Obama against outsourcing?

It must be campaign rhetoric. If he really means it, chances are he is going to get booed out of his Hyde Park neighbourhood.

Less outsourcing would mean that American firms would face increased costs and decreased competitiveness, at a time when the economy isn't exactly going great guns. It would certainly lead to a backlash in India, with the result that US firms are going to miss out on the Indian growth story. Also, for every dollar that the US gives to an Indian software engineer salary it probably gets a good fraction of it back in the money that he/she eventually spends on Levis jeans and Coke and Dominos Pizza and iPhones. Why anyone would want to mess with that is beyond me, but you gotta do what you gotta do to get voted in.

Buffet on sovereign wealth funds

There’s been much talk recently of sovereign wealth funds and how they are buying large pieces of American businesses. This is our doing, not some nefarious plot by foreign governments. Our trade equation guarantees massive foreign investment in the U.S. When we force-feed $2 billion daily to the rest of the world, they must invest in something here. Why should we complain when they choose stocks over bonds?

Rubaiyat

Life is short.

The worldly hope men set their hearts upon,
Turns ashes - or it prospers; and anon
Like snow upon the desert's dusty face,
Lighting a little hour or two - is gone.

Ah, make the most of what we yet may spend,
Before we too into dust descend;
Dust into dust, and under dust to lie,
Sane wine, sans song, sans singer, and - sans end.

Tis all a chequerboard of nights and days,
Where destiny with men for pieces plays,
Hither and thither moves, and mates and slays,
And one by one back in the closet lays.

Life goes the way it goes.

The moving finger writes and having writ,
Moves on, nor all thy piety or wit,
Shall lure it back to cancel half a line,
Nor all thy tears wash out a word of it.

Life is sweet.

Ah, fill the cup, whats boots it to repeat,
How time is slipping underneath our feet,
Unborn to-morrow, and dead yesterday,
Why fret about them if today be sweet.

Drink to it.

How long, how long, in definite pursuit,
Of this and that endeavor and dispute,
Better be merry with the fruitful grape,
Than sadder after none, or bitter, fruit.

The grape that can with logic absolute,
The two and seventy jarring sects confute,
The subtle alchemist that in a trice,
Life's leaden metal to gold transmute.

Live for today,

Some for the glories of this world, and some,
Sign for the prophet's paradise to come,
Ah, take the cash and let the promise go,
Nor heed the music of a distant drum.

Ah, my beloved fill the cup that clears,
Today of past regret and future fears,
Tomorrow! Why tomorrow I may be,
Myself with yesterday's seven thousand years.

And don't let religion get in the way.

Why, all the saints and sages who discussed,
Of the two worlds so learnedly, are thrust,
Like foolish prophets forth, their words to scorn,
Are scattered, and their mouths are stopt with dust.

Oh threats of hell and hopes of paradise,
One thing at least is certain - this life flies,
One thing is certain and the rest is lies,
The flower that once is blown forever dies.

What out of senseless nothing to provoke,
A conscious something to resent the yoke,
Of unpermitted pleasure, under pain,
Of everlasting penalties, if broke!

And when death comes,

Ah, with the grape my fading life provide,
And wash my body whence the life has died,
And in a winding sheet of vine leaf wrapt,
So bury me by some sweet garden side.

I sometimes think that never blows so red,
The rose as where some buried Caeser bled,
The every Hyacinth the garden wears,
Dropt in her lap from some once lovely head.

(Aside - Deflation is bad :) )

What! From his helpless creature be repaid,
Pure gold for what he lent us dross allayed,
Sue for a debt we never did contract,
And cannot answer - oh the sorry trade!

World Energy Production/Consumption

Very nicely presented data showing worldwide production and consumption of energy. Here it is.

Exodus

First, analyst and research jobs. And then senior managers.

In a commodity business, the only way to survive is to have the absolute lowest cost structure, as prices will keep spiraling lower till only the cheapest player survives.

E.g. Walmart vs. Sears, KMart, family grocery stores

A similar effect in banking as well, as more routine functions automatically seek out the lowest cost base, especially in the face of hideous market losses.

The only way you can price higher is by possessing specific skill/knowledge that is not easily replaceable or substitutable. Thats why MDs got shipped and not their jobs :).

Spoilsports

Excerpt from the Economist.

Spoilsports
In their eyes, we were not earning money for the bank. Worse, we had the power to say no and therefore prevent business from being done. Traders saw us as obstructive and a hindrance to their ability to earn higher bonuses. They did not take kindly to this. Sometimes the relationship between the risk department and the business lines ended in arguments. I often had calls from my own risk managers forewarning me that a senior trader was about to call me to complain about a declined transaction. Most of the time the business line would simply not take no for an answer, especially if the profits were big enough. We, of course, were suspicious, because bigger margins usually meant higher risk. Criticisms that we were being “non-commercial”, “unconstructive” and “obstinate” were not uncommon. It has to be said that the risk department did not always help its cause. Our risk managers, although they had strong analytical skills, were not necessarily good communicators and salesmen. Tactfully explaining why we said no was not our forte. Traders were often exasperated as much by how they were told as by what they were told.

Why managing risk is hard when traders are pushing for the next big deal and big bonus, regardless of the consequences.

Result : Traders take home big bonus, bank saddled with garbage with shareholders paying the ultimate price.