End of 6 months. Half-way mark. And I am a day ahead of schedule again at the end of June. I have noticed this happens when I travel. I miss a day when I am in transit and then make it a point to write a couple of posts the next day to catch up. Apparently, I haven't learned to count very well.
Since I am one post ahead, I would like to take this opportunity to seek some feedback. Do write in to tell me what you have liked and what you thought was off-key. You can post the good stuff on a comment here or send me an email to shivramapte at gmail dot com with the brickbats :-)
Also - it would be great if you could respond to the poll on the right hand side of this page; it would help to give me a feel for how many people visit daily, how many weekly and how many of you visit only when there is a reminder on facebook.
(If you are viewing this on your mobile - click on the link to the Web Version at the bottom of the page to see the poll).
Normal service will resume tomorrow.
Tuesday, June 30, 2015
Monday, June 29, 2015
Joie-de-vivre
A very close friend called a short while ago and we chatted for a few minutes. As always, it recharged my batteries, having spoken with him.
What is it about some people that causes an interaction with them leaving you refreshed and rejuvenated? Effervescent even.
I think it is one of two things. Either these people are really interested in you and are willing to have an open, honest conversation about you, or more likely, they are extremely enthusiastic about life.
Enthusiasm is contagious and it is a joy to meet people with Joie-de-vivre.
Here's wishing that you will go out there today and infect someone.
What is it about some people that causes an interaction with them leaving you refreshed and rejuvenated? Effervescent even.
I think it is one of two things. Either these people are really interested in you and are willing to have an open, honest conversation about you, or more likely, they are extremely enthusiastic about life.
Enthusiasm is contagious and it is a joy to meet people with Joie-de-vivre.
Here's wishing that you will go out there today and infect someone.
Sunday, June 28, 2015
Swiss multilinguals
Another of the many things that has impressed me about the Swiss is how many languages they are comfortable with. English is mandatory at Swiss schools. So is a third language - usually French or Italian. And most of them have a working knowledge of Dutch.
The Swiss are truly at the center of Europe then, not just geographically, but also commercially, and culturally, with all the languages they are adept at.
The Swiss are truly at the center of Europe then, not just geographically, but also commercially, and culturally, with all the languages they are adept at.
Swiss success
A friend wrote a comment on the post 'Swiss Fit' wondering how the Swiss make their money - how they got to be so rich. This question has been on my mind for a number of years and I have been reading up on this on and off. There appear to be three primary reasons for the rise to wealth.
1. Becoming a magnet for other people's money.
Swiss banks have been a safe haven for the wealthy across the world for storing large volumes of money. The Swiss took anonymity very seriously and this anonymity came at a price for the depositors. It is said that numbered accounts in Swiss Banks do not earn any interest; in fact there is a service charge levied on the depositors for the privilege of keeping their money in those accounts. Swiss banks do offer wealth management services, where they would be willing to invest your money for a service charge again.
According to this Wikipedia article, an estimated 28% of all funds that are held outside the country of origin, also known as 'offshore funds' are kept in Switzerland. Swiss Banks manage about 5.4 Trillion Francs (approx 5,400 Billion Euros). A large component of that money, say, proceeds from corrupt activities, or deposits of black money, is likely earning handsome returns for Swiss Banks while costing the depositors a service charge, especially when the depositor needs the source of those funds to be kept secret. It is not difficult to imagine that some of these depositors sometimes disappear without naming an heir.
Large income at the Swiss banks would then have a multiplier effect on the economy. They will pay higher wages to their employees who will in turn be willing to pay for quality goods and services, like Bally shoes and expensive produce and higher wages to hire better baby sitters and valets. Higher wages lead to a higher standard of living.
2. Not getting involved in other people's wars - well, not committed, anyway.
As a result of their neutrality, the Swiss came out of World War II unscathed. All their factories were intact and ready to manufacture goods and services that were required for the rebuilding of Europe after the war. Even during the War, Swiss factories were supplying both the Allies and the Axis powers with the machines of war.
Swiss exports of military equipment exceeded USD 595 Million in 2014, an increase of 22% over 2013, but down from US$ 700 Million in 2012 according to this article on swissinfo.ch.
Even though the Swiss army doesn't go to war, their military equipment certainly does.
3. The Swiss are enterprising.
Switzerland is one of the leading manufacturers and exporters of engineering goods like railway equipment, electrical equipment like switchgear, orthopedic equipment including prosthetics and of course watches.
Here is a paradox for you. The world's largest manufacturer of marine diesel engines is Sulzer, a Swiss company - headquartered in a country with no oceanic shoreline and no navigable rivers to get to the ocean. That's enterprise for you. (Incidentally, Mitsubishi is among the top 3 too. Just saying)
The Swiss have reacted pragmatically to economic crises. After the first oil crisis of 1973, the Swiss invested heavily in non-oil based power generation. This article states that 95% of the electricity generated in Switzerland comes from non-oil power plants; 59% from hydro-electric plants and 36 % from nuclear power plants. The Swiss have thus insulated their economy from shocks induced by fluctuations in oil prices.
Moral of the story? If you want to get rich, follow these 3 simple rules.
1. Do not get into fights
2. Be enterprising; you might want to sell a gun or two to the idiots doing the shooting, and
3. Offer to hold their money while they fight.
1. Becoming a magnet for other people's money.
Swiss banks have been a safe haven for the wealthy across the world for storing large volumes of money. The Swiss took anonymity very seriously and this anonymity came at a price for the depositors. It is said that numbered accounts in Swiss Banks do not earn any interest; in fact there is a service charge levied on the depositors for the privilege of keeping their money in those accounts. Swiss banks do offer wealth management services, where they would be willing to invest your money for a service charge again.
According to this Wikipedia article, an estimated 28% of all funds that are held outside the country of origin, also known as 'offshore funds' are kept in Switzerland. Swiss Banks manage about 5.4 Trillion Francs (approx 5,400 Billion Euros). A large component of that money, say, proceeds from corrupt activities, or deposits of black money, is likely earning handsome returns for Swiss Banks while costing the depositors a service charge, especially when the depositor needs the source of those funds to be kept secret. It is not difficult to imagine that some of these depositors sometimes disappear without naming an heir.
Large income at the Swiss banks would then have a multiplier effect on the economy. They will pay higher wages to their employees who will in turn be willing to pay for quality goods and services, like Bally shoes and expensive produce and higher wages to hire better baby sitters and valets. Higher wages lead to a higher standard of living.
2. Not getting involved in other people's wars - well, not committed, anyway.
As a result of their neutrality, the Swiss came out of World War II unscathed. All their factories were intact and ready to manufacture goods and services that were required for the rebuilding of Europe after the war. Even during the War, Swiss factories were supplying both the Allies and the Axis powers with the machines of war.
Swiss exports of military equipment exceeded USD 595 Million in 2014, an increase of 22% over 2013, but down from US$ 700 Million in 2012 according to this article on swissinfo.ch.
Even though the Swiss army doesn't go to war, their military equipment certainly does.
3. The Swiss are enterprising.
Switzerland is one of the leading manufacturers and exporters of engineering goods like railway equipment, electrical equipment like switchgear, orthopedic equipment including prosthetics and of course watches.
Here is a paradox for you. The world's largest manufacturer of marine diesel engines is Sulzer, a Swiss company - headquartered in a country with no oceanic shoreline and no navigable rivers to get to the ocean. That's enterprise for you. (Incidentally, Mitsubishi is among the top 3 too. Just saying)
The Swiss have reacted pragmatically to economic crises. After the first oil crisis of 1973, the Swiss invested heavily in non-oil based power generation. This article states that 95% of the electricity generated in Switzerland comes from non-oil power plants; 59% from hydro-electric plants and 36 % from nuclear power plants. The Swiss have thus insulated their economy from shocks induced by fluctuations in oil prices.
