Fixed Income Quotes

It is remarkable…what a change of temper a fixed income will bring about.

Until we embrace our mutual brokenness, our work with low-income people is likely to do more harm than good. I sometimes unintentionally reduce poor people to objects that I use to fulfill my own need to accomplish something. I am not okay, and you are not okay. But Jesus can fix us both.

The time of dangling insects arrived. White houses with caterpillars dangling from the eaves. White stones in driveways. You can walk at night down the middle of the street and hear women talking on the telephone. Warmer weather produces voices in the dark. They are talking about their adolescent sons. How big, how fast. The sons are almost frightening. The quantities they eat. The way they loom in doorways. These are the days that are full of wormy bugs. They are in the grass, stuck to the siding, hanging in the hair, hanging from the trees and eaves, stuck to the window screens. The women talk long-distance to grandparents of growing boys. They share the Trimline phone, beamish old folks in hand-knit sweaters on fixed incomes. What happens to them when the commercial ends?

I hate debt - except when I’m the lender.

It is remarkable, remembering the bitterness of those days, what a change of temper a fixed income will bring about. No force in the world can take from me my five hundred pounds. Food, house, and clothing are mine forever. Therefore not merely do effort and labour cease, but also hatred and bitterness. I need not hate any man; he cannot hurt me.

[Those] on fixed incomes are the nation's math elite.

The market might have learned a simple lesson: Don’t make loans to people who can’t repay them. Instead it learned a complicated one: You can keep on making these loans, just don’t keep them on your books. Make the loans, then sell them off to the fixed income departments of big Wall Street investment banks, which will in turn package them into bonds and sell them to investors.

All these war scares are concocted by the Pentagon—no offense meant to your brother—to get more appropriations, and give more handouts to Europe, and jack up taxes. It’s all part of the damnable inflationary pattern that’s designed to cheat people on pensions and with fixed incomes and so forth. Now I know your brother thinks he’s doing the right thing, and I appreciate your telling Elizabeth.

Don’t believe the system is a meritocracy in which ability and hard work are necessarily rewarded. Today the most important predictor of someone’s future income and wealth is the income and wealth of the family they’re born into.

For three decades almost all the gains from economic growth have gone to the top. In the 1960s and 1970s, the wealthiest 1 percent of Americans got 9–10 percent of our total income. By 2007, just before the Great Recession, that share had more than doubled, to 23.5 percent. Over the same period the wealthiest one-tenth of 1 percent tripled its share. We haven’t experienced this degree of concentrated wealth since the Gilded Age of the late nineteenth century.

Municipal Bond investment risk is substantially influenced by socio-politics.

Season late, day late, sun just down, and the sky Cold gunmetal but with a wash of live rose, and she, From water the color of sky except where Her motion has fractured it to shivering splinters of silver, Rises. Stands on the raw grass. Against The new-curdling night of spruces, nakedness Glimmers and, at bosom and flank, drips With fluent silver. The man, Some ten strokes out, but now hanging Motionless in the gunmetal water, feet Cold with the coldness of depth, all History dissolving from him, is Nothing but an eye. Is an eye only. Sees The body that is marked by his use, and Time's, Rise, and in the abrupt and unsustaining element of air, Sway, lean, grapple the pond-bank. Sees How, with that posture of female awkwardness that is, And is the stab of, suddenly perceived grace, breasts bulge down in The pure curve of their weight and buttocks Moon up and, in swelling unity, Are silver and glimmer. Then The body is erect, she is herself, whatever Self she may be, and with an end of the towel grasped in each hand, Slowly draws it back and forth across back and buttocks, but With face lifted toward the high sky, where The over-wash of rose color now fails. Fails, though no star Yet throbs there. The towel, forgotten, Does not move now. The gaze Remains fixed on the sky. The body, Profiled against the darkness of spruces, seems To draw to itself, and condense in its whiteness, what light In the sky yet lingers or, from The metallic and abstract severity of water, lifts. The body, With the towel now trailing loose from one hand, is A white stalk from which the face flowers gravely toward the high sky. This moment is non-sequential and absolute, and admits Of no definition, for it Subsumes all other, and sequential, moments, by which Definition might be possible. The woman, Face yet raised, wraps, With a motion as though standing in sleep, The towel about her body, under her breasts, and, Holding it there hieratic as lost Egypt and erect, Moves up the path that, stair-steep, winds Into the clamber and tangle of growth. Beyond The lattice of dusk-dripping leaves, whiteness Dimly glimmers, goes. Glimmers and is gone, and the man, Suspended in his darkling medium, stares Upward where, though not visible, he knows She moves, and in his heart he cries out that, if only He had such strength, he would put his hand forth And maintain it over her to guard, in all Her out-goings and in-comings, from whatever Inclemency of sky or slur of the world's weather Might ever be. In his heart he cries out. Above Height of the spruce-night and heave of the far mountain, he sees The first star pulse into being. It gleams there. I do not know what promise it makes him.

It was a measure of how much money people were making in the bond market that the magazine Institutional Investor was about to create a hot list of people who worked in it, called The 20 Rising Stars of Fixed Income. It was a measure of how much money people

The first people to get the new money are the counterfeiters, which they use to buy various goods and services. The second receivers of the new money are the retailers who sell those goods to the counterfeiters. And on and on the new money ripples out through the system, going from one pocket or till to another. As it does so, there is an immediate redistribution effect. For first the counterfeiters, then the retailers, etc. have new money and monetary income they use to bid up goods and services, increasing their demand and raising the prices of the goods that they purchase. But as prices of goods begin to rise in response to the higher quantity of money, those who haven't yet received the new money find the prices of the goods they buy have gone up, while their own selling prices or incomes have not risen. In short, the early receivers of the new money in this market chain of events gain at the expense of those who receive the money toward the end of the chain, and still worse losers are the people (e.g., those on fixed incomes such as annuities, interest, or pensions) who never receive the new money at all.

The market might have learned a simple lesson: Don’t make loans to people who can’t repay them. Instead it learned a complicated one: You can keep on making these loans, just don’t keep them on your books. Make the loans, then sell them off to the fixed income departments of big Wall Street investment banks,

In all, 62 percent of the budget cuts would come from low-income programs. Yet at the same time, the Republican budget would provide a substantial tax cut to the rich—who are already taking home an almost unprecedented share of the nation’s total income.

the sum total of tears always stays the same' - i.e., that in every nation, no matter what flag or system of government, no matter which gods are worshiped or what the average income is, the sum total of tears, pain, and fear that everyone must pay for his existence is a constant. And so the balance is maintained: well-fed nations wallow in neurosis and excesses, while people plagued with suffering, as we are now, may rely on numbness and apathy to help see them through - if not for that I'd be weeping morning, noon, and night. But I'm not crying and neither is anyone else, and the fact that we aren't is all part of a natural law. Of course if you believe that the earthly sum of tears is fixed and immutable, then you're not very well cut out to improve the world or to act on any kind of grand scale.

