Wednesday, December 15, 2010

India, Part 4: Woozy Edition

I've got about five minutes before hopping on the bus. Yesterday was a bit of a doozy--literally. We went to Sikri, which had an interesting fusion of architecture from Asia and the Middle East. (Think Muslim arches within pagodas.) Sikri was okay, but unless you're really into Asian fusion architecture, it's not a must-see. On the other hand, the Stepwells structure in Abhaneri was interesting--it looks like an M.C. Escher picture, the one with all the interlocking steps. Not a must-see, but still quite interesting.

After checking into the hotel (Hotel Udai Villas Palace, Bharatpur--looks nice, but it's in the middle of nowhere), I wandered a bit and saw a few agricultural workers sitting around drinking chai. I can't resist chai, so I sat down and ordered some. In the meantime, one of the workers offered me a small, 1x1 white packet with a brand name, "Amber" on it. I thought to myself, "All of these guys are using it, and it's got a brand name on it, so it can't possibly be illegal--after all, no one, not even an idiot, would create so much evidence linking him back to a potential crime." It turns out I was right--it wasn't illegal, but it was chewing tobacco, something I've never had before. I think you're supposed to chew the small, crunchy balls slowly, but I popped the whole packet in my mouth. In no time, my eyes teared up, and I spit out the rest of the seeds, acting as casually as I could. My head got a bit light, and I started feeling woozy. I calmly finished my chai and got up to leave, but my balance wasn't the best. I still managed to right myself and walk back to the hotel. I can't believe this stuff is legal, but there you go. I'll update you later in more detail.

Your humble traveler,
Matthew

Bonus: Part 5 is HERE.  

Update: this became a 5 part series.  Part 1 is HERE.  Part 2 is HERE.  Part 3 is HERE

Tuesday, December 14, 2010

India, Part 3: Bazaar, Red Fort, and Taj Mahal

Today, everything clicked, and I finally had my India experience. It wasn't because of the Taj Mahal--it was because of the Old Bazaar and the Red Fort. Unfortunately, the Taj Mahal has been so publicized, it wasn't as impressive to me in person. Furthermore, the Taj Mahal is symmetrical, meaning that its consistency might appeal to math geeks, but not to people looking for design diversity. Inside the Taj Mahal, we see the raised faux coffins of the wife and her husband, who are actually buried deeper underground. The Taj is impressive on the outside, but not so much on the inside due to the deliberate lack of lighting. Visitors should make sure to visit the small museum on the left hand side, which has some interesting drawings, including ivory drawings of the king and his queen. (By the way, India also has the "Baby Taj," which is much less impressive after seeing the Taj Mahal.)

The Red Fort, unlike the Taj Mahal, is less well-known and an incredible piece of architecture. Everywhere you look, every corner you turn, you see something increasingly more amazing. The designs are intricate and diverse; the views, including a view of the Taj Mahal, are breathtaking; and the fort itself is massive. Thus far, the Red Fort has been the best on-the-tourist-trail attraction.

Nearby the Baby Taj is a very poor neighborhood. I walked around a bit and saw lots of food items for sale, mostly covered with flies. Large slabs of meat, whole fish, naan, and other items were being sold, almost all of it covered or surrounded by flies. Some of the tiny housing projects had rooms of people lying down with no furniture inside. Yet, if you you think the kids would be depressed by their surroundings, you'd be wrong. They run around, play, and seem generally energetic and happy. (Actually, anywhere you go in India, people are energetic--the general energy in the air is quite possibly India's best feature.) Groups of little kids followed me around, saying hello. A small group of girls asked me to take their picture with them, and unlike previous situations, no money was involved--these girls just wanted to take a picture to memorialize the moment. (Note: 9 times out of ten, however, the children want you to take a picture so they can ask you for money afterwards. It is best to keep 5 rupee coins on hand if you want to take pictures, although some children just enjoy seeing themselves on a digital camera after their picture is taken.)

Last up was the old Bazaar. Apparently there is a newer Bazaar, but the old one is the one to visit. It was everything I thought the Spice Market would be--busy, diverse, and vast. Our tour guide allowed me to hop off the bus and check out the old Bazaar on my own. My travelmates seemed a bit puckered out and stayed on the bus. I usually travel alone and go where the locals are, but I couldn't handle India without a tour. This tour, from Gap Adventures, has been fantastic, and I couldn't have asked for a better tour guide. In fact, I wouldn't be surprised if our tour guide, Luv Jawad, was cast in a Bollywood film and became famous one day--he really is that cool. Even so, I've been itching for some time off the beaten track, and the old Bazaar is the best place for visitors who want an authentic India experience. By the way, prior to arriving at the actual Bazaar, I passed a sign that said, "Tibetan Refuge," where about twenty Tibetans were selling mostly clothing, including North Face products. It was surreal to see all these Tibetans in a small market of their own, with motorcycles for rent in the middle of everything.

Back to the Old Bazaar. First off, the place is vast. Imagine a maze of little shops stretching out in all directions and lots of alleyways, all filled with more kiosks. Everything is sold here--sandals (picked up a great pair, Elba/Stroke, and am wearing it now), hot chai, milk with coconut (Note: you have to give back the glass bottle when you're done drinking--that's how the kiosks keep the costs low), bracelets, purses (only 150 rupees for many of them), saris, cloth, and anything else you might expect. Imagine your local flea market on steroids, and that's the old Bazaar. The greatest part about this particular Bazaar is that everything is so cheap. Most items will cost you less than 5 American dollars. The nicer stuff, like the linens and saris, will cost you around 10 dollars. Although I'm known for being cheap, even I don't mind buying things at these prices, especially because the negotiating is really entertaining when you're debating differences of fifty cents.

I discovered a great chai kiosk and sat down. Drinks were only five rupees a glass, so I had about three cups. I offered to buy more for the people around me, who were eying me with interest, but none of them took me up on the offer. One of them smiled and said "Not necessary." In my experience, most locals in truly local places will not hassle you--they are bemused by your presence and are looking to strike up a conversation with you. If anything, the only reason more people didn't chat with me is because many locals are self-conscious about their English skills. People who come to India and complain about the aggressive hawkers selling fridge magnets, tourist books, Taj Mahal globes, and other worthless memorabilia need to go off the beaten track. Certainly, the Taj Mahal has its share of aggressive hawkers, but that's not something you see in non-tourist locations. (I once had a date who mentioned she didn't like India because of the aggressive hawkers, but that was the only thing she felt was worth mentioning. She got upset when I pointed out that it made sense for hawkers to be around tourist sites, where the tourist money is. There was no second date.) If you're looking for a hotel, I saw one in the old Bazaar called Hotel Ajay.

Today's experience in the old Bazaar confirmed what I see whenever I travel anywhere. When you meet locals, all of them are the same: friendly, dignified, honest, and happy to see someone new. One last thing: I walked back in the dark for about two miles before taking a small auto-rickshaw back to the hotel, and I never once felt unsafe. If you're not going off the beaten track because you fear for your safety, you're needlessly missing out.

Your humble traveler,
Matthew

P.S. In Agra, we stayed at the Hotel Royale Residency near TDI Mall.

Update: this became a 5 part series.  Part 1 is HERE.  Part 2 is HERE. Part 4 is HERE

Monday, December 13, 2010

India, Part 2

After a five hour private bus ride, I am in Agra. Prior to coming here, our group visited the Spice Market in Delhi. What I will remember most about India will be its varied smells. Everywhere we went today, I smelled some kind of incense. At the Spice Market, I sneezed many times, my nose unsure how to digest all the spices in its midst. The Market is a site of frenzied activity--many men walk swiftly with large bags on their backs, yelling to highlight their presence. Unfortunately, the Market doesn't seem very large, and the items all seem similar after a short stroll.

We also visited the Friday Mosque in Delhi. Inside and outside, a few small monkeys wandered around, unmolested by anyone. The Mosque was large--apparently, it can hold up to 25,000 worshippers--but a bit too commercial for my taste. It is owned by or leased to the Indian government, and one must pass through a metal detector as a bored-looking military guard sits near. (What did he do to deserve this particular assignment, I wondered.) To take pictures, you have to pay 200 rupees, which isn't much, but several people who didn't pay and receive a ticket tried to use their camera phones and were immediately asked to pay the charge.

Several teenagers beckon you to take pictures and then ask for money afterwards. One of them asked me where I was from. I said, "California." He replied, "Do you have California money?" with a wide, friendly smile on his face. Some schoolgirls talked with my sister, asking only for her name. They were happy to say hello and continue along. Overall, my experience at the mosque didn't strike me as particularly religious. Perhaps tomorrow, when I visit a famous symbol of Islamic architecture, the Taj Mahal, I will have a different experience. So far, however, I've seen nothing here that exceeds the impressiveness of the holy places in Iran.

