The U.S. Emperor Has No Clothes!
(By: Rene Velez Nov. 10th, 2008)
Congratulations! We The People have cast our vote and one candidate has won a vast majority of the votes. Barack Obama is our president elect! A historic moment by all accounts. What can I say? I am speechless. Moments like these are best savored and engrained into memory as a lifetime experience. I have on this blog expressed my concerns about Mr. Obama, but I wish him well and as a citizen will stand behind him. Or at least for as long as it works. Such is politics.
I am particularly proud of this great nation. I know that this race was not supposed to be about race. But, I am not one to stay quite when the emperor has no clothes. Hey, what do ya know….he’s an African American! My fellow countrymen have wisely seen beyond race. American democracy is suddenly just a bit more genuine and legitimate. Somehow, a vote for Obama has made us a just and better example of democracy, freedom and liberty. God bless us all!
A New Face on Race
Just as Obama has won a national election, I am both fearful and excited about what it all means. After all, this is an experiment of sorts. I fear that politics may deal a heavy blow to race or, it may help us be more harmonious or homogenious. If Obama does well in politics and he is able to bring about positive change and reform, he will be not only a role model for all African Americans, but it will help all minorities. If he becomes a failed president, like our outgoing president Bush, I fear that we may loose much ground and that tensions between races could befall us. It’s important to recognize this less we all fall victim of pundits and cynicism. Obama has the potential to draw many of the new generation into politics, social and public service and, grass roots movements. Obama may spur community involvement and activism the likes of which few presidents if any have been able to accomplish.
One profound thought comes to mind. No matter the outcome, no African American should ever feel they are a second class citizen. No African American should ever hold their head down because of their race. No African American should ever state, opportunity is less available to them because of their race than to any other member of our great nation. This election does not prove that racism is dead. Not at all. What I think it does show is that, it’s not as important as many of us have thought it to be. Race is not a barrier to success. It is not a glass ceiling. This should be truly inspiring to all of us who believe that this country is great, because we are all different.
Change In a Transitional Society
Obama’s win has many implications that are still as of yet unknown. And every indication is that only history will provide us insight. He did not win because he is African American. He won on Merits. Or did he? Is it possible to say he won simply because of the overwhelming dissatisfaction with President Bush? In part the answer has to be yes. Obama represents hope. He is young charismatic and vibrant and speaks to change. Specifically, is that change for the better? No one knows for sure just yet. But listen to the news and the profound implications of so many bailouts and failures. Listen to the grinding halt of a global economy and read the fine print and in between the lines of our global markets. The U.S. is a country in transition. If Obama can carry this country with his charisma, intellect, discipline and the very same grass roots, community organizing skills, we may well be onto something. We may well have a winning President for years to come. My intuitive guess is that Obama has the potential to understand and to use the psychological forces of leadership to guide this nation. But of course, as with all presidents, will he have the right cabinet and support.
The Opposition of Partisanship
Aside from the staggering issues we all face, Obama has before him the tempest of partisanship. Reading the NY Times today, already we have republican conservatives aiming to simply make Obama’s presidency a miserable one. It would appear that Newt Gingrich is the only one who has voiced concern over taking this position. Hurrah Mr. Gingrich. The country does not need division right now. We need leadership. The republican party would be better served to head the notice, voters have given and, find a way to move towards the middle and extend a hand to a President Elect that is well supported. I should also note that any potential backlash from partisanship bickering will go a long way towards drowning out the republican party from main street politics, and further away from the White House. After such a significant loss, the republican party must acquiesce to the will of the American people and simply plan for a fight another day. Mr. Gingrich, please tell our fellow republicans they have no clothes! It ain’t pretty either.
As Strong as the Roots
Anyone who enjoys plants will tell you that a plant is only as healthy as its roots. A tree is only as strong when the wind is howling as the roots are. Obama won this presidency by applying grass roots efforts and using skills of a community organizer. I would urge our new president to stick to his knitting as he develops his legacy. Be a president of the people, voted by the people, to serve your people. It would be a strategic mishap if Obama were to take on the Washington power structure head on. There really is no need to do so. I think Obama knows this. During his victory speech I was moved by his indication that he would need public support. Obama is a leader of concensus before judgment. If the elections is any indication, we should look at how he goes about winning his constituents to predict how he will faces the many challenges before him. In many ways he might well wind up being a Bill Clinton. President Clinton often tested the water and researched the polls before adopting any position. It assured him high marks as a sitting president. Although Obama’s presidency is much different in terms of the issues he faces, Obama I assume will do much of the same, with one difference. He will build and derive his power from the people through old fashion grass roots.
Wednesday, November 12, 2008
Thursday, November 06, 2008
Winning The Presidency via Economic Anxiety
Winning the Presidency via Economic Anxiety
(By: Rene Velez 10/15/08)
These days no matter where you turn your head the talk of the town is how bad the economy is. Driving along the city of Miami you can almost feel the fearful pause of a normally bustling city. Where the culture is often over the top on glamour, fashion and in showing your achievements through acquisition, now everyone is simply watchful of the dark clouds above us. Even in the sunny subtropical days that are common in south Florida, the mood is that of a raining day.
Judging by the news of sour profits, tight credit markets, government bailouts and that all too ugly word recession, the mood is somber at best all through out the country. If it were not for the repeated interruptions of news flashes of the presidential elections, I think some people might just be ready to jump out windows. This gloomy mood makes me ponder on the effects of our current economic situation on the elections. Not that this is new but I have some of my own thoughts on the matter.
The Art of Expression in Saying Nothing
All in all I like Obama, but I am not convinced he is capable to meet all the challenges before us. He has attracted many citizens to his side by virtue of having a gifted tongue. He is eloquent, rhythmic and able to captivate the masses. He is so god at his oratory work, I am surprised that he has not been called the coming antichrist. Not because I think he is or should be viewed that way, but his presence is somewhat unnerving. Yet for all his skill he’s not offered anything any 4 year economics student at a decent college couldn’t conjure up. Like all presidents he lacks substance in what he says. His track record as a community organizer hardly is a training ground for world politics and for being the leader of the free world. His track record on taking positions on senate votes is lackluster, mainly because he took no definitive positions on crucial votes. Although it’s not uncommon for presidential candidates not to take hard positions while campaigning, as a measured way of staying out of controversy, nothing he has said compels me to vote for him over John McCain.
Popular Support in an Economic Downturn
Lets face it, in the words of Bill Clinton; “it’s the economy stupid”. There is but one key law of physics during an election year when the economy is sour. “ The greater the economic downturn, the greater the propensity of voters to want to switch parties, candidates and to repel the forces of the current administration”. Bad news for McCain and good news for Obama. But why is it that the media doesn’t really say that. My guess is that by saying that people want “change” only because the economy is bad , is like saying that Obama really isn’t qualified. My gut feeling tells me that this race would be a lot more heated and the polls would show a much tighter race if the economy provided a more even playing field.
President by Default
Obama might very well win this election, yet he will live with the fact that the peoples choice was not because he was the better candidate but, rather because people wanted change more than they wanted him. Although this may sound like an undignified way to win the presidency, few candidates would shun the chance to win. However, in those early months as he takes the reins of power and is thrust onto the enormous problems this country faces, his choices better be as good as his oratory skills. I fear that anything short may cost him dearly in the way of political clout. I am not forgetting that we will also likely have a democrat controlled congress. In fact I will go out on a limb and say it may not matter that the democrats control congress. Judging by past performances, the democrats have a way of dividing instead of conquering political agenda. The economy, war, energy, unemployment, inflation, trade deficits, budget deficits and the like will be more than any president has had to handle in a long time. AT least since F.D.R.
Voting with Anxiety
In my mind voters are likely to vote their anxiety. In fact Wall Street may well be experiencing the ebbs and flows of an investing public voting or I should say trading their fears and uneasiness on the future with Obama. The disparity in trading values from day to day for the past few weeks is a tell tale sign of a very uneasy country. Of course many economist will argue this point with me. I should add any economist could well argue the point well against me. But I will offer you this to ponder. A large part of business is about management. And management owes a great deal to psychology. Then logically, the state of mind of a country in economic fear is to vote your anxiety.
McCain’s Timing in History
McCain’s timing is not only off given his ties to the republican party, but he has not shown the diversity and energy that would be required to roll with the punches that have been dealt him. I truly believe as a senior senator of great experience he could have derailed Obama. At minimum he could have turned on a more formidable defense by bringing to light a more comprehensive solution to today’s problems. He did not, and perhaps, he could not. It would be overwhelmingly difficult to up the stakes preceding an election and to take positions that may be contrary to your own parties decisions. Especially, at a time when the country is in such turmoil. This is the equivalent of giving a stick for your opponent to hit you. Although his timing in history is way off, the truth be told nothing convinces me more of our need for change all around. We need change in leadership, and change ideally should come from outside the current established political leadership. This is a plus for Obama.
From the Outside In
Most of my professional life, as a business manager, I have had to contend with bringing about change in business. In order to bring about efficiency and effectiveness change is often required. I have learned through many years people fear change. Change is a difficult thing. Reinventing oneself is not easy. We are after all creatures of habit. It is experience that’s helps make change agents better at what they do. It is the ability to see beyond the current situation and make those finely executed adjustments, through careful decisions that make change agents great. Therein lies my indecision with Obama. But there too begins his promise. His new vision together with the fact that he is a very intelligent and skillful politician, does not preclude effectiveness as a president. To this regard Obama is empirically a leap of faith. That is to say his track history does not precede him. Considering peoples anxiety and overwhelming discontent with congress and the current president, the general population seems to be okay with that. The notion of change coming from the outside is not only palatable, it is welcomed and sought. Obama will win simply because he has a limited amount of exposure to the establishment.
The New Political Landscape
I propose to all that we have a new political landscape. Fear, terrorism, anxiety and poor political governess will promote change and new leadership from outside the established norms of American Government. This is a periless and an exciting time in American politics. The American people will speak out in historic numbers to promote change. If we as a nation can stay charged, then we stand to bring innovation to the way we govern our nation. There is risk however. What happens if the opportunity for change and innovation goes sour? What if this transition point in American politics is trampled because of a few bad decisions and some unanticipated mishaps? What then? Will we have hope? Will the public still support change and innovation? I trust the American Public will. Innovation is a part of the American way of life whether we realize it or not. However, the most palpable driver behind the new political landscape is that the stakes are so high.
In Obama we will trust, and fear not!
(By: Rene Velez 10/15/08)
These days no matter where you turn your head the talk of the town is how bad the economy is. Driving along the city of Miami you can almost feel the fearful pause of a normally bustling city. Where the culture is often over the top on glamour, fashion and in showing your achievements through acquisition, now everyone is simply watchful of the dark clouds above us. Even in the sunny subtropical days that are common in south Florida, the mood is that of a raining day.
Judging by the news of sour profits, tight credit markets, government bailouts and that all too ugly word recession, the mood is somber at best all through out the country. If it were not for the repeated interruptions of news flashes of the presidential elections, I think some people might just be ready to jump out windows. This gloomy mood makes me ponder on the effects of our current economic situation on the elections. Not that this is new but I have some of my own thoughts on the matter.
The Art of Expression in Saying Nothing
All in all I like Obama, but I am not convinced he is capable to meet all the challenges before us. He has attracted many citizens to his side by virtue of having a gifted tongue. He is eloquent, rhythmic and able to captivate the masses. He is so god at his oratory work, I am surprised that he has not been called the coming antichrist. Not because I think he is or should be viewed that way, but his presence is somewhat unnerving. Yet for all his skill he’s not offered anything any 4 year economics student at a decent college couldn’t conjure up. Like all presidents he lacks substance in what he says. His track record as a community organizer hardly is a training ground for world politics and for being the leader of the free world. His track record on taking positions on senate votes is lackluster, mainly because he took no definitive positions on crucial votes. Although it’s not uncommon for presidential candidates not to take hard positions while campaigning, as a measured way of staying out of controversy, nothing he has said compels me to vote for him over John McCain.
Popular Support in an Economic Downturn
Lets face it, in the words of Bill Clinton; “it’s the economy stupid”. There is but one key law of physics during an election year when the economy is sour. “ The greater the economic downturn, the greater the propensity of voters to want to switch parties, candidates and to repel the forces of the current administration”. Bad news for McCain and good news for Obama. But why is it that the media doesn’t really say that. My guess is that by saying that people want “change” only because the economy is bad , is like saying that Obama really isn’t qualified. My gut feeling tells me that this race would be a lot more heated and the polls would show a much tighter race if the economy provided a more even playing field.
President by Default
Obama might very well win this election, yet he will live with the fact that the peoples choice was not because he was the better candidate but, rather because people wanted change more than they wanted him. Although this may sound like an undignified way to win the presidency, few candidates would shun the chance to win. However, in those early months as he takes the reins of power and is thrust onto the enormous problems this country faces, his choices better be as good as his oratory skills. I fear that anything short may cost him dearly in the way of political clout. I am not forgetting that we will also likely have a democrat controlled congress. In fact I will go out on a limb and say it may not matter that the democrats control congress. Judging by past performances, the democrats have a way of dividing instead of conquering political agenda. The economy, war, energy, unemployment, inflation, trade deficits, budget deficits and the like will be more than any president has had to handle in a long time. AT least since F.D.R.
Voting with Anxiety
In my mind voters are likely to vote their anxiety. In fact Wall Street may well be experiencing the ebbs and flows of an investing public voting or I should say trading their fears and uneasiness on the future with Obama. The disparity in trading values from day to day for the past few weeks is a tell tale sign of a very uneasy country. Of course many economist will argue this point with me. I should add any economist could well argue the point well against me. But I will offer you this to ponder. A large part of business is about management. And management owes a great deal to psychology. Then logically, the state of mind of a country in economic fear is to vote your anxiety.
McCain’s Timing in History
McCain’s timing is not only off given his ties to the republican party, but he has not shown the diversity and energy that would be required to roll with the punches that have been dealt him. I truly believe as a senior senator of great experience he could have derailed Obama. At minimum he could have turned on a more formidable defense by bringing to light a more comprehensive solution to today’s problems. He did not, and perhaps, he could not. It would be overwhelmingly difficult to up the stakes preceding an election and to take positions that may be contrary to your own parties decisions. Especially, at a time when the country is in such turmoil. This is the equivalent of giving a stick for your opponent to hit you. Although his timing in history is way off, the truth be told nothing convinces me more of our need for change all around. We need change in leadership, and change ideally should come from outside the current established political leadership. This is a plus for Obama.
