steven n fettig's Jitterin' Thoughts

Hidden taxes: Commentary

2009-06-13T22:45:48Z

I take issue with the following from Watch for Hidden Taxes (The Boston Globe):

Under the circumstances, actions that impose sizable hidden taxes on American citizens should be put on hold, or at least exposed to much more careful evaluation to be sure their merits outweigh their costs and burdens on our struggling economy.

It doesn't surprise me that Dudley and Rosen were former members of White House budgetary staff. My comment is simple: Americans are already under far too much regulatory and tax burden. We should be subject to no more. Ever.

We revolted against King George III over a 3% tax in the 1700s (yes, it was far more complicated, but many argue that that was the straw that broke the camel's back). Serfs to the monarchy and feudal ruling class were subject to what we view to be abhorrent taxes up to 25% of their income. Those paying income taxes in the US (remember, there is a whole class of citizenry who doesn't pay income taxes - and I am not speaking of the IRS defined poor) can pay upwards of 52% of their income in taxes (that does not include sales, property and any local taxes).

Those who pay, pay too much and we need to stop making excuses as to why more is not necessarily bad. It is bad and it ought to stop.

The Politics of Today; tell me where I went wrong...

2009-06-13T03:54:19Z

I'm working hard on understanding what is going on around us, but I can't. A majority of us voted for change. What we got was a lot of the same. We were told there would be limits on pork barrel spending and that the public would be given an opportunity to read proposed laws (and comment) before they were passed.

Mr. Obama, you promised a lot of things. Many of these things I wanted nothing to do with. These two things, though, are ideals that I not only support you on, but strongly believe are the cornerstone to a good democracy and a strong republican government (small 'r' not big). (Surprisingly, there were many other things that I support you on, but these two took front and center of attention because they seemed to be a common cause between friend and foe in the political arena.)

Neither of these things have happened. We have seen some of the largest pork-barrel laden bills passed in your first 100 days. These were called stimulus packages meant to help the economy. I don't see how earmarks and a public fountain for a park in some city in Missouri is supposed to help the economy. The mess we are in is because of reckless spending on the back of reckless borrowing. Borrowing more to spend more recklessly doesn't seem to me to be the solution.
And the transparency - in the form of waiting periods so that public input could be given before bills were passed by you and Congress - doesn't seem to be gaining any traction. I thought an informed public was the most equitable way to govern.

Maybe I misunderstood what change meant. I thought it meant different than things are or were. It doesn't seem to me that much has changed. Maybe someone can tell me where I went wrong.

Thoughts have Consequences, too

2009-05-26T00:44:42Z

This is a take-off on a phrase many of my Hillsdale brethren will know well.

The thoughts I have now - especially nearing what we are hoping as much as any one (or many) can hope - are those along the lines of whereto from here? I don't want to continue down the same path. Despite what has happened, there would be something else prompting this thought - some other happening, some other occasion - but I rarely have the strength or courage to say it out loud. Steph having cancer was a shock and regardless of the outcome (and for those reading this and who are not in the know, the outlook is fantastic) it changes things forever. I know that life will go back to some norm when this is all over, but I have a feeling that some hint of the aftertaste of the experience will follow us for the rest of our lives.

So, the big question that awaits an answer is which thoughts will have the greatest consequences? Every few days or weeks, I move in and out of a shell. There is a period of time where the only thing I can concentrate on are Steph and what it means to care for and watch someone go through the things she has endured and then the shell-shock of experiencing the world around me as I come out of the cave. The reality of today - each time I return from my retreat - is disturbing, at best. For years, the change towards the problem is someone else's has been gradual. What I mean is the subtile changes in average the average citizen's opinion that someone else will be held accountable for their failures (but of course, not for their successes - for that they alone are responsible). I'm scared by the constant move towards collectivism - as if, it is the only solution out there - and this move is brash in some instances and very meek in others. But, the march goes on.

