The Midday Burn - January 14, 2010

Bailouts!

I'm knee-deep in Andrew Ross Sorkin's Too Big To Fail, so the state of banking and free-market economics is in the front of my mind. I'll give the book a full review when I'm done, but I'd like to speak to a few observations I have seen as I reach the half-way point of the book.

1. A serious lack of diversity
Almost all of the CEOs and high-level decisions makers are white, ivy-league educated, Jewish or WASP men. They recruit talent from the same schools and social networks they are a part of. The call themselves the best and brightest, however, they operate in a bubble that caused them to drink their own Kool-Aid and damn near destroy our financial system. Come on... its 2010, time to let the people of color and women into the arena, just like we see in many other facets of life.

2. No Accountability
So far, Dick Fuld is the most fascinating character in the book, as his personality and detachment from the day to day of Lehman Brothers cause it to crumble. Its amazing to read how someone that is supposed to run a company and make it a long-term success can cause it to fail so miserably.

3. Socialism
I laugh when I read about pure market people talk about socialism like its the worst thing that has ever happened to the world. Its not racism; its socialism. So many Americans are quick to point out where their ancestors are from (Irish-American, etc) in Europe, which is a very socialist continent. Why don't they claim this part of their heritage?

To a larger point... People that really know me understand that I am a libertarian, and a devotee of Ayn Rand. I count Atlas Shrugged and The Fountainhead as two of the most influential books that I have ever read. I am a true free-market advocate, and believe in my ability to succeed due to the fact that we have so much freedom. That being said, I cannot stand the smugness of the finance underlings that push paper and bean count and think their jobs are sooo important. They're not; you're paid well, but you're still an employee, just like anyone else. No need to feel condescending for little people working in NPOs and for the public sector; you're job is not guaranteed, and at the end of the day, its all about where folks finish, not start. The job "correction" that's taken place in the financial market has been a subtle reminder that nobody is safe. (Okay, I'm over it.)

January 11, 2010 - Morning Burn

Playoff Football

You can't beat the NFL playoffs... I mean March Madness is great, but it is all about rooting for an underdog and about the office pool. Fun to watch, but since players graduate or go to the pros, you don't get great story lines that go for multiple years. MLB playoffs are great, but because of the series format, only the clinching games seem to be must-see tv; same goes for the NBA. But the NFL playoffs, starting with Wild Card weekend, is the best sports month a fan could wish for. Even though my beloved Giants did not make it, I'm still able to root for each team in each game without worrying about Big Blue implications.

I am a professed Eagles hater, so it was wonderful to see the Dallas Cowboys wash the Birds out of the playoffs this year. I have a great respect for what the Reid-McNabb Eagles have accomplished, bringing their franchise out of the basement and making them a dangerous, perrenial playoff contender. But I think they have seen an official closing of their window, as Brian Westbrook's health is in question, and the defense is not what it used to be. Losing both Jim Johnson and Brian Dawkins has finally come back to haunt them. However, the Birds would be foolish to trade McNabb, as he is the only QB that will give them a chance to make the playoffs every year. It would be crazy to think that Michael Vick, and or Kevin Kolb could replace McNabb, but it might happen. Or, they might trade Vick, and keep McNabb, leaving Kolb as QB in waiting. We'll see.

It was also great to see the Patriots get rocked by the Ravens. It was embarrasing how much the NFL covered up "SpyGate" and annoited BB a genius. Well, since he got busted cheating, he's looked human, losing the Super Bowl to Eli and Co, and now losing for the first time at home in the playoffs. This doesn't take away the three SBs that he's won, but the 2010 Patriots looked alot like the 2006 New York Yankees. If they don't reload, they will be in big trouble.

Here are my predictions for next week:
AFC
Jets at Chargers: Chargers 28 Jets 17
Ravens at Colts: Ravens 21 Colts 14

NFC
Cardinals at Saints: Cardinals 34 Saints 31
Cowboys at Vikings: Cowboys 24 Vikings 17

By the way, NY Knicks are 15-21... currently the 7th seed in the Eastern Conference... Lets Go!