Finances Short Quotes

First, Lord: No tattoos. May neither Chinese symbol for truth nor Winnie-the-Pooh holding the FSU logo stain her tender haunches. May she be Beautiful but not Damaged, for it’s the Damage that draws the creepy soccer coach’s eye, not the Beauty. When the Crystal Meth is offered, May she remember the parents who cut her grapes in half And stick with Beer. Guide her, protect her When crossing the street, stepping onto boats, swimming in the ocean, swimming in pools, walking near pools, standing on the subway platform, crossing 86th Street, stepping off of boats, using mall restrooms, getting on and off escalators, driving on country roads while arguing, leaning on large windows, walking in parking lots, riding Ferris wheels, roller-coasters, log flumes, or anything called “Hell Drop,” “Tower of Torture,” or “The Death Spiral Rock ‘N Zero G Roll featuring Aerosmith,” and standing on any kind of balcony ever, anywhere, at any age. Lead her away from Acting but not all the way to Finance. Something where she can make her own hours but still feel intellectually fulfilled and get outside sometimes And not have to wear high heels. What would that be, Lord? Architecture? Midwifery? Golf course design? I’m asking You, because if I knew, I’d be doing it, Youdammit. May she play the Drums to the fiery rhythm of her Own Heart with the sinewy strength of her Own Arms, so she need Not Lie With Drummers. Grant her a Rough Patch from twelve to seventeen. Let her draw horses and be interested in Barbies for much too long, For childhood is short – a Tiger Flower blooming Magenta for one day – And adulthood is long and dry-humping in cars will wait. O Lord, break the Internet forever, That she may be spared the misspelled invective of her peers And the online marketing campaign for Rape Hostel V: Girls Just Wanna Get Stabbed. And when she one day turns on me and calls me a Bitch in front of Hollister, Give me the strength, Lord, to yank her directly into a cab in front of her friends, For I will not have that Shit. I will not have it. And should she choose to be a Mother one day, be my eyes, Lord, that I may see her, lying on a blanket on the floor at 4:50 A.M., all-at-once exhausted, bored, and in love with the little creature whose poop is leaking up its back. “My mother did this for me once,” she will realize as she cleans feces off her baby’s neck. “My mother did this for me.” And the delayed gratitude will wash over her as it does each generation and she will make a Mental Note to call me. And she will forget. But I’ll know, because I peeped it with Your God eyes.

Neoliberalization has meant ,in short,the financialization of everything.There was unquestionably a power shift away from production to the world of finance.

When you’re a conservative Republican, you never think people are making money by ripping other people off,” he said. His mind was now fully open to the possibility. “I now realized there was an entire industry, called consumer finance, that basically existed to rip people off.

The world always pays you less than you are worth. Don't sell yourself short even further.

The genuine object of debate raised by the [2008 financial] crisis ought to be how to overcome the short-termism to which we have been led by a consumerism intrinsically destructive of all genuine investment in the future, a short-termism which has systematically, and not accidentally, been translated into decomposition of investment into speculation.

Money has the power to buy you things. But a much bigger power of money is in generating more money for you. Those who are able to manifest the latter, are never short of it.

The last man she'd dated said something to her, shortly before they broke up: 'I don't know, maybe I'm boring, but I never really feel like you're there when we're out to dinner. You live in your head. I can't. No room for me in there. I don't know, maybe you'd be more interested in me if I were a book.' She had hated him at the time, and hated herself a little, but later, looking back, Hutter had decided that even if that particular boyfriend had been a book, he would've been one from the Business & Finance aisle and she would've passed him by and looked for something in SF & Fantasy.

The desire to avoid short-term hardships leads to major dislocations in [housing] markets.

One of the reasons Wall Street had cooked up this new industry called structured finance was that its old-fashioned business was every day less profitable. The profits in stockbroking, along with those in the more conventional sorts of bond broking, had been squashed by Internet competition.

Pope Benedict XVI was the first to predict the crisis in the global financial system…Italian Finance Minister Giulio Tremonti said. “The prediction that an undisciplined economy would collapse by its own rules can be found” in an article written by Cardinal Joseph Ratzinger [in 1985], Tremonti said yesterday at Milan’s Cattolica University. —Bloomberg News, November 20, 2008

The trick in any field - from finance to careers to relationships - is being able to survive the short-run problems so you can stick around long enough to enjoy the long-term growth.

They use their minds to create wealth—not by taking existing materials and turning them into more valuable goods, but by taking existing wealth and putting it toward more valuable uses. In short, financiers don’t create the products that enrich our lives—they help create (and nurture) all the businesses that create the products that enrich our lives.

The world of finance hails the invention of the wheel over and over again, often in a slightly more unstable version. All financial innovation involves in one form or another, the creation of debt secured in greater or lesser adequacy by real assets.

She had worked her way up the ladder at Merrill Lynch, and then, shortly after Robert and I moved back to New York, she admitted to him that she hated the culture of finance. She told him she had to leave. He was disappointed that she hadn’t been happy with what had made him happy; that was obvious. But he was never disappointed in her.

His experience with Household Finance had disabused him of any hope that the government would intercede to prevent rich corporations from doing bad things to poor people.

Speculation, it has been noted, comes when popular imagination settles on something seemingly new in the field of commerce or finance.

Pope Benedict XVI was the first to predict the crisis in the global financial system…Italian Finance Minister Giulio Tremonti said.

I now realized there was an entire industry, called consumer finance, that basically existed to rip people off.

Human behavior and information bias play a huge role in transaction prices. It creates short-term opportunities that can be exploited.

Bridge loans provide short-term financing until long-term financing is secured. If you’re having trouble getting full financing, try seeking a bridge loan for the time being.

David Dardashti emigrated to the United States as a child and attended UC Berkeley shortly after. He flourished in academia and left college with a Bachelor's degree in Economics.

It is widely accepted that anything that reduces short-term volatility must also reduce long-term return.

Our primary objective in every mortgage transaction should be to borrow in a way that reduces debt, improves financial stability, and helps us get debt free in as short a time as possible!

Companies should optimize working capital management because it allows them to maximize efficiency and profitability. Efficient management of working capital ensures that a company has enough liquidity to meet its short-term obligations while minimizing excess capital tied up in non-productive assets, ultimately enhancing cash flow, reducing financing costs, and improving overall financial health.

Some take pains to be biblical, but many [Christian financial teachers, writers, investment counselors, and seminar leaders] simply parrot their secular colleagues. Other than beginning and ending with prayer, mentioning Christ, and sprinkling in some Bible verses, there's no fundamental difference. They reinforce people's materialist attitudes and lifestyles. They suggest a variety of profitable plans in which people can spend or stockpile the bulk of their resources. In short, to borrow a term from Jesus, some Christian financial experts are helping people to be the most successful 'rich fools' they can be.

In short, finance gives you the opportunity to dramatically increase your consumption by doing nothing—or, more precisely, by choosing not to consume everything you produce today, but instead providing the productive economy with savings that can be used to generate additional economic value with minimal effort on your part. For all of the demonization of financiers, this is as close to magic as you can get.

It's not easy to stand apart from mass hysteria - to believe that most of what's in the financial news is wrong, to believe that most important financial people are either lying or deluded - without being insane.

Corporate loans can be short-term or long-term, depending on the business's needs. Each business’s leaders should think very methodically about future revenue projections and macro conditions, among other things.

How do you explain to an innocent citizen of the free world the importance of a credit default swap on a double-A tranche of a subprime-backed collateralized debt obligation? He tried, but his English in-laws just looked at him strangely. They understood that someone else had just lost a great deal of money and Ben had just made a great deal of money, but never got much past that. "I can't really talk to them about it," he says. "They're English.