Through life's experiences, you are confronted with those big things. Everyone is. The big things have always made me go back to wanting to take my own responsibility for my actions and the regret of having bowed to the opinions and advice of others when it was really my (or my and Steph's) opinion(s) that made the biggest difference. The subtile message was that, we, as individuals, knew best. As we move forward, picking up certain pieces, it is hard not to see where we mistakenly took the advice of others because of a certain respect we thought owed to them (for whatever reason). Luckily, these were not big mistakes and life has treated us well. But, they have been important enough decisions to have made a difference.

I want to change that. I know I can't always make my own decision. Survival (the type I would like to continue to enjoy) requires some amount of pragmatism. I stand before the precipice of which thoughts?

Obviously the State does not Operate like a Business

2009-04-19T01:09:41Z

There are times when I simply shake my head after reading an article in the newspaper. This is one of them. In a (short-sighted) discussion about the State of Wisconsin's projected (perhaps, better said, guaranteed) budget shortfall, one of the areas where spending is being evaluated is with regards to state workers receiving pay for overtime hours. Notice I say receiving pay for overtime hours and not working overtime hours.

"The Journal Sentinel reported last year that eight of the 20 top-paid correctional officers in 2006 called in sick for a shift and then worked the immediate next shift at least once. Those employees earned eight hours of regular pay for the time they were off and eight hours of time-and-a-half pay for the shifts they worked."

What is being described here is not working overtime. This type of scheme makes my head spin. How does someone who hasn't even worked their normal shift receive overtime hours for showing up to the next shift (forget the idea of having to reach 40 hours before receiving overtime because many places - including our company - you receive overtime pay for working beyond your shift)?

In the end, I think the focus on overtime in it and of itself is completely misguided. Already trained workers being paid time and a half for overtime hours are likely to be more efficient and conscientious than someone who has been hired solely because too many overtime hours have been worked by the current staff. When we look at the details, however, of how overtime is defined, the question that needs to be asked is, "what is the state thinking?" And, if this type of financial behavior exists with something as simple as defining overtime, imagine what other types of ridiculous indiscretions take place.

via 25 State Workers Earned More than $50,000 in Overtime in '08 - JSOnline

Great Response to a Despicable Action

2009-04-17T15:09:54Z

The most disturbing thing that got my blood boiling was the following comment on the actual YouTube page where the video is on display:"If you pay crap wages...you get crap work...period. These 2 where clearly acting on disrespect,and boredom. Had they better incentives, better pay they would have respected their jobs and responsibilties more." (From Wickedpainz) Are you serious? Do you really think this way? If people are unhappy with their wages, no one is holding a gun to their heads making them do anything - including work. The economy is currently in the tank, yes, but using that as an excuse to pull a prank that damages the reputation of any person or company and puts at risk the jobs of tens of thousands of people is unwarranted at any level. This is a sad commentary on the attitude that some people have towards others and shows that excuses are like assholes. Everyone has them [apparently].

Small town politics, the creep effect

2008-12-31T07:02:30Z

I've been mulling this post for a few hours now and I still don't quite know what to say. I just attended my first Planning Commission meeting (as a Commissioner) for the township in which I live (Darien, WI) and was a bit overwhelmed by one thing: people making constant and contradictory statements. Because the contents of the meeting are public, I have no issue with airing specific details about what I experienced (and my opinions thereof), but before I do, I want to gather my thoughts a bit.

One thing struck me more than anything: we have all but forgotten about individual property rights. By that, I mean, the general idea that when you own something, you may do with it as you please. As we all know, this is never cut and dry. While I own my car and it is more than capable of traveling at speeds of well over 100 mph, I cannot legally do so. So, on one hand, I may take a hammer to my car and destroy it if I wish, but I may not always use or treat it in the manner that I see fit. The problem that I have with the mentality on display tonight is that of the creep effect. Once it is allowable to dictate what one is able to do with his or her thing in one particular instance, It must be acceptable to decide for them what they may or may not do in another setting. This mentality has the inevitability of creep... It creeps into everything.

