Converting Bond Quotes

Cruelty links all three primitives [pleasure, pain, and desire]: Spinoza defines it as the desire to inflict pain on someone we love or pity. Financial speaking, cruelty is analogous to a convertible bond whose debt and equity depend on three economic underliers: the stock price, the level of interest rates, and the credit worthiness of the company's debt.

Ephram watched as Miss P went to give the girl a hug. Ruby bristled and inched back, shaming the older woman into converting her gesture into straightening Tabasco bottles on a nearby shelf.

What is the object of human life? The enlightened conservative does not believe that the end or aim of life is competition; or success; or enjoyment; or longevity; or power; or possessions. He believes instead, that the object of life is Love. He knows that the just and ordered society is that in which Love governs us, so far as Love ever can reign in this world of sorrows; and he knows that the anarchical or the tyrannical society is that in which Love lies corrupt. He has learnt that Love is the source of all being, and that Hell itself is ordained by Love. He understands that Death, when we have finished the part that was assigned to us, is the reward of Love. And he apprehends the truth that the greatest happiness ever granted to a man is the privilege of being happy in the hour of his death. He has no intention of converting this human society of ours into an efficient machine for efficient machine-operators, dominated by master mechanics. Men are put into this world, he realizes, to struggle, to suffer, to contend against the evil that is in their neighbors and in themselves, and to aspire toward the triumph of Love. They are put into this world to live like men, and to die like men. He seeks to preserve a society which allows men to attain manhood, rather than keeping them within bonds of perpetual childhood. With Dante, he looks upward from this place of slime, this world of gorgons and chimeras, toward the light which gives Love to this poor earth and all the stars. And, with Burke, he knows that "they will never love where they ought to love, who do not hate where they ought to hate.

Financing is an art form. One of the challenges is how to correctly finance a company. In certain periods of time, more covenants need to be put into deals. You have to be sure the company has the right covenant -- to allow it the freedom to grow, but also to insure the integrity of the credit. Sometimes a company should issue convertible bonds instead of straight bonds. Sometimes it should issue preferred stock. Each company and each financing is different, and the process can’t be imitative.

Rees maintains that six numbers in particular govern our universe, and that if any of these values were changed even very slightly things could not be as they are. For example, for the universe to exist as it does requires that hydrogen be converted to helium in a precise but comparatively stately manner—specifically, in a way that converts seven one-thousandths of its mass to energy. Lower that value very slightly—from 0.007 percent to 0.006 percent, say—and no transformation could take place: the universe would consist of hydrogen and nothing else. Raise the value very slightly—to 0.008 percent—and bonding would be so wildly prolific that the hydrogen would long since have been exhausted. In either case, with the slightest tweaking of the numbers the universe as we know and need it would not be here. I

If we had days and weeks I could begin to tell you the story of the subtle knife, and the Guild of the Torre degli Angeli, and the whole sorry history of this corrupt and careless world. The Specters are our fault, our fault alone. They came because my predecessors, alchemists, philosophers, men of learning, were making an inquiry into the deepest nature of things. They became curious about the bonds that held the smallest particles of matter together. You know what I mean by a bond? Something that binds? “Well, this was a mercantile city. A city of traders and bankers. We thought we knew about bonds. We thought a bond was something negotiable, something that could be bought and sold and exchanged and converted…. But about these bonds, we were wrong. We undid them, and we let the Specters in.” Will asked, “Where do the Specters come from? Why was the window left open under those trees, the one we first came in through? Are there other windows in the world?” “Where the Specters come from is a mystery—from another world, from the darkness of space…who knows? What matters is that they are here, and they have destroyed us. Are there other windows into this world? Yes, a few, because sometimes a knife bearer might be careless or forgetful, without time to stop and close as he should. And the window you came through, under the hornbeam trees…I left that open myself, in a moment of unforgivable foolishness. There is a man I am afraid of, and I thought to tempt him through and into the city, where he would fall victim to the Specters. But I think that he is too clever for a trick like that. He wants the knife. Please, never let him get it.

