Friday, January 29, 2010

Where Can I Find "The Complete Idiot's Guide to Optimism"?


Today I read and reflected on this article by Republican speechwriter Mark Lange. In it, he places the responsibility for job creation squarely on the shoulders of the pessimistic American. He asserts that yes, there are major challenges to finding employment, and no, we cannot rely on government spending to create the necessary amount of jobs. On these points we agree.

Although I am relatively green in the working world, I have heard from countless people that this is the worst job market in their entire lifetime. I know people from every walk of life that have been laid off. It's extremely difficult to maintain optimism about the country, the economy, and our personal well-beings when faced with such situations. Lange claims that the only the only true remedy is a strong dose of optimism. That seems a repugnant medicine to swallow for many.

Americans feel powerless when faced with being laid off, defaulting on a mortgage, being delinquent on credit card payments, and experiencing anonymity among a labor pool that numbers in the millions. We are ready, willing, and more-than-able to work, but no one will give us an opportunity. What are we to do?

I take comfort in the borderline-sinister words of Rahm Emanuel: "Never let a crisis go to waste." Pundits would argue that the Democrats have taken advantage of this crisis to expand the role of government. Other talking heads would argue that the Republicans have seized the crisis to become the party of "No" and steer the nation in the direction of isolationism. Let's set aside the partisan punditry for a moment and consider what this maxim could mean to us - the American lay-person.

I am a firm believer that when one door closes, two others open. And there is always great opportunity in the face of great adversity. Collectively and individually, we need to pick ourselves up and dust ourselves off. Relying on our pessimism and frustration with Washington and Wall Street to reverse our fortunes will only produce mediocre and sluggish results. There is no spoon-fed panacea to cure our recessionary woes and no legislative silver bullet to kill unemployment. Astute and measured policies will certainly help, but we've got to take the reigns on this one. We have to create opportunity, and it starts with one innovative idea at a time. New concepts, new techniques, and new applications of knowledge are requisite in every sector of the economy. Individuals acting in their own self-interest in creative ways are guaranteed produce opportunities. And those enterprises will compound upon each other profession by profession, industry by industry, and city by city.

Common Since: Economic recovery will require an aggregate approach. Erudite regulations and increasingly accessible credit will help. But there is no magic hat from which to pull out a rabbit. The resurrection of the American economy relies upon the renaissance of American optimism. Solutions are not going to come from the top down, but from the inside out. I searched Amazon.com for The Complete Idiot's Guide to Optimism, however it doesn't exist. We'll have to start writing it ourselves, one page and one person at a time.

Thursday, January 28, 2010

Pres. Obama to Announce $ For FL High-Speed Rail Today

President Obama will be at the University of Tampa this afternoon to announce an ARRA grant of $1.25 billion for Florida's SunRail high-speed Orlando-to-Tampa connector. This announcement has been long speculated and confirmed in the President's State of the Union speech last night:

"Next, we can put Americans to work today building the infrastructure of tomorrow. From the first railroads to the interstate highway system, our nation has always been built to compete. There's no reason Europe or China should have the fastest trains, or the new factories that manufacture clean energy products.

Tomorrow, I'll visit Tampa, Fla., where workers will soon break ground on a new high-speed railroad funded by the Recovery Act. There are projects like that all across this country that will create jobs and help move our nation's goods, services and information."

I am very pleased that the President will be getting back to the true stated purpose of the stimulus. I've been very critical about how the $787 billion ARRA has been spent to this point, like most Americans. Infrastructure investment deserves to be the cornerstone of this massive appropriation, which has hitherto been shuffled among the bureaucratic hierarchy. Let's hope this is a turning point that, when combined with a plan for small business loans, will have a greater effect on improving the fortunes of an increasing amount of Americans.


http://www.tampabay.com/news/politics/national/article1068768.ece

Thursday, January 21, 2010

Ehh, Why Not?

1.9 isn't a very big number by itself. And 1.9 trillion doesn't seem that intimidating if you ignore the zeroes behind it. That's the number ($1,900,000,000,000) that Congressional Democrats want to increase the debt ceiling. That would bring the total debt ceiling to $14.3 trillion. What a splendid idea. Can you please tell me why you need this? “We have to do this. The alternative is worse,” said Senate Finance Committee Chairman Max Baucus (D—Mont.) in a brief interview. Oh... OK.

Common Since: This month I owe around $700 on my credit card due to the nice trip I took to Colorado. I think I'll just knock off the zeroes and pay Visa $7. Why not?

http://www.politico.com/news/stories/0110/31759.html

Monday, January 18, 2010

National Fire Sale! For a Limited Time Only!