From the Outside In
Most of my professional life, as a business manager, I have had to contend with bringing about change in business. In order to bring about efficiency and effectiveness change is often required. I have learned through many years people fear change. Change is a difficult thing. Reinventing oneself is not easy. We are after all creatures of habit. It is experience that’s helps make change agents better at what they do. It is the ability to see beyond the current situation and make those finely executed adjustments, through careful decisions that make change agents great. Therein lies my indecision with Obama. But there too begins his promise. His new vision together with the fact that he is a very intelligent and skillful politician, does not preclude effectiveness as a president. To this regard Obama is empirically a leap of faith. That is to say his track history does not precede him. Considering peoples anxiety and overwhelming discontent with congress and the current president, the general population seems to be okay with that. The notion of change coming from the outside is not only palatable, it is welcomed and sought. Obama will win simply because he has a limited amount of exposure to the establishment.
The New Political Landscape
I propose to all that we have a new political landscape. Fear, terrorism, anxiety and poor political governess will promote change and new leadership from outside the established norms of American Government. This is a periless and an exciting time in American politics. The American people will speak out in historic numbers to promote change. If we as a nation can stay charged, then we stand to bring innovation to the way we govern our nation. There is risk however. What happens if the opportunity for change and innovation goes sour? What if this transition point in American politics is trampled because of a few bad decisions and some unanticipated mishaps? What then? Will we have hope? Will the public still support change and innovation? I trust the American Public will. Innovation is a part of the American way of life whether we realize it or not. However, the most palpable driver behind the new political landscape is that the stakes are so high.
In Obama we will trust, and fear not!
Wednesday, October 01, 2008
Critical Mass of a Bailout
The Critical Mass of a Bailout
(by: Rene Velez September 26th, 2008)
(by: Rene Velez September 26th, 2008)
Here is a term that as of late has a double meaning. “Critical Mass”. In business the term is used often to describe the volume of business required to get attention, show up on the radar, or to have a significant impact upon others. Looking at the current scenario of the financial crisis you come to realize that AIG, Fannie Mae, Freddie Mac and the banking industry as a whole have a significant critical mass. The White House’s desire to bail out the economy legitimizes the importance of corporate Critical Mass. Yet you might say that the Critical Mass of corporate largess now has another Critical Mass to contend with. That is the Populous Critical Mass. This is defined as those citizens, and the public at large who’s opinions and views determine the outcome of how the Corporate Critical Mass should affect them and how government, in this instance should react.
For many years now I have been envisioning a social, political and economic revolt from the middle and lower class. Is the current economic fiasco a turning point? I don’t really know. Nonetheless the related nature of why the popular view that bailing out corporate America is filled with disgust, lends credence and support for the general discontent of the American people with big business and with our government.
The Next Shoe to Drop
Maybe we are just at a turning point. Maybe people are just now starting to react. Maybe this is just the tip of an iceberg that will lead to the type of calamity that precedes the great change America needs. If this is the beginning, what else will disrupt our national and global economy in the near future? My guess is the writing is already on the wall. The airlines and their future position due to expiring fuel contracts looks bleak. I suspect a continued rise in the cost of fuel and a downsized economy could just be the straw that breaks this important logistical network. The other industry which plays a vital role in our economy is the Auto industry. Here too, the news is not good either. With sagging car sales and a lack of innovative product to counteract the consumer demand for fuel efficiency and as well as functionality and style, has already proven to undermine the major auto manufactures in the US. Will these be the next corporate bail out candidates? Perhaps.
The Differences
As for the automotive industry, perhaps a bailout is not likely, at least not from the government sector. Despite saying this I know $25 billion has been promised already. However, This is mostly a stop gap measure in order to buy time and create new platforms for the NT American auto. Most likely the bailout will be from the private investment market. Why? I suspect because although a critical part of US logistics, (and the economy) there is a ready and available foreign market that will fill any potential void, with barely an immediate impact on the demand and supply side of economics. The airline industry might be another issue. Although the same might be said of the airline industry I believe that national security might play a role in saving the airline industry, but only if there are no takers for a bailout, from the private investment sector.
Socialized Capitalism
All of this bailout talk and the government’s need to apease the general public’s demand to either be paid back or to share in the upside of a turn around situation has bolstered talk of a Socialized form of American democracy. I might add that these views are well justified. But is that really bad? Maybe we could actually do this right and pay off our national debt? Maybe this is not so bad considering how bad things really are? The real issue is that socialism is a dirty word in American democracy. It should be! For me the real fear is that government can’t do anything right without it costing the taxpayers a fortune. So any possible upside is likely to be absorbed through bureaucracy. Here in Florida, after Hurricane Andrew, insurers suffered significant losses. So much so they stopped insuring homes. The demand and need was so great that the state had to step in and become the insurer of last resort. This worked out for a while although the state was not into it for profit. Other than stabilizing the market and allowing for a period of recuperation, the state and taxpayers did not benefit. As the years past private insurers came back into the market.
The Popular Critical Mass
Is it possible that the revolt I have been thinking about will be no revolt at all, but rather a fundamental change in how we manage this country and all the mission critical goals we have before us? The popular vote sees the need for change and that the old ways of doing business and government can not continue. In fact the old way of government is coming under attack heavily these days. Free markets do work, but with diminishing rewards to the lower and middle class. These are the constituents the government is supposed to protect. But, they (the government) do so poorly simply because this has been a fickle crowd to please when it comes to re-election. The real money and backing for a political candidate’s re-election comes from big business, lobbyist and political action committees. Lou Dobbs from CNN says it best, “the best government money can but”.
The Need for Leadership
Despite all of our current concerns of economy, foreign policy, healthcare, social security, education etc. etc., this is still a great nation and a great country. So much so every politician will take his or her turn selling you this point, all while they mismanage your government and make you appreciate it.
I don’t question American ingenuity! I don’t question American hard working families! I don’t question American resolve!!! Above all I don’t question America’s commitment to generosity when the time comes for a nation such as ours to help others in greater need. I have though, for many years, come to question greatly the leadership in America.
In corporate America, greed and short term planning geared for quick profits are bringing down our sustainability. Worse, these philosophies have created corruption in corporations across our country and are undermining the working public and this country. Corporate and ethical responsibility are in my opinion at their lowest. You are more likely to have a corporate citizen do something of social value these days if it has a great deal of impact and marketing value than simply because it’s the right thing to do.
In government, the political process of re-election and or guaranteeing yourself a soft landing by means of a corporate job after your years of service, means politician’s play up to big money and influence rather than their constituents. No one wants to take a hard line position simply, because it’s good for the people. The simple truth is that our politicians are not the leaders we want them to be nor are they the leaders they should be. You can’t afford to make any waves in politics. Sadly, even when politicians do well the general public ignores them rather than standing behind them and supporting them. In these cases we as a people get what we deserve.
How do we arrive at better leaders? Training, education both at the elementary level and in higher education. We need to instill pride in public service. We need a better way to grade our political and corporate leadership. Elections alone do not work. We need perhaps, an independent board of academicians that can (a) create national strategic objectives and (b) grade how well corporate America and government perform their respective roles, and issue reports to the people of this country. Depending on the overall score and determining factors; leaders are in the worst case replaced or simply given vectors for performance. What I see are boards for varying strategic industries and for sectors of government. Will this be perfect, no. But it will give us a chance to focus, direct, and be intelligently critical towards achieving overall objectives.
I should mention that these boards have to be totally independent, with no possibility for self enrichment in the future, no ties to those being judged. As an accountant I would liken it to the type of independence accountants must have when auditing except much more pure. The idea is to form a sterile and objective basis for analysis.
The Big Bailout Problem
The bailout as presented does nothing to protect the taxpayers. It transfers the risk and exposure to the taxpayers for years to come. It gives much, too much, power to the secretary of the treasury. (An appointee) It provides for no regulation that would provide protection for a recurrence of the fundamental problem in this crisis. It fundamentally insulates and protects the wealthy and irresponsible companies that have created this mess. It is a reaction geared towards addressing , if not playing to fear and initiated by panic.
Without question I don’t like this bailout, though I think it may have some positive benefits. But this may be minimal if any. This equates to high risk.
The more I toil with this scenario the more I say, NO BAILOUT!. Let the market fail and correct itself. Not on my hard earned taxpayer dime!
I may well hurt. My 401K, IRA’s and mutual funds will take a huge hit. My home value may continue a precipitous decline. Yet I rather take that risk than strap my children with additional debt. Give me a leadership I can count on and I might risk otherwise. But seeing what I see now in corporate America and in government……..no thanks!
The Critical Mass
Now more than ever the critical mass has shown its muscle and power to influence political leaders (I use the term “leader” loosely). It is the critical mass that has shown up and that will dictate how government responds and who will win another term in office. Strength in numbers.
Citizens Show Up
Yes alternatives exist. Some examples are (a) increase the FDIC insured limit to $250,000 or more. (b) take a direct capital (ownership) position in failing banks that guarantee an upside to taxpayers, (c ) provide for taxpayer relief and restructuring of overvalued homes with high mortgages and adjustable rate mortgages, (d) provide regulation of the banking industry to prevent future instances of overleveraged banks, (e) pass new laws to go back to the traditional borrowing requirements that evaluate the ability to repay debt, (f) require first time home owners to undergo credit training. (g) creating private equity vulture funds to buy out bad debts from banks at discount prices.
I for one would like to try instituting policy that is geared towards regaining the public’s trust in the banking and equity markets. The economy should follow and perhaps then citizens will show up for the political bipartisan group that has what it takes to assemble and get things done!
Friday, September 26, 2008
Bailing Out Corporate America
Bailing Out Corporate America
(by: Rene Velez Sept 24th, 2008)
I have been wanting to contribute my own thoughts on the recent events of bailing out corporate America. But first I have to get some things off my chest. This is truly embarrassing but not a surprise. The level of greed in this country has reached a new level. Not to be undone is the level of in-competency our government has shown and the absolute inability of regulatory agencies to function for the public good.
(by: Rene Velez Sept 24th, 2008)
I have been wanting to contribute my own thoughts on the recent events of bailing out corporate America. But first I have to get some things off my chest. This is truly embarrassing but not a surprise. The level of greed in this country has reached a new level. Not to be undone is the level of in-competency our government has shown and the absolute inability of regulatory agencies to function for the public good.
Recent events show clearly how management is willing to push the numbers of corporate America to prop up earnings under a business model that is little more than a house of cards. While at the same time meeting the objectives, however unfounded, and in this case insane, that lead to lucrative executive compensation packages and golden parachutes. Clearly, not only should these executives not receive what amounts to excess compensatory packages, but I would investigate and prosecute the executives and the board, who demonstrated reckless abandon for what is now economic terrorism.
Sarbanes Oxley, has done nothing as there is no mechanism to measure and to judge the magnitude of a failed business model in light of poor management. In the case of AIG the $85 billion bailout figure will surely cost more. To think this is an insurance company, an actuarial business, who can calculate that you could extend your life expectancy another 5 years by eating a brand muffin every morning. Yet despite sophisticated mathematical models that predict probability they fell drastically short, in fact claim they were totally unaware of, predicting their eventual demise and collapse.
To think that no one dared to think that the real estate market could tank from oversupply, despite warning signs that were everywhere. To think that no one dared to question a home that increase in value 55% in two years might suddenly fall in value. To think the government truly did not know that income levels for the average American were far behind the appreciated prices of housing, To think that no one thought that the shear volume of collateralized securities could suddenly tank due to a market correction in the real estate and the credit markets. That no one in the mortgage community ever stopped to think what would happen to all those “No Document” loans that were issued with no income verification and virtually no credit worthiness.
The reality is that the securitization of mortgages transfers the risk of performance of those loans, in this case, directly to the stock market. In effect the mortgage business became a game of musical chairs, where many were left without a chair. Whatever happened to the traditional banking and mortgage model where money was earned the old fashion way? What happened to the five “C” of credit? Credit Worthiness, Collateral, Character of Borrower, Credit Risk, Cash Flow to Repay? It seems that lending model is too difficult! Why bother when you can make a mint on volume transactions and a ready market to transfer risk. The old theory of the free market has gone astray, and we should hold regulators accountable for not seeing it. Our federal government is to blame as well. The shear size of this newly created market, together with unprecedented real estate values was a clear indicator for all. A free and self correcting market was thought to allocate capital from the capital markets based on ascertainable facts based on the five “C’s” of credit. Capital is best placed where the likelihood for success and repayment were deemed to be the best. This did not work in this fiasco. Simply put, capital simply followed those who could place it the fastest and they in turn made money from packaging and issuing securitized instruments as fast as they could. The fundamental basis for proper allocation of capital was totally ignored. This neo mortgage securitization model of the mellenium was ripe for a wall street collapse. A collapse that is being compared to the calamity of the great depression.
Although a government bailout is difficult to swallow, I must admit that at some level it must be done. I have heard many say, to hell with wall street let them suffer and pay the price. The truth is that this is not about wall street loosing a lot of golden eggs, but more so the shear magnitude of the problem indicates that the golden goose is in critical condition. In this case it is the same golden goose that provides the golden eggs for all of us. So we must have government intervention to save us all. However, we must be very careful. Bernanke and Paulson both have deceived the public by not coming out sooner with the bad news. It is difficult to discern if this was negligence, incompetence or complacency. Either way they should have been sounding the alarms many months if not a year or so ago. So, we should not be so ready to react simply because now they are sounding the alarm. Some have made this quick and irrational response to a crisis similar to how we made the mistake of invading Iraq. This crisis is with us now and will be despite any government intervention so I would venture on taking some time to think through how all this works out.
The Positive Correction
The truth be told, after a significant market correction, mortgage backed securities will flush through our economy. Let us not forget, despite overvalued properties and the cost of non performing loans, these securities are collateralized and some tangible value is still there. So the bottom may not be as grim as it could be. In fact if these non performing and securities are repackaged and properly analyzed, purchased at a significant discount and held by our government, taxpayers could stand to make a profit. All this while injecting liquidity into the financial system. The question is whether our government can in effect make that work efficiently. Having said that we should look for private equity funds as well as foreign markets to invest in this venture. We should leverage our global economy so we all benefit from this process and not absorb U.S. taxpayer funds.
Punishment
We must take corrective action to teach reckless management a lesson. Corporate America should not be let off the hook. I would be very disappointed, although not surprised, if those responsible were let off easy. Government officials and regulatory agencies deserve to be held to the same standard. No lucrative compensation packages. Seek damages from management and the board. Conviction if criminal intent was involved.
