BK has left the building, Next Man Up.

"Brian Kelly could have been a legend at UC."

And what will he be if he turns around Notre Dame? If he doesn't I can tell you he will be 20 million dollars richer.

Lets be honest, who didn't see this move coming, BK staying in Cincy, get real. He was larger than life here, of course we all wanted him to stay, but he is gone. The saying in the N.F.L. goes when a player is injured or coach leaves, "Next man up."

I cannot find one good reason to support BK staying in Cincinnati, lets take an in depth look:

Notre Dame is a Bentley, UC a lexus, both nice but clearly different. The money BK will receive in his new contract will be substantially more than before. Tell me you wouldn't do the same job for three times the dough.....and if you believe Notre Dame football is dead, again tell me you wouldn't do the same job for three times the money at a lousy company!!

Notre Dame played in the Sugar Bowl in 2007, they got crushed by LSU. Their record before being selected, 10-2.....compared to a perfect season, it doesn't take close to as much to get to the big dance through Notre Dame. Their clout is huge, TV Network, 8 home games a year, and my favorite; if Notre Dame finishes in the top 8 of BCS teams, they are automatically selected to a BCS game. If they finish in the top 12, they are considered for a BCS spot. Notre Dame now receives $4.5 million for playing in a BCS game and $1 million when they do not (Wiki).

So finishing 12th in the country with Notre Dame = Sugar Bowl, WOW! UC had to go undefeated, a loss to Pittsburgh would have put us in the Car Care Bowl which gives the participating teams free oil changes in the bowl gift package.

So now that money, legendary status, and having an easier path to a BCS game have been cleared up, why should BK have stayed? To become the Joe Pa of Cincy? But he has a shot to become the Joe Pa of South Bend and if not he can start his own bank when he is fired.

Was he dirty in telling the players?...maybe. He waited for the banquet, the first team meeting since the Pitt game, so this is debatable, and he didn't "officially," announce to the media he was staying in Cincinnati....so now that he is gone, yelling at him for back stabbing is paltry.

So he didn't commend UC initially for getting him to this stage. Again something I am not going to delve into...if this is really a gripe (and your not on the football team) then your just bitter. Kudos to the players who will take their anger out on Florida!

The bottom line is this, BK is gone, if you didn't see it coming then perhaps you were a bit naive. Be happy for him and hope he ends up like Rich Rodriguez or Mark Dantonio (anyone remember him). Meanwhile put faith in Mike Thomas to hire another outstanding coach, keep Kerry Combs on the staff, and make this program like a Utah football or a Xavier basketball.

So before we bash the man that gave us two spectacular seasons of football, put yourself in his boots. The next coach will be leaving as well, we want to be a destination, but lets be real....if only that kick would have sailed wide.........

The News Record - Blame should lie with US politicians - 4

The News Record - Blame should lie with US politicians - 4

The News Record - State of the economy hard to determine

The News Record - State of the economy hard to determine

Whats theory got to Do with it......

Have you ever been in a class and felt as if you were on top of the material only to realize at some quick moment you were completely lost? Professor, back turned for a solid hour and fifteen minutes, dubiously writing on the dry erase board. You trying to scratch down notes, and then getting hit with the fact that you missed something and stopping to ask about it only means your going to be worse off.

Well today was one of those days for me. After deliberately trying to succeed in a class of mine for the last two weeks, I realized a good 8 minutes in today that I have no shot at staying awake in this class for the rest of the quarter. The problem; only 4 people are taking the class! Not to mention these other 3 scholars are smart and I am the fat kid on the tube, being pulled slowly by a boat of mathematical whizzes.

My problem is not that I am behind, but rather that my professor seems to enjoy the material way to much to understand he needs to stop writing on that white board, and start explaining some theory. My other problem is that at the end of the day, what we are learning is nothing but theory, and now I have a new theory = If you take this class and others like it, you will not get a job or meet anyone because you'll be too busy trying to understand what the hell is going on.

Above I have posted a little snippet or sample if you will of a days notes for everyone to enjoy, did I mention of our last homework assignment, about 20 total pages of loose leaf was turned in among us four students, one page (front and back) was mine.....you do the math.

Sex during bad economy complicated, News Record Column

A sour economy provides interesting twists in social behavior, with the latest fascination of many media outlets being the rise in condom sales during the recession.

Theories for this rise include sex drive being immune to the recession, at-home entertainment being cheaper than out-of-home entertainment and an increased rationality about having an extra dependant in the budget, said William Saletan of Slate magaine.

But what really constitutes the rise in condom sales? For one, condoms are cheaper than birth control pills; 23 percent of women are having a harder time affording birth control, according to a Washington Post survey.

The problem there exists with reliability: Statistically, condoms are a tad more risky than birth control, but is that extra risk worth the extra cost of birth control?

Let?s be clear: More condom sales does not necessarily translate to more sex.
?In this economy, even sex doesn?t sell,? said The Los Angeles Times in reference to plummeting profits of Nevada brothels.

It?s also worth noting adult entertainment mogul Larry Flint did request a government bailout, even though his industry, as he puts it, is ?in no fear of collapse.?

Sex may be a cheap form of entertainment, but stress and other factors specific to each couple probably determine the sex drive.

Couples are looking to save money now, so they purchase the cheapest method of preventing pregnancy. Increased use and sales of protection could also be tied to the expense of raising children.

Having one more child can put a middle class home down a rung on the financial ladder. Not only is the amount of time a burden, but the cost of education is huge. We do not need extra hands on the farm today; the return of investment on a child is far less than ever.

