David Boaz, Libertarian

David Boaz, Executive VP of the Cato Institute, spoke at the Commonwealth Club recently. His speech was reproduced in The Commonwealth Magazine, September 2008 edition. I haven't been able to find a free online link, but it's a wonderful speech, and you should make the effort to find the speech. Here is an audio file of the speech:

http://search.everyzing.com/viewMedia.jsp?res=0&dedupe=1&index=117&col=en-all-public-ep&sort=rel&e=20501629&channelTitle=Ron+Paul&num=16&start=112&ci=43&expand=true&match=none&channel=236&bc=90&filter=1

Boaz's best line is about Everything I Need to Know I Learned in Kindergarten and how libertarianism has the same simple rules:

Don't hit other people, don't take their stuff, and keep your promises...if you apply those rules, you get civilization and freedom.

Here's another great line:

Always love your country, but never trust your government.

Boaz makes the great point that while we may feel less free today because of excessive government intervention and power, we are certainly more free when compared to a distant past involving slavery, 70 percent income tax rates (1977), fascism, feudalism, and communism. Boaz reminds us, "We had a monopoly phone company, strict regulations on interest and investing, sodomy laws in most states, and, at least briefly, generalized wage and price controls."

Boaz also takes on the question of how to define liberty and arrives at three factors: one, widespread wealth; two, an open society (less racism, no signs stating "No Blacks Need Apply"); and three, actual political and economic liberty (no more military conscription, no Jim Crow laws). He boldly states, "On balance, Americans today are more free than any people in history." He also says we should still be wary of those who seek to curtail our freedoms, suggesting,

Just speak up when somebody says there ought to be a law. There's no magic bullet. There's never been a golden age of liberty and there never will be.

Wise words from a man who strikes the perfect balance between optimism and fear. For more from David Boaz, check out the following link:

http://www.libertarianism.org/reader.html

X-Men

The X-Men movies are some of the best films ever made. So many philosophical questions are covered in the series. For example, what laws, if any, should be passed for people considered superior to others? Should people who are different be controlled in any way? If so, how? To what extent do others without unique characteristics have to bend to accommodate a minority with special traits? I could continue ad infinitum. 

Here's one of my favorite scenes, from X-Men 2:

Storm: Sometimes anger can help you survive. Nightcrawler: So can faith. 

 For whatever reason, this exchange is electrifying in the film.

Yeats and the Stock Market

It's not too often I see someone adeptly combine my two loves--the stock market and poetry--so I had to share James Surowiecki's article with you:

http://www.newyorker.com/talk/financial/2008/09/01/080901ta_talk_surowiecki

Mr. Surowiecki's topic is the market's recent volatility: "[I]n the long run volatility is a very bad thing, because it makes ordinary investors less inclined to trust markets." His best line, about investor uncertainty, is at the very end:

[F]or now we’re stuck in a Yeatsian market: the best lack all conviction, while the worst are full of passionate intensity. Let’s hope the center can hold.

If you're still not agog at Mr. Surowiecki's reference, the first part of Yeats' Second Coming is below:

TURNING and turning in the widening gyre
The falcon cannot hear the falconer;
Things fall apart; the centre cannot hold;
Mere anarchy is loosed upon the world,
The blood-dimmed tide is loosed, and everywhere
The ceremony of innocence is drowned;
The best lack all conviction, while the worst
Are full of passionate intensity.

Yeats and the stock market--a herd of passionate intensity. That about sums it up, doesn't it?

Olympics and Globalization

George Priest and Minor Meyers wrote today about globalization's benefits to America's Olympic standings (WSJ, A11, 8/25/08).

Gymnast and gold medalist Nastia Liukin was born in Moscow, Russia.

Wrestler and gold medalist Henry Cejudo was raised by a mother who was an undocumented Mexican immigrant.

The entire U.S. women's table tennis team is from China.

Globalization also helped non-U.S.-Olympians find jobs and achieve higher performance.

The Iranian basketball team's coach is Serbian.

Becky Hammon, U.S. basketball star, played for the Russian national team.

Swedish wrestler Ara Abrahamian is of Armenian descent.