Regulation
We must learn from this, create a mechanism that prevents this from happening again. This mechanism must be designed so as not to be too costly or burdensome on our capital markets, Sarbanes Oxley, does not really work, did not work here and is too costly. We can not maintain a competitive capitalist economy and compete globally with these types of regulations. There are other ways to accomplish this. If only the accounting profession was more aggressive, innovative and dared to think out of the box. It’s time for the accounting profession to show what it can do rather than taking its cues from the corporate infrastructure and government beaurucrats.
Colleges and Universities need to institute more corporate governess and ethics courses. I know that to many this seems like trying to address a cancer by prescribing an aspirin. Yet what should be evident to all is that corporate America is lacking in the fundamental precepts of how to crate value and sustain shareholder worth through true and tried methods. We seem to have a whole culture of executives who’s greed and desire to obtain quick results together with the true stresses of managing large corporations have time again yielded severe consequences in the long term. The results of many of the major critical issues of today, have a fundamental tie to short term, shortsighted management and government.
We had an oil and energy crisis in 1974, we did not learn. We did not diversify energy sources. Our auto manufacturers did not compete effectively against the Japanese. We’ve known we have an immigration policy issue for many years, we have not fixed that. We have been talking about the environment and the effects of pollution for over 40 years, we have done nothing. Healthcare is not new either. Terrorism was in someone else’s back yard so we turned the other way.
Reinventing our Government
We need to create a system so that government works for the people. Currently it does not. Our political system is geared towards and for the benefit of those with the most economic power. Those who have the most lobbyists and are behind PAC’s are those that have a stronger voice then the ultimate voters. We simply can not wait any longer for the general public, to come up to speed on the issues in order to then create a force to move our political leaders. What we can do however to is to create a system of transparency in government by creating milestones to the issues that face our nation. Initially. The agenda is simple as we have at this moment in time quite a number of issues that need immediate attention. We need to create a timetable with specific and quantifiable performance measurement standards to move this country into the 21st century. Our system of government, our capital markets, our corporate governance and our position in a global economy are being managed based on industrial era concepts and models. This simply will not get us there. We need a JFK, man on the moon, style of timetable to kick this great nation into gear. Some of the critical areas:
(1) Energy independence by energy type and source diversification.
(2) Transportation sector innovation and technology.
(3) Global economic development and restructuring trade flows.
(4) Healthcare Reform. / National Healthcare System
(5) Social Security System Overhaul.
(6) Immigration Policy Enforcement and Repatriation.
(7) Federal Government Realignment based on Critical Path Initiatives
(8) Educational System Restructuring.
For those of you who have any doubts, China has become a formidable power because of some very simple factors:
(1) Focused National Initiatives (Timetable Effectiveness)
(2) Small, Unified and Nimble Power Structure. (Efficiency)
(3) Global Market Initiatives (Assimilation into large markets)
(4) Shear mass of population. (actual productivity / vritual)
I should note that although China has mostly unskilled labor, its workforce takes great national pride in the work they do. Reminds me of days past when Americans were more unified. We could learn from the Chinese.
The Bailout
Lets not create a bailout that leaves taxpayers holding debt. Lets create a profit sharing scenario that pays our federal government for the bailout. Forget free money. All bailout funds need to be repaid in some way shape or form.
We need to create a system to make sure what we buy, hold or acquire has determinable value and or risk. This should under no circumstances be a giveaway. The government should act like any white knight who does so with a profit motive and not just for the sake of keeping the company alive.
The Real Fiasco
The darkest side of all of this is that everyone involved is to blame. Consumers took out loans they knew they could not repay. Some homeowners became homeowners but did not have the resources or earning potential to acquire a home. A sad testament to the sheer demand for housing by the masses of the working poor. Yet businesses and institutions preyed on unknowledgeable consumers who were not educated enough of finance to make better decisions. A sad truth about the financial literacy of the people from the richest nation on earth. Our regulators failed to judge the magnitude of an unjustified new capital market through securitized mortgages. Insurers failed to recognize the magnitude of risk by taking large positions on real estate driven transactions. Our government, as usual, was asleep at the wheel and reactionary til the end. The only winners are those that timed their entry and exit at the right time, and with barely a contribution to the production of tangible wealth.
Thursday, August 07, 2008
Miami Florida, A Lack of Political Vision and Leadership In Transportation
Miami Florida, A Lack of Political Vision and Leadership in Transportation
By: Rene Velez Aug. 06th, 2008
Miami is the “Gateway to Central and South America!”. That has always made sense to me. It is a statement that is visionary an outward looking. Despite the fact that statement looks out from Miami we seem to have forgotten what Miami needs to be. Or at least where it should be from a public transportation point of view.
The signs to our dependence on transportation systems are all around us. Yet we have not created a vision of what transportation should be in Miami. Why is that? Just look at our seaport. The Miami Seaport hosts the largest concentration of cruise ships in the world. Just about all go to or make a brief stop in the Caribbean and continue to all points on the globe. The same seaport has experienced tremendous growth in cargo transport ships. With imports and exports that rival many of the busiest ports in the world. We are thriving and dependent on the sustained growth of this transportation system. Lets look at our airports. Miami International Airport alone is a major hub for the Caribbean and Central and South America. It too has seen tremendous growth within the last decade. Not only has a transit point or hub but it has a substantial air cargo business that also rivals with many air cargo and transportation airport anywhere in the world. I should also mention we have a sizeable aircraft maintenance and parts business that operates in South Florida. It is a point of destination for aircraft repairs and maintenance for many aircrafts. Here too we depend and thrive on air transport. A quick look to our neighbors in Ft. Lauderdale and they too have bustling seaports and airports with just as much growth. In fact they absorb a good amount of overflow that might have come into Miami.
Just as a side note, the aviation business in South Florida started many years ago when Pan Am started flying their clipper airships out of what is now the Coconut Grove Marina. Today we host a very high concentration of flight school students that come here to learn to fly and will go into commercial aviation all around the world. Further we should remember that Doral has come to be what it is due to international trade that utilizes both Miami International and the Port of Miami. All of this, in my opinion, was hard evidence the writing was on the wall we needed a transportation network long ago.
Having made clear these facts (which we have known for decades) and knowing we are the “gateway”, knowing we have a high concentration of trade, tourism, banking, transient visitors …..why is it that our political leaders simply fail to make the connection that mass public transportation is vital to our economy and sustainability? Why have we done such a poor job at establishing a reliable, timely and affordable transportation network that can be used effectively? This is not a leap of faith! This is a plain as day reality.
Not Enough Land
One excuse I have heard is that we do not have sufficient contiguous land to build an uninterrupted railway. In particular an east west which is badly needed. I suppose there is some truth to that. But I should say that if you go back to the 1960’s there probably wasn’t one then either. In all fairness I don’t think many people would of agreed that Miami would become what it is today. Be that as it may, there is no reason why a system can’t be built. Yes there will be traffic delays and there will be inconvenience and of course we will have to utilize eminent domain in order to get it done. But there is no reason it can’t get done. I know that studies have been done to have rail lines that travel east west from the turnpike to the west, along the turnpike extension and Dolphin Expressway through the airport, and either down 112 or 836 into downtown Miami. This is doable, feasible and would create a much needed link between west Dade, the Airport and downtown Miami and the Port of Miami. Wow! Someone did have the vision but it died. We need to bring this alive again.
With regards to contiguous space. I ask this. Do any of our political leaders ever look beyond their noses? We have major overhead power lines that take a large swath of “restricted use land” (as in only for power lines) that runs from about Card Sound Road to the south, just west of the Turnpike heading North/South and cuts East all the way past Ft. Lauderdale. Has anyone ever thought of using that land for a Westside North/South route for a rail line with a bus feeder system to the already existing Eastside North/South Metrorail? Here are some benefits that. You can incorporate mixed use office and retail spaces which are income generating, you have space for park and drive centers, which are income generating, you can partner with FPL because covered or underground cables will not be knocked out in hurricanes. Oh! And of course the real side benefit is that you have augmented the transportation system and just made life in Miami more affordable. I know I have missed some benefits here but I would be happy if we got what I mentioned. The only drawback is some communities may chant the old NIMBY (not in my backyard). My feeling is you can’t win them all.
The Money
Despite whatever issues there might be to developing a transportation network in Miami, the biggest problem is a lack of funds. The only reason Metrorail got built was because federal dollars were allocated towards getting that system built. So what are our politicians doing about that? Isn’t that their job to push for the needs of this growing metropolis and to explain to our federal government that this growing metropolis pays large amounts of federal income tax dollars? Do you think that Congress and all those Presidential and Senatorial wannabes don’t know that South Florida pays a big role in every major election? Despite whatever federal apathy may exist for our needs here in South Florida, our elected officials managed to get a half penny sales tax increase for transportation when many thought it would never pass. So if they managed that, why could they not muster enough courage, tenacity and vision to sell a comprehensive transportation system to the people of South Florida? The reality is that our political leadership does not have enough vision or the intestinal fortitude to lead into the future. Despite the fact that many good things are done by our leaders, they have failed miserably in this area. In fact in the most recent half penny increase, they botched the projection and sold the plan to the public without disclosing major losses that existed at the time. They failed to realize the half penny sales tax they asked for would not improve public transportation as promised but would go instead, to cover existing operating shortfalls. In my opinion that’s gross mismanagement. What recourse do we, as a community, have on this issue? If this were a public corporation, as shareholders we could take the management to court and seek damages. As citizens it seems we have less rights, even though we do in fact have an ownership stake.
Bad Timing
Today, Miami is over the barrel. There does not exist, a major metropolitan area the likes of Miami, anywhere in the United States that does not have a major public transportation system. Even those major cities that do have them today are strained by the increase in riders, due in large part to high oil and gas prices. Many major cities have already put in orders for more buses, rail cars and the like. Potentially, this deficiency could have a major impact on the future growth of this city. Nothing turns away major businesses that want to be at our “Gateway” than bad transportation issues, massive traffic, underperforming schools, overcrowding and high costs to living. We seem to have it all.
Conclusion
Normally, I ask that people get involved, vote and to write letters to our politicos. The urgency of this problem is beyond that. Nothing short of community leaders forming coalitions and committees to oversea planning and implementation will resolve this issue. Politics is a foregone idea. For those of you who doubt me on this, start going back in time a read the articles and look at the major budget changes, contractor changes, management changes, public oversight conclusions (I should say public overblindness) to building airport terminals at the Miami Airport. This will take some fist pounding, marches and national embarrassment and we also need to vote people out of office. We need to do public /private ventures to help defray the cost. (as in public funding, private management) Worst of all is, if we want this in our community, we might well have to find a way to pay for some of it ourselves. There goes another penny in sales tax! But I must say, I want to get credit for it somehow. I refuse to pay for public official incompetence.
By: Rene Velez Aug. 06th, 2008
Miami is the “Gateway to Central and South America!”. That has always made sense to me. It is a statement that is visionary an outward looking. Despite the fact that statement looks out from Miami we seem to have forgotten what Miami needs to be. Or at least where it should be from a public transportation point of view.
The signs to our dependence on transportation systems are all around us. Yet we have not created a vision of what transportation should be in Miami. Why is that? Just look at our seaport. The Miami Seaport hosts the largest concentration of cruise ships in the world. Just about all go to or make a brief stop in the Caribbean and continue to all points on the globe. The same seaport has experienced tremendous growth in cargo transport ships. With imports and exports that rival many of the busiest ports in the world. We are thriving and dependent on the sustained growth of this transportation system. Lets look at our airports. Miami International Airport alone is a major hub for the Caribbean and Central and South America. It too has seen tremendous growth within the last decade. Not only has a transit point or hub but it has a substantial air cargo business that also rivals with many air cargo and transportation airport anywhere in the world. I should also mention we have a sizeable aircraft maintenance and parts business that operates in South Florida. It is a point of destination for aircraft repairs and maintenance for many aircrafts. Here too we depend and thrive on air transport. A quick look to our neighbors in Ft. Lauderdale and they too have bustling seaports and airports with just as much growth. In fact they absorb a good amount of overflow that might have come into Miami.
Just as a side note, the aviation business in South Florida started many years ago when Pan Am started flying their clipper airships out of what is now the Coconut Grove Marina. Today we host a very high concentration of flight school students that come here to learn to fly and will go into commercial aviation all around the world. Further we should remember that Doral has come to be what it is due to international trade that utilizes both Miami International and the Port of Miami. All of this, in my opinion, was hard evidence the writing was on the wall we needed a transportation network long ago.
Having made clear these facts (which we have known for decades) and knowing we are the “gateway”, knowing we have a high concentration of trade, tourism, banking, transient visitors …..why is it that our political leaders simply fail to make the connection that mass public transportation is vital to our economy and sustainability? Why have we done such a poor job at establishing a reliable, timely and affordable transportation network that can be used effectively? This is not a leap of faith! This is a plain as day reality.
Not Enough Land
One excuse I have heard is that we do not have sufficient contiguous land to build an uninterrupted railway. In particular an east west which is badly needed. I suppose there is some truth to that. But I should say that if you go back to the 1960’s there probably wasn’t one then either. In all fairness I don’t think many people would of agreed that Miami would become what it is today. Be that as it may, there is no reason why a system can’t be built. Yes there will be traffic delays and there will be inconvenience and of course we will have to utilize eminent domain in order to get it done. But there is no reason it can’t get done. I know that studies have been done to have rail lines that travel east west from the turnpike to the west, along the turnpike extension and Dolphin Expressway through the airport, and either down 112 or 836 into downtown Miami. This is doable, feasible and would create a much needed link between west Dade, the Airport and downtown Miami and the Port of Miami. Wow! Someone did have the vision but it died. We need to bring this alive again.
With regards to contiguous space. I ask this. Do any of our political leaders ever look beyond their noses? We have major overhead power lines that take a large swath of “restricted use land” (as in only for power lines) that runs from about Card Sound Road to the south, just west of the Turnpike heading North/South and cuts East all the way past Ft. Lauderdale. Has anyone ever thought of using that land for a Westside North/South route for a rail line with a bus feeder system to the already existing Eastside North/South Metrorail? Here are some benefits that. You can incorporate mixed use office and retail spaces which are income generating, you have space for park and drive centers, which are income generating, you can partner with FPL because covered or underground cables will not be knocked out in hurricanes. Oh! And of course the real side benefit is that you have augmented the transportation system and just made life in Miami more affordable. I know I have missed some benefits here but I would be happy if we got what I mentioned. The only drawback is some communities may chant the old NIMBY (not in my backyard). My feeling is you can’t win them all.