Parents are decreasingly relying on their children to take care of them into old age, so why would having many children be a top priority? What once was just one extra mouth to feed in exchange for 10 years of labor has now become a huge expense with no financial benefits.

The estimated cost of raising a child born in 2007 to the age of 18 soared from about $25,000 in 1960 to $205,000, according to the Time magazine article, ?Million dollar babies.?

And that does not include a college education, which, if paid for by parents, can make children even more expensive.

People make quick, intuitive decisions: Buying condoms in the short term is cheap compared to the little bit of extra risk added by switching from birth control. But, the increase in sales could also be a result of how expensive children have become.

More couples could be purchasing protection that were not before and spending a tad more in the short term to avoid a huge cost for life.

Our generation will most likely continue the trend of fewer children per couple. We will use more protection as a result of an extra bill our parents may not have had: the college loan payment.

Thousands of variables can be used to measure a difference in couple?s love lives, but too much complexity is a weakness.

Almost everyone measures cost-benefit in the blink of an eye, and in one blink the cost of contraception compared to the cost of a child could easily cause the 5 percent increase in condom sales for last quarter.

Where Do We Draw the Line?

After the election of 1800, Aaron Burr wanted to continue practicing law while holding the title of Vice President of the United States, he was not allowed by Thomas Jefferson. Imagine the poor fellow who would be defending someone or something against the Vice President of the United States. The office is held in high regard and surely no jury would go against the Vice President in a court decision.

Today, the President of the United States wrote (or had someone write) an article in the New York Times, "Why We Need Health Care Reform." Currently sitting as the number two read article in the paper and soon to be number one.

Does anyone else find it appalling that the president can use his office in order to deliberately sway the public after being elected? There has to be as John Goodman in the film The Big Lebowski mentions, "a line in the sand".......could anyone not in favor of the Presidents health care reform get an article published this week in the New York Times rebuking the President?

It is bad enough to see the millions of dollars thrown around for competing advertisements and graft among senators. Does the president also have to participate? If so, may he be called the King and addressed as "his highness?" The power of the office is a great army to confront. This army of sway power much like Aaron Burr's in a court room in 1801 should not be allowed.

Something's Gotta Give.

As we fall deeper and deeper into debt, things are going to change. The old business strategy of "expand, expand, expand" may turn into one of, "lets just make sure our long term debt = 0."

Considering a future America that must change and become more efficient, I wonder about the USPS. Yes, the postal service, the monopoly, third largest employer of people in the country (700,000+ employees) and single largest vehicle owner. Productivity has increased at USPS over the last eight years, but their long term debt is over 6 billion dollars. Eventually they are going to have to make a move and hopefully not become the next GM.......could they sell all mailing rights to UPS and FedEx for 10 billion and fulfill all their long term debt obligations (like 7.5 billion in pension)?

Either way, somethings gotta give, employee pensions or postal services (or both)......by the way don't expect mail on Saturdays anymore. And if you live off the road 100 miles, shouldn't you have to pay more for someone to spend the time to deliver you something than the guy who lives in the city?

There are better solutions than shuttering the joint that is the USPS, their website still gets over one hundred million hits a year......

Poor decisions, no change in decision makers.....

My hometown of Cincinnati is in a 20-40 million dollar deficit, there was a financial crisis people get hopped up and make some bad decisions, and BANG there goes 40 mil.....no big deal

But, some decisions are just too poor to blame on a crisis. A perfect example of poor decision making can be seen in a near 4,000 square foot 20 bus stop station built beneath second street in 2003 (above). It cost 23 million dollars and it is housing for a few bums who can get past the chain lock......those of you who live here have probably seen the entrance which looks like it leads to a subway and is across from the stadiums.

Now when others make 23 million dollar mistakes at work, they get fired . Where is the new management? When things go wrong, that's ok, mistakes happen but fault needs to placed and new people need to step into the Cincinnati political machine. This was a 2003 mistake, same leadership today (rich peoples sons) that cannot get anything in Cincy rolling.

Hopefully Nick Lachey is panning a run for mayor.......40 million dollar deficits, 2 different stadiums for 2 losing teams (they can both play in one), failure to develop any riverfront property and seeing how cool Newport is, and lastly this bus station have to be reason for a change from the 9 person council system.

From a Friend, Ponder this....

I received this from a good friend, Thomas Schaefer the other day, he received it from a friend of his.........I could not fin the origination of the document, but its a good idea.

"The Proposal"

When a company falls on difficult times, one of the things that seems to happen is they reduce their staff and workers. The remaining workers must find ways to continue to do a good job or risk that their job would be eliminated as well.

Wall street, and the media normally congratulate the CEO for making this type of "tough decision", and his board of directors gives him a big bonus .

Our government should not be immune from similar risks. Therefore:

• Reduce the House of Representatives from the current 435 members to 218 members.
• Reduce Senate members from 100 to 50 (one per State).
• Then, reduce their staff by 25%.Accomplish this over the next 8 years(two steps/two elections) and of course this would require some redistricting.

Some Yearly Monetary Gains Include:$44,108,400 for elimination of base pay for congress. (267 members X $165,200 pay/member/ yr.)$97,175,000 for elimination of their staff. (estimate $1.3 Million in staff per each member of the House, and $3 Million in staff per each=2 0member of the Senate every year)$240,294 for the reduction in remaining staff by 25%.

$7,500,000,000 reduction in pork barrel ear-marks each year. (those members whose jobs are gone. Current estimates for total government pork earmarks are at $15 Billion/yr ).

