More French Stuff!

Well, tonight my favorite orthodontist and I are going to a party at the French Embassy. I would like to say it was on the invitation of the French ambassador, but Leila bought tickets for us both. They have lots of French things (one would think). I will have to see if my impressions of Paris will get me invited back :) I'm bringing my ST Dupont lighter (from France) so that has to count for something :) I'll write a follow-up tomorrow about the party.

School is over :) School is over :(

Well, it is done. I finished my last class at the University of Phoenix. Presuming I did as well as I think I did in my last class, my GPA for the last two years is 3.98 (I got a A- in one class). Of course, I am excited to have my life back again. No more writing papers, reading textbooks, or coordinating team efforts. My week has been centered around Thursday nights since January 2005. While I am elated, it is not without its share of melancholy. I have been with some members of my class since I started. I have been on teams and communicated more with my school mates than with my friends. As it turns out, my school mates became my friends. Too often in life we meet a group of people that things just seem to gel. Call it mutual respect, like mindedness, or anything else for that matter. No matter what it is called, I hope we manage to stay in touch. We have all been part of a group that when you split up, the contact becomes less frequent. Then maybe a Christmas card, then you wake up one morning and wonder what happened to them. As many have before me, I am determined to not let that happen. I hope we can get together for dinner once in a while. I know I have thoroughly enjoyed my experience at school due, in large part, to the people in class. This has been a great experience. After 23 years, I finally have a bachelors degree. That has not really set in yet. Will my life be different? I don't know, but it is surely better for having known Amy Trout Hughes, Wayne Shrader, Marcos Alvarez and Donna Dawes. I wish you all the best of luck and for God's sake, put on your helmet.

School

Well, It has been a good while since I posted here. To all my adoring fans (all two of you), I say, the smoke is clearing. School is almost over. December 7th is my last class and then I have a few CLEP tests to take in January. Then, a break before serious law school preparation starts. I plan on writing much more and regularly) once school is over. I even have a new feature in the works where I argue a point with a blogger I met that frequently takes an opposite social and political view than I. Look for that feature starting in 2007.

Scoop!

You heard it here first folks. Way back on October 15, 2005, I predicted that Bill Frist would not run for President. I theory was because of the HCA ethics scandal. As the Senator just announced he is not running, I can only speculate on the causes (but I am guessing for family reasons--the universal excuse). Yet another GET by the blogosphere.

Talk like a Pirate Day

It's talk like a pirate day. Apparently, my pirate name is Iron Tom Rackem. Argh!!!

Coming Clean on France

I was the worst offender. I made the jokes about the French giving up. Yes, yes I did. But, now; thanks to a visit to this marvelous place, I am cured. You see, if you don;t like the French, the I have a simple plan -- go to France. I can hear you saying it, but they are rude. That is simply an outdated idea. It is very much the other way around. It is we Americans that are the rude ones. We walk into a store and immediately we start talking business.

"How much is this?"

"Do you speak English?".

The French are so much more polite and civilized than we. You walk into a store, say hello! Or Good Morning/afternoon/evening. Take a moment to be civil. Take a moment to remember that we are both human beings and some basic courtesy goes very far indeed.

I had the greatest week in Paris. The French people were wonderful. They were more than helpful. Between my limited (and Spanish-accented French) and their English ; we made it through. The metro clerk was even asking me how to say 55 cents. A far cry from the idea that they refuse to speak English. So, the next time someone takes the fashionable path and starts to bash the French, ask them if they have been there? If they have, ask them if they took some time to maintain their membership in the human race? And if they have not been there (or you for that matter), make a reservation and go see what the world is talking about. It is one of the greatest places on the planet.

An American in Paris

Beyond the Business class flight to London, the Eurostar train ride to Paris and navigating a new Metro system in French, the long road to Rue Cler was done. My son, David, and I were checked into the hotel on Rue Cler -- a little 3 block open-air market where many Parisians (and perhaps a few too many tourists in June) call home. As it was around 8:00 PM (20:00) that lovely evening, David and I set out to find the lightning rod of our motivation, Tour de Eiffel. We have all seen the pictures, in the nighttime light, in the day time sun -- unfortunately, on the Las Vegas Strip. The Eiffel Tower is in many ways synonymous with France itself. Gustav Eiffel's monument to man's dominance over the elements was set forth on the world in the last 19th century. No matter how many ways you see it, you have never seen it. Until you are there, with your own eyes in its presence, you have not seen anything. As it was night, the lights were on the tower. Great yellowish lights illuminating the focus of the city of light. I have seen many beautiful things in my life. I have seen the sight of the city from the top of the World Trade Center. I have seen the sight from a 10,000 tall mountain overlooking snow covered peaks. I have seen the first moments of my son's life in the delivery room. None of those could have compared me for what I saw that night. Maybe it was the sheer size of the tower or perhaps, it was the way the light hit it just so. In retrospect, I think it was the overwhelming fact that I, this poor kid from Brooklyn, was standing at the foot of a legend. I was so overwhelmed with emotion; I could not spare the tears. It was in many ways surreal. Was this real, a dream? Maybe it was one more of those simulations we Americans are so fond of doing, as if it could ever come close the seeing the real thing. No matter what the source of the emotion, I was clearly gazing at the most beautiful thing in the world. So tall, even somewhat scary, yet, so light and elegant. Is there any other way to describe traveling to a foreign city. I was ill prepared for the feelings. The fact that I was able to share this with my son made it all the more special. He is 12 years old and he has already seen some amazing things. I know the concept that we want more for our children than we have had. So, in many ways, it was fitting that we saw this together. You see, as I got the chance to see this magnificent homage to the industrial age with my son in hand, means this is always something we share. The world is filled with beauty -- manmade and natural. All you have to do is step back, and look at it. It may take a plane, train or simply a walk across the Potomac, but beauty is there for those that seek it. Viva la France!