The Money
Despite whatever issues there might be to developing a transportation network in Miami, the biggest problem is a lack of funds. The only reason Metrorail got built was because federal dollars were allocated towards getting that system built. So what are our politicians doing about that? Isn’t that their job to push for the needs of this growing metropolis and to explain to our federal government that this growing metropolis pays large amounts of federal income tax dollars? Do you think that Congress and all those Presidential and Senatorial wannabes don’t know that South Florida pays a big role in every major election? Despite whatever federal apathy may exist for our needs here in South Florida, our elected officials managed to get a half penny sales tax increase for transportation when many thought it would never pass. So if they managed that, why could they not muster enough courage, tenacity and vision to sell a comprehensive transportation system to the people of South Florida? The reality is that our political leadership does not have enough vision or the intestinal fortitude to lead into the future. Despite the fact that many good things are done by our leaders, they have failed miserably in this area. In fact in the most recent half penny increase, they botched the projection and sold the plan to the public without disclosing major losses that existed at the time. They failed to realize the half penny sales tax they asked for would not improve public transportation as promised but would go instead, to cover existing operating shortfalls. In my opinion that’s gross mismanagement. What recourse do we, as a community, have on this issue? If this were a public corporation, as shareholders we could take the management to court and seek damages. As citizens it seems we have less rights, even though we do in fact have an ownership stake.
Bad Timing
Today, Miami is over the barrel. There does not exist, a major metropolitan area the likes of Miami, anywhere in the United States that does not have a major public transportation system. Even those major cities that do have them today are strained by the increase in riders, due in large part to high oil and gas prices. Many major cities have already put in orders for more buses, rail cars and the like. Potentially, this deficiency could have a major impact on the future growth of this city. Nothing turns away major businesses that want to be at our “Gateway” than bad transportation issues, massive traffic, underperforming schools, overcrowding and high costs to living. We seem to have it all.
Conclusion
Normally, I ask that people get involved, vote and to write letters to our politicos. The urgency of this problem is beyond that. Nothing short of community leaders forming coalitions and committees to oversea planning and implementation will resolve this issue. Politics is a foregone idea. For those of you who doubt me on this, start going back in time a read the articles and look at the major budget changes, contractor changes, management changes, public oversight conclusions (I should say public overblindness) to building airport terminals at the Miami Airport. This will take some fist pounding, marches and national embarrassment and we also need to vote people out of office. We need to do public /private ventures to help defray the cost. (as in public funding, private management) Worst of all is, if we want this in our community, we might well have to find a way to pay for some of it ourselves. There goes another penny in sales tax! But I must say, I want to get credit for it somehow. I refuse to pay for public official incompetence.
What is wrong with Elitism?
What is wrong with Elitism?
By: Rene Velez Aug 01st, 2008.
Many years ago when studying about communism and the Russian revolution, a discussion broke out as to why the Mensheviks would not want to overthrow the Bolsheviks. Remember the Mensheviks were the lower class and the Bolsheviks were the upper class, who were in power and had more wealth. I should also add the Bolsheviks were the minority. The discussion basically said that the Mensheviks would not overthrow the Bolsheviks because the Bolsheviks were what the Mensheviks aspired to be. Namely, wealthy and in power. Ever since that day I saw a great flaw in that statement. It does not address the fact that the masses have certain basic needs and that if those needs are not met, inevitably the majority will force the minority out.
I bring this up simply because we keep hearing in the news about how the middle class continues to struggle just to make ends meet. In fact many studies show the middle class is loosing ground. And to add insult to injury the rich continue to prosper and to gain more wealth. In fact the number of billionaires continues to increase. Is there something wrong with this scenario? What’s so bad about being rich? It seems as though suddenly the whole world is turning on the super rich. My heart really pours out to these poor unfortunate few. (Not really)
Rich, a bad thing?
My feeling is; Wealth in and of itself is not bad! It’s a good thing that we have more billionaires today than yesterday. I admit it, I wish I were super rich. This means that there is more potential to create jobs, invest in capital goods and create services. This stimulates the economy and the hopes are that there will be more wealthy households. We would hope that these households would produce family members that are well educated, and in lump sum contribute to society.
There’s the Rub
There is nothing wrong with being super rich. The real issue is that with wealth comes responsibility. Or at least we hope that the super wealthy assume responsibility. The Batman series makes it a point to stress that Bruce Wayne, a billionaire, takes onto himself the responsibility of Gotham City. Not for personal gain but for the good of the people of Gotham. Why should this responsibility be born by the super rich? It should be obvious. Money yields a degree of power and influence. Most of us know this, even though I have seen many of the rich shy away from it. Many of the rich and perhaps, especially the new rich seem to want to abdicate their responsibility. It’s almost as though once they make it, they don’t want to take on responsibility. Perhaps, their definition of rich is that they have a carefree life with no responsibility. Perhaps, that is the real definition of super rich. It’s not how much money you have it’s about how little you have to worry. After all being responsible brings about a struggle and all the worries one can dream of. Who wants more problems? The truth is that being rich involves taking on a wealth of problems. In fact being super rich has its own set of problems.
The Cons
Being super rich brings about a normal tendency to adopt conspicuous consumption. We read about these things all the time. You’re so wealthy you buy extravagant and luxurious items. That 23 bedroom home with 40 bathrooms, 5 kitchens, 50 car garage, home theatre for 75, complete with an Olympic pool and tennis court. Did I mention that there are only 4 members in the family? Did I mention that most of the time the house is empty? Conspicuous consumption can be obscene, and it certainly does stir curiosity. If you ask some of the super rich, some actually live in fear. Why? They fear that their life style and wealth could actually bring them harm. I must admit, if I were super wealthy I think I might develop a certain level of paranoia. There are a lot of sick people out there. You could be killed by some mentally ill person who wants to show up on the nightly news. At best being super wealthy might bring about a certain celebrity status. This has pit falls also. The super famous, will tell you that it is extremely exhausting to have photographers popping up out of the bushes, to take a picture. Or snapping photos while you’re in the bathroom. Most people take for granted going for a walk or going to the mall. Celebrities, have to often give these small pleasures up altogether. It’s not easy being rich. It’s easy to see that security concerns, privacy and managing wealth costs money and takes up time. I once was discussing with a new client who had come into great wealth, he had to be more prudent in spending his money, investing and tracking his tax exposure. Being wealthy does by necessity require more administration than you might think. Then there are those that are simply trying to steal your money. Everybody from the landscaper to your investment manager charges you more cause you have money. Sometimes the worst culprits are the immediate family! People who are rich wind up paying more simply because…they are rich.
Being super rich has some serious down sides. Perhaps that is why many shy away from accepting responsibility.
Elitism and Indifference
Most people tend to gravitate and socialize with members of society who are like they are. It’s hard to socialize with people who are less educated and less priviledged. This may sound like elitism, but is it really? If your life revolves around meeting the super wealthy and influential, and making trips to far and distant places, and buying very expensive luxury items it’s kind of difficult to relate to Joe and Mary Workman who , work and struggle for a living. Joe and Mary work so hard to keep up and to take care of the children that planning a vacation and the associated cost are more stressful than staying at home. Joe and Mary Workman have a totally different view and set of preoccupations than the super wealthy. Does this mean that there is no connection? Absolutely not! Elitism is not because you are wealthy or because you do not often socialize with people outside of your sphere. It is because you are so out of touch that you can no longer relate to the rest of the world. Herein lies the crux of the problem. How can, the super rich, those who have power and influence best understand and contribute to society as a whole when they really don’t understand or even relate to how 98% of how the world lives. Indifference is a sign of how wealth corrupts the wealthy. You might say indifference among the super rich is a sign of becoming a victim of your own success. This is not good! You can say, indifference is the real elitism. The super rich usually pride themselves on the material things that they posses, on the high level of education they attain, and the influence they have. There is a level of status and culture that is portrayed if you are super rich. However, indifference truly is a sign of a poor education and low class. You can not truly be the upper crust if you do not understand your everyday citizen. I wonder how the politically elite fair in this scenario. Should these people really be your representative?
The Etiquette of Social Responsibility
Being truly wealthy and cultured demands Responsibility. If you loved good wines and were very wealthy you could potentially drink yourself to death on fine wines. That would not be good. It’s also not responsible. So therefore, if you are the crust of society, or at minimum, you care about society and are very wealthy, good culture and form would demand that you accept your respective level of responsibility for society. What does that mean? I does not necessarily require giving away your money! Having good etiquette in social responsibility may not cost you a fortune. Giving away your money may not necessarily be an efficient use of assets to bring about the greater good of humanity. Take Bill Gates and Warren Buffet. Both of these Mega Billionaires are more interested in using their wealth to bring about new ways of thinking to solve social problems. OF course they use money to do this, but not by just giving it away. Such basic problems as fighting diseases and feeding the hungry, providing for education. Just throwing money at these problems is not the solution. We know welfare systems typically do not work. You have to create a mechanism and a culture to provide for sustainability.
Your social responsibility lies in you doing something to influence and create a better life for those who are less fortunate. Another way to look at this is not to treat the symptom, but rather treat the root cause.
Conclusion
The true sign of wealth, influence and power is how you use your knowledge and skill to bring about changes that create and sustain your wealth and create wealth and opportunity for those below you. The latter is what I call Social Responsibility. I hope you might be asking yourself…You don’t really need money to do this. What you need is influence. Right?
Yes. Perhaps that is the greatest contribution the new generation has for us all. They may not be the super rich, but collectively they have a great deal of influence. What’s more is that they are using their influence as a group to bring about social responsibility. In fact they are telling us where we are not responsible. They are dictating to employers what they expect. They are hitting the polls and voting. They want a better government, more fuel efficient cars, public transportation and the list goes on. Perhaps there is no better sign to their determination than the number of startups by this new generation. Maybe the revolution of the Mensheviks is here again.
By: Rene Velez Aug 01st, 2008.
Many years ago when studying about communism and the Russian revolution, a discussion broke out as to why the Mensheviks would not want to overthrow the Bolsheviks. Remember the Mensheviks were the lower class and the Bolsheviks were the upper class, who were in power and had more wealth. I should also add the Bolsheviks were the minority. The discussion basically said that the Mensheviks would not overthrow the Bolsheviks because the Bolsheviks were what the Mensheviks aspired to be. Namely, wealthy and in power. Ever since that day I saw a great flaw in that statement. It does not address the fact that the masses have certain basic needs and that if those needs are not met, inevitably the majority will force the minority out.
I bring this up simply because we keep hearing in the news about how the middle class continues to struggle just to make ends meet. In fact many studies show the middle class is loosing ground. And to add insult to injury the rich continue to prosper and to gain more wealth. In fact the number of billionaires continues to increase. Is there something wrong with this scenario? What’s so bad about being rich? It seems as though suddenly the whole world is turning on the super rich. My heart really pours out to these poor unfortunate few. (Not really)
Rich, a bad thing?
My feeling is; Wealth in and of itself is not bad! It’s a good thing that we have more billionaires today than yesterday. I admit it, I wish I were super rich. This means that there is more potential to create jobs, invest in capital goods and create services. This stimulates the economy and the hopes are that there will be more wealthy households. We would hope that these households would produce family members that are well educated, and in lump sum contribute to society.
There’s the Rub
There is nothing wrong with being super rich. The real issue is that with wealth comes responsibility. Or at least we hope that the super wealthy assume responsibility. The Batman series makes it a point to stress that Bruce Wayne, a billionaire, takes onto himself the responsibility of Gotham City. Not for personal gain but for the good of the people of Gotham. Why should this responsibility be born by the super rich? It should be obvious. Money yields a degree of power and influence. Most of us know this, even though I have seen many of the rich shy away from it. Many of the rich and perhaps, especially the new rich seem to want to abdicate their responsibility. It’s almost as though once they make it, they don’t want to take on responsibility. Perhaps, their definition of rich is that they have a carefree life with no responsibility. Perhaps, that is the real definition of super rich. It’s not how much money you have it’s about how little you have to worry. After all being responsible brings about a struggle and all the worries one can dream of. Who wants more problems? The truth is that being rich involves taking on a wealth of problems. In fact being super rich has its own set of problems.
The Cons
Being super rich brings about a normal tendency to adopt conspicuous consumption. We read about these things all the time. You’re so wealthy you buy extravagant and luxurious items. That 23 bedroom home with 40 bathrooms, 5 kitchens, 50 car garage, home theatre for 75, complete with an Olympic pool and tennis court. Did I mention that there are only 4 members in the family? Did I mention that most of the time the house is empty? Conspicuous consumption can be obscene, and it certainly does stir curiosity. If you ask some of the super rich, some actually live in fear. Why? They fear that their life style and wealth could actually bring them harm. I must admit, if I were super wealthy I think I might develop a certain level of paranoia. There are a lot of sick people out there. You could be killed by some mentally ill person who wants to show up on the nightly news. At best being super wealthy might bring about a certain celebrity status. This has pit falls also. The super famous, will tell you that it is extremely exhausting to have photographers popping up out of the bushes, to take a picture. Or snapping photos while you’re in the bathroom. Most people take for granted going for a walk or going to the mall. Celebrities, have to often give these small pleasures up altogether. It’s not easy being rich. It’s easy to see that security concerns, privacy and managing wealth costs money and takes up time. I once was discussing with a new client who had come into great wealth, he had to be more prudent in spending his money, investing and tracking his tax exposure. Being wealthy does by necessity require more administration than you might think. Then there are those that are simply trying to steal your money. Everybody from the landscaper to your investment manager charges you more cause you have money. Sometimes the worst culprits are the immediate family! People who are rich wind up paying more simply because…they are rich.
Being super rich has some serious down sides. Perhaps that is why many shy away from accepting responsibility.
Elitism and Indifference
Most people tend to gravitate and socialize with members of society who are like they are. It’s hard to socialize with people who are less educated and less priviledged. This may sound like elitism, but is it really? If your life revolves around meeting the super wealthy and influential, and making trips to far and distant places, and buying very expensive luxury items it’s kind of difficult to relate to Joe and Mary Workman who , work and struggle for a living. Joe and Mary work so hard to keep up and to take care of the children that planning a vacation and the associated cost are more stressful than staying at home. Joe and Mary Workman have a totally different view and set of preoccupations than the super wealthy. Does this mean that there is no connection? Absolutely not! Elitism is not because you are wealthy or because you do not often socialize with people outside of your sphere. It is because you are so out of touch that you can no longer relate to the rest of the world. Herein lies the crux of the problem. How can, the super rich, those who have power and influence best understand and contribute to society as a whole when they really don’t understand or even relate to how 98% of how the world lives. Indifference is a sign of how wealth corrupts the wealthy. You might say indifference among the super rich is a sign of becoming a victim of your own success. This is not good! You can say, indifference is the real elitism. The super rich usually pride themselves on the material things that they posses, on the high level of education they attain, and the influence they have. There is a level of status and culture that is portrayed if you are super rich. However, indifference truly is a sign of a poor education and low class. You can not truly be the upper crust if you do not understand your everyday citizen. I wonder how the politically elite fair in this scenario. Should these people really be your representative?
