And that’s the way it was…

America has lost a national treasure tonight. He retired when I was only four and the only time I ever had the opportunity to watch Walter Cronkite broadcast live was during the launch of the shuttle Discovery carrying John Glenn back to space in 1998. Even in his late 80s, it was obvious that this man was simply a force of nature, commanding attention even from those journalists working with him that afternoon. He defined the television news very nearly since its inception and what is means to be a class act and to deliver the news even-handedly and without bias. If you’ve never seen clips of him on the anchor desk, do yourself a big favor and watch the video of him broadcasting JFK’s assassination or the moon launch or from the bombed out streets of Viet Nam. Once upon a time, that’s the way it was and sadly will never be again.

In a world where the news cycle is brought to a grinding halt by the death of an aging pop star, I can only hope that we will pause to remember the man that literally defined what television news is all about.

Right here, right now…

It’s not being heavily covered here in the States yet, but there’s something unusual going on in Iran this week… In the closing days of it’s presidential election, their crazy-assed dictator is actually running neck and neck with the opposition candidate. And that’s something that would have been unthinkable just a few weeks ago.

Half of the voters in Iran are under thirty and they, along with many academics and the rising middle class, have taken to the streets in protest against what they see as the corrupt and fanatical tyranny of their leader. I’m trying hard to put the grainy film of similar demonstrations 30 years ago out of my mind and remember that the world has changed alot since 1979.

I’m no optimist, but maybe, just maybe these young reformers will have enough juice to pull their country back from the brink. While this isn’t exactly the spirit of ’76, we could be seeing the birth pangs of a real democracy movement in one of the most dangerous parts of the world… Or, if it’s not nurtured, we could watch the movement die before it draws it’s first full breath.

I believe democracy in one form or another is the destiny of all people. It’s marked the long upward struggle through tyrants and kings of the civilized world. It was wrenched by petty dictators, holocausts, and long centuries of bloody wars, both civil and otherwise… And it’s not an inevitable destiny.

Hopefully, I turn my eyes to those brave men and women of Iran who are even now risking all simply by telling their government “this far and no further.” The tide of history is with you as are the greatest hopes of those in our great country who would call you friends.

Panic…

For those in my age range and younger, we’ve been living with the 24-hour news cycle all of our adult live. Those born after the launch of CNN know nothing else. That’s why I’m amazed at the buzz surrounding this “new and dangerous” strain of the flu virus. The regular old standard issue flu kills thousands of people directly and indirectly in the US every year. So far, this version has killed the astronomical figure of exactly 1 person here in the States.

I’m not saying that taking precautions like washing your hands and covering your nose when you sneeze is a bad idea… but it’s also common sense stuff that we should all be doing anyway. So before the Homeland Security threat level gets increased to Mayhem and Panic, take some time and think about all that ways that we’re all more likely to be killed than by the swine flu. Yeah, that should make us all feel better.

It’s not “Remember the Maine,” but on short notice it’s the best I could do…

I’m over the quaintness of there being 21st century pirates. It was high drama for a week, but going into week two with stories of their attacking more American vessels has ceased to be entertaining at any level. The US government needs to call these “pirates” what they are: terrorists. With that understanding clear, the president must then deploy an American fleet to blockade the ports of Somalia and provide sufficient air and surface assets to escort American and allied shipping through the area. We’re not unfamiliar with such operations and successfully escorted tankers through hostile waters in the Persian Gulf during the Iran-Iraq war.

Since the dawn of the age of sail, the responsibility to maintain and protect the sanctity of free-travel on the high seas has fallen to the great powers. In the 18th and 19th centuries, the British Navy held the wolves at bay with wooden walls and hearts of oak. In the 20th century, the US Navy projected its power across the seas and far inland. In the 21st century, we must send the message with clarity of purpose that America and its allies will not quietly abide disruption of the free flow of free men. Simply stated, we must close with and destroy the enemy. Failure to carry out this program, sends a tragic signal that the free nations of the world have grown so soft and so willing to compromise the essential elements of freedom that they would rather pay millions and tribute to petty gangsters than engage in the difficult work of preserving and extending the liberty that so many have already sacrificed to establish.

Hanging fire…

I’ve been holding off on saying anything in the hopes that the overwhelming force of the US Navy would resolve the pirate issue. Alas, it appears four guys in a rowboat and a couple of AK-47s is enough to hold off the Navy, the FBI, the Department of State, and everyone except the French special forces. I’ll bet the Russians feel silly for spending all that money keeping up with us in nuclear weapons for all those years. Can someone tell me why this has been allowed to go on… And on… And on. Just for re record, if I’m ever being held hostage in a rowboat, let the SEALS do their thing. I’ll take my chances, thanks.

Could he give up an arm instead…

I was perusing the New York Times mobile site this morning and ran across a story that actually made me feel sorry for a professional politician. It seems that because of some combination of national security concerns and the desire to avoid having email subpoenaed in the future, when he assumes office President-Elect Obama will have to give up his Blackberry. I guess I had never really thought of the president having time to send out missives from a potus@us.gov email address, but I think as president, my first executive order would be stay the hell away from my cellie.