If we had days and weeks I could begin to tell you the story of the subtle knife, and the Guild of the Torre degli Angeli, and the whole sorry history of this corrupt and careless world. The Specters are our fault, our fault alone. They came because my predecessors, alchemists, philosophers, men of learning, were making an inquiry into the deepest nature of things. They became curious about the bonds that held the smallest particles of matter together. You know what I mean by a bond? Something that binds? “Well, this was a mercantile city. A city of traders and bankers. We thought we knew about bonds. We thought a bond was something negotiable, something that could be bought and sold and exchanged and converted…. But about these bonds, we were wrong. We undid them, and we let the Specters in.” Will asked, “Where do the Specters come from? Why was the window left open under those trees, the one we first came in through? Are there other windows in the world?” “Where the Specters come from is a mystery—from another world, from the darkness of space…who knows? What matters is that they are here, and they have destroyed us. Are there other windows into this world? Yes, a few, because sometimes a knife bearer might be careless or forgetful, without time to stop and close as he should. And the window you came through, under the hornbeam trees…I left that open myself, in a moment of unforgivable foolishness. There is a man I am afraid of, and I thought to tempt him through and into the city, where he would fall victim to the Specters. But I think that he is too clever for a trick like that. He wants the knife. Please, never let him get it.” Will and Lyra shared a glance. “Well,” the old man finished, spreading his hands, “all I can do is hand the knife on to you and show you how to use it, which I have done, and tell you what the rules of the Guild used to be, before it decayed. First, never open without closing. Second, never let anyone else use the knife. It is yours alone. Third, never use it for a base purpose. Fourth, keep it secret. If there are other rules, I have forgotten them, and if I’ve forgotten them it is because they don’t matter. You have the knife. You are the bearer. You should not be a child. But our world is crumbling, and the mark of the bearer is unmistakable. I don’t even know your name. Now go.

To start with, at that time I'd gone to bed with probably three dozen boys, all of them either German or English; never with a woman. Nonetheless -- and incredible thought it may seem -- I still assumed that a day would come when I would fall in love with some lovely, intelligent girl, whom I would marry and who would bear me children. And what of my attraction to men? To tell the truth, I didn't worry much about it. I pretended my homosexuality was a function of my youth, that when I "grew up" it would fall away, like baby teeth, to be replaced by something more mature and permanent. I, after all, was no pansy; the boy in Croydon who hanged himself after his father caught him in makeup and garters, he was a pansy, as was Oscar Wilde, my first-form Latin tutor, Channing's friend Peter Lovesey's brother. Pansies farted differently, and went to pubs where the barstools didn't have seats, and had very little in common with my crowd, by which I meant Higel and Horst and our other homosexual friends, all of whom were aggressively, unreservedly masculine, reveled in all things male, and held no truck with sissies and fairies, the overrefined Rupert Halliwells of the world. To the untrained eye nothing distinguished us from "normal" men. Though I must confess that by 1936 the majority of my friends had stopped deluding themselves into believing their homosexuality was merely a phase. They claimed, rather, to have sworn off women, by choice. For them, homosexuality was an act of rebellion, a way of flouting the rigid mores of Edwardian England, but they were also fundamentally misogynists who would have much preferred living in a world devoid of things feminine, where men bred parthenogenically. Women, according to these friends, were the “class enemy” in a sexual revolution. Infuriated by our indifference to them (and to the natural order), they schemed to trap and convert us*, thus foiling the challenge we presented to the invincible heterosexual bond. Such thinking excited me - anything smacking of rebellion did - but it also frightened me. It seemed to me then that my friends’ misogyny blinded them to the fact that heterosexual men, not women, had been up until now, and would probably always be, their most relentless enemies. My friends didn’t like women, however, and therefore couldn’t acknowledge that women might be truer comrades to us than the John Northrops whose approval we so desperately craved. So I refused to make the same choice they did, although, crucially, I still believed it was a choice.

