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    Obscure Today – Tarkus

    Posted by Carl from Chicago on 16th May 2012 (All posts by Carl from Chicago)

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    The local River North restaurant Rockit uses former album covers as binders for their menus.  I was surprised one day to see Tarkus by Emerson, Lake & Palmer.

    While Tarkus would be an obscure album today (the average person who is familiar with classic rock might know “Lucky Man” and a couple other songs) it is hard to think that in 1971, when this album came out, it reached #1 on the billboard charts in the UK (and #9 in the US).  According to wikipedia, this album landed between “Sticky Fingers” by the Rolling Stones and “Bridge over Troubled Water” by Simon & Garfunkel.

    To put this in context – “Sticky Fingers” was one of the run of 4 fantastic albums that put the Rolling Stones in the pantheon of rock – they were 1) Beggars Banquet 2) Let it Bleed 3) Sticky Fingers 4) Exile on Main Street.  And everyone knows Bridge over Troubled Water.

    And yet Tarkus, and mostly Emerson, Lake & Palmer, is completely and utterly unknown.  Nowadays Tarkus would be viewed as a niche product, un-commercial for radio / MP3 singles but perhaps capturing a tiny but devoted market.  The song Tarkus takes up a whole side, and is over 20 minutes long, a series of sub-songs linked into one big song.  If you even thought about releasing a jazz / semi-metal / progressive rock album (CD) like this today you’d get laughed out of the record executive’s office (if they have offices anymore).

    At least I was entertained seeing Tarkus as part of my lunch menu.  To think that one day long ago that this would be more than a minor trivia item, or a piece of kind of ugly artwork, is almost unthinkable.

    Cross posted at LITGM

    Posted in Music | No Comments »

    Amazing Digital Technology

    Posted by Carl from Chicago on 14th May 2012 (All posts by Carl from Chicago)

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    There are many blogging tools to use; over at LITGM we use “Blogger” which is owned by Google (and free) and over at Chicago Boyz and at other sites we use Word Press.  Many of the up and coming sites are now on Tumblr, which looks pretty much like another blogging platform to me.

    There was a Louis CK sketch where he talks about how amazing it is to fly on an airplane and connect to the Internet and all the things we take for granted while everyone whines about it.  I felt the same way as I started to look at some of the new technologies available under Blogger.

    Blogger just rolled out “dynamic views”.  I am not a blogging technical expert but in laymans’ terms, you get a lot of real estate back that is taken up with static page elements like the blogroll on the side and post categories and comments.  When you hover your cursor over these items, they “pop up” (dynamically) and then you can click on them if you wish else they don’t take up space otherwise.

    Another advantage is that they load up your blog when you turn it on (you see the Blogger “gears” running) and then you can view it a bunch of different ways, from a “classic” view to a “magazine” view or “flip card” which is cool if you have a lot of photos because you can see them at a glance and click to get at the post underneath.

    Like everything else, they are trying to get the bugs out at Blogger.  When they initially rolled it out, you couldn’t see items like your blogroll / links because those “widgets” didn’t work with dynamic views.  Some super-technical web nerds could make it work but the average person wouldn’t unless they wanted to hack html code.  There are sites and message boards out there with many comments bemoaning the new technology and what is lacking but of course Google has added many of these widgets back so that they now work with dynamic views and at least you can see comments and labels (basically their version of tags or categories).

    I turned “the most important site on the internet” Drunk Bear Fans into a dynamic views site and it is pretty cool.  Since there is more page real estate (the tabs on the side only pop out when you hover over them) I was able to make the pictures bigger and I also did some other housecleaning.  This is more of a test bed than LITGM so I will keep working over there until it is ready for “prime time” and then maybe we will kick over LITGM, too.  For now we are looking at the header because you still have to work on that in html to get the great pictures up there that Gerry inserts but I am sure one of the tech guys at Google is working on that in a frenzy and that will be in some upcoming version.

    It is simply amazing how far the technology has come on blogging and web development FOR FREE.  Dan was chuckling at how much just the hard drive would have cost back when we were in college 20+ years ago to store the pictures, movies and other elements associated with a site like LITGM, which also is free along with all the development time Google has put into this platform (plus the fact that they bought the company that made the original technology in the first place).

    I was in the dot.com “boom” era in the early 2000′s in the middle of all the companies that imploded.  I can tell you first-hand that building a site that a 10 year old could do with dynamic views would have cost millions and millions of dollars, and it would have crawled.  The cloud based infrastructure that these sites use and the power of the tools that they give developers and non-developers alike FOR FREE is amazing.    For a couple of minutes it is worth stepping back and reflecting on that.  Then back to complaining about everything, just like Louis CK says.

    Cross posted at LITGM

    Posted in Blogging | 12 Comments »

    Around Chicago May 2012

    Posted by Carl from Chicago on 10th May 2012 (All posts by Carl from Chicago)

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    Recently I was walking in River North and a restaurant was touting their “local farming” element. Fine but that hay bale seemed to be sprouting some extra fungus. I don’t think Dan would feed it to his animals.