After the mosque, we visited a Sikh temple, where we were required to wear a head covering. We were able to attend and bring our cameras without charge. The Sikhs serve thousands of small food portions to the public each day--a noteworthy accomplishment in a country that has many impoverished residents--and even we were beckoned in to have some food (which we politely declined).

I had only two sweet lassis today, but plenty of naan. We stopped at a local restaurant and had a wide variety of dishes before coming to the hotel. Tomorrow we visit the Taj Mahal. Until then,

Your humble traveler,
Matthew

Bonus: Part 3 is  HERE.   

Sunday, December 12, 2010

India: Days 1 and 2

I am in New Delhi, India, and it is December 13, 2010. Before coming here, I stayed overnight in London, and I enjoyed it--I got to see a dear friend, and it was the first time I'd been in the U.K. and avoided its usual rain. It was interesting seeing the cigarette boxes in the duty-free shops at Heathrow, which have the following 24-point font label: "Smoking Kills." (In case you didn't know.) After an 8 hour flight from London to Delhi yesterday, and another 30 minutes drive to my hotel, I've arrived mentally and physically.

The weather in India is delightful--California weather, really. Everyone told me I'd be in for "culture shock," but I've experienced no such thing so far. I wonder if people who talk about culture shock don't understand that poor people really do exist outside of television commercials. (Or perhaps some people view any place with weak commercial zoning laws and a removal of their ethnic majority status as sufficient to cause shock.) Certainly, I've seen poor people, including the so-called "slumdogs" (from the excellent film, Slumdog Millionaire). On the way to my hostel/hotel, several children came up to my taxicar, motioning for money. I did the Thai/Indian palms-together motion, saying "Namaste," and they left me alone. The salesmen on the street are far more persistent. Already, I've been propositioned to buy sunglasses and 32 gig memory cards for ten minutes straight. These sellers walk alongside you, sometimes tugging your sleeve gently, thinking that if they follow you for at least 10 minutes, you'll give in and buy their goods. Sometimes, and far less often, a poor woman will tag alongside you, asking for money or food, but they are comparatively less persistent. If you're not inclined to buy something or provide charity, just keep walking, be polite, and after some time, they will move on to the next tourist.

I'm staying at TJS Grand, which is located in a lower middle-class section of Delhi. Everyone here has been very nice, and many people speak at least basic English. The highlight thus far has been getting fresh chai on the street. For just 22 rupees, a hard-working man boils the milk, crushes the cardamom, cuts the ginger, dishes out the sugar, and prepares a wonderful cup of tea just for you. Overall, the food has been quite good. There's a small restaurant near my hotel called "Raffles," which has excellent food. I suggest ordering the combo, otherwise known as "thali" (pronounced "tal-ee"). I had already had some street food, so I ordered naan and sweet lassi, and I think I've found my own personal food combo. I could drink about ten sweet lassis a day and still not have my fill. I also enjoyed having cold coffee in McDonald's, which is a sweet coffee drink.

I am now waiting to have breakfast in the hostel/hotel, and then we will be going to Agra, home of the Taj Mahal, for two days. We've got an excellent tour guide from Gap Adventures who calls himself "Luv." The name actually suits him. He speaks perfect English, is in great shape, and very sociable. He lives an hour and half away from this hostel and had to leave early to get back to his place. That reminds me: traffic. The small cars here compete with tuk-tuks, small motorbikes, and various other methods of transport. At first, the honking seems incessant, but once you realize drivers are honking not out of anger, but to advertise their location, it all makes sense. I have walked through dense traffic and not been scared, but my sister took half a day to adapt. She seems fine now. Walking with me, we received a few stares, as we're obviously out of place with our non-Indian features, but we've never felt unsafe. Some dogs roam the streets, but they all seem docile. Bottles of water are about 15 to 20 rupees, and I recommend picking one up for your hostel/hotel room, as tap water isn't known to be completely safe. If you go into some restaurants, they will serve you a large soda in a cup for just 20 rupees. The exchange rate is about 45 rupees to one American dollar, so while it's possible to spend loads of money on nice lodgings and fancy food, it's also possible to live quite cheaply here.

Breakfast will be served soon, and I don't know if I will have access to a computer at my next stop, but I will try to post again if I can. To more chai, naan, and the simple things in life,

Your humble traveler,
Matthew

Update: this became a 5 part series.  Part 2 is HERE.

Friday, December 10, 2010

Writers as Spies

From Ron Hansen, Santa Clara University professor (The Santa Clara, November 11, 2010, page 4):

Writers have a sense of themselves as spies and observers...Most writers I know fit into society very well and are not instantly recognizable as 'artists,' but most are also ornery, exceptional, and, to a greater or lesser degree, sui generis. Our sympathies will be with outsiders. We are, in Ignatius of Loyola's fine phrase, 'in the world but not of it.'"

More here.

Thursday, December 9, 2010

Guess Who?

Guess who said this?

As far as I’m concerned, it’s a damned shame that a field as potentially dynamic and vital as journalism should be overrun with dullards, bums, and hacks, hag-ridden with myopia, apathy, and complacence, and generally stuck in a bog of stagnant mediocrity. If this is what you’re trying to get The Sun away from, then I think I’d like to work for you.

Hunter Thompson, of course.

Wednesday, December 8, 2010

Random Thoughts: Inflation, Housing, and Marriage

A.

1. The more government spends, the higher the risk of inflation.
2. The higher the risk of inflation, the more likely that prices go up.
3. When prices go up, essential items such as food and housing cost more.
4. When housing costs more, it becomes more difficult for an individual to buy a home.
5. Most individuals prefer to own a home before having children.
6. Most individuals prefer to own a home soon after getting married.
7. When the government makes it more difficult for single adults to buy a home, the most responsible ones among them will delay marriage and children.

[#7 assumes that most individual adults will have either little or no parental financial support when buying a home. It may be more defensible to change "single adults" and "individuals" to "single immigrants," who are probably less likely to be able to rely on parental financial support.]

B.

1. When prices go up, various items may become unaffordable for many families.
2. When prices go up, many families will have to use credit to finance a purchase.
3. The more expensive a product, the more likely a person will rely on credit.
4. Wall Street relies on credit. Without credit, Wall Street would probably have very little influence over the average person's daily life.
5. If you are against Wall Street and big banks, you should also be against credit.
6. If you want to minimize the use of credit, you should oppose rising prices.
7. When any large entity distributes large amounts of money to any area, it tends to increase prices in that area.
8. Government is a large entity that distributes large amounts of money to various areas.
9. The less government spends, the less likely it is to cause inflation and therefore rising prices.
10. Therefore, people who are against Wall Street and big banks ought to oppose increases in government spending.

Update: see link HERE for more on this topic. 

Tuesday, December 7, 2010

James Fallows on Coal and Energy Use

James Fallows, "Dirty Coal, Clean Future," The Atlantic (December 2010):

Overall, coal-burning power plants provide nearly half (about 46 percent this year) of the electricity consumed in the United States. For the record: natural gas supplies another 23 percent, nuclear power about 20 percent, hydroelectric power about 7 percent, and everything else the remaining 4 or 5 percent. The small size of the “everything else” total is worth noting; even if it doubles or triples, the solutions we often hear the most about won’t come close to meeting total demand. In China, coal-fired plants supply an even larger share of much faster-growing total electric demand: at least 70 percent, with the Three Gorges Dam and similar hydroelectric projects providing about 20 percent, and (in order) natural gas, nuclear power, wind, and solar energy making up the small remainder. For the world as a whole, coal-fired plants provide about half the total electric supply. On average, every American uses the electricity produced by 7,500 pounds of coal each year. Precisely because coal already plays such a major role in world power supplies, basic math means that it will inescapably do so for a very long time.

More here. The "green revolution" might peter out unless it creates products that impact coal use.

Monday, December 6, 2010

Random Thoughts of the Day: Observant Edition

1. "Let us touch the dying, the poor, the lonely and the unwanted according to the graces we have received and let us not be ashamed or slow to do the humble work." -- Mother Teresa

2. Next to my building is a small retail store area with room for two tenants. A hookah lounge has filled up half of the space for the last couple of years, but one of the spaces seems to change tenants every six months. Recently, a bartending school moved out and was replaced by a medicinal marijuana clinic. It's very nondescript from the outside, so I knocked and said hello. Two people, one male, one female were present. There were several very comfortable looking white couches. A large television was playing a Dave Chappelle movie or show. Here's a paraphrased version of the conversation:

Male: Do you have a license?

Me: No, I'm a neighbor, just saying hi. Most tenants move out after six months, so I just wanted to see who had moved in this time.

Female: [She was friendly and said she hoped to be here longer than six months, etc.]