The immorality of making someone choose your way

2008-12-24T05:23:27Z

I've been thinking about this one for a long time. Having been raised Catholic, I was taught at an early age to try to live Christ's example and eventually lead by example. While I have slowly, philosophically descended into the seventh circle of hell with regards to my specific faith and beliefs, there was always something powerful about that teaching. (We could argue the specifics of what "Christ's example" means, but most people who were raised and/or are practicing Christians have at least some vague idea of what I mean.) In philosophical wanderings, though, on this topic, I always found myself coupling this set of rules with another set: let he who is without sin throw the first stone and, when asked what to do about someone who has just injured you, we are asked to show that person the other cheek.
In all four of these powerful messages, though, I don't hear any talk of force. There is a subtle live and let live undercurrent. I may choose to live through the example of others, but in the case of judgment and/or acting upon someone's misdeeds, we are taught to accept and move on. In many ways, we are asked to not react.
I think there are many atheist, non-Christian, evolutionary, and materialist arguments that could be made for managing ones actions in a similar manner. Some day, I hope to be able to delve into some of those for which I believe I have a relatively firm logical grasp. But for now, it seems to me that one of the messages one can learn from above is that it would, in fact, be immoral to impose one's manner of thought and action upon another. The consequences of this conclusion are innumerable. At the end of the day, this means you must be committed to letting people act in a manner you find reprehensible. To clarify, no sensible person would advocate that this means indiscriminate violence against others should be allowed or condoned. It means, though, that actions committed/taken within a private sphere shall not be judged - and it would even be wrong to act as if you had a right to do so. For if we are supposed to live by Christ's example, point to me the scripture that states He advocated taking control over another's life because you believe you know better. If we determine much of our morality by that of general Christian values, then doesn't it mean doing so would be immoral?
By the way, if you're an atheist, the argument becomes even cleaner, because it is not necessarily subject to wide interpretation. Coercion deprives a person of the very thing everyone, every man, woman, and child, holds dear at some point: individuality and the ability to act in one's own best interest. Depriving someone of this one thing is the tipping of the first domino that sweeps personal freedom and autonomy into a wasteland of dependence and loathing.
Either way you dice it, the axiom should be: choose for yourself, not someone else.

OpenBSD (4.4) and an Apple PowerBook G4 (DVI) - a short story

2008-12-12T18:00:54Z

I've been trying to get OpenBSD 4.4 up and running on an old'ish PowerBook I had to rebuild recently. This is one of the last 15" G4 series PowerBooks Apple made. The basic specs are the 1.0 GHz G4 PowerPC processor, 1GB of RAM, DVI, 1gbps Ethernet, 80GB drive, etc. (If you wish, you can stop reading the story part of this post here. Go to the last paragraph if you are simply checking how I got OpenBSD to work as a second OS on the PowerBook.) Running Leopard (OS X 10.5) was frustrating, as it was slow (especially compared to my newer Intel based MacBook Pro) and I really don't have a use for OS X unless it runs fast on a portable machine. At the end of the day, I am using this machine to check email, surf the net and muck around with OpenBSD related issues I have with a small server farm I'm responsible for managing. Considering the machine is in fantastic condition, it would be sad to let it sit on a desk somewhere and collect dust. The problem was that I have spent the last two days trying to get OpenBSD 4.4 running and while the installation went as smooth as would be expected (I rarely have problems with OpenBSD's install process), regardless of whether or not I left the drive formatted MBR or HFS style (i.e. using a boot map that is typical for Intel/AMD machines vs. using Apple's Open Firmware style boot sector), I just could not get OpenBSD to boot. That was, until I read the directions more closely...

]]> There is one very important file Open Firmware wants to see/read when you try to boot the OpenBSD partition: ofwboot. I tried getting OpenBSD installed one of two ways: a) as a secondary OS after OS X (just in case...) and/or b) as the only and primary OS. I don't understand enough about the boot process and trying to boot a PowerBook off a drive formatted with a Master Boot Record instead of the Apple Partition Map. I tried to get it to work and couldn't. I quit trying after the second attempt/second install. Although I don't plan on using OS X, I did want to keep it on the machine in case any firmware updates were necessary or if I simply wanted to quickly boot to the OS Apple provides for the machine (i.e. for pragmatic reasons). On four different occasions, I installed OpenBSD and whenever I tried to run the command 'boot hd:,ofwboot' (or its various forms) I locked up the laptop or got an error message. Because I was doing this on the side of doing other things, I didn't take the time to write down the errors. In the end, they were irrelevant. I did not follow a simple message found in the install files and/or in various documentation available on the web. Open Firmware needs ofwboot at the root of the OS X partition at the beginning of the drive to boot OpenBSD. I didn't watch and read after the installation was done that it wasn't necessarily the case that ofwboot was on the HFS/Mac/OS X partition.