    I liked this gull on a lamp.

    Read the rest of this entry »

    Posted in Chicagoania, Humor, Photos | 5 Comments »

    Abandoned Skyscrapers in Chicago

    Posted by Carl from Chicago on 7th May 2012 (All posts by Carl from Chicago)

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    In Chicago a new real estate boom is occurring. There are 3 large hotels and 2 major apartment skyscrapers being built in River North.

    There is also some good news on the “abandoned building” front. At 111 W Wacker, there is an abandoned, partially finished skyscraper that was going to be an 80+ story condo / hotel. They recently changed the facade in the front of the building as you can see in the photo above and claim to be working on completing the building, sitting idle since the 2008 crash. According to this article, it is to become a 65 floor apartment building, apparently satisfying an insatiable demand for high end apartments in the city (also due to the fact that people were having trouble selling condominiums in this real estate market). We’ll see if it actually gets built but this is a good start nonetheless. I wonder if it hurts a building to sit out half-finished, exposed to the elements all winter, but apparently this isn’t stopping the new owner. Doesn’t seem like a good idea to me.

    On the other hand, there is a Staybridge Suite building in River North that has been covered with some sort of strange tarp for years. If you go to this link you can see the odd shape that the building was supposed to have. I will believe that they finish this damn thing when I see actual construction, although they do keep the lights on at night. The f’d up part of this is that Staybridge is an actual company – I hope that this leads to some bad publicity or something for them, leaving a giant half built eyesore in the middle of Chicago. Hopefully they make some headway on this before the current mini real estate boom ends in dust and misery like the last one.

    Cross posted at LITGM

    Posted in Business, Chicagoania | 7 Comments »

    Me and My MacBook

    Posted by Carl from Chicago on 5th May 2012 (All posts by Carl from Chicago)

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    When I started out with computers it was all Apple. We had Apple II machines and I remember the “green screens” (and then an “ochre” screen). It was quite exciting to have 2 disk drives, back in the day when you stored your programs on disk rather than on a hard drive in the machine. My father had a background in computing from the earliest days and was happy to invest in computers when hardly anyone else I knew had one and this helped me to get exposure which has been a big help in my career. The most exciting games were Choplifter which was great with the joystick (thanks to Wikipedia for helping me with all these memories), Castle Wolfenstein which startled me when the guards shouted at you, and of course the epic Wizardry game for which I have the cover sheet of the rules manual right here.

    In college I had an IBM PC XT. This machine was also state of the art for the day and its casing was some sort of nearly industrial metal that you could run over with a truck. By then we had started to move on to 3.5″ disks which seemed very futuristic when compared to a 5.2″ floppy. I remember actually moving this computer around which was not simple because it was the opposite of portable.

    At work we had “luggable” machines which were compacs. I am not sure which version we had it may have looked like this I do remember that it was 1) very heavy 2) if I lost it I’d probably be fired 3) it had an eerie screen color that was described as amber.

    Over the years I ended up in the Windows world because this was the tool for business and in various jobs you had to program on and work with Windows laptops and desktops.  Given that, it made sense to just stay in the Windows world for my home PC’s of which I’ve had many but are quite boring so I will spare you that update.
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    Posted in History, Personal Narrative | 35 Comments »

    Castillo de San Marcos

    Posted by Carl from Chicago on 28th April 2012 (All posts by Carl from Chicago)

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    While organizing my old photos I came across 2007 pictures from a visit to Castillo de San Marcos, a fort in St. Augustine, Florida. The fortress was built by the Spanish as part of the time they occupied Florida.

    The fortress is of the typical “bastion” type. I am not an expert in this era so I relied on wikipedia which had a nice description. Apparently the grades were built so that cannon would be more effective aiming downward as attackers neared the fortress.

    Read the rest of this entry »

    Posted in History | 16 Comments »

    The Value of College

    Posted by Carl from Chicago on 22nd April 2012 (All posts by Carl from Chicago)

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    Yahoo! had a recent article titled “1 in 2 New Graduates are Jobless or Underemployed“. From the article:

    While there’s strong demand in science, education and health fields, arts and humanities flounder

    The article discusses the “plight” of an individual with a college degree who is working as a barista at Starbucks because he cannot find employment in his chosen field (note – is “barista” a masculine or feminine term, or neutral?)

    And what was this individuals’ major? CREATIVE WRITING.

    I often contemplate what someone with that major thinks their job opportunities really are out there in the world. Let’s see…

    - You could use your skills to write something, like this blog, for instance (and cash in all the nickels you will receive, maybe)

    - You could go to Hollywood and try to write for a show or screenplay (good luck – the competition is ferocious)

    - You could try to write that serious book that is in your head (uh… and there is a 1 in a billion chance that it will sell enough copies, should it be published, to feed you for even one month)

    I’m not saying that creative writing isn’t interesting, fun, or could lead to pay that could sustain your life. I just don’t think that you need a DEGREE to do this, and if you are “banking” on this out of the gate, then you are in for some very likely serious hard knocks in the cash flow area.

