Letter to Iran

From PARVANEH VAHIDMANESH: a touching letter to Iran's establishment:

http://online.wsj.com/article/SB124623110886766123.html

Ali Khamenei, if you pursue the path you have been following, our people's anger will take a different form. It will turn you and your family, as it did the shah's and his, into forlorn and helpless individuals with the word "exile" stamped across your foreheads.

The French and Sex

I read a while back that the French have the most sex compared to all other nationalities. (I think I saw it in Durex's annual sex survey.) Here might be why:

http://www.dailymail.co.uk/femail/article-1195624/French-women-dont-just-tolerate-husbands-affairs--expect-them.html

Seems like a realistic approach. Many marital couples stop enjoying sex frequently, and under the French system, they don't have to get divorced. They just move on and be discreet. But what about STDs?

Anyway, if you notice, in most socialist countries, women tend to be more sexually open. See Scandinavian countries, for example. If Karl Marx had gone with the sex angle, maybe we'd all be red commies today. It does seem that many people compensate for a lack of a good sex life with material possessions. Perhaps that's one reason why capitalism and Puritanism go well together.

Funny: Daily Show on Iran

Matt Miller on Heathcare

Matt Miller on healthcare, from The Commonwealth (June 2009, p. 16):

General Motors famously spends more on health care than it does on steel. And Starbucks spends more on health care than it does on coffee. [Nice margins on coffee, eh?] Workers are left in a situation where, because of the nature of employment and benefits being tied [together], we've got 50 million uninsured and maybe 30 million additional folks [underinsured] in tremendous anxiety. It doesn't work anymore.

According to the same speech, in 1960, healthcare cost 5% of GDP. Now it costs 20%. Did we get completely out of shape in just 49 years? If so, the short time frame indicates no permanent difference, meaning we may be able to change our habits and return to a healthier society. I suspect, however, that the real problem is the way healthcare companies, including hospitals, get paid by insurance companies.

When I was in college, I remember going into the ER for some stomach and head pain--I had slept for about 21 hours in a row and was feeling terrible and nauseous. I'd never slept that long before, and I was afraid something had happened (and no, I did not drink the night before--I have never really liked alcohol because I like sweet drinks, and I hadn't discovered Drambuie yet). An ER doctor checked me out for five minutes and saw nothing wrong. Since I was already there, I asked him to check out a small growth on my calf. The doctor looked at it for five seconds and declared there was nothing serious.

As a student, I was still covered under my dad's health insurance policy, but it refused to pay the bill--the insurance company said my nausea and weariness were not true emergencies, and therefore I should not have gone to the ER. The insurance company said I should have waited until Monday to see my regular doctor, but I didn't have a regular doctor in my college town--I was a freshman, and I rarely went to a primary care physician anyway.

I got the bill from the hospital and was able to see the full charges. In addition to the normal ER fee (which is normally quite high), the doctor had charged me around 200 dollars for the five seconds it took him to check my leg. That's right--the doctor had classified my simple question as a completely new healthcare issue. Even lawyers have to account for their time, so they can't charge outrageous amounts for five seconds of work. I don't want doctors to account for every six minutes of their time, but the current system is too easily manipulated. When I received that separate charge for around 200 dollars--a princely sum for a college student back in the mid-90's--I knew there was something morbidly wrong with the American healthcare system.

There is a happy ending, if my memory serves me correctly. My mom called my dad's insurance company day after day, and I believe it finally paid the bill. I wonder what people do if they don't have a determined person who can call and argue a bill over and over. As a full-time college student, there was no way I could have paid that bill. And what's the point of having health insurance if you can't go to the doctor when you're feeling absolutely horrible and terrified about about a brand-new, sudden problem?

In any case, if you believe healthcare companies won't be forced to change their inefficient ways under an Obama administration, you may want to consider Vanguard Health Care Fund ((VGHCX) and the Vanguard Healthcare ETF (VHT).

Disclosure: as of June 29, 2009, I have no positions in any funds mentioned above.

Persian Wedding Table

For more information, click here.