The civilized world has embraced email as part and parcel of daily life. Surely a country that has tens of thousands of men and women who spend their working lives coming up with sophisticated cryptographic devices and ciphers can come up with a way to let the leader of the free world read his gmail and send a few text messages. Seriously, I get jumpy when I haven’t checked my email in an hour or two. Four years in an email free zone is just way too far beyond the pale. I say buck the system, Mr. President-Elect; make a Charlton Heston-esq stand for your inalienable right to wireless communication!

The Long Game…

As you’ve noticed by now the pace of posting has slowed a bit lately. To be honest, I’ve been absolutely engrossed in watching the ongoing economic meltdown. I’ve sort of moved beyond the point of being stunned to the point of being fascinated in seeing how the market unravels from a more academic point of view. I want to try to understand the fundamentals at work – particularly those that failed. Obviously, the overextended home lending market has a significant share of the blame here, but I can’t make the jump to that being the only or even the root cause. I have to think there is something more basic at work here. So far, I’ve seen a lot of “the sky is falling” from the media, but they’ve been a little short on the serious economic analysis. Hopefully as we gain some perspective on the events of the last two weeks, someone with a far more developed sense of economics than mine will connect the dots.

While I’m thinking on the overall economy, I can’t escape the precipitous fall of stock prices over the last seven days. I’m the first to cringe when I look at the daily carnage inside my retirement account, but then I realize that I have 25 more years before I can even consider retiring and it starts to dawn on me that having the market down 50% means my IRA contribution is buying almost twice as many shares as I could a year ago for the same amount of money. Given that the historic trend of the market since its inception has been to move upwards and the ridiculously long horizon involved, the long game is looking pretty positive. Yeah, I know that thinking like that probably makes me a bad person, but I’m OK with that.

Feel the power…

ABC News ran a feature tonight about the “greedy” power companies who were turning off the utilities of people who were not paying their bills. Of course they trotted out the usual suspects… The family of 6, the old woman raising her grandchild, etc. All they said of the companies was that they were stopping service because delinquencies drive up the price for paying customers. Yes, Mr and Mrs Dontpaymybills and all the ships at sea, that’s how it works in this country. We trade goods and services for money or the promise of money at some predetermined point in the future. That’s what allows us to not all raise corn and cows to feed ourselves.

I know I rant on this a lot, but I just have a hard time getting past the idea that our countrymen are surprised that they’re expected to pay for the goods and services they consume. I was raised believing that this country was about the right to pursue happiness… Not necessarily the right to have it. In economics, there’s a principle that everyone learns in their 101 class that says “there’s no such thing as a free lunch.” The consequences of basing an economic system on the premise that everyone should have a free lunch if they want one died off with the Soviet Union. Cuba stays afloat because of the tourist dollars generated from capitalist Europe. China’s Communist party stays in power because they have adopted measured amounts of capitalism and that trend is increasing over time.

But, you say the top 1% of earners are running away with the pie. It’s true that their part of the pie has grown, but the entire pie has gotten larger too. There are more millionaires per capita today than at any time in the history of the Republic. That doesn’t mean that these individuals have jobs making $700,000 a year, just that they were smart with what they did with their money. Get out of school making $35k a year, max out your contribution to your IRA and 401k, live under your means, and in 35 years when you’re eligible to retire, guess what… You’re a millionaire too. Work another 5 or 6 years past eligibility, guess what… That’s right, another million. Compound interest and long-term market growth are beautiful things, friends.

So next time you’re watching the nightly news and tempted to sign onto the bandwagon that all our problems are caused by the big, bad corporations, take a look around at the decisions individuals have made that contribute to where they find themselves. The Invisible hand doesn’t just guide the market up, it guides it down too. Get in tune with that and you’ll really feel the power.

The “R” Word…

I’ve been watching this on the news for the last several weeks and think we need to clarify the fact that there is a definition to what a recession is and is not. By definition, a recession is 2 consecutive quarters of negative growth in gross domestic product (GDP). This week’s report shows growth for the first quarter at .6%. That’s GROWTH (i.e. GDP increased). If you’re a talking head and go on television talking about the current recession when the last two quarters show economic growth, you look like an idiot. Suck it up and face that fact that the American economy is simply robust enough to endure the “shock” of high oil prices, the collapse of the housing bubble, and increasing prices on commodity and manufactured goods while continuing to grow. Stop looking like an idiot. That is all.

Things I’m tired of seeing in the news…

1) The price of gas. Yes, it’s $3.20 a gallon. It is what it is. Instead of bitching about it when someone shoves a camera in your face, maybe you should consider trading in the armored personnel carrier you use to take Bobby and Katie to soccer practice and get something more efficient. Otherwise, suck it up and pay the bill, sweetheart.

2) The “outrageous” cost of healthcare. You’re paying for a service. If you don’t like the going price, find a cheaper service or try just going without and see how that works out for you. Some things are worth a premium. Living is one of them.

3) The stock market “collapse.” I don’t know what economics or finance classes you took in college, but I distinctly remember learning that the price of stocks moves in both directions. If you were so heavily invested in one thing (i.e. stocks versus bonds versus gold), you need to learn about diversifying your portfolio. The market is doing what it does. I didn’t hear anyone bitching when it was soaring past all reasonable expectation.