Cartoonist Clay Bennett

Other than Tom Toles, I haven't been enamored with any other cartoonists...until I saw Clay Bennett. His style reminds me of Wallace and Gromit with an understated political bent. Check him out:

http://www.claybennett.com/archives.html

http://www.timesfreepress.com/news/cartoons/

Here's one cartoon students will (unfortunately) identify with:

http://www.claybennett.com/pages2/debt.html

I particularly like this one:

http://www.claybennett.com/pages2/curb_appeal.html

Bonus for your funny bone:

http://www.thingsmyboyfriendsays.com/index.html

Decoupling?

Economists love to talk about "decoupling." It sounds like just what it is--a breakup, or an ability to become independent from someone else. The world economy has been humming along primarily because of U.S. demand and U.S. dollars. Recently, with the gains in Dubai, Brazil, and Russia, people believed the era of U.S.-caused growth might be over--that finally, countries could organically create growth. This NY Times article casts doubt on that hope:

http://www.nytimes.com/2008/08/24/business/24global.html?em

If the U.S. is still responsible for most growth, investors are better off just investing in the S&P 500 rather than attempting to diversify directly in international stocks or funds. But I believe decoupling will happen eventually--as the Chinese, Indians, Eastern Europeans, and Russians feel more affluent, they will spend more domestically and internationally. I've taken this opportunity to diversify my holdings and add commodities (KOL), gold (GLD), and single-country-based funds (EWM, IF, GXC) due to the pullback in most of these funds/ETFs.

USA v. Spain

Bryant, Wade lead USA to tough victory over Spain in Olympic medal showdown (or, according to the Ball Don't Lie blog: "Red, White, and Whew").

After missing the epic Nadal-Federer Wimbledon showdown this year, I wasn't going to miss Spain v. USA in the Olympic basketball gold medal match. It lived up to the hype. Were it not for Kobe and Wade each making a trey in the last six minutes to fend off Spain, Spain might have won. The final score was 118-107, but the score doesn't reflect how close the game was until the last two minutes. The last minute included four giveaway free throws from Spain to the USA, including an unsportsmanlike foul, and an easy missed layup after the outcome was in little doubt.

Both teams shot around 50%. Kobe committed several unnecessary fouls, because he always plays hard on defense, even when his team is ahead and should strategically avoid going for the steal. USA would have lost without Kobe--other than one poorly attempted three pointer, it didn't seem like Kobe missed a shot in the last four minutes. His four-point play--when he made a trey and the ensuing free throw--caused an eventual breakdown in Spain's composure, as it caused a Spanish player to foul out at a crucial time.

From my vantage point, the referees did not favor either side--they let the teams play, which is one reason the game was so close. But when the refs take a hands-off approach until the last few minutes, some calls will be questioned because of the inconsistency.

The rule differences between the NBA and Olympic rules are well explained here:

http://community.sportsbubbler.com/blogs/the_bob_boozer_jinx/archive/2008/08/07/ten-things-you-should-know-about-olympic-basketball.aspx

The surprises of the game? First, Juan Carlos-Navarro. He currently plays in the Euroleague, so he's more familiar with the Olympic rules, which allow a zone defense. (Spain's 2-3 zone defense was stellar, forcing USA to take more outside shots). Navarro broke down the USA man-to-man defense at will, scoring teardrop layups on almost every possession. He played so well, Jose Calderon didn't get much floor time.

Second, Rudy Fernandez, who signed with the Portland Trailblazers, played intelligently and effectively. Portland is going to have a monster team--here is their expected 2008 roster:

PG Brandon Roy
SG Rudy Fernandez
C Greg Oden / Joel Przybilla
SF Martell Webster
PF Ike Diogu / Channing Frye

Young, but deadly. No other NBA team has this kind of young talent, especially if Jerryd Bayless lives up to the hype. Anyway, back to the Olympics.

Dwight Howard seemed absent in the game, but that's due to outsized expectations--if he doesn't pull down 15 boards a game, we say he's having a bad day.

Lebron had some nifty passes and steals, but didn't score much. He's always been criticized for not scoring enough, but the Olympics confirmed this bias--he is definitely more comfortable passing than scoring. Blame Magic Johnson and the dazzling "Showtime" highlight reels.

Bottom line: Kobe and Wade took over--Lebron's time will come later.

Update on 9/15/2008: Bill Simmons' take on this incredible game is similar to mine:

http://sports.espn.go.com/espnmag/story?section=magazine&id=3575385