The cool frame at the bottom contains "espand," to ward off the "evil eye." The word Espand refers to a class of Zoroastrian Archangels.

Eggs and nuts (fertility symbols); rose water (purify the air); rock candy and pastries (to make the marriage rock solid and to bring sweetness); wheat (a sign of fruitfulness); Koran (God's blessing for the couple); cup of honey (to sweeten life).

Rocky Fans, Rejoice

Ever wonder what a cool USB drive looks like? Here you go:

http://www.engadget.com/2009/06/18/rocky-iii-usb-drives-sadly-missing-burgess-meredith-version/

Hat tip to Bill C. for the link.

Stuff We Can't Afford: Credit Card and Public Pension Debt

Nice graphic re: credit card debt:

http://www.mint.com/blog/finance-core/the-descent-into-credit-card-debt

Now I need to go figure out if any of my credit cards have an "inactivity fee."

Also, here's an excellent article (8/20/2007.) on public sector pensions and how to fix them:

http://reason.org/news/show/1006943.html

The argument of generations past, that government must offer greater benefits than the private sector to offset smaller salaries, clearly no longer applies. Today, government employees receive significantly higher benefits and salaries than their private-sector counterparts. According to a 2005 study by the Employee Benefit Research Institute, public-sector employees earn 40 percent higher salaries and 60 percent greater benefits than private-sector employees.

Thanks to Adam Summers for catching this issue back in 2007. Too bad almost no one listened.

Literal Remix of Meatloaf Video

RIP: Mikaeel Jackson aka Michael Jackson

Mikaeel Jackson, your soul was too gentle for this world. May you finally find peace now.

Hilarious Remake of Bonnie Tyler Vid

Defense Wins Games

From today's WSJ (6/25/09), "American Kids Flunk Basketball 101," Michael Beasley laments his lack of defensive prowess:

[A]s concerns build about his...rough transition to the NBA, last year’s No. 2 overall pick, Michael Beasley of the Miami Heat, finally conceded a fundamental flaw: No one, at any level in his basketball career, had asked him to play defense. And especially not in AAU. “If you’re playing defense in AAU, you don’t need to be playing,” he says. “I’ve honestly never seen anyone play defense in AAU.”

AAU stands for Amateur Athletic Union, a national youth basketball circuit. When I coach youth basketball at the local community center, I emphasize defense. Whoever plays harder defense gets more minutes if I have a vacancy. I also reward kids who play defense by praising them every chance I get. Defensive drills are fairly simple. I call them "rebounding and hounding" drills.

No one teaches kids defense anymore, even though you can't win games without it. Michael Jordan was voted defensive player of the year in 1988, and also racked up nine NBA All-Defensive First Team honors. The San Antonio Spurs recently won several titles with their hard-nosed defense. The Boston Celtics didn't win any titles, not even division titles, until after 1957--exactly when defensive stud Bill Russell started suiting up for the team. Defense is key to winning in basketball. The Phoenix Suns have found this out the hard way--although they would score 120 points on a regular basis, they haven't been able to win a title in recent history.

Beasley is talented, but his doesn't seem to have the killer instinct necessary to play defense. He's more of what I call a "pretty boy" player--content to shoot easy baskets and not sacrifice his body for the sake of a play. The opposite of the "pretty boy" mentality? Dennis Rodman and Chris "Birdman" Anderson.

NBA News

NBA News: San Antonio picks up R. Jefferson, practically guaranteeing a Conference Finals appearance, while Cleveland adds an aging free throw bricker who couldn't get it done with Nash, Amare, Hill, Barbosa, and J-Rich.

How does San Antonio manage to consistently improve its team at a reasonable cost, while other teams throw a Hail Mary?

Richard Jefferson is going to be a wonderful addition to San Antonio. He's a proven scorer and a stand-up guy. San Antonio's major issue will be keeping players healthy all year. They also need a consistent three point shooter. Bonner is a good shooter, but he's been inconsistent in the playoffs.