The Etiquette of Social Responsibility
Being truly wealthy and cultured demands Responsibility. If you loved good wines and were very wealthy you could potentially drink yourself to death on fine wines. That would not be good. It’s also not responsible. So therefore, if you are the crust of society, or at minimum, you care about society and are very wealthy, good culture and form would demand that you accept your respective level of responsibility for society. What does that mean? I does not necessarily require giving away your money! Having good etiquette in social responsibility may not cost you a fortune. Giving away your money may not necessarily be an efficient use of assets to bring about the greater good of humanity. Take Bill Gates and Warren Buffet. Both of these Mega Billionaires are more interested in using their wealth to bring about new ways of thinking to solve social problems. OF course they use money to do this, but not by just giving it away. Such basic problems as fighting diseases and feeding the hungry, providing for education. Just throwing money at these problems is not the solution. We know welfare systems typically do not work. You have to create a mechanism and a culture to provide for sustainability.
Your social responsibility lies in you doing something to influence and create a better life for those who are less fortunate. Another way to look at this is not to treat the symptom, but rather treat the root cause.
Conclusion
The true sign of wealth, influence and power is how you use your knowledge and skill to bring about changes that create and sustain your wealth and create wealth and opportunity for those below you. The latter is what I call Social Responsibility. I hope you might be asking yourself…You don’t really need money to do this. What you need is influence. Right?
Yes. Perhaps that is the greatest contribution the new generation has for us all. They may not be the super rich, but collectively they have a great deal of influence. What’s more is that they are using their influence as a group to bring about social responsibility. In fact they are telling us where we are not responsible. They are dictating to employers what they expect. They are hitting the polls and voting. They want a better government, more fuel efficient cars, public transportation and the list goes on. Perhaps there is no better sign to their determination than the number of startups by this new generation. Maybe the revolution of the Mensheviks is here again.
Monday, July 28, 2008
The Aviation Conspiracy - That Wasn't
The Aviation Conspiracy- That wasn’t
By: Rene Velez July 27, 2008
For those of you that don’t know, apart from my interest in business, politics and the global economy, I am also an aviation enthusiast and a licensed pilot. Some events in the not so distant past together with current events got me to thinking about the aviation industry as a whole. What lay ahead for an industry that in my opinion, is in for significant change. Or perhaps, I should say evolution.
Just a Thought
There was a time when I used to believe in conspiracy theories. Today, I largely discount them. Why you ask? I have learned two important facts of life and business. (1) Most large organizations that could gain in some way from conspiracy are having too hard a time trying to get the ordinary things right. Great conspiracies require a great deal of alignment and work to carry out. Hence, they usually don’t materialize. (2) In today’s information era it takes a small miracle to keep a secret. Sooner, or later, word gets out and it’s a conspiracy no more. So I am not a conspiracy theory believer. (although they do exist) However, I do think that when a lot of money is involved or at stake and that economic power is put to force…..the consequences are somewhat similar. So what does this have to do with anything? Judge for yourself.
What We Hear in The News
A large part of my comments here have to do with isolated stories and ideas that somehow have formed some linear and logical conclusion in my mind. I must admit, I amaze myself sometimes. Here are the headlines that make up my theory. Not quoted and in my own words.
(1) Airlines Face Challenges Due to High Fuel Prices
(2) Demographics are changing population density in urban settings.
(3) Airlines have Improperly Blamed General Aviation for Flight Delays.
(4) Airlines Want General Aviation to Pay User Fees.
(5) GPS Navigation is Transforming Global Navigation Systems.
(6) Airline Customer Satisfaction At An All Time Low.
(7) FAA Examines Changes in The 51% Rule.
(8) Kit Built Aircraft Outperform Production Aircraft of the Day.
(9) Fractional Ownership Flights Fastest Growing Segment of Aviation.
The Paradigm Shift In Aviation
Personally, I don’t think the airlines will disappear. I do however, think the airlines will change into something other than what they are today. Perhaps, on a smaller and even a nationally subsidized scale. Of course this type of change in a billion dollar industry could create a formidable force against General Aviation. The up and coming industry that I think has a real potential to change. If I am right, it will be one of the biggest changes to mass transit in the current century. (maybe)
Here is the theory……..One day you could drive to your local airport, hop on a small plane, type in your desired destination (say Miami to Orlando, Florida) and the small plane’s navigation system will connect into the aerospace commuter network and que your flight into a domestic air route superhighway. The plane will communicate with you, taxi itself to the runway and takeoff and land automatically, taxi you to the local terminal, while you make phone calls and read the paper. No pilot required!
To the average Joe or Mary this sounds right out of the Jetson’s. But the technology is already here. What does not exist is the infrastructure. And the airlines are worried their days are numbered.
Still don’t believe its here. Read the news on the war in Iraq. Predator, UAV’s (Unmanned Aviation Vehicles) are taking off in Afghanistan, remotely operated by pilots, sitting at a computer, from the USA. (Halfway around the globe!) They are doing reconnasince missions and when called on can even launch weapons and form offensive air to ground attacks or provide troop support. It’s here, its now!
What We Already Know
We are all tired of hearing and reading the stories of passengers who are frustrated with airline service. Delays, lost luggage, security checks, airborne health risks, extra baggage fees, passenger rage. It’s uncivilized to travel by airline these days.
We also know that fractional ownership and private air transport is in fact one of the fastest growing segments of aviation in the last decade. In large part for the corporate elite and wealthy but there are examples of low cost commuter options too.
The kit building industry is producing, safe, easy to build kit airplanes that are superior in performance and efficiency than certified production airplanes. These are kits you can build in your garage!
With general aviation, there is usually no need to arrive in a busy metropolitan airport. Travel to a nearby regional airport, with little to no traffic delays and you can even be picked up right at the door of your plane. No hassle, security checks or long lines. Often times your business professionals have business outside of the major metropolitan areas. So this is very convenient.
GPS navigation is slowly taking over other methods of navigation. In all my years of flying the only time I used NDB was simply to see if it worked. Although ILS approaches are still used today more and more these are being supplanted in use by GPS approaches. In fact some ILS approaches are being discontinued altogether. Every major flight school I have visited recently has trainers with IFR rated GPS systems. And students are requesting to be taught on their use.
One look at the general aviation instrumentation developments of the past decade and the only limit to what you can get is how much you can afford. And this will likely decline in cost much as all technology has come down in price over the years. Yet, the cost today is still within reach of many. The typical businessman who is also a pilot could afford a three dimensional GPS navigation system with terrain features and built in XM weather notification for what a couple of high end laptops would cost.
For $85,000 and about 700 hours of your time, you can buy a 2 seat kit airplane, that you bolt together, glue, add some minor body filler, sand and paint in your two car garage, that will outperform a $200,000 Cessna. Granted the Cessna may have 4 seats but depending on how heavy your payload is you may not be able to use all four seats. This aircraft will have a GPS system, and glass cockpit devices and get fuel efficiency that rivals a Honda Civic’s 30 miles to the gallon. This is close to the efficiency of airline travel. This is here and now.
Conclusion
I truly do not believe in conspiracy theories, but when you have at risk billions of dollars like the airlines and you see that your critical mass and economies of scale are slipping, it’s a fare bet that they will do everything they need to do to put the competition out to dry. It’s capitalism at play. The real danger is that General Aviation is highly fragmented. Many small companies that compete for a small market. Product liability is huge. Many of these companies are thinly capitalized. In fact many exist only because of the entrepreneurship of the owners, their hard work and their absolute love of aviation. If you think about that you can see why so much innovation has occurred in the last two decades. All the right human variables are there.
General Aviation can help our economy and promote transportation and logistical science to a level never before seen on this planet. This is another American dream waiting to happen. If we as a society stand behind General Aviation, we could create many competitive advantages in a global economy. Here are a few ideas that may emerge:
(1) Development of sciences for road traffic congestion and logistics in high density metropolitan areas.
(2) Create new cost effective modes of product distribution.
(3) Development of better satellite technologies.
(4) Enable the portability of Human Capital.
(5) Expansion of regional economies.
The sciences of General Aviation can lend themselves to so many economic models that its contribution could have a similar paradigm shift on the global economy as computers have on the way we do business today.
I guess I should send a few bucks to organizations such as AOPA and EAA. In addition, I should tell people more often; I am a pilot and how important that freedom is to our country. America is one of only a few countries where we have this freedom. Don’t let government and politics stand in front General Aviation. It would be a costly mistake.
By: Rene Velez July 27, 2008
For those of you that don’t know, apart from my interest in business, politics and the global economy, I am also an aviation enthusiast and a licensed pilot. Some events in the not so distant past together with current events got me to thinking about the aviation industry as a whole. What lay ahead for an industry that in my opinion, is in for significant change. Or perhaps, I should say evolution.
Just a Thought
There was a time when I used to believe in conspiracy theories. Today, I largely discount them. Why you ask? I have learned two important facts of life and business. (1) Most large organizations that could gain in some way from conspiracy are having too hard a time trying to get the ordinary things right. Great conspiracies require a great deal of alignment and work to carry out. Hence, they usually don’t materialize. (2) In today’s information era it takes a small miracle to keep a secret. Sooner, or later, word gets out and it’s a conspiracy no more. So I am not a conspiracy theory believer. (although they do exist) However, I do think that when a lot of money is involved or at stake and that economic power is put to force…..the consequences are somewhat similar. So what does this have to do with anything? Judge for yourself.
What We Hear in The News
A large part of my comments here have to do with isolated stories and ideas that somehow have formed some linear and logical conclusion in my mind. I must admit, I amaze myself sometimes. Here are the headlines that make up my theory. Not quoted and in my own words.
(1) Airlines Face Challenges Due to High Fuel Prices
(2) Demographics are changing population density in urban settings.
(3) Airlines have Improperly Blamed General Aviation for Flight Delays.
(4) Airlines Want General Aviation to Pay User Fees.
(5) GPS Navigation is Transforming Global Navigation Systems.
(6) Airline Customer Satisfaction At An All Time Low.
(7) FAA Examines Changes in The 51% Rule.
(8) Kit Built Aircraft Outperform Production Aircraft of the Day.
(9) Fractional Ownership Flights Fastest Growing Segment of Aviation.
The Paradigm Shift In Aviation
Personally, I don’t think the airlines will disappear. I do however, think the airlines will change into something other than what they are today. Perhaps, on a smaller and even a nationally subsidized scale. Of course this type of change in a billion dollar industry could create a formidable force against General Aviation. The up and coming industry that I think has a real potential to change. If I am right, it will be one of the biggest changes to mass transit in the current century. (maybe)
Here is the theory……..One day you could drive to your local airport, hop on a small plane, type in your desired destination (say Miami to Orlando, Florida) and the small plane’s navigation system will connect into the aerospace commuter network and que your flight into a domestic air route superhighway. The plane will communicate with you, taxi itself to the runway and takeoff and land automatically, taxi you to the local terminal, while you make phone calls and read the paper. No pilot required!
To the average Joe or Mary this sounds right out of the Jetson’s. But the technology is already here. What does not exist is the infrastructure. And the airlines are worried their days are numbered.
Still don’t believe its here. Read the news on the war in Iraq. Predator, UAV’s (Unmanned Aviation Vehicles) are taking off in Afghanistan, remotely operated by pilots, sitting at a computer, from the USA. (Halfway around the globe!) They are doing reconnasince missions and when called on can even launch weapons and form offensive air to ground attacks or provide troop support. It’s here, its now!
What We Already Know
We are all tired of hearing and reading the stories of passengers who are frustrated with airline service. Delays, lost luggage, security checks, airborne health risks, extra baggage fees, passenger rage. It’s uncivilized to travel by airline these days.
We also know that fractional ownership and private air transport is in fact one of the fastest growing segments of aviation in the last decade. In large part for the corporate elite and wealthy but there are examples of low cost commuter options too.
The kit building industry is producing, safe, easy to build kit airplanes that are superior in performance and efficiency than certified production airplanes. These are kits you can build in your garage!
With general aviation, there is usually no need to arrive in a busy metropolitan airport. Travel to a nearby regional airport, with little to no traffic delays and you can even be picked up right at the door of your plane. No hassle, security checks or long lines. Often times your business professionals have business outside of the major metropolitan areas. So this is very convenient.
GPS navigation is slowly taking over other methods of navigation. In all my years of flying the only time I used NDB was simply to see if it worked. Although ILS approaches are still used today more and more these are being supplanted in use by GPS approaches. In fact some ILS approaches are being discontinued altogether. Every major flight school I have visited recently has trainers with IFR rated GPS systems. And students are requesting to be taught on their use.
One look at the general aviation instrumentation developments of the past decade and the only limit to what you can get is how much you can afford. And this will likely decline in cost much as all technology has come down in price over the years. Yet, the cost today is still within reach of many. The typical businessman who is also a pilot could afford a three dimensional GPS navigation system with terrain features and built in XM weather notification for what a couple of high end laptops would cost.
For $85,000 and about 700 hours of your time, you can buy a 2 seat kit airplane, that you bolt together, glue, add some minor body filler, sand and paint in your two car garage, that will outperform a $200,000 Cessna. Granted the Cessna may have 4 seats but depending on how heavy your payload is you may not be able to use all four seats. This aircraft will have a GPS system, and glass cockpit devices and get fuel efficiency that rivals a Honda Civic’s 30 miles to the gallon. This is close to the efficiency of airline travel. This is here and now.
Conclusion
I truly do not believe in conspiracy theories, but when you have at risk billions of dollars like the airlines and you see that your critical mass and economies of scale are slipping, it’s a fare bet that they will do everything they need to do to put the competition out to dry. It’s capitalism at play. The real danger is that General Aviation is highly fragmented. Many small companies that compete for a small market. Product liability is huge. Many of these companies are thinly capitalized. In fact many exist only because of the entrepreneurship of the owners, their hard work and their absolute love of aviation. If you think about that you can see why so much innovation has occurred in the last two decades. All the right human variables are there.