The remaining Representatives would need to work smarter and improve efficiency. It might even be in their best interests to work together for the good of our country! We may also expect that smaller committees might lead to a more efficient resolution of issues as well. It might even be easier to keep track of what your Representative is doing.Congress has more tools available to do their jobs than it had back in 1911 when the current number of Representatives was established. (telephone, computers, cell phones to name a few)Note: Congress did not hesitate to head home when it was a holiday, when the nation needed a real fix to the economic problems. Also, we had 3 senators that were not doing their jobs for the 18+ months (on the campaign trail) and still they all have accepted full pay. These facts alone support a reduction in senators.

Summary of opportunity:

• $ 44,108,400 reduction of congress members.
• $282,100, 000 for elimination of the reduced house member staff.
• $150,000,000 for elimination of reduced senate member staff.
• $59,675,000 for 25% reduction of staff for remaining house members.
• $37,500,000 for 25% reduction of staff for remaining senate members.
• $7,500,000,000 reduction in pork added to bills by the reduction of congress members.

= around $8,073,383,400 per year, estimated total savings. (that's 8-BILLION just to start!)

Unemployment Rate, not the real issue.....

Freakonomics Blog poster Justin Wolfers poses and interesting and somewhat scary number that is more worrisome than unemployment. Aggregate working hours. The U.S. unemployment rate hit 9.5 percent today and will probably go much higher in the next year.

However, the real issue is total working hours in the United States (or the world), which have diminished severely. So, lets say one person is fired and is now unemployed, how many others work weeks were cut back to 30 or even 20 hours? The people working less hours are not as easily included into the unemployment lot.

The purple line (private total hours worked) dips the lowest whereas the black line is more a reflection of unemployment although it measures payrolls. Check out freakonomics.com for this graph and more in-depth information.

Getting a Beer in Bergen, Norway

Norway is an expensive country to say the least. The government grip is felt in a simple grocery reciept. I want to try to explain this process as compared to the United States......so I may ramble a bit.

Anyways, in the States, more specifically in Cincinnati OH, beer can be purchased at a variety of places; convenience stores, grocery stores, pharmacies, and even Chipotle. Not only that, but it can be purchased until 2 a.m. six days a week and until midnight on Sundays.

In Bergen, Norway beer can be purchased at.......... grocery stores. Liqor is sold at a seperate government owned entity, and I have yet to see one of these establishments. Beer can be purchased until 8 p.m. on weekdays and until 6 p.m. on Saturday............At what time does the average person start drinking? Well for me it's usually past the time you can buy beer in Bergen.
So, i've been in Bergen for about 2 weeks and I officialy have found their cheapest beer for sale. Its called Seidel and in runs 9.90 Kroner (about $1.65) for one. How do I know the price of one bottle of beer at the grocery? Well in Bergen, you can buy 1 beer at a time tearing one poor little beer away from its five other family members. Who would do such a thing? Since one beer in not enough for me, I purchased 8 for 87.20 Kroner and I later realized, 87.20 Kroner= $14.53 = 14.53/8 = $1.81 per beer.......how did 1.65 per ber turn into 1.81.....the bottling fee/tax is 25%!

So drinking here involves preparation, first get you beer early. Second, buy a bunch of individuals because there are no 18, 24, or 30 cases. And third, the beer I drink (the cheapest here I can guarentee you) doesn't come in any kind of carrying case, so get a bag to put them in. If you're in Cincy, think of me the next time your carrying a conveniently filled 30 case of your favorite cheap pilsner........I envy you. It's not all bad, every bottle returned in Bergen= $0.17.

Norway: A Different Economic Model

(StatoilHydro's deep sea extraction simulator)

The Norweigian economy centers on one main export, oil. Their coastal shelf is full of it and the state owned oil company StatoilHydro collects more revenue than Exxon, yet due to taxes (a 78% rate) StatoilHydro has a slightly lower net profit. StatoilHydro also has some of the best technology in terms of deep sea drilling.

The state has set aside a sort of annunity fund (now over 200 billion dollars) that will keep their society wealthy into the next generation. They have not played the same cards as Dubai, which now has the worlds largest hotel, with the worlds most vacancies.

The sole negative anyone can see from the Norweigian model, is the infamous Dutch disease; The theory is that an increase in revenues from natural resources will deindustrialise a nation’s economy by raising the exchange rate, which makes the manufacturing sector less competitive and public services entangled with business interests (wikipedia). Basically; too much focus on one aspect of the economy can inflate prices and leave a country, in this case Norway without any non-oil related skills when the oil runs out.

Only time will tell what happens with Norway, but with 200 billion in the bank and only 5 million citizens, thinks as looking up. Being an American and studying here has made me realize, we could never copy this model (we are far too large) however there is something to learn.....Running a trade defecit is not a good thing, and the U.S.A. needs to start opening its mind to letting new businesses (started by natives or foriengers) open and expand more easily rather than give old dogs like GM and Chrysler a bone.

Norway: A Different Economic Model, Intro

Three days ago I arrived in Bergen, second largest city and most important port in Norway. The country is more socialist than the United States and it has been the media's golden child as the best economic model in the world amid the financial crisis.

Arriving here, I can say, the country is no doubt beautiful and clean. The society is the most educated in the world but the taxes are high and the goods expensive. Norway has a couple advantages the U.S.A. does not. First, it brings in huge amounts of Oil Revenue of its coast which it saves in a large Government operated fund. Second, only 5 million people occupy Norway.

Norway dreads the day the Oil runs out, and that is exactly one of the topics I'll be studying here during the next two weeks.

As my studies continue, I will try to analyze the successes and failures of the socialist model this country uses, and go into more detail about the system from a first hand point of view.