Finally! Public Pensions Exposed

Thank you, Craig Karmin, for your June 24, 2009 WSJ article, "Group Shines Light on Hefty Government Pensions."

http://online.wsj.com/article/SB124580096328044597.html

Pension funds provide guaranteed payouts, so even though public funds lost a collective $1 trillion last year, their retirees' monthly checks are unchanged. And the funds' solvency is ultimately backed by taxpayers.

By the way, apparently, the California School Employees Association, a union, represents 230,000 public employees. And that's just one union. No wonder public sector unions have so much power in Sacramento.

Gov. Sanford Confesses to Affair

I used to really like Gov. Sanford. I wrote about him previously here. He admitted today that he cheated on his wife with a woman in Argentina. Ironically, one excerpt from an earlier speech he made mentions judging others based on their actions:

[T]he Bible says, “Let your light so shine before men that they may see your good works and give glory to your Father that’s in heaven.“ Hopefully, by the way in which you act. The way in which you make decisions.

Two Republicans have been outed as morally deficient in less than a week (than other man is Nevada's John Ensign). Maybe this is God's way of forcing the Republican Party to stop catering to the religious right and to convince them to return to old-time republican principles: small government, low inflation, personal humility, and anti-unnecessary wars. Or, maybe it's just karma for spending millions of taxpayer dollars going after Bill Clinton.

I hate to smile at anyone's misfortune, but I did manage a chuckle at one of the names given to this scandal: "Don't Cry for Me, Argentina." By the way, Jenny Sanford has issued her own statement. Click here to read her heartfelt words. I predict she'll hold public office someday in South Carolina.

Random Thoughts

1. Whatever happened to Gorillaz, the innovative band that did the catchy "Feel Good Inc."? I loved their single, and I haven't heard anything quite like it since.

2. I went food shopping today. I always try to find the discounted items, but the grocery stores are getting tricky. I saw one discount of 9 cents--hardly a reason to favor a particular brand over another. Many of the discounts I saw were less than thirty cents. If this keeps up, I am going to have to save lots of coupons and go shopping only when I have lots of coupons.

One item that stores seem to consistently discount is ice cream. If you go in the middle of the week, sometimes you will save 50%. For a big ice cream fan like myself, this is sweet indeed.

Jack and Suzy Welch and Grand Canyon Education, Inc. (LOPE)

A seekingalpha.com reader, Catcuffs01, corrected an egregious mistake in this article. Someone also left me a message about my mistake. Thank you. Mr. Welch's new online MBA program is run by Grand Canyon Education, Inc. (LOPE), not the Apollo Group, Inc. (APOL). Here is my response to the astute reader:

Catcuffs01: you are absolutely right. Welch is lending his name to Chancellor University System LLC, not the Apollo Group. He was, however, impressed by the Apollo Group. The WSJ article said that "Mr. Welch says he was initially skeptical of online education, but has been impressed by the Apollo Group Inc.'s University of Phoenix."

Mr. Welch actually lent his name to Grand Canyon Education, Inc. (LOPE). I'd never heard of LOPE before, so my brain jumped to the only online company I know about, which is the University of Phoenix. Thank you for correcting me.

Revised article below:




I've been waiting for an excuse to put up these pictures. The WSJ just had an article on Welch and his new online MBA program. Here is one excerpt:

When he first approached Mr. Welch at the party, Mr. Clifford says the two men argued about the merits of online education. "We were yelling at each other," Mr. Clifford says. Mr. Welch confirms the incident. Mr. Welch invited Mr. Clifford to see him the next day, and Mr. Clifford says he has "hounded" the former CEO ever since.

Seems like an interesting meeting, no? While Welch is going with Grand Canyon Education (LOPE), the largest online education provider is the Apollo Group. The Apollo Group (APOL), which runs the University of Phoenix and other campuses, has a volatile stock. In the past six years, it has gone as low as $33/share to as high as $95/share.

APOL's main issue is credibility. College degrees, at the end of the day, are just pieces of paper. No one will pay tens of thousands of dollars for a piece of paper unless it will lead to a good job and/or higher lifetime earnings. Thus, the real value of most college degrees lies in their ability to connect students to a loyal alumni network. The longer an institution has been around, the higher the value of its degree, because the school will usually have more alumni. Size doesn't necessary matter--little-known, selective Carleton College probably has a stronger network than the much larger UC Riverside.