    Also, it isn’t clear to me that “creative writing” as a degree is necessary to be a “creative writer”. I would be interested to hear of a single popular author or even widely read blogger or screenwriter that has a degree called “creative writing”. Since I must admit that I am not sure even what “creative writing” is I looked it up at trusty old wikipedia and here is their definition:

    Creative writing is considered to be any writing, fiction, poetry, or non-fiction, that goes outside the bounds of normal professional, journalistic, academic, and technical forms of literature. Works which fall into this category include novels, epics, short stories, and poems. Writing for the screen and stage, screenwriting and playwriting respectively, typically have their own programs of study, but fit under the creative writing category as well.

    Who would you even send a resume to for “creative writing”? If this definition was true, you aren’t sending it to any newspapers or technical writing firms (there are a lot of computer specifications being written) or even ad agencies; I don’t think that most screenwriters hire underlings and certainly the big film studios don’t hire you out of college and train you.

    The article goes on to explain what is likely obvious to most readers:

    College graduates who majored in zoology, anthropology, philosophy, art history and humanities were among the least likely to find jobs appropriate to their education level; those with nursing, teaching, accounting or computer science degrees were among the most likely.

    I can’t imagine that these findings are a surprise to anyone. If you don’t have connections, you are better off getting a practical science-based or business-based degree (you can put computer science in whatever bucket you want) to get your foot in the door in business or in government. It IS true that many, many people started out with liberal arts degrees and rose to the top (often becoming lawyers) – but many of those that DID rise (in recent years) already had massive connections and were able to get in to elite graduate schools or careers like investment banking where only the most elite can apply. When you eliminate the liberal arts programs from elite Ivy-league or private universities from the mix (like Northwestern), getting a liberal arts degree from a non-elite school is going to leave you marooned in your job hunt. Probably 90%+ of liberal arts degree holders that are graduating now come from these non-elite schools (just a guess), so those are the ones likely “underemployed” or working as a barista somewhere.

    What is surprising to me is that this is a surprise to anyone, at all.

    Cross posted at LITGM

    Posted in Business | 18 Comments »

    The Abstract Concept of “Work”

    Posted by Carl from Chicago on 21st April 2012 (All posts by Carl from Chicago)

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    Once I was having a conversation with a friend after a few drinks and he said

    What would the business world be like if it really was the way it appeared on soap operas?

    On soap operas business is a clandestine, cloak and dagger operation.  You are forever opening drawers for obscure documents while the other guy isn’t there, thinking about conspiracies, and flirting / sleeping with one another.  People have large offices, secretaries, and complex relationships with everyone they encounter.

    And very little actual work seems to get done.

    When I was growing up everyone I knew had a job of some sort.  You started out mowing lawns and shoveling snow, and girls babysat.  Some people in rural areas (we weren’t near fields) de-tasseled corn, which could be a brutal job out in the hot sun.  When you were 16 you graduated into a new type of job, a more formal job with an actual boss on a payroll and with a paycheck, in retail or at a fast food restaurant or something like that.  You worked during the school year, and then you worked a lot during the summer, and you worked during spring break (if you could).  When you were back from college in the summer you worked too, or stayed on campus and found some sort of job there, instead.

    Now kids don’t get jobs at nearly the same rate for a variety of reasons – they have a lot more homework than we did, and parents want them to focus on school as the highest priority.  Plus the minimum wage is higher now, and the retail and fast food jobs are often going to full-grown adults that need the work in this economy.  For whatever reason, I see a lot less kids (16-20) that seem to be potential full-time college student candidates doing actual work when I am out shopping or elsewhere in the type of jobs I used to work.

    But instead there are many more TV programs that appear to show work.  The most prominent is “The Office”, which actually has many more truthful elements of actual work than the traditional soap operas.  The divide between management and staff is more obvious, and the staffers reflect their stereotypical personas (the semi-autistic or boring accountant, the pretty secretary, the beaten-down HR worker, the semi-optimistic sales staff, and those hangers on that have somehow survived rounds of layoffs but you can’t quite figure out what they do), while the actual workers are in the basement, moving paper with a forklift and having a culture of their own.

    The general spirit of the office is the absolute minimum level of competence and business skills to keep the organization afloat, with a chimerical camaraderie of forced meetings and boring encounters.  There is a continuous focus on the head office and corporate, which is certainly realistic, since change do derive from the top often with little knowledge of what is happening “on the ground”.

    Since many kids don’t have jobs or actual contact with formal managers, shows like “The Office” do in fact color their view of the traditional workplace.  While many kids can understand what is obviously real and what is obviously fake, the “accoutrements” of power (secretary, an enclosed office, a conference call relationship with corporate) seem relevant.  Certainly living in the “cube farm” is not a good fate, sitting at a communal table or small beige cube adjacent to obnoxious, dopey or deranged co-workers is to be escaped at all costs.