Starving the Beast

As state deficits increase, it is interesting to see the changes occurring at the state level in terms of officials having to become more open to business. I spoke with a professor last week who said, "its interesting what happens when you starve the beast" (of capitalism).

What am I referring to, Ohio and its Governor are now supporting the construction of a new Duke Energy power plant, the first in over 20 years. Why? It will bring lasting jobs and I'm sure it will put some money into Ohio's pocket.

A better example exists across the country in San Fransisco where San Quentin prison (pictured above) and state officials are trying to sell off public (beach front) property in order to decrease California's huge deficit.

Due to inefficiency, it is very difficult for the government to generate any revenue through any of its programs, but when the super commodity ($) is needed private investors will always heed the call and through developing whatever they can turn a profit on, feed the beast of capitalism while also paying taxes for their efforts to the state and federal government.

Inexpensive beverage options

Every weekend I go out and have one of three beers at a given (dive) bar, Miller High Life, PBR, or Natural Light. Every once in a while ill grab a Hudy Delight for $1.50 at a local joint. All of these beers are a tier of their own, shunned by many drinkers with a developed palate that even include younger folk who have found the enlightened path of foriegn (expensive) beer.

However, these "well beers" are great for the round system. When buying rounds for 3 or 4 people, a four or five dollar tab including a one dollar tip can not only make the buyer happy (for it doesn't break his wallet) but everyone else happy as well, because deep down no matter what the label says, everyone loves a free beer. And the benefit I receive from buying a cheap beer for a friend far outweighs the benefit of purchasing an expensive beer for myself.

Last weekend, I came across an interesting dilemma, at a local bar where $1 beers are served an alternative existed, $5 for all the beer you could stand. The choice seems obvious and I have made it many times and ended up getting my dough's worth, but I did not plan on staying long so I figured two beers at $1 and a tip would be enough...........my mistake.

Some of my friends went for the $5 all you could drink, and from their choices I should have as well. However this proved not to be my biggest mistake. Talking to my friend who works the door at this bar, he was angry this $5 deal was going on, as it was a way to avoid tipping all together! If you drink the $5 all you can drink, you dint have to tip since the bartenders aren't serving the beer and have been muscled out of the process! I know this seems clear as day, but it didn't even cross my mind, and it hit me like play action hits a 7 man defensive front.

So now I know, its not about the $5 up front fee, but the tipping that adds up when buying individual rounds. Maybe its like my friend said, "I would rather tip my friends than drink all I can stand out of a keg." I just don't know if I feel the same way every weekend and next time ill go for the $5 deal.

Where's the Punchline to this Joke?

Hamilton County Sheriff Simon Leis wants to purchase a $98,000 boat to protect Cincinnati/Ohio River from terrorist attacks.......

I don't even know what to say, Hamilton County already has 4 smaller patrol boats and has purchased 3.3 million worth of vehicles since 2002. The county has two helicopters, and multiple police cars that officers take home. He has cut officers in Over the Rhine as it is too costly, and done a multitude of other things a quick search can find.

The enquirer is running a poll, do you think he should get the boat, over 82 percent say NO. If that is not democracy, what is? Ohio River being attacked by terrorist sheriff? I don't have to be out of grade school to realize that is ridiculous. And if it happens, what is a 28 foot fishing boat going to do?

It's amazing to watch government officials use their institutions as companies and abuse taxpayer dollars. A perfect example of poor leadership, I think Sheriff Leis should not get the boat and should be asked to resign.

Kudos to Greg Hartmann for standing against this outrage.

Questions about on campus living.....

The school newspaper, The News Record released the following information in it May 27th issue;
“University housing has received 3,015 housing applications from the incoming class,” said Todd Duncan, director of Housing and Food Services. “I would speculate that the data for Autumn 2009 will be in the neighborhood of 3,350.”As of May 22, University Housing and Food Services report the total of undergraduate applications for housing is currently at 3,839. The figure is up 28.9 percent from last year, while the normal occupancy is 3,815.In 2004, 78.7 percent of freshmen were living on campus. In 2007, the number jumped to 82.9 percent, according to UC’s institutional research reports.University housing can hold a maximum of 3,979 residents. Currently, it is estimated that it is 97 percent full.

Interesting.....in a recession college enrollment usually jumps up as we have seen in the past two years however on campus living intuitively should not. More students choose college in a recession but choose one that is close to home so they can drive to and fro and save money.

Could this increase in on campus living suggest parents are now placing more burden on their children in the form of, living off student loans? Are parents now worried about their own future that they do not want to support their offspring longer than they have to?

Especially with gas having decreased in price per gallon, it would be interesting to see the change in percentage of student with loans over the last 3 years as compared to this year......I have not found any data yet, but I am looking.

Obesity and probably the real cause.....

Interesting post found on Economix blog of NY Times;

This graph may show why Americans are getting more obese......Look at how cheap Butter and Soda are compared to Vegetables.

(Click on the graph to read it much easier).

From my Column, Money Talk

The Good, the Bad, and the Ugly......

The past few weeks have created new hope in the American economic system. The stock market has rallied and the Dow Jones Industrial Average (30 largest publicly traded companies) is now in the black (up from close Friday Dec. 26th to close May 8th). The stress test results were better than expected and the jobless rate now at 8.9 percent is showing signs of leveling off. The signs of a turnaround are showing 18 months after a crash that will either be remembered or repeated.

Although this news sounds good, history will tell you that the worst years of the Great Depression were 1932 and 1933, well after the 1929 stock market crash. The Federal Reserve has learned a lot since then and taken some steps in the right direction, and Federal Reserve Chairman Ben Bernanke knows we have not made the turn quite yet. "Even after recovery gets underway, the rate of growth of real economic activity is likely to remain below its longer run potential for a while," he said is a speech on May 6th.