On its surface, the booming market in side bets on subprime mortgage bonds seemed to be the financial equivalent of fantasy football: a benign, if silly, facsimile of investing. Alas, there was a difference between fantasy football and fantasy finance: When a fantasy football player drafts Peyton Manning to be on his team, he doesn’t create a second Peyton Manning. When Mike Burry bought a credit default swap based on a Long Beach Savings subprime–backed bond, he enabled Goldman Sachs to create another bond identical to the original in every respect but one: There were no actual home loans or home buyers. Only the gains and losses from the side bet on the bonds were real.

the Wall Street firm became a black box. The shareholders who financed the risk taking had no real understanding of what the risk takers were doing, and, as the risk taking grew ever more complex, their understanding diminished.

Pope Benedict XVI was the first to predict the crisis in the global financial system… Italian Finance Minister Giulio Tremonti said. “The prediction that an undisciplined economy would collapse by its own rules can be found” in an article written by Cardinal Joseph Ratzinger

When you’re a conservative Republican, you never think people are making money by ripping other people off,” he said. His mind was now fully open to the possibility. “I now realized there was an entire industry, called consumer finance, that basically existed to rip people off.” Denied

Not only the portraits on the walls, but also the shelves in the library were thinned out. The disappearance of certain books and brochures happened discretely, usually the day after the arrival of a new message from above. Rubashov made his sarcastic commentaries on it while dictating to Arlova, who received them in silence. Most of the works on foreign trade and currency disappeared from the shelves – their author, the People’s Commissar for Finance, had just been arrested; also nearly all old Party Congress reports treating the same subject; most books and reference-books on the history and antecedents of the Revolution; most works by living authors on problems of birth control; the manuals on the structure of the People’s Army; treatises on trade unionism and the right to strike in the People’s State; practically every study of the problems of political constitution more than two years old, and, finally, even the volumes of the Encyclopedia published by the Academy – a new revised edition being promised shortly. New books arrived, too: the classics of social science appeared with new footnotes and commentaries, the old histories were replaced by new histories, the old memoirs of dead revolutionary leaders were replaced by new memoirs of the same defunct. Rubashov remarked jokingly to Arlova that the only thing left to be done was to publish a new and revised edition of the back numbers of all newspapers.

First, he evaluates a business on its long-term rather than its short-term prospects. Second, he always looks for businesses he understands. (This led him to avoid many Internet-related investments.) And third, when he examines financial statements, he places the greatest emphasis on a measure of cash flow that he calls owner earnings.

One of our primary goals has been to put an end to population growth. Moreover, we had to decrease world population numbers dramatically. In order to do this, we needed methods that could kill large numbers of people in a very short time. We have financed top-secret research projects for the production of deadly viruses. Some experiments have failed but others have yielded results.” 

The shareholders who financed the risk taking had no real understanding of what the risk takers were doing, and, as the risk taking grew ever more complex, their understanding diminished. All that was clear was that the profits to be had from smart people making complicated bets overwhelmed anything that could be had from servicing customers, or allocating capital to productive enterprise.

When Steve Eisman stumbled into this new, rapidly growing industry of specialty finance, the mortgage bond was about to be put to a new use: making loans that did not qualify for government guarantees. The purpose was to extend credit to less and less creditworthy homeowners, not so that they might buy a house but so that they could cash out whatever equity they had in the house they already owned.

Except for the two years he had lived with cowboys in North Dakota,and being the employer of a dozen or so servants,Roosevelt had never had to suffer any prolonged intimacy with the working class.From infancy,he had enjoyed the perquisites of money and social position.The money,through his own mismanagement,had often run short,and he was by no means wealthy even now, but he had always taken exclusivity for granted.

A more recent concern relates to “financialization” and associated short-termism. Financialization is the growing importance of norms, metrics, and incentives from the financial sector to the wider economy. Some of the concerns expressed are that, for example, managers are increasingly awarded stock options to align their incentives with those of shareholders; companies are often explicitly managed to increase short-term shareholder value; and financial engineering, such as share buybacks and earnings management, has become a more important part of senior managers’ jobs. The end result is that rather than finance serving business, business serves finance: the tail wags the dog. What John Kay described as “obliquity,” the idea that making money was a consequence of, or a second-order benefit of, serving one’s customers and building good businesses, is driven out (Kay 2010).

Steamboat Willie put Walt Disney on the map as an animator. Business success was another story. Disney’s first studio went bankrupt. His films were monstrously expensive to produce, and financed at outrageous terms. By the mid-1930s Disney had produced more than 400 cartoons. Most of them were short, most of them were beloved by viewers, and most of them lost a fortune. Snow White and the Seven Dwarfs changed everything. The $8 million it earned in the first six months of 1938 was an order of magnitude higher than anything the company earned previously. It transformed Disney Studios. All company debts were paid off. Key employees got retention bonuses. The company purchased a new state-of-the-art studio in Burbank, where it remains today. An Oscar turned Walt from famous to full-blown celebrity. By 1938 he had produced several hundred hours of film. But in business terms, the 83 minutes of Snow White were all that mattered.

McConnell was the case that declared constitutional the next clamp-down on campaign finance, the 2002 McCain-Feingold Act, which barred political parties from taking soft money and blocked union and corporate political ad spending shortly before an election. At the time, it was hard not to think that the law grew, at least in part, out of an embarrassed Senator John McCain’s wish to transfer the blame to “the system” for his having unwittingly helped a constituent and contributor who turned out to be a $3 billion savings-and-loan fraudster.

For centuries, it wasn’t government that kept the best records; merchants did. They were the ones who refined methods of accounting, bookkeeping, costs, and incomes, and they were at the core of the development of banking and notes of credit that are the precursors to all contemporary finance. Rulers, however, needed and coveted the revenue that merchants generated. Hence the evolution of the mercantile system, which saw various empires attempt to monopolize trade with their far-flung colonies and keep out foreign powers and foreign merchants.

Forcing new loans upon the bankrupt on condition that they shrink their income is nothing short of cruel and unusual punishment. Greece was never bailed out. With their ‘rescue’ loan and their troika of bailiffs enthusiastically slashing incomes, the EU and IMF effectively condemned Greece to a modern version of the Dickensian debtors’ prison and then threw away the key. Debtors’ prisons were ultimately abandoned because, despite their cruelty, they neither deterred the accumulation of new bad debts nor helped creditors get their money back. For capitalism to advance in the nineteenth century, the absurd notion that all debts are sacred had to be ditched and replaced with the notion of limited liability. After all, if all debts are guaranteed, why should lenders lend responsibly? And why should some debts carry a higher interest rate than other debts, reflecting the higher risk of going bad? Bankruptcy and debt write-downs became for capitalism what hell had always been for Christian dogma – unpleasant yet essential – but curiously bankruptcy-denial was revived in the twenty-first century to deal with the Greek state’s insolvency. Why? Did the EU and the IMF not realize what they were doing? They knew exactly what they were doing. Despite their meticulous propaganda, in which they insisted that they were trying to save Greece, to grant the Greek people a second chance, to help reform Greece’s chronically crooked state and so on, the world’s most powerful institutions and governments were under no illusions. […] Banks restructure the debt of stressed corporations every day, not out of philanthropy but out of enlightened self-interest. But the problem was that, now that we had accepted the EU–IMF bailout, we were no longer dealing with banks but with politicians who had lied to their parliaments to convince them to relieve the banks of Greece’s debt and take it on themselves. A debt restructuring would require them to go back to their parliaments and confess their earlier sin, something they would never do voluntarily, fearful of the repercussions. The only alternative was to continue the pretence by giving the Greek government another wad of money with which to pretend to meet its debt repayments to the EU and the IMF: a second bailout.

