Unfortunate Debt Scenario

Imagine a new company with a great idea and a vigorous man at the helm. Soon the company is making money and growing and impressing everyone.
So they go public.
They raise a lot of money selling stock. This enables even faster growth and gives the appearance of tremendous profitability. To be sure, free money from investors is a great thing to get.
Now they go the next step.
They issue bonds and borrow a lot of money from banks.
And then they cross the line.
Management rewards itself with enormous salaries, benefits, bonuses and perks of all kinds.
This goes on for a few years.
Then the company starts to fail.
Investors in the stock and bonds end up losing. The company finally goes bankrupt and the banks also lose big time.
But the management got very rich in this process. They are all set for life.

The question in my mind is regarding the ethics of this scenario. I would not conduct myself in this way. I would not rob my creditors. I just wouldn't do it.

Now there is a larger game being played with debt.
Government debt.
There are similarities to the story of this unethical company.
Government has borrowed money to pay salaries and give perks. But the crisis is now at hand. Governments are proving to be insolvent.
Will anyone give back what they made in the past? Will they be reasonable and stay in the game and take less?
NO!
The managers of government seem to be intending three things to get out of the debt hole.
Keep borrowing
Raise taxes
Debase the currency
And even the impossible is on the table now, bankruptcy of state governments such as California and Nevada.

Ethics 101 anyone?

If No Law Then No Crime

The way to reduce crime is not to lock 'em up and punish 'em.
Or take care of 'em
With social workers and psychotherapy
Or to give 'em money
etc. etc.

NO

Just get rid of laws and crimes will cease

Remember they used to have a lot of sex laws. Wow! They got rid of those laws and now those crimes don't happen any more!
So get rid of the crazy stupid laws that make criminals of us all.
You know what I am talking about.
People are really good until they get ruined by our mean culture. Let's go back to our roots of goodness. Tear down the walls! Free us and we will be like angels again.

Change laws into rules and rules into guidelines and guidelines into suggestions and suggestions into silence

Let it go

Winter In Los Angeles

Be Ready For The Next Recession

Some things you can predict.
There will be another recession some time in the future.
The current expansion is now about 20 months old.
Already there are signs of overheating.

The uprising in Egypt was partly triggered by rising food prices.
That is a sign of overheating.

The price of oil is approaching $100 a barrel.
That is a sign of overheating.

Three million dollars for a 30 second spot on the super-bowl.
Overheating

I hope this expansion will last a long time.
But it could end at any time so be ready.

Geoffrey F. Morgan Works

I compiled this information about some of the works of Geoffrey F. Morgan. He wrote the texts for these high school musicals.

copyright title music publisher
1921 Riding Down The Sky Geoffrey O'Hara Bost., Birchard
1921 The Sunbonnet Girl Frederick G Johnson Cincinnati, Willis Music Co.
1924 The Belle of Baghdad Frederick G Johnson Chicago : Raymond A Hoffman
1926 Tulip Time Frederick G Johnson Chicago : H.T. Fitzsimons Co.
1927 Peggy and the Pirate Geoffrey O'Hara Boston : C.C. Birchard
1927 Lantern Land Geoffrey O'Hara Boston : C.C. Birchard
1927 The Count and the Co-ed Geoffrey O'Hara Boston : C.C. Birchard
1928 Riding Down The Sky Geoffrey O'Hara Boston : C.C. Birchard
1928 Marrying Marian Fred Rose Chicago, T.S. Denison
1928 In Hot Tamale Land Chicago, T.S. Denison
1929 In Hinky-Doodle Town Chicago, T.S. Denison
1929 A Dumb Waiter Fred Rose Chicago, T.S. Denison
1929 A Royal Cut-Up Chicago, T.S. Denison
1929 The Pride of Pasadena Chicago, T.S. Denison
1929 The Sunbonnet Girl Frederick G. Johnson Ohio : Willis Music Co.
1930 Daniel Boone Samuel Richards Gaines Boston, C.C. Birchard
1930 The Tea House of Sing Lo Daniel ProtheroeChicago : H.T. Fitzsimons
1930 Don Alonso's Treasure Arthur A Penn New York : C. Fischer
1930 Rose of The Danube Arthur A Penn New York : C. Fischer
1930 Sonia; or, The Girl From Russia Don Wilson Cincinnati, Willias Music Co.
1931 A Bold Front Fred Rose Chicago, T.S. Denison
1932 