Finally, it occurred to me to look at the root of my OS X install. And to my amazement... ofwboot was not there. Copy using Finder, run 'cp' from the terminal... it didn't matter. I copied ofwboot from the install CD for 4.4 to the root of the OS X drive and restarted in Open Firmware (option+Command+O+F), typed 'boot hd:,ofwboot' and voila. OpenBSD boots just fine. I can't get the Airport card to work with the bwi firmware you can download from http://www.nazgul.ch/bwi/bwi-firmware-1.4.tgz (it locks up the PB every time I try to run 'dhclient bwi'), but I'll work on that later. OpenBSD (macppc) works out of the box and even X runs just dandy.

Business Anonymity and Political Divisiveness

2008-12-09T01:16:41Z

I met the other day with a group of individuals on a project to better the state of politics in Wisconsin and perhaps the national agenda in some small way. One of the persons was concerned with anonymous participation in the group and this got me thinking this evening. The person was concerned with what I assume to be a connection between a strong stance in politics and the potential repercussions such a stance can have. I can relate. Until recently, I was very cautious about voicing specific opinions because I didn't want to ruin the possibility of being able to receive the necessary permission to do something business related from such and such bureaucracy just because the person in charge heard or found out what I said and decided to use it against me. I know this is a very real possibility and becomes more onerous the more one must work with regulatory agencies to achieve their goals. (It is sad but true that there is very little we can pursue today in the US that doesn't involve getting permission in some sort or other. I know it is better than many other places, but it is still worse than it once was.)

]]> Perhaps it used to be, but no longer is, that people could make their ideas and opinions known without the consequence of losing their livelihood. Sure, there have always been strings attached to opinions. That is, having and voicing your opinion requires taking responsibility for what you have said. Usually this amounted to light blowback (assuming the comment was not libelous or discriminatory) or argument from the opposition or even an innocent interlocutor over for dinner. The more strongly an opinion is stated, the more you can expect someone to have the opposite belief (at least somewhere at some time). The problem with today's scenario is this: the persons in question were successful in their own right. They both demanded respect (not in a dictatorial manner, but vis a vis their reputation) and admiration for what they had accomplished in their lives. Their ideas and decisions had not only led to their success, but also the success of many who worked with and around them. Yet, at the end of the day, they couldn't have their opinions voiced because of the potential repercussions for... ghasp! being [American] Conservative (or a classical Liberal). What could they possibly have to say that would make someone else so angry?

Think about that. They obviously have made good decisions and yet are barred from public discourse. For some reason the rule doesn't apply to successful [American] Liberals and [generic] Socialists - that is, unless your business is bringing attention to yourself. It stopped and made me think, how sad.

Two things that have made me happy about this election

2008-11-05T14:14:16Z

I have loathed the 2008 election to no end. It started way too early and has been a pissing match mostly between people whose interest is only furthering a governmental agenda and not ensuring the freedom (and subsequent responsibility) of the people. As I commented on Twitter this morning: "I'm from the government and I'm here to help you..." Regardless of which party (i.e. Democrat or Republican), that is what you were casting a vote for. I didn't want either candidate to win, so I can't really say that I'm more disappointed in Obama winning. I'm disappointed in both parties and that is it.