When the same or closely similar circumstances occur again, sometimes in only a few years, they are hailed by a new, often youthful, and always supremely self-confident generation as a brilliantly innovative discovery in the financial and larger economic world. There can be few fields of human endeavor in which history counts for so little as in the world of finance. Past experience, to the extent that it is part of memory at all, is dismissed as the primitive refuge of those who do not have the insight to appreciate the incredible wonders of the present. (A Short History of Financial Euphoria, 1990)

Here are my simple rules for identifying market tops and bottoms: 1. Market tops are relatively easy to recognize. Buyers generally become overconfident and almost always believe “this time is different.” It’s usually not. 2. There’s always a surplus of relatively cheap debt capital to finance acquisitions and investments in a hot market. In some cases, lenders won’t even charge cash interest, and they often relax or suspend typical loan restrictions as well. Leverage levels escalate compared to historical averages, with borrowing sometimes reaching as high as ten times or more compared to equity. Buyers will start accepting overoptimistic accounting adjustments and financial forecasts to justify taking on high levels of debt. Unfortunately most of these forecasts tend not to materialize once the economy starts decelerating or declining. 3. Another indicator that a market is peaking is the number of people you know who start getting rich. The number of investors claiming outperformance grows with the market. Loose credit conditions and a rising tide can make it easy for individuals without any particular strategy or process to make money “accidentally.” But making money in strong markets can be short-lived. Smart investors perform well through a combination of self-discipline and sound risk assessment, even when market conditions reverse.

I determined absolutely that never would I join a company in which finance came before the work or in which bankers or financiers had a part. And further that, if there were no way to get started in the kind of business that I thought could be managed in the interest of the public, then I simply would not get started at all. For my own short experience, together with what I saw going on around me, was quite enough proof that business as a mere money-making game was not worth giving much thought to and was distinctly no place for a man who wanted to accomplish anything. Also it did not seem to me to be the way to make money. I have yet to have it demonstrated that it is the way. For the only foundation of real business is service.

At a talk I gave at a church months later, I spoke about Charlie and the plight of incarcerated children. Afterward, an older married couple approached me and insisted that they had to help Charlie. I tried to dissuade these kind people from thinking they could do anything, but I gave them my card and told them they could call me. I didn't expect to hear from them, but within days they called, and they were persistent. We eventually agreed that they would write a letter to Charlie and send it to me to pass on to him. When I received the letter weeks later, I read it. It was remarkable. Mr. and Mrs. Jennings were a white couple in their mid-seventies from a small community northeast of Birmingham. They were kind and generous people who were active in their local United Methodist church. They never missed a Sunday service and were especially drawn to children in crisis. They spoke softly and always seemed to be smiling but never appeared to be anything less than completely genuine and compassionate. They were affectionate with each other in a way that was endearing, frequently holding hands and leaning into each other. They dressed like farmers and owned ten acres of land, where they grew vegetables and lived simply. Their one and only grandchild, whom they had helped raise, had committed suicide when he was a teenager, and they had never stopped grieving for him. Their grandson struggled with mental health problems during his short life, but he was a smart kid and they had been putting money away to send him to college. They explained in their letter that they wanted to use the money they'd saved for their grandson to help Charlie. Eventually, Charlie and this couple began corresponding with one another, building up to the day when the Jenningses met Charlie at the juvenile detention facility. They later told me that they "loved him instantly." Charlie's grandmother had died a few months after she first called me, and his mother was still struggling after the tragedy of the shooting and Charlie's incarceration. Charlie had been apprehensive about meeting with the Jenningses because he thought they wouldn't like him, but he told me after they left how much they seemed to care about him and how comforting that was. The Jenningses became his family. At one point early on, I tried to caution them against expecting too much from Charlie after his release. 'You know, he's been through a lot. I'm not sure he can just carry on as if nothing has ever happened. I want you to understand he may not be able to do everything you'd like him to do.' They never accepted my warnings. Mrs. Jennings was rarely disagreeable or argumentative, but I had learned that she would grunt when someone said something she didn't completely accept. She told me, 'We've all been through a lot, Bryan, all of us. I know that some have been through more than others. But if we don't expect more from each other, hope better for one another, and recover from the hurt we experience, we are surely doomed.' The Jenningses helped Charlie get his general equivalency degree in detention and insisted on financing his college education. They were there, along with his mother, to take him home when he was released.

It may be remarked in passing that success is an ugly thing. Men are deceived by its false resemblances to merit. To the crowd, success ears almost the features of true mastery, and the greatest dupe of this counterfeit talent is History. Juvenal and Tacitus alone mistrust it. In these days an almost official philosophy has come to dwell in the house of Success, wear its livery, receive callers in its ante-chamber. Success in principle and for its own sake. Prosperity presupposes ability. Win a lottery-prize and you are a clever man. Winners are adulated. To be born with a caul is everything; luck is what matters. Be fortunate and you will be thought great. With a handful of tremendous exceptions which constitute the glory of a century, the popular esteem is singularly short-sighted. Gilt is as good as gold. No harm in being a chance arrival provided you arrive. The populace is an aged Narcissus which worships itself and applauds the commonplace. The tremendous qualities of Moses, an Aeschylus, a Dante, a Michelangelo or a Napoleon are readily ascribed by the multitude to any man, in any sphere, who has got what he set out to get - the notary who becomes a deputy, the hack playwright who produces a mock-Corneille, the eunuch who acquires a harem, the journeyman-general who by accident wins the decisive battle of an epoch. The profiteer who supplies the army of the Sambre-et-Meuse with boot-soles of cardboard and earns himself an income of four hundred thousand a year; the huckster who espouses usury and brings her to bed of seven or eight millions; the preacher who becomes bishop by loudly braying; the bailiff of a great estate who so enriches himself that on retirement he is made Minister of Finance - all this is what men call genius, just as they call a painted face beauty and a richly attired figure majesty. The confound the brilliance of the firmament with the star-shaped footprints of a duck in the mud.

The national idea . . . [that] regarded the frontiers of the state as being determined by the natural boundaries of the nation, is now transformed into the notion of elevating one’s own nation above all others. The ideal now is to secure for one’s own nation the domination of the world, an aspiration which is as unbounded as the capitalist lust for profit from which it springs. . . . These efforts become an economic necessity, because every failure to advance reduces the profit and the competitiveness of finance capital, and may finally turn the smaller economic territory into a mere tributary of a larger one. . . . Since the subjugation of foreign nations takes place by force—that is, in a perfectly natural way—it appears to the ruling nation that this domination is due to some special natural qualities, in short to its racial characteristics. Thus there emerges a racist ideology, cloaked in the garb of natural science, a justification for finance capital’s lust for power, which is thus shown to have the specificity and necessity of a natural phenomenon.

The subprime market tapped a segment of the American public that did not typically have anything to do with Wall Street: the tranche between the fifth and the twenty-ninth percentile in their credit ratings. That is, the lenders were making loans to people who were less creditworthy than 71 percent of the population. Which of these poor Americans were likely to jump which way with their finances? How much did their home prices need to fall for their loans to blow up? Which mortgage originators were the most corrupt? Which Wall Street firms were creating the most dishonest mortgage bonds? What kind of people, in which parts of the country, exhibited the highest degree of financial irresponsibility? The default rate in Georgia was five times higher than that in Florida, even though the two states had the same unemployment rate. Why? Indiana had a 25 percent default rate; California, only 5 percent, even though Californians were, on the face of it, far less fiscally responsible. Why? Vinny and Danny flew down to Miami, where they wandered around empty neighborhoods built with subprime loans, and saw with their own eyes how bad things were. “They’d

According to the corporate media, which allows all shades of opinion from the far right to the middle-of-the-road, America has vicious enemies on all continents (except maybe Antarctica). These Evildoers, driven by Satan, want to destroy us and take all we own. Hence, by this analysis, our president must have no compunction about spilling blood; in short, like it or not, he must have the soul--or soullessness--of a serial killer. A rival "leftish" view, banned from the corporate media but widely available on Internet, holds that the world does not consist entirely of endless enemies, but does contain many, many peoples who want to get out from under the heel of the IMF, the World Bank and the multi-nationals. "Our" government, in this view, actually belongs not to us but to these giant money-cows, who finance the two major parties and ensure that no third party ever gets decent coverage in their media. The government then acts as Company Cop for the rich, suppressing all attempts at rebellion or national liberation, etc. Thus, once again, via a dissenting ideology, we arrive at the conclusion that the president must think, feel and act like a serial killer.