In contrast to many top tier colleges, the University of Phoenix and other Apollo campuses have not yet established a vast, loyal alumni network. (Readers, please correct me if I am wrong--I'd love to hear about companies that focus on hiring University of Phoenix or Grand Canyon Education grads.) Many Apollo graduates attend night school or may not be particularly loyal to any of Apollo's various universities. Getting an online degree may be faster and more convenient, but numerous factors, including no nationally-recognized sports teams, may impede a strong Apollo alumni network.

The addition of Jack Welch improves online education's credibility, but it is still unclear how Apollo's and Grand Canyon Education's various educational institutions plan to create lasting loyalty. I can think of plenty of famous Harvard, Stanford, Santa Clara (Steve Nash, Gavin Newsom, etc.), and UC Davis graduates (Urijah Faber, Jackie Speier, etc.), but no famous University of Phoenix or Grand Canyon Education grads. (Note: I did a quick online search. Apparently, Shaq and Lisa Leslie have received degrees from the University of Phoenix. It's interesting that Apollo hasn't successfully used their celebrity status as a marketing device.)

I wish Apollo and Grand Canyon Education much success in the future. Our established universities need competition; otherwise, they will keep increasing tuition above the rate of inflation. Apollo and LOPE are like new charter schools trying to gain credibility in a world of established private and public schools. If they succeed, everyone but the establishment benefits. As an investor, however, it may be wise to wait until the companies establish larger and stronger alumni networks before jumping in.

Disclosure: I have no shares in APOL or LOPE.

Kaveh Alipour

Another government-inflicted murder happens in Iran:

http://online.wsj.com/article/SB124571865270639351.html

Apparently, Kaveh Alipour was non-political and was just waiting at an intersection:

He had been alone. Neighbors and relatives think that he got trapped in the crossfire. He wasn't politically active and hadn't taken part in the turmoil that has rocked Iran for over a week, they said.

This might be the work of the Basij, a volunteer paramilitary force that's similar to Germany's former SS. A significant percentage of Basij are allowed to have firearms, and I think the Iranian government has supplied more of them with weapons since the uprising.

I remember being in Iran many years ago. I was a teenager, and it was a hot day. I lifted my shirt and exposed my chest to the slight breeze. My friend worriedly told me not to do that. Under Islamic law, both men and women must dress modestly when outside the home. I realized later my friend might have been concerned about the Basij bothering us.

Financial Morass

And the hits keep on coming. From The Atlantic (July/August 2009):

Operation Iraqi Freedom now ranks second only to World War II as the most expensive conflict in U.S. history. Transforming Iraq has cost roughly $1 trillion, with the meter still running and the job unfinished. Transforming Afghanistan, by any measure an even more daunting task, is likely to cost as much or more. That’s money we don’t have.

I agree with Colin Powell--we broke Iraq, and we have to fix it--but that doesn't mean I like the idea and expense of American troops in Iraq. I can't tell you how many times I wish Americans had demanded clear evidence of an actual threat before invading Iraq. Did we really allow only 19 men/terrorists to pollute our view of the world's 1.3 billion Muslims? Otherwise, how else did we get to the point where so many Americans irrationally viewed Muslims and Arabs as threats and therefore deserving of war and undeserving of sovereignty?

On a more somber note, estimated 100,000 Iraqis have died from violence since the 2003 invasion. Since 2003, over 4,000 Americans have died in Iraq.

From Iran (June 2009)

Conversation between someone from Iran and myself on June 2009, during mass protests against Ahmadinejad's re-election:

Me: what do you think is going to happen?

Iranian resident: not sure, but maybe Khmene'ei will [be] replaced with some one else

we're so scared. we don't [feel] safe in street

Me: Have you heard of Neda?