    An abstract concept of “work” and “management” unhinged from “actual work” or “actual management” appears to be at its highest in the (wealthy) Arab world.  This excellent article in Bloomberg describes the job situation for young adults in Saudi Arabia.

    Today, all three still live at home, get pocket money from their parents and are jobless in Riyadh, capital of the world’s largest crude oil exporter.  When the three Saudi men met each other in school 11 years ago, they dreamed that by the time they had reached their mid-20s, each would have a well-paid job, a house, a new car and maybe a wife

    Most of the work in Saudi Arabia is actually done by guest workers or expatriates.  The “dirty” work of construction, domestics, etc… is done by fellow Arabs from countries that aren’t sparsely populated and endowed with natural resources, and the “thinking” work of managing and running businesses is done by expatriates from around the world.

    The article goes on to explain how young adult Saudis don’t want to work in supermarkets, construction, or as cashiers.  They want the jobs that they see on TV – the managerial jobs, sitting behind a desk, in a climate controlled and first class office building.

    “In my previous job, I used to sit at a desk in my own office,” he says. “I want the same standard of work.”  Abdullah, who has a high school diploma, says he has been offered “bad” jobs: as a waiter, security guard and cashier.

    The interesting part of this is that the Saudis want those jobs without any sort of skills that would make them relevant in the wider, competitive world.  They have a concept of what “work” means and this abstract concept is completely unhinged from any sort of skill building or “work your way up from the bottom” mentality that could support it on a larger scale.

    This is the ultimate abstraction of work; routine, office tasks with demanded accoutrements that have no bearing on the underlying economy or added value of goods or services.

    Cross posted at LITGM

    Posted in Business | 11 Comments »

    Around Chicago April 2012

    Posted by Carl from Chicago on 13th April 2012 (All posts by Carl from Chicago)

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    A view of Trump and the IBM building on a clear spring day.

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    Posted in Chicagoania, Photos | 6 Comments »

    Hilarious Quote

    Posted by Carl from Chicago on 7th April 2012 (All posts by Carl from Chicago)

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    I was watching the TV show “Metal Evolution” (now I am going to have to watch all the shows online, too) when I heard a quote so funny I almost had tears running down my face.  They had an interview with Gary Holt of Exodus and he said (on the topic of his band “selling out” to the record company)

    If I had to do it all over again I’d just keep writing songs about killing people

    Posted in Humor, Music | 1 Comment »

    $9 / Gallon Gas in Italy – And The Effect in the US

    Posted by Carl from Chicago on 6th April 2012 (All posts by Carl from Chicago)

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    Recently Bloomberg had an article about Italian gas prices exceeding $9/gallon.

    Austerity measures introduced by Prime Minister Mario Monti’s government have pushed Italian gas prices to the highest in Europe, an average of 1.82 euros per liter, or $9.17 per gallon, with taxes accounting for about 54 percent of the total,

    The article goes on to talk about how this price increase impacts ordinary Italians just attempting to get around and go to their job.

    The Italians hit hardest by higher gas taxes are those like teacher Cioni — working people who live in areas poorly served by public transportation.

    Even in the US, where taxes on gasoline are high but do not comprise 54% of the total cost like they do in Italy, driving now requires actual trade-offs as you near $5 / gallon gas.

    In the suburbs of Chicago you typically drive long distances during the normal course of the day. For instance it is over 30 miles from the Chicago loop downtown to Naperville each way. Since you probably will be driving around a bit when you get there, it is reasonable to think that you might burn 3-4 gallons of gas depending on traffic and mileage, along with $5 in tolls (depending on the route you take). If you figure that gas is $5 / gallon, then that round trip just cost TWENTY DOLLARS. Note that this analysis doesn’t consider the wear and tear on your car… this is just the incremental cost of the journey.

    I remember growing up that $20 was a lot of money. You could live for a few days with $20 in your pocket (just the occasional fast-food meal, some gas, etc…). Now you spend $20 EVERY TIME YOU GET IN THE CAR.

    This type of taxation does severely punish the “working” poor. It doesn’t punish the poor who aren’t working nearly as much, because they can take the laborious time to use whatever public transportation is available. The working poor, on the other hand, are essentially “on the clock” and if you are near or a bit above minimum wage you are probably taking home maybe $10 / hr after taxes. Thus the trip from Naperville (or a nearby suburb) to and from Chicago just took up TWO HOURS of your working time.

    A family member who lives in Naperville talked about a neighbor who works at a popular (casual) restaurant in the city as a waitress and I started doing the math in my head… the money would have to be significantly better than from a local restaurant just to make up for the difference in gas prices and tolls alone.