Male: [Asked me for my business card after I said I was a lawyer. I produced my business card. He still didn't look very happy. For some reason, people tend to think I'm either a cop or a nice target when they first meet me.]

Ah, the wonders of California. Anyway, I wonder if this business lasts more than six months. I find it a little weird that the new businesses that tend to move in have some connection to legal drugs (e.g., booze, MJ, nicotine, etc.).

3. I have never seen so many vacant buildings in downtown San Jose, California--and I was here during the dot com bust. It is becoming clear that this recession will impact Silicon Valley for at least another year, if not longer. Meanwhile, the last of the residential five-year ARMs are coming due in 2012. Hard to see a recovery before then.

Also, according to a CBO slideshow presentation, the unemployment rate won't go below 6% until around 2014-2015. The CBO is an independent, non-partisan government agency.

Sunday, December 5, 2010

Simpsons Episode Tonight is a Must-See

Tonight's episode of The Simpsons (the X-Mas special aired on December 5, 2010) was an instant classic. I am so happy.

Most Sundays, I sit in front of the television for the only show I even consider watching. Usually, it's an average episode, but I continue to keep the faith, because the Simpsons will surprise you. This Sunday, my faith was rewarded. Hallelujah.

Friday, December 3, 2010

Where a California Teacher Gets Schooled

There's no sport in debating most K-14 California teachers because it's just too easy. Sigh.


California Teacher 1: Interesting perspective however, why is the average salary of a CA teacher below that of a secretary of a private sector company. Why do education administrators who have less than 4 years of classroom experience earn 3 times that amount and fail to make good decisions about classroom teaching and materials? 80% of a school budget does not go to teachers. Mainstreaming in education has pulled funds in so many directions. The other factor people fail to see is that somehow we began printing materials and textbooks and interpreters for students who do not speak English and creating a system that allows children starting school in kindergarten to reach 8th grade without mastering reading, writing and speaking in English even though they have been in the U.S. for 14 years or more? The printing costs alone could change the funds for education! Why do teachers have to ask parents to donate facial tissue, loose leaf paper, pencils, copy paper, markers, crayons, color pencils, funds for class set of literature, and other supplies in nearly 50% of public schools nationwide? It is not true that half of the General Fund does not make it to education and if it were true, then we are not collecting enough taxes for anything (including education K-12 and beyond). Prop 13 killed funding for education a long time ago. It has been a steady decline of funding for public education and even the Lottery monies never really get to education as they were intended to do when we sold the idea of legalizing gambling.

Teacher 2:
I believe, from conversations I have had with [NAME], that she is basing her facts on both her own experience in the private sector and her experience in education.....


Lawyer:
let's take what [California Teacher] said and break it down logically.

1. She said, the average salary of a CA teacher is less than [an average] private sector secretary. FALSE.

According to the teachers' own union, the average CA teacher makes over $64,000, and receives additional compensation in the form of pensions (usually after just five years) and full medical benefits.

Please cite reliable stats showing that the average secretary in the private sector makes over $64K and is eligible for a pension and full medical benefits. You won't find any such statistics because her statement is incorrect.

2. She said that canceling printing costs for ESL students would substantially increase funds for education. Really? With $40+ billion annually spent on CA K-14 education, it is highly unlikely that ESL "printing costs" are a major problem. Common sense says that textbooks and other materials are bought once and used for many years. I'd love to see total expenditures each year on ESL printing costs. My hunch is that [California Teacher] was scapegoating American citizens who speak ESL in an attempt to shift direction from the fact that 80 to 85% of CA K-14 education funding goes into the pockets of district employees.

3. She said, "Half of the General Fund does not make it to education." FALSE, unless you want to quibble over 48% vs. 50%. Total funding for K-12 education was projected to be an astounding $68.5 billion in 2008-09 (it appears that the teachers' unions were forced to make some concessions, lowering spending projections). In CA Fiscal Year 2008, about 48% of the General Fund went to California elementary, secondary, and higher education. http://www.statehealthfacts.org/profileind.jsp?rgn=6&ind=33&cat=1

Again, people are entitled to their opinions, but not their facts. Isn't it sad how so many teachers don't know how to make a logical, fact-based argument?

Bonus: more here from Bill Baker, Editor and Publisher, The San Bruno Beacon.

Bonus II: Governor Christie also shows us how it's done. More here.

Update in April 2017: to sum her up, "You're bitter but well-read... go teach college." I don't know whether to laugh or cry.

Thursday, December 2, 2010

Gov Workers Not Overpaid?

A recent study claims that government workers are not overpaid when considering their education levels. I laughed out loud. Here are some questions to ask people who take such studies seriously:

1. In the study you cite, please tell me how much money or value the researchers assigned to the much higher job security of public sector workers, who are usually not at-will.

2. Please name 10 major corporations that have long term, unpredictable debts owing to hundreds of thousands of non-working employees. Within these 10 major corporations, how many of them are able to shift 100% of the debts to taxpayers?

(Note: major banks do not count because 1) the debts aren't owed to non-working employees; and 2) unlike gov employees, banks must pay back all taxpayer monies, i.e., the taxpayer has provided a loan, not a grant that causes higher taxes.)

3. You seem to gloss over the additional compensation provided to government employees in the form of pensions. Do you know what percentage of private sector workers under the age of 55 receive pensions? If so, please list the percentages of under-55 gov workers and private sector workers who are eligible for pensions.

Bonus: did the study provide any additional weight to the gov worker's guaranteed pension vs. a private sector worker's non-guaranteed 401k? If not, do you believe a retirement guarantee is worthless?

4. In the private sector, how many entities are able to pass along their higher costs and COLA to taxpayers instead of cutting spending, jobs, or salaries?

5. Let's assume that gov workers, on average, have higher levels of education than the general population. Outside of universities and university-backed research labs, what useful inventions have government workers provided to the general public vs. private sector workers with similar education levels, such as those who work for Google, eBay, GM, Intel, etc.?

Click here for more on these issues.

Wednesday, December 1, 2010

Global Budget Issues

The Wilson Quarterly is my favorite journal. Douglas Besharov and Douglas Call's article on our budget issues is a good example of the kind of brilliant writing often found in the WQ:

[M]any government pension and health care systems for the elderly worldwide are now little more than Ponzi schemes that are running short of new “investors.” Aggravating the budget situation is the rapid rise in health care costs caused by the development of new—and expensive—medical technologies, drugs, and treatment procedures. The math is simple: Projected tax revenues are not nearly sufficient to cover future obligations—with the imbalance growing over time as larger shares of the populations in these countries begin to receive benefits. The U.S. Social Security and Medicare trust funds are giant and growing IOUs from the federal government to future recipients. Last year, the government “owed” the trust funds about $4.3 trillion. (These IOUs are dutifully printed at the Bureau of the Public Debt in Parkersburg, West Virginia, and placed in a filing cabinet. Not exactly Al Gore’s lock box.)

To read the full article, click here.

Tuesday, November 30, 2010

Best Horror Movies (and Comedy Movies, Too)

Turn off those lights if you dare...

1. Wait Until Dark (1967)
2. The Other (1972)
3. Carrie (1976)
4. Stir of Echoes (1999)
5. Night of the Hunter (1955)
6. Psycho (1960); Dial M for Murder (1954); Strangers on a Train (1951)
7. Pan's Labyrinth (2006), The Devil's Backbone (2001)
8. Cape Fear (1991) and (1962)
9. Rosemary's Baby (1968)
10. Thirst (2009, Korean)
11. From Dusk Till Dawn (1996)
12. The Village (2004) [I am in the minority on this one--most people disliked this film.]
13. Nightmare on Elm Street (1984)
14. The Eye (Hong Kong) (2002)
15.  Black Mirror (2011-2016, series)
16.  Suspiria (1977)
17. The Mermaid: Lake of the Dead (2018) (Russia) [Imagine The Shape of Water (2017) but starring an evil alien and crossed with Homer's The Odyssey ("They sit beside the ocean, combing their long golden hair")]
18. Under the Shadow (2016, Persian)
19. Requiem for a Dream (2000) [More psychological thriller than horror film, but still the most traumatizing movie experience I've ever had.]
20. The Autopsy of Jane Doe (2016) (horror/mystery)
21. The Cabin in the Woods (2011) (horror/comedy) 
22. His House (2020) 

Bonus: below is a list of excellent comedy movies and series, in no particular order:

1. A Man Called Ove (2015)
2. Clerks (1994)
3. Chasing Amy (1997)
4. My Cousin Vinny (1992)
5. Wedding Crashers (2005)
6. The IT Crowd (British series) (2006)
7. Derry Girls (series) (2018)
8. Fleabag (series) (2016), starring Phoebe Waller-Bridge 
9. Get Duked! (2019) 
10. Black Books (British series, 2000-2004)
11. All My Friends Are Dead (Wszyscy moi przyjaciele nie zyja) (2020)

Bonus II: my favorite romantic scenes are below, in no particular order: 

1. First Love (2018, Philippines), Bea Alonzo, Aga Muhlach in bookstore singing a duet.

Monday, November 29, 2010

Interesting Viewpoint on Terrorists

Humberto S., comment on Yahoo, 11/6/10: 

Most of these Muslim terrorist leaders were either born in the West, or studied and worked in the West for years. 