Iranian resident: yes,

I saw the film about her

she is one of 20 persons that [were] killed

The George Bush of Iran

Ahmadinejad is the "George Bush of Iran": both tortured people, hate government transparency, answer to a shadowy figure (Cheney vs. Khamenei), jailed people without giving them a public trial, stole an election, think God is on their side, and ran the economy into the ground! What more do you need, except the smirk?

If this were a Tom Toles cartoon, the lower right hand portion of the drawing would read, "One person isn't responsible for unnecessarily killing 100,000 Iraqis and 4,200 Americans. Almost a perfect match."

Neda jan

Neda Agha Soltan is Iran's undisputed hero. The most inspirational heroes are almost always the unintentional ones. For more on her story, see this excellent Time magazine (Robin Wright, June 21, 2009) link:

http://www.time.com/time/world/article/0,8599,1906049,00.html

It is over for the current Iranian regime. The only reason more Iranians aren't revolting right this second is because not all towns have internet access, so not all Iranians can see the government-sponsored violence and killings. America had a similar moment with Kent State. This is Iran's Kent State. It took several years after Kent State before America withdrew from Vietnam, but the moment the government shot American students, it lost credibility. It might take a few more years, but the current Iranian government has lost legitimacy. May the current Iranian regime burn in hell for the violence it has inflicted on innocent, courageous protesters.

Update on June 24, 2009: CNN has a wonderful article on Neda:

http://www.cnn.com/2009/WORLD/meast/06/23/iran.neda.profile/index.html

CDOs and Credit Default Swaps Explained

From Santa Clara Magazine (Summer 2009), here is Prof. Alexander J. Field's take on the economic crisis. He explains CDOs and credit default swaps particularly well:

CDOs emerged when financial institutions took a pool of mortgages and issued securities derived from them. Originally, mortgage-backed securities simply sold a right to a share of interest and principal payments from the underlying pool. Securitization reduced variance of the bond’s return, but the expected payout couldn’t really be different from that of the underlying mortgages. [Presumably, because the bond's payments were linked to actual mortgage payments.] CDO engineers, however, figured out how to perform the financial alchemy of turning junk into gold: Starting with a pool of risky mortgages, they created different grades, or tranches, of derivative securities...

Even then, some major investors and banks had to have known that the CDOs being issued weren't entirely halal/kosher. They demanded insurance:

Enter credit default swaps. For a small “premium,” institutions could insure themselves against the risk that the bonds might default. Since swaps were not technically insurance, they were beyond the reach of state regulators. American International Group (AIG) and other issuers did not maintain adequate reserves to meet collateral calls when mortgage defaults rose. In a sense, they simply pocketed the premiums without providing the insurance.

Oh, the mendacity.

Classic SNL

Classic SNL:

http://www.hulu.com/watch/4183/saturday-night-live-down-by-the-river

Quote of the Day

From the sublime Woody Allen film, Crimes and Misdemeanors:

Comedy is tragedy plus time.

If you like Law & Order, two of its major characters are in this 1989 film. One plays a hitman, and the other a rabbi. Everyone should see this great film, but if you are a Law & Order fan, you really need to see this film.

Random Thoughts (June 20, 2009)

1. Just read Zakaria's most recent Newsweek article--it was okay, but I loved this quote:

Elihu Root: "About half the practice of a decent lawyer consists in telling would-be clients that they are damned fools and should stop."

2. Iran's government seems confusing at first glance, but it's actually similar to the way American corporations operate. At the top, you have your Board of Directors (Supreme Leaders), who direct the executive officers (Guardian Council). The shareholders speak through their representatives (the President and Parliament), but the real power lies with the Board and the executive officers.

This analogy isn't exact, but the two processes are very similar. The result is similar also: ordinary shareholders--the common citizens--don't have much sway over major corporations--the country--unless they band together and vote as a bloc, which is logistically difficult to do.

3. I wanted to compliment our local courts' filing clerks. I usually deliver documents myself to the courthouse for filing. Except for two people over the last five years, everyone I've dealt with at the filing clerk level has been very professional. That's a great track record, especially because many of the clerks get rotated/transferred every year.