And as a long-short fund, he'd also been obligated to take short positions — betting against companies — which was a tactic that, to most experts in finance, was uncontroversial. The thinking went, when companies were performing poorly, or were mismanaged, or were in an industry that was being overrun, or were simply likely to fail, taking a short position wasn't just logical — it protected the marketplace by pointing out overpriced stocks, prevented fraud by acting as a check against dubious management, and poked holes in potential bubbles. Short sellers also added liquidity and volume to a stock — because they were obligated to buy the stock back at some point in the future. Yes, short sellers profited when companies failed, but usually a short seller wasn't banking on a company failing — just that the stock's price would eventually correct toward its true valuation. Sometimes, though, a trader picked up a short position because the company in question really was going to fail. Because, perhaps, it was in an industry that was dying; had management that seemed completely unable or unwilling to pivot; and had deep fundamental issues in its financing that seemed impossible to overcome.

If the global pie stayed the same size, there was no margin for credit. Credit is the difference between today’s pie and tomorrow’s pie. If the pie stays the same, why extend credit? It would be an unacceptable risk unless you believed that the baker or king asking for your money might be able to steal a slice from a competitor. So it was hard to get a loan in the premodern world, and when you got one it was usually small, short-term, and subject to high interest rates. Upstart entrepreneurs thus found it difficult to open new bakeries and great kings who wanted to build palaces or wage wars had no choice but to raise the necessary funds through high taxes and tariffs. That was fine for kings (as long as their subjects remained docile), but a scullery maid who had a great idea for a bakery and wanted to move up in the world generally could only dream of wealth while scrubbing down the royal kitchen’s floors. The Magic Circle of the Modern Economy It was lose-lose. Because credit was limited, people had trouble financing new businesses. Because there were few new businesses, the economy did not grow. Because it did not grow, people assumed it never would, and those who had capital were wary of extending credit. The expectation of stagnation fulfilled itself.

The Mother’s Prayer for Its Daughter First, Lord: No tattoos. May neither the Chinese symbol for truth nor Winnie-the-Pooh holding the FSU logo stain her tender haunches. May she be Beautiful but not Damaged, for it’s the Damage that draws the creepy soccer coach’s eye, not the Beauty. When the Crystal Meth is offered, May she remember the parents who cut her grapes in half And stick with Beer. Guide her, protect her When crossing the street, stepping onto boats, swimming in the ocean, swimming in pools, walking near pools, standing on the subway platform, crossing 86th Street, stepping off of boats, using mall restrooms, getting on and off escalators, driving on country roads while arguing, leaning on large windows, walking in parking lots, riding Ferris wheels, roller-coasters, log flumes, or anything called “Hell Drop,” “Tower of Torture,” or “The Death Spiral Rock ‘N Zero G Roll featuring Aerosmith,” and standing on any kind of balcony ever, anywhere, at any age. Lead her away from Acting but not all the way to Finance. Something where she can make her own hours but still feel intellectually fulfilled and get outside sometimes And not have to wear high heels. What would that be, Lord? Architecture? Midwifery? Golf course design? I’m asking You, because if I knew, I’d be doing it, Youdammit. May she play the Drums to the fiery rhythm of her Own Heart with the sinewy strength of her Own Arms, so she need Not Lie With Drummers. Grant her a Rough Patch from twelve to seventeen. Let her draw horses and be interested in Barbies for much too long, For Childhood is short—a Tiger Flower blooming Magenta for one day— And Adulthood is long and Dry-Humping in Cars will wait. O Lord, break the Internet forever, That she may be spared the misspelled invective of her peers And the online marketing campaign for Rape Hostel V: Girls Just Wanna Get Stabbed. And when she one day turns on me and calls me a Bitch in front of Hollister, Give me the strength, Lord, to yank her directly into a cab in front of her friends, For I will not have that Shit. I will not have it. And should she choose to be a Mother one day, be my eyes, Lord, That I may see her, lying on a blanket on the floor at 4:50 A.M., all-at-once exhausted, bored, and in love with the little creature whose poop is leaking up its back. “My mother did this for me once,” she will realize as she cleans feces off her baby’s neck. “My mother did this for me.” And the delayed gratitude will wash over her as it does each generation and she will make a Mental Note to call me. And she will forget. But I’ll know, because I peeped it with Your God eyes. Amen

Allowing the utmost latitude to the love of power which any reasonable man can require, I confess I am at a loss to discover what temptation the persons intrusted with the administration of the general government could ever feel to divest the States of the authorities of that description. The regulation of the mere domestic police of a State appears to me to hold out slender allurements to ambition. Commerce, finance, negotiation, and war seem to comprehend all the objects which have charms for minds governed by that passion; and all the powers necessary to those objects ought, in the first instance, to be lodged in the national depository. The administration of private justice between the citizens of the same State, the supervision of agriculture and of other concerns of a similar nature, all those things, in short, which are proper to be provided for by local legislation, can never be desirable cares of a general jurisdiction. It is therefore improbable that there should exist a disposition in the federal councils to usurp the powers with which they are connected; because the attempt to exercise those powers would be as troublesome as it would be nugatory; and the possession of them, for that reason, would contribute nothing to the dignity, to the importance, or to the splendor of the national government.

My Future Self My future self and I become closer and closer as time goes by. I must admit that I neglected and ignored her until she punched me in the gut, grabbed me by the hair and turned my butt around to introduce herself. Well, at least that’s what it felt like every time I left the convalescent hospital after doing skills training for a certification I needed to help me start my residential care business. I was going to be providing specialized, 24/7 residential care and supervising direct care staff for non-verbal, non-ambulatory adult men in diapers! I ran to the Red Cross and took the certified nurse assistant class so I would at least know something about the job I would soon be hiring people to do and to make sure my clients received the best care. The training facility was a Medicaid hospital. I would drive home in tears after seeing what happens when people are not able to afford long-term medical care and the government has to provide that care. But it was seeing all the “young” patients that brought me to tears. And I had thought that only the elderly lived like this in convalescent hospitals…. I am fortunate to have good health but this experience showed me that there is the unexpected. So I drove home each day in tears, promising God out loud, over and over again, that I would take care of my health and take care of my finances. That is how I met my future self. She was like, don’t let this be us girlfriend and stop crying! But, according to studies, we humans have a hard time empathizing with our future selves. Could you even imagine your 30 or 40 year old self when you were in elementary or even high school? It’s like picturing a stranger. This difficulty explains why some people tend to favor short-term or immediate gratification over long-term planning and savings. Take time to picture the life you want to live in 5 years, 10 years, and 40 years, and create an emotional connection to your future self. Visualize the things you enjoy doing now, and think of retirement saving and planning as a way to continue doing those things and even more. However, research shows that people who interacted with their future selves were more willing to improve savings. Just hit me over the head, why don’t you! I do understand that some people can’t even pay attention or aren’t even interested in putting money away for their financial future because they have so much going on and so little to work with that they feel like they can’t even listen to or have a conversation about money. But there are things you’re doing that are not helping your financial position and could be trouble. You could be moving in the wrong direction. The goal is to get out of debt, increase your collateral capacity, use your own money in the most efficient manner and make financial decisions that will move you forward instead of backwards. Also make sure you are getting answers specific to your financial situation instead of blindly guessing! Contact us. We will be happy to help!