Moral of the story? If you want to get rich, follow these 3 simple rules.
1. Do not get into fights
2. Be enterprising; you might want to sell a gun or two to the idiots doing the shooting, and
3. Offer to hold their money while they fight.
Saturday, June 27, 2015
The queen and the whale
I flew on the 'Whale of the skies', the Airbus A380 on my way back from Frankfurt to Delhi and I have to grudgingly admit, that it is a better, quieter, more comfortable aircraft than the 747-8.
You cannot hear the engines on the upper decks of both of these aircraft, but on the 747 - there is a constant whooshing sound of the air slipping past the fuselage. At 900 kilometers per hour, that is a lot of air and it makes for quite a bit of noise. This white noise is possibly one of the reasons you cannot hear the engines. The A380, on the other hand is serenely, even spookily quiet. The sense of space is also hard to miss. On the 747, the upper deck is a narrow, single aisle affair, but the 380 is a true double-decker wide-body with twin aisles on both decks.
The washrooms too on the 380 are spacious, unlike the 'watch-what-you-do-with-your-arms-when-you-shut-the-door' contraptions more common at 35000 feet. If one aspired to join the mile-high club, the A380 is definitely the place to try.
I didn't think I would ever catch myself saying this, but I would much rather ride the whale than ride the queen.
You cannot hear the engines on the upper decks of both of these aircraft, but on the 747 - there is a constant whooshing sound of the air slipping past the fuselage. At 900 kilometers per hour, that is a lot of air and it makes for quite a bit of noise. This white noise is possibly one of the reasons you cannot hear the engines. The A380, on the other hand is serenely, even spookily quiet. The sense of space is also hard to miss. On the 747, the upper deck is a narrow, single aisle affair, but the 380 is a true double-decker wide-body with twin aisles on both decks.
The washrooms too on the 380 are spacious, unlike the 'watch-what-you-do-with-your-arms-when-you-shut-the-door' contraptions more common at 35000 feet. If one aspired to join the mile-high club, the A380 is definitely the place to try.
I didn't think I would ever catch myself saying this, but I would much rather ride the whale than ride the queen.
On board the Boeing 747-8i
I flew on Lufthansa's 747-8 from BLR to FRA earlier this week. It was a spanking new aircraft; inducted into commercial service in February this year. The paneling was brand new and even the washrooms had that new-car smell. The seats were the new design and the In-Flight Entertainment (IFE) system had the new user interface.
I have to admit, that I boarded the plane already sure that I was going to like it, but the Dash 8 did not disappoint. I was in seat 85A on the upper deck and the windows offered a great view of the new wing and the two GEnx engines on the left side with their trademark saw-tooth trailing edge. And these engines were quiet. It is true that you can barely hear them even at take off. And with the excellent Bose Noise Cancelling headphones, you could not hear them at all.
The new seats were awesome - ergonomics evolution has clearly been keeping pace with engineering. One of the things that really tickled me was how the IFE monitor is designed to swivel and slide with the seat so that you can always get a great viewing angle - no matter what your seat position. This plane is miles ahead of the Boeing 777 or the Airbus A330 or the A340 for cabin design and cabin comfort.
We pushed back from the gate about 10 minutes behind schedule but ze Captain announced on the PA system that we would arrive in Frankfurt 'with punctuality'. I mentioned to the cabin crew that I had taken a roundabout routing PNQ-BLR-FRA-ZRH just so that I could get to fly the Dash 8, and had them all cooing over the 8i. It appears that the crew, like me, were big fans of the 747 over the last couple of decades. One of them took the trouble to go down to First Class and get me a pair of pajamas so that I could enjoy the Dash 8 even while I slept. By the time we landed, word had gotten around that I had taken the crazy routing, and the captain came back to ask if I would like to see the flight deck. I did not know this was even possible after 9-11. In the cockpit, he explained how the Dash 8 is an evolution of the Dash 400 and how it is so much easier to fly. He asked me if I was flying the same aircraft back to India and when I said I was going to fly to Delhi, he said, "Ahh. But you should consider flying on zis aircraft. We would like to welcome you back on board next time you fly."
All in all, I was one happy camper. I would prefer the Dash 8 to every other aircraft bar one. But that is another post.
I have to admit, that I boarded the plane already sure that I was going to like it, but the Dash 8 did not disappoint. I was in seat 85A on the upper deck and the windows offered a great view of the new wing and the two GEnx engines on the left side with their trademark saw-tooth trailing edge. And these engines were quiet. It is true that you can barely hear them even at take off. And with the excellent Bose Noise Cancelling headphones, you could not hear them at all.
The new seats were awesome - ergonomics evolution has clearly been keeping pace with engineering. One of the things that really tickled me was how the IFE monitor is designed to swivel and slide with the seat so that you can always get a great viewing angle - no matter what your seat position. This plane is miles ahead of the Boeing 777 or the Airbus A330 or the A340 for cabin design and cabin comfort.
We pushed back from the gate about 10 minutes behind schedule but ze Captain announced on the PA system that we would arrive in Frankfurt 'with punctuality'. I mentioned to the cabin crew that I had taken a roundabout routing PNQ-BLR-FRA-ZRH just so that I could get to fly the Dash 8, and had them all cooing over the 8i. It appears that the crew, like me, were big fans of the 747 over the last couple of decades. One of them took the trouble to go down to First Class and get me a pair of pajamas so that I could enjoy the Dash 8 even while I slept. By the time we landed, word had gotten around that I had taken the crazy routing, and the captain came back to ask if I would like to see the flight deck. I did not know this was even possible after 9-11. In the cockpit, he explained how the Dash 8 is an evolution of the Dash 400 and how it is so much easier to fly. He asked me if I was flying the same aircraft back to India and when I said I was going to fly to Delhi, he said, "Ahh. But you should consider flying on zis aircraft. We would like to welcome you back on board next time you fly."
All in all, I was one happy camper. I would prefer the Dash 8 to every other aircraft bar one. But that is another post.
Thursday, June 25, 2015
Swiss fit
I have been in Switzerland for the last three days. The natural beauty of this place is striking, but we have long known that, thanks to a certain Mr. Yash Chopra.
What struck me this time was how fit everyone here is. Admittedly, people in Europe are generally more shapely than folks in the US and in India, but the Swiss seem to be at another level. And I might have figured out why.
I was chatting with a couple of Swiss folks over dinner yesterday and I asked them what they do on the weekends. In the summer, mountain biking and in the winter, skiing. Notice the involvement of mountains in both those activities. When I asked how far do they go on their mountain bikes - one of them shrugged and said, "About 40-50 km." Every weekend.
The Swiss take everything they do very seriously. When they sign up for a 10km run, they start training for it.
This ethos shows in the way they work too, and the way this country runs. Railway timetables are published with a least-count of 1 minute; not 5 minutes. You can make train connections that are 2 minutes apart. When I asked for the scheduled arrival time of the next train, should I miss my connection, it produced a blank look on the face of the girl at the ticket counter. "Why would you miss the connection?" she had the gall to ask. Needless to say, I made the connection.
One thing that all of this does not explain is how every person in every car in Zurich looks like they stepped out of the advert for that car. Right down to their picture perfect looks, their exceptionally well groomed hair and their stylish clothes.
