Blogvious

I get that the point of this bailout is not punishment. However, if I made a ten million dollar mistake I would probably be fired. If one of my people made such a mistake, they would get the axe - assuming the company even survived.

So how is that the smartest guys in the room can make mistakes that total over $1.3 trillion — and get away with it? Why is it that people that were prudent are bailing out the no-limit morons that took on debt loads they cannot afford? Why are we rewarding this? 

By the way, the most guilty party of all, the US Congress (along with the Clinton and Bush administrations) lit the fuse and kept stoking this fire. I doubt you will hear many mia culpas from their ranks.

Once again, the party is over. Once again we are cleaning it up. Time to clean the erasers.

– Carl / Blogvious

Hank Paulson took to the airwaves yesterday pitching his plan to (again) save the financial system with a huge $1.3 trillion (total) bailout.

That’s a big bet.  Plus, we get to increase the national debt by another 10% - to well over $11 trillion.

He says we are doing all of this to calm the stock and bond markets, releive the credit crunch and restore confidence in the American economy.  Um…OK, but I have a question.

Who is doing the ‘restoring’here?  Just who is on this team to restore confidence?

• Is this the same team that took us into Iraq?
• The same team that coughed up the ball once we were there? 
• The same team that squandered tens of billions cleaning up self-generated messes in that failed execution? 
• Is this the same team that responded to Katrina? 
• The same team that was as inept as the clueless Governor and Mayor of that corrupt state / city?
• The same team that appointed cronies to key positions of responsibility and oversight?
• Is this the same team that turned a blind eye to lax regulation?
• The same team that allowed congress to use Fannie / Freddie as a third-party enrichment tool?
• Is the team that has run up big government deficits that would make LBJ and FDR blush?

Is this the team that is RESTORING confidence?  Am I missing something here?

The air is thick with talking heads and know-it-alls espousing tons of theories on why Paulson is wrong or right. The truth is none of them know. Let me repeat that. None of them know. Nor do the walk-and-talks that are repeating someone elses’ less than grounded assessment. We’ve not been here before and I’ve not seen a single historic parallel that provides a solid analog - which is itself an assessment on my part.

The reason we are seeing all of this chattering - in addition to the magnificent egos spewing it forth - is the reality that we have so little confidence in this team to get it right, and at a time when the stakes could not possibly be higher.

Economic historians now agree that moves made by Republican and Democratic administrations created, deepened and prolonged the Great Depression. The thing is, it took 50 years to figure that out. It may be our kids that finally determine if what we are doing now is the right course of action, or a path of folly.

Were this action coming from an administration founded on solid principals and with a roster of significant wins and accomplishments, I (and many others) would be much more comfortable.

You are a smart and well-respected man Mr. Paulson, but your team has some credibility issues. Restore confidence? OK Mr. Paulson, but it begins at home.

– Carl / Blogvious

A dear friend forwarded an article that went to great pains blaming the flawed and idealistic policies of the Clinton administration for the current financial mess.  Really?  The article has merit - but at the same time misses the point entirely. If you begin lining up culprits, the line will be long indeed.

Let’s find some guilty parties:

Mr. & Mrs. America: If you’ve defaulted on a mortgage, a bank, car, or credit card loan – and I really don’t care what your story is – you are part of the problem. That does not make you a bad person, but you are adding to the turmoil. ::That’s Personal responsibility.

Mr. & Mrs. No Limits: If you are living in a home you cannot afford with a mortgage you should never have qualified for – and again I don’t care about your story – you are part of the problem. We’ve already shoveled $100 billion to help these geniuses. Those of us that took personal responsibility are quite puzzled by this one. ::It’s called Common Sense

Mortgage Industry: If you were a high-flying mortgage banker, loan processor, or broker (or agent) that was moving fast and loose with paper that was not yours, lying to people on both sides to close the deal, you should probably be shot (and I am quite serious here). ::It’s called Integrity.

Too Smart: If you were one of the “brightest guys in the room” that helped design these exotic mortgage bundles and then syndicated them far and wide to avoid any concentrations (so the financial system would be safe) you are part of the problem. ::It’s called Character.

Financial Stalwarts: If you were an investment bank, insurance company or other bastion of financial integrity prized for your strength and power, and you bought these risky, bloated instruments to make a quick buck, you are part of the problem – and are now feeling incredible pain. ::It’s called Prudence.

Watchdogs: If you were one of the many trusted institutions or appointed officials charged with monitoring and regulating the banking and financial markets, you have truly fallen asleep at the switch. Those of you that did raise your voices were shouted down. Too bad. Regulators do not win popularity contests. You are all part of the problem.  ::We call this Accountability.

National Leadership: If you sat in the Oval Office during the Clinton or Bush eras, or advised either man during this run-up, you to have much to answer for - and are part of the problem.  :: We call this Judgement.

Elected Officials: Lastly, if you were an esteemed member of Congress, getting fat on dollars from a myriad of lobbists, or were hawking your populist credentials by browbeating regulators (such as Barney Frank, Chairman of the Banking Committee) to lower their standards while your friends were getting rich from sweetheart deals with Fanny and Freddie you are among the biggest offenders of all. You certainly are part of the problem.  I’m about out of adjectives, but ::Corrupt, comes to mind.