The United States now has the highest level of income inequality in the industrialized world, a fact that some regard as “a threat to American democracy.”5 Meanwhile, the public’s revolt against globalization, which many blame for the loss of jobs and the hollowing out of the middle class, culminated in the British vote to exit the European Union and the election of political neophyte and outsider Donald Trump as US president in 2016. Trump’s ascendancy, in particular, represented a rebuke of the deeply entrenched political establishment that had dominated US politics for decades.

(H)ow many great noblemen rob their petty tradesmen, condescend to swindle their poor retainers out of wretched little sums, and cheat for a few shillings? When we read that a nobleman has left for the Continent, or that another noble nobleman has an execution in his house - that one or other owe six or seven millions, the defeat seems glorious even, and we respect the victim of the vastness of his ruin. But who pities a poor barber who can't get his money for powdering the footman's heads; or a poor carpenter who has ruined himself by fixing up ornaments and pavilions for my lady's déjeuner; or the poor devil of a tailor whom the steward patronizes, and who has pledged all he is worth, and more, to get the liveries ready, which my lord has done him the honor to bespeak? - When the great house tumbles down, these miserable wretches fall under it unnoticed: as they say in old legends, before a man goes to the devil himself, he sends plenty of other souls thither.

When capital has bumped up against limits to profit-growth in the past, it has found fixes in things like colonisation, structural adjustment programmes, wars, restrictive patent laws, nefarious debt instruments, land grabs, privatisation, and enclosing commons like water and seeds. Why would it be any different this time? Indeed, a study by the ecological economist Beth Stratford finds that when capital faces resource constraints, this is exactly what happens: it turns to aggressive rent-seeking behaviour. It seeks to grab existing value wherever it can, with clever mechanisms to suck income and wealth from the public domain into private hands, and from the poor to the rich, exacerbating inequality.

It is the fixed nature of caste that distinguishes it from class, a term to which it is often compared. Class is an altogether separate measure of one’s standing in a society, marked by level of education, income, and occupation, as well as the attendant characteristics, such as accent, taste, and manners, that flow from socioeconomic status. These can be acquired through hard work and ingenuity or lost through poor decisions or calamity. If you can act your way out of it, then it is class, not caste. Through the years, wealth and class may have insulated some people born to the subordinate caste in America but not protected them from humiliating attempts to put them in their place or to remind them of their caste position.

New York City manages expertly, and with marvelous predictability, whatever it considers humanly important. Fax machines, computers, automated telephones and even messengers on bikes convey a million bits of data through Manhattan every day to guarantee that Wall Street brokers get their orders placed, confirmed, delivered, at the moment they demand. But leaking roofs cannot be fixed and books cannot be gotten into Morris High in time to meet the fall enrollment. Efficiency in educational provision for low-income children, as in health care and most other elementals of existence, is secreted and doled out by our municipalities as if it were a scarce resource. Like kindness, cleanliness and promptness of provision, it is not secured by gravity of need but by the cash, skin color and class status of the applicant.

It is the fixed nature of caste that distinguishes it from class, a term to which it is often compared. Class is an altogether separate measure of one’s standing in a society, marked by level of education, income, and occupation, as well as the attendant characteristics, such as accent, taste, and manners, that flow from socioeconomic status. These can be acquired through hard work and ingenuity or lost through poor decisions or calamity. If you can act your way out of it, then it is class, not caste.

There is a world of difference between city Australia and country Australia. It has nothing to do with wealth or education, nothing to do with Southern Cross tattoos and mullets, nothing to do with politics or income or class. It has everything to do with whether you know how to fix an engine, clean a rifle and birth a calf. Whether you know your neighbours. Whether you have enough foresight and pragmatism to convene a town meeting, throw a barricade up along the main road and strip refugees of their supplies.

Loss aversion refers to the relative strength of two motives: we are driven more strongly to avoid losses than to achieve gains. A reference point is sometimes the status quo, but it can also be a goal in the future: not achieving a goal is a loss, exceeding the goal is a gain. As we might expect from negativity dominance, the two motives are not equally powerful. The aversion to the failure of not reaching the goal is much stronger than the desire to exceed it. People often adopt short-term goals that they strive to achieve but not necessarily to exceed. They are likely to reduce their efforts when they have reached an immediate goal, with results that sometimes violate economic logic. New York cabdrivers, for example, may have a target income for the month or the year, but the goal that controls their effort is typically a daily target of earnings. Of course, the daily goal is much easier to achieve (and exceed) on some days than on others. On rainy days, a New York cab never remains free for long, and the driver quickly achieves his target; not so in pleasant weather, when cabs often waste time cruising the streets looking for fares. Economic logic implies that cabdrivers should work many hours on rainy days and treat themselves to some leisure on mild days, when they can “buy” leisure at a lower price. The logic of loss aversion suggests the opposite: drivers who have a fixed daily target will work many more hours when the pickings are slim and go home early when rain-drenched customers are begging to be taken somewhere.

My life began by flickering out. It may sound strange but it is so. From the very first moment I became conscious of myself, I felt that I was already flickering out. I began to flicker out over the writing of official papers at the office; I went on flickering out when I read truths in books which I did not know how to apply in life, when I sat with friends listening to rumours, gossip, jeering, spiteful, cold, and empty chatter, and watching friendships kept up by meetings that were without aim or affection; I was flickering out and wasting my energies with Minna on whom I spent more than half of my income, imagining that I loved her; I was flickering out when I walked idly and dejectedly along Nevsky Avenue among people in raccoon coats and beaver collars – at parties, on reception days, where I was welcomed with open arms as a fairly eligible young man; I was flickering out and wasting my life and mind on trifles moving from town to some country house, and from the country house to Gorokhovaya, fixing the arrival of spring by the fact that lobsters and oysters had appeared in the shops, of autumn and winter by the special visiting days, of summer by the fêtes, and life in general by lazy and comfortable somnolence like the rest. ... Even ambition – what was it wasted on? To order clothes at a famous tailor's? To get an invitation to a famous house? To shake hands with Prince P.? And ambition is the salt of life! Where has it gone to? Either I have not understood this sort of life or it is utterly worthless; but I did not know of a better one. No one showed it to me.

Ohio hadn’t gone through the same real estate boom as the Sun Belt, but the vultures had circled the carcasses of dying industrial towns––Dayton, Toledo, Mansfield, Youngstown, Akron––peddling home equity loans and refinancing. All the garbage that blew up in people’s faces the same way subprime mortgages had. A fleet of nouveau riche snake oil salesmen scoured the state, moving from minority hoods where widowed, churchgoing black ladies on fixed incomes made for easy marks to the white working-class enclaves and then the first-ring suburbs. The foreclosures began to crop up and then turn into fields of fast-moving weeds, reducing whole neighborhoods to abandoned husks or drug pens. Ameriquest, Countrywide, CitiFinancial––all those devious motherfuckers watching the state’s job losses, plant closings, its struggles, its heartache, and figuring out a way to make a buck on people’s desperation. Every city or town in the state had big gangrenous swaths that looked like New Canaan, the same cancer-patient-looking strip mall geography with brightly lit outposts hawking variations on usurious consumer credit. Those entrepreneurs saw the state breaking down like Bill’s truck, and they moved in, looking to sell the last working parts for scrap.

