fix”, I think that this proposal is taking us in the wrong direction.