I used to believe the ad agencies searched very carefully for the perfect image their models needed to portray of their prospective customer base. Now I know they carry their camera equipment to any random spot in Switzerland, set up the tripod and start shooting. The background is picturesque, the model perfect and every other car is a luxury brand. A half days worth of shooting, another half days worth of editing, and they can probably take the rushes to multiple clients in Germany and Italy.
What struck me this time was how fit everyone here is. Admittedly, people in Europe are generally more shapely than folks in the US and in India, but the Swiss seem to be at another level. And I might have figured out why.
I was chatting with a couple of Swiss folks over dinner yesterday and I asked them what they do on the weekends. In the summer, mountain biking and in the winter, skiing. Notice the involvement of mountains in both those activities. When I asked how far do they go on their mountain bikes - one of them shrugged and said, "About 40-50 km." Every weekend.
The Swiss take everything they do very seriously. When they sign up for a 10km run, they start training for it.
This ethos shows in the way they work too, and the way this country runs. Railway timetables are published with a least-count of 1 minute; not 5 minutes. You can make train connections that are 2 minutes apart. When I asked for the scheduled arrival time of the next train, should I miss my connection, it produced a blank look on the face of the girl at the ticket counter. "Why would you miss the connection?" she had the gall to ask. Needless to say, I made the connection.
One thing that all of this does not explain is how every person in every car in Zurich looks like they stepped out of the advert for that car. Right down to their picture perfect looks, their exceptionally well groomed hair and their stylish clothes.
I used to believe the ad agencies searched very carefully for the perfect image their models needed to portray of their prospective customer base. Now I know they carry their camera equipment to any random spot in Switzerland, set up the tripod and start shooting. The background is picturesque, the model perfect and every other car is a luxury brand. A half days worth of shooting, another half days worth of editing, and they can probably take the rushes to multiple clients in Germany and Italy.
Wednesday, June 24, 2015
On Leadership Part 1
I recently read '14' by Peter Clines, and a paragraph in the book has been food for thought about leadership.
Sometimes, everyone just knows who the leader is. There does not need to be a formal discussion, a vote, or a selection. There is just automatic, unanimous consensus.
Such a scenario probably unfolds more often in a crisis, but sometimes also in perfectly peaceful times.
What is it about these people that others just hand them the sceptre. Or is it more a function of the followers than the leaders? Because this sure as hell did not happen at B School.
Sometimes, everyone just knows who the leader is. There does not need to be a formal discussion, a vote, or a selection. There is just automatic, unanimous consensus.
Such a scenario probably unfolds more often in a crisis, but sometimes also in perfectly peaceful times.
What is it about these people that others just hand them the sceptre. Or is it more a function of the followers than the leaders? Because this sure as hell did not happen at B School.
Monday, June 22, 2015
Queen of the skies
I will be traveling again this week and after a long time I am actually looking forward to getting on a plane. I am taking the trouble of going from PNQ to BLR first, so that I can fly to FRA on the new Boeing 747-8i.
The 747 has always been known as the Queen of the skies and it ruled the airways for nearly 4 decades from the 1970s to the 2000s, at which time airlines had started to prefer the Boeing 777 and the Airbus A330 and A380.
But now, the legend is back; in its latest avatar - the 747-8i. It is the longest passenger jet liner in the world. Its wings hold a quarter million litres of jet fuel and its four General Electric GEnx engines each produce 66500 lbf of thrust making it the fastest commercial aircraft in the skies today. And yet it is the quietest aircraft to travel in. Reviewers have said that they had to concentrate to hear the engines even at take-off. Only the Concorde SST has been a more glamourous way to fly.
I am looking forward to this flight with the same eagerness with which I boarded my first 747 at age 12. I know I am gushing, but the 747 is an awesome piece of engineering. And I plan to write a review after the flight.
The 747 has always been known as the Queen of the skies and it ruled the airways for nearly 4 decades from the 1970s to the 2000s, at which time airlines had started to prefer the Boeing 777 and the Airbus A330 and A380.
But now, the legend is back; in its latest avatar - the 747-8i. It is the longest passenger jet liner in the world. Its wings hold a quarter million litres of jet fuel and its four General Electric GEnx engines each produce 66500 lbf of thrust making it the fastest commercial aircraft in the skies today. And yet it is the quietest aircraft to travel in. Reviewers have said that they had to concentrate to hear the engines even at take-off. Only the Concorde SST has been a more glamourous way to fly.
I am looking forward to this flight with the same eagerness with which I boarded my first 747 at age 12. I know I am gushing, but the 747 is an awesome piece of engineering. And I plan to write a review after the flight.
Sunday, June 21, 2015
Father's Day
I figured out today is father's day. It was Google that told me so - with their father's day doodle.
That's how kids work. But I am not complaining, for there is a flip side to this. They don't expect much of dad. As long as fathers fulfill their duty as the kiddie ATM, everything is good. Consider the questions they ask moms when they get home or need something. "Where is my whatchacallit? Where is my lunch? The teacher has asked us to bring this to school tomorrow. I need a new pair of shoes."
On the other hand, there is only one question they ask dad. "Where's mom?"
On exercising
Two of my friends are part of an avid cycling group. They cycle about 20 km every morning and a longer route every weekend and do two long trips every year.
I have tried suggesting meeting for an early breakfast a few times and I have come to realize that their schedule is built around their cycling regimen.
The key to this discipline is that they really really enjoy their cycling.
I know this is not rocket science, but clearly, enjoying what you do is a sure fire recipe for engendering discipline.
There are people who subscribe to a gym membership and do not go, and there are others who show up at the gym without heed to rain, sleet or shine. I am willing to bet that I can tell you which group enjoys their exercise.
I have tried suggesting meeting for an early breakfast a few times and I have come to realize that their schedule is built around their cycling regimen.
The key to this discipline is that they really really enjoy their cycling.
I know this is not rocket science, but clearly, enjoying what you do is a sure fire recipe for engendering discipline.
There are people who subscribe to a gym membership and do not go, and there are others who show up at the gym without heed to rain, sleet or shine. I am willing to bet that I can tell you which group enjoys their exercise.
Friday, June 19, 2015
When uniforms change
I had an interesting chat with a retired person who has lived and worked on multiple continents including Africa. He was narrating the story of his life in Zambia in the 80s and the fall of Zimbabwe to its current day.
After the ascension of Robert Mugabe to the 'throne', a Zimbabwean citizen working in Zambia rhetorically asked, "When do you think Zimbabwe will begin to slide?"
My friend jokingly answered, "When the policemen start wearing trousers instead of shorts."
I have been thinking about this - and there might be a correlation here - perhaps even a hint of causality. Bombay Police were once rated the second best police force in the world - only Scotland Yard was ranked higher. Back then policemen wore shorts, and if old Hindi movies are any indication of reality of the era, were generally quite fit.
Today, the police force is not quite as respected, and the movies of today portray the policewalla as a pot-bellied pan-chewing person leaning against a vehicle waiting for his next victim.
My friend says that his joke proved to be quite [providential] and the police force of Zimbabwe changed their uniforms from shorts to trousers in the 1980s. Ever since, that police force has been seen as growing more incompetent and more corrupt.
Interesting thought, that a lead indicator of the beginning of the end is when the even the 'sipahi' becomes a 'sahib'. Too many chiefs and no Indians.
After the ascension of Robert Mugabe to the 'throne', a Zimbabwean citizen working in Zambia rhetorically asked, "When do you think Zimbabwe will begin to slide?"
My friend jokingly answered, "When the policemen start wearing trousers instead of shorts."
I have been thinking about this - and there might be a correlation here - perhaps even a hint of causality. Bombay Police were once rated the second best police force in the world - only Scotland Yard was ranked higher. Back then policemen wore shorts, and if old Hindi movies are any indication of reality of the era, were generally quite fit.