Non-Tenure Writing Jobs The MLA session on the adjunct crisis indicates where higher education has come to in the Brave New World of the 21st century. Research by the MLA itself, by Gloria McMillan, by Eileen Schell and other colleagues, already confirm the deep replacement of tenure-track faculty with contingent adjuncts and others. This crisis is deepest in composition and in community colleges. Doug Hesse’s program at Denver Univ. is no solution; it will extend the subordination of composition through sub-faculty lines while rationalizing it as “good for students"(before research has even proved it so). But, sub-faculty writing lecturers will never be treated as “real” professors by their institutions and will never be accepted as colleagues by their tenure-track peers. Such sub-faculty plans will weaken the faculty as a whole in the academy by further dividing it into competing sub-groups. Neither will a sub-faculty plan benefit the 14 million undergraduates on campus, most who attend under-funded public colleges with no billion-dollar endowments or corporate angels to turn to. Community colleges, in particular, where about 6 million students are enrolled, can have up to 65% of classes taught by adjuncts. The sub-faculty plan is thus really a management tool available in the short-term to those colleges with deep pockets and deep readiness to entrench a lesser sub-faculty in their writing programs. Doug Hesse acknowledges such an outcome as a possibility. He is quoted in the IHE report saying he was disturbed by the degree of interest other WPAs took in DU’s new sub-faculty writing program, fearing that DU was installing a “Vichy"-type model(collaborating with the authorities desire to de-tenure faculty generally and to subordinate writing instructors particularly). But, Hesse is quoted as making peace with this because he feels that sub-faculty lines for writing teachers are at least good for writing students. Even if we knew for sure this was true, why must writing teachers be the only professionals in higher education called upon to make such sacrifices? A large private grant to finance Denver University’s program($10 million for Hesse’s project)is good fortune for one campus, but it offers no model for how we can solve the national disgrace of exploited adjuncts.

...the centrality of competitiveness as the key to growth is a recurrent EU motif. Two decades of EC directives on increasing competition in every area, from telecommunications to power generation to collateralizing wholesale funding markets for banks, all bear the same ordoliberal imprint. Similarly, the consistent focus on the periphery states’ loss of competitiveness and the need for deep wage and cost reductions therein, while the role of surplus countries in generating the crisis is utterly ignored, speaks to a deeply ordoliberal understanding of economic management. Savers, after all, cannot be sinners. Similarly, the most recent German innovation of a constitutional debt brake (Schuldenbremse) for all EU countries regardless of their business cycles or structural positions, coupled with a new rules-based fiscal treaty as the solution to the crisis, is simply an ever-tighter ordo by another name. If states have broken the rules, the only possible policy is a diet of strict austerity to bring them back into conformity with the rules, plus automatic sanctions for those who cannot stay within the rules. There are no fallacies of composition, only good and bad policies. And since states, from an ordoliberal viewpoint, cannot be relied upon to provide the necessary austerity because they are prone to capture, we must have rules and an independent monetary authority to ensure that states conform to the ordo imperative; hence, the ECB. Then, and only then, will growth return. In the case of Greece and Italy in 2011, if that meant deposing a few democratically elected governments, then so be it. The most remarkable thing about this ordoliberalization of Europe is how it replicates the same error often attributed to the Anglo-American economies: the insistence that all developing states follow their liberal instruction sheets to get rich, the so-called Washington Consensus approach to development that we shall discuss shortly. The basic objection made by late-developing states, such as the countries of East Asia, to the Washington Consensus/Anglo-American idea “liberalize and then growth follows” was twofold. First, this understanding mistakes the outcomes of growth, stable public finances, low inflation, cost competitiveness, and so on, for the causes of growth. Second, the liberal path to growth only makes sense if you are an early developer, since you have no competitors—pace the United Kingdom in the eighteenth century and the United States in the nineteenth century. Yet in the contemporary world, development is almost always state led.

A Tale of Two Parking Requirements The impact of parking requirements becomes clearer when we compare the parking requirements of San Francisco and Los Angeles. San Francisco limits off-street parking, while LA requires it. Take, for example, the different parking requirements for concert halls. For a downtown concert hall, Los Angeles requires, as a minimum, fifty times more parking than San Francisco allows as its maximum. Thus the San Francisco Symphony built its home, Louise Davies Hall, without a parking garage, while Disney Hall, the new home of the Los Angeles Philharmonic, did not open until seven years after its parking garage was built. Disney Hall's six-level, 2,188-space underground garage cost $110 million to build (about $50,000 per space). Financially troubled Los Angeles County, which built the garage, went into debt to finance it, expecting that parking revenues would repay the borrowed money. But the garage was completed in 1996, and Disney Hall—which suffered from a budget less grand than its vision—became knotted in delays and didn't open until late 2003. During the seven years in between, parking revenue fell far short of debt payments (few people park in an underground structure if there is nothing above it) and the county, by that point nearly bankrupt, had to subsidize the garage even as it laid employees off. The money spent on parking shifted Disney Hall's design toward drivers and away from pedestrians. The presence of a six-story subterranean garage means most concert patrons arrive from underneath the hall, rather than from the sidewalk. The hall's designers clearly understood this, and so while the hall has a fairly impressive street entrance, its more magisterial gateway is an "escalator cascade" that flows up from the parking structure and ends in the foyer. This has profound implications for street life. A concertgoer can now drive to Disney Hall, park beneath it, ride up into it, see a show, and then reverse the whole process—and never set foot on a sidewalk in downtown LA. The full experience of an iconic Los Angeles building begins and ends in its parking garage, not in the city itself. Visitors to downtown San Francisco have a different experience. When a concert or theater performance lets out in San Francisco, people stream onto the sidewalks, strolling past the restaurants, bars, bookstores, and flower shops that are open and well-lit. For those who have driven, it is a long walk to the car, which is probably in a public facility unattached to any specific restaurant or shop. The presence of open shops and people on the street encourages other people to be out as well. People want to be on streets with other people on them, and they avoid streets that are empty, because empty streets are eerie and menacing at night. Although the absence of parking requirements does not guarantee a vibrant area, their presence certainly inhibits it. "The more downtown is broken up and interspersed with parking lots and garages," Jane Jacobs argued in 1961, "the duller and deader it becomes ... and there is nothing more repellent than a dead downtown.

It’s also possible to revise the rules of globalization to reduce the amount of damage done by speculative private finance and to expand the role of transparent social investment. We could provide a lot more debt relief, as well as imposing a Tobin tax (see Chapter 3) on short-term financial transactions. Though the West has less economic influence than it once did, the markets of Europe and North America are still the world’s largest, which gives the West immense power to influence the rules for the global economy as a whole. Those rules were once used to promote balanced domestic social contracts. Lately, they have been used to enrich the already rich, often in concert with the repression of labor in the third world, and at the expense of decent labor standards in the West as well. The point is not that Japan, South Korea, China, and other emergent economies are doing something fundamentally wrong or inefficient by having industrial policies, subsidies, and managed trade strategies to promote their own economic growth. This is precisely what the West did at earlier stages of its own development. The point, rather, is that the system needs more realistic rules and norms, so that there is a fairer balance of benefits. That means balance between developing and developed countries, balance between capital and labor, and balance between market norms and social standards. Today, both the global trading system and US trade policy are promoting imbalance.

