Archive for the ‘Uncategorized’ Category

capitalism and the Bible

Saturday, February 4th, 2012

Catherine Rampell’s readers provide her with examples of anticapitalist passages in the Jewish Bible.

As described in Leviticus 25, every 50th year is a jubilee year, during which slaves are freed and property is returned to its original owner.

Debts are forgiven even more frequently. Just as God rested on the seventh day, I.O.U.’s get wiped out every seventh year. From Deuteronomy 15:

At the end of every seven years you must cancel debts. This is how it is to be done: Every creditor shall cancel the loan he has made to his fellow Israelite. He shall not require payment from his fellow Israelite or brother, because the Lord’s time for canceling debts has been proclaimed.

I can think of a few American homeowners who might support reviving this rule. Maybe a few countries, too. Oh, but wait — the biblical passage continues:

You may require payment from a foreigner, but you must cancel any debt your brother owes you.

Sorry, Greece.

Catherine Rampell, “Reader Response: Bible-nomics“, Economix, 3 February 2012.

Catherine Rampell is an economics reporter for The New York Times. This, and her earlier post, is in response to a recent op-ed column by Rabbi Aryeh Spero:

The mechanism of capitalism, as manifest through investment and reasoned speculation, helps facilitate our partnership with God by bringing to the surface that which the Almighty embedded in nature for our eventual extraction and activation. ….

Many on the religious left criticize capitalism because all do not end up monetarily equal—or, as Churchill quipped, “all equally miserable.” But the Bible’s prescription of equality means equality under the law, as in Deuteronomy’s saying that “Judges and officers . . . shall judge the people with a just judgment: Do not . . . favor one over the other.” Nowhere does the Bible refer to a utopian equality that is contrary to human nature and has never been achieved.

Aryeh Spero, “What the Bible Teaches About Capitalism“, The Wall Street Journal, 30 January 2012.

Mitt Romney

Thursday, February 2nd, 2012

Two well-known journalists look closely at the probable Republican nominee.

Mr Romney strongly resembles two similarly unloved Democratic nominees from the recent past, Al Gore and John Kerry. These both suffered from the same characterisations that are applied to Romney – too wooden in person while too flexible in their views. Their supporters often argued that qualifications were what mattered. But ominously for Mr Romney, both lost winnable races because of their flawed personalities.  George W. Bush, on the other hand, was elected and reelected, despite his enormous substantive shortcomings, because ordinary people found it easy to relate to him at a personal level. They felt he wasn’t trying to be someone different from who he was.

Romney, Kerry and Gore are all, in a way, versions of the same political type. Statuesque, handsome, from privileged backgrounds and impeccably credentialed, they have no log cabin stories to humanise and ground them. Unlike a Lyndon Johnson, a Richard Nixon, a Ronald Reagan, a Bill Clinton, or a Barack Obama, they didn’t overcome humble origins or broken families. Mr Romney’s background is alien to most Americans not because he descends from polygamists but because his father was a governor of Michigan, an automobile company chief executive and a presidential candidate.

Jacob Weisberg, “Why Mitt Romney must take pride in his own perfection“, The A-List, Financial Times, 1 February 2012.

Mr Weisberg (born 1964) is author of The Bush Tragedy (Random House, 2008).

For four years now, Republicans have been demonizing Barack Obama for his alleged “otherness”—trashing him as a less-than-real American pushing “anti-colonial,” socialist, and possibly Islamist ideas gleaned from a rogue’s gallery of subversive influences led by his Kenyan father, Saul Alinsky, and the Reverend Jeremiah Wright. And yet Romney is in some ways more exotic and more removed from “real America” than Obama ever was, his gleaming white camouflage notwithstanding. Romney is white, all right, but he’s a white shadow. He can come across like an android who’s been computer-­generated to be the perfect genial candidate. When forced to interact with actual people, he tries hard, but his small talk famously takes the form of guessing a voter’s age or nationality (usually incorrectly) or offering a greeting of “Congratulations!” for no particular reason. Richard Nixon was epically awkward too, but he could pass (in Tom Wicker’s phrase) as “one of us.” Unlike Nixon’s craggy face, or, for that matter, Gingrich’s, Romney’s does not look lived in.

Frank Rich, “Who in God’s Name Is Mitt Romney?“, New York, 29 January 2012.

Frank Rich (born 1949) was employed by the New York Times from 1980 until June of 2011, when he left to become an essayist and editor-at-large for New York magazine. HT: The Browser

Bill Ayers on the Tea Party

Wednesday, February 1st, 2012

I’m writing this book right now called Pallin’ Around, and the subtitle is: “Talking to the Tea Party.” And frankly I find talking to the Tea Party exhilarating, I love it. ….