Today, the police force is not quite as respected, and the movies of today portray the policewalla as a pot-bellied pan-chewing person leaning against a vehicle waiting for his next victim.
My friend says that his joke proved to be quite [providential] and the police force of Zimbabwe changed their uniforms from shorts to trousers in the 1980s. Ever since, that police force has been seen as growing more incompetent and more corrupt.
Interesting thought, that a lead indicator of the beginning of the end is when the even the 'sipahi' becomes a 'sahib'. Too many chiefs and no Indians.
Thursday, June 18, 2015
On commuting
I use my commuting time to catch up on my reading - with an audiobook playing on the car stereo.
But as I drive, I have seen people in their cars or company buses with their eyes glassed over, surrendered to reality.
I was at a client office in Mumbai recently and we got chatting about the length of our commutes.
His commute was about 2 hours each way and he seemed to have accepted that as a sort of fait accompli. Thinking aloud I said that those 4 hours every day constituted 1/6th of his life; and he gave me a sudden look as the realization struck him.
"That is like sitting in traffic for 2 whole months every year," he said, "Time I could be spending with my kids. That is the time I have been unable to take on vacations. I don't have to do this." The way he presented the Math, it does indeed seem like a waste of life.
I am convinced there is a gold-mine of a business waiting to happen, if we can find a way to let people use their commuting time in some way they find worthwhile. Until then, you might want to check out some audiobooks.
But as I drive, I have seen people in their cars or company buses with their eyes glassed over, surrendered to reality.
I was at a client office in Mumbai recently and we got chatting about the length of our commutes.
His commute was about 2 hours each way and he seemed to have accepted that as a sort of fait accompli. Thinking aloud I said that those 4 hours every day constituted 1/6th of his life; and he gave me a sudden look as the realization struck him.
"That is like sitting in traffic for 2 whole months every year," he said, "Time I could be spending with my kids. That is the time I have been unable to take on vacations. I don't have to do this." The way he presented the Math, it does indeed seem like a waste of life.
I am convinced there is a gold-mine of a business waiting to happen, if we can find a way to let people use their commuting time in some way they find worthwhile. Until then, you might want to check out some audiobooks.
Wednesday, June 17, 2015
Passengers seated in rows 1 through 8 may board the aircraft now.
I took a flight back to Pune last night. It was a small ATR aircraft parked out on the apron and we had to take a bus from the terminal to the plane. The airline announced they would board by seat numbers to avoid congestion inside the aircraft. Since the ATR has only one passenger door at the tail end, they requested passengers seated in row numbers 1 to 8 to board first.
I was seated in 17F, so I stood aside until the passengers in rows 1 - 8 had gone through. The gate agent scanned my boarding card and after the CISF agent glanced at my boarding card and baggage tag, I walked to the bus.
And here's the thing. All the passengers were on the same bus. More amusing was the fact that people in row numbers 1 through 8 had been pushed to the rear of the bus by passengers in rows 9 to 18 who came in after them.
You can see what happened next. When we got to the aircraft, passengers in rows 9 to 16 got off the bus first and boarded the aircraft. There was the usual melee with the requisite blocked aisle as passengers stowed their cabin baggage and those behind them tried to push past.
I guess training procedure for the gate agent did not cover LIFO and FIFO.
I was seated in 17F, so I stood aside until the passengers in rows 1 - 8 had gone through. The gate agent scanned my boarding card and after the CISF agent glanced at my boarding card and baggage tag, I walked to the bus.
And here's the thing. All the passengers were on the same bus. More amusing was the fact that people in row numbers 1 through 8 had been pushed to the rear of the bus by passengers in rows 9 to 18 who came in after them.
You can see what happened next. When we got to the aircraft, passengers in rows 9 to 16 got off the bus first and boarded the aircraft. There was the usual melee with the requisite blocked aisle as passengers stowed their cabin baggage and those behind them tried to push past.
I guess training procedure for the gate agent did not cover LIFO and FIFO.
Tuesday, June 16, 2015
A platform for advertising
Soap Operas on TV get their name from the fact that P&G first mooted and promoted the idea of long running, continuing episodes in radio and TV series that would hook listeners and viewers into coming back to follow the story. P&G succeeded in building a platform that gathered an almost captive audience who could be subjected to advertising on the latest hair care, oral care, fabric care, personal care, baby care and women's health products. P&G started with a radio sop opera in the 1930s and swiftly moved to television when their market research told them that audiences were moving to TV. In 2010, they pulled the plug on the last P&G sponsored show, 'As the world turns' and I expect they are now sponsoring YouTube channels as the audience has shifted again.
Here in India, the soap opera seems to be evolving differently though. From the old Hum Log and Buniyaad, which ostensibly had a story line that the audience found compelling ans riveting, the latest soaps seems to be a little too unabashed in playing their role as platforms to serve advertising on. The number of seconds wasted in shots panning the shocked faces of actors on opposing sides of the family drama are growing into minutes.Even die-hard fans of shows are beginning to complain that not much seems to happen in each 30 minute episode.
Producers who are wondering why TRPs are dropping on once popular shows, could learn a thing or two from Bill Clinton's presidential campaign. "It's the story, stupid."
Here in India, the soap opera seems to be evolving differently though. From the old Hum Log and Buniyaad, which ostensibly had a story line that the audience found compelling ans riveting, the latest soaps seems to be a little too unabashed in playing their role as platforms to serve advertising on. The number of seconds wasted in shots panning the shocked faces of actors on opposing sides of the family drama are growing into minutes.Even die-hard fans of shows are beginning to complain that not much seems to happen in each 30 minute episode.
Producers who are wondering why TRPs are dropping on once popular shows, could learn a thing or two from Bill Clinton's presidential campaign. "It's the story, stupid."
Monday, June 15, 2015
A tale of two Alans
The author of Predator Nation, Charles Ferguson has been critical of Alan Greenspan, who seemed to have a penchant for bailing out the financial markets by lowering interest rates during his years as chairman of the Fed. He did this multiple times; after the stock market crash of 1987, after the Savings and Loan crisis of 1987-95, after the first gulf war of 1990-91, after the Mexican crisis 1994, after the Asian crisis in 1997, after the LTCM bankruptcy, after the internet bubble in 2000 and after 9-11 2001.
His leaning to increase money supply to prop up the markets came to be called the Greenspan Put.
Essentially, he was being generous to one set of people as long as someone else was going to bear the burden of the loss.
I happened to take a break from reading Predator Nation by Charles Ferguson to watch a sit-com on TV. The parallel between the two Alans were hard to miss, for the Alan on the sit-com, also had a habit of being generous to a certain set of people with money that belonged to his mother or his brother. Cosmo Kramer comes to mind too.
Moral Hazards, it appears, are more common than a certain Alan would have us believe.
His leaning to increase money supply to prop up the markets came to be called the Greenspan Put.
Essentially, he was being generous to one set of people as long as someone else was going to bear the burden of the loss.
I happened to take a break from reading Predator Nation by Charles Ferguson to watch a sit-com on TV. The parallel between the two Alans were hard to miss, for the Alan on the sit-com, also had a habit of being generous to a certain set of people with money that belonged to his mother or his brother. Cosmo Kramer comes to mind too.
Moral Hazards, it appears, are more common than a certain Alan would have us believe.
Sunday, June 14, 2015
Happiness and responsibility
Here is a paradox.
With great power comes great responsibility.
Wielding power seems to diminish happiness.
But happiness only comes with having to shoulder responsibility.