There can be few fields of human endeavor in which history counts for so little as in the world of finance.

But it is a common mistake to emphasise what you can measure at the expense of more important things that you can’t. It is generally better to be approximately right than precisely wrong.

Focusing only on the short term puts us in a position to make bad choices. We ignore all other factors that lead to the overall value of the loan in order to achieve that one singular goal now—whether the goal is a lower payment, a lower interest rate, or a dream home. In the long term, this always proves to be costly.

Youth is ambitious. Youth would take short cuts to wealth and the desirable things for which it stands. To secure wealth quickly youth often borrows unwisely

These same banks, ironically, would shortly be hauled before the Pujo Committee as the abominable Money Trust. What the public wouldn’t know was that the Money Trust had been forged, in part, by Washington itself in its quest for foreign influence.

Suppose that, in the last few weeks of a quarter, earnings threaten to fall short of the programmed year-over-year increase. The corporation simply borrows sales (and associated profits) from the next quarter by offering customers special discounts to place orders earlier than they had planned.

Passage Four: From Functional Manager to Business Manager This leadership passage is often the most satisfying as well as the most challenging of a manager’s career, and it’s mission-critical in organizations. Business mangers usually receive significant autonomy, which people with leadership instincts find liberating. They also are able to see a clear link between their efforts and marketplace results. At the same time, this is a sharp turn; it requires a major shift in skills, time applications, and work values. It’s not simply a matter of people becoming more strategic and cross-functional in their thinking (though it’s important to continue developing the abilities rooted in the previous level). Now they are in charge of integrating functions, whereas before they simply had to understand and work with other functions. But the biggest shift is from looking at plans and proposals functionally (Can we do it technically, professionally, or physically?) to a profit perspective (Will we make any money if we do this?) and to a long-term view (Is the profitability result sustainable?). New business managers must change the way they think in order to be successful. There are probably more new and unfamiliar responsibilities here than at other levels. For people who have been in only one function for their entire career, a business manager position represents unexplored territory; they must suddenly become responsible for many unfamiliar functions and outcomes. Not only do they have to learn to manage different functions, but they also need to become skilled at working with a wider variety of people than ever before; they need to become more sensitive to functional diversity issues and communicating clearly and effectively. Even more difficult is the balancing act between future goals and present needs and making trade-offs between the two. Business managers must meet quarterly profit, market share, product, and people targets, and at the same time plan for goals three to five years into the future. The paradox of balancing short-term and long-term thinking is one that bedevils many managers at this turn—and why one of the requirements here is for thinking time. At this level, managers need to stop doing every second of the day and reserve time for reflection and analysis. When business managers don’t make this turn fully, the leadership pipeline quickly becomes clogged. For example, a common failure at this level is not valuing (or not effectively using) staff functions. Directing and energizing finance, human resources, legal, and other support groups are crucial business manager responsibilities. When managers don’t understand or appreciate the contribution of support staff, these staff people don’t deliver full performance. When the leader of the business demeans or diminishes their roles, staff people deliver halfhearted efforts; they can easily become energy-drainers. Business managers must learn to trust, accept advice, and receive feedback from all functional managers, even though they may never have experienced these functions personally.

Shortly before we closed the deal, Randy Michaels and Terry Jacobs, who were running Jacor, came to me to finance the acquisition of a Denver station. Jacor already owned one of the other FM stations in Denver, and this one was losing money and available cheap. They showed up in Chicago carrying a thick book of details, prepared to make their pitch. “This is a great deal,” Randy assured me. He thumped the book on the table, ready to take me through it. “Wait a minute,” I said. “Do you understand the scope of the deal—why we should buy it?” “Yes,” he replied. “All the details are right here in this book.” He added that he and Terry had worked feverishly night and day to prepare it. I picked up the book and tossed it into a corner of my office, where it landed with a thud. Randy and Terry stared at me wide-eyed. “If you really understand it, you don’t need a book,” I said. “You could put it on a single piece of paper.” They looked uncertain. “I assume this says things are going to be great, right?” They nodded. “What happens if you’re wrong? How do I get out of the room?” “What do you mean?” Randy asked. “How bad can it get?” “Well,” he said, “it’s pretty bad now, and if we fail to fix it you could lose some operating capital. But I don’t see a station in Denver ever being worth less than $4 million. I mean, the building, the transmitter—the physical assets alone are worth close to that.” “Okay, great. How good could it get?” The answer, in short, was very good. So I said, “Go do it.

Short-cuts are timesavers for a reason: they omit details that can differentiate a profitable decision from one that you regret.

At Loan Corp, we have invested in slick tech-based systems to ensure a seamless journey for our customers. From consumer finance such as mortgages, remortgages, secured loans, banks, credit cars and insurance, we API directly into our top-tier lenders that match your requirements. Our commercial offerings are bridging loans, auction finance, development loans, loans to buy land and all aspects of commercial finance. Offering short- and long-term business loans in the UK from a wide range of products such as invoice finance, cash flow loans and even small business loans for bad credit.

Like streamers on top of a sailboat indicating wind pattern changes, when long-term rates are lower than short-term rates, it's a telltale that trends are likely changing.

My best advice for new investors is to secure your financing before you begin actively looking for a short-term rental investment.

I was always inspired by Billy Bob Thornton and how he made Sling Blade, how he made and financed that movie based off of a short. I always feel like, if I’m going to sell something, I want to show a short. That would be my advice to people who want to pitch. Make it yourself and show it. Because it’s a visual creation. Show them. And, more than anything, you have to prove that you’re the only person that can make the show. Make people trust that you believe in it so much that you are the best and only person who can do it.

I hope you will not be tempted into litigation. Life is too short for that.

The Poes lived nine places in the city, seven of them in just a two-year period, a striking contrast to Gertrude Tredwell, who lived all of her ninety-three years in the same spot. The Poes moved as their finances and Virginia’s health required. She had contracted tuberculosis in 1842 in Philadelphia, coughing up blood one day as she played the piano. Poe spent much of the rest of her short life tending to her.

I recently recommended to Lea Endres, CEO of NationBuilder, which builds software for community leaders, that she follow Senghor’s lead. NationBuilder was operating close to the red and Endres was frustrated because, despite her reminding everyone that cash collection was a priority, she couldn’t get her team to care enough about it. Our conversation went like this: Lea: I’m really worried about cash collections. We use this outsourced finance firm and they don’t care. We have a low cash balance and we got surprised last month. A couple more surprises and we’re in deep trouble. Ben: Is there a team on it? How much do you need to collect this month? Lea: Yes. And $1.1 million at least. Ben: If you have a crisis situation and you need the team to execute, meet with them every day and even twice a day if necessary. That will show them this is a top priority. At the beginning of each meeting you say, “Where’s my money?” They will start making excuses like “Boo Boo was supposed to call me and didn’t,” or “The system didn’t tell me the right thing.” Those excuses are the key, because that’s the knowledge you’re missing. Once you know that the excuse is that “Fred didn’t answer my email,” you can tell Fred to answer the damned email and also tell the person making the excuse that you expect way more persistence. The meetings will start out running long, but two weeks later they’ll be short, because when you say, “Where’s my money?” they are going to want to say, “Right here, Lea!” Two weeks later: Lea: You wouldn’t believe some of the excuses. One was that we have an auto email that is one sentence long that tells customers they are late—but it doesn’t tell them what to do! I’m like, “Well, then, let’s fix the damned email!” We’re making progress and they know I want my money. End of quarter: Lea: We collected $1.6 million in September! And the team loves hearing me say “Where’s my money?!?!” To change a culture, you can’t just give lip service to what you want. Your people must feel the urgency of it.