General Aviation can help our economy and promote transportation and logistical science to a level never before seen on this planet. This is another American dream waiting to happen. If we as a society stand behind General Aviation, we could create many competitive advantages in a global economy. Here are a few ideas that may emerge:
(1) Development of sciences for road traffic congestion and logistics in high density metropolitan areas.
(2) Create new cost effective modes of product distribution.
(3) Development of better satellite technologies.
(4) Enable the portability of Human Capital.
(5) Expansion of regional economies.
The sciences of General Aviation can lend themselves to so many economic models that its contribution could have a similar paradigm shift on the global economy as computers have on the way we do business today.
I guess I should send a few bucks to organizations such as AOPA and EAA. In addition, I should tell people more often; I am a pilot and how important that freedom is to our country. America is one of only a few countries where we have this freedom. Don’t let government and politics stand in front General Aviation. It would be a costly mistake.
The Cost of a Green Planet
The Cost of a Green Planet
By: Rene Velez July 27, 2008
I doubt that anyone has passed a day without some notice on the desire to live and prosper green. High energy prices, global warming and perhaps the new desire to have America become energy independent, is making headlines. Today it seems that ordinary citizens, corporations large and small and even government is making a move in the right direction. All of this is good. I hope we stay focused and on target.
T Boone Pickens even has his own ad that says we should seek out alternative energy sources. Frankly even if he has a vested interest, I don’t care if he makes another billion. Al Gore, has recently borrowed a JFK line to become energy independent in 10 years. People seem to think that this is very optimistic. Yes it is, but….I have to agree. We need to be very wary of the nay sayers.
Technology
The average American citizen does not understand how much technology already exists to make this happen. In addition even small changes, collectively, have very profound effects. In my home its been years since I implemented two plans that have saved me thousands so far. I have purchased energy efficient CFC bulbs for my home, where ever they could be used. Even my pool light, and inside refrigerator lights are CFC. I would guess total savings monthly….about $15.00. This doesn’t take into account the bulbs, although slightly more expensive, last longer too! In addition I invested in a computerized thermostat for the home and office climate system. At about $80.00 each I suspect, the cost of each was recaptured within 4 months, since my electric bill dropped about $20.00 per month. The unit turns itself off or on as programmed saving a lot of energy. I need to mention this is old technology used in a new way. CFC bulbs are in effect florecent bulbs that have been around for a long time. The computerized time thermostat is technology from the 1960’s.
Other, things that can save energy that are old technology are, solar panels and wind generators. Solar panels have been used in some form or another in South Florida since the 1970’s. However, wind energy has not been used as much because we don’t get enough consistent wind to make it viable. However, in the Midwest there are homes that have erected their own wind generators that enable these homes not only to go off the grid, but to actually sell excess power to the electric company. If I could make a profit center out of wind I would do it in a heartbeat.
Another old technology that I have not heard too much of as of late is “cogeneration”. Here is how it works. I like most homes in South Florida have an energy efficient central air conditioner. The outside unit which is composed of the compressor and coils generate a lot of heat as a by product of cooling my home. That unit would be tied to my hot water heater so that heat would make hot water for bath water and other home uses. What this means is that less energy is used overall, since the initial energy to cool your home substantially heats all of your hot water needs. In fact it can make your air conditioner more energy efficient as water is a great heat sink. Again simple technology, it exists today, yet it’s not used very often. I suspect we will here a lot about this in the future.
Okay I know what you are thinking…why is this not used more often? Simple business decision. I rather sell you two appliances than one. Ouch! capitalism hurts!
The Future cost of a Green America
If you think that $4.00 per gallon gas is expensive, you are really going to get sticker shock when you buy your 60 miles to the gallon Ford. We can in fact become more energy efficient, but of course everything that consumes energy of some kind or another will probably cost more. In fact that may really be the biggest obstacle to over come. Why? …lots of reasons. Many companies that are committed long term on old technologies will simply pass the cost of retooling to new products. The implementation of existing and new technology into current products simply will add a layer of sophistication that costs more. Although, I suspect with some products, sales volume and economies of scale will decrease prices somewhat.
In the near term I have made a decision to hold on to my gas furnace on wheels until new technology comes to market. And I suspect many others are thinking along the same lines. So instead of buying today’s hybrid, or the Honda Civic that gets 28 miles to the gallon, I will hold off and wait until say 2010 when Honda or some other company comes out with a car that gets 50 miles to the gallon. In fact, if petro prices maintain their upward curve, what I envision are a series of mass marketing attempts by auto manufacturers, to bring new technology cars to the market fast to prop up sales, until really great advances and innovation can be made affordable.
Getting over the Rainbow
I for one do not see that going green will mean a lower cost of living for everyone. In fact quite the opposite might occur. From cars to air conditioners to the office building where we work, everything will be greener and cost more. Kind of gives the green movement a new look. But, we must move on. We most get over it. In the end we can come very close to being energy independent. We can make a a serious contribution to saving our planet. We can also maintain competitive on a global market, as we license new energy technology to other countries that have us at a disadvantage on labor. That’s hard to see for most people but advances in fuel efficiency can amount, in the long term, to trillions of dollars in investments, research and development. This means jobs, it also means value. Any country that falls behind that curve will eventually loose global market share. So advances in this area are critical for our country.
Foreign Affairs and Wars
I have long suspected that one big reason for maintaining our dependency on foreign oil has been because: (1) its easy to maintain the status quo. Why bother to fix it if it works. (2) By pulling the billions of oil dollars out of the middle east we risk a geo-political imbalance.
I wish I was smart enough to tell you what are some possible outcomes. But I suspect even the best scholars on the subject really don’t know. I will however, take some guesses. I think much of the oil money that is reinvested in the USA will stay here. We are still a safe haven for foreign investment. In fact we are a good bet on new energy technologies. Suppose the middle east falls apart, having money in those countries is not a good idea. If I was a rich oil sheik I would be investing heavily on companies that will sell and license technologies to India and China. These are two huge energy consuming giants that will have to come up to the bar if they want to compete. Another very important point. We have taken the position to be the world's policeman. Although we need to be more cautious of which fights we pick, we also need to be more efficient has to how we fight them. We also have to be more independent to maintain global supremacy. At today’s cost of fuel and with our dependency on foreign oil we can be severely impacted by unstable political regimes and the cost to fight wars could send ripples through our economy, If it does not bankrupt us first. We wouldn’t be the first great nation to go bankrupt fighting wars and maintaining our borders.
Conclusion
We will either pay now or pay later, but we have to start to go green. We need to be first. We need to gain economic and political advantage.
As I have said many times before. Don’t assume your local politician or business leader will do this on their own. Again make your voice heard. Write/email your congressman or woman and your local and city officials. Tell them in no uncertain terms what you want. Send letters and emails to business leaders. People are still wondering whether Al Gore’s statement is plausible. Who cares! We need to start moving in that direction regardless. Let’s test the theory and see if it can be done. We can talk about it later. Hey….for years after we put a man on the moon, many people still didn’t believe it. This is something we can do while we have both feet planted on our own planet!
By: Rene Velez July 27, 2008
I doubt that anyone has passed a day without some notice on the desire to live and prosper green. High energy prices, global warming and perhaps the new desire to have America become energy independent, is making headlines. Today it seems that ordinary citizens, corporations large and small and even government is making a move in the right direction. All of this is good. I hope we stay focused and on target.
T Boone Pickens even has his own ad that says we should seek out alternative energy sources. Frankly even if he has a vested interest, I don’t care if he makes another billion. Al Gore, has recently borrowed a JFK line to become energy independent in 10 years. People seem to think that this is very optimistic. Yes it is, but….I have to agree. We need to be very wary of the nay sayers.
Technology
The average American citizen does not understand how much technology already exists to make this happen. In addition even small changes, collectively, have very profound effects. In my home its been years since I implemented two plans that have saved me thousands so far. I have purchased energy efficient CFC bulbs for my home, where ever they could be used. Even my pool light, and inside refrigerator lights are CFC. I would guess total savings monthly….about $15.00. This doesn’t take into account the bulbs, although slightly more expensive, last longer too! In addition I invested in a computerized thermostat for the home and office climate system. At about $80.00 each I suspect, the cost of each was recaptured within 4 months, since my electric bill dropped about $20.00 per month. The unit turns itself off or on as programmed saving a lot of energy. I need to mention this is old technology used in a new way. CFC bulbs are in effect florecent bulbs that have been around for a long time. The computerized time thermostat is technology from the 1960’s.
Other, things that can save energy that are old technology are, solar panels and wind generators. Solar panels have been used in some form or another in South Florida since the 1970’s. However, wind energy has not been used as much because we don’t get enough consistent wind to make it viable. However, in the Midwest there are homes that have erected their own wind generators that enable these homes not only to go off the grid, but to actually sell excess power to the electric company. If I could make a profit center out of wind I would do it in a heartbeat.
Another old technology that I have not heard too much of as of late is “cogeneration”. Here is how it works. I like most homes in South Florida have an energy efficient central air conditioner. The outside unit which is composed of the compressor and coils generate a lot of heat as a by product of cooling my home. That unit would be tied to my hot water heater so that heat would make hot water for bath water and other home uses. What this means is that less energy is used overall, since the initial energy to cool your home substantially heats all of your hot water needs. In fact it can make your air conditioner more energy efficient as water is a great heat sink. Again simple technology, it exists today, yet it’s not used very often. I suspect we will here a lot about this in the future.
Okay I know what you are thinking…why is this not used more often? Simple business decision. I rather sell you two appliances than one. Ouch! capitalism hurts!
The Future cost of a Green America
If you think that $4.00 per gallon gas is expensive, you are really going to get sticker shock when you buy your 60 miles to the gallon Ford. We can in fact become more energy efficient, but of course everything that consumes energy of some kind or another will probably cost more. In fact that may really be the biggest obstacle to over come. Why? …lots of reasons. Many companies that are committed long term on old technologies will simply pass the cost of retooling to new products. The implementation of existing and new technology into current products simply will add a layer of sophistication that costs more. Although, I suspect with some products, sales volume and economies of scale will decrease prices somewhat.
In the near term I have made a decision to hold on to my gas furnace on wheels until new technology comes to market. And I suspect many others are thinking along the same lines. So instead of buying today’s hybrid, or the Honda Civic that gets 28 miles to the gallon, I will hold off and wait until say 2010 when Honda or some other company comes out with a car that gets 50 miles to the gallon. In fact, if petro prices maintain their upward curve, what I envision are a series of mass marketing attempts by auto manufacturers, to bring new technology cars to the market fast to prop up sales, until really great advances and innovation can be made affordable.
Getting over the Rainbow
I for one do not see that going green will mean a lower cost of living for everyone. In fact quite the opposite might occur. From cars to air conditioners to the office building where we work, everything will be greener and cost more. Kind of gives the green movement a new look. But, we must move on. We most get over it. In the end we can come very close to being energy independent. We can make a a serious contribution to saving our planet. We can also maintain competitive on a global market, as we license new energy technology to other countries that have us at a disadvantage on labor. That’s hard to see for most people but advances in fuel efficiency can amount, in the long term, to trillions of dollars in investments, research and development. This means jobs, it also means value. Any country that falls behind that curve will eventually loose global market share. So advances in this area are critical for our country.
Foreign Affairs and Wars
I have long suspected that one big reason for maintaining our dependency on foreign oil has been because: (1) its easy to maintain the status quo. Why bother to fix it if it works. (2) By pulling the billions of oil dollars out of the middle east we risk a geo-political imbalance.
I wish I was smart enough to tell you what are some possible outcomes. But I suspect even the best scholars on the subject really don’t know. I will however, take some guesses. I think much of the oil money that is reinvested in the USA will stay here. We are still a safe haven for foreign investment. In fact we are a good bet on new energy technologies. Suppose the middle east falls apart, having money in those countries is not a good idea. If I was a rich oil sheik I would be investing heavily on companies that will sell and license technologies to India and China. These are two huge energy consuming giants that will have to come up to the bar if they want to compete. Another very important point. We have taken the position to be the world's policeman. Although we need to be more cautious of which fights we pick, we also need to be more efficient has to how we fight them. We also have to be more independent to maintain global supremacy. At today’s cost of fuel and with our dependency on foreign oil we can be severely impacted by unstable political regimes and the cost to fight wars could send ripples through our economy, If it does not bankrupt us first. We wouldn’t be the first great nation to go bankrupt fighting wars and maintaining our borders.
Conclusion
We will either pay now or pay later, but we have to start to go green. We need to be first. We need to gain economic and political advantage.
As I have said many times before. Don’t assume your local politician or business leader will do this on their own. Again make your voice heard. Write/email your congressman or woman and your local and city officials. Tell them in no uncertain terms what you want. Send letters and emails to business leaders. People are still wondering whether Al Gore’s statement is plausible. Who cares! We need to start moving in that direction regardless. Let’s test the theory and see if it can be done. We can talk about it later. Hey….for years after we put a man on the moon, many people still didn’t believe it. This is something we can do while we have both feet planted on our own planet!
Friday, July 25, 2008
Miami, South Florida - The Next Real Estate Boom
Miami, South Florida – The Next Real Estate Boom
By: Rene Velez (July 21st, 2008)
Good god, the bottom hasn’t even been reached and here I am writing about the next real estate boom in Miami. With 10 years of excess inventory in condominiums in downtown Miami and no one with a comprehensive answer as to how all those units will be absorbed. With rows of houses up for sale and a foreclosure rate that is keeping attorneys, banks and courts very busy why would I make a comment about the next real estate boom in Miami? I guess, it is inevitable that,……….. it will come. In fact I think it might come faster than what anybody may be willing to predict or admit. Yeah…I know it’s bad out there. For sure … I am not crazy and even the most pessimistic of economist will tell you….its just another cycle. But let’s not stop there. The reality is there is much about SoFlo (South Florida) that many have failed to really take in. In the end it adds up to a layer of insulation that SoFlo has. It’s something that few people get when they come here. In fact it’s something few people recognize on a daily basis even though we live here. We take it for granted. We hear of it. Yet somehow, the glare gets in our eyes and we don’t see it, the heat tires us until we can think no more. Then we start to sip on Cuba Libre, Mojitos or the local Margarita and suddenly it’s just not that important.
The Tropical Vibe
This is an element of the local life style that has in some way an insulating factor to the local economy. Certainly, this is not an economic factor that you would learn in a Harvard, Princeton or Yale economics class. But you might hit upon it at Florida International University or University of Miami. We have a certain Tropical Vibe and culture. Sometimes it shifts completely into the island mentality time zone but, if for no other good reason, only because we are attached and part of the upper 48 we maintain some sense of formality. Yes we have a Tropical Vibe. It’s in the food we eat, the cloths we wear, the warmth of the air. It’s in the way we relax and in the partners we attract. It’s in the sun on our faces and shoulders. We are a beautiful people in a beautiful place. The sun shines bright and the seasons soft and subtle. Yes this is an important variable as to why we do well. Everyone wants to be here. Everyone wants to live on vacation. So in the long run people will continue to come.