Two decades after its first democratic election, South Africa ranks as the most unequal country on Earth.1 A host of policy tools could patch each of South Africa’s ills in piecemeal fashion, yet one force would unquestionably improve them all: economic growth.2 Diminished growth lowers living standards. With 5 percent annual growth, it takes just fourteen years to double a country’s GDP; with 3 percent growth, it takes twenty-four years. In general, emerging economies with a low asset base need to grow faster and accumulate a stock of assets more quickly than more developed economies in which basic living standards are already largely met. Meaningfully increasing per capita income is a critical way to lift people’s living standards and take them out of poverty, thereby truly changing the developmental trajectory of the country. South Africa has managed to push growth above a mere 3 percent only four times since the transition from apartheid, and it has remained all but stalled under 5 percent since 2008. And the forecast for growth in years to come hovers around a paltry 1 percent. Because South Africa’s population has been growing around 1.5 percent per year since 2008, the country’s per capita income has been stagnant over the period.

the imposition of a negative real interest rate – effectively a wealth tax – on all forms of financial wealth expropriates the incomes of savers and might alter expectations of future effective rates of wealth taxes. If you are told, for example, that all your assets held in accounts fixed in money terms will be subject to a 5-percentage-point wealth tax, you might, it is true, decide to spend today, but you might well, fearful of what the government could do next year, batten down the hatches and cut spending. Households and businesses might simply conserve their resources to cope with an unpredictable and unknowable future. The

I mean, if you accept the framework that says totalitarian command economies have the right to make these decisions, and if the wage levels and working conditions are fixed facts, then we have to make choices within those assumptions. Then you can make an argument that poor people here ought to lose their jobs to even poorer people somewhere else... because that increases the economic pie, and it's the usual story. Why make those assumptions? There are other ways of dealing with the problem. Take, for example rich people here. Take those like me who are in the top few percent of the income ladder. We could cut back our luxurious lifestyles, pay proper taxes, there are all sorts of things. I'm not even talking about Bill Gates, but people who are reasonably privileged. Instead of imposing the burden on poor people here and saying "well, you poor people have to give up your jobs because even poorer people need them over there," we could say "okay, we rich people will give up some small part of our ludicrous luxury and use it to raise living standards and working conditions elsewhere, and to let them have enough capital to develop their own economy, their own means." Then the issue will not arise. But it's much more convenient to say that poor people here ought to pay the burden under the framework of command economies—totalitarianism. But, if you think it through, it makes sense and almost every social issue you think about—real ones, live ones, ones right on the table—has these properties. We don't have to accept and shouldn't accept the framework of domination of thought and attitude that only allows certain choices to be made... and those choices almost invariably come down to how to put the burden on the poor. That's class warfare. Even by real nice people like us who think it's good to help poor workers, but within a framework of class warfare that maintains privilege and transfers the burden to the poor. It's a matter of raising consciousness among very decent people.

Even the most recent IPCC report, dire as it is, spells out solutions of a sort. There are ways to mitigate things, there are ways to fix them. Ban fossil fuels. Stop eating meat and dairy; according to an IPCC report from 2014, animal agriculture contributes at least as much to global greenhouse gas emissions as the combined exhaust of all the world’s vehicles. What’s that you say? Too difficult? Can’t switch to an oil-free economy overnight? Okay, here’s something that’s effective, simple, and as convenient as a visit to the nearest outpatient clinic: stop breeding. Every child you squeeze out is a Godzilla-sized carbon bootprint stretching into the future—and after all, isn’t 7.6 billion of us enough? Are your genes really that special? If even half the men on the planet got vasectomies, I bet we could buy ourselves a century—and as an added bonus, child-free people not only tend to have higher disposable income than the sprogged, they’re also statistically happier.

In musing on all that occurred in the course of the several years of harassment the error I decided I made, and others frequently make, is to assume that we are all academics trying to sort out intellectual issues. The False Memory Syndrome Foundation is a political organization composed primarily of individuals who have been accused of child sexual abuse and those who support and defend them, sometimes for considerable sums. Such people are not going to be swayed by the research. They start with a fixed point of view-the need to deflect threat. That threat comes in the form of public exposure, loss of income, monetary penalties, or even in some cases incarceration. I heard a colleague say recently, in referring to the 30 or so studies that document the existence of recovered memory, “You get to the point where you wonder when is it going to be enough.” It is never going to be enough if the point is not searching for the truth but protecting a particular point of view. Confessions of a Whistle-Blower: Lessons Anna C. Salter. Ethics & Behavior, Volume 8, Issue 2 June 1998

If you are stuck in circumstances in which it takes Herculean efforts to get through the day— doing low-income work, obeying an authoritarian boss, buying clothes for the children, dealing with school issues, paying the rent or mortgage, fixing the car, negotiating with a spouse, paying taxes, and caring for older parents— it is not easy to pay close attention to larger political issues. Indeed you may wish that these issues would take care of themselves. It is not a huge jump from such a wish to become attracted to a public philosophy, spouted regularly at your job and on the media, that economic life would regulate itself automatically if only the state did not repeatedly intervene in it in clumsy ways. Now underfunded practices such as the license bureau, state welfare, public health insurance, public schools, public retirement plans, and the like begin to appear as awkward, bureaucratic organizations that could be replaced or eliminated if only the rational market were allowed to take care of things impersonally and quietly, as it were. Certainly such bureaucracies are indeed often clumsy. But more people are now attracted to compare that clumsiness to the myth of how an impersonal market would perform if it took on even more assignments and if state regulation of it were reduced even further. So a lot of “independents” and “moderates” may become predisposed to the myth of the rational market in part because the pressures of daily life encourage them to seek comfort in ideological formations that promise automatic rationality.

CONGRUENCE Have you ever felt stuck? Maybe you haven’t recruited anyone in a while, and you just can’t seem to break the streak of no success. This causes you to not feel like picking up the phone and getting any more rejection. You don’t feel like talking about the business that day, so you don’t. Can you relate? This is critical for you to always remember. You cannot avoid rejection. Ninety percent of people are always going to tell you that your business is not for them. You have to go through the no’s to get to the yeses. There is no other way around it. You may not like making calls and accepting no’s, but you will like the results and income you will get by doing it consistently enough. Bank on it. So here’s what happens to everyone, myself included. You have a bad day, where everyone says no. You wake up the next day and you just cannot get yourself to make some calls. The whole day goes by and you did nothing to grow your business. The next day, you have a nagging little feeling of guilt about doing nothing the day before, so you start to internalize it. You question whether you know what you are doing. Does the business work? Is it worth the effort? You know the answer is yes, so you don’t quit — but you also do no activity. The next day, that little guilt feeling has mushroomed even bigger. And as time goes on, the guilt turns into self-loathing. You get down on yourself for not performing like you know you could and should. You begin to beat yourself up and even compare yourself to others. Sadly, this can become a downward spiral that is self-inflicted and hard to break out of. Without being wise enough to seek direct help from an upline expert, some people never recover. Instead of fixing their mindset and bringing their goals and the actions back into alignment — getting congruent — they quit the business. These are the blamers who walk the Earth claiming the business didn’t work. No! They stopped working! Don’t be a blamer. Be congruent. Make your activity match up with your WHY in the business. Pick up the phone and snap back into action. Don’t allow yourself to be depressed, because it is a form of depression. Your upline can help you snap out of it. How

