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News

BusinessWeek Calls Our Economy “Kapitalism”

The latest issue of BusinessWeek, a national periodical, is titled “The Future of Kapitalism” and features Treasury Secretary Henry Paulson in a post reminiscent of Vladimir Lenin. Wikipedia suggests the technique of replacing C with K in names started with the Yippies, but I remember it as a common tactic in punk rock for arguing that “Amerika” was really a fascist state. Unfortunately, what was humorous hyperbole in the 80s seems almost too real today. It is remarkable that a mainstream magazine would offer up this analysis by implication if not explicitly.

The lead story from the magazine catches a Federal Reserve executive quoting Deng Xiaoping, the dictator who wrested power from Mao in China: “No matter if it is a white cat or a black cat, as long as it can catch mice, it is a good cat.” This ugly expression of pragmatism actually signaled progress for China, but for a nation founded on freedom, it’s a dark sign. We ought to act on principle. Even if we adopt mistaken principles, we are far better than the cynics who adopt the idea that no principle is useful. “Anything could work, at least for a while, so why not try it?”–this is the path that makes possible any atrocity in the name of the greater good.

The article calls it ironic that a Republican administration ushered in these dangerous new powers for the treasury, but this is exactly the situation that had to happen eventually. The conservative movement has had the “what” of economic policy right but they never had the “why”. They always argued the pragmatic case, that capitalism was right because it produces the most wealth. Capitalism is right because it protects our natural right to property. It isn’t a terrible system that simply happens to be the best we can come up with. It is a perfect system derived from things we can observe about reality.

The weakness on the Republicans’ part has been demonstrated by “compassionate conservatives”. They tend to act on that compassion with misplaced mercy. Mercy is the negation of justice. It is the act of denying justice to save someone from their own folly. And so, we see fools who ran their banks with dangerous abandon rescued. For the businessmen who were cautious, who did what they could to protect their future–and therefore their employees–will be asked to give up the wealth they’ve earned so that it might be given to losers. I suppose there isn’t much compassion left over to be felt for the responsible people.

I hope the election is taken as a mandate by congress to reverse this dangerous course. This can happen if a significant number of incumbents are thrown out, and if Obama can hold on to win the election.

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Personal

So Long, Old Pal!

Last week I took my dog to the vet for the last time. He and I made that trip many times over his life, more often in the past year. This time, I was pretty sure that he wouldn’t be coming home with me because he was so sick. He struggled with sores on his skin that would pop up mysteriously. They could be painful at times, to be sure, but they’d never laid him low like this.

Angus was born August 28, 1993 in Bear River City, Utah. You might be thinking I’m putting you on, but I know this and remember it well. Angus was a purebred American Black and Tan Coonhound registered with the United Kennel Club. I was 23 and looking for a dog. I did a little research and settled on a coonhound for a couple of reasons. My first reason was that I prefer hounds. Growing up, my mom bred elkhounds, although there were plenty of other dogs around, too. Now, I can get along with just about any dog just like I can get along with just about any kind of person, but I always like how intelligent hounds seemed to be. My second reason came from the description of the bread I found in an ancient hunting dog book I found. The traits of this breed sounded like a hound to the extreme. And I’ve always been attracted to extremes.

My first dog was an elkhound who was tough as nails, a bitch named Pepper. It had been about three years since she had passed. Unfortunately for me, my mom put her down while I was away. Anyway, I wasn’t in the mood for taking care of another dog after that, and it was convenient not to have to while I was dealing with college. But in the last year of college, suddenly I was ready.

Although you might think of Where the Red Fern Grows, and therefore the South, when you think of a Coonhound, there are plenty of enthusiasts everywhere, including Utah and California. The guy I bought Angus from used his dogs to hunt mountain lion and bear. I remember that day well. I had a 1979 GMC pickup with a V8 and a stick that we called Shannon. The girl I bought the truck from was a rodeo queen who included a dashmat with her name embroidered on it. The guy I bought Angus from had a whole litter to get rid of, and he had his stud in one pen and the bitch with the puppies in another. Both of them whined pretty loudly for each other.

I knew I wanted a male puppy, so that narrowed the choice down to three pups. We pulled them out on the grass and I picked the pup who was neither the smallest nor the largest. We took him inside to wash him off since the pups were all covered in mud. As he washed off Angus in the sink he asked me, “you aren’t going to make this dog a pet are you?” The implication was that it was a waste of a good hunting dog. Angus’s grandfather was a champion hunter. But the breeder clearly needed to get this litter out the door. I paid $100, put Gus in a box on the front seat and drove home.

He was talking to me in little puppy whines, probably missing him mom. I told him not to worry, that he was going to have a good life because he was with me now. His entire life I did everything I could to keep that promise. My wife recently wrote that she’s never known someone to love a dog more than I loved Gus. She’s right.