– Carl  Melville / Blogivous

Not long ago you had to look your banker in the eye while he probed the depth of your character. We discarded that system to make it more uniform, fair and to minimize risks. Today’s mess is the face of progress.

When I bought my first new car, I sat across from a man that asked me how I was going to pay back the loan, should he deem to give me one. Forms were filled out and boxes were checked, but what he really did was take a measure of my character. Was I someone that could be counted upon to pay back this loan regardless of future circumstances?

Years later (1991), when I purchased my first home, I sat across from a banker. His name was Mark. He was the vice president of lending. There were many more forms, but his main agenda was sizing me up as someone that could be trusted with money from his depositers. After all, he knew many of his customers and he actually lived in the community. His level of responsibility and accountability ran deep.

These days are indeed gone forever. Before anyone pulls out a grandpa sticker, let me say that I realize we cannot go back to that model of lending. Thousands of small institutions have morphed into a few large money center banks. For all but the most wealthy or traditional individuals, the face of your banker is now an ATM machine, an online account, and an occasional visit to an actual edifice - though I doubt you know anyone there personally. 

We can no longer afford the cost of the old one-to-one relationship and potential biases that were possible when charcter counted. I borrowed three times as much money to buy my current home yet never spoke to anyone but a paper pusher and had only the sketchiest of probes into my ability to pay. Is this progress? Those holding now worthless investment paper — or families living in a home they cannot afford may have a different answer now.

Still, I wonder where we would be today if each person that signed that dotted line had to look a vested party in the eyes and explain how they could afford this commitment and would honor it for the next 30 years. We may not be going back there - but you can bet we will change.

 – Carl / Blogvious

I thought I’d heard every possible story from tech support people - until today. A great new CMS tool, Remix, has come out with an update. I visited their site today seeking a solution and was told that tech support was unavailable. Seems their town of Surat India is under TERRORIST ATTACK. That’s a first.

Here is the message:

 

“The WP Remix 2 has received a good praise, suggestions and support from the valuable clients since its release. At WP Remix site, we have support forum for any and all queries that the buyer might have and I have been providing in time support to all the queries generated by the users.

Unfortunately, the city where I live has some bad news. My city is under terrorist attack and many live bombs (nearly 25) has been detected in past 3 days as you can see in the following news websites.

Though I wish to provide support in time, the circumstances are as such, I might not be able to come to office for few days and as a result, I might not be able to provide support in time.

I request all the existing buyers to co-operate in this situation and also would request to active support forum members to help each others as much as you can.

Again, I appreciate the warm support of all the people, and hope to the things get well soon.”

Wow. We take much for granted in our sheltered existence - but the threat posed by extremists impacts the lives of all of us. I hope my friend in India is soon back at his desk and that his company continues to prosper.

– Carl Melville / Blogvious

Don’t you love the old rock groups that recapture the public eye?  Well, not always. The Strolling Bones can still kick it out, but a few others need to pack it up and move along.

Remember Devo? Yes, that Devo. As in “Whip It” and a host of other widely forgotten tunes? Well they are back. What are they doing? Touring? Recording? Nope. They’re suing McDonald’s. Yes, lovable Ronald McDonald - a guy not geeky enough to be a member of Devo - is now the target of a lawsuit.

Seems Donald had donned the red Devo hat. While they are at it, they are also suing American Idol. They are actually suing because they claim a toy in the Happy Meal box is wearing ‘their hat’. As I said, you can’t make this stuff up. If you really want details, here’s the link: Divo sues over Happy Meal Toy.

By the way guys, the 1980’s called. They said your 15 minutes ended when Members Only went out of style.

– Carl Melville / Blogvious

Based upon requests from friends, I’ve added a page called “Reading
List” with recent books and my comments on them Here is the
June list. Note: I don’t always recommend these books. Check out
my views then read other reviews at Amazon if you are
interested.

Here is my June 2008 Reading List

Word of Mouth Marketing: How Smart Companies Get People Talking

by Andy Sernovitz

This book has forwards by Seth Godin and Guy Kawasaki. While
they both annoy me, I must admire their ability at brazen
self-promotion. This was a good read. If you are seasoned
publicist you will find it familar but worthwhile. If you are
not a practicioner, you may find out a few things about stealth
marketing that will change the way you process Word of Mouth
messages from friends, associates and strangers.

High Visibility: Transforming Your Personal and Professional
Brand by Irving Rein

The third edition of High Visibility is a great read. To
survive in today’s market you need to build and maintain your
‘personal and professional brand’. Those of you that are
fans of Stanley Bing know what an impact this can have on your
life, income and career. This is not a light read, nor is it all
that entertaining. If you want a serious review of what it
takes, I recommend this book. It’s one I will keep on the
shelf for future reference as well.

The New PR: An Insider’s Guide to Changing the Face of Public
Relations

by Phil Hall

Well, I read it, but would not recommend it. It’s a very
light read - and is actually not a bad book as a PR primer. That
said, much of it is fundementals that are well worn for
marketing and PR practicioners.