I have written some days ago, about how a fully paid holiday at the best resort in the world will start to wear and we will yearn for something meaningful to do. 'Meaningful' is a strange quality, made in equal parts by responsibility, a sense of achievement and a sense that the activity is worth doing, that it benefits someone or something.
Presuming that we can find a cause worth doing and strive to be good at doing the job, without a sense of responsibility happiness is likely to elude us.
The key then appears to be able to do a good job without striving for the position of power that could follow.
With great power comes great responsibility.
Wielding power seems to diminish happiness.
But happiness only comes with having to shoulder responsibility.
I have written some days ago, about how a fully paid holiday at the best resort in the world will start to wear and we will yearn for something meaningful to do. 'Meaningful' is a strange quality, made in equal parts by responsibility, a sense of achievement and a sense that the activity is worth doing, that it benefits someone or something.
Presuming that we can find a cause worth doing and strive to be good at doing the job, without a sense of responsibility happiness is likely to elude us.
The key then appears to be able to do a good job without striving for the position of power that could follow.
Saturday, June 13, 2015
Being powerful or being happy
I had another epiphany this morning.
People who work very hard to become and remain powerful do not seem to be very happy. Retaining power is stressful.
Consider pictures of CEOs and captains of industry that we see on TV or in the press. They all seem very serious.
The one exception that comes to mind is Richard Branson. He seems to be having a ball all the time. But then, I suspect he is not playing the game for power. He is playing to have fun.
People who work very hard to become and remain powerful do not seem to be very happy. Retaining power is stressful.
Consider pictures of CEOs and captains of industry that we see on TV or in the press. They all seem very serious.
The one exception that comes to mind is Richard Branson. He seems to be having a ball all the time. But then, I suspect he is not playing the game for power. He is playing to have fun.
Friday, June 12, 2015
Respecting the law and fearing the law
Singapore's legal-judicial system is said to be one of the most efficient in the world. Justice is delivered rapidly and fairly, and some might argue, stringently. Leniency is not to be taken for granted and penalties for violations are severe and therefore rather strong deterrents.
This lack of leniency might be precisely the reason why Singapore is one of the safest and most law abiding countries in the world. Crime rates of any category are among the lowest anywhere.
Contrast this situation with a country like India where, not only are conviction rates suspiciously low, but the penalties imposed are price indexed to 1947. An actor was convicted a couple of years ago under the Arms Act for being in possession of an unlicensed weapon, an AK47 assault rifle, no less, and he was fined Rs 25000 for the deed. Another actor was convicted for Driving Under the Influence of Alcohol (DUI) but the sentence was suspended a couple of days later.
Brings us to the question: Can we as a society really respect the law unless we learn to fear it?
This lack of leniency might be precisely the reason why Singapore is one of the safest and most law abiding countries in the world. Crime rates of any category are among the lowest anywhere.
Contrast this situation with a country like India where, not only are conviction rates suspiciously low, but the penalties imposed are price indexed to 1947. An actor was convicted a couple of years ago under the Arms Act for being in possession of an unlicensed weapon, an AK47 assault rifle, no less, and he was fined Rs 25000 for the deed. Another actor was convicted for Driving Under the Influence of Alcohol (DUI) but the sentence was suspended a couple of days later.
Brings us to the question: Can we as a society really respect the law unless we learn to fear it?
Thursday, June 11, 2015
14
I started reading 14 today.
The story grabbed me by the scruff of the neck and refused to let go. I downloaded the audio book yesterday and started listening in the car this morning as I left for work. I backed out of the garage and my wife was wondering why I was sitting in the car staring at the dashboard for almost three minutes before I got out to close the gate. I do not remember driving to work. I do remember parking outside my office and sitting in the car until the security guard came over to ask if I needed any assistance. I do not want to work today. It has taken a mammoth effort of will to break away from the book to write this post this morning.
The last time I felt like this about a book was when I first chanced upon Enid Blyton's Mystery series in primary school. I remember wishing the world would just leave me alone until I finished the book. I did not want my mother to ask me if I wanted milk or lunch. I remember wishing my friends would stop bothering me repeatedly asking if I wanted to come out to play or whatever it was that they were jabbering about.
Now if you will excuse me, I am going to shut the door to my cabin and hope everyone thinks I am not to be disturbed.
The story grabbed me by the scruff of the neck and refused to let go. I downloaded the audio book yesterday and started listening in the car this morning as I left for work. I backed out of the garage and my wife was wondering why I was sitting in the car staring at the dashboard for almost three minutes before I got out to close the gate. I do not remember driving to work. I do remember parking outside my office and sitting in the car until the security guard came over to ask if I needed any assistance. I do not want to work today. It has taken a mammoth effort of will to break away from the book to write this post this morning.
The last time I felt like this about a book was when I first chanced upon Enid Blyton's Mystery series in primary school. I remember wishing the world would just leave me alone until I finished the book. I did not want my mother to ask me if I wanted milk or lunch. I remember wishing my friends would stop bothering me repeatedly asking if I wanted to come out to play or whatever it was that they were jabbering about.
Now if you will excuse me, I am going to shut the door to my cabin and hope everyone thinks I am not to be disturbed.
Wednesday, June 10, 2015
Consent vs Informed consent
I was chatting with someone a couple of days ago, about how investment banks actively induced home mortgage sellers to actively push loans to people who could not afford them at high interest rates during the financial bubble of the 2000s.
He came back with an interesting argument that he did not have an issue with what was done as long as it was done between consenting parties. If an adult gave his or her consent and signed on the dotted line, then that person was liable for what followed. The people who bought these loans were also greedy - buying homes much bigger than they knew they could afford.
I do wonder however, if all the fund managers who were investing retirement savings of senior citizens understood the complexity of the derivatives they were buying. This is not very different from the scenes in the old Hindi movies of the 60s and 70s where the zamindar obtained the thumbprint of the illiterate farmer on a stamp paper and the farmer only figured out later that he had lost all he had.
I have been wondering if the law needs to make a distinction between consent and informed consent.
He came back with an interesting argument that he did not have an issue with what was done as long as it was done between consenting parties. If an adult gave his or her consent and signed on the dotted line, then that person was liable for what followed. The people who bought these loans were also greedy - buying homes much bigger than they knew they could afford.
I do wonder however, if all the fund managers who were investing retirement savings of senior citizens understood the complexity of the derivatives they were buying. This is not very different from the scenes in the old Hindi movies of the 60s and 70s where the zamindar obtained the thumbprint of the illiterate farmer on a stamp paper and the farmer only figured out later that he had lost all he had.
I have been wondering if the law needs to make a distinction between consent and informed consent.
Tuesday, June 9, 2015
It's raining personal loans again
Every day, my inbox is inundated with junk mail telling me that I have won GBP 500,000 in the Coke sweepstakes, or that there is a Russian girl looking for real love, or that I could add inches or staying power, or that a Nigerian minister has undeclared millions sitting in some account and I could easily claim 20% of this booty.
While the last has been tempting; after all, who wouldn't want a few million dollars if all it involves is paying a few thousand dollars to facilitate the transaction and a trip to Nigeria to claim the money; I have more or less learned to ignore all of these messages.
Harder to ignore has been the recent spate of messages offering instant approval for unsecured personal loans for up to Rs 15 lakhs. What makes these hard to ignore is that they come from reputed financial corporations like Bajaj Fin and HDFC Bank.
I have always thought of HDFC as a conservative bank, one that was the most careful with their personal loans portfolio when others were going crazy doling out money in the heady days between 2005 and 2007. A number of those banks have had to take massive write downs on those portfolios when the music stopped in 2008.