The diversity of India is tremendous; it is obvious: it lies on the surface and anybody can see it. It concerns itself with physical appearances as well as with certain mental habits and traits. There is little in common, to outward seeming, between the Pathan of the Northwest and the Tamil in the far South. Their racial stocks are not the same, though there may be common strands running through them; they differ in face and figure, food and clothing, and, of course, language … The Pathan and Tamil are two extreme examples; the others lie somewhere in between. All of them have still more the distinguishing mark of India. It is fascinating to find how the Bengalis, the Marathas, the Gujaratis, the Tamils, the Andhras, the Oriyas, the Assamese, the Canarese, the Malayalis, the Sindhis, the Punjabis, the Pathans, the Kashmiris, the Rajputs, and the great central block comprising the Hindustani-speaking people, have retained their peculiar characteristics for hundreds of years, have still more or less the same virtues and failings of which old tradition or record tells us, and yet have been throughout these ages distinctively Indian, with the same national heritage and the same set of moral and mental qualities.    There was something living and dynamic about this heritage, which showed itself in ways of living and a philosophical attitude to life and its problems. Ancient India, like ancient China, was a world in itself, a culture and a civilization which gave shape to all things. Foreign influences poured in and often influenced that culture and were absorbed. Disruptive tendencies gave rise immediately to an attempt to find a synthesis. Some kind of a dream of unity has occupied the mind of India since the dawn of civilization. That unity was not conceived as something imposed from outside, a standardization of externals or even of beliefs. It was something deeper and, within its fold, the widest tolerance of beliefs and customs was practiced and every variety acknowledged and even encouraged.    In ancient and medieval times, the idea of the modern nation was non-existent, and feudal, religious, racial, and cultural bonds had more importance. Yet I think that at almost any time in recorded history an Indian would have felt more or less at home in any part of India, and would have felt as a stranger and alien in any other country. He would certainly have felt less of a stranger in countries which had partly adopted his culture or religion. Those, such as Christians, Jews, Parsees, or Moslems, who professed a religion of non-Indian origin or, coming to India, settled down there, became distinctively Indian in the course of a few generations. Indian converts to some of these religions never ceased to be Indians on account of a change of their faith. They were looked upon in other countries as Indians and foreigners, even though there might have been a community of faith between them.6

To understand what that means in commonsense terms, consider a person who plans to live off the income from $1 million invested in T-bills. Suppose he retires in a given year and converts his investments into an inflation-protected annuity with a return of 4% to 5%. He will receive an annual income of $40,000 to $50,000. But now suppose he retires a few years later, when the return on the annuity has dropped to 0.5%. His annual income will now be only $5,000. Yes, the $1 million principal amount was fully insured and protected, but you can see that he cannot possibly live on the amount he will now receive. T-bills preserve principal at all times, but the income received on them can vary enormously as return on the annuity goes up or down. Had the retiree bought instead a long-maturity U.S. Treasury bond with his $1 million, his spendable income would be secure for the life of the bond, even though the price of that bond would fluctuate substantially from day to day. The same holds true for annuities: Although their market value varies from day to day, the income from an annuity is secure throughout the retiree’s life.

The idea was to reinvent mortgages by bundling thousands of them together as the backing for new and alluring securities that could be sold as alternatives to traditional government and corporate bonds - in short, to convert mortgages into bonds.

Where I live, on the West Coast, most churches tend to be small and to have little influence in the culture. Stark and Finke explain, “A major reason for the lack of church membership in the West is high rates of mobility, which decrease the ability of all voluntary organizations, not just churches, to maintain membership. That is, people move so often that they lack the social ties needed to affiliate with churches.”25 To address this problem, one of the most effective church-planting networks in the United States began in Tacoma, Washington, by using a method of developing intensive community in neighborhoods. Soma Communities fosters deep and intense relationships by teaching church planters to get closely involved in their neighborhoods, opening their homes to neighbors, gathering friends together on a regular basis, and forming “missional communities” focused on discovering and meeting the needs of neighbors and the community. It is these relational bonds that make someone unfamiliar with Christianity want to try it out. Rick Richardson, who directs the evangelism and leadership program at Wheaton College Graduate School, argues that “belonging comes before believing.” He contrasts older methods of evangelism that focused on asking individuals to make a set of commitments. Today, asserts Richardson, presenting four spiritual laws and inviting people to make decisions for Christ is less effective. “Evangelism is about helping people belong so that they can come to believe. So our communities need to be places where people can connect before they have to commit.”26 The idea is held up by social science research showing that converts tend to sign on to a new faith only after their social ties become stronger to those in the new faith than to others outside it. “This often occurs before a convert knows much about what the group believes.