The Time Value of Money

Here is a paper I wrote for a finance class I thought was a clever way to explain the Time Value of Money.

As most loan sharks know, the interest is what generates the profit. While not condoning illegal behavior, the more seemly side of finance does illustrate a valid point: when people need money, someone has to be willing to lend it to them. But, this is not without its risks. Loan sharks typically charge a high interest rate – “the vig” – compared to other institutions. This is because they assume more risk of non-payment. Additionally, their collection policies are somewhat different than the corner bank. While perhaps an extreme example, this arrangement presents the same challenges as any other use of money. The shark must consider not only the potential of being repaid the principal of the loan – “the juice” – but the opportunity cost of the loaning the money to the customer. Opportunity cost is defined as "the advantage forgone as the result of the acceptance of an alternative” (About 2006). In this case, the loan shark could otherwise invest his money in gambling, racketeering, carting or some other activity. The future value of those enterprises with the same money must be weighed against the interest paid on the juice. If the loan shark loans $10,000 for 7 days in return for a total payment of $12,000, then the $2000 interest payment must be higher than the potential opportunities the $10,000 could have been used for in the interim 7 days. Depending upon the depth of the shark’s organization, $10,000 may indeed be able to generate more than $2000 in a 7 day period. This would be an example of the opportunity cost being more than the realized profit from the enterprise.

To bring this discussion into the realm of the legal, the same applies for countless examples in personal and corporate finance. In both of these areas, money must not only be considered as a current commodity, but for the investment vehicle it provides. Specifically, any potential investment must not only be considered in terms of the return but the potential of that money to perform in other ways. For example, while dipping into Retained Earnings to finance a new plant might be a way for a company to minimize debt, the potential advantages of liquidity must be outweighed by the incurrence of the debt. Many times, a corporation with cash-on-hand will still assume long-term debt since the retained earnings may be able to return more as an investment than the interest on the debt. While it would seem to be in the company’s best interest to carry as little debt as possible, it may actually cost money to not borrow money if borrowing cash means better earnings on other investments.


Another area that corporations (and loan sharks) must carefully analyze is the effects of recurring payments on money over time. For example, the protection money that the local deli pays to the Stunad crew is an example of an annuity as the money is paid in a fixed amount over time. The annuity would typically end with the untimely demise of the Stunad captain or the deli owner – whichever comes first. In paying this annuity, the deli owner must consider the opportunity cost of paying the money versus investing in his own business. However, as with all opportunities, the owner must also consider the ramifications of forgoing the investment in his personal welfare (specifically the aforementioned untimely demise). In the Stunad crew’s case, they must consider the cost of administering the annuity with items such as collection fees, opportunity costs of enforcement versus other enterprises and the value their other enterprises would reap in a long-term investment. Typically, this protection annuity is deemed to be in perpetuity as the organization would continue to collect even if the owner changed hands. Just as with the Stunad organization, large corporations must consider the long-term effects of annuity vehicles such as pension plans. Pensions must be funded from funds inherent within the pension or from net income. In a public company, this presents a charge against earnings each year that only continues as workers get older and continue to retire. The annuity in this case can present an undue burden upon the operations of the company and prevent future investment or expansion.


While it would seem that typical Mother’s and Father’s Italian Associations and large publicly-help corporation may be very different; within their business dealings they must consider some of the same issues. The ability to generate cash is but one factor in the successful operation of their business. They must also consider the cost of their investments and the cost of taking -- or leaving -- an opportunity. With proper attention to the time value of money, the whole family prospers.


References
About.Com (2006). Opportunity Cost – Every collar we spend is actually 6.7 lost forever. Retrieved April 6, 2006 from http://credit.about.com/cs/consumerwisdom/a/081100.htm.

