Well, at least I got that out of my system.
Now, in case you were wondering… (And you probably weren’t, but I’m going to tell you anyway ‘cuz it’s my blog gosh darnit. ) Here are the Cowboy’s longtime favorites.
Scotch on a Train
If we can’t figure out prices at which to buy “bad” assets from the financial institutions so that we can create a “bad bank” (joke is so tempting…must resist), and if the unpredictable dilution and intermittent government action is not helping people settle on a value or establish solvency, then what can be done to sort out the banks so they can get back to lending?
Step into the Bar Car – It’s Friday Afternoon
Still with me? Okay. The next issue revolves around clarity versus opacity. The fundamental problem with the financial system is that no one trusts what the banks say their assets and liabilities are worth, especially their assets. There are three ways they have of determining value:
- They can use the cost they paid (or received) for something;
- They can use a model, like a spreadsheet, that uses forecasts and various other assumptions to determine a value; or
- They can use a market price.
Dilution? Yes. Ice? No.
Part 1.
As any connoisseur of Scotch whiskey knows, dilution of the spirit in question with a small amount of carefully chosen water does much to enhance the experience by opening up the whiskey and fully exposing the flavors and aromas to the taster. Ice, by contrast, brings opacity rather than clarity. It lowers the temperature, dilutes unpredictably, and effectively closes the whiskey to the taster. More here.
Nationalization of the U.S. banking industry is the topic du jour in financial circles. The recent announcement of an increased equity stake in Citigroup by the U.S government is another step in that direction. Amusingly, it came in the same week that Tim Geithner stated that nationalization was not being considered. Although to be fair, Geithner said quite a bit in that interview. So what to make of all this talk? And what the heck does Scotch have to do with the financial system?
Kenneth the Page
So everyone from the Cowboy to Fox News panned Jindal, also known as the “smartest guy in the Republican room”. Everyone’s also a-twitter over the Jindal/Kenneth comparisons. Well, here’s Sullivan on Kenneth Jindal. Between his post and Wikipedia you can figure it out, even if you don’t watch 30 Rock.
Inspiring
Irrespective of whom one supported in the U.S.election, it was inspiring to see the first African-American President address a joint session of Congress, the justices of the Supreme Court, and the entire populace of the United States.
Watch here.
Lovely and Poignant
A French short story in film – by Japanese filmmakers. It won the Oscar this year. 12 minutes. Being rather loquacious himself, the Cowboy loves the artful simplicity-that-isn’t of the short form, be it in literature, film, music, or correspondence. Distill your ideas, your thoughts, and then make them sing.
Vodpod videos no longer available.
Confession: the Cowboy shed a couple of tears. Don’t tell anyone.
[Update: this film keeps gettting pulled, so the video may not work. You can try Googling “Petites Cubes” as an alternative.]
First and Lex
It looks like Lexington is joining the blogosphere. It and the other columnists from The Economist print edition are writing blogs starting today. The Cowboy already enjoys Free Exchange and Democracy in America. A heartfelt welcome is definitely in order.
In case you didn’t know, The Economist does not have bylines for its articles, editorials (called Leaders) or blogs. Anonymity has been a hallmark since its founding in 1843. Its amusing U.S. presidential debate liveblogs were written by several individuals at a time, each denoted by the color of the text used in their contributions (Red, Green, Blue, etc.).
The Cowboy has been a devoted weekly reader of the newspaper since the summer of 1987, when he first picked up a copy at a newsstand in the Alps while working as a janitor for a Swiss boarding school.
Diaghilev Cowboy 