I have devised a simple and elegant way to lift America out of this recession by next week, or possibly sooner. I'm still working out the complicated policy language for the legislation, but I intend to have a draft bill ready to present to Congress and President Obama in about 15 minutes. Here's the gist of it:

Let's have a one week fire sale: a warehouse liquidation, you might say. Struggling corporations are laying off their employees, so why can't the federal government cut their dependent states? Think of it as "losing the dead weight". Here's how it goes: we give certain privileged nations a limited one day preferred purchase option. Precedence goes to the former colonizing owners of a given state. If they fail to meet our discounted minimum purchase price, then the states go into a one week-long auction. Now, we could hold that auction on Ebay, or at the steps of the U.S. Supreme Court. But I don't want to "cheapen" the experience for our potential buyers. Therefore the auction will be held at Christie's of London, and fine champagne and caviar will be provided. (Each bidder is limited to two food and beverage tickets.)

First on the chopping block is the doomed (I mean sunny and culturally significant) state of California. Spain will have the preferred purchase offer, but I have a feeling they will pass and Mexico will win it in the auction for 23 pesos (roughly $1.82). That's fine with us because that's $26.3 billion more than the state of California is currently worth.

Spain will also get an early chance to obtain New Mexico, Arizona, Colorado, and Texas, all a part of their former colonies.

Florida will be offered in a pre-auction auction between Spain and England (former colonizers) and Germany (whose citizens love to travel here). Puerto Rico will be tacked-on to sweeten the deal.

France will be given the opportunity to buy back the entire Louisiana Purchase. I believe they will hold out for a better price, but a bidding war will erupt between France and Canada, who is looking to expand into warmer climates. The two nations will eventually compromise and split it into north/south territories, but America will ultimately score a hefty sack of gold for the sale. Win-win-win situation.

I also predict Canada will gain North Dakota, Wisconsin, Minnesota, Michigan, and Illinois. It's a good fit because they all like hockey and talk funny.

Russia will have a solid shot at Alaska. They can enjoy being cold together and drinking excessively.

We'll hold out from auctioning off Nevada. The plan is to wager it all on the craps table at the Bellagio. C'mon lucky sevens.

The Mormons can simply have Utah, free of charge. Glenn Beck will hastily establish a dictatorship.

I will buy Wyoming and Montana (using my position as Auction Czar to gain insider trading) for $3 and an old fraternity t-shirt. It's so damn beautiful up there. And I'll take out a 99-year ground lease on Oregon. I've always wanted to own a wine-producing state.

That will leave roughly the original 13 colonies, plus a handful of assorted states, under the control of the U.S. government. The country will be in excellent fiscal standing and will once again have the strongest economy in the world. Wham, bam, thank you m'am.

Common Since: Sell it all. Get out while the gettin's good. I'm going to run to the print shop after work and have some flyers drawn up.

Why Rail, Why Now?


Here is an interview from the Bradenton Herald with Stuart Rogel, CEO of Tampa Bay Partnership. Myself and others have been working with TBP to support public transit initiatives. Cross-state high-speed rail and regional rail/bus networks need our support if we are going to improve the physical development and quality of life of our state. This is a long-term vision that requires immediate action. The reason Florida looks the way it does today is because a generation of leaders were not prepared for the unprecedented growth in Florida's population during the 20th century.

Will it be cheap? No. Will it be easy? Not likely. Will it be worthwhile? Most definitely.

I will report more on my position and the logic behind it in future posts. Be on the lookout for information concerning TRANSITion Tampa Bay, a group we founded to encourage support among young professionals.

Wednesday, January 13, 2010

The Case for Regulation

In reference to yesterday's post, here is another viewpoint from Robert Reich, Secretary of Labor in the Clinton administration. He may a too far to the left of me on some issues, but here he supports my stance that the investment vehicles and trading practices of financial institutions need new regulations to prevent future economic chaos.

http://www.ft.com/cms/s/0/0666adfe-ffb6-11de-921f-00144feabdc0.html?nclick_check=1

Tuesday, January 12, 2010

The Time to Regulate is Now

I am a defender of free markets, low taxes, and minimal regulation. However, there is a reasonable and moderate extent to which these principles are effective. The current global economic situation is a direct result of actions within the financial world. Obviously "Exhibit A" is the use of loosely-regulated mortgage backed securities, the most risky form of collateralized debt obligations. Since the beginning of the Great Recession and the bailout of assorted financial institutions including AIG, Citi, and BoA, no significant regulatory reforms have been enacted to prevent the continuation of similar practices. I'm no financial guru, nor can I comprehend Gaussian copula models (models for pricing CDOs), but I can tell you that the financial system needs a new set of limits. Financial and banking institutions have been aching to pay back TARP funds and return to profitability, and I'm not so sure I can trust them to avoid new unorthodox and seriously risky investment vehicles. While the White House and Congress have been hammering away at passing health care reform and carbon cap-and-trade legislation with exorbitant projected costs, they have put financial reform on the back-burner. 2009 was a year of misplaced priorities. The time to regulate is now.

Further reading:

http://online.wsj.com/article/SB10001424052748703652104574652242436408008.html