I find it worrisome that someone seems to have found a place to plug-in the juke box again. This article in the Times of India on 29 April announced that HDFC bank will approve personal loans in 1 minute based on algorithms developed by the company. The article quotes their head of unsecured loans, Arvind Kapil as saying, "This is the first time that such lending will be possible without any bank official eyeballing the application form."
Apparently, 1 minute was way too long to approve a personal loan, for an article in the Business Standard yesterday says that they have launched a process to disburse personal loans in 10 seconds.
Isn't this how the financial crisis of 2008 began?
While the last has been tempting; after all, who wouldn't want a few million dollars if all it involves is paying a few thousand dollars to facilitate the transaction and a trip to Nigeria to claim the money; I have more or less learned to ignore all of these messages.
Harder to ignore has been the recent spate of messages offering instant approval for unsecured personal loans for up to Rs 15 lakhs. What makes these hard to ignore is that they come from reputed financial corporations like Bajaj Fin and HDFC Bank.
I have always thought of HDFC as a conservative bank, one that was the most careful with their personal loans portfolio when others were going crazy doling out money in the heady days between 2005 and 2007. A number of those banks have had to take massive write downs on those portfolios when the music stopped in 2008.
I find it worrisome that someone seems to have found a place to plug-in the juke box again. This article in the Times of India on 29 April announced that HDFC bank will approve personal loans in 1 minute based on algorithms developed by the company. The article quotes their head of unsecured loans, Arvind Kapil as saying, "This is the first time that such lending will be possible without any bank official eyeballing the application form."
Apparently, 1 minute was way too long to approve a personal loan, for an article in the Business Standard yesterday says that they have launched a process to disburse personal loans in 10 seconds.
Isn't this how the financial crisis of 2008 began?
Monday, June 8, 2015
Entitlement
One of my students narrated an incident of how he was trying to obtain some certificate at his government run engineering college just before he graduated. He had filled out the requisite form and waited the requisite time before showing up at the prescribed window to pick up his certificate.
The clerk behind the counter displayed absolute apathy towards this persons need and urgency. On the first visit, the clerk had told him without even looking up, that it was not ready yet and to check back a few days later. On the second visit, the student requested the clerk to at least check the 'out-box' where he could see stacks of similar certificates but was sent off again. On the third visit, the student had no recourse but to suggest that he would have to file an official complaint. At this point, the clerk laughed and give him some version of, 'try what you will'.
This clerk was sure that nothing would put his job at risk. This is probably the single biggest malaise that inflicts government departments. A number of government-job applicants vie for those jobs precisely because it is one of the rare places where one has authority without responsibility. To make matters worse, they are entitled to the next promotion after three or five years.
I have often wondered, if the sense of entitlement is higher amongst people who did not have to fight as hard for the job. I am tempted to believe that this is true when nepotism is at play. A person acquiring a job because an uncle pulled strings to get him there is likely to be a little more confident about the stickiness of his position and therefore less likely to worry about delivering performance. I wonder if affirmative action in the US has caused a similar fallout.
Sunday, June 7, 2015
The issue with affirmative action
They say that the path to hell is paved with good intentions, and the execution of affirmative action in our country perhaps leaves a lot to be desired.
Yesterday, I presented a case for affirmative action, and I am quite certain, that I have likely upset a few readers.
Why are so many people so vocal against affirmative action? I suspect that this is because the implementation of affirmative action has left a lot to be desired. This imperfect implementation, in turn, could be ascribed to the idea being implemented before the technology was in place to implement it well.
Consider a parallel in subsidies that the government tries to provide to the underprivileged. LPG has been sold in India at subsidized prices at a hug cost to the exchequer until recently. The government had no mechanism to ensure that the subsidy reached only the deserving and therefore had to offer the same price even to those who did not need it. Sure, they tried a different tack with kerosene, by adding a blue dye to the subsidized kerosene in the Public Distribution System. But there did not exist an effective enforcement mechanism to ensure that the blue kerosene did not find its way to the open market, thereby making the middle men richer. You get the picture.
Because this same issue has plagued the implementation of any affirmative action, abuse and inefficiency become pervasive.
People learn to use the system for personal profit and this wealth then enables them to lobby hard to keep the system in place, intact, such that they can continue to profit from it.
This was perhaps also true of unions, where the original intention was to protect labour, pretty soon the system was used to benefit the union leaders.
There is however hope. With ever cheaper computers and storage, we can now direct any subsidies with pinpoint accuracy. The current governments initiative to channel LPG subsidies directly to the Aadhar linked bank accounts of the underprivileged is a case in point. Surely, the system will take some time to mature, but just as surely, the middle men will be taken out of the loop, and we can be equally sure that they wont go down without a fight.
This brings me to the other major issue with any affirmative action. Entitlement. More on that tomorrow.
Yesterday, I presented a case for affirmative action, and I am quite certain, that I have likely upset a few readers.
Why are so many people so vocal against affirmative action? I suspect that this is because the implementation of affirmative action has left a lot to be desired. This imperfect implementation, in turn, could be ascribed to the idea being implemented before the technology was in place to implement it well.
Consider a parallel in subsidies that the government tries to provide to the underprivileged. LPG has been sold in India at subsidized prices at a hug cost to the exchequer until recently. The government had no mechanism to ensure that the subsidy reached only the deserving and therefore had to offer the same price even to those who did not need it. Sure, they tried a different tack with kerosene, by adding a blue dye to the subsidized kerosene in the Public Distribution System. But there did not exist an effective enforcement mechanism to ensure that the blue kerosene did not find its way to the open market, thereby making the middle men richer. You get the picture.
Because this same issue has plagued the implementation of any affirmative action, abuse and inefficiency become pervasive.
People learn to use the system for personal profit and this wealth then enables them to lobby hard to keep the system in place, intact, such that they can continue to profit from it.
This was perhaps also true of unions, where the original intention was to protect labour, pretty soon the system was used to benefit the union leaders.
There is however hope. With ever cheaper computers and storage, we can now direct any subsidies with pinpoint accuracy. The current governments initiative to channel LPG subsidies directly to the Aadhar linked bank accounts of the underprivileged is a case in point. Surely, the system will take some time to mature, but just as surely, the middle men will be taken out of the loop, and we can be equally sure that they wont go down without a fight.
This brings me to the other major issue with any affirmative action. Entitlement. More on that tomorrow.
Saturday, June 6, 2015
The case for affirmative action
At the outset, I would like to state that I have nothing to gain from any affirmative action policies, whether in education or in employment. I also need to state here that until recently, I have been a strong and vocal advocate against affirmative action.
Recently however, I am beginning to wonder.
Consider a situation where two equally intelligent, equally hard-working candidates are vying for one seat in a prestigious engineering college in the country. One of them studied at an excellent school, say Bombay Scottish in Mumbai or DPS R K Puram in Delhi. By virtue of being born in the most economically advantaged places in the country, this person has had access to better teachers, better coaching classes and an ecosystem conducive to furthering education. The other candidate, grew up in a tribal region in say, Chattisgarh, and had to walk 4 km everyday to get to school. A few years later, this person had to move to a nearby town for high school and stayed at a relatives place if he or she were fortunate or at a dharamshala or government run hostel otherwise.
The teachers and facilities in the village or in this small town are unlikely to have been of the same calibre as the teachers and facilities in Mumbai or Delhi. The number of people with access to a better urban life, that are willing to give this up, to teach in rural Chattisgarh, is likely to be small indeed.