Value
Here is a term that most economist understand. We have “VALUE”! Yes it’s gotten very expensive to live here. I know that. In fact I am not sure how some manage. I am not sure how I manage. But here is something to consider. Go anywhere else in the USA, or internationally and find a place where you are 8 miles from the beautiful Caribbean waters and still find a home for less than $600,000. In a nutshell even expensive ocean front property is still a relative bargain considering its year round utility in a subtropical climate. So people will continue to come. We have “Value”!.
Culture
When I came here in 1976 from New York, I always new Miami had culture. Not in the New York kind of way, but you know, there was a way and a method to this place, and there were identifiable ethnic and cultural traits that gave Miami a culture. Today…..the scene is exploding. We have the Arts! We are in fact a metropolis recognized throughout the USA and the World. We have good food and dining. We have hotels. We have major universities. We have the people. People from all over the Caribbean, Central and South America, The USA, Europe, Asia and Canada. We are a cultural melting pot. We have glamour and the not so glamorous. We have baseball, hockey, basketball, football. We have festivals, air shows, auto racing, regattas. We have politics, trade, travel and tourism, music and cinema. We have a culture and a life. Hence people will come.
The Underground Economy
That’s right …….what no one in Miami wants to speak of. We have an underground economy. No one knows for sure how much, but it’s been here for decades scratch that “centuries”. Slave labor, rum running, drugs etc. etc. Today, we don’t have slave labor or rum running although some may argue that point, we have flight capital and offshore banking. This is money that comes to or through South Florida due to economic and political risk in the Caribbean and Central and South American countries, finds its way here and into our local economy. For sure we have some drug money also. Somehow, this adds to the economic stability of our local economy. I admit it is an ugly and seedy side of this economy but everybody has trash.
Retirement Stability Factor
People have been coming here for years for the warm weather and easy seasonal transitions. It’s easier on the bones and the subtle seasons makes life more pleasing. Sunshine is happiness and a good life. Yes. We need to give more credit to those retired folk who live on a fixed pensions, pay their taxes, spend a lot of money in healthcare goods and services and help stimulate the economy. Let’s also not forget the wealthy counterparts who come here to soak up the sun, play on our golf courses and eventually move into the varied assisted living facilities and nursing homes. This economic factor is not only stimulating but stabilizing in our local economy.
Gateway to the Americas
Here is a slogan I have heard often over the years. It’s time to really capitalize on this. No doubt that because of our inherent proximity to the Caribbean, Central and South America we are in fact the gateway to these countries. We have historically, benefited from this fact. Perhaps more so because we have a ready, willing and welcoming participatory population of Hispanics and culture that is very inviting to trade and business. Many of these countries are still developing countries. This essentially translates to further development and opportunities for business. There are many challenges in making this more of a robust and symbiotic relationship but the makings are already there. Although there are other states competing for this business, Miami is the ideal location for the furtherance of economic ties and for trade and tourism. Although I suspect the development of many Caribbean, Central and South American countries will take a long time I can see that many companies will choose to have their headquarters in south Florida. For this reason, this is a long term stabilizing factor and an opportunity to attract more business and population density into the area in years to come.
Conclusion
Here in South Florida we have many challenges ahead of us. Despite our economic melt down in the credit markets, overdevelopment in real estate, rising price of petro fuels and rising prices in the general cost of living….we have a vibrant future. I should mention that none of this will work out for the benefit of all if we do not have sound leadership in our local government. We need to have a local government that is focused on seeing many of these factors into fruition and not just consumed by petty politics, power grabbing and un-equitable squabbling. We must be united in culture and not divided in our vision. Our culture makes us vibrant and strong but I often fear it is also a factor that tears us apart as a community. Likewise, we need to have the right leadership at the national level in Washington, DC to help us achieve all of our economic capabilities. South Florida has a potential voice and influence in the Caribbean and Central and South American politics that can benefit the USA and these developing countries. We must be cognizant of this and exercise our unique knowledge and introspect towards moving Washington DC in the right direction. It’s safe to say Washington DC does not have a good foreign policy history. It’s very safe to say or simply to look back at how many businesses have come to South Florida and failed miserably simply because they didn’t understand the dynamics of our special populous. Along the way we need to make South Florida, more affordable so that we do not continue to widen the gap between the wealthy and the middle class. Many of the hardships, from our gateway partners are caused by just such an issue. Affordable and workforce housing will continue to be of utmost importance to our community. In addition transportation and education will be key drawing a population that will help achieve our local goals.
We will go through a variety of economic cycles. Those who stay and are aware of these cycles stand to gain from much opportunity. We are somewhat unique in our position and we might just be unique in the timing of history. Currently, we are in transition and we need to hope, pray and influence our leadership to invest in the future. We have unique economic variables and intangible drivers to our growth, our prosperity, our economy, our politics and how we live and see the future. We are SoFlo part of the Sunshine State!
By: Rene Velez (July 21st, 2008)
Good god, the bottom hasn’t even been reached and here I am writing about the next real estate boom in Miami. With 10 years of excess inventory in condominiums in downtown Miami and no one with a comprehensive answer as to how all those units will be absorbed. With rows of houses up for sale and a foreclosure rate that is keeping attorneys, banks and courts very busy why would I make a comment about the next real estate boom in Miami? I guess, it is inevitable that,……….. it will come. In fact I think it might come faster than what anybody may be willing to predict or admit. Yeah…I know it’s bad out there. For sure … I am not crazy and even the most pessimistic of economist will tell you….its just another cycle. But let’s not stop there. The reality is there is much about SoFlo (South Florida) that many have failed to really take in. In the end it adds up to a layer of insulation that SoFlo has. It’s something that few people get when they come here. In fact it’s something few people recognize on a daily basis even though we live here. We take it for granted. We hear of it. Yet somehow, the glare gets in our eyes and we don’t see it, the heat tires us until we can think no more. Then we start to sip on Cuba Libre, Mojitos or the local Margarita and suddenly it’s just not that important.
The Tropical Vibe
This is an element of the local life style that has in some way an insulating factor to the local economy. Certainly, this is not an economic factor that you would learn in a Harvard, Princeton or Yale economics class. But you might hit upon it at Florida International University or University of Miami. We have a certain Tropical Vibe and culture. Sometimes it shifts completely into the island mentality time zone but, if for no other good reason, only because we are attached and part of the upper 48 we maintain some sense of formality. Yes we have a Tropical Vibe. It’s in the food we eat, the cloths we wear, the warmth of the air. It’s in the way we relax and in the partners we attract. It’s in the sun on our faces and shoulders. We are a beautiful people in a beautiful place. The sun shines bright and the seasons soft and subtle. Yes this is an important variable as to why we do well. Everyone wants to be here. Everyone wants to live on vacation. So in the long run people will continue to come.
Value
Here is a term that most economist understand. We have “VALUE”! Yes it’s gotten very expensive to live here. I know that. In fact I am not sure how some manage. I am not sure how I manage. But here is something to consider. Go anywhere else in the USA, or internationally and find a place where you are 8 miles from the beautiful Caribbean waters and still find a home for less than $600,000. In a nutshell even expensive ocean front property is still a relative bargain considering its year round utility in a subtropical climate. So people will continue to come. We have “Value”!.
Culture
When I came here in 1976 from New York, I always new Miami had culture. Not in the New York kind of way, but you know, there was a way and a method to this place, and there were identifiable ethnic and cultural traits that gave Miami a culture. Today…..the scene is exploding. We have the Arts! We are in fact a metropolis recognized throughout the USA and the World. We have good food and dining. We have hotels. We have major universities. We have the people. People from all over the Caribbean, Central and South America, The USA, Europe, Asia and Canada. We are a cultural melting pot. We have glamour and the not so glamorous. We have baseball, hockey, basketball, football. We have festivals, air shows, auto racing, regattas. We have politics, trade, travel and tourism, music and cinema. We have a culture and a life. Hence people will come.
The Underground Economy
That’s right …….what no one in Miami wants to speak of. We have an underground economy. No one knows for sure how much, but it’s been here for decades scratch that “centuries”. Slave labor, rum running, drugs etc. etc. Today, we don’t have slave labor or rum running although some may argue that point, we have flight capital and offshore banking. This is money that comes to or through South Florida due to economic and political risk in the Caribbean and Central and South American countries, finds its way here and into our local economy. For sure we have some drug money also. Somehow, this adds to the economic stability of our local economy. I admit it is an ugly and seedy side of this economy but everybody has trash.
Retirement Stability Factor
People have been coming here for years for the warm weather and easy seasonal transitions. It’s easier on the bones and the subtle seasons makes life more pleasing. Sunshine is happiness and a good life. Yes. We need to give more credit to those retired folk who live on a fixed pensions, pay their taxes, spend a lot of money in healthcare goods and services and help stimulate the economy. Let’s also not forget the wealthy counterparts who come here to soak up the sun, play on our golf courses and eventually move into the varied assisted living facilities and nursing homes. This economic factor is not only stimulating but stabilizing in our local economy.
Gateway to the Americas
Here is a slogan I have heard often over the years. It’s time to really capitalize on this. No doubt that because of our inherent proximity to the Caribbean, Central and South America we are in fact the gateway to these countries. We have historically, benefited from this fact. Perhaps more so because we have a ready, willing and welcoming participatory population of Hispanics and culture that is very inviting to trade and business. Many of these countries are still developing countries. This essentially translates to further development and opportunities for business. There are many challenges in making this more of a robust and symbiotic relationship but the makings are already there. Although there are other states competing for this business, Miami is the ideal location for the furtherance of economic ties and for trade and tourism. Although I suspect the development of many Caribbean, Central and South American countries will take a long time I can see that many companies will choose to have their headquarters in south Florida. For this reason, this is a long term stabilizing factor and an opportunity to attract more business and population density into the area in years to come.
Conclusion
Here in South Florida we have many challenges ahead of us. Despite our economic melt down in the credit markets, overdevelopment in real estate, rising price of petro fuels and rising prices in the general cost of living….we have a vibrant future. I should mention that none of this will work out for the benefit of all if we do not have sound leadership in our local government. We need to have a local government that is focused on seeing many of these factors into fruition and not just consumed by petty politics, power grabbing and un-equitable squabbling. We must be united in culture and not divided in our vision. Our culture makes us vibrant and strong but I often fear it is also a factor that tears us apart as a community. Likewise, we need to have the right leadership at the national level in Washington, DC to help us achieve all of our economic capabilities. South Florida has a potential voice and influence in the Caribbean and Central and South American politics that can benefit the USA and these developing countries. We must be cognizant of this and exercise our unique knowledge and introspect towards moving Washington DC in the right direction. It’s safe to say Washington DC does not have a good foreign policy history. It’s very safe to say or simply to look back at how many businesses have come to South Florida and failed miserably simply because they didn’t understand the dynamics of our special populous. Along the way we need to make South Florida, more affordable so that we do not continue to widen the gap between the wealthy and the middle class. Many of the hardships, from our gateway partners are caused by just such an issue. Affordable and workforce housing will continue to be of utmost importance to our community. In addition transportation and education will be key drawing a population that will help achieve our local goals.
We will go through a variety of economic cycles. Those who stay and are aware of these cycles stand to gain from much opportunity. We are somewhat unique in our position and we might just be unique in the timing of history. Currently, we are in transition and we need to hope, pray and influence our leadership to invest in the future. We have unique economic variables and intangible drivers to our growth, our prosperity, our economy, our politics and how we live and see the future. We are SoFlo part of the Sunshine State!
Wednesday, July 16, 2008
Vacation Alternative Methods of Transport / a reflective journey
Vacation Alternative Methods of Transport / a reflective journey
By: Rene Velez July 14th, 2008
This year my family and I took an alternate travel medium for our vacation. Instead of living the jet set life, we took the train. Yes, for those of you who routinely fly and get there in record time this may sound slow, however, I saved on gas and travel expenses and made a “Green” travel. In the process I felt more……..civilized.
Train travel is still considered a method of luxury travel. Names such as the Orient Express, or the Hiram Bingham to Machu Picchu are well known examples. There are several in Europe as well. But you need not go to distant places. Amtrak still has places to go and things to do.
When you come to think about it, a typical two and one half hour jet flight, say Miami to New York still is a 5 to 6 hour ordeal when you account for: (a) time to get to the airport, (b) advance check in, (c) extra baggage fees, (d) degrading security check points, (e) taxi and ramp time waiting for takeoff clearance, (f) claiming luggage, (g) travel to your destination.
Rail travel provides coach sleeping, or sleepers. Coach sleeping is basically sleeping in an oversized First Class Airline Seat. Sleepers are in effect small rooms with beds and can accommodate two to four in a given configuration. The sleepers also provide for showers and other amenities. On our trip from Sanford, FL. to Lorton, VA., we dined at night in the dining car. The food was fairly tasty. Much better than at many restaurants. In fact much better than I can ever recall in any first class flight I have ever taken. The dinner even included wine! A continental breakfast was served in the morning. A movie was shown in the lounge cars were you could buy beer and other alcoholic beverages and where snacks, fruits and coffee were offered for free. Yes…for free! In fact all the meals where included as part of the fair. The lounge cars was the place to get into a card game, a board game or simply to hang out and talk. Each coach seat has its own 110V electrical outlet. So bringing your laptop, play station or even charging your phone is no trouble at all. In our case we took the auto train so we even brought along the car, fully packed with all our travel gear. This is a real savings as we need not wait for a taxi or rent a car. In about 20 minutes after we got off the train our car was there waiting for us to be on our way.
I must say I was impressed. The whole mode of travel was fun, less restrictive than air travel. I felt comfortable and I even enjoyed talking to some of my fellow travelers. I haven’t said that about airline travel in quite some time. I was less stressed. I had time to read the paper or even a book if I wished. I could walk the train, go to the lounge cars and look out the window and see the rest of America.
So what did this luxury travel cost me for the four of us inclusive of on board meals, snacks and to bring my car along……$987.00 round trip! I actually felt even better when I started to think the trip I took was more fuel efficient than driving or airline travel. Taking the train is “Green”.