The official chronicler of business cycles in the United States, the National Bureau of Economic Research, a not-for-profit group founded in 1920, would declare, though many months later, that a recession had set in that August. But in September, no one was aware of it. There were the odd signs of economic slowdown, especially in some of the more interest-rate-sensitive sectors - automobile sales had peaked and construction had been down all year, but most short-term indicators, for example, steel production or railroad freight car loadings, remained exceptionally strong. By the middle of the month, the market was back at its highs and Babson's forecast of a crash had been thoroughly discredited.

Others argue that he was operating with what might be called a faulty speedometer for gauging monetary policy. The usual indicators that he relied upon suggested that conditions were very easy - short-term rates were truly low and banks flush with excess cash. The problem was that some of these measures were now giving off the wrong signals. For example, when banks overflowed with surplus cash, this was generally an index, in a more stable and settled economic environment, the Fed had pushed more than enough reserves into the system to restart it. In 1930, however, in the wake of the crash, banks had begun carrying larger cash balances as a precaution against further disasters, and excess bank reserves were more a symptom of how gun-shy banks had become and less how easy the Fed had been.

because Britain was unable to generate the same export surpluses as before the war, the City had to finance its long-term loans by relying more and more on short-term deposits.

a bottle of champagne after establishing that she does indeed want bubbles. I’ll let her enjoy a glass before I bring up the topic I know will raise a flush to the surface of that slim, golden neck. But she beats me to it, in a roundabout way, when she asks me what I actually do for a living. ‘I know about one bit, obviously.’ She looks down at her glass. ‘But I’m sure Mummy told me you were in finance.’ ‘Yeah. I definitely didn’t tell your mum I owned a sex club,’ I deadpan, and she giggles. ‘So what else do you do?’ ‘I started out in M&A. Worked my arse off. Learnt how to model a company from scratch. Then I went to a hedge fund for a while. Ran some long-short funds.’ I take a sip of champagne. ‘A few years ago, I left with some mates and we struck out on our own. Now we run our own money and we provide leverage for other people who want to do the same.’ She scrunches up her nose. ‘You mean you lend them money?’ ‘Exactly. So they can take riskier positions. We also provide their infrastructure. Trading systems. Compliance. That sort of thing.’ ‘And what do you trade?’ ‘A bit of everything. The way my mates and I have organised things, everyone has their own expertise. Mine’s equity and corporate debt. That’s what I learnt in M&A. Some of the others

Overall, the success of a Treasury auction depends on investor demand. Institutional investors such as insurance companies, foreign central banks, hedge funds, money funds, states, municipalities, Savings and Loans, credit unions, pension funds, and small local banks are all major participants. Depending on who buys a certain Treasury determines how much supply is available in the Repo market. For example, if a large amount of the auction is purchased by securities dealers and hedge funds, there’s plenty of supply around the Repo market. Dealers and hedge funds are leveraged players who loan their securities into the Repo market to finance their purchases. That keeps those securities readily available in the market. If, on the other hand, a large amount is purchased by end-user portfolios, such as investors who are more retail and less sophisticated, then there’s less supply available in the Repo market.

Over a period of three weeks from October through November 1907, a national panic swept through the country. The trust companies were no longer able to supply loans to the stock brokers. The rate for an overnight loan used to finance stock positions shot up from 9.5% to 70%, and that was for brokers lucky enough to get a loan! There was just no money available.

The modern use of Repo financing, though not yet called a Repo, began shortly after the U.S. entered World War I in 1917. Part of the Fed’s official mandate was to "provide an elastic currency," which, as we know, includes providing liquidity to the banking system. During its first few years, injecting cash into the financial system exclusively involved the rediscounting of commercial paper. The Fed loaned money to banks and received commercial paper as collateral. Then, with the growing issuance of Liberty Bonds by the U.S. government, banks began presenting these new government securities to the Fed for rediscounting. When the Fed rediscounted the first Liberty Bond, the Repo market was born.

But three flaws still existed. There was no regulation. With all the growth in the market, there were no calls to regulate Repo financing, securities dealers, or government bonds. The securities rules set up in the 1930s mainly targeted individual investors, the stock market, and banks. For years, there was never an outcry to regulate the government bond market. Large, sophisticated investors buying and selling AAA-rated, risk free, government bonds was not high on the to-do list. And free markets were much more a rallying cry in the 1980s than it is today. Then, and this is a big one, it was still market convention to price Repo transactions without including the coupon accrued interest. Accrued interest was basically just ignored by the Repo market. Third, there was uncertainty in terms of the legal status of Repo. What happened if a Repo counterparty went bankrupt or became insolvent? Was Repo a secured loan or a sale with an agreement to repurchase? No one really knew and it was never tested. Even the bankruptcy court was unsure whether a Repo was a collateralized loan or a sale and buy-back.

As its name suggests, Tri-Party Repo is an agreement between three parties. There’s the seller of the securities (the securities dealer), the buyer of the securities (cash investor), and the clearing bank (the bank that holds both the securities and the cash). The cash investor liked the transaction because they have better security. They knew the securities were priced and margined correctly by the clearing bank. For the securities dealer, Tri-Party minimized settlements and ticket processing. It gave them more time to allocate collateral throughout the day, and it made it easier to finance smaller pieces. The clearing bank did most of the work. They handled the risk management, pricing the collateral, and accommodated collateral substitutions. They managed the settlement risk, cleared the trades, provided valuation, and the position reporting. And, on top of that, they get paid a fee. Sounds like everyone wins! When there was a problem with HIC Repo, the market figured out a way to reduce investor risk. It brought cash investors back to the Repo market.

There’s no real definition of a shadow bank, but a shadow bank is basically a financial institution that performs banking functions. A shadow bank can be anything from an REIT (Real Estate Investment Trust) to a mortgage finance company to a hedge fund to a broker-dealer. Think of what banks do. In the simplest terms, a bank takes in deposits and makes mortgage loans. The mortgage loans are the bank’s investments. The deposits are the bank’s funding. Anyone with a savings or checking account is lending money to a bank. The bank borrows money from the depositors and loans money to the homeowners. Mortgage REITs are a great example of shadow banking. The REIT buys mortgage-backed securities (MBSs) and borrows money to finance the purchases in the Repo market. The mortgage-backed securities are just like a bank writing a mortgage loan, except they’re a security, and the Repo transactions are just like the deposits. But the REIT is not a bank. It’s a shadow bank.

Now, picture a bank that’s financing CDOs for a hedge fund through Repo transactions. Suppose the floor dropped-out from under the CDO market, like it did in 2007, and the bank issued a margin call to the hedge fund. Suppose the hedge fund told the bank, “We will give you your cash as soon as we sell some CDOs. Maybe next week.” That doesn’t work. But the Repo counterparty has an out. No need to wait. Once there is technically a default or bankruptcy, the bank can take over the hedge fund’s positions and liquidate them. Then they cross their fingers that they had taken enough margin to cover the losses on the forced sale! That brings up a good question. Why are there runs on banks and shadow banks? The question is easily answered when you look at what banks and shadow banks have in common. They lend long and borrow short. It’s the age-old business model flaw of the banking system. They are lending money long-term and borrowing money short-term. A bank writes a 30-year mortgage loan to a homeowner and borrows money from their depositors to cover the loan. Remember, the depositors can show up any day and withdraw their money. Unfortunately, this same bank business model flaw extends to the shadow banks. They also lend long and borrow short. Just like a bank, a REIT’s MBS portfolio might have an average weighted maturity of, say, seven years.