For a given level of intelligence and hard work, the rural child has to work against a disadvantage that is not of his or her own making, nor something that he or she has control over. The urban child, with access to better facilities, not least of all, the internet, and access to people of the world like successful parents and their parents' equally successful and ambitious friends, is likely to do a little better in the examinations. While this last might be arguable for subjects like Mathematics and Physics, the difference in exam performance is going to be all but assured in subjects like literature or social sciences where, having access to different points of view will likely cause a richer essay to be produced.
To take this argument a little further, consider these people now vying for a seat in a prestigious Business School where a Group Discussion or Personal Interaction is part of the admissions process. It is not a stretch to imagine that an urban candidate will come across with more flair and perhaps better fit-and-finish than a rural candidate and therefore make a more favourable impression upon the admissions panel.
The rural person will never be able to compete with an urban counterpart of equal intelligence and work ethic. The same argument could be extended with varying degree, for the difference in opportunity, accorded by circumstance to two urban children, one growing up in an affluent home in say South Mumbai or in Lutyen's Delhi and the other in the slums of the same city. Are those that were not born to privilege, to be condemned to their lot with no opportunity for rising above?
This is where affirmative action comes in; to try and provide some modicum of equal opportunity.
Recently however, I am beginning to wonder.
Consider a situation where two equally intelligent, equally hard-working candidates are vying for one seat in a prestigious engineering college in the country. One of them studied at an excellent school, say Bombay Scottish in Mumbai or DPS R K Puram in Delhi. By virtue of being born in the most economically advantaged places in the country, this person has had access to better teachers, better coaching classes and an ecosystem conducive to furthering education. The other candidate, grew up in a tribal region in say, Chattisgarh, and had to walk 4 km everyday to get to school. A few years later, this person had to move to a nearby town for high school and stayed at a relatives place if he or she were fortunate or at a dharamshala or government run hostel otherwise.
The teachers and facilities in the village or in this small town are unlikely to have been of the same calibre as the teachers and facilities in Mumbai or Delhi. The number of people with access to a better urban life, that are willing to give this up, to teach in rural Chattisgarh, is likely to be small indeed.
For a given level of intelligence and hard work, the rural child has to work against a disadvantage that is not of his or her own making, nor something that he or she has control over. The urban child, with access to better facilities, not least of all, the internet, and access to people of the world like successful parents and their parents' equally successful and ambitious friends, is likely to do a little better in the examinations. While this last might be arguable for subjects like Mathematics and Physics, the difference in exam performance is going to be all but assured in subjects like literature or social sciences where, having access to different points of view will likely cause a richer essay to be produced.
To take this argument a little further, consider these people now vying for a seat in a prestigious Business School where a Group Discussion or Personal Interaction is part of the admissions process. It is not a stretch to imagine that an urban candidate will come across with more flair and perhaps better fit-and-finish than a rural candidate and therefore make a more favourable impression upon the admissions panel.
The rural person will never be able to compete with an urban counterpart of equal intelligence and work ethic. The same argument could be extended with varying degree, for the difference in opportunity, accorded by circumstance to two urban children, one growing up in an affluent home in say South Mumbai or in Lutyen's Delhi and the other in the slums of the same city. Are those that were not born to privilege, to be condemned to their lot with no opportunity for rising above?
This is where affirmative action comes in; to try and provide some modicum of equal opportunity.
Friday, June 5, 2015
On regulation
As I read 'Predator Nation' by Charles Ferguson, a dilemma has been increasingly bothering my laissez faire self.
It does appear that left unchecked, human greed can run wild. We can perhaps see examples of this in India too, if some of the estimates of politicians' wealth are to be believed.
I am aware that the next few paragraphs are old news to most people who have had even a passing interest in the financial crisis of 2008, but I am trying to build the premise for my dilemma, so please bear with me.
The US financial industry lobbied very hard during the Clinton and George H W Bush years to first remove any regulation on the financial markets and then to actively prevent regulation of OTC Derivative products.
Brooksley Born, chairperson of the Commodities Futures Trading Commission had suggested that complete deregulation of the derivatives market could lead to a future crisis. Larry Summers and Alan Greenspan used all their might to squash Born's initiative. She resigned shortly after.
The Glass-Steagall Act of 1933 had enforced the separation of commercial and investment banking in the wake of the Great Depression. Larry Summers proceeded to push for the passing of the Graham Leach Bliley Act in 1999 which in effect undid the Glass Steagall and allowed Investment Banks to buy commercial banks and home mortgage issuers. That this act was passed after the merger of Citibank and Travelers Group, in violation of the Bank Holding Company Act, caused some to nickname it the Citibank Relief Act.
The rest as they say is history. Investment Banks started investing in Mortgage issuers primarily to ensure that these companies would provide a steady stream of new mortgages to the big banks to bundle and sell as CDOs.
This is where things started going really awry. Since the incentive structures at the investment banks were based purely on short term production, i.e. sales volumes with no penalty for poor future performance, i.e. no clawbacks on commissions paid out, the investment bank traders worked very hard to ensure that they had more product to sell. When the market ran out of credit worthy people to sell home loans to, they started selling home loans to the slightly un-creditworthy customers and then to anybody on the basis of stated income rather than proven income.
Predator Nation alleges that these were not acts of stupidity or naivete, but that people knew exactly where this was going. However, with incentives based on current performance with no thought for future performance, this was economically, the rational thing to do.
I have always seen regulation as a way to protect the current incumbents of any system from new competition. Think Licence Raj that protected the manufacturers of bad products from new entrants. However, we need to perhaps accord a little more respect to the original intention of any regulation; which is to protect the have nots from exploitation by the haves. Clearly, along the way, something is lost in execution as the haves always manage to exploit the system for their own benefit. I have heard a saying among the business community in India; "Jitne kaayde, utne phaayde" (The more the regulation, the more the profit).
My dilemma then, which I am struggling to reconcile; is regulation really the only way to ensure some semblance of equalization of opportunity, to control runaway greed?
It does appear that left unchecked, human greed can run wild. We can perhaps see examples of this in India too, if some of the estimates of politicians' wealth are to be believed.
I am aware that the next few paragraphs are old news to most people who have had even a passing interest in the financial crisis of 2008, but I am trying to build the premise for my dilemma, so please bear with me.
The US financial industry lobbied very hard during the Clinton and George H W Bush years to first remove any regulation on the financial markets and then to actively prevent regulation of OTC Derivative products.
Brooksley Born, chairperson of the Commodities Futures Trading Commission had suggested that complete deregulation of the derivatives market could lead to a future crisis. Larry Summers and Alan Greenspan used all their might to squash Born's initiative. She resigned shortly after.
The Glass-Steagall Act of 1933 had enforced the separation of commercial and investment banking in the wake of the Great Depression. Larry Summers proceeded to push for the passing of the Graham Leach Bliley Act in 1999 which in effect undid the Glass Steagall and allowed Investment Banks to buy commercial banks and home mortgage issuers. That this act was passed after the merger of Citibank and Travelers Group, in violation of the Bank Holding Company Act, caused some to nickname it the Citibank Relief Act.
The rest as they say is history. Investment Banks started investing in Mortgage issuers primarily to ensure that these companies would provide a steady stream of new mortgages to the big banks to bundle and sell as CDOs.
This is where things started going really awry. Since the incentive structures at the investment banks were based purely on short term production, i.e. sales volumes with no penalty for poor future performance, i.e. no clawbacks on commissions paid out, the investment bank traders worked very hard to ensure that they had more product to sell. When the market ran out of credit worthy people to sell home loans to, they started selling home loans to the slightly un-creditworthy customers and then to anybody on the basis of stated income rather than proven income.