U.K. Crime

Britain's top cops have been caught red-handed:

http://www.guardian.co.uk/politics/2009/jun/14/expenses-fraud-detectives-scotland-yard

Oh, the wickedness.

Note to Rupert Murdoch and the Newspaper Barons

Newspapers must have idiots running their business department. Newspapers price their product in ways that no other retailer would even consider. The current system penalizes long-term subscribers and rewards new ones. For example, the WSJ offers a $119 annual rate to new subscribers and then tries to charge existing customers a $398 renewal rate. That's like Macy's charging its best customers more money for a dress while offering a new, unproven customer a discount. Either give everyone the same price, or offer a discount to the proven subscribers.

If I ran the show, I'd charge a higher initial subscription, say, $200 to $400 a year. Then, each year, the rate would become progressively lower until reaching a minimum of say, $50 a year. However, to get the discounted rate, subscribers would have to agree to disclose some basic personal information useful to advertisers, like gender, age, education, and marital status (not political affiliation or financial information) and to return one advertising survey a year (either online or regular mail). My system would benefit everyone: advertisers, who usually look to target a particular audience, would have better information; newspapers, which are begging for ad dollars, would be able to effectively market to specific advertisers; and subscribers would pay less money for the same product.

Also, newspapers wouldn't have to hire those annoying marketers who call at 9:01AM trying to forcefeed their product to someone who's already received six renewal offers by mail and two by email. Entire telemarketing teams would disappear, as well as the waste that occurs from multiple renewal offers. Newspapers would only have to send one renewal notice with the following message: either subscribe and pay within three weeks, or lose the discounted rate.

Isn't it shocking no one has tried this yet? What am I missing?

Bill Maher Calls Out Pres Obama

Bill Maher on Obama (June 12, 2009, Real Time):

http://www.hbo.com/billmaher/new_rules/20090612.html

And, this is why I don't want my president to be a TV star. Because TV stars are too worried about being popular, and too concerned with getting renewed...speaking of the Republicans, if you can't shove some real reform down their throats now, then when? Folks, Barack Obama needs to start putting it on the line in fights against the banks, the energy companies and the health care industry.

I'm glad Obama is president, but the "audacity of hope" part is over. Right now, I'm hoping for a little more audacity.

Interesting perspective. Obama has already done quite a bit, but it doesn't seem enough for many people. For those people upset with the current pace of reform, remember: slow and steady can win the race.

The Soloist

I just finished Steve Lopez's nonfiction book, The Soloist. It was a good read, even though the ending was much too abrupt. If you're looking for quick, easy summertime reading, this is a good choice. (San Jose residents take note--Mr. Lopez attended San Jose State and worked for the SJ Mercury.)

The Soloist is about a gifted but mentally unstable musician, Nathaniel Ayers, and a journalist who attempts to get Mr. Ayers to reach his full potential. The interactions between Ayers and Lopez are well-described, offering readers a glimpse into how the homeless and mentally ill survive. Mr. Lopez successfully highlights the plight of the homeless, especially L.A.'s lawless "Skid Row," without being overly judgmental or sentimental. He also casts aspersions on Tom Cruise and others who denigrate drug treatment for the mentally ill. (One gets the feeling that anyone who spends enough time on Skid Row will probably believe that drugs are an important part of treating the mentally ill.)

The Soloist peels back the curtain of comfortable civilization, revealing a broken system. The key question is, "How do we help people who are prone to violent outbursts and who refuse help because of deep-seated fear and mistrust?" Mr. Lopez answers this question through his book: patience, trust, and friendship.

Mr. Lopez also touches on racial issues, but doesn't develop that storyline much. Even so, I felt Mr. Lopez identified with Mr. Ayers and stuck with him for so long was because they shared a racial similarity: neither had the "right" color for the business they were in. Here is one interesting passage, from/about the author himself (p. 110, Berkley paperback):

The issue of race is inescapable for me. I often joke that the main difference between the East Coast and the West is that when I wrote columns for the Philadelphia Inquirer, the mail said Go Back to Puerto Rico, and in Los Angeles it says Go Back to Mexico. It's a strange phenomenon for someone with grandparents from Italy and Spain, and it makes me more attuned to the hatred aimed at people of color even in a place like Los Angeles, which is defined by its multiculturalism.