Vishal was well ahead of his time. Only the other day I read in one of our papers that elephant dung could be converted into good quality paper. Perhaps they'll use it to make bank notes. Reserve Bank, please note.   ★

Before wrapping up this chapter, let us look at one of the deadly scams in the Indian primary market history. There was company named ‘MS shoes east’. Shares of this company traded in Rs 150-200 range throughout the year 1994. But towards December 1994 it spurted to Rs 500 without any justifiable rationale behind the raise. Its promoter Pavan Sachedeva and his broker artificially manipulated the stock price to this level.   By February 1995, the company devised an expansion plan for an estimated expense Rs 700 crores. It proposed to raise around Rs 428 crores by means of Fully convertible bonds. These bonds were to be sold at Rs 199 each through public issue. The idea was to provoke people to subscribe the issue with a hope of converting this bond of Rs 199 to a share of Rs 500.   Well, his brokers was constantly buying the stocks from the open market to maintain the price at that high level. But the situation had already worsened. He had bought too much and had too little money at hand that he could not pay the stock exchange for all the purchases he made. BSE could not give money to the sellers of that security. Things turned out to be serious. You may find it hard to believe  - the BSE was shut down for three consecutive days without any business.   Before this drama came to light, FCD ('Fully Convertible Debenture) public issue was a big success and it almost stole the show. Delighted by the overwhelming response from the investing community, MS Shoes had announced to close the public issues few days before the stipulated time. The world came to know that the cruel plan of manipulating the stock price was only to push the bond issue successfully. Even the authorities woke up to the problem. The company was issued a notice. And also it allowed the investors to take back their FCD application. Almost all the investors took back. Even the underwriter refused to buy the unsold portion of the issue because the company had voluntarily announced to close the issue before the end date. The ruling was in favor the underwriter. Sachedeva declared himself to be innocent. MS shoes office resembled a mourning house with  deserted look.   There was one Sachedeva who came to light. There were and probably still are more of them out there.

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She understood that becoming a nun was a lifetime commitment. Testing her daughter’s resolve was wise. The Koehler family together, 1923 First Homes As an adult, I visited Rosie’s first home at 83 Beals Street in Brookline, Massachusetts, to get a sense of her early life and that of her famous family. The compact Victorian residence stands three stories tall on a small lot in the Boston suburb. It was easy to picture the young Kennedy children playing in the back yard. Rose Kennedy wrote in Times to Remember, her 1974 autobiography: “It was a nice old wooden-frame house with clapboard siding; seven rooms, plus two small ones in the converted attic, all on a small lot with a few bushes and trees . . . about twenty-five minutes from the center of the city by trolley.” 5 The family home on Beals Street is now the John Fitzgerald Kennedy National Historic Site, run by the National Park Service. From the deep browns and reds of the rugs on the hardwood floors to the homey couch and chairs, the home felt warm and comfortable to me. I suppressed a desire to kick off my sandals and flop on the sofa. The Kennedys’ house on Beals Street, Rosie’s first home But my perspective as a child would have triggered a different impression. I would have whispered to my mother, “They’re rich!” (I’ve since discovered that money isn’t the only measure of wealth. There’s wealth in memories, too.) A lovely grand piano occupies one corner of the Kennedys’ old living room. It was a wedding gift to Rose Kennedy from her uncles, and she delighted in playing her favorite song, “Sweet Adeline,” on it. Although her children took piano lessons, Mrs. Kennedy lamented that her own passion never ignited a similar spark in any of her daughters. She did often ask Rosemary to perform, however. I see an image of Rosemary declaring she couldn’t, her hands stretching awkwardly across the keys. But her mother encouraged Rosie to practice, confident she’d

It’s expensive to trade small lots of convertible bonds, and diversification is impractical unless you have well over $100,000 to invest in this sector alone. Fortunately, today’s intelligent investor has the convenient recourse of buying a low-cost convertible bond fund. Fidelity and Vanguard offer mutual funds with annual expenses comfortably under 1%, while several closed-end funds are also available at a reasonable cost (and, occasionally, at discounts to net asset value).4

The price fluctuations of convertible bonds and preferred stocks are the resultant of three different factors: (1) variations in the price of the related common stock, (2) variations in the credit standing of the company, and (3) variations in general interest rates. A good many of the convertible issues have been sold by companies that have credit ratings well below the best.3 Some of these were badly affected by the financial squeeze in 1970. As a result, convertible issues as a whole have been subjected to triply unsettling influences in recent years, and price variations have been unusually wide. In the typical case, therefore, the investor would delude himself if he expected to find in convertible issues that ideal combination of the safety of a high-grade bond and price protection plus a chance to benefit from an advance in the price of the common.