Many models are constructed to account for regularly observed phenomena. By design, their direct implications are consistent with reality. But others are built up from first principles, using the profession’s preferred building blocks. They may be mathematically elegant and match up well with the prevailing modeling conventions of the day. However, this does not make them necessarily more useful, especially when their conclusions have a tenuous relationship with reality. Macroeconomists have been particularly prone to this problem. In recent decades they have put considerable effort into developing macro models that require sophisticated mathematical tools, populated by fully rational, infinitely lived individuals solving complicated dynamic optimization problems under uncertainty. These are models that are “microfounded,” in the profession’s parlance: The macro-level implications are derived from the behavior of individuals, rather than simply postulated. This is a good thing, in principle. For example, aggregate saving behavior derives from the optimization problem in which a representative consumer maximizes his consumption while adhering to a lifetime (intertemporal) budget constraint.† Keynesian models, by contrast, take a shortcut, assuming a fixed relationship between saving and national income. However, these models shed limited light on the classical questions of macroeconomics: Why are there economic booms and recessions? What generates unemployment? What roles can fiscal and monetary policy play in stabilizing the economy? In trying to render their models tractable, economists neglected many important aspects of the real world. In particular, they assumed away imperfections and frictions in markets for labor, capital, and goods. The ups and downs of the economy were ascribed to exogenous and vague “shocks” to technology and consumer preferences. The unemployed weren’t looking for jobs they couldn’t find; they represented a worker’s optimal trade-off between leisure and labor. Perhaps unsurprisingly, these models were poor forecasters of major macroeconomic variables such as inflation and growth.8 As long as the economy hummed along at a steady clip and unemployment was low, these shortcomings were not particularly evident. But their failures become more apparent and costly in the aftermath of the financial crisis of 2008–9. These newfangled models simply could not explain the magnitude and duration of the recession that followed. They needed, at the very least, to incorporate more realism about financial-market imperfections. Traditional Keynesian models, despite their lack of microfoundations, could explain how economies can get stuck with high unemployment and seemed more relevant than ever. Yet the advocates of the new models were reluctant to give up on them—not because these models did a better job of tracking reality, but because they were what models were supposed to look like. Their modeling strategy trumped the realism of conclusions. Economists’ attachment to particular modeling conventions—rational, forward-looking individuals, well-functioning markets, and so on—often leads them to overlook obvious conflicts with the world around them.

When a man wants to rob a bank he hides behind a mask, but when a banker wants to rob a man, he hides behind a corporation.

income, expenses, and finances: How much debt do I want to carry, and for what purpose? Would I like to pay off one or more of my credit accounts? By when? How much money do I want to make next month? Next year? Five years from now? What expenses do I want to cut down or cut out? — My home and community: What changes do I want to make in my current living environment? Do I want to fix up my home or yard? Do I want to move? What is my ideal home like? Where is it? What is my personal corner or room like? Does it have a garden, pool, or pond? Is it near the ocean, a lake, the desert, or mountains? Is it in the city or the country? What part of the world do I live in? What is my neighborhood like? What community projects am I involved in, if any? — My spiritual life: How much time do I want to devote to spiritual practices, such as meditation, classes, church, volunteer work, and so on? What books do I want to read? What classes do I want to take? What spiritual teachers, authors, or leaders do I want to meet, listen to, and/or work with? What spiritual power places do I want to visit, with whom, and when? What spiritual projects do I want to work on? What spiritual gift do I want to give to others? — My health and fitness: What changes do I want to make in my health and fitness? How much time per day or week do I want to spend exercising? What type of exercise program would I most enjoy and benefit from? Where would I exercise? With whom? What physical healings do I want? If I were to manifest my true natural state of perfect health right now, what would my body be like? About what weight or fat percentage would my body feel comfortable and healthy being? What types of foods would be in my regular diet? What would my ideal sleeping pattern be? How would I deal with stress or tension? What unnecessary stressors do I want to get rid of? What toxins (emotional or physical) can I eliminate from my diet or life? — My family life: What type of family life do I want? What about children? How much time do I want to spend with my kids? What do I want to teach or share with them? How can I be closer to my family and/or spend more quality time with them? What type of

One of the WVU professors approved for funding, Russell Sobel, edited a 2007 book called Unleashing Capitalism: Why Prosperity Stops at the West Virginia Border and How to Fix It, arguing that mine safety and clean water regulations only hurt workers. “Are workers really better off being safer but making less income?” it asked.

What have you been given? How might you best use it? Some have extra time on their hands. Shall it be used in recreation only? Some recreation is good for re-creating one's energy and focus, as the root of the word recreation indicates. However, extra time can also mean opportunities for prayer, for contemplation, and for service to others. What talents have you been given? Are there ways you can use those talents not only to generate income but also to bless others and show God's love and compassion? If you can cook, do you cook for those who need a show of kindness? If you can fix a car, do you find chances to help the elderly or those in need of car care and without the resources to get it? If you can mentor, have you found someone to mentor? If you can encourage, are you looking for those in need of encouragement? All of us have been given much. Sometimes the biggest obstacle to our meeting expectations is our failure to see ourselves properly. We all need to ask the question "What have I been given?" so that we can better answer "What can I do with it?" Examine yourself in terms of your talents as well as your resources. Then prayerfully consider how to best use them for God.

A sales tax is the enemy of the poor person. It is the enemy of the elderly couple who live on fixed income. And it is the enemy of the everyday American consumer, poor or not. (From Voices of Multicultural America)

The Generous Family “The generous will prosper; those who refresh others will themselves be refreshed.” -Proverbs 11:25 One of the greatest and most consistent fruits of family-based stewardship of resources is the outpouring of abundant generosity. Living on a fixed income determined by someone else on a fixed work schedule dictated by someone else who works to direct your best energy toward their ends can leave us with a sense of powerlessness with little left over to give to others. Faced with the frustration this can often create, it becomes easier just to give ourselves over to our work identity. When we do, we tend to live a disintegrated life, always needing to guard against additional commitments since we often have to fight to give our family enough of what they need from whatever is left over, which can put a damper on a spirit of abundant generosity. Contrast that with income streams that produce money in ways that aren’t directly connected to how many hours you worked this week. This begins to disentangle the connection between our time and energy and our money.