That's not a coincidence. 

For many of them, the cultural shock was too much. Raised in homes where certain values were held as sacred, realizing the society around them held such values as "barbaric" or "backwards" made them bitter. 

In a way, it's similar to the story of some KKK and Neo-Nazi leaders, who were young Liberals working with the needy in poor areas. They expected to be treated as saviours, and all they got was mistrust and getting robbed and beaten. 

In general, it's the other people's prejudices, when aimed at someone who's idealistic, what turns good intentions into never-ending hatred. 

It's nice to see someone make a coherent and interesting comment on a Yahoo message board. Usually, there's nothing there but mind-numbing tripe and name-calling. In case you're interested, my views on locating likely terrorists can be found here.

Saturday, November 27, 2010

Is Netflix Ignoring the Hearing Impaired?

Stan Taylor, bless his heart, nails Netflix (NFLX) for its apathy towards the hearing-impaired community:

"Hearing-impaired get no love from Netflix "

So Netflix will be charging more for mailed movies? However, there is no word that they will fully provide CC and SDH (closed captioning and subtitles for the deaf and hearing impaired) on their downloads.
Nor is there any information suggesting they will waive the increased cost for mailers for the deaf and hearing impaired until they can provide CC and SDH. The Americans with Disabilities Act should protect hearing-impaired people from a company that just doesn't seem to care about them.

(From SJ Mercury News, letters, November 26, 2010)

I have a love-hate relationship with Netflix. I love their DVDs and movie recommendations, but I cannot understand why they won't get their act together when it comes to online captioning. Many online video outlets already offer online captioning, including Hulu. In 2009, Netflix CEO Reed Hastings claimed that Hulu didn't offer captions. His comment really irked me, because Hulu did offer captions, and the fact that he got it wrong indicated online captioning wasn't even on his radar screen. (More here on that particular exchange.)

But Netflix isn't behind just Hulu--it's also behind YouTube, which offers online captioning on many of its videos. If you want to see the difference captioning makes in the lives of the hearing impaired, watch this YouTube video. It's only 1 minute and 28 seconds, but it will give you excellent insight into online captioning. The participants point out that online captioning also exposes content to a foreign audience that wants to learn English. I'd go a step further--Google has amazing translation services and tools, which means that eventually, every single show can be put online and watched by anyone, anywhere. Without captioning, however, most of those shows, including amateur user-made content, will be inaccessible to the majority of viewers. The loss of potential markets aside, why would Netflix choose to exclude the hearing impaired community when Hulu and YouTube are able to be inclusive?

Netflix's preference that its viewers watch films online certainly saves the company money on postage, but at what price to its viewers? Someone like me--severely hearing-impaired since birth--relies heavily on Netflix for entertainment. Since I function best in one-on-one situations where I can focus on a single speaker, I tend to feel lost during common social activities, which are usually group-based. For example, dance clubs and bars, which are noisy anyway, are terrible places for me and other hearing impaired persons who want to socialize. Now that Netflix is moving from DVDs to online streaming without captions, does it realize it is making another form of socialization harder for the hearing impaired?

Making matters worse, ordering a Netflix DVD isn't any guarantee that it will be captioned. You'll notice some Netflix DVDs are colored gray. Those plain gray DVDs are made specifically for Netflix. These DVDs sometimes lack captions, because Netflix doesn't require them. For example, I still haven't seen Clint Eastwood's Gran Torino. I know it's supposed to be a great film, so when my first gray-colored Gran Torino DVD didn't have captions, I ordered another one. The second one had no captions. Being the persistent type, I got another one. Still no captions. I finally tried to watch it without captions, but Clint Eastwood has a very soft voice, and it's impossible for me to hear him without captions.

To be fair, it's not just Netflix that ignores the hearing impaired community. During Cisco's most recent annual meeting, CEO John Chambers indicated that "66 percent of the world's mobile data traffic will be video by 2014." (More here.) He did not mention the issue of online captioning, nor did he seem to consider that its absence might impact web traffic in the future. However, if senior citizens--who tend to lose their hearing over time--cannot fully participate in online activities, wouldn't online retailers and businesses lose a large group of potential customers?

For instance, let's assume that an online commercial has sound and speech--why would the company who paid for the advertisement want to exclude senior citizens from its reach? Even if they don't buy the product for themselves, most senior citizens have children and grandchildren, don't they? Let me give you an example of what Cisco and other online companies are missing. Make sure you have your computer's sound off or your speakers silenced. Now check out this Cisco advertisement. It's not a bad commercial, is it? Now go back and look at the commercial with the sound on. Amazing, isn't it? It's easily one of the best corporate commercials in 2010, if not the best.

Most hearing impaired people have some ability to hear sound (though not all speech). With captioning, hearing impaired people and senior citizens can mentally fill in the parts they miss and enjoy the full experience of television shows and online advertising. But let's set aside our altruistic side for a moment and say you don't care about the disabled, the hearing impaired, the deaf, and senior citizens. Fine. Yet, we all know people who watch videos and surf the web during work. If advertisers made it easier for employees to watch commercials and videos in a way that didn't alert their managers, perhaps productivity would decline, but online exposure would increase. (I said upfront I was ditching the moral choices in this particular argument, and once you've already accepted ditching the disabled and the deaf, time-theft seems almost vanilla.)

Overall, the fact that Netflix can't keep up with Hulu and YouTube should concern not just customers, but any company interested in acquiring Netflix. If Netflix can't handle online captioning, what else can't it handle? And why would any company consciously tarnish its public image by ignoring seniors, the disabled, the hearing impaired, and the deaf?

Disclosure: I currently own fewer than five shares of Netflix (NFLX), but my holdings may change at any time.

Wednesday, November 24, 2010

Accuray's Annual Shareholder Meeting (2010)

[Note: the third paragraph from the end of this article discusses the TSA's full body scan machines from the perspective of a medical doctor and a Ph.D. in radiation physics.]

After I attended Accuray’s (ARAY) annual shareholder meeting, I had a chance to tour its Sunnyvale campus, where I learned more about CyberKnife. CyberKnife is a radiosurgery tool that attacks and destroys cancerous tumor cells using highly precise radiation beams. CyberKnife is much less invasive than “scalpel” surgery. Its high accuracy (hence, the name Accuray) allows patients to minimize exposing their healthy organs and body parts to radiation. I rarely feel optimistic after shareholder meetings during this Great Recession, but Accuray gives me hope not only for its own future, but the future of medicine.

THE ANNUAL MEETING

Accuray’s annual meeting took place in a well-known law firm in Palo Alto. Shareholders were offered orange juice, coffee, various fruits, bagels, and pastries. About 25 people attended the meeting, including founder Dr. John Adler. Prior to the meeting, Dr. Adler seemed well received by most Board members, who engaged him in friendly conversation.

President and CEO Euan Thomson opened the meeting by introducing the Board of Directors. There was one Asian and one female on the Board.

General Counsel Darren Milliken, a Santa Clara Law graduate, set forth the shareholder proposals and asked after each proposal if shareholders had any questions about them. (Some companies make the mistake of not allowing shareholders to ask questions or make comments during the introduction of shareholder proposals, which makes a farce of the voting process. Accuray did not make this mistake and followed best practices.)

After the formal portion of the meeting concluded, Accuray said it would not have an open Q&A session; instead, if shareholders had questions, they were welcome to ask them one-on-one with any executive team members or Directors. I have attended many shareholder meetings, and it’s highly unusual for companies to avoid an open Q&A session. (One notable exception is Cisco (CSCO), which asks shareholders to write down their questions on index cards, but its meeting is much larger and not restricted to shareholders.)

When a shareholder–not me–protested the Q&A format, Accuray said that its 1-on-1 approach was common in some business meetings. Instead of calming the waters, this explanation prompted Dr. Adler to deliver a verbal smackdown. This is the second year in a row that Accuray has attempted to avoid a public Q&A session, only to be trumped by the Adler family. (Last year, it was Mrs. Adler who delivered the fireworks.)

Now, before I tell you about Dr. Adler’s comments, it is important to note that Dr. Adler left Accuray and now works for a competitor, Varian (VAR). Dr. Adler said that he had heard people speak of their “disgust” at the way they had been treated by Accuray’s management. He said that Accuray is a “reflection of me and Marilyn [his wife], who named this company,” and he was “dismayed by [Accuray's] deteriorating business reputation.” Dr. Adler did not mention specific incidents, but lamented what he felt was a general lack of passion on the part of the executive team.