[T]he Tea Party, if you want to call them working class, you know, a working-class insurgency from below, they are a mass of contradictions; they don’t have a single consistent viewpoint; but part of their impulse is to be wary of government. I’m wary of government. Part of their impulse is to dislike and be worried about the rich. I’m that way too. So I don’t find them to be as atrocious as most people do, as your liberals do. I’m not a liberal. ….

There are things about classic liberalism that obviously I’m drawn to and I bet all of you are as well. Those are things like liberty, freedom, the Bill of Rights. But the reason that I reject the label is that I grew up cutting my teeth against the liberals. I wasn’t part of John Kennedy’s vision of the world, or Lyndon Johnson’s. I thought of them as anti-Communist imperial monsters. ….

Obama doesn’t disappoint me, because all during the campaign he said, I’m a pragmatic, middle-of-the-road, compromising politician. The Right said, He’s lying, he’s a socialist who pals around with terrorists, he’s a secret Muslim and blah blah blah. That was their line. The liberals all said, He’s winking at me, I can feel him winking in my direction. He wasn’t winking. He said exactly who he was and he’s lived that out perfectly.

So you can be disappointed but only if you thought he was something that he said he wasn’t! Every politician—FDR, Lyndon Johnson, Abraham Lincoln, Barack Obama—they’re all conservative by nature. ….

An Interview with Bill Ayers“, The Point 5 (Spring 2012)

Bill Ayers (born 1944) is a retired professor of education at the University of Illinois in Chicago. He is best known for his activism in the 1960s and 70s and for co-founding the Weather Underground, a revolutionary group that bombed public buildings to protest US involvement in Vietnam. Ayers has written a memoir of his activist years, Fugitive Days (Beacon Press, 2001; Penguin, 2003). During the 2008 US presidential campaign, Barack Obama was accused of “palling around with terrorists” because of his contacts with Professor Ayers in Chicago. Click on the link above to read more from the interview.

HT: The Browser

Charles Dickens

Tuesday, January 31st, 2012

We live in hard times, and all the indications are that they may get much, even very much, harder. No one, at any rate, would take a bet that they won’t.

The number of children in America claiming subsidized meals in school has shot up; the homeless are increasing by the hour; the formerly prosperous are laid off without so much as a thank you; the young struggle to find any work at all; beggars are making a comeback on the streets of cities as if they had been hiding all these years, waiting for the right moment to emerge from their subterranean lairs into the world above.

The February bicentenary of the birth of Charles Dickens, then, could hardly come at a more appropriate moment in economic history, for Dickens was the revealer, the scourge, the prose poet, of urban destitution—a destitution that, in our waking nightmares, we fear may yet return.

Theodore Dalrymple, “Hard Times Again“, The American Conservative, 23 January 2012.

So begins a fascinating essay on Dickens by English writer ‘Theodore Dalrymple’, the pen name of psychiatrist and retired prison doctor Anthony Daniels (born 1949). Click on the link to read the full essay.

HT: The Browser

Cuba’s economic reforms

Saturday, January 28th, 2012

“We’re giving Etecsa a bit of competition,” says Michael Franco, who has regular takers for the iPhones he sells for $400 and no complaints about the government’s 50 per cent tax rate either. “Fifty per cent of what? It depends how much you declare.”

Cubans wonder about selling their houses – to foreigners of course, as no Cuban has sufficient capital although, paradoxically, only resident Cubans are allowed to buy.

“Judging from the Norwegian who bought next door for his Cuban wife, my house is probably worth $300,000,” says Nelly Sanchez who is thinking of downsizing from her four bedroom because her three children live abroad.

John Paul Rathbone, “Freedom comes slowly to Cuba“, Financial Times, 28 January 2012.

colonising the moon

Saturday, January 28th, 2012

Even by the grandiose standards of Newt Gingrich’s ideas, this was a big one. “By the end of my second term, we will have the first permanent base on the moon,” the presidential hopeful promised.

He may have tried to reflect the glory of a genuinely grandiose president. In 1961 John F. Kennedy announced the goal “before this decade is out, of landing a man on the moon and returning him safely to earth”. But why Mr Gingrich, who is busily trying to appeal to the Tea Party, would try to compare himself with a Democratic party icon is anyone’s guess. ….

There is one similarity between the Tea Party darling and the president of 50 years ago: both have been accused of a predilection for women who were not their wives. Beyond that, Lloyd Bentsen’s words to another Republican trying to reach the White House ring true: “You are no Jack Kennedy.”

Fly me to the moon“, Financial Times editorial, 28 January 2012.

job satisfaction, sniper edition

Thursday, January 26th, 2012

Research in Canada has also found that snipers tend to score lower on tests for post-traumatic stress and higher on tests for job satisfaction than the average soldier.