    I expect that over time gas prices at this level will significantly impact car-buying behavior.  When I purchased an Altima in 2010 (which I subsequently sold to a family member because it was too big for my parking garage and accumulated wear and tear) I bought a 4 cylinder engine, which made me seem like a minority on the highway because everyone else seemed to have a 6 cylinder.  However, the 4 cylinder engine (which is fine for a cruising car like the Altima, it isn’t a sports car after all) gets better gas mileage which will pay off very quickly with gas at $5 / gallon.

    I expect that kids learning to drive will begin to associate driving with a very high marginal cost – i.e. each time you get in the car, money is flying out of your pocket.  When I started driving insurance costs were the big barrier, followed by the price of the car and then gasoline.  Thus once you bought and insured the car, you might as well drive it. Behavior that lasts a lifetime often begins when you are first starting out, so those that are starting driving today might view it as an occasional luxury or something to do as a necessity rather than as an activity in the normal course of life.

    For the working poor, high gas prices tied to high taxes (especially in Europe) make their lives much more difficult because it cuts right against their take-home pay and often they need to drive to reach their jobs.  Since the poorer individuals often live far from where the jobs are located in the service sector (i.e. downtown Chicago is where a lot of night life is but the cheaper housing is often in the far-flung suburbs) this will limit their opportunities to local employers which could cut their opportunities significantly.

    For younger people starting out, the incremental cost of a trip will make driving a much more “thoughtful” experience and trips will often be combined or deferred altogether.  Since habits you develop as a teenager often stay with you for many years or even a lifetime this could cause a seismic shift in behavior, away from driving.  Whether that is good or bad depends on your position; it certainly hurts the vitality of the economy because for most parts of America public transportation is not convenient, reasonably priced, or even available.

    Cross posted at LITGM

    Posted in Chicagoania, Economics & Finance | 17 Comments »

    Why Tomorrow’s Craven Politicians Will Save Us (Maybe)

    Posted by Carl from Chicago on 1st April 2012 (All posts by Carl from Chicago)

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    Today governments across the United States are facing budget shortfalls caused primarily by making promises in terms of pensions and benefits to workers that no longer are supportable. Recently I was in California and I saw this sign in a bathroom at a popular tourist attraction.

    The key concept to understanding how we got into this predicament is the word “craven”. Here is the official definition per Webster:

    lacking the least bit of courage : contemptibly fainthearted

    Politicians lacked the courage to stand up to public sector workers, predominantly the unionized ones like teachers, firefighters, and policemen, because negotiating with them seemed to be all downside:

    1) If they are angry, they can go on strike, disrupting schools, hospitals and essential public services
    2) They are voters (predominantly Democratic) and represent a (mostly) unified voting block that is prepared to petition to achieve their goals in the media (which is usually sympathetic to their cause, since they are mostly Democratic, too)
    3) Many of them (Police, Firefighters, and to some extent teachers) present sympathetic postures to the public; fighting with them is a no-win situation (even if you win, you lose)
    4) Their army of retirees often are still local and also vocal and organized and prepared to demonstrate as well, although they are not in a position to block essential services

    Thus the “craven” route was simply to capitulate – write up promises to TODAY’s government workers and RETIREES and then just “kick the can” into the future to the date when those promises came due. Today’s politicians won’t be there when the bills come due (Daley most famously sold off Chicago’s assets, signed long term unaffordable deals for labor peace, and walked off into the sunset) so this fits their short term strategy to a tee.

    However, in the near term, I think that politicians’ inherent “craven” behavior will work in REVERSE, giving us an opportunity to tackle the root cause of the problem. How do I come to that (preliminary) conclusion?

    It is simple – there are really only two solutions available for politicians today (in places like Illinois, California, and Detroit, where it is literally collapsing) and in the near term in more well run or well funded places:

    1) Raise taxes AND cut services drastically to pay for union benefits and pensions
    2) grab a hold of the problem, cut payments to today’s workers and retirees and cut their benefits and costs, thus leaving more dollars for services TODAY and the opportunity to AVOID tax increases

    So let’s say that you are a politician running for office in a few years – what do you promise constituents?  You have to promise #2 - that you won’t cut services today and won’t raise taxes - or you won’t get elected.  I’d love to see people run for office on a platform of #1 and get elected – it won’t happen.  Now what will actually happen a lot is that politicians will promise #2 but do a variant of #1 to get elected (because it is VERY hard to take on the entrenched unions when you come into office) – but then the financials will collapse further and they will be FORCED into making a harder choice, or they will come up for re-election and be drummed out of office.

    Soon the EASIER or “more” craven approach will just be to get elected on a basis of reducing government costs on the backs of existing workers and retirees and chopping compensation to avoid raising taxes or reducing services.  Thus the entire process that led to our current debacle will operate in reverse, with bad consequences and subsequent demonizing for government employees as the root case of the issue.