I usually have one or two questions for management, centering on Warren Buffett’s “wide moat” analysis. Accuray allowed me to ask my question, but directed me to the CFO. I read from page 29 of Accuray’s 10K, which lists Accuray’s various competitors, and I asked Accuray about the competitive advantages of its products. I felt a little guilty about asking CFO Derek Bertocci a technical question, but he actually answered it very well. After he was done, CEO Thomson jumped in and explained that Accuray’s CyberKnife uses over 100 different positions and can correct for any patient movement. I asked if other products could do the same thing–he responded, “Not to the extent of the CyberKnife.”

After the meeting, I had a chance to talk to CEO Thomson one-on-one. He said that he had a great deal of respect for Dr. Adler and his achievements. He also informed me that the Board (including CEO Thomson) "unanimously" voted for Dr. Adler to stand for re-election, and Dr. Adler chose to resign. CEO Thomson politely explained that it wasn’t unusual for a founder of a company to feel less involved as time passes. As a company matures, he said, it tends to listen more to its customers and persons with business-oriented perspectives. Consequently, said Mr. Thomson, it’s not unusual for a founder’s “personal vision” to be changed. The trick, CEO Thomson said, is to progress forward “without losing passion.”

You might wonder how Dr. Adler, a genius who has advanced radiosurgery by light years, and CEO Thomson, an accomplished Medical Physicist with a Ph.D. in radiation physics, can both mention passion and yet reach different conclusions about its levels at Accuray. After spending time with both men, my theory is that the difference is cultural. Dr. Adler is a very direct, charismatic man who commands attention wherever he goes; in contrast, CEO Thomson is British and more low-key. While it is hard to get a word in edgewise when Dr. Adler speaks, CEO Thomson encourages others to speak when he sees they have something to say. In short, both men have different communication styles and come from different cultural backgrounds.

CEO Thomson and Dr. Adler are clearly passionate, competent, and knowledgeable, but their personalities could not be more different. Having lived in England and the States, I can see the cultural differences very clearly, but Americans who've never crossed the Atlantic must have also heard of the famous British stiff upper lip, where Brits are expected to handle adversity and pain with stoicism. Such stoicism--generally speaking--tends to promote a culture of outwardly reserved emotions. (Side note: when I was jogging in Hove/Sussex as a teenager, I remember waving at various people and saying hello, only to have all the Brits in my path quite shocked that I was a) crazy enough to be exercising in the cold weather; and b) greeting strangers along the way. No one waved back or said hello.) Some Americans may not know it, but we are some of the friendliest people in the world. Unlike Europe, our ability to avoid years of war on home soil has allowed our culture to be generally more open and friendly.

Yet, it is not surprising that Dr. Adler would see others as less passionate–indeed, almost anyone would appear less passionate when compared to him. Within the field of medicine, Dr. Adler is the closest thing to a rock star. When I posted on my Facebook wall about the CyberKnife, I almost immediately got the following comment: “I actually had the CyberKnife done on a tumor by Dr. Adler himself (the inventor). It is amazing, sci-fi, and scary at the same time. He is AWESOME!” How many doctors can garner such adoring fans?

POST-ANNUAL MEETING

A few days after the annual meeting, CEO Thomson was kind enough to take me on a tour of the company and, along with Dr. Omar Dawood, teach me more about CyberKnife. Before I tell you about my introduction to CyberKnife, I will summarize a meeting I had with Accuray’s general counsel, Darren Milliken.

I have never heard anyone at Accuray speak negatively about Dr. Adler, but Accuray continues to receive major criticism from Dr. and Mrs. Adler. I asked the company’s lawyer, Darren Milliken, to discuss his thoughts on Dr. Adler’s criticism of Accuray.

Mr. Milliken said that Dr. Adler had left Accuray to pursue other interests. Moreover, under SEC and federal rules, when a director resigns, a company and director must disclose any disagreement on issues surrounding the director’s departure. Mr. Milliken said that Dr. Adler not only failed to raise any issues of disagreement with the company’s 8K filing relating to his departure, he actually approved of the 8K in an email to Mr. Milliken. According to Mr. Milliken, “If there was a disagreement with Adler, we would have filed an 8K [as the law requires].” No 8K was filed relating to any disagreement with Dr. Adler by Accuray.

Mr. Milliken also informed me that Accuray’s corporate governance committee and its Board of Directors recommended that Dr. Adler remain with Accuray as a Director. In fact, according to Mr. Milliken, Dr. Adler stood for election as a Director–even though he could have opted out–only to resign shortly after he was elected.

I asked Mr. Milliken about his opinion of Dr. Adler. Mr. Milliken said, “What he invented here is over-the-top incredible, [and] John [Adler] invented that, and that’s amazing to me.”

I then went to meet CEO Thomson and Dr. Dawood to learn about CyberKnife. I have never been so impressed with a medical device in my entire life. Both CEO Thomson and Dr. Dawood were able to explain the CyberKnife to me in about an hour, even though I have no medical training or expertise. The main points I learned are as follows:

1. According to Accuray, competitors’ products rely either on radiation therapy or a Gantry-based system, which is not as focused or accurate as Accuray’s CyberKnife. For example, let’s say you want to treat a cancerous tumor in your prostate. Well, if your body parts around the prostate are still reasonably healthy, you probably want to minimize the level of radiation you receive. According to Accuray, the CyberKnife is able to pinpoint the location of the tumor and deliver hundreds of quick, highly-concentrated doses of radiation directly to the tumor itself--leaving non-infected parts alone.

According to Accuray, other products are not able to move around to the same extent as the CyberKnife; as a result, the company believes that CyberKnife is more accurate than the competition, which minimizes the risk of collateral damage to a patient.

(I said the CyberKnife compared to Gantry-based systems sounded like the difference between a sniper and cluster bombs. They didn’t disagree with me, but they said they preferred not to use military terminology.)

2. What’s amazing about the CyberKnife is that its software is able to locate the tumor automatically. Think about that–there's no one using any levers or buttons to sync up data–the CyberKnife takes the pictures, finds the tumor, and attacks it automatically. (I am still enthralled about the idea that a machine can do that without major and constant human intervention.) Because the process is mostly automated, Accuray believes that using the CyberKnife tends to reduce human error.

3. According to Accuray, the CyberKnife’s higher accuracy allows patients to receive fewer treatments to destroy cancerous tumors. For example, using radiation therapy instead of radiosurgery might require forty separate treatments. According to Accuray, most patients need only one to five CyberKnife treatments. Thus, if someone is working, or is located in an area far away from a hospital, or has other responsibilities to handle, the CyberKnife reduces forty treatments/fractions to perhaps five. The fewer number of treatments may also result in cost-savings for insurance companies and Medicare, which supply approximately 90% of reimbursement for CyberKnife treatments. (According to another person within Accuray, Aetna and Blue Shield of California have already seen the value of CyberKnife.)

I will leave you with an interesting anecdote. The TSA has received a lot of flak for its handling of travelers who “opt out” of its backscatter radiation body scanners. I asked CEO Thomson and Dr. Dawood what they thought about the risk of radiation from the airport full body scanners. Both doctors indicated that there is currently not enough information to make a valid judgment about the safety of the full body scanners. Although we receive radiation in small doses almost every single day, much of it is “non-ionizing.” A cell phone, for example, has non-ionizing radiation; however, the TSA scanners use ionizing radiation. Ionizing radiation can alter a person’s cells to the point where the cells cannot recover. In contrast, non-ionizing radiation will jumble or vibrate your cells but will not permanently alter them. More here. In case you're wondering, I'll be opting out when I travel.

Disclosure: I currently own about 400 shares of Accuray (ARAY); however, my holdings may change at any time. Other than ARAY, I do not own individual shares in the other companies mentioned in this article.

I have emailed Dr. Adler and Mrs. Adler several times and have done an interview with Dr. Adler in the past. The 2010 meeting was the first time I met Dr. Adler in person. I have a tremendous amount of respect for Dr. Adler, and I feel lucky to know him.

Tuesday, November 23, 2010

American Education is Failing our Kids

I criticize teachers and their unions. Both are directly or indirectly responsible for the difficulty in changing our current public education system, which seems designed to harm kids at the top and make sheep of the rest. Yet, some people insist that the problem with public schools is a lack of funding when the facts indicate otherwise:

"Per student, we now spend more than all but three other countries—Luxembourg, Switzerland, and Norway—on elementary and secondary education. And the list of countries that spend the most, notably, has little in common with the outcomes... (The same holds true on the state level, where New York, one of the highest-spending states—it topped the list at $17,000 per pupil in 2008—still comes in behind 15 other states and 30 countries...)"