Does the company haves FCCB (Foreign Currency Convertible Bonds)? It is not mandatory for each company to have FCCB bonds, but having them brings credibility to the company.

By thinking about gearing the message to the existing customer, the familiar with you but hasn’t converted person and the individual that has no idea who you are… (your three audiences) with the same content, you build a greater bond, better relationships, and an endurance audience.

You buy a 6% bond at 100, convertible into stock at 25—that is, at the rate of 40 shares for each $1,000 bond. The stock goes to 30, which makes the bond worth at least 120, and so it sells at 125. You either sell or hold. If you hold, hoping for a higher price, you are pretty much in the position of a common shareholder, since if the stock goes down your bond will go down too. A conservative person is likely to say that beyond 125 his position has become too speculative, and therefore he sells and makes a gratifying 25% profit. So far, so good. But pursue the matter a bit. In many cases where the holder sells at 125 the common stock continues to advance, carrying the convertible with it, and the investor experiences that peculiar pain that comes to the man who has sold out much too soon. The next time, he decides to hold for 150 or 200. The issue goes up to 140 and he does not sell. Then the market breaks and his bond slides down to 80. Again he has done the wrong thing. Aside from the mental anguish involved in making these bad guesses—and they seem to be almost inevitable—there is a real arithmetical drawback to operations in convertible issues.

As the various barbarian tribes took over different parts of the Empire, they attempted with varying degrees of success to main tain Roman administration, though with their own personnel overseeing it. As they converted to Christianity, they frequently put bishops into their governments as well. Unfortunately, Germanic and Roman principles for governing were radically different, and as a result it took centuries before a stable system would emerge, one drawn from blending the Roman and Germanic cultures with Christianity. That system, known as feudalism, was based on personal bonds (an element of German culture) regulated by oaths (again, German) and a legal contract (an element of Roman culture). The basic idea was that the proper structure for a society was based on lordship, in which one person was owed allegiance and service from others. This applied not only in the political realm but in the economic as well (where it is called “manorialism”). As in any society, politics and economics were tied together by fundamental ideas about the “natural” way people should relate to each other.

TAX-SAVVY IDEAS We suggest 14 tax-reducing ideas for tax-savvy investors. Most are easy to understand and to implement. We can think of no better way for most taxpayers to maximize their after-tax returns. Use tax-advantaged accounts (401(k), 403(b), IRAs, 529 tuition plans, etc.). Buy fund shares after the distribution date. Place tax-INefficent funds in retirement accounts, and tax-Efficient funds in taxable accounts. Use tax-managed or tax-efficient index funds in taxable accounts. Avoid balanced funds (stocks and bonds) in taxable accounts. Keep taxable fund turnover low to avoid capital-gains taxes. Avoid short-term gains by holding for more than 12 months. Sell losing shares before year-end (tax-loss harvest). Sell profitable shares after the new year (to delay tax payment). Determine the most favorable tax-basis method before selling fund shares. Consider municipal bonds and U.S. Savings Bonds for taxable accounts. During years of low income, consider converting to a Roth. Consider gifts to charities of securities with large capital gains. Appreciated holdings in taxable accounts are capital gains and income tax free if left to heirs.

Milken told his boss, Edwin Kantor, who was in charge of all fixed-income trading, that he wanted to create an autonomous unit, with its own sales force, its own traders and its own research people: the high-yield- and convertible-bond department. Selling these low-rated bonds, he explained, was more like selling stocks than it was like selling high-grade bonds. If a bond was rated triple A by a rating agency, institutions bought them based on that rating—not on the salesman’s pitch about the company. But to convince an investor to buy a bond with a C rating you had to tell the company’s story. You had to know the company’s management, its product, its balance sheet, its earnings trend and cash flow—just as you would in trying to sell the stock of a little-known company.