Iran claims missile test - Mideast/N. Africa - MSNBC.com

Iran claims missile test - Mideast/N. Africa - MSNBC.com

Perhaps it is the tale of David and Goliath. Or the seemingly endless historical evidence that the underdog can win over the arrogant aggressor. Whatever the reason, leaders of other countries have always underestimated the resolve and the ability of the US at their own peril. Certainly, we are parochial in our view of our place in the world. We but into other's problems and try to apply our simplistic notions to complex centuries old conflicts. Be that as it may, as much as I would like to let these little gnats of government leaders save some face, all they are doing is testing our resolve. After the attack on Pearl Harbor, Admiral Isoroku Yamamoto is quoted to say "I fear all we have done is to awaken a sleeping giant and fill him with a terrible resolve." Discussing the different effects that the US Civil War had on the North and the South, historian Shelby Foote say he thought the North fought the war with one hand tied behind its back and the South never really had a chance.

What possible outcome could Iran hope for in escalating a war of words and actions against the US. Do they really think the US would allow them to develop a nuclear device Would Iran be extreme enough to actually use it? As with far too many events in the history of governments, the people suffer for the lack of foresight and false bravado of their leaders. The people suffered far more in Germany and Iraq than their leaders. Would the leaders of Iran force the US hand to detonate a warhead in Tehran in retaliation for an attack on the US? It is called mutually assured destruction for a reason! In this case, it would be limited destruction for the US and complete vaporization for the great people of Iran. Yet, these people elected a theocracy into power.

I am sure each "David" always believes they have a unique ability against their particular Goliath. But in this case, the only thing the leaders of Iran are going to do is strengthen our resolve and their people will suffer. While we may be the decadent West, the fact remains that Tehran would become a distant memory on a map with the contents of a single Los Angeles class submarine. Surely, they realize this and will not truly try our patience. Especially with this President!

The day the music died

On February 10th, 2006, my Mother passed away. She had been in and out
of the hospital and gave passed away shortly after an operation for a
kidney problem. The emotions on this are impossible to explain. I lost
my Dad 21 years ago, but then; someone else handled all the details.
This time, I handled the details. Planning a funeral is not something
that should be done by the people most effected by the death. This
should be done ahead of time.

Once I came home, I wrote a letter. I wrote what I want to happen to
me when I die. Where I want to be buried, the clothes I want to wear
(Hawaiian shirt - I made David promise me he would do this), where the
life insurance policies are. All the things someone will need to know
when they are going through your stuff. I encourage everyone reading
this to make a will and ensure your loved ones have it all laid out
for them. They should not have to think during this time. It would be
best to give a letter to the funeral director and say, "it is all in
there - call if you have any questions!". That is my intent. While
none of us want to think about our own death, I assure you all it will
happen. While it is important to plan the end for those left behind,
please do not forget that life is in the living.

Those that love you will certainly miss you, but they need good
memories to get them through. They need to know how you felt about
them. They should never doubt that you love and care for them.
Fortunately, I had the peace to know how much my Mother cared for me
and loved me. I understood that while we may have had our moments (I
was a teenager after all), we also understood each other enough to
realize were in many ways the same. I loved my Mother dearly and will
miss her for the rest of my life. But, I am able to continue on
because I can see her in the eyes of my son. I can see her in the
curiosity and intellect that is David. She always let me know how much
she loved me; it was never understated. I will always miss her and am
greatly comforted by the fact that she is now in peace. Mom, I miss
you, I love you and I am eternally grateful for the lessons you taught
me. I only hope that I can measure up and be the man you wanted me to
become.

Life

With the anniversary of Roe v. Wade, and the march in Washington, I began to ponder the question of abortion. We can call it right to life, or pro-choice - those are just names. We can call it any other polarizing phrase that comes to mind. When does conception start? How arrogant of man to think it starts when he defines. Before you believe I am of one side or the other, let me be clear. I think abortion is a terrible thing. I wish there was no need for it. I wish woman didn't use it as birth control. I know that sounds callous, but even after multiple abortions, I know woman that still use it as the ultimate backup plan. Even though I wish that it was not necessary, I will fight to the death for a woman's right to choose. I strongly believe that man cannot be the final arbiter of what happens in a woman's body. The fetus is in the woman's' body, not someone else's. If the woman chooses abortion, that is her right. I don;t believe that by limiting the choice of abortion, one less abortion will ever happen. It will simply switch to a state issue. Some states will rule it illegal, some states will rule it legal. Women that want abortions will simply go to the legal states. The only ones is will effect is that scared girl that has become pregnant and doesn't know what to do. Her life will change. She should of thought of that before, but we all know accidents happen. I have the sad experience of being involved in a relationship that resulted in an unwanted pregnancy. It was just to early in our lives - or I guess we were both scared of what it meant. Knowing the type of child I have now, I can't help but think what that child would have been like. As he would have had at least the same father as David, I cannot help to think the child would have had some of the same qualities. I regret the choice, yet it was not my choice to make. It is not like I resisted it though - I paid half the money!

It is far too easy for those unaffected by this issue to stand there outside the clinics or at the Supreme Court. They love the country that allows them the right to assemble and speak their mind. Yet, the abhor the very same principles when a woman chooses to terminate a pregnancy. I have been effected personally by this issue and I will always regret my complicity - yet I steadfastly remain supportive of a woman as the master of her own domain.