The market also needs to be considered, even though the Dow Jones Industrial Average is up in some ways it is still down over the last decade. You would also hope that pumping hundreds of billions of dollars into the system would result in a stock uptick, much like an oxygen tank for the lungs of a tired runner.

The other problem and this concerns us college students (more than Greek bashing and asbestos alike) is unemployment is expected to remain high for some time, and with less small businesses being created it could be a year or two before unemployment falls. Most forecasts predict unemployment will peak around ten to eleven percent. So be prepared to expand you search for “good enough jobs.”

If this sounds like bad news, you could argue there is potentially worse news. With the current economic climate, political power has become the new big bank CEO in terms of playing the game and making the rules, let’s not trade one evil for another. Treasury Secretary Timothy Geithner told the media in April, “When, in the future -- or I'll just say, if, in the future, banks need exceptional assistance in order to get through this…And where that requires a change of management of the board, we'll do that.”

The United States Government is not a majority shareholder of any banks, (yet). Even mentioning they will replace management is something that should not be tolerated for long. If Bank of America wants new management, they are allowed to vote on it at every shareholder meeting, and just last week they removed Ken Lewis from his position as Chairman (but kept him as CEO). If the Treasury or any other government department were to override the intelligence and rules of investors, this would be a great catastrophe. With General Motors, politicians became larger than life by firing Rick Wagner, then CEO of General Motors. However, General Motors is going out of business, while the banks are not.

Famous economist Milton Friedman once said, “The greatest threat to freedom is centralized power.” Friedman also mentions the government can do many great things and improve the lives of many with standard and uniform rules but the problem that occurs is in his words, “the substituting of uniform mediocrity for the variety essential for that experimentation which can bring tomorrows laggards above today’s mean.” Let’s hope leaders are not chosen as cabinet members or handpicked via the spoils system, or else we will see how those, “below the mean” could ruin what could be a great turnaround in the economy in 2010.

Superman........

Cincinnati Enquirer; "Miami grad snares plum job".

"A finance major at Miami, Budig was introduced to Wall Street during a New York trip organized by the college in early 2008. He interned at Goldman Sachs last summer and was offered a job. He said work weeks of 80 to 100 hours were common and said the intensity level is "elevated.""

I do not mean to hate, but lets see 90 hours divided by 7 days = 12.86 hours of work everyday, including Saturday and Sunday. So adding a measly half hour lunch this puts him at his desk and working from 7:00am to 8:30 pm everyday including Saturday and Sunday, and this is not one of his 100 hour weeks!

I am sorry but your rate of productivity drops so much after 50 hours of work in one week, that the next 40 hours getting you to a total of 90 would produce literally next to nothing in terms of positive productivity for your company and in essence lose them money...........(See graph above).

Cinco de Mayo

Cinco de Mayo (fifth of May) celebrates the Mexican army's victory over the French army in Puebla on you guessed it, May 5th, 1862. France invaded Mexico in order to get debts owed to them and other European countries from Benito Juarez. Coincidentally, France did this at a time the U.S. was in its own war (Civil War 1861-1865), and helpless to aid Mexico.

The French Army had not been defeated in 50 years (due to lack of fighting anyone worth while). Even though the Mexican Army won the battle, they lost the war and Mexico City was captured by the French and put under puppet Maximilian's control.

Eventually, the U.S. got involved, after the U.S. Civil War they intervened based on Frances breach of the Monroe Doctrine and asked France to withdraw. By asking, I mean the United States sent troops to the border and established a Naval Blockade in the Atlantic to stop French reinforcements from coming in. They also supplied Benito Juarez the resistance and former Mexican Republic's leader with weapons.

Within a month, France was withdrawing from Mexico and Maximilian was later executed.

So drink, have fun and enjoy your Cinco de Mayo.....but when someone asks you what happened on that date please don't say, "I think its Mexico's independence day."

A Trillion is..........A Lot

A Trillion dollars is 1 million millions.

In perspective I found this on the web; It would take 1,000,000 days or about 2,740 years to spend a trillion notes. Our national budget is 3.5 trillion dollars, and just like a college loan, the "American Government," (taxpayers) will have to pay up sooner or later. But even if we don't have to pay back the trillions of principal we own to foreign countries, we will have to pay the interest in the short term.

According to the New York Times; The Congressional Budget Office expects interest payments to more than quadruple in the next decade as Washington borrows and spends, to $806 billion by 2019 from $172 billion next year.

So....the United States population is around 304 million. dividing the interest we owe on our debt (evenly, it will not turn out this way) by an educated guess of 200 million U.S. families (there are probably far less than that) we see that each families burden will be $4,030 dollars........For solely the interest in 2019.

Our generation will unfortunately be the generation that puts the most in (taxes, hours of work, etc) and gets the least out (no social security, medicare, etc)........

Enjoy differences in others...

Everyday I wake up and do my normal routine. I check out CNBC Squawk and ESPN, drink coffee, eat breakfast and try to read the Newspaper.

Today was interesting, I write for the UC student Newspaper and I heard a lot of talk going around about an article centered around Greek Life and it downfalls. The writer has written some good articles and I decided to read it.

http://www.newsrecord.org/sections/opinion/sigma-alpha-epsilon-creed-words-to-live-by-1.1738535

After reading it, I noticed his article had 150+ comments online from readers. This has to be close to our papers record. What bothered me was how negative and angry the responses were. The article was not horrible, it threw some blows to the Greek system, but the writer has thrown blows at political policies and parties as well with far less outcry.