The flip side to this story is that of two events that have truly made me smile. The first is a simple one: people voted... and a lot of them. (I'm sure there were plenty of duplicate and dead voters, but I guess no system is perfect.) I've always been raked over the coals by my German friends at the lack of voter turnout in our presidential elections. Thank you American friends for actually going to vote! Now I have something to brag about. Sure, we could do better than 60% (I hope the real numbers - once all of the votes are counted - are higher), but that is pretty amazing, considering I've read that turnout has been as low as 30% in the past few decades. And that's just sad... So, despite having to chose between two left leaning senators, I'm happy people tried to make the choice.

The second thing that really, truly made me smile was this: A. voted. I gave an employee (who is a contemporary) shit yesterday because I heard him say that he doesn't vote. I badgered him ... I even offered money ... not to vote a particular way, but to simply vote. I really didn't think much of it. I thought he'd take his raspberries and shake them off. This morning I was left with the following note on my desk:

"Steve,

Here's your sticker buddy, and if you need any questions answered ask away!

For real - I just wanna say thanks for pushing me to vote. I never had in my life, so I just felt a 'lil weird. Now that I have, it felt pretty good. So, for it being my first time I just wanna' say thank you.

A.

And it really wasn't hard at all & only took 5 min of my time!"

If that's all it takes to get people out to vote, I should have given everyone in the shop a hard time... That would have been at least 100 more people at the polls. There's always next election.

100 Free (as in beer) copies of "Ever Wonder Why? And Other Controversial Essays"

2008-10-04T13:08:06Z

I started reading economic and political rags around the time I turned 12. It was an early interest in a wide range of topics that eventually landed me in the hands of Dr. Thomas Sowell over 18 years ago. The first article of his that I read was published in Forbes Magazine (and I still have a copy somewhere buried in my basement). From the first paragraph on, I have been fascinated with Dr. Sowell's insight and narrative style. I wish more people would read his works... Even if you were limited to two articles a year, you would be much more educated and wise from heeding his commentary.

I realized that while it would be illegal for me to try to post his articles in whole on my weblog (besides screw him out of the deserved royalties from his work), I realized that I can do something. One of his more recent books, Ever Wonder Why? And Other Controversial Essays, (click the link to go to Amazon and see what it is about) is an quick and easy read - and is really a compilation of a bunch of articles that made me look forward to his articles so many years ago. So, here's the deal. I know there are all of four of you who read my blog... but perhaps we can start a mini reading revolution at that. I want to give away 100 copies of Dr. Sowell's book. In order to get your free (shipping and all) copy, all you need to do is write me at snfettig@gmail.com with "Free Sowell Book" in the subject line and your FULL address in the body of the email. That is all you need to do. You don't even need to say hi. Just send me an email with that information. (Oh... and I sincerely promise that I will NOT give away any of your address information. Frankly, I don't have the time nor energy to do anything with it other than send out the books.)

If this works out, I'll give away 500 more copies over the course of the remaining portion of this year and next year. I will keep track of the numbers given away here. I might be embarrassed and find that no one requests a copy. How unfortunate would that be? We'll see.

Some of life's sweetest experiences are the hardest.

2008-10-01T15:14:43Z

On Sunday I partook in what is my last planned triathlon for 2008. My season started in June this year and has ended with the most brutal race I have ever experienced or can imagine doing again.

The Las Vegas 2008 triathlon took place at Lake Mead, 23 miles north of the Strip in Las Vegas - just outside of Boulder City, Nevada. I made final preparations for the trip back in June after looking around for a more remote race than I had done up until that point. Prior to this trip, the furthest I had gone for a race was Grand Haven, Michigan - about 150 miles (as the crow flies) from where I live. I'm not really sure what it was that made Las Vegas pop out at me when I was looking through USAT's sanctioned triathlons for 2008. It was probably the simple fact that the idea of being able to go out and party the night after my last triathlon for the year was an inviting thought. While my mind was on the potential for fun afterwards, I had no clue what type of event awaited me.