In these circumstances it would have been surprising had the Jewish authorities not made life difficult for the disciples of Jesus. And this is just what they did, as the book of the Acts records.1 The apostles, when arrested and reprimanded, defied all prohibitions, and neither stripes nor imprisonment intimidated them. The priests, however, had not a free hand. The governor apparently was not inclined to lend himself to new condemnations. But there was worse to come. Stephen, one of the first converts, a zealous helper of the apostles, was accused of blasphemy against the Holy Place and against the Law of Moses. To judge by the speech he is described as making in the Acts of the Apostles, it does seem that his words were rather peculiarly vehement. At any rate, the Sanhedrim, perhaps encouraged by the weakness of the governor, or taking advantage of the post being temporarily vacant, pronounced sentence of death against Stephen, and caused him to be stoned in the traditional manner. They followed this up with severe measures against the faithful, and the terrified community dispersed for a time. But the alarm did not last long, and the "Church," as it now began to be called, soon came together again. The internal organization of the Church seems to have been very simple. Converts were admitted by baptism, the symbol of their union with Jesus, in whose name it was administered, and also of the conversion, the moral reform promised by the believer. A common daily meal was the sign and bond of their corporate life. There they celebrated the Eucharist, a perceptible and mysterious memorial of the invisible Master. In those first days the desire for a common life was so intense that they even practised community of goods. This led to administrative developments; the apostles chose out seven helpers who were the fore-runners of the Deacons. A little later there appeared an intermediate dignity, a council of elders (presbyteri, priests), who assisted the apostles in general management and took counsel with them.

Arbitrages: The purchase of a security and the simultaneous sale of one or more other securities into which it was to be exchanged under a plan of reorganization, merger, or the like. Liquidations: Purchase of shares which were to receive one or more cash payments in liquidation of the company’s assets. Operations of these two classes were selected on the twin basis of (a) a calculated annual return of 20% or more, and (b) our judgment that the chance of a successful outcome was at least four out of five. Related Hedges: The purchase of convertible bonds or convertible preferred shares, and the simultaneous sale of the common stock into which they were exchangeable. The position was established at close to a parity basis—i.e., at a small maximum loss if the senior issue had actually to be converted and the operation closed out in that way. But a profit would be made if the common stock fell considerably more than the senior issue, and the position closed out in the market. Net-Current-Asset (or “Bargain”) Issues: The idea here was to acquire as many issues as possible at a cost for each of less than their book value in terms of net-current-assets alone—i.e., giving no value to the plant account and other assets. Our purchases were made typically at two-thirds or less of such stripped-down asset value. In most years we carried a wide diversification here—at least 100 different issues.

the data was plotted on mathematical diagrams that I invented. These revealed favorable situations and let me quickly specify the appropriate trades. Each day’s closing prices for a convertible and its stock were plotted as a color-coded dot on that particular convertible’s diagram. The diagrams were prepared with curves that were drawn by a computer from my formula and showed the “fair price” of the convertible. The beauty of this was that I could immediately see from the picture whether we had a profitable trading opportunity. If the dot representing the data was above the curve it meant the convertible was overpriced, leading to a possible hedge: Short the convertible, buy the stock. A data point close to or on the curve indicated the price was fair, which meant liquidate an existing position, do not enter a new one. Below the curve meant buy the convertible, short the stock. The distance of the dot from the curve showed me how much profit was available. If we thought it met our target, we tried to put on the trade the next day. The slope of the curve near the data point on my diagram gave me the hedge ratio, which is the number of shares of common stock to use versus each convertible bond, share of preferred, warrant, or option.