In the last year, so many crazy things have happened. I can remember when General Electric was hovering around 6 dollars a share. Had they dropped below 6 per share, some horrible things could have happened to the U.S. economy. However, where was the outcry and 150+ comments from students?

Right now, the economy is a wreck and if people could have the same passion to fix problems as they do to complain about less important issues, I would be excited about the future.....

We need to be problem solvers, no complainers.........its amazing how an army will fight for a ridiculous cause before assessing the situation and then spend loads of there time condemning and hating someone else. That time costs money, and your time could be spent in other ways, and many Greek systems help charitable organizations and contribute a ton to their local campuses. Focus on the good and do not try to condemn someone who has problems with your way of life. Enjoy the fact that someone is different, as I do when people have no idea what the DOW is, or do not realize what implications economics can have on our everyday life.

Taxes + Death=Certainty^2

Today I opened my paycheck and realized one of the few things I hate. This, "thing" attacks me every two weeks as I open my pay check and see funds taken for, you guessed it, taxes.

My biggest irk, the city of Cincinnati took more taxes than the state of OH (but that's ok since UC is paying my checks).

It would be nice to have an interactive chart on each of my checks to show me exactly where my tax dollars are going (most to social security).

Anyways, I do not know anyone who enjoys taxes, and I will not complain about them for 2 more weeks.

Simple S and D

I uncovered a nice Supply and Demand problem in the following New York Times article today:

"Shortage of Doctors an Obstacle..."

The article explains the lack of supply of shortage of Doctors currently in the United States and the growing number of baby boomers who are getting older and in need of health services.

Doctors are not becoming physicians or practicing Medicare services due to the lack of pay. Also, since medical school is so expensive, most doctors specialize. There is a demand for physicians, but a lack of incentive to be a physician due to low pay.

One answer, proposed by several people is too increase Medical School enrollment. Personally, I do not want a check up from a B or C average-student, but hey, grade inflation has occurred everywhere else in college, why not Med-School?

I love this part of the article, "Under a far-reaching 2006 law, the state (Massachusetts) succeeded in reducing the number of uninsured. But many who gained coverage have been struggling to find primary care doctors, and the average waiting time for routine office visits has increased."

So a state has attempted a more, "universal health model." The result, more waiting, and more demand for doctors who are not there. No problem, we have an example not too follow in creating a new health system........I bet politicians don't see it this way.

So putting 2 and 2 together, we should give health care to everyone, then we will all have to drive many miles, wait many hours, or both in order to be helped, minimally. To fix it, lets increase the number of doctors or subsidize Med-School costs so we can have third tier students examining us on a regular basis....There has to be a better way.

Looking at the state of Massachusetts example, I think the problem of high demand and low supply of doctors should be solved in a different manner. Possibly substituting some capital for labor.........Can a machine or system such as Cook County Hospitals for diagnosing heart problems help this supply and demand problem?

From Blink by Malcolm Gladwell "One of the stories I tell in "Blink" is about the Emergency Room doctors at Cook County Hospital in Chicago. That's the big public hospital in Chicago, and a few years ago they changed the way they diagnosed heart attacks. They instructed their doctors to gather less information on their patients: they encouraged them to zero in on just a few critical pieces of information about patients suffering from chest pain--like blood pressure and the ECG--while ignoring everything else, like the patient's age and weight and medical history. And what happened? Cook County is now one of the best places in the United States at diagnosing chest pain.

Krugman Speech Today

I just finished attending the Paul Krugman (far left) speech today in TUC's Great Hall at the University of Cincinnati. He recently won the Nobel Prize in economics, and his talk today centered around the current economic crisis (an obvious choice).

He made some interesting points, but you could tell he had to watch his words as he did not want to get too political as he does in his New York Times Column. He did a wonderful job staying focused on economics and had a pessimistic but honest outlook as he said of the future, "it will be a long, and difficult haul." His main worry was unemployment could remain high for the next decade.

Attending the lecture was 200+ composed of Economic faculty across the coutnry, Trustees of the University of Cincinnati, and some other local big-whigs.

One of Krugmans best points was our neglect in remembering history and the problems that occur when we as Americans become complacent. The question is, how many students really understand or are attempting to understand what is happening now? If we are not students of the current problem, what will the future hold in store and how bad could it be if we are to get out of this mess?

What is the answer? Is big business (too big to fail) the main problem? Or did politics go too far in selling thier votes to companies? Krugman even mentioned the "off with the heads," attitude has been very mellow. Perhaps it is due to the fact many politicians were in the pockets of these CEO's so everything has been kept quiet.

Will government spending move us forward or should small business be the way out? Instead of 20 huge conglomerate financial banks, how would it be if bank owners had to conduct due dilligence in handing out loans becasue if they failed to do so they would receive no gov't help (like small banks for instance)?

All I can say is someone (probably my generation) will have to pay for this mess. And someone (my gen. again) will have to "starve" or not receive lovely health/monetary benefits until the age of 100. Hopefully the most educated generation in American history (again, my genereation) can make some decisions and force the older gens to understand its not their game and its not their rules anymore when it comes to our tax dollars going to their benefits and foul-ups. But then again, we will also have to realize, the dream of retirement is over and the American dream of a huge house is finally reverting back to the American dream of a steady job and a loving family. It will get better, but it will not be short and sweet.

Can everyone ever have it all? Let's Hope Not.

Every American should own a home.

Every American should have healthcare.

These are a few things Democrats and Republicans have tried to push over the last 10 years. When have we as Americans been entitled to anything? How about, Every American should go to work, work hard, save for their family and not expect any help. The attitude that placed us atop the world commercially.