More here.

Year 2010: Americans on the Stock Market

I found two interesting anonymous comments on Yahoo recently:

1. "The U.S. stock market is becoming like the Japanese stock market. If you had $40,000 in the Japanese stock market in 1990, you'd have $10,000 today. [Note: I have no idea if this is true.] There's long term "investing." Expect the U.S. stock market to rally every once in awhile, and continue to fall for the next 20 or 30 years. Wall Street is just a big casino. At least you get free beer in Vegas when they take your money."

2. "How can the small investor participate with any level of confidence in a market controlled by hedge funds and other large institutional investors utilizing program trading capable of manipulating the market? Additionally, small investors make buy and sell decisions with information made available to large investors earlier in the game. Who can they turn to for objective advice and opinions? Standard & Poors? Moodys? Audited financial statements? The events of 2008 made it quite evident these were completely unreliable. How could firms like Bear Stearns and Lehman Brothers, big banks like Wachovia, Washington Mutual and Countrywide go down the drain so quickly when just months, weeks and even days before, these institutions were considered sound investments by the "experts"?

But, first and foremost, how can anyone hold stocks believing they are investments when even the experts refer to that as a gamble or a bet? Long-term investing is dead. And while the pros may lament the departure of the small investor from the stock game, it was them who caused it to happen. This game is not played on a level field. The average person is better advised to keep their money safe. Slow growth is better than no growth or the loss of principal."

Monday, November 22, 2010

Random Thoughts: 2010 Political Edition

1. Almost all conflicts are because of land, money, and/or women, or the protection thereof. Religion, race, etc. are just atavistic proxies that help human beings justify violence and exclusion in order to protect land, money, and/or women.

2. I predict Hilary Clinton will run for President in 2012.

3. I am still sad that Russ Feingold lost the recent Wisconsin election. He was the lone Senator who voted against the Patriot Act in 2001. [Senator Landrieu (D-LA) abstained.]

In 2006, the following Senators voted against the Patriot Act's renewal:

Akaka (D-HI) Bingaman (D-NM) Byrd (D-WV) Feingold (D-WI) Harkin (D-IA) Jeffords (I-VT) Leahy (D-VT) Levin (D-MI) Murray (D-WA) Wyden (D-OR)

3. The more I learn about Tom Harkin (D-IA), the more I respect him. (What is it about Iowa that seems to produce reasonably progressive people instead of the scorch-the-earth-to-change-the-world California types?)

Saturday, November 20, 2010

Ken's Genius on Display

Ken has written many amazing posts, but this one takes the cake:

http://www.popehat.com/2010/10/28/trust-in-the-devil/

Giving the government the power to do things we like tends to give the government the power to do things we don’t like. In a perfect world, conservatives would see that reposing uncritical trust in prosecutors and cops ultimately promotes the government’s power to regulate their businesses and their health care. Liberals would see that trusting regulators and bureaucrats increases the government’s power to jail citizens upon flimsy evidence.

Maybe one day more people will meet in the middle and recognize that the appropriate stance of an informed citizen towards all elements of the government is vigilance, skepticism, and firm support of individual rights against the state. Perhaps more people will agree that the correct response to any government attempt to control the individual is to question: “What evidence do you have to support this? Is it really believable? Can it be trusted? Is it enough?”

Oh, the lucidity.

Thursday, November 18, 2010

RIP Terry Vierra

RIP Terry Vierra, 1966 high school wrestling state champion, Westmont High wrestling coach, all-around great guy, and one of the most amazing, down-to-earth people I've ever met.

My heart goes out to Terry's family and his brother, Mitch.

George Carlin on Manifest Destiny

George Carlin has got to be the most funny, stinging, and subversive comedian in American history:

We were founded on a very basic double standard. This country was founded by slave owners who wanted to be free. Am I right? A group of slave owners who wanted to be free. So they killed a lot of white English people in order to continue owning their black African people, so they could wipe out the rest of the red Indian people and move west and steal the rest of the land from the brown Mexican people, giving them a place to take off and drop their nuclear weapons on the yellow Japanese people.

You know what the motto of this country ought to be? "You give us a color, we’ll wipe it out."

--George Carlin

Wednesday, November 17, 2010

Debate: What is Military Adventurism?

THE BOONDOCKS © Aaron McGruder. 
Dist. By ANDREWS MCMEEL SYNDICATION. 
Reprinted with permission. All rights reserved.

November 11, 2010 was Veterans' Day. Some random thoughts and opinions:

1. Calvin Coolidge, the 30th President: "A Nation that forgets its defenders will itself be forgotten."

2.
I do not consider someone's unquestioning willingness to die for a cause or country to be worthy of respect in and of itself. To be worthy of praise, I need that willingness to die to be tied to self-defense. Otherwise, I'm not sure we are helping our soldiers, our safety, or our worldwide reputation.

I understand that a soldier's willingness to die is a necessary component of self-defense. However, I view such an attitude--the willingness to murder your fellow man--as a necessary evil, and I do not see much sense in praising a necessary evil. Therefore, I neither condemn nor praise necessary evils.

War is sometimes necessary. We need soldiers, and we need to make sure we give them the tools they need to succeed. Today, the U.S. does not have a mandatory draft, so everyone voluntarily chooses military service. 
 
 
3. If you are in charge of American military personnel, you failed us on 9/11; you failed us again after 9/11 by invading the wrong country; and you are failing us now because your agency is designed for wars against countries rather than smaller, more fluid organizations.

Onward to the Facebook debate on military adventurism and the scope of a thinking person's patriotism:

Lawyer: At work in the private sector so the military gets the taxes it needs to exist. Our modern-day military creates no net revenue and causes our country to lose billions of dollars each year. Without the private sector, there would be no military. Thank someone who owns a small business or is working in a non-government job today.

Also, if you fought in WWII or any war prior to Vietnam, thank you. Once we reach the Vietnam era, however, it's unclear whether any war has created safety for Americans on American soil.

Write your government and demand that we bring our soldiers back from Iraq as soon as possible. Why are we leaving so many young Americans in harm's way when it's unclear whether they are increasing our safety?

(I am still undecided about wars in Afghanistan and Pakistan. As far as I know, none of the 9/11 hijackers lived in either country or received training there that helped them attack America. The terrorists came mostly from Germany. It's also unclear why Pakistan and Afghanistan are America's problem rather than India’s and Iran’s. At the same time, whenever I see pictures of what the Taliban has done to innocent Afghani civilians, especially young girls, my trigger-finger gets itchy.)

Hilarious Buddy: Danger, Will Robinson. Danger.

Judah: Government workers pay taxes too. But since you wrote this on Veteran’s Day to be controversial, I don't suppose that will matter.

Lawyer: @Judah: if I give you 100 bucks and you give me back 30 bucks, I'm still out 70 bucks, right? You've basically taken 70 dollars from me, and all you've done is refund me back my own money. So gov workers don't really pay taxes--they refund money paid to them by the private sector. If they're not creating something, gov workers are causing financial losses and taking money out of the private sector whenever the federal gov provides loans to states and/or fails to maintain a balanced budget without increasing taxes.

And by the way, I said military personnel create no revenue. I didn't say they failed to pay taxes. In any case, whether we spend 5 trillion dollars or 1 dollar on the military, it's all irrelevant unless the military keeps us safe here at home. If our commanders fail to keep us safe at home, we are paying money for nothing while losing some of our best and brightest young people.

Judah: Government workers get paid by the government, the government gets its money from taxes on the private sector and some other sources that we can agree to leave out, those taxes come out of your pay, you are paid by your clients, your clients earn money from their businesses, and so on, and it's non-trivial to determine where the money actually comes from. But if your argument is that the military should be thankful to you because you pay taxes, then you need to admit that taxes are taken out of everyone's pay, and no one has any say about how they're spent. It may be government money to start with in some cases, but from the point of view of the person getting the paycheck, it's identical. You haven't done anything extra that a mailman, or a federal judge, or a park ranger hasn't done. From your pay, you contribute to the running of the government, which includes the military.

Lawyer: @Judah: you could not be more wrong. I created a business. In order for my business to survive, I have to create something either new or more effective than existing services or products. The same philosophy applies to almost every private company, especially here in Silicon Valley--either they innovate or die. In contrast, all the government has to do is exist.

Throw in the toxin of government unionization, and we have a financial miasma that is made worse whenever anyone praises non-creative government workers. With respect to the military, I fail to understand how any war since Vietnam has helped Americans on American soil. It seems like we've lost a lot of American lives and killed a lot of civilians for nothing. If you want to praise that as equivalent to creating new services and introducing more efficient products into the marketplace, go right ahead.

Judah: It sounds like you're suggesting that your business *must* contribute something, or it would cease to exist. Why wouldn't that be true of the military?