My take on the source of Mr. Ayers' mental illness is that it resulted from a combination of stressors--poor racial relations, the hyper-competitiveness of Julliard, and the burden of being a minority in a place where few minorities existed. Mr. Lopez seems to agree with my opinion--he quotes Hal Slapin, who says that "Julliard in the 1970s 'was not a place where students...were encouraged to bond...racial tensions were high.'" (p. 247-248). Mr. Lopez also mentions that Mr. Ayers was drawn to another musician, Eugene Moye, who was half-black (p. 246).

Mr. Ayers' story has a happy ending, but that's only because Mr. Lopez became involved and used the power of the press to change Mr. Ayers' life, and, by extension, his own. Mr. Lopez probably wrote his book to shed some light on the plight of the homeless. At one point, he practically pleads for government intervention, asking, "What's more human, after all? To respect someone's civil liberties to the point of allowing them to wither away on the street, or to intercede in the interest of their own welfare?" (page 101) Later, he implies that L.A.'s annual budget for housing and services is not enough, saying that New York City's is "three times that of Los Angeles" (p. 132). Yet, he also mentions that, at least around 2006, California's state commission had "more than $1 billion a year...[to spend] on expanded mental services" (page 133).

The cynic in me doesn't think we're going to see any systemic change--no matter how much money is spent on the problems of the homeless, it must feel like a Sisyphean task to anyone involved. The real problem is that the public doesn't see much return on their taxpayer dollars when it comes to any kind of social services. As a result of the lack of visibility, social and welfare services will be the first to get cut in our modern era of massive state deficits. Indeed, unless homeless men kill someone or get killed, they tend to be invisible. Mr. Lopez has clearly added something valuable in his descriptions of "Skid Row," which exists, apparently unabated, to keep the problems of the homeless segregated from the public. The question is whether the public will listen after reading/seeing The Soloist, and what their response will be.

Personally, I was moved, but not so much that I would feel the need to increase taxes to fund more housing/welfare programs. Mr. Ayers is a sympathetic character, but it is difficult to justify spending taxpayer dollars when there is no corresponding tangible benefit to society. I am sure I will be accused of being heartless, but let's think through this issue. If Mr. Ayers had never met Mr. Lopez, what would have changed? Mr. Ayers would have probably continued to play his music, but to a small, local audience. Post-Mr. Lopez, the only difference to society is that Mr. Ayers now has a wider audience for his story and his music.

At first, I saw some parallels between Ayers and James "Radio" Robert Kennedy, popularized in the Cuba Gooding Jr. movie, Radio. In both of these instances, two members of the middle-class try to help socially-challenged African-Americans. After some reflection, however, I realized that the stories were not substantively similar at all. In Radio's case, the football coach bucked an entire town's prejudices, which almost cost him his job. Here, in contrast, Mr. Lopez has taken up an easier cause--the plight of the homeless, which actually helped him maintain his job and his salary. That's one reason I wasn't quite sucked into the story--there is some personal benefit to Mr. Lopez here, no matter how hard he tries to show his reader the sacrifices he and his family have made. (At one point, the author talks about moving to a cheaper house and city.) Overall, I enjoyed reading The Soloist. I don't know if I will see the film, but it is receiving good reviews.

Of course, I realize Mr. Lopez has done a wonderful thing. Without his intervention, Mr. Ayers might not be alive today. In 2007, San Jose saw its most famous homeless man, Cornelius Van Der Vies, die after a street altercation. Two weeks before his death, I looked into Cornelius's eyes and saw an abject fear behind his clean, dignified appearance. It was then that I realized that many homeless persons survive through an alertness provided by constant fear.

There is no question that current resources are inadequate to solve homelessness. While Mr. Lopez has provided us with a success story, it's hard to contemplate enough willing people who want to become deeply involved in strangers' lives. That probably means that despite Mr. Lopez's efforts, the problems of the homeless will continue, out of sight, and out of mind.