Maybe out motto should be changed to a quote I read today, "It was on my fifth birthday that Papa put his hand on my shoulder and said, 'Remember, my son, if you ever need a helping hand, you'll find one at the end of your arm." - Sam Levenson

No offense, but the only time everyone can have equal of anything, resorts in Communism, where everyone is equally poor. Promises are annoying, how about politicians just give us the facts and hurt some feelings. We cannot allow Healthcare to become as big a problem as this crises, in which politicians and financiers alike never revealed the complications or truths of the business. Trying to give everyone a home helped lead to subprime. Trying to give everyone healthcare...........could lead to something worse.

Problems with the Banks and their Balance Sheets

Two days ago, the Dow dropped over 280 points after Bank of America had posted earnings of 0.46 cents a share crushing expected estimates of 0.04 cents per share.

The question is, after this news, why did the market fall? My accounting professor made an interesting point that seems obvious and is occurring now and will be for the next few quarters.

"The banks balance sheets and income statements look good because they have devalued an asset (risky mortgages) from say $100 to $50. Then the banks have found someone to purchase that lousy asset at say $55. Their financial statements show a $5 dollar accounting profit, but in reality and hopefully in the footnotes a -$45 economic profit is shown."

So even though the numbers "look good," based on that $5 accounting profit, investors saw the truth and the lack of economic profit.

I can't get enough Politics.....

The Fifth Summit of the Americas took place last week. The Summit is a meeting of 34 leaders from the Americas (yes South and Central America are America too). I began to wonder, since 33 of these 34 leaders speak Spanish (guess who does not), why the United States has not had a bilingual president since .....Martin Van Buren????

Searching the net I could not really find a biligual president after the early Van Buren (he was fluent in Dutch) but Jimmy Carter and George Bush spoke, "marginal spanish." You can argue other presidents had minimal spanish skills as well (but seriously, you could argue any American knows minimal spanish, so that does not count.)

When will the day come when the U.S. president will have to be multi-lingual? Would it help our country get more foriegn respect?

Dont get me wrong, all the other leaders of the world do not speak english, but many do. I understand the The United States is the leader of the commercial world, but that said, our leaders have had to expensive and elite of an education to not at least suffice some sort of foreign language skill (possibly a minor or undergraduate degree).

Any thoughts.......

That Guy is Loaded!

Too often, many of assume a big house or a big anything means someone is rich. Maybe its as Chris Rock once said, "There is a difference between Rich, and Wealthy, Shaq is rich, the guy who writes his checks is Wealthy!"

I agree, Shaq is probably rich, but even so, always be safe in assuming, until you see the numbers (accurate ones) no one has what they claim. I do not want to come off as a misanthrope, but here are a couple examples......

Bernie Madoff, worth 823 million dollars at the end of last year....he wasnt rich, but many people that gave him money to invest were. Currently, he faces 150 years in prison.

Evander Holyfield, who once had a 3 page write up on his mansion in Sports Illustrated almost had to auction it to cover child support. He was quoted saying, "I'm not broke, I'm just not liquid." Im sorry Evander, but I don't know the difference between broke and ill-liquidity.....His electric bill accoring to Yahoo was $17,000 last December alone!

My personal favorite...Travis Henry (picture above with his dependants), in 2007 he signed a five year 22.5 million dollar football contract. He was cut a year later and 9 children with 9 different women forced him into a drug trafficing arrest. Estimeated child support payments were $170,000 a year!

I hate to play the monday morning quarterback, but even if you make a million dollars a year, you cannot spend one million + 1 in that same year. A good thing to say if you do spend a dollar to much is, "Im just not liquid."

The American Dream, Get into Politics

Yahoo finance published the Presidents tax return;

"President Obama reported an adjusted gross income of $2,656,902. They paid roughly $855,000 in federal income taxes and almost $78,000 in state income taxes.
Now hold up—since when do (honest) politicians make millions of dollars? Well, normally they don't. "

-Actually, normally they (honest politicians) do, name a president this century that wasnt rich and ill show you different.

According to Fox News, the couple actually pulled in $4.2 million in 2007.

Vice President Bidden and his wife took in around $270,000 this year. Not too shabby, but somehow I suspect they are worth significantly more........

Another fine example of how at the end of the day we are all the same color, Green, but some are more Green than others!

Baffling......Why does everyone lie?

Today on CNBC, Tom Nolan CEO of General Growth Properties a mall owner and leaser to retail stores said his business model was still strong, even though his company is declaring bankruptcy and the company was not given approval to refinance thier debts any longer.

Interesting.........

His company, he mentioned had a solid NOI (Net Operating Income) and his shopping centers had 92.5 percent occupancy. Thats nice, but General Growth is 27 billion dollars in debt! How can your business model be strong if you 27 billion dollars in debt!

I am sure retail and credit pinches only excerbated the problem, but eventuallly 27 billion of debt is going to catch up to you sooner or later, especially if you business model over the last 15 years was an, "agressive mortgage finance acquisition strategy."

Older Generation View on the Economy: My Column, Money Talk

Waiting for “The Crash of 2008: Causes and Cures,” a class presented by Robert Marischen, I noticed everyone on the fourth floor of Tangeman University Center was significantly older than I am. Entering the room for the course, I was excited to hear what Marischen had to say; after all, he has an MBA, CPA, CFP and a CDP (whatever that is). He was also chief financial officer for several companies during his career.But looking around I thought I might have entered a Social Security clinic, judging by the people around me. I must have looked out of place to the kind woman who handed me a packet with OLLI written across the front.