The /utility /economists, according to Wicksell, were committed to a “thoroughly revolutionary programme” precisely on this question of distribution of income.^9 Marshall, and to some extent Pigou, got out of the fix that their theory had landed them in by emphasizing the danger to total physical national income that would be associated with an attempt to increase its /utility /by making its distribution more equal. This argument has been spoiled by the Keynesian revolution. If, as Keynes expected, saving is more than sufficient for a satisfactory rate of private investment, to use it for social purpose is not only harmless but actually beneficial to National Income, while if more total saving is needed than would be forthcoming under /laisser faire /it can easily be supplemented by budget surpluses. Edgworth, as we saw above,^10 and many after him, took refuge in the argument that we do not really know that greater equality would promote greater happiness, because individuals differ in their capacity for happiness, so that, until we have a thoroughly scientific hedonimeter, “the principle ‘every man, and every woman, to count for one,’ should be very cautiously applied.”^11 Many years ago, this point of view was expressed by Professor Harberler: “How do I know that it hurts you more to have your leg cut off than it hurts me to be pricked by a pin?” It seemed at the time that it would have been more telling if he had put it the other way round. Such arguments are getting rather dangerous nowadays, for though we shall presumably never have a hedonimeter whose findings would be unambiguous, the scientific measurement of pain is fairly well developed, and it would be very surprising if a national survey of the distribution of susceptibility to pain turned out to have just the same skew as the distribution of income. If the question is once put: Would a greater contribution to human welfare be made by an investment in capacity to produce knick-knacks that have to be advertised in order to be sold or an investment in improving the health service, it seems to me that the answer would be only too obvious; the best reply that /laisser-faire /ideology can offer is not to ask the question. [pp. 127-8]

30 percent—Domestic equities: US stock funds, including small-, mid-, and large-cap stocks 15 percent—Developed-world international equities: funds from developed foreign countries, including the United Kingdom, Germany, and France 5 percent—Emerging-market equities: funds from developing foreign countries, such as China, India, and Brazil. These are riskier than developed-world equities, so don’t go off buying these to fill 95 percent of your portfolio. 20 percent—Real estate investment trusts: also known as REITs. REITs invest in mortgages and residential and commercial real estate, both domestically and internationally. 15 percent—Government bonds: fixed-interest US securities, which provide predictable income and balance risk in your portfolio. As an asset class, bonds generally return less than stocks. 15 percent—Treasury inflation-protected securities: also known as TIPS, these treasury notes protect against inflation. Eventually you’ll want to own these, but they’d be the last ones I’d get after investing in all the better-returning options first.

There is no magic bullet, secret formula, or quick fix to success. You don’t make $200,000 a year by spending two hours a day on the internet, lose thirty pounds in a week with a “Hollywood diet,” rub twenty years off your face with a cream, fix your love life with a pill, or find lasting success with a get-rich-quick scheme. It would be great if you could buy your success, fame, self-esteem, good relationships, health, and well-being in a nicely clam-shelled package at the local Walmart, but that’s not how it works.

According to Ripley, the sketchy disclosures by International Match continued to be typical of those by leading companies. National Biscuit Company’s income statement from 1925 was just three-by-four inches, and didn’t need even that much space – it included just a single entry labeled “Earnings, Year 1925”.11 The Royal Baking Powder Company didn’t issue any financial statements at all.12 Many corporate reports contained disclaimers that the official income account “does not by any means give a clear picture of the annual earning power” or that “the balance sheet by no means discloses the true value of the company’s fixed assets.

The main components of an OP1 narrative are: Assessment of past performance, including goals achieved, goals missed, and lessons learned Key initiatives for the following year A detailed income statement Requests (and justifications) for resources, which may include things like new hires, marketing spend, equipment, and other fixed assets Each group works in partnership with its finance and human resources counterparts to create their detailed plan, which is then presented to a panel of leaders.

It’s importance, however, is bigger than that. Treasury securities are the risk-free yield curve for all of the financial markets. That’s right, the yields of Treasury Bills, Notes, and Bonds from overnight to 30 years make up a yield curve that is used to price all other fixed-income securities. The Treasury market is the reference rate for interest rates. Treasurys are a tool for pricing corporate bonds, municipal bonds, emerging market bonds, federal agencies, mortgage-backed securities, and other dollar assets. On top of that, they’re also a tool for speculation and hedging risk.

Most people believe, “My lifestyle is about the same every month. Our savings are fixed. We make a salary, so what we earn is fixed. And lastly, what we spend is fixed.” But the truth is that no one reading this book has a robotic life filled with endless repeating loops where they get paid the exact same amount of money every single month for decades on end. We all have fluctuations in our income.

Depreciation is considered a non-cash expense because the money required to purchase a particular fixed asset has already been spent.

What about real estate? In general, it holds its real value and yields rental income, but owning property isn’t so much an investment as it is a job. If you like fixing toilets and dealing with drug-addled, gun-toting deadbeat tenants, be my guest.

One of the most expensive commodities a nation can have is a cheap labor force. From this a host of consequences leaped forth as inevitable. —If you get labor for almost nothing, you have no incentive to buy expensive tools and the quality of your product will lag behind that of nations who do use the best tools on the market. —If you keep your labor occupied on menial tasks that are best suited to machines, your work force never develops those skills that would earn you more income. —If you employ ten to do the work of one, none of the ten will work to maximum efficiency because each will realize that what he or she does isn’t significant. —If you don’t pay your labor good wages, how can they ever afford to buy what you make? You limit your potential market by 50 percent at least, and if every employer in the region pays the same low wages, your market can vanish altogether. —A nation’s wealth is generated when the money from wages is quickly spread around because this causes more goods to be produced, and real wealth consists in the making and interchange of goods. And then I made the discovery: ‘Ricardo was wrong. There is no fixed quantum of money in the world, or in any nation. The rich man doesn’t suffer deprivation when labor gets a bigger share, for that larger amount means a bigger total for him.’” —Chapter VII, “Ideas”, page 257-258

One of the observations from systems thinking16 is that, though humans are prone to interpreting events as causal, often problems are better described in terms of a series of stockpiles that grow and shrink based on incoming and outgoing flows. The Dust Bowl17 wasn’t caused by one farmer or one year of overfarming, but by years of systemic abuse. Stocks and flows are especially valuable in understanding the failure of projects and teams. Projects fall behind one sprint at a time. Technical debt strangles projects over months. Projects fail slowly—and fixing them takes time, too.

Since no one really has a fixed tolerance for risk, says psychologist Paul Slovic, it’s more helpful to think in terms of “goals, objectives, and outcomes.” How much money will you need down the road? How will you get there? What kind of result do you want to attain—or want to avoid? To answer these questions, you need to know your budget, calculate your current assets, and plan your future income and expenses. While those numbers aren’t perfectly certain, either, they are a much more reliable basis for judgment than a squishy concept like “risk tolerance.

The data bears this out. In addition to a “persistence scorecard,” S&P Dow Jones Indices publishes snapshots of how many mutual funds beat their benchmarks. Most years, a majority underperform their indices, whatever the market. Over multiple years, the data becomes progressively grimmer. As of June 2020, only 15 percent of US stock-pickers had cumulatively managed to surpass their benchmark over the last decade. In bond markets, it is a similar tale, albeit varying depending on the flavor of fixed income. The data is more favorable for fund managers in more exotic, less efficient asset classes, such as emerging markets, but on the whole the data is clear that in the longer run most fund managers still underperform their passive rivals after fees.

