Tag Archives: Money

You Are What You Tweet

You Are What You Tweet

Jamie Reuben Hosts Book Launch for 'The New Digital Age' By Eric Schmidt and Jared Cohen“The New Digital Age” by Eric Schmidt and Jared Cohen points out that, “by 2025, the majority of the world’s population will, in one generation, have gone from having no access to (uncensored) information to accessing all of the world’s information through a device that fits in the palm of the hand.”

Eric Schmidt is the Executive Chairman of Google and Jared Cohen is the Director of Google Ideas, coming from a State Department and Security background. They have so many interesting scenarios of how things could be in the future that on page 53, I came up with a Movie of the Weeks idea about a fearless war correspondent working secretly because the system is set up so that even his editor does not know his/her identity. She was recruited “Charlie’s Angels” style by the senior editors who recruit and vet correspondents.

The focus of the book is quite international and the policy implications fill the last half of the book. They end with this thought:

the virtual and physical civilizations will affect and shape each other; the balance they will strike will come to define our world. In our views, the multidimensional result, though not perfect, will be more egalitarian, more transparent and more interesting than we can even imagine.

If We’re So Smart, How Come the Boomerang Came Back To Whack the Stock Market?

If We’re So Smart, How Come the Boomerang Came Back To Whack the Stock Market?
If We’re So Smart, How Come the Boomerang Came Back To Whack the Stock Market?

Interesting watching the stock market gyrate as I read Boomerang by Michael Lewis, the guy who wrote Moneyball and The Blind Side. The EU did not know, when they accepted Greece in 1981, that Goldman Sachs would later teach the Greeks even more sophisticated ways of acquiring and hiding national debt, eventually bringing the Euro to the brink, says Jim Hoaglandin his editorial in The Washington Post.  He agrees with Michael Lewis that historicaly, the Greeks refined milking their government into an art, and they were certainly not going to treat the distant, generous European treasury in Brussels differently.  Hoagland quotes a Friench friend who was in the government that championed Greece’s entry to the EU.  “Bringing Greece in and expecting the budget figures to add up was a romantic policy.”

Michael Lewis is a “disaster tourist,” visiting countries that are on the brink of economic collapse due to spending more than they earned. It is fascinating to see how each country behaves differently when “in a dark room with a pile of money.” I laughed out loud when I finished the chapter on Ireland. The Irish are not like other people!

This frequently-updated graphic from the NYTimes that tracks the European debt crisis clarifies the shifting sands of exposure to crisis that the Euro faces. I had to look up the statistics for the US (missing from the chart). We have about 100% debt-to-GDP and about 10% unemployment as I read the statistics. So much seems to hinge on the credit rating, which we know from reading Michael Lewis’s “The Big Short” is sometimesfanciful, almost magical, and not in a good way. Like magical thinking.

Do you think the Euro will stabilize promptly or deteriorate further?

Margin Call Absorbing

Margin Call Absorbing

First-Time director J.C. Chandoor, who also wrote “Margin Call”, somehow gets us to see the human side of the bankers that brought the world economy to its knees. If you understand that things are only worth what you can sell them for, and that the investment banks held certain “tranches” on the synthetics they were selling, you will quickly grasp how the math model projections stumbled upon by the junior risk manager portend the end of the financial markets as we know them.

How could we ever care about the fates of these greedy men, much less sympathize with them. They wiped out our retirements funds, and yet, at the end, we see what drove them. Some were venal, some were greedy, some were desperate and some were just resigned to their fate. What is stunning is that the caliber of acting draws us in and makes us care about these men.

Demi Moore, whose real name is Demetria, looks more Russian than ever. Deep fear flickers in her eyes behind the hostility of a wolverine defending her economic projections. When she faces off against Jeremy Irons, it is like watching smooth poison being spread before her.

The movie belongs to Kevin Spacey, however. Chandor’s savvy direction gives him a chance to show the conflicting emotions playing out as he tries to prevent the implosion of the company where he has spent his career. He wants to protect the young brokers working for him, he wants to protect the clients of the firm, but most of all, he wants to protect himself. Do we care? Yes, because of a brilliant performance by Spacey, which barely stands out in a stellar cast including smooth, charming, brilliant and ruthless Jeremy Irons as the guy who has to make the decision on when to pull the trigger and where to aim the gun.

It is playing in Santa Rosa at the Summerfield Theater and I hear it is available on streaming TV. Worth a watch.Simon Baker in Margin Call

Margin Call Movie

Margin Call is Absorbing