The Osher Lifelong Learning Institute is a program here at the University of Cincinnati that specializes in educating individuals over the age of 50. The program covers a variety of topics. The most popular topics seem to focus on wealth management and health, but right-side brain activities like creative writing, film and language classes are available as well.Needless to say, it was a dead giveaway: I am not part of OLLI, as you have to be more than half a century old to participate.

The class took a while to get rolling as the instructor had a limited number of handouts, and, for reasons the youth of America may not understand, e-mail never came up.Finally, a decision was made, calling for the 16 people who wanted the information packet at the end of the class, to get it and share with others. After this dilemma was over Marischen introduced game theory. Marischen mentioned that decisions were made or, “games were played,” in order for someone in the political or financial world to gain more power or money.This seems quite obvious, but looking at this game in depth changes the scope. Should politicians (especially) and even financiers be incentivized by their own monetary gain over what seems like the ethical goals of providing jobs and opportunity for growth in the economy?

Marischen suggested the war in Iraq was the main focus for the start of the crisis, suggesting the conflicts began in 2003 (after the dot com bubble burst) and that the war was a political tool to get the economy rolling for the last of the Republican White House years.It was an interesting point; many current theories suggest this crisis began prior to 2003, siting bank deregulation in 1999 as allowing the creation of mega banks such as Citi and AIG.

Of course, discussion ensued and opinions were expressed heatedly as many were unhappy with the opinions of the instructor, but he did a solid job standing his ground and insisting game theory was the way to look at this crisis. Many were obviously angry, but the educational understanding of the crisis was not high, as it was an introductory course and most of us still are trying to sort out how this all happened.

Marischen made a great point in terms of how the CEOs of certain companies exacerbated this mess.“Those that committed fraud should be in jail, but you should not go to jail for stupidity,” Marischen said.What he means is that many CEOs were stupid because they did not know what was going on or they didn’t necessarily try to fully understand what was happening in their companies. Maybe these CEOs should not go to jail, but their money should be taken and given back to tax payers (the government).

Upon leaving what many might have thought was a World Bingo Tournament, I came out realizing older generations have faced horrible economic conditions before, and they have interesting things to say.They respected a person far younger being in the mix and OLLI is creating a great avenue for elders to meet.A mix of OLLI and students could create an even better network and possibly help get us out of this economic problem because the older generations have invaluable advice and experience we, as young students, sometimes forget.

Lessons from a Short Story

In The Sea Oak by George Saunders, a family of two uneducated unemployed single mothers, a optismistic Aunt, and a quiet but hard working young man (brother to the single mothers) struggle to raise kids in a horrible neighborhood. The Aunt's although she has never had anything in her life remains positive until she dies.

The Aunt is scared to death (literally) from a burglar and is buried only to revive with powers allowing her to see the future. Falling apart by the limbs her attitude has changed from complete optimism in her former life to a planned no more b.s. style that involves the young man and the single mothers working harder so one of the young boys in the household does not die.

Two quotes seem to portray a great message in this short story, one comes from this families step father giving a diatribe to the derelict family, "Anybody can do anything, but first they gotta try. Its the freaking American way-you start out in a dangerous craphole and work hard so you can someday move up to a somewhat less dangerous craphole."

The second comes from the Aunt (Bernie) at the end of the story, dieing for the second time with her body parts all over the place she asks the young man, "Some people get everything and I got nothing, Why did this happen?" He replies, "I don't know."

So the question is, if you have everything or if you have nothing, should you sit iddly by or attempt to achieve something for future generations? The Aunt did this and was completely opptimistic in her first life, but when she died and saw the future, her whole outlook had changed. Had her optimism been selfish?

Also, why can't Americans seem to appreciate the crapholes they live in and realize that taking care of people is what its about, not one-upping all the time? The recession is changing this for the better and making some realize that talent is not equal across the board, but neither is effort. Anyone after selfish gain will die unhappy, and that is why the Aunt came back, to die peacefully knowing she saved a life in the future.

Things to do.....

Cincinnati has multiple interesting things to do on any given day. Yesterday for example, the kite festival took place in Mason and the Observatory had a viewing of Saturn through a telescope that was at least 15 feet long. For five dollars (a donation) I was able to see the moon (closely), the orion nebula, and Saturn, you cant do that at your average bar.

After yesterday I came to the realization that Cincinnati is a great place to live and there are many cool things to do. Do not be afraid to try something new. the best part is, you can do these things cheaply. So if you took you girlfriend to an expensive dinner last night and then had nothing else to do (To each their own), look harder and find something and find a cheap place to eat as well.

Why do so many people neglect the numbers...

Yesterday, sitting in class a debate started about cell phones placing the iPhone against the Blackberry in a battle of the best hand held device available. Anyways, back to the point, sometimes a lie or rather an unintended exaggeration is easy to spot in another person. A perfect example, in class a smart young but obvious M.B.A. student, you know the ones who wear everything business down to the trousers. Anyways, the guy is a nice guy just a bit over the top.

In class he mentioned, "The Blackberries email is much faster, I write 300 emails a day........"

Then I lost him, 300 emails a day, is that possible? Lets do some simple math, if you write 2 emails per minute (120 every hour) than he would spend 2 hours and 30 min of nothing but 30 seconds emails!

Lets say he does 5 a minute (20 seconds a piece) that is still 1 whole hour of nothing but emails, and 20 seconds a piece...........

So instead of trying to be mister impressive sometimes it is better to just do the math and admit it, you don't email 300 times a day, because it would drive you nuts and take up the whole day. But then again, he also probably works 70 hours a week (also, not feasible.)