Morgan Stanley offered two key concessions that persuaded S&P to give the new bonds a AA-rating. First, the company would issue two classes of bonds, and S&P would rate only the much safer of the two. Banamex would keep the riskier unrated class of bonds, to serve as a cushion to protect the safer bonds, providing greater assurance that the rated bonds would be repaid in full. The company would also purchase some U.S. Treasury bonds, as additional protection. The safer, rated bonds were the bonds actually called PLUS Notes. Second, Morgan Stanley also agreed that the company would commit in advance to execute a foreign currency transaction in which Morgan Stanley would convert the peso payments on the Ajustabonos into U.S. dollars. S&P must have been suspicious that Morgan Stanley would try to market these new bonds as denominated in U.S. dollars, not pesos. As a compromise, S&P required that Morgan Stanley advertise the new bonds with a caveat. The Offering Memorandum for the bonds had to include a disclaimer: “This rating does not reflect the risk associated with fluctuations in the currency exchange rate between Dollars and New Pesos.” With this warning, and a huge fee, S&P finally was satisfied and agreed to rate the new bonds AA-.

Ivar and Lee Higginson decided to have International Match issue new securities called convertible gold debentures. “Debenture” was just a fancy term for “bond” – debentures were a fixed claim on interest payments by the corporation plus a return of the principal amount on the maturity date, which in this case would be twenty years. Debentures had a limited upside, but were safer than shares. These “gold” debentures were safer still, because they were payable in either dollars or gold, at the holder’s option. If International Match became bankrupt, holders of debentures would be repaid first, before shareholders received any money. These debentures gave investors the right to receive annual interest payments of 6.5 percent from International Match, an attractive rate at the time.

The wit of man,” said Democratic Congressman George Pendleton of Ohio, “has never discovered a means by which paper currency can be kept at par value, except by its speedy, cheap, certain convertibility into gold and silver.” If this bill passed, “prices will be inflated . . . incomes will depreciate; the savings of the poor will vanish; the hoardings of the widow will melt away; bonds, mortgages, and notes—everything of fixed value—will lose their value.

Unfortunately, the Bull that gilded Renaissance New York did little for most Americans. Eighties Wall Street was about institutional money released by deregulation, mergers and acquisitions, and, most of all, the debt that made it all possible. As John Kenneth Galbraith points out, financial euphoria always starts with new ways to borrow money; this time it was triggered by the Savings & Loan crisis. Volcker’s rocketing interest rates had forced S&Ls to offer double digits to new depositors while only getting back single digits on the old thirty-year mortgages on their books. S&Ls were going under, and getting a mortgage was nearly impossible, so in March 1980, with the banking system and the housing market on the brink, Carter had signed a law to allow them to issue credit cards, invest in commercial real estate, and offer checking accounts in order to stay in business. Reagan then took it a step further with a change that encouraged S&Ls to sell their mortgages in search of higher returns, freeing up a $1 trillion that needed to be invested in something. Which takes us back to Salomon Brothers, where in 1978 one Lew Ranieri had repackaged an old investment product the government had clamped down on during the Depression: A group of home mortgages all backed by government insurance would be bundled together, then sliced into bonds, thus converting the debt some people owed on their homes into an asset for others. Ranieri had been a bit ahead of the curve then—the same high interest rates that killed the S&Ls also made his bonds unattractive—but now deregulation let Salomon buy up the S&Ls’ mortgages at a deep discount, bundle them into bonds, and sell them back to the S&Ls who believed they’d diversified into the bond market when in fact they’d just bought ground meat made out of their own steaks. In June 1983, Salomon Brothers and Freddie Mac together issued the first collateralized mortgage obligation bonds (CMOs), which bundled up debt and cut it into tranches based on the amount of risk: you could choose between ground chuck and ground sirloin. It would be years before technology would allow doing this on a huge scale, but the immediate impact was that all kinds of debt, not just mortgages, were bundled, cut into bonds, and sold: credit card debt, car loans, you name it. Between 1983 and 1988, some $60 billion of CMOs were sold; GM’s financing arm became more profitable than its cars. America began to make debt instead of things. The

In the resurrection of Christ, as in our salvation, there was put forth nothing short of a divine power. What shall we say of those who think that conversion is wrought by the free will of man, and is due to his own betterness of disposition? When we shall see the dead rise from the grave by their own power, then may we expect to see ungodly sinners of their own free will turning to Christ. It is not the word preached, nor the word read in itself; all quickening power proceeds from the Holy Ghost. This power was irresistible. All the soldiers and the high priests could not keep the body of Christ in the tomb; Death himself could not hold Jesus in his bonds: even thus irresistible is the power put forth in the believer when he is raised to newness of life. No sin, no corruption, no devils in hell nor sinners upon earth, can stay the hand of God's grace when it intends to convert a man. If God omnipotently says, "Thou shalt," man shall not say, "I will not.