My last year of college, I lived in a little house in downtown Ogden with my childhood friend, Ricky. My senior year at Weber State University was low stress and included lots of free time. With few responsibilities and a low cost of living, there was ample time to loaf for both of us, and we enjoyed having the little dog running around. We called him a shark back then because he would run up to you and nip you, not hard though.

Taking care of Gus was a great learning experience. He was stubborn as hell. And for the first night I had him, I somehow thought he could sleep in the kitchen by himself. That was a miserable night! My mom gave me great advice on how to approach the problem. She explained that he’d just been taken from his mother, and he was probably used to cuddling up with the pack at night. Why not take him into bed with me, she asked. I did, and that solved the howling at night.

So, for most of his life, Gus was accustomed to sleeping on a human bed. At first, he slept on my neck, which wasn’t half bad during a Utah winter. He soon preferred the foot of the bed, probably to avoid being thrown around when I slept. Even after my wife and I were married, he continued to expect a spot on the bed, and we made room for him with a king size mattress.

Other than sleeping in the sun, there were a few things that Gus loved. He loved butter, coconut and chocolate. If he smelled any of those, he’d run faster than if he smelled meat. Yeah, I gave him chocolate to eat sometimes but not much in later life. They say it’s poisonous for dogs, but alcohol is poisonous to humans, too. If he was too wound up, it seemed to calm him down. He also loved running free. It seemed to be a great game for him to figure out how to get out of the house. He would dash through the front door if you gave him any opening. He would check the gates in the yard often to make sure they were latched, and he could get them open with his paw if they weren’t.

He didn’t care too much for cats, squirrels or raccoons. You can bet that until he got too old that any critters that came in the yard left quickly after his howling. He also didn’t like the taste of mint at all. It might have come from a time when I caught him eating cat shit and I brushed his teeth with human toothpaste. Sometimes I used to open up a bottle of methol rub to get his attention and to see his lips curl in a funny way.

When he was young, he like squeaking toys and tearing up carboard boxes. I used to empty a box of coke cans and stick it on his head. He’d toss the box in the air and eventually tear it to shreds. That was a lot of fun to watch. I also used to take him to open fields to watch him run. That was a thing of beauty, one thing his body was built for. There’s a Neil Young song called Long May You Run that’s about a car, but I used to sing it to Gus because that’s what I always wished for him.

There’s nothing a dog wants more than the attention of his master, and lots of it. It was rough for Gus to accept that when I met my wife, I wanted to spend a lot of time with her instead. It wasn’t long, though, that he started loving her as much as I do. Gus was big, 70 pounds and all muscle, but he insisted on jumping up on the couch to cuddle against your legs. After Vicky won him over with daily walks, he’d just as soon cuddle with her than me.

The Dog

All hail the dog
Faithful companion
Lover of friends
Hater of enemies

Persistent, even stubborn
Curious, even mischievous
You never fail to greet with a smile
You wait anxiously for my return
And celebrate upon that event
You beg for attention, and food

Playful if any moment requires
Yet serious if that need arises
Let enemies beware while you breathe
But until they come, let us play

When my first son came home, Gus had another adjustment to accept. By that time he was getting a bit old, showing some gray on his jowls. He wasn’t interested in playing anymore, but he was always gentle and tolerant of the craziness a toddler can bring. Likewise, when Henry was born two years ago he had to tolerate a  baby all over again. Gus got progressively slower and sleepier, but he let the kids pull on his tail and never growled at them. He might walk off and let a boy flop on the floor. He never tried to hurt them.

Gus lived to be a little bit more than 15 years old. That’s probably more than I could have hoped for in a big dog. Moreover, he was more enjoyable and loving than I had any right to expect. It’s damn right I loved that dog because he loved me. And in those last days of his life, I stayed with him. I held him in my lap and told him it would be OK. There was literally nothing left for us except the end and a goodbye. The moment he passed wasn’t as hard as the anticipation or the grief afterward. I’m thankful that I was reminded that I had the courage to stay and that it was the right thing.

Long ago, I wrote a poem for Gus. It’s been here on the site forever, but I’ll stick it here again. These are my feelings about the dog, meaning both the species and a particular pal I called Angus.

Categories
Business Politics

No Bailout. You Fail? Out!

I suspect (hope!) we’re headed towards a tar and feathering of two jokers who have attempted to pull one over on us: Paulson and Bernanke. Both are urging swift action with no time to think. Bernanke is quoted in a New York Times article as saying “There are no atheists in foxholes and no ideologues in financial crises.” In fact, there are many atheists in foxholes, brave soldiers who risk their lives despite not believing in an afterlife. And ideas are precisely what’s needed now, not a rush for a fresh grab of power by the government.