Lawyer: B/c government workers and entities receive much of their revenue from the act of printing money, which requires no creation or innovation. Again, it's nonsensical to compare someone in the private sector--which has to actively attract money from voluntary exchanges--with government workers, who do not have to actively attract money using intelligence or innovation. In contrast to someone like me, all a gov worker has to do to get paid is a) unionize; and/or b) vote in their preferred politician. Obviously, I can't do that, and neither can most non-banking businesses. It appears both major political parties will continue printing money to give to the military. Thus, we are left with a military that doesn't seem to keep us safe on our own soil while simultaneously costing us trillions of dollars.

The difference between the private sector and the public sector is that non-banking businesses need to create something or provide something more efficiently to get paid. From this creative destruction comes almost all progress, including Google, eBay, or any small business. In the case of gov entities, because politicians are in charge of a massive amount of money, and the fed gov can print money when it runs a deficit, the normal requirement to be useful does not apply. They just need to vote once a year to keep their jobs. And that's exactly what they have done in California.

But don't listen to me--read David Walker's book, Comeback America. He has an entire chapter on the military that is a must-read.

TX Buddy: Geez, way to ruin Veteran's Day :-P

Lawyer: @TX Buddy, hope you're doing well now that Texas has In N’ Out :-) I'm just trying to introduce a different viewpoint. I despise conformity, and holidays tend to bring out the worst cases of unthinking herd mentality on Facebook.

It's always sad to see people base their opinions on propaganda instead of logic and facts. Logically, if we're anti-war and view the military as a necessary evil (not heroic), our soldiers get to stay safer and live longer. All this changes if there is a direct threat to Americans on American soil, and almost all such threats come from domestic residents, not foreigners who are poor, who cannot speak English, or who cannot blend into American society.

Judah: I don't understand your assertion that the military has failed to keep us safe on our own soil, but I never intended to challenge your assertion that the benefit of military action in recent years is difficult to quantify at best.

Today is Veteran’s Day, and what we're honoring today isn't the military, it is the men and women who have served in it. You don't think the military has provided us much benefit in recent years, and you don't think that the individual members of the military have contributed much. They aren't attracting money, they aren't growing the economy, and whatever they're doing on a day to day basis is done in service of a mission you find questionable.

You say that it's nonsensical to compare private sector employees to government workers. In the case of the military, you're spot on. A soldier, airman, sailor, or marine may not be creating wealth, and your taxes pay at least part of their salary, but they also fight and die in their jobs, when they are ordered to.

You and I, and all the creative private sector employees you champion, we don't have to do that. And we don't get a federal holiday, but we're celebrated every day of the year. Your assertion that what matters is creating money-- growing the economy, generating the revenue that pays the salary of the military--is a celebration of the private sector.

No one should have to thank you.

Lawyer: @Judah: if keeping us safe on American soil involved only killing people and dying when ordered to do so, then your statement would be correct. But safety is multifaceted, and it usually includes a thriving economy. For example, the more men who are unemployed, esp young men, the higher the risk of domestic crime. Long story short, without a thriving private sector, we risk higher domestic crime and unrest, which sometimes leads to coups and pogroms. Thus, when someone in the private sector goes to work, s/he is helping keep us safe at home. It's unclear why we shouldn't thank people who maintain our way of life and who keep us safe here at home.

Moreover, it is unclear whether military operations abroad protect us from collapse from within. Indeed, history tells us that pro-military countries tend to collapse. If true, when we praise any part of the military that is not directly useful to domestic security, or when we view military members as always heroic (and therefore unworthy of any criticism, especially towards higher level military leaders), we plant the seeds of our own downfall.

You focus on death, and you view a soldier's willingness to die as deserving of thanks, but a country can die, too, and death can come in many different forms. For instance, one way to destroy a country is to destroy its economy by providing too much money or printing too much money to give to non-useful government workers. Another way is to implement poor fiscal policies, such as excessive or non-useful military spending. It is unclear why anyone who is part of an inefficient machinery of military adventurism deserves thanks, unless--like private sector workers--they are keeping Americans safe here at home. I do not believe our military is focused on keeping us safe here at home, because I believe that our biggest threats come from English-speakers who can blend into society, not foreigners. Richard Reid, Vincent Padilla, the NY car bomber, and almost all recent terrorism attempts against America support my belief.

Americans ought to consider Veteran's Day as a period of sadness or stoicism rather than a time to praise or thank our soldiers for their military adventurism. When that attitude shift happens--as it has in countries such as modern-day Germany--we will have a safer country as well as safer soldiers and young men and women.

Judah: And you focus only on the economy. When I focus on fighting and dying in the context of the military, I am focusing on the job that they are asked to do. When you focus on the economy, you are focusing on a job that is someone else’s to do and decrying the military's failure to do it. If you think the military is overfunded, the blame for that lies with the organization that sets the funding. If you think the military mission diverts attention and resources from economic problems, the blame lies in the hands of the politicians that set the agenda (I will concede here that at the top levels, the military has some power in setting its agenda).

The military is not the entire government, and if the economy becomes the death of the country, there will be others far more responsible for it than veterans.

Lawyer: @Judah: you may be correct, but unlike you, I do not consider the willingness to die in an era of military adventurism as heroic or deserving of praise.

Pointing to corrupt politicians--who also deserve blame--is a diversion. Can’t one condemn corrupt politicians while refusing to plant the cultural seeds for further military adventurism? I believe that when you praise the military or any part of it during a time of wars that do not help keep Americans safe on American soil, you do not help soldiers, civilians, the economy, or the cause of peace. In fact, it is more reasonable to argue that your praise helps maintain America’s cultural ease towards war.

You end your comment with statements that are true, but hyperbolic. Of course the "military is not the entire government." However, when the military is between 20% to 30% (when including black ops, foreign military assistance, and the CIA) of our federal budget, it should not be immune from criticism or responsibility for our current economic woes. It is also not a valid argument to say that b/c "X" is not the primary factor of a problem, we must focus on other contributing factors.

At the end of the day, our country is safer now because of our private sector workers’ diligence and dedication to improving the economy, not because of our military commanders. Today, I praise all of the private sector workers who have not rioted or acted violently against others and who have diligently continued looking for work, paying their bills, and taking care of their families. Thank you. Keep your chin high. You are the people who are holding up this country, and if we lose you, we will collapse from within.

Eric: The military is expensive and, it can be argued successfully, I think, that we have too many military obligations overseas. You would be surprised how many countries we have some form of military involvement in. The other day, I heard it was over 100 different countries. Is that really necessary? Well, that's arguable. One might suggest that, if it weren't for us, the world we be a much less stable place. Much less stable for trade, so that small and large businesses in the United States and elsewhere would not be able to do business.

Certainly, the military kept us safe during the cold war. If we had been week and had no military, would not the Soviets have taken us over? Since the fall of the USSR, one can argue that it was not as necessary to keep a strong military. Or is it?

Was Iraq necessary? No. It was expensive and achieved nothing. Afghanistan? I suppose it did send potential terrorists (who do have money to commit acts of terror internationally) running for cover, so that war is arguable.

But having a military in general protects us and stabilizes us. It doesn't seem like we need the military when we sit in our safe offices and homes and grouse about taxes. Nobody is breaking down our doors with guns and tanks. But that's because the world knows that if someone did try to come at us, we would utterly destroy them. Knowing that everyone knows we would utterly destroy them if they came at us is a comforting thought, because it allows us to have our businesses and our homes and know they won't go away. We can even type on Facebook about how we dislike government and wish that taxes could be lower (which in some countries would get you thrown in a gulag). We are free and stable, because of the military. Is it expensive? Yes. Is it worth the expense? Absolutely!

Lawyer: we do not need to thank our modern military for being a deterrent, b/c it is not clear that they are in fact deterring anything right now. In fact, the military may be causing Americans on American soil to be less safe by their actions.

Also, plenty of countries don't spend trillions on war and manage to do business and not get invaded. Consider Switzerland or modern-day Germany.

Now, take a look at countries that go to war or engage in war, and there is usually one very clear commonality: inflation, high unemployment, or a lack of a strong private sector economy. Look at wars/invasions in Africa; Bosnia/Serbia; Cambodia; old Germany; Iraq; perhaps even Ecuador now, etc. All of them had a weak or nonexistent private sector economy. A strong military wouldn't have protected the average citizen from war. It would have only caused a military coup and a probable military dictatorship.

P.S. the Cold War is over. You might want to get that memo over to the Pentagon and the Dept of Defense, who are still spending our money on weapons more suited to the Cold War instead of domestic threats and smaller, fluid groups of terrorists.

Eric: I agree that war is a bad thing and that having a military can lead to a military dictatorship without a strong civilian government and a private sector. For whatever reason, our country has been spared a military dictatorship and wars on our own soil (for the last 135 years anyway). I think that our brand of military, strong, but loyal to the civilian government, is owed a lot of the credit.