“By and large, they are very healthy, well-adjusted young men,” says Peter Bradley at the Royal Military College of Canada, who is studying 150 snipers in Afghanistan. “When you meet them you’re taken by how sensible and level-headed they are.”

Stephanie Hegarty, “What goes on in the mind of a sniper?“, BBC News Magazine, 25 January 2012.

Not what I expected. The article, interesting throughout, focuses on the story of a particular well-adjusted sniper, Chris Kyle, who officially killed 160 people (his own estimate is much higher) during four tours of duty (2003-2008) with the US Navy Seals. Iraqi insurgents named him “The Devil of Rahmadi” and put a $20,000 bounty on his head.

Chris Kyle wrote a book about his experience, American Sniper (William Morrow, 28 December 2011), and was interviewed on 5 January 2012 by BBC World Service (Outlook). The interview can be downloaded here.

rejection letters

Tuesday, January 24th, 2012

[S]ometimes a brutal rejection is better. Antony Sher often describes the letter he got from the Royal Academy of Dramatic Art that said: “Not only have you failed the audition and we do not want you to try again, but we seriously recommend that you think about a different profession.” ….

The best rejection letter I ever received contained a reason I will never forget. I had written to a Mr Ivan Sallon, city editor of the Sunday Telegraph, asking for a job. He replied saying that there were no vacancies and went on: “May I offer you a word of advice? When applying for a job, do take care to get names right.” The letter was signed: Ivan Fallon.

Lucy Kellaway, “If you have to reject me, tell it to me to straight“, Financial Times, 23 January 2012.

A reader responds with the following letter:

Sir, Lucy Kellaway is quite right in saying that rejection letters should give reasons …. However, this has to be done tactfully. I will never forget the rejection letter I received from a consulting company that interviewed me right after university. It stated: “In our business, we need spark or depth; sadly, you have neither.” ….

Ms Kellaway’s column also reminded me of two other memorable letters I have received in the past. One, many years ago, came from an American company. After the usual drivel about many high calibre candidates and all that, it ended with an upbeat note stating that it would “contribute your CV and cover letter to the local recycling program”.

The other company simply stated that it had received my application and would keep it on file for a suitable role. At the bottom of the page were the words: “C:\My Documents\rejection.doc”!

Jem Eskenazi, “Rejection has to be done tactfully“, Financial Times 24 January 2012.

bank profits and employee bonuses

Saturday, January 21st, 2012

From the United Kingdom, more evidence that it is better to work for a bank than to own shares in one.

In an attempt to avoid another display of bankers being rewarded for failure, the Financial Services Authority is demanding that institutions take account of the multibillion-pound compensation bill for [mis-selling] payment protection insurance when they calculate pay-outs [of bonus awards] for 2011. ….

Last year the UK’s five biggest lenders took charges totalling almost £6bn for their longstanding practice of providing loan insurance to people who did not need or want protection. PPI was frequently sold alongside loans to cover repayments when borrowers fell ill or lost their jobs. ….

Some banks are expected to resist the pressure, arguing that most staff responsible for PPI mis-selling have since left. ….

David Cameron, the prime minister, came under renewed pressure this week after it emerged that Royal Bank of Scotland, which is 83 per cent state-owned, was preparing to award its chief executive a bonus of at least £1m for 2011, a year in which the bank’s share price fell 43 per cent.

Sharlene Goff and Megan Murphy, “UK banks targeted on mis-selling scandal“, Financial Times, 21 January 2012.

profitable banks

Friday, January 20th, 2012

Banks are very profitable …. for their employees, not for the owners.

The investment adage that you’re better off working for a bank than owning shares in one is mostly true. Indices of global banks, including sexy developing-world lenders, have gone exactly nowhere over the past decade. Ditto the stock price of the mighty Goldman Sachs, which released full-year results on Wednesday. Over shorter periods, bank returns are uglier still.

Yet Goldman, for example, has paid its employees $125bn during the past 10 years (doubling along the way), twice what it made in net profits. Hence, some hope that a possible route to boosting low bank returns on equity is a structural cut to industry compensation ratios. ….

Bankers, of course, talk about the war for talent and the potentially devastating effect on morale and top-line growth if compensation and/or headcount are slashed. It is true that most bankers have next to no loyalty ….

[But there is no evidence of a shortage of talented employees for the industry.] Goldman reduced its compensation bill by a fifth in 2012, and global headcount by 2,300. Yet those remaining are hardly queueing for the exits, nor will the thousands of graduates who apply every year think twice.

Lex, “Goldman Sachs: paying through the nose“, Financial Times, 19 January 2012.