The payments system is the heart of the financial services industry, and most people who work in banking are engaged in servicing payments. But this activity commands both low priority and low prestige within the industry. Competition between firms generally promotes innovation and change, but a bank can gain very little competitive advantage by improving its payment systems, since the customer experience is the result more of the efficiency of the system as a whole than of the efficiency of any individual bank. Incentives to speed payments are weak. Incrementally developed over several decades, the internal systems of most banks creak: it is easier, and implies less chance of short-term disruption, to add bits to what already exists than to engage in basic redesign. The interests of the leaders of the industry have been elsewhere, and banks have tended to see new technology as a means of reducing costs rather than as an opportunity to serve consumer needs more effectively. Although the USA is a global centre for financial innovation in wholesale financial markets, it is a laggard in innovation in retail banking, and while Britain scores higher, it does not score much higher. Martin Taylor, former chief executive of Barclays (who resigned in 1998, when he could not stop the rise of the trading culture at the bank), described the state of payment systems in this way: ‘the systems architecture at the typical big bank, especially if it has grown through merger and acquisition, has departed from the Palladian villa envisaged by its original designers and morphed into a gothic house of horrors, full of turrets, broken glass and uneven paving.

[T]he ABCP market was built on a fatal flaw: a significant mismatch between the duration of the underlying assets (long-term) and the duration of the paper itself (short-term). While this structure is not unusual -- banks use it all the time -- the crucial difference is that banks have a strong liquidity provider in the event of a problem: the Bank of Canada. The trusts, however, were left in limbo.

Deregulation policies do not empower a ‘natural’ tendency for finance to lead a society from poverty to wealth, they simply put short-term profit and the interests of consumers ahead of developmental learning and agricultural and industrial upgrading. There is no case for doing this when a country is poor.

As I gather my thoughts here in order to get to the point, I am reminded of a joke Zafar made when he was still in banking. I say joke, but Zafar was always rather serious about banking and often talked about accountability, as he called it. This stuff is so esoteric, he once said, that the only people who understand it are in the business. What about regulators? I asked. Regulators, he replied, have one eye on the revolving door. Academics make money teaching traders their latest research, and politicians don’t know their arses from their elbows. Can you imagine the people on a march against finance? The guy on a megaphone shouting: What do we want? And everyone answering: Specific curbs on short selling in certain circumstances. When do we want it? In phases and at appropriate times. That’s the joke. It was funny at the time.

That’s the ground motive of Spirit-directed, Christ-mediated prayer—to simply know him better and enjoy his presence. Consider how different this is from the normal way we use prayer. In our natural state we pray to God to get things. We may believe in God, but our deepest hopes and happiness reside in things as in how successful we are or in our social relationships. We therefore pray mainly when our career or finances are in trouble, or when some relationship or social status is in jeopardy. When life is going smoothly, and our truest heart treasures seem safe, it does not occur to us to pray. Also, ordinarily our prayers are not varied—they consist usually of petitions, occasionally some confession (if we have just done something wrong). Seldom or never do we spend sustained time adoring and praising God. In short, we have no positive, inner desire to pray. We do it only when circumstances force us. Why? We know God is there, but we tend to see him as a means through which we get things to make us happy. For most of us, he has not become our happiness.

Josh Miller, 22 years old. He is co-founder of Branch, a “platform for chatting online as if you were sitting around the table after dinner.” Miller works at Betaworks, a hybrid company encapsulating a co-working space, an incubator and a venture capital fund, headquartered on 13th Street in the heart of the Meatpacking District. This kid in T-shirt and Bermuda shorts, and a potential star of the 2.0 version of Sex and the City, is super-excited by his new life as a digital neo-entrepreneur. He dropped out of Princeton in the summer of 2011 a year before getting his degree—heresy for the almost 30,000 students who annually apply to the prestigious Ivy League school in the hope of being among the 9% of applicants accepted. What made him decide to take such a big step? An internship in the summer of 2011 at Meetup, the community site for those who organize meetings in the flesh for like-minded people. His leader, Scott Heiferman, took him to one of the monthly meetings of New York Tech Meetup and it was there that Miller saw the light. “It was the coolest thing that ever happened to me,” he remembers. “All those people with such incredible energy. It was nothing like the sheltered atmosphere of Princeton.” The next step was to take part in a seminar on startups where the idea for Branch came to him. He found two partners –students at NYU who could design a website. Heartened by having won a contest for Internet projects, Miller dropped out of Princeton. “My parents told me I was crazy but I think they understood because they had also made unconventional choices when they were kids,” says Miller. “My father, who is now a lawyer, played drums when he was at college, and he and my mother, who left home at 16, traveled around Europe for a year. I want to be a part of the new creative class that is pushing the boundaries farther. I want to contribute to making online discussion important again. Today there is nothing but the soliloquy of bloggers or rude anonymous comments.” The idea, something like a public group email exchange where one can contribute by invitation only, interested Twitter cofounder Biz Stone and other California investors who invited Miller and his team to move to San Francisco, financing them with a two million dollar investment. After only four months in California, Branch returned to New York, where it now employs a dozen or so people. “San Francisco was beautiful and I learned a lot from Biz and my other mentors, but there’s much more adrenaline here,” explains Miller, who is from California, born and raised in Santa Monica. “Life is more varied here and creating a technological startup is something new, unlike in San Francisco or Silicon Valley where everyone’s doing it: it grabs you like a drug. Besides New York is the media capital and we’re an online publishing organization so it’s only right to be here.”[52]

F or a decade after the bursting of the debt bubble in 1837, business conditions were depressed in the United States. The number of banks available for financing speculative adventures declined. Then, after another 10 years, public memory faded again.

Frequent suggestions were made during the course of the trial that the motives of the donor and the donees alike, in carrying out this transaction, were to escape death duties. I feel constrained to dispose once and for all of these suggestions by the short answer that the existence or otherwise of such motives is irrelevant, excep as evidence for or against the bona fides of the transactions. There is the highest authority for the proposition that, if a man can lawfully so order his affairs that the payment of revenue duties of any kind is reduced or avoided altogether, there is no legal objection to his doing so. Whatever may be thought as the the morality of such transactions in these times from the point of view of patriotism and public spirit, there is no ground for ignoring their legal effect, unless such transactions be proved to be amere sham, such as those falling within the words 'not bona fide' in the act of 1894, or the phrase 'artificial transaction' in the Finance Acts of more recent years. Attorney General vs. Goneril Albany in re the estate of King Lear, MORE LEGAL FICTIONS

What was true was what was believed, and what was believed was true. And when the bubbles burst, what had once been believed and was therefore true was no longer believed and therefore no longer true. The

The transaction time frame can be as short as three months or as long as a year and a half. A typical time frame is six months or maybe seven months at the most. Occasionally a transaction will encounter some serious obstacles and the process must be restarted. How

Everly, what exactly are you working on?” he asks as we head out. The party is being held in the Ritz-Carlton ballroom, so it’s a short walk to the party. Sawyer clasps my hand in his, this thumb rubbing over the back of my hand as we stroll. “Getting Gabe and Sandra together,” I respond, matter-of-factly. He tilts his head in my direction. “Gabe and… Sandra?” “Yeah, obviously. Why do you keep repeating everything I’m saying? Gabe and Sandra. It’s so obvious.” “My assistant and my Finance VP are not a thing, Everly.” “Yet.” I shake my head. “You are really short-sighted for an almost-billionaire.” “And you’re a human resources nightmare.” We’re on the elevator and he rubs a hand over his jaw and closes his eyes. “Wait, Gabe is your head of finance? I really had him pegged for a tech nerd.” “Because that matters right now?” He opens his eyes, looking bewildered. “Oh, he’s like one of the bosses! This just gets yummier and yummier.” I bounce on my toes and clap my hands in delight.

In short, I do not believe the cynical liberal claim that the details of conservative political policies are just due to a self-serving ultrarich conspiracy, though the interests and finances of the ultrarich are certainly engaged.