Let’s take a look at the five major asset classes: Alternative assets, which are usually physical assets like fine watches, real estate, collectible cars, art, and jewelry Stocks, which represent ownership of a piece of a publicly traded company Fixed-income investments such as government bonds and deposit certificates Cash, such as dollar bills, and cash equivalents such as savings accounts, retirement accounts, and 401(k)s Futures and other derivatives, which are contracts between two parties agreeing to buy and sell assets, usually commodities like gold, corn, wheat, or cows, at a future date

First, Modern Portfolio Theory only works if a portfolio has some fixed income as well as some equity. This system breaks down if you’re too tilted one way or the other. For example, during a stock market crash like the one we had, if I had been holding 100 percent equity, rebalancing wouldn’t work. As the stock market plummeted, there would have been no complementary asset that would rise, so my allocations wouldn’t have changed and I’d have had nothing to rebalance. That’s why I advise not going above 80 percent equity, even if you’re an aggressive investor.

The progressives pose as the champions not only of fairness and social justice but also of compassion. They are the ones who insist on our obligation to those from whom we have allegedly stolen. Let’s leave aside for the moment whether they are right about the theft. What we do know for sure is that progressives assert there has been a theft. They further acknowledge that they are among the beneficiaries of it. Based on this, they would seem to have a clear obligation to return the stolen goods that they are currently enjoying. We might expect, from this analysis, to discover that progressives are the most generous people in America. We can anticipate that they contribute the highest portion of their incomes and time to help their wronged and less fortunate fellow men and women. The truth, however, is that progressives are the least generous people in America. I saw this personally with Obama, who unceasingly declares that “we are our brother’s keeper” even as he refuses to help his own half brother, George, who lives in a hut in the Huruma slum of Nairobi. I met George in early 2012 when I interviewed him for my film 2016: Obama’s America. A few months after that, when I was back in America, George called me from Kenya to ask me to give him $1,000 because his baby son was sick. Surprised, I asked him, “Why are you calling me? Isn’t there someone else you can call?” He said, “No.” So I sent him the money. I guess on that occasion it was I, not Obama, who proved to be his brother’s keeper. And besides George, the president has other relatives in dire need—his aunt Hawa Auma, for example, sells charcoal on the roadside in rural Kenya, and desperately needs money to get her rotting teeth fixed. Although Obama is aware of their plight, he refuses to help them.

Lending Club is changing the face of lending by removing the bank from the process. It operates online bringing together investors and borrowers directly so that both can benefit. The borrower benefits by getting a lower interest rate and easy access to funds and the investor benefits by earning a higher return than traditional fixed income investments.

Moses could have walked in the door, and if he said he came from fixed income, Vinny wouldn’t have trusted him,

Both had started in commercial paper, probably the sleepiest, least risky part of the firm’s business. Fixed-income trading was nothing like Fuld and Gregory knew in their day: Banks were creating increasingly complex products many levels removed from the underlying asset. This entailed a much greater degree of risk, a reality that neither totally grasped and showed remarkably little interest in learning more about. While the firm did employ a well-regarded chief risk officer, Madelyn Antoncic, who had a PhD in economics and had worked at Goldman Sachs, her input was virtually nil. She was often asked to leave the room when issues concerning risk came up at executive committee meetings, and in late 2007, she was removed from the committee altogether.

saw that it was the artificial needs of life that made me a slave; the real needs of life were few. A cottage and a hundred pounds a year in a village meant happiness and independence; but dared I sacrifice twice or thrice the income to secure it? The debate went on for years, and it was ended only when I applied to it one fixed and reasoned principle. That principle was that my first business as a rational creature was not to get a living but to live; and that I was

7. Use My Secret Weapon for a Final Check My secret weapon to blast writing errors out of the water is Grammarly.com.  They offer a free service that can catch many of the writing errors that your word processor’s spelling and grammar check misses.   What kinds of errors does Grammarly catch? They claim to be able to “instantly fix over 250 types of errors, most of which Microsoft Word can’t find.”  This includes the kinds of errors that I go over in the previous chapter on writing pitfalls.  For example, it can catch it if you use “its” when you should have used “it’s.”  Or say you use

The third leg of the stool addressed that. As with the old Nixon plan, there would be government subsidies for people below certain income levels so that they could buy policies.

Cutting healthcare costs means cutting someone’s income”—income that represented close to a sixth of the economy and, therefore, wielded unequaled power in terms of money and breadth. THE

some of the structural drivers of inflation have also weakened. Trade unions have become less powerful. Loss-making state industries have been privatized. But, perhaps most importantly of all, the social constituency with an interest in positive real returns on bonds has grown. In the developed world a rising share of wealth is held in the form of private pension funds and other savings institutions that are required, or at least expected, to hold a high proportion of their assets in the form of government bonds and other fixed income securities. In 2007 a survey of pension funds in eleven major economies revealed that bonds accounted for more than a quarter of their assets, substantially lower than in past decades, but still a substantial share.71 With every passing year, the proportion of the population living off the income from such funds goes up, as the share of retirees increases.

back over the last hundred years and you’ll see the pattern. During periods when the very rich took home a much smaller proportion of total income—as in the Great Prosperity between 1947 and 1977—the nation as a whole grew faster, and median wages surged. The basic bargain ensured that the pay of American workers coincided with their output. In effect, the vast middle class received an increasing share of the benefits of economic growth. America created that virtuous cycle in which an ever-growing middle class had the ability to consume more goods and services, which created more and better jobs, thereby stoking demand. The rising tide did in fact lift all boats. On the other hand, during periods when the very rich took home a larger proportion—as between 1918 and 1933, and in the Great Regression from 1981 to the present day—growth slowed, median wages stagnated, and the nation suffered giant downturns.

It’s no mere coincidence that over the last century the top earners’ share of the nation’s total income peaked twice, in 1928 and 2007—the two years just preceding the biggest downturns.

The tax cuts enacted in 2001 and 2003—and extended for two years in 2010—in 2011 saved the richest 1.4 million taxpayers (the top 1 percent) more money than the rest of America’s 140,890,000 taxpayers received in total income.

and growing need for fixed income securities, and for low inflation to ensure that the interest they pay retains its purchasing power. As more and more people leave the workforce, recurrent public sector deficits ensure that the bond market will never be short of new bonds to sell.

One of the worst outcomes of unemployment is finance; it is really tough for a jobless person to manage their basic need in such situation as they are not having any fixed source of the income. Loan for unemployed is a financial plan that is especially intended to assist unwaged borrowers. With the support of this financial service they can easily access the funds despite of not having a job.

Fixed Maturity Plan or FMP is a close ended mutual fund plan that invests in debt or fixed-income securities and has a fixed maturity. The

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.

Regressives say small businesses would be hurt by a higher marginal tax. Don’t believe this, either. Only just over 1 percent of small-business owners earn enough to be taxed at the top rate—and that’s just on the portion of their incomes exceeding $379,000. The

It’s scandalous that the four hundred richest Americans should pay an average of 17 percent tax on their incomes, a rate lower than that paid by many in the middle class.