Predator Nation alleges that these were not acts of stupidity or naivete, but that people knew exactly where this was going. However, with incentives based on current performance with no thought for future performance, this was economically, the rational thing to do.
I have always seen regulation as a way to protect the current incumbents of any system from new competition. Think Licence Raj that protected the manufacturers of bad products from new entrants. However, we need to perhaps accord a little more respect to the original intention of any regulation; which is to protect the have nots from exploitation by the haves. Clearly, along the way, something is lost in execution as the haves always manage to exploit the system for their own benefit. I have heard a saying among the business community in India; "Jitne kaayde, utne phaayde" (The more the regulation, the more the profit).
My dilemma then, which I am struggling to reconcile; is regulation really the only way to ensure some semblance of equalization of opportunity, to control runaway greed?
Thursday, June 4, 2015
On punctuality 1
I have noticed that there are essentially three types of people when it comes to punctuality.
1. Those who think it is important to be punctual and will make known their displeasure when others are not.
2. Those who don't really give a hoot and show up pretty much when they can.
3. Those who wish to be punctual, and get stressed over this but do not seem to manage very well.
This third group, often, is not being callous. They do however miscalculate rather often. I have come to the conclusion, after listening to a number of excuses that these people generally underestimate or ignore completely, the time required to do the small things that have large variability in terms of time required.
If they need to get to a meeting at 10 am, for example, they plan to leave their home at T minus average travel time. And on a certain day, they have promised to run an errand on their way to work. They seem to think that the incremental time required to take the detour, to park their vehicle, finish the work, walk back to their vehicle and then get to the meeting will be zero. At least they do not appear to account for it when they leave home. Then there is the extra time taken by bad traffic that day. The fact that travel time on any given day can be vastly different from the average seems to catch them off guard rather often. The time required to find parking at the destination is non zero too.
I have come to the conclusion that there is only one way to be consistently punctual. It is not theoretically possible to plan to arrive at time T and to make it every time. I have found that life far more peaceful if I can buffer my travel time and reach the client office a few minutes before time and wait at reception for a few minutes before the scheduled meeting.
The only way to be punctual is to plan on arriving ahead of time.
1. Those who think it is important to be punctual and will make known their displeasure when others are not.
2. Those who don't really give a hoot and show up pretty much when they can.
3. Those who wish to be punctual, and get stressed over this but do not seem to manage very well.
This third group, often, is not being callous. They do however miscalculate rather often. I have come to the conclusion, after listening to a number of excuses that these people generally underestimate or ignore completely, the time required to do the small things that have large variability in terms of time required.
If they need to get to a meeting at 10 am, for example, they plan to leave their home at T minus average travel time. And on a certain day, they have promised to run an errand on their way to work. They seem to think that the incremental time required to take the detour, to park their vehicle, finish the work, walk back to their vehicle and then get to the meeting will be zero. At least they do not appear to account for it when they leave home. Then there is the extra time taken by bad traffic that day. The fact that travel time on any given day can be vastly different from the average seems to catch them off guard rather often. The time required to find parking at the destination is non zero too.
I have come to the conclusion that there is only one way to be consistently punctual. It is not theoretically possible to plan to arrive at time T and to make it every time. I have found that life far more peaceful if I can buffer my travel time and reach the client office a few minutes before time and wait at reception for a few minutes before the scheduled meeting.
The only way to be punctual is to plan on arriving ahead of time.
Tuesday, June 2, 2015
Canopy Economy
I am in the middle of reading 'Predator Nation' by Charles Ferguson, author of the academy award winning documentary 'Inside Job'. He has used a phrase, 'The Canopy Economy,' that struck a chord with me. Here is how he explains the concept.
"Canopy Ecosystems are the worlds of flora and fauna that occur at the tops of very tall trees, and exist largely apart from the multiple bio-systems layered beneath them. They do this in part by getting the best access to sunlight. But in so doing, they block the sun from reaching everything below. The vast income accumulated by the small slice of super elite at the top of the wealth pyramid has created a kind of global canopy economy that has lost its connections to the people it sprang from."
The author goes on say that he does not have issues with the wealthy per se as long as they earned their wealth by creating value for the world. He quotes examples in Intel, Google, Oracle, and Apple where the founders became wealthy by creating what we need and want and charging a fair price for the value generated. Interestingly, he left out Microsoft from that list of examples, but I do not know if I should read more into that omission. The author contrasts this with the financial services industry where very often they operate in a canopy economy that prevents opportunities from reaching other strata below.
Predator Nation is a fascinating book. I have a feeling that more posts over the next few days will borrow from the book.
"Canopy Ecosystems are the worlds of flora and fauna that occur at the tops of very tall trees, and exist largely apart from the multiple bio-systems layered beneath them. They do this in part by getting the best access to sunlight. But in so doing, they block the sun from reaching everything below. The vast income accumulated by the small slice of super elite at the top of the wealth pyramid has created a kind of global canopy economy that has lost its connections to the people it sprang from."
The author goes on say that he does not have issues with the wealthy per se as long as they earned their wealth by creating value for the world. He quotes examples in Intel, Google, Oracle, and Apple where the founders became wealthy by creating what we need and want and charging a fair price for the value generated. Interestingly, he left out Microsoft from that list of examples, but I do not know if I should read more into that omission. The author contrasts this with the financial services industry where very often they operate in a canopy economy that prevents opportunities from reaching other strata below.
Predator Nation is a fascinating book. I have a feeling that more posts over the next few days will borrow from the book.
Monday, June 1, 2015
Skyscraper Index
I chanced upon a reference to the skyscraper index on the internet a few days ago.
The admittedly whimsical concept, as per the wiki article, suggests that the commencement of a super tall skyscraper project has often coincided with the eve of economic downturns.
The Chrysler Building project, gunning for the tallest building in the world crown was launched in 1928 shortly before the Wall Street crash of 1929 and the Great Depression.
Next in line were the Sears Tower in Chicago and the World Trade Centre towers in New York. The projects were launched in 1973 - just before the oil crisis and the stock market crash of 1973.
Petronas Towers in Kuala Lumpur, Malaysia were launched a little before the Asian Financial Crisis in 1997.
Burj Dubai was launched a little before the 2008 Financial Crisis.
Construction of the Kingdom Tower in Saudi Arabia, the first building in the world expected to be more than a kilometer tall began in 2013 and the price of oil went into free-fall in early 2014 - putting severe strain on the finances of the Kingdom of Saudi Arabia.
These are an interesting series of coincidences. While nobody is suggesting a direct cause and effect relationship between the commencement of a skyscraper project and economic crises, the correlation is indeed rather strong.
The admittedly whimsical concept, as per the wiki article, suggests that the commencement of a super tall skyscraper project has often coincided with the eve of economic downturns.
The Chrysler Building project, gunning for the tallest building in the world crown was launched in 1928 shortly before the Wall Street crash of 1929 and the Great Depression.
Next in line were the Sears Tower in Chicago and the World Trade Centre towers in New York. The projects were launched in 1973 - just before the oil crisis and the stock market crash of 1973.
Petronas Towers in Kuala Lumpur, Malaysia were launched a little before the Asian Financial Crisis in 1997.
Burj Dubai was launched a little before the 2008 Financial Crisis.
Construction of the Kingdom Tower in Saudi Arabia, the first building in the world expected to be more than a kilometer tall began in 2013 and the price of oil went into free-fall in early 2014 - putting severe strain on the finances of the Kingdom of Saudi Arabia.
These are an interesting series of coincidences. While nobody is suggesting a direct cause and effect relationship between the commencement of a skyscraper project and economic crises, the correlation is indeed rather strong.
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