I'm not saying that military incursions and having a very strong military is always a good thing everywhere. I'm just saying it worked here. I don't think you can compare the United States to Africa, the Balkans, Cambodia, etc., Iraq, and other countries you mentioned. The United States went down a different path. I don't know why. I cannot explain it. Perhaps it was the sheer vastness of the country. It's resources. None of the countries/continents you mention are stable in any sense of the word. Not militarily. Not economically. Not legally.

Besides, I'm not talking about going to war. I'm talking about having a military that is so big and so powerful that anyone would be stupid to invade us. With our Navy, we can have huge warships anywhere in the world in just a few days, etc.

Does it deter people from being stupid? I think it does. I suppose that is debatable. But I'm not willing to take the deterrent away for any period of time to test your theory.

Lawyer: in an age of nuclear weapons, it's unclear whether we need to spend trillions of dollars on military adventurism to create a deterrent. In any case, you miss my point. I am not against a well-funded or strong military. I am against praising the military or its members during times of military adventurism, which helps support a pro-war culture.

Eric: So strong military good. Military adventurism and excessive military spending bad. I'm okay with that. We could spend a little less on the military right now. Perhaps a lot less. I'm not sure I an in sync with your definition of military adventurism. I might put the Iraq war in that definition, but I'm not sure we do that a lot. Other than Iraq, what else is included in the definition of military adventurism?

Lawyer: @Erik: see Pakistan, Afghanistan, and Iraq. (Are we fighting wars in other countries?) Unless you can directly link our military’s activities in those three countries with more safety here at home, we are engaging in military adventurism.

Also, have you noticed the kind of people who have been attacking us here at home? (NY car bomb, Padilla, Reid, 9/11 terrorists, etc.) They are almost always domestic or European residents who speak English, not foreigners who live in the Middle East. It's unclear whether blowing up two foreign terrorists and three civilians (I'm estimating a high civilian death count as a result of our military operations in Iraq, Afghanistan, and Pakistan) makes us safer. A foreigner who cannot integrate at least superficially into Western culture cannot effectively deliver a bomb close to American soil. I do not believe the people we are blowing up in the Middle East can effectively deliver a bomb on American soil without being easily detected. Therefore, I call our wars there military adventurism because they do not seem to support a viable self-defense strategy.

Sean: I am all for pulling out of Germany, Japan, the Middle East etc...but at the same time I thank those who are willing to risk their lives for me. Note that I did not include those that decide what those men and women in uniform will risk their lives for, but those who actually are willing to risk their lives...I do not expect soldiers to be policy makers, I oppose the policies, including military policies, of the policy makers, while being thankful for the soldiers.

Without a strong military someone else will want to set you policies for you...

Lawyer:
@Sean: thank you for your comment. You've made the only comment so far that may cause me to shift my position. At the same time, I do not believe that praising a person's willingness to die for his country is a positive action during times of military adventurism. Condemning or praising a military member is different from taking a neutral position towards him/her.

Also, I never said we shouldn't have a strong military. Being against military adventurism and excessive military spending are not inconsistent with supporting a strong military.


If we want to be the world's policeman, that's fine. I just don't know how we're going to pay for it. With the money we save on reducing military obligations, we can support a stronger dollar and our position as the world's reserve currency. I'd rather exert power through trade and tariffs than hard military power. Since we're a consumer-based economy and other countries rely on us to buy their exports, it's unclear why we can't maintain our influence by using trade incentives and disincentives.

I will let Matthew Hoh have the last word. See here.

© Matthew Rafat (2010)

[The comic strip above is from Aaron McGruder's The Boondocks (1996-2006); single strip copied under fair use doctrine for educational purposes.] 

Bonus: from Slawek: "thank god for the new wars we still got going for us, otherwise we would run out of veterans pretty soon. and how silly would we feel come veteran’s day then? pretty f*cking silly."

Sunday, November 14, 2010

Electronic Arts: John Riccitiello's Reign of Pain

I usually like CEOs, but some of them rub me the wrong way. One CEO in particular–Electronic Arts’ CEO John Riccitiello–is particularly disappointing to me. Why? EA has the potential to be a great company, if not the coolest company in the Bay Area. In addition to making popular games, it has great employees, a nice enough Board of Directors (who are perhaps too nice), and a wonderful campus. Thus, it's not unreasonable to say that EA has underperformed when it comes to cachet and stature. Such under-performance might be forgiven if the company was rewarding shareholders financially, but that's not the case.

John Riccitiello has served as Electronic Arts' (ERTS) CEO since May 2007. On May 7, 2007, ERTS shares were selling for $50.07. Today, after three years of John Riccitiello's "magic," they sell for around $16.18--almost a 70% decline. In contrast, Activision Blizzard (ATVI) shares sold for $9.785 on May 7, 2007 and recently closed around $11.82/share--a 20% gain. Today, ATVI pays a dividend; ERTS does not. Recently, ATVI's popular game, Call of Duty, broke sales records.

At this year’s annual meeting, when asked to justify his salary in the wake of ERTS’s terrible stock performance, Riccitiello responded that EA’s executive team members had also suffered because the value of their options and shares had declined. According to Yahoo Finance, Riccitiello owns over 150,000 shares. If these shares are a fraction of his overall net worth, his financial position seems different from a middle class shareholder who uses his/her disposable income to invest in a company while hoping it won’t be run into the ground.

Even if Riccitiello has lost money as a result of EA's stock performance, he may have made up his stock losses elsewhere. Another website raised questions about possible ethical violations--see VentureBeat.com interview (2007):

VB: I never heard what you have said to those people who say there was too much conflict of interest for you on the BioWare/Pandemic deal, since EA was buying a company from your former firm and you made a lot of money on it. What is your answer?

JR: No comment. It’s not a conflict of interest.

Personally, I have no opinion or information about possible ethical violations relating to John Riccitiello. I just find it interesting that others have raised questions about possible self-dealing at EA. In any case, at the annual meeting, Riccitiello gave no real apology for EA’s poor stock performance and seemed to exhibit no remorse. He also had the audacity to say his company’s stock performance should not be compared against Activision or Chinese-based gaming companies, because EA was a different kind of company. (Yahoo Finance lists Activision as one of EA’s competitors.)

There have been rumors that Disney (DIS) might want to take over EA. I asked Riccitiello what he thought about Disney. He responded that his kids liked the park and then smirked, perhaps thinking my question was irrelevant. (I made my question deliberately vague to gauge his response.) His failure to immediately link Disney to a potential buyout makes me think Disney has not approached EA about a buyout.

After the meeting, I tried to approach Riccitiello to thank him for answering my questions, but a beefy, unsmiling man put his hand on my shoulder and stopped me, telling me in a stern voice that Riccitiello had someplace else to be. The beefy man turned out to be a security guard in civilian attire. (Before I could say anything, someone came up to him and must have told him to back off, because he immediately turned away.) Get this: Riccitiello or EA was so concerned about security at this year's meeting, they had several plainclothes security guards attend. Now, these weren't the guys most companies clearly post at the door or who are dressed in black, which usually identifies them as security personnel. These guys were trying to be incognito, emphasis on "trying."

Even though EA attempted to hide the presence of its plainclothes security guards, I was able to identify some of them before the meeting. First, the security people I identified never signed in. They just went to the shareholder table and picked up a name tag. No attempt was made to show shareholder papers or ownership. Second, they immediately demonstrated through their body language that they were very familiar with the employees manning the EA shareholder table. Third, some of the guards sat down at a table instead of walking around and acting like they didn't spend every single day at the company. Later, I wondered how concerned EA really was about Riccitiello's safety, because EA's inability to mask the identities of all their security personnel bordered on incompetence. If you're going to go through the trouble of passing off security personnel as shareholders, at least don't make it look so obvious. I don't expect James Bond, but I also don't expect Mr. Magoo.

I will say this: EA had the courtesy to play a video this year highlighting their various games, and they provided a complimentary game to shareholders who attended. Last year, EA didn't show its usually fantastic annual video, which basically sanitized its normally fun meeting. (Under the previous CEO, some executives demonstrated video games for shareholders. One year, an EA executive played a cool skateboarding videogame at the annual meeting.) After I complained to the Board of Directors that EA was missing out on an opportunity for free publicity, EA reinstated the video.

At the end of the day, I still don't understand how John Riccitiello continues to keep his job. What other CEO has been able to stay employed when a competitor's stock price goes up 20% while his own company's stock price declines by around 80%?

Disclosure: I own only one share of ERTS. I don't plan on buying any more shares as long as John Riccitiello has any substantial authority at Electronic Arts. It's possible that if EA doesn't get a new CEO and the stock continues to decline, the company might go private at some point.