Paulson is quoted as saying, “There was only one way that we could reassure the markets and deal with a very significant and broad-based freezing of the credit market. There was no political calculus. It was overwhelmingly obvious.” To call the solution obvious is to insult your intelligence and bully you into not responding. It’s a great tactic if you’re selling used cars.

George Will has a brilliant piece today, in which he states “The essence of this crisis is lack of knowledge, including the inability to know who owes what to whom, and where risk resides. In such a moment, government’s speed should not vary inversely with its information.” He goes on to argue that handing over such a gigantic sum to Paulson for spending as he wishes, answering to no one, essentially creates a fourth branch of government.

This is exactly what what I was warning of in my last post, Don’t let this “crisis” be another excuse to give away your rights.

Congress has been handing over responsibility to special appointees of the executive branch for many years, which is arguably unconstitutional. Congress passed the laws that created this crisi. Congress approves the appointments of Bernanke and Paulson. Congress has failed and should be replaced unless they somehow get the guts to stop this insanity right now.

Bush has failed, too. His team has been meddling with the market and created this immediate crisis. Recall that they argued that they needed to bail out Bear Sterns in March 2008 in order to avoid what we’re going through now. Given that it hasn’t worked, why are we even considering more of the same?

I sincerely hope that our elected officials do not hand over the power and responsibility we’ve given them to these unelected, anti-thinking hucksters. I hope they wake up and realize most of us do not want a bailout for failures. What we need now is careful, thoughtful deliberation in public.  If congress chooses to fail, there should be no bailout for them either. We should sweep them all out of office.

Update: Is this crisis even a crisis at all? It’s possible that banks are simply measuring their worth according to misguided regulation. Read Maybe the Banks Are Just Counting Wrong from Saturday’s WSJ. That makes me hope there’s deadlock on this bailout plan for long enough for everyone to figure out we don’t need it.

Categories
News Politics

Don’t let this “crisis” be another excuse to give away your rights

Have you seen this pattern before?

  1. The government enacts new laws that subvert natural behavior for the good of society
  2. The government waits for this subversion to create a crisis
  3. The government rushes in to trade your liberties for security from the crisis

We saw this pattern seven years ago. Leading up to 9/11, the government willfully ignored the threat of terrorism. I suppose the excuse was to keep people of the world happy with America. We wouldn’t want to upset other countries by responding to attacks by terrorists. Unfortunately, this timebomb went off in the most spectacular way. And many of us rushed to hand over out liberties to protect us from another attack.

We’re seeing it again. About 16 years ago, the government started enacting policy to force lenders to stop “discriminating” against high risk borrowers. They appealed to a sense of egalitarianism and argued that everyone deserved a chance to own their home. They made it so that it was impossible to be a lender and refuse to lend to people who obviously could never pay back the loans.

The fruit of this misguided vine began to ripen over the past year or so as we’ve seen defaults rise.  The government has been trying desperately to push back the tide with mountains of interference in the markets. In recent years they have been pushing the prime rate down in an effort to draw capital into the market and cover for mounting losses. Now we’ve reached the end of the line. The waiting is over and we’ve got the crisis.

Naturally, our most visible representatives of government, presidential candidates McCain and Obama, are offering the bargain that always comes in part three of this pattern. They spin a story about how businessmen have acted like gamblers, recklessly risking everything on higher profits. And now is the time, they say, when government must step in and take control. McCain went so far as to call for the firing of the head of the SEC, a position that the president cannot hire or fire. Furthermore, when both parties are offering the same solution with only degrees of severity to distinguish them, it’s likely they are wrong.

The people who need to get pink slips work in the House of Reprentatives and the Senate. They are the real source of this crisis. They pass the laws that screw up the natural market forces. They approved Greenspan and Bernake as successive chairmen of the Federal Reserve. It was under their watch that the Fed published guidelines such as Closing The Gap:A Guide To Equal Opportunity Lending. On page 15 of this document, there are the following guidelines for lenders, including this insane paragraph about sources of income (emphasis mine).

Sources of Income:  In addition to primary employment income, Fannie Mae and Freddie Mac will accept the following as valid income sources: overtime and part–time work, second jobs (including seasonal work), retirement and Social Security income, alimony, child support, Veterans Administration (VA) benefits, welfare payments, and unemployment benefits.

Any reasonable person would conclude that being on welfare or drawing unemployment is a sure sign of someone who will likely not be able to make mortgage payments!

What we desperately need now is a swift pullback of control of the markets. Losers need to fail now, more than ever. We should not be swayed by the creators of crisis offering to bail us out. We should not believe them when they say, “we just need to suspend the constitution until we fix this.”

Categories
News

On Clear Night Sky: Zend Partners with Adobe

Last Tuesday Andi Gutmans announced that Zend was partnering with Adobe to get PHP and Flex working better with each other. I wrote an analysis on the Clear Night Sky blog.

Read the entire post on CNS.