It’s unfair that middle- and lower-income Americans have been paying a smaller share of federal income taxes and some pay no income tax at all. There’s nothing unfair about it. Fairness requires that people who make more money pay a higher portion of their incomes in taxes than people with less money. That’s called a progressive tax system, and it’s been a foundation stone of America’s tax code.

Persons aged 65 years and older comprise only 13 percent of the population, yet account for more than one-third of total outpatient spending on prescription medications in the United States. Older patients are more likely to be prescribed long-term and multiple prescriptions, and some experience cognitive decline, which could lead to improper use of medications. Alternatively, those on a fixed income may abuse another person's remaining medication to save money.

Yale New Haven, which has a tax exemption as a nonprofit institution, was on its way to recording operating income of more than $125 million. Its chief executive would earn a salary of more than $2.5 million, roughly 70 percent more than that of the president of Yale University.

Stop the Flow of Money It doesn’t matter whether we are on a fixed income or are blessed with abundant financial resources, a common denominator among enablers is the flow of money to our adult children. It doesn’t matter whether it’s $20 or $20,000, we must stop coming to the rescue with our checkbooks. Our money must cease being the life preservers that buoy up our adult children, keeping them afloat through yet another storm. We might be amazed at just how well our adult children can swim when given the opportunity to do so. More important, they just might be surprised at their own ability to survive without life support, a powerful lesson that no amount of money can purchase.

And, as inflation has fallen, so bonds have rallied in what has been one of the great bond bull markets of modern history. Even more remarkably, despite the spectacular Argentine default – not to mention Russia’s in 1998 – the spreads on emerging market bonds have trended steadily downwards, reaching lows in early 2007 that had not been seen since before the First World War, implying an almost unshakeable confidence in the economic future. Rumours of the death of Mr Bond have clearly proved to be exaggerated. Inflation has come down partly because many of the items we buy, from clothes to computers, have got cheaper as a result of technological innovation and the relocation of production to low-wage economies in Asia. It has also been reduced because of a worldwide transformation in monetary policy, which began with the monetarist-inspired increases in short-term rates implemented by the Bank of England and the Federal Reserve in the late 1970s and early 1980s, and continued with the spread of central bank independence and explicit targets in the 1990s. Just as importantly, as the Argentine case shows, some of the structural drivers of inflation have also weakened. Trade unions have become less powerful. Loss-making state industries have been privatized. But, perhaps most importantly of all, the social constituency with an interest in positive real returns on bonds has grown. In the developed world a rising share of wealth is held in the form of private pension funds and other savings institutions that are required, or at least expected, to hold a high proportion of their assets in the form of government bonds and other fixed income securities. In 2007 a survey of pension funds in eleven major economies revealed that bonds accounted for more than a quarter of their assets, substantially lower than in past decades, but still a substantial share.71 With every passing year, the proportion of the population living off the income from such funds goes up, as the share of retirees increases.

a basic income is arguably more justified by the need for economic security than by a desire to eradicate poverty. Martin Luther King captured several aspects of this rather well in his 1967 book, Where Do We Go from Here? [A] host of positive psychological changes inevitably will result from widespread economic security. The dignity of the individual will flourish when the decisions concerning his life are in his own hands, when he has the assurance that his income is stable and certain, and when he knows that he has the means to seek self-improvement. Personal conflicts between husband, wife and children will diminish when the unjust measurement of human worth on a scale of dollars is eliminated.15 Twentieth-century welfare states tried to reduce certain risks of insecurity with contributory insurance schemes. In an industrial economy, the probability of so-called ‘contingency risks’, such as illness, workplace accidents, unemployment and disability, could be estimated actuarially. A system of social insurance could be constructed that worked reasonably well for the majority. In a predominantly ‘tertiary’ economy, in which more people are in and out of temporary, part-time and casual jobs and are doing a lot of unpaid job-related work outside fixed hours and workplaces, this route to providing basic security has broken down. The

The life of austerity and frugality that was the old samurai ideal was not adhered to in the years of Tokugawa peace. The samurai’s income was fixed in terms of rice stipends but their expenses grew as they adopted a less austere lifestyle. They tended to live in fine houses and wear quality clothes. Many pursued hedonistic lives attending kabuki performances or frequenting expensive brothels and patronizing “geishas.

To design/maintain a portfolio: Pick an equity allocation you’re comfortable with. We chose 60 percent equity, 40 percent fixed income. Choose which indexes to track. Pick the investment funds that track those indexes. As your investments fluctuate in value, rebalance to your target allocation.

The main components of an OP1 narrative are: Assessment of past performance, including goals achieved, goals missed, and lessons learned Key initiatives for the following year A detailed income statement Requests (and justifications) for resources, which may include things like new hires, marketing spend, equipment, and other fixed assets

MBS face all of the regular risks (changing interest rates, for example) linked to bonds and other fixed-income securities, and two that are unique to them. These special risks are tied to the underlying mortgages: homeowners could default (stop making payments, substantially more likely with private-label MBS) or pay off their loans early, either of which would affect investor yield and cash flows.

MBS can be harder to buy and sell than other types of bonds, as they’re bought mainly by institutional investors. Many MBS are issued and sold in large denominations (like $25,000 minimums), but some are issued at $1,000 (like most other types of bonds). You can trade MBS through specialty bond brokers, which you can find at most major brokerages (like Charles Schwab or Merrill Edge). The easiest way to invest in MBS is through specialty mutual funds or ETFs. Though technically MBS are not fixed-income investments (because the payments can vary monthly), they’re usually included in that category (because they’re bonds).

Whereas the industrial revolution paved the way for a new middle class and lifted overall prosperity, the tech revolution has helped to hollow out the middle class and catalyze a greater level of income inequality than at any time in modern history. And no matter what some tech executives, venture capitalists, and their investors claim, these trade-offs need not be the inevitable consequence of progress.

do would share in the additional bounty; that many millions of middle-class jobs and careers would vanish, along with fixed private pensions and reliable healthcare; that a college degree would simultaneously become unaffordable and almost essential to earning a good income;

well-to-do would share in the additional bounty; that many millions of middle-class jobs and careers would vanish, along with fixed private pensions and reliable healthcare; that a college degree would simultaneously become unaffordable and almost essential to earning a good income;

By 1994 sales and trading was driving most of the firm’s revenues, and its engine was fueled by derivatives. Although my new group, known as DPG—for Derivative Products Group—employed only a few dozen people, it was a major hub at the firm. DPG was centered between the firm’s two core businesses: the Investment Banking Division (IBD) and the Fixed Income Division (FID). My first observation at Morgan Stanley was that the most difficult part of working there would be memorizing all the damn acronyms.

Profitability can be fixed over time if the business has firm roots, but cash problems are usually a sign that the end is coming. Cash is harder to manipulate. While the income statement uses many estimates and can be subject to deliberate manipulation, cash is easily measured because it is backed by what's in bank accounts.

They gain distance from the anxious obsessions of local mind. Their internal chemistry changes as “feel-good” neurotransmitters like serotonin, dopamine, anandamide, and oxytocin flood their brains. In this state they gain a nonlocal perspective. They are open to an infinite range of possible options and outcomes. The self, rather than being trapped in a limited fixed local reality, is able to try on different possibilities. This “knocks out filters we normally apply to incoming information,” leading to associative leaps that facilitate problem solving and super-creativity.