    Government workers, especially unionized ones, will see many victories but a long term defeat on all these issues.  In the end sympathies won’t be enough to offset the crippling taxes and immense service cuts that are necessary to pay for past politician promises.  The politicians will side with the majority, who will have to reform the system, even though this reform will be rocky and filled with failures and vitriol.

    Politically craven behavior, which dug this grave, will work in reverse.  This is a hope, at least.

    Cross posted at LITGM

    Posted in Big Government, Economics & Finance | 14 Comments »

    Should We Save It? Why?

    Posted by Carl from Chicago on 23rd March 2012 (All posts by Carl from Chicago)

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    There has been a preservationist battle over the Prentice Women’s Hospital, which looks like a strange concrete spaceship from a 1950′s sci-fi movie. Here is an article from a preservationist web site describing the building and its history. From the article

    A concrete, cloverleaf-shaped icon, Prentice Women’s Hospital has added drama and interest to the Chicago skyline for nearly four decades.

    One of the current issues is that it isn’t adding ANY interest to the Chicago skyline anymore. The reason for this is that myriad other, larger buildings have been added all around it – the only reason that I can see this at all (other than being on the street, facing it), is that I am atop a building that ACTUALLY is part of the skyline and looking down.

    While I am all for preservation in various forms it seems odd to demand that a hospital retain an old facility like this. The facility is clearly a high maintenance item – just look at it – and can’t be very practical to refit for today’s technology and practices. And there is nothing else to do with this facility – it is in the middle of the hospital campus so you can’t just turn it into some “boom boom” nightclub like you could here in River North, or even into some sort of weird shopping mecca like Bloomingdales did with the old Shriner’s building (site of the circus).

    I support the preservationists but this one seems like a lost cause because it would obviously be impractical and fiendishly expensive to do anything with it, and it isn’t in a good location for alternative uses. The building is also too tiny to be called part of the skyline anymore. And plus, it is damn ugly.

    Cross posted at LITGM

    Posted in Chicagoania | 15 Comments »

    Magic Trump?

    Posted by Carl from Chicago on 22nd March 2012 (All posts by Carl from Chicago)

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    Posted in Chicagoania, Photos | 1 Comment »

    Sony Blu-ray Disc Review BDP-BX58… and the future of Sony

    Posted by Carl from Chicago on 18th March 2012 (All posts by Carl from Chicago)

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    On the masthead of our blog at “Life in the Great Midwest” it used to read “We Shill for Nobody”. And that is still true. But if we find something that may be interesting to others we like to share it.

    Recently I bought a Sony Blu-Ray Disc Player BDP-BX58. This replaces my existing Samsung DVD player (which worked fine). I bought it, after rebate, for about $100 at Costco.

    I bought it to try out the internet through my television. It also allows you to stream other media (pictures from your PC, songs from your PC, etc…) through your TV which I wasn’t as interested in.

    Although it is a DVD player, I only put a DVD in to make sure it worked and all the wires, sound, etc… were working correctly through my surround sound system. I remember reading an article about a focus group that tested a smart phone with a bunch of high school students – the researcher said in all the time he watched them text, stream, and run apps, he never saw them use the smart phone to MAKE A PHONE CALL. Like them, I was basically using this DVD player as a gateway to the internet not as a DVD playing device.

    I went to You Tube and immediately started having fun. Recently I was at a friends’ condo and we were discussing music (for hours, since I know a lot of obscure stuff, but he dwarfs my knowledge on the topic). It was cool to just type in a band like “Mastodon” and all their videos come up, including all their appearances on late night shows like Letterman. Obviously there is a lot of stuff on You Tube and it is fun to watch it through your TV.

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    Posted in Business, Internet, Tech | 7 Comments »

    Drunk Ecosystem

    Posted by Carl from Chicago on 17th March 2012 (All posts by Carl from Chicago)

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    I am an ethnologist embedded within Chicago for St Patrick’s day. I am building the ecosystem for drunks that are the “pillars” of the St Patrick’s day experience.

    You need crowds of drunks in green and the ubiquitous taxi drivers. I talked to a cab driver recently and he said that St Patrick’s day is the biggest day of the year for cabbies – bigger even than New Year’s eve. This is probably due to the fact that it starts earlier – he said he is generally picking up smashed patrons at 10am – and it goes all day and all night long.

    Other pillars are porta-johns and bagpipers. While bagpipers are needed for police and fire funerals this is likely the only day of the year when playing the bagpipe gets you action with the ladies.
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    Posted in Chicagoania, Humor, Photos | 12 Comments »

    It Works Until It Doesn’t – Service Firm Pensions

    Posted by Carl from Chicago on 6th March 2012 (All posts by Carl from Chicago)

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    I spent many years in the consultancy / accounting industry, which has many similarities to the business model for legal firms. They are both 1) primarily based on hourly billing rates for their income 2) use a pyramid or partnership structure with the top members often receiving an equity or ownership stake 3) have partners who need to seek out business in order to keep the revenues flowing. If you are interested in this industry, I highly recommend reading “Managing the Professional Services Firm” by David Maister, a timeless book on the topic.