]]> The website for the triathlon boasts the "flattest course in Las Vegas." HA! This must be a joke... a very funny one directed at those who are clueless about the terrain surrounding Lake Mead. The double HA! comes in when you couple the terrain with the temperature. Sure... many of you runners apparently don't mind 95 degrees. Heck, I didn't think I minded running in 95 degrees. The problem is that 95 deg. in Wisconsin is totally different than the 95 deg. you experience in the desert surrounding Lake Mead. For one, my little corner of Wisconsin is covered in trees - especially along the roads. Sure, we have a lot of farmland, but in most of the areas where one can run, there is intermittent shade provided by the nearby trees. They apparently forgot to plant trees around Lake Mead. Plus, I will never, ever again put any credence in the idea that 95 deg. dry heat is more bearable than 95 deg. humid heat. Bullshit. There are two sides to that coin. The dry heat may make you think it isn't has warm out, but then again, you would be wrong. Plus, the speed at which you dehydrate in the desert heat is much faster than if you run in 95 deg. weather at 40% humidity. The fact is that I train in "our" heat and not theirs. Theirs is different and it made my run miserable. Well, that's not entirely accurate. Couple the constant inclines for the first three miles with the heat, and my run was a miserable one. And that was the crux of my problem: the bike and run involved overcoming 2-5% grades (with a nice mile long 8% grade hill thrown in the bike leg). Whatever the organizers mean by the "flattest course in Las Vegas" is lost on me. Perhaps they meant the swim. Yes. The swim was definitely flat. In fact, the swim was amazing. The water was calm and a balmy 78 deg. I wore my wetsuit because a) I was allowed to per USAT rules and when they measured the water temp. and b) I hadn't been in the water for 7 weeks prior to the event and needed every extra bit of buoyancy I could muster (naturally or not). Frankly, the swim was awesome and even though I struggled, I enjoyed every minute of it.

So, after all that whining above, you must think I hated the course and would never do it again. WRONG. I can say hands down that the Las Vegas Triathlon is one of the best courses I have ever done. The scenery was amazing and despite my personal troubles with the course, it was a ton of fun. And I would do it again next week, if I could. The fact is that I was very poorly prepared for this race. Besides having had a continual decline in my training over the past two months - between work, travel and being sick, I struggled to keep a coherent training schedule together - I really had no idea what I was getting myself into. In the end, I learned a lot.

First, the race was extremely remote; meaning I had to fly with all of my gear and figure my way around that hassle. (Oddly enough, the experience at the airport - both in Milwaukee and Las Vegas - was extremely smooth. Even though the Thule Bike Carrier I used looks huge and awkward, it packs easily and was straight-forward to check in.) It is also expensive to fly with a bike. For domestic flying (i.e. within the US), plan on paying at least $160 round-trip for your bike, on top of the normal ticket cost. In a few weeks, Steph and I will be heading to Germany and I'm taking my other bike with to the tune of $300 for round-trip. We'll see whether or not I ride enough to make it worth the cost...

Second, I had no idea what to expect from the terrain. I really did think the course would be flat. There are courses described as "hilly" around us that would be flat as a board in comparison to this course. Between the lack of training and the never-ending inclines, it made the race very, very difficult for me.

So, how did I do? I have no idea. I really don't know what my final time was. I did ok on the swim and bike, but blew the run. I had to walk at least two of the six miles. I am thoroughly embarrassed to even write that. I know my time was nowhere close to what my first Olympic distance event came out to be. Between the heat and the terrain of the bike leg, I was simply spent when I hit the run. The sun had also come out in full-force about a 1/4 of the way into the bike leg. I had no experience to deal with it physically and mentally and it took its toll on me. After the exposure to that type of course, I know much better what to expect.

The last comment I want to make is that the organizers of the course deserve a huge amount of credit. The packet pickup sessions went very smoothly and they did a great job of trying to explain the course and what we should expect. They did a good job marking the course and controlling things like car traffic. I simply liked the character and personality of the participants, organizers and volunteers. They all deserve a great deal of praise and appreciation. Despite having my worst race ever (yet), I had a great time. I can't wait to do it again.