To fit into the Golden Straitjacket a country must either adopt, or be seen as moving toward, the following golden rules: making the private sector the primary engine of its economic growth, maintaining a low rate of inflation and price stability, shrinking the size of its state bureaucracy, maintaining as close to a balanced budget as possible, if not a surplus, eliminating and lowering tariffs on imported goods, removing restrictions on foreign investment, getting rid of quotas and domestic monopolies, increasing exports, privatizing state-owned industries and utilities, deregulating capital markets, making its currency convertible, opening its industries, stock and bond markets to direct foreign ownership and investment, deregulating its economy to promote as much domestic competition as possible, eliminating government corruption, subsidies and kickbacks as much as possible, opening its banking and telecommunications systems to private ownership and competition and allowing its citizens to choose from an array of competing pension options and foreign-run pension and mutual funds. When you stitch all of these pieces together you have the Golden Straitjacket. . . . As your country puts on the Golden Straitjacket, two things tend to happen: your economy grows and your politics shrinks. That is, on the economic front the Golden Straitjacket usually fosters more growth and higher average incomes—through more trade, foreign investment, privatization and more efficient use of resources under the pressure of global competition. But on the political front, the Golden Straitjacket narrows the political and economic policy choices of those in power to relatively tight parameters. . . . Governments—be they led by Democrats or Republicans, Conservatives or Labourites, Gaullists or Socialists, Christian Democrats or Social Democrats—that deviate too far from the core rules will see their investors stampede away, interest rates rise and stock market valuations fall.36

Some consider the mind of a cat a most undecipherable thing, a quagmire of selfish ambitions and impenetrable mysteries. True, the beasts don’t understand all human speech, or comprehend such intricate life enhancements as catalytic converters, microwave popcorn, or rabbit ear antennas. They don’t need to. God blessed them with far more efficient paths of communication. And it is also true that cats don’t devote themselves to servitude and submission to a human’s every whim, like dogs, for example. That’s also unnecessary. They can survive on their own, thank you very much. True, many bond to humans when it suits their purpose – or, like Sebastian, when it is ordained, because the “hairless giants,” as cats see humans, could not develop as He wills without a feline influence. But in most cases, a cat will cling to independence, as guaranteed all their kind by the Doctrine of Grakk-koth long, long, long ago. Yes, that long.

Money Block #1: Precious Metals (20% of your total assets) Money Block #2: Global Dominators (Stocks) (30% of your total assets) Money Block #3: Cash Cows (High Yield Stocks) (20% of your total assets) Money Block #4: Lockbox IOUs (Bonds) (10% of your total assets) Money Block #5: Global Cash (10% of your total assets) Money Block #6: Money Hedge (10% of your total assets) The allocation of cash to different Money Blocks in the Wealth Shield Portfolio allows you the liquidity and flexibility of being able to access your money, being able to convert your money and being able to grow your money.

In a word-of-mouth and word-of-mouse led world, the process of researching and buying is decidedly non-linear... (p. 8) What if we've got it all wrong? Take the marketing and sales funnels, for example. These tools were designed to sift through an inordinate number of suspects and prospects to extract the gold nuggets (customers) from the dirt (everyone else) by gently guiding (or sometimes forcing) them through a linear progression from awareness through action. But what if, instead of ending with the purchase action by the converted customer, we began with this action and, in doing so, focused on achieving three distinct goals: 1. Building solid, ongoing, and authentic bonds or relationships with our customers (customer service and experience); 2. Transforming customers into returning clients and ultimately advocates (customer relationship management); 3. Harnessing the unstoppable power of referrals, recommendations, and word of mouth for outreach to other potential customers (social networking or even a new kind of affiliate marketing). What if, by following these rules, we were able to essentially flip the funnel and reverse engineer future growth from a platform or foundtion of current growth? From the few come the many: That's the mantra of the flipped funnel.