SOFR is a combination of three Repo rates: deliverable GC, GCF, and Tri-Party. The deliverable GC component is an average of all inter-dealer U.S. Treasury General Collateral trades that settle in FICC (Fixed Income Clearing Corp.). GCF is short for General Collateral Finance, and it’s basically inter-dealer Tri-Party trades that settle within FICC. The last component is the Tri-Party rate, and this rate is very important for understanding SOFR. Tri-Party is the average rate for Tri-Party trades that settle at the Bank of New York (BONY). Whereas GC and GCF are dealer-to-dealer rates, Tri-Party is a dealer-to-customer rate. What does that mean? It’s where the Street borrows money from customers, not from each other. Dealer-to-customer means the rate is on the offered side of the market, or lower if the dealer marks up the rate, which we commonly do. The Tri-Party rate is always lower than the inter-dealer rate. And it means that SOFR should always trade below Repo GC.

The second ingredient on which our identity is based is the same as for the chariot. In the process of reflecting the world, we organize it into entities: we conceive of the world by grouping and segmenting it as best we can in a continuous process that is more or less uniform and stable, the better to interact with it. We group together into a single entity the rocks that we call Mont Blanc, and we think of it as a unified thing. We draw lines over the world, dividing it into sections; we establish boundaries, we approximate the world by breaking it down into pieces. It is the structure of our nervous system that works in this way. It receives sensory stimuli, elaborates information continuously, generating behavior. It does so through networks of neurons, which form flexible dynamic systems that continuously modify themselves, seeking to predict109—as far as possible—the flow of information intake. In order to do this, the networks of neurons evolve by associating more or less stable fixed points of their dynamic with recurring patterns that they find in the incoming information, or—indirectly—in the procedures of elaboration themselves. This is what seems to emerge from the very lively current research on the brain.110 If this is so, then “things,” like “concepts,” are fixed points in the neuronal dynamic, induced by recurring structures of the sensorial input and of the successive elaborations. They mirror a combination of aspects of the world that depends on recurrent structures of the world and on their relevance in their interactions with us. This is what a chariot consists of. Hume would have been pleased to know about these developments in our understanding of the brain.

Tackling difficult problems requires holding many ideas at once, and not being rigidly attached to any of them, as we saw in Chapter 3. Some may even be mutually exclusive. When we gain distance from our local minds in meditation, this opens up perceptual space. People in flow states can consider many options. Kotler notes that this “knocks out the filters we normally apply to incoming information” and loosens up our identification with a single fixed reality. This greatly expands the range of possibilities our minds can juggle, opening up our creativity and productivity. Meditation produces a high-performance brain, able to solve wicked problems, as we’ll discover in Chapter 8. Take a deep breath, and think for a moment about your life. Imagine being 500% more able to solve knotty problems. Picture yourself being 490% better at acquiring new skills and eight times better at conceptual tasks. That’s mental superpower! What might your health, your work, your love life, and your finances look like if you had that superpower? Probably a whole lot better than they do now.

The powerful blast first entered the director through the starboard hatchway, where Dvorak sat—in a direct line with the incoming fireball—hands tight on his steering wheel’s brodie knobs. The concussion and fireball hit him first—full force—while it raced starboard to port. As if a rag doll, Dvorak was at once lifted from his position, and slammed back, hard, against his fixed metal seat. The force then caught Stratton in the face and chest; grabbed and slammed him against the bulkhead and, according to Stratton, “…rattled me around like a piñata.” “I thought I was going blind, from the fire”, Stratton would tell Lauren, years later. On the platform, Zeke had already decided to head back inside. He managed to grab hold of the hatchway handles just as the blast raced through and circumnavigated the director. The force of the concussion hit him in the back, and face-on. As if a spirit’s presence had seized his body, it grabbed at Zimmerman’s torso and bent him forward, then backwards. The impact ripped his grip from the door handles, sucked him into the flames, and dispatched him, hard, against the platform’s railing. Inside, Hollowell was propelled backwards, across the steel cube. His head slammed against the range finder with a forceful blow, and his body was dumped next to Lott—who had pulled Lauren’s blanket tighter across his own head. The hellish fireball had sucked oxygen from the cube, shot across the steel shell, and merged with a second blast of flames through the port and rear hatchways. As if in a boxing match—in a futile attempt to protect his face from being hit by the fire and heat—Lauren held tight to the range finder. Instinct caused him to raise his right arm around the viewport, for protection.

All the losses came back on those who had fixed incomes and salaries; the only gainers were speculators, and those fortunate few whose incomes were in dollars.

Net revenue minus COGS equals gross margin. Gross margin minus expenses (fixed and variable) equals EBT. EBT minus taxes equals net income.

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.

Once again, a single sentence would hold the key. I found it in The Economic Status of Black Women: An Exploratory Investigation, a 1990 staff report of the U.S. Commission on Civil Rights: On average married black women contribute 40 percent to household income compared with only 29 percent for white women.° Simply put, all wives did not contribute to their households in the same way: Black women were likely to earn as much (or more) money as their husbands, while white women were likely to earn much less. This was certainly true in the case of my parents (whose income was more or less equal most years). But the joint tax return system, under which most married couples file their taxes together, offers the greatest benefits to households where one spouse contributes much less than the other to household income. That meant couples like my parents-my hardworking, home-owning, God-fearing parents, who wanted to earn a little bit more to enjoy their lives after raising two daughters-weren't getting those breaks. My parents' tax bill was so high because they were married to each other. Marriage-which many conservatives assure us is the road out of black poverty -is in fact making black couples poorer. And because the IRS does not publish statistics by race, we would never know. It's long been understood that blacks and whites live in separate and unequal worlds that shape whom we marry, where we buy a home, whom we have as neighbors, and how we build a future for our children. Race affects where we go to college and how we pay for it. Race influences where we work and how much we are paid. What my research showed was that all of this also determines how much we pay in taxes. Taxpayers bring their racial identities to their tax returns. As in so many parts of American life, being black is more likely to hurt and being white is more likely to help. The implications of this go far beyond the forms you file every April. In the long run, tax policy affects whether and how you'll be able to build wealth. If you're eligible for tax breaks, you either pay less in taxes throughout the year or receive a larger refund in the spring. If, like my parents, you're considered ineligible for a particular tax break, you never see that money. One missed tax break may not sound like much, but those dollars not given to Uncle Sam can be put into your bank account, invested in stocks or property, or used to build home equity through improvements or repairs every year. Think of that money as an annual pay raise – but if you do not get it, you cannot save it. Over time those dollars, or the lack of them, add up to increased or depleted wealth

Environmental influences almost invariably point investors down the path to investment failure. Advertisements flog stocks at equity market peaks, with nary a mention of diversifying fixed-income assets. After stocks suffer bear-market losses, the media tout the beneficial effects of owning bonds as an important part of a well-balanced portfolio. The overwhelming bulk of messages to investors suggest owning yesterday’s darling and avoiding yesterday’s goat.