A comment on "The moral imbalance of bailouts" (by Jeff Jarvis)

2008-09-23T14:08:58Z

I don't understand Jarvis's statement:

"I believe in the market but I also believe that the government must decide when to regulate it just enough. (That is the essence of why I am a Democrat.)" (The moral imbalance of bailouts)

My personal understanding of a general Democrats' opinion is that there is rarely a reason not to involve the government in our lives as long as it passes the litmus test of "helping" a given segment of the population. And this is exactly what makes me not a Democrat (and these days, less and less of a Republican).

]]> I don't believe that the government can do anything long term to help a given segment of the population. By making centralized choices over the value one group (purportedly) offers vs. another, you take away the basic freedoms and responsibilities we are afforded through our Constitution. Imbalances in markets and social systems are created that are catastrophic; much the same way the current financial turmoil is caused by this imbalance. At the end of the day, the derivative insurance market (for insuring default on loans) has led to the chain reaction burning the foundations away from large investment firms and banks. But, at the beginning of this chain reaction is the opinion of a "little known" Democrat - Andrew Cuomo, then as Pres. Clinton's HUD Secretary - who thought everyone should have access to loans to buy homes - even if they couldn't afford it in traditional terms (i.e. 20% down-payment and steady income). By setting up this perverse system whereby the most risky of mortgages/loans (i.e. those that showed a high likelihood of default) would be backed and "insured" by the government, we were creating an incentive for banks to loan money to people they shouldn't have and for people who shouldn't be provided credit be given a lot of it. So, while not the entire reason for our current dilemma, it is the typical political (both Democrat and Republican) interventionism that led to this mess - greed of the assholes who where trying to make a quick, and very big, buck from this tidy little loophole, notwithstanding. As they say, no good deed goes unpunished.

I had to make a commentary on Jeff's post because the rest of it is dead-on, in my opinion. He said it first and said it better than I could have:

"The problem for those left holding the bag - us - is that we have no leverage ourselves to demand conditions in return for our involuntarily generous rescue."

How generous of our Congress and President (and associated agencies) to hand out our and our kid's money to help the misdeeds of today's idiots (businessmen and politicians equally).

AIG and Regulation

2008-09-19T03:12:12Z

The past few days have been so depressing for me. Every time I opened a browser to peruse the news, my heart sank deeper and deeper. Article after article has been written about the current financial turmoil and a very, very small minority have shown the author to have any understanding of basic economics and the interaction between markets and government regulations. I haven't been over to the Wall Street Journal for some time. No reason in particular... I sometimes lose interest in writing in the WSJ because it has slowly degraded in quality over the past two decades. (I started reading the WSJ and Economist when I was twelve. Soon after, I added a number of university review magazines that I found at Barnes and Noble and other financial mags that I was able to get my hands on. I have continued to read many of these over the years and the only publication that seems to have kept up the quality of writing and reporting - i.e. how good the writing itself is and how thorough the reporting is - is the Economist. I guess I should add that I started reading Reason Magazine 10 years ago and [thankfully] haven't seen a decline there, either.)

]]> I digress. The news has been thoroughly depressing; not because of the market ruckus - that is to be expected after 10 years of real estate sales insanity - but because the reporting has been so sensational and poorly researched. So, as I said above, I happened to find myself looking through the WSJ and came upon this gem: Bad Accounting Rules Helped Sink AIG by Zachary Karabell. At the end of the article, he writes:

"There is one final irony: AIG was founded in Shanghai in 1919, when China was emerging from millennia of imperial rule. Over the next century, China turned away from capitalism. Almost 90 years later, AIG is now being taken over by the U.S. government just as the Chinese government is moving as quickly as possible to divest itself of control of major companies. One of those countries is growing fast; one isn't. Perhaps that is a coincidence; perhaps not."

Please, please read the article. This is not a government sucks the blood out of every free market article and this is not a business is nothing but a stick it to the man enterprise article either. Mr. Karabell does a fantastic job at explaining the complex reasons why what we are seeing with financial institutions is occurring so rapidly. He also deserves praise for thoughtfully cautioning the way we are dealing with the current problem. The underlying message: watch out for all those unintended consequences.

