There is an excellent write-up at The Baseline Scenario recapping the SEC’s defense of fair value accounting and mark-to-market in particular.
The SEC should be applauded — even during these times of Ponzi schemes and short sale schizophrenia — for having the sensibility to keep fair value accounting in place during the height of the myopia. There were a LOT of people supporting its suspension on a daily basis, from CNBC talking heads to Wall Street Journal opinion articles. Thankfully, the SEC understood the alternative was worse.
January 4th, 2009
Be sure to check out the three-part series from the Washington Post on how AIG came to be the most expensive private enterprise bailout in history.
Part One: The Beautiful Machine
Part Two: A Crack in the System
Part Three: Downgrades and Downfall
December 31st, 2008
There’s a very interesting story in November 21st issue of the Austin Chronicle, which outlines the recommendations of the Live Music Task Force, a group set up to recommend to the Austin City Council how best to foster the local live music industry. And you guessed it — there’s a serious problem. But WHAT is the problem? I still don’t think people get it.
To understand what’s been changing in the live music scene in Austin, you only need to look at the intro picture of the article: The Mohawk music club on one side of the street, and the Red River Flats apartment complex on the other. (I drive by this intersection every day on my way to work.)
How did we get here? Well if you blinked, you missed the transfer of power from the entertainment businesses to the residential community. A few years back, the city council decided that downtown could support 30,000 more people, and pushed to bring them in over the next 5-10 years. The resulting growth of residents in downtown Austin has given real power to the Downtown Austin Neighborhood Alliance. They and their large residential taxpayer base wield — and deserve, I might add — a lot of influence over the city council. Which means a lot of arguments surrounding live music have been focused on minimizing the inconvenience for residents. Things like sound control, parking, complaint procedures, etc.
So yes, things are changing downtown. But is the growth choking off live music? Of course not. Sure, the cost of complaince for club owners may be going up, but guess what — times changes, new neighbors move in, and you figure out how to make it work. If someone builds a house in the empty lot next door, it’s not a bad thing. You, as a property owner, might have to tackle little projects you were putting off, like building that fence to keep the dogs from running into their yard. But that new house does benefit you: your property value goes up. Being a vindictive jerk of a bad neighbor because you were there first doesn’t help anyone. You adapt and coexist. Not parking in their driveway, not cranking the volume to 11, not throwing empties into the other yard — it’s just mutual respect stuff.
A task force tackling issues that amount to neighbor problems is a waste of time. (Some ideas even make it worse: requiring engineering licenses is a sure-fire way to fast-track the industry’s death.) Which is why I was disappointed to see issues like these show up in the group’s recommendations. It’s unfortunate because it dilutes and muddles the REAL message — that something needs to be done to fundamentally organize and solidify the music industry in Austin. Not just the LIVE music industry, but the overall one.
The silly neighbor issues notwithstanding, the committee recommendations that matter are:
- Health services for musicians;
- Job training and financing for school and businesses; and
- Creating a Downtown Entertainment District.
Here’s why I think each of these are excellent proposals:
1. Health services. Really, doing one-off benefits for musician ailments isn’t cutting it. Programs like HAAM will help, but they need to do more.
2. Job training and financing. I’m a big fan of school, naturally. Anything to train people upwards and get them prepared for a career in music is a good thing. I only wish they’d dive deeper into developing an actual support system for the industry. After all, musicians need help with business plans and contracts. Yet here we are, in the shadow of a Top 20 business school and a Top 20 law school, and we can’t figure out how to integrate them into the support network?
3. Entertainment District. I love this idea for one reason: it gives the music industry a place to point to on the map. The Live Music Capital needs a live music capital, and this one would be a galvanizing epicenter.
These ought to be the focus. It’s just a shame we have to debate things like, how to respect our neighbors. Focusing on fundamental industry needs should be the discussion.
November 23rd, 2008
There’s a pretty good three-part series on medical tourism written by Corrie MacLaggan of the Austin-American Statesman. Part 3 was in the paper today; but you can read them all on their website now:
It’s exciting to see the growth in an industry which may help depress health care costs at home. There are still a lot of obstacles to overcome, like malpractice and the certification of health tourism agencies. Of course, the opponents of medical tourism are doing their part to inject scare tactics into the argument — not unlike the pharma industry’s “warnings” of buying prescriptions from Canada. That’s fine; there are bound to be issues raised on both sides, so long as the opinions are well-founded and intelligent. Unfortunately, to be quoted saying things like “I’m sure it’s a nice place” can’t be interpreted as anything other than ignorant and arrogant.
All in all, I thought the piece did its job in walking us through a constantly-advancing medical tourism industry. It’s likely that the industry in 2 years will look nothing like it does today. Whether it’s more regulated or more “cowboy”, there’s no telling.
Check out the sweet map of medical destinations while you’re at statesman.com.
October 28th, 2008
Bloomberg put together a pretty darn impressive two-part series on the blame for today’s crisis that is assignable to ratings agencies. First, PART 1: how the ratings agencies let loose the AAA bonanza of structured debt obligations (part one), then PART 2: how it made billions for Wall Street only to have the bottom fall out (part two).
The fact that these guys did what they did and get stay in business — while their former customers crater and leave irreparable damage on shareholders and taxpayers — is appalling at best. It’s a damn shame.
September 25th, 2008
Hardly. And that’s what the SEC will find when they close their inquiry. Coming from a guy with a background in publishing platforms, the Sun-Sentinel should have had controls in place to keep the Googlebot (the automated web crawler) from gaming their ranking. When Google visits your site, they leave footprints everywhere. There’s no excuse for treating it like an actual person, which is exactly what the Tribune tech folks did.
I predict a quiet reorg at the Tribune, and a little but of soul searching in the market as to why they’ve believe anything at this point.
September 12th, 2008
Poignant article from the NYTimes on the new focus on content at Time-Warner.
I love the strategy but really, distribution is being commoditized? Sure, you can believe that, so long that you believe commodity prices can swing out of whack for long periods of time. If that’s the case, YouTube is the next crude oil!
August 9th, 2008