Okay…. Now that I have told you how good all this is what are the down sides. I must admit…if you’re in a hurry this isn’t for you. So airline travel is still safe in that respect. Sanford, FL. to Lorton, VA was a 13 hour ride. You get to sleep though. There were some sections were the view was not that great. Some towns seemed like remnants of the industrial revolution. In a weird way they called upon memories of old times and an economy that is no more. Although not pretty some of these old defunct towns have an artistic beauty all there own. In yet other areas you do see American poverty. Small towns with old wooden homes, or brick buildings in agricultural or industrial settings that depict our neglected sectors of society.
Nonetheless, I am a better man for my travels. The meandering railway together with the faded glory of yester year towns adds to my understanding of changing times, a changed economy, a population that is in need and how America has much to accomplish in the years to come. The slower place of travel added to my vacation as it made me reflect and think of my place in society and how fortunate I am. It also made my feel for my fellow citizens and their struggle to make an existence in a changed economy. Vacations are supposed to give you that time to see things you have missed and my train travel did just that.
This year is an election year and how appropriate that we visited our nations capital. This is a year of change and many Americans have change in their mind. I hope train travel develops further in years to come as a more energy efficient method of transportation. Train travel can be cost effective and affordable to all and green. I also hope many Americans get to see America in the way I saw part of America you otherwise may not see through jet travel. Some of these poor towns simply are not travel destinations and some might well be avoided altogether. It worries me that America, in this year of election will vote for change for the sake of change and not really understand the issues.
When visiting Europe I was impressed with the abundance of train stations, travel destinations and the affordability of train travel. I wondered how America did not follow suit. How can we as a nation have so badly neglected such a mode of transportation vital to many of our people? Why has industry not supported major railways and formed distribution hubs for goods based on a backbone of railways and regional trucking companies?
To some extent train travel, may well be taken for granted for people who live in metropolitan areas with diverse railway systems such as New York or Chicago. But, here in South Florida the railway system leaves much to be desired. With the cost of petro fuels on a sharp increase, perhaps no time is better to start considering these options than now.
I was reading an article that Warren Buffet is buying the rights to Southwestern rail lines. I suspect he is getting very good prices for these lines. Do you suppose he is buying these lines in anticipation of high oil prices? Do you suspect that railway distribution networks can be created to ship goods over long distances and then trucked to remote locations is cheaper and more cost effective than trucking small loads across the United States. At today’s prices, if sustained, I think there is a good bet on that! My guess is what’s old will come again and technology will improve what we once thought of railways.
My train travels have left me thinking of old ideas and old technology in a new way. However, changing political leadership will not create opportunity of itself, changing the way our political leaders think and how we as citizens reward them and how they stay in office will create change for the better. The cards are in our hands as citizens.
By: Rene Velez July 14th, 2008
This year my family and I took an alternate travel medium for our vacation. Instead of living the jet set life, we took the train. Yes, for those of you who routinely fly and get there in record time this may sound slow, however, I saved on gas and travel expenses and made a “Green” travel. In the process I felt more……..civilized.
Train travel is still considered a method of luxury travel. Names such as the Orient Express, or the Hiram Bingham to Machu Picchu are well known examples. There are several in Europe as well. But you need not go to distant places. Amtrak still has places to go and things to do.
When you come to think about it, a typical two and one half hour jet flight, say Miami to New York still is a 5 to 6 hour ordeal when you account for: (a) time to get to the airport, (b) advance check in, (c) extra baggage fees, (d) degrading security check points, (e) taxi and ramp time waiting for takeoff clearance, (f) claiming luggage, (g) travel to your destination.
Rail travel provides coach sleeping, or sleepers. Coach sleeping is basically sleeping in an oversized First Class Airline Seat. Sleepers are in effect small rooms with beds and can accommodate two to four in a given configuration. The sleepers also provide for showers and other amenities. On our trip from Sanford, FL. to Lorton, VA., we dined at night in the dining car. The food was fairly tasty. Much better than at many restaurants. In fact much better than I can ever recall in any first class flight I have ever taken. The dinner even included wine! A continental breakfast was served in the morning. A movie was shown in the lounge cars were you could buy beer and other alcoholic beverages and where snacks, fruits and coffee were offered for free. Yes…for free! In fact all the meals where included as part of the fair. The lounge cars was the place to get into a card game, a board game or simply to hang out and talk. Each coach seat has its own 110V electrical outlet. So bringing your laptop, play station or even charging your phone is no trouble at all. In our case we took the auto train so we even brought along the car, fully packed with all our travel gear. This is a real savings as we need not wait for a taxi or rent a car. In about 20 minutes after we got off the train our car was there waiting for us to be on our way.
I must say I was impressed. The whole mode of travel was fun, less restrictive than air travel. I felt comfortable and I even enjoyed talking to some of my fellow travelers. I haven’t said that about airline travel in quite some time. I was less stressed. I had time to read the paper or even a book if I wished. I could walk the train, go to the lounge cars and look out the window and see the rest of America.
So what did this luxury travel cost me for the four of us inclusive of on board meals, snacks and to bring my car along……$987.00 round trip! I actually felt even better when I started to think the trip I took was more fuel efficient than driving or airline travel. Taking the train is “Green”.
Okay…. Now that I have told you how good all this is what are the down sides. I must admit…if you’re in a hurry this isn’t for you. So airline travel is still safe in that respect. Sanford, FL. to Lorton, VA was a 13 hour ride. You get to sleep though. There were some sections were the view was not that great. Some towns seemed like remnants of the industrial revolution. In a weird way they called upon memories of old times and an economy that is no more. Although not pretty some of these old defunct towns have an artistic beauty all there own. In yet other areas you do see American poverty. Small towns with old wooden homes, or brick buildings in agricultural or industrial settings that depict our neglected sectors of society.
Nonetheless, I am a better man for my travels. The meandering railway together with the faded glory of yester year towns adds to my understanding of changing times, a changed economy, a population that is in need and how America has much to accomplish in the years to come. The slower place of travel added to my vacation as it made me reflect and think of my place in society and how fortunate I am. It also made my feel for my fellow citizens and their struggle to make an existence in a changed economy. Vacations are supposed to give you that time to see things you have missed and my train travel did just that.
This year is an election year and how appropriate that we visited our nations capital. This is a year of change and many Americans have change in their mind. I hope train travel develops further in years to come as a more energy efficient method of transportation. Train travel can be cost effective and affordable to all and green. I also hope many Americans get to see America in the way I saw part of America you otherwise may not see through jet travel. Some of these poor towns simply are not travel destinations and some might well be avoided altogether. It worries me that America, in this year of election will vote for change for the sake of change and not really understand the issues.
When visiting Europe I was impressed with the abundance of train stations, travel destinations and the affordability of train travel. I wondered how America did not follow suit. How can we as a nation have so badly neglected such a mode of transportation vital to many of our people? Why has industry not supported major railways and formed distribution hubs for goods based on a backbone of railways and regional trucking companies?
To some extent train travel, may well be taken for granted for people who live in metropolitan areas with diverse railway systems such as New York or Chicago. But, here in South Florida the railway system leaves much to be desired. With the cost of petro fuels on a sharp increase, perhaps no time is better to start considering these options than now.
I was reading an article that Warren Buffet is buying the rights to Southwestern rail lines. I suspect he is getting very good prices for these lines. Do you suppose he is buying these lines in anticipation of high oil prices? Do you suspect that railway distribution networks can be created to ship goods over long distances and then trucked to remote locations is cheaper and more cost effective than trucking small loads across the United States. At today’s prices, if sustained, I think there is a good bet on that! My guess is what’s old will come again and technology will improve what we once thought of railways.
My train travels have left me thinking of old ideas and old technology in a new way. However, changing political leadership will not create opportunity of itself, changing the way our political leaders think and how we as citizens reward them and how they stay in office will create change for the better. The cards are in our hands as citizens.
Thursday, June 12, 2008
It's my Vote and it WILL Count!
This election year is truely remarkable. However, the more things change the more they also stay the same.
Firstly, a few words about our candidates. I am very proud to see an american running for the highest office of the land. But of course you say; only an american can run for office. The issues that face this great nation are equally great and americans seem to have gone beyond the notion of race to vote for individuals who will bring about change. This is as it should be. I am prooud that americans from all walks of life and nationalities support Senator Barack Obama. We have accomplished a great deal as a nation in this. The dreams of many civil liberty leaders, as well as many citizens are being materialized despite the fact that racism is still all too alive and well. What an exciting moment in history when race does not matter as much as we may have all thought. Secondly, I think its been quite a year for women. Yet this doesn't surprise me as much, for women have been a staple of the accounting profession for years now. Nonetheless, Hillary Clinton has shown grace and strength and in time a women will be president of this great nation.
None of this is really new, we have voted for african americans and women for high offices and they typically have done very well in their careers. Why should we expect anything different. I hope the trend continues as diversity makes this country great and it will continue to make this country great in many years to come. Surely we can accumulate any amount of statistical evidence to support all kinds of notions for or against whether race or gender matters and in the end its all about the issues. The only reason race or gender matters now is only because this is a first.
As a hispanic minority I have often been rather confused by how people refer to me as a latino, a Puerto Rican or an American. Why broad brush me as one culture? I am of course all of that but I am an American first and foremost as this is where I was born, raised and educated and where I live, work and raise my family. Yet I have come to love my latin heritage, culture, music, language and everything else that goes along with being latino. In fact to nationalize my latin culture I am today less Puerto Rican and perhaps more Cuban simply because I live in Miami and am married to a Cuban woman. But on any given day I might feel close to a Colombian, a Venezuelan or a Mexican. Tomorrow I will meet a midwesterner and the next I will meet with a Bostonian. I can relate to all of them, and I love it. I do business in English and in Spanish. My parents were right, I am the future in a global sense and I am an American.
Perhaps this year is not about race or gender in elections. Perhaps not as much as the media has reported. My guess is that by November it will be the real issues. The economy, fossil fuels prices, the war in Iraq, social security, the trade deficit, the value of the dollar. Bad foriegn policy and missed opportunities by miopic leaders and business who only plan for the next day instead of the next decade are all to blame. For some time I have said that we are on the verge of some kind of social revolution in this country. You can not continue to live an elitist life and not worry for the middle and lower class. It does come back to undermine you. Yet what I am beginning to see is not so much a revolution in terms of civil rebellion but rather a generation that is starting to look at the world economy, culture and scarce resources on a wholistic sense. With more highly educated individuals on this planet than has ever existed and scalable technologies each of us will start to create new ways of thinking that will create wholistic solutions for our country and perhaps the world. It's a situation where the needs and wants of the one will create momentum in the masses to change for comprehensive solutions to many life problems. This bottom up approach has far reaching implications.
On the war in Iraq, this was a devasting failure. This country reacted to a threat that did not merritt the reaction. We should not have taken that action. Having said that, now that we are there we can not simply give in too easily. We can not throw in the towel. Seeing that democracy through is the right thing although we can not do it indefinetly. What we do not know is how and how long?
On Fossil Fuels, we need all kinds of alternatives. Nothing we have today would replace fossil fuels entirely. We need gas, biodiesel, ethanol, hydrogen cars, solar electricity, thermal enerygy, hydro electric, wind generators, hybrid cars, Co2 reclamation, nuclear power etc. etc.. There is no one magic solution. We need it all and we need it now. Of course we need less fossil fuel. We can do this in 5 to 10 years. Its doable with no more pain to the economy that what we are already feeling. The real failure here is that auto makers have failed to take a position early on and government was asleep at the wheel in mandating milestone changes over the last 20 years. We talk things to death in this country instead of making it happen. Shame on us. We could take lessons from Brazil. Again this is old news. We were hear in 1974 and the Japanese have since then capitalized on shortsighted automobile manufacturers. Here we go again.
On the economy, we need to regulate the way credit is administered in this country. This is not so much of the products offered as it is a lapse in judgement about how credit policy was administered in a prolonged period of low interest rates. Again our politicians and regulators were asleep at the wheel while loose credit policy was weilded without concern. Absolute power and greed lead to corruption and abuse. If I had $1 for every ad I get in the mail for credit advertisements, credit cards and mortgages I could pay off my debt. This is an old story.
Our trade deficit, We have let China off too easy for way to long. However, I am recently impressed with their open policy and the response to earthquake victims. They are an evolving country and an economic power that needs closer attention. Dispite our trade imbalance I would prefer this scenario than having to invade that country as we did in Iraq to supplant our view of denocracy on them. Seems like capitalism and the desire to be a world economic giant together with the US demand for Chinese made products that are affordable are doing very nice in their democractic conversion in the long run. A more affordable alternative. If we could only have Iraq produce more oil and make them trading partners with the US. Forget about seeing the light of democracy, I wonder if they can see the dollar?
On foriegn policy, we have much to do. America is too American Centric. Among the many nationalties that I deal with none display a sense of their country being the center of economic power and might as the US does. This despite many are very fierce nationalists. Our failure in foriegn policy mimics our own national failure in accepting race and gender in positions of importance. It is reflective of our nearsightedness even today in accepting work life balance. It is reflective in that we are failing to address the needs of the middle class and poor citizens. It is reflective that we the nation of democracy still have many tensions tied to nationality, race and gender. We do not at times practice what we already know. Diversity and the understanding of cultures and social classes dictate the appraoch we take to form strong allies from developing countries. Because of our shear size and might we bully our way through delicate issues. At times even when we feed the poor and help the sick we do the right things the wrong way. We fail to understand the dynamics of culture, race, religion and the fundamental priorities of people in foriehn countries. It has been said 911 occured becuase of poor intelligence in our country. Perhaps nothing speaks more to how centric we are than the admission of that statement. It's not like we didn't know who are enemy was, or that this was a new enemy. We just underestimated their potential and their will. Nothing new. This has happened again and again in history.
The real story of this election year is that many of our problems are tied together. We have a perfect storm of issues that need to be addressed. Let's try to tie these up. The war in Iraq has in part to do both with oil and terrorism. By shifting to alternative sources of eneragy of every kind and creating mandates to theis end we can reduce our consumption and involve our military less in the middle east, while at the same time assist in helping our economy to be more efficient and energy concious. By reducing our consumption of fossil fuels and conserving energy we will limit the amount of green house gases immited into our atmosphere and slow global warming. By limiting the war effort, reducing consumption of fossil fuels and alleviating green house gases and providing affordable fuel alternatives we begin to address economic issues and strengthen the dollar. This in turn will lead to ideas to continue to spur the economy and address social security, healthcare and other social and economic issues.
Yes, I know that it looks neat and simple. It will be anythng but that. But we have to have the vision to forge ahead. We need to stay focused. We need to be innovative and we need to put our next generation to work on planning out the future.
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