    The Wall Street Journal had an article recently titled “Next Pension Clash: Law Firms” with the subtitle “Unfunded plans burden younger partners, but build loyalty among small group”.

    At some of the country’s top firms, younger lawyers will foot the bill for deluxe pension plans that could drag down their own earnings for years to come… these pensions are largely unfunded. Partners at some elite firms are often entitled to between 20% and 30% of their peak pay after retirement – in many cases, for life… that could mean payments of $400,000 to $600,000 per retired lawyer.

    One of my friends who is a partner in a professional services firm once told me that he’d never tell his son to go into a business where he was “selling his time”. While there are many other attributes (a senior person is selling his time AND his ability to manage and supervise staff), there is a lot of truth to this quote.

    Thus the partner, who was well compensated while he was at the firm, is now going to collect a pension in the future, while he is no longer contributing to the ongoing revenues of the firm. It is true that the client relationships that the partner built up (and left behind) are valuable to the firm, along with any specialties that the partner built up (and trained staff on), but the bottom line is that most of that revenue stream is up for grabs soon after the partner is gone. Even if the clients are left in good shape and well transitioned, if the NEXT partner doesn’t do a good job, all that goodwill is drained very quickly.

    Like all unfunded pension schemes – it is really a “bet” on the future, on an era of rising prosperity, and a bet that paid off for a generation of retired lawyers. For those coming up the ranks, however, the future of course looks more uncertain, with more vicious competition and increasing use of offshore resources for more mundane matters, which both can be a source of short term profits as well as a long term threat of cannibalization of higher margin revenues up the chain.

    It seems like these sorts of burdens would turn off rising lawyers, who have the ability to “jump ship” quite easily since non-compete laws generally don’t apply to lawyers, from what I understand (it is interesting how those that write the laws that entangle everyone else managed to develop an escape hatch for themselves). These sorts of payouts, which come out of partner profits after all expenses have been allocated, can be significant in harder times.

    Traditional pensions are also under intense pressure, especially since the “rate of return” assumptions are being reduced with the Fed’s extremely low interest rates. This article sums up how corporations are asking for relief:

    The latest bid is spurred by the effects of the Federal Reserve’s low interest-rate policy, which has led to soaring pension liabilities.

    While the companies are basically arguing that interest rates are artificially low and that their funding requirements shouldn’t surge as a result, the unstated point is that returns for EVERYONE have gone down, as well. Many models for investors in 401k plans used to assume 10% rates of return indefinitely; given market volatility and flat returns over the last DECADE, 10% / year seems ridiculous to investors of all stripes.

    The pension firms in this article often have different challenges because they are often unfunded and totally dependent on future revenue streams; in this sense at least they are immune from the Fed’s zero interest rate policy distortions.

    Cross posted at LITGM

    Posted in Business | 6 Comments »

    The “Dick” Economy

    Posted by Carl from Chicago on 3rd March 2012 (All posts by Carl from Chicago)

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    When I was a consultant I traveled throughout the US and worked in many different states and regions. I grew up in the Midwest, where my core values were shaped. A general description of these values in business would be a variant of the “golden rule” – from wikipedia:

    The Golden Rule or ethic of reciprocity is a maxim, ethical code, or morality that essentially states either of the following:

    (Positive form): One should treat others as one would like others to treat oneself.
    (Negative/prohibitive form, also called the Silver Rule): One should not treat others in ways that one would not like to be treated.

    This concept describes a “reciprocal” or “two-way” relationship between one’s self and others that involves both sides equally and in a mutual fashion.

    This sort of approach wasn’t out of the “goodness of your heart”, it was a fair and reasonable way to approach your customer or supplier. An example – you are working on a job at a price that you both agreed upon, and then you find that things are significantly different than planned and you will come up far short of your original profitability or even lose money on the job – what do you do?

    You approach the customer, subtly, and describe some of the new or unseen events that have changed the scope of the project since inception. The customer has a few options – they can 1) give you nothing and tell you to “eat the difference” 2) split the difference on some of the unforeseen items which may not make you whole but softens the blow 3) not change the current deal at all but implicitly or explicitly tell you that there are future opportunities to make yourself whole.

    More often than not, we eventually came to a #2 type resolution, although it was often linked with a #3 type opportunity. Rarely were we just told to “pound sand” and take the #1 option.

    Why is it this way? On the surface it would seem that, as a customer, #1 would always be preferable. You have a binding contract, why not stick it to your vendor? A few reasons – a bitter vendor is unlikely to do good work, and will look at the contract in detail to find a way to stick it back to you by living to the “letter” not “spirit” of the agreement. An additional component is that if you behave as if life was a series of single transactions with no consequences to others (i.e. a series of #1 events), you eventually end up with a reputation as a “bad customer” and this will come to damage you in various ways; often it will get raised from the vendors boss to the customers’ boss at the golf course or some other type of less formal venue; and most companies don’t want a reputation for being difficult and vindictive. An additional element is that this type of behavior is generally not how people in the Midwest live their lives – it will probably be correlated with other types of behaviors (selfishness, not looking out for co-workers, extreme ambition) that will lead to at least a mild ostracism or at least career damage.