Why I believe in Perseverance with difficult business ventures

2008-09-17T03:16:24Z

At times I feel like there are eyes on me wondering why I don't walk away from a business that will (obviously and/or likely) never make me rich or famous. Besides the various hobbies I try to enjoy (photography, writing and training for triathlons), spending time with my wife, and the time required behind my desk at work, you would think that pursuing a business venture that has many limitations and a number of responsibilities would be senseless. I argue that sometimes none of this matters when you really enjoy a given pursuit. Sure, I like to complain about the costs of doing business, the customer whose expectations are unreasonable, the fact that I have better things to do with my time, and the possibility that I may find myself financially on the hook for expenses not covered by what is charged. At the end of the day, though, I have learned things through my side business activities that I never would have learned by focusing solely on my day job. Sometimes you do things because you like them. Sometimes you do things because you have to. Sometimes you do things, though, because you can learn from them. Here is what I have learned so far:

]]> ● Being in business with someone else requires that you know a lot about their character and capabilities. When it comes to picking business peers (or partners) - i.e. those who share in your responsibilities - I have failed miserably. Every person I have worked with (and I'm not referring to co-workers at work or subordinates - or even bosses - I'm referring to peers; those who share my responsibilities) has taken a completely different approach than I have in their approach to long-term business goals, management of resources, and choice in customers. The issue of customer base is a particularly sticky issue because I have had partners in businesses from which I didn't expect to provide a significant source of income, who had another agenda, so while I was very conservative in customer choices and investment required for said customers, they weren't [necessarily] (and understandably so). So, having similar and explicit goals is a necessary topic of conversation. When they don't converge, expect problems to begin.

● Regardless of the customer issue, the other fact remains that peers and partners are good when you are willing to subordinate yourself to their efforts or be able to offer significant technical help to their efforts. Otherwise, you must lead. In business, as in most situations, team efforts do not work often enough to pay off, so you are better off managing or be managed. People equate team effort with time and effort investments being applied equally among all involved with each participant having an equal vote or equal say. Nonsense. This is a recipe for disaster. If this were a successful approach, teams wouldn't have coaches, captains, or managers. In other words, they wouldn't have a specific leader for a specific function and responsibility.

● Time is the most valued commodity you have. You usually think that money is, but in many ways, money is irrelevant when you haven't spent your time wisely. This can be best expressed with my dad's favorite mantra: do it right the first time. Oh, those are words to live by. I have spent more money than I can begin to count fixing problems that were created because I didn't take the time to do things correctly the first time around. If you don't have the time, or ability, to manage your time efficiently for your endeavor, give it up. This commitment is more than one to the potential for financial reward. Time mismanaged is disastrous, so take and realize its use seriously.

● Financial reward is usually slow in coming and flows from sources you least expect. In our manufacturing enterprises, some of the most rewarding business relationships have been from customers that didn't appear to offer a "pie in the sky" financial windfall, but their business has helped us keep the lights on and pay the rent. As tedious as some of those types of relationships are (whether because of hand holding or responding to oddball support requests), they often endure the test of time and provide the cornerstone to your firm's financial success. There are a lot of ridiculous business deals that can make you a lot of money, but with that ridiculousness comes the likely demise of their or your success over the long run and without a conservative, but solid, source of income, you won't survive long term.

All that being said, after eight years, I continue to engage in a commodity hosting business because I like to. Up until now, I have come out slightly behind on the venture (it has also taken the form of four different businesses). From the statements above, however, I'm going to start taking my own advice and learn from my experiences. The first thing I'm going to do is start managing my time - i.e. create to-do lists and stick to them. One of the worst mistakes I have made is not sticking to a plan and finishing work I start.

I no longer have a partner, so the issue of delegation or subordination is settled. It is either me or someone doing the work I want/need them to do. No sharing in things to the end like bestest friends. If this fails, it will be because of my mismanagement or mistakes.

The last thing is the most important. I'm going to keep at it because I enjoy it. At the very core of this post is my wish to convey the reason why you should do anything: because it makes you happy. I think that the biggest successes are from those things you pursue that give you some real and tangible sense of satisfaction. For this reason, I shall try and persevere.