    The second part of a series of #1 issues is that the SUPPLIER can just walk away from the job in the first place if they aren’t going to earn a sufficient profit. Sure, you can sue them, but the courts take forever and meanwhile, whatever project you hired the supplier for in the first place is languishing (i.e. a product launch, or a cost reduction project, etc…). This is a variant of the golden rule on the part of the supplier, which means that they have an obligation to do the best work possible under the spirit of the agreement to make the purchaser look good.

    In my limited experience the apex of #1 experiences on all side was New York. Even the simplest item became a desperate bargaining scrum, with both sides scouring the other for weaknesses and gleefully “sticking it to them” whenever possible. If you approached a NY transaction with the attitude of a midwesterner, you were going to get screwed, because they were going to walk all over you and push for favorable terms and lord over you their advantages while you would be loathe to use the same tactics in return. Soon even the dimmest types have to take on #1 attitudes, and then regular update meetings are just taking turns throwing the other guy “under the bus” and scheming to leverage the fine print. A real joy.

    The difficulty with #1 behavior is that it “negates” itself when confronted by both parties using this set of tactics. Now you get back to equilibrium, but the entire transaction and work effort is bitter and poisoned. As far as future work, you just “roll forward” your grievances into the NEXT transaction and find ever more creative ways to win with #1 tactics in the future, as both sides escalate.
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    Posted in Chicagoania, Economics & Finance, Morality and Philosphy | 10 Comments »

    Around Chicago February 2012

    Posted by Carl from Chicago on 27th February 2012 (All posts by Carl from Chicago)

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    Upper left – the hotel Dana. There is a cool Asian restaurant in the hotel – the billboard has a girl with 2 different colored eyes. On the roof of that hotel there is a club that is open all winter. Note – from behind – that building looks like a Soviet creation it is all faceless wall with one window. Upper middle – a cool new building on the Northwestern medical campus in Streeterville. Upper right – a little candle lit setup in the restaurant Zocalo in River North. Lower left – some random construction in River North. They are just adding a level on top of a building like it is a third world country or something. Lower middle – Chick Fil A is in Chicago near the Magnificent Mile – that place is awesome! Lower right – a cool red building in River North.

    Cross posted at LITGM

    Posted in Chicagoania, Photos | 4 Comments »

    It Works Until It Doesn’t

    Posted by Carl from Chicago on 21st February 2012 (All posts by Carl from Chicago)

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    Back in 2008-9, when it seemed that the world was about to implode, I wrote this article about how odd it was that JP Morgan Chase stepped in and bought an entire bond issue from the State of Illinois, at a time when no one else was interested in our debt.

    The US government has been buying its own debt for some time now. The WSJ today had an article entitled “Treasurys Face Tougher Path” that sums up our dilemma:

    “If we remove the Fed’s purchasing and remove the trillions in Treasurys they hold, what would be the true market value of Treasurys?… I think we would certainly have failed auctions at the current interest rates if the Fed was not the majority purchaser”

    A different article in today’s WSJ called “EU Banks Stashing Cash for Safety” reported that European banks were “parking” their money with central banks rather than lend out to customers, purchase securities (like bonds, above), or loan it to one another.

    The 8 giant European banks that have disclosed their annual results in recent weeks reported holding a total of about $816 billion in cash and deposits at central banks as of Dec 31… that is up 50% from a year earlier… The stockpiling… represented a collective response to the growing pressures on the European Financial system. By storing funds at central banks in Europe, the US, and elsewhere, banks assure that their money is safe.

    As the article above states, we don’t know what the price of debt would be if the US government wasn’t purchasing a substantial portion of the total issuance. It likely would be higher. And in Europe, with losses looming on Greek debt, banks are now questioning their position in the debt markets and apparently “parking” their money more and more rather than purchasing government debt issues.

    In the US we take for granted that we can keep issuing debt to fund our ballooning deficit and that we can find willing buyers at miniscule interest rates. We are also putting our hand on the scale by buying back a lot of the securities that we are auctioning off (try explaining that one to someone who isn’t sophisticated in finance). Like everything else, this works until it doesn’t, and with banks and the US government not buying bonds in the same quantities, who IS going to want to load up on Treasurys at these rates?

    In parallel, the stock market is returning more than ever when dividends are taken into account. There never has been a time in recent history where stocks (assuming dividends and share buy-backs) are returning such a high premium over debt. Thus why would individuals want to purchase Treasurys when (cash) returns in stocks are so much higher?

    It will be interesting to see how this all plays out. My guess is that it will end badly.

    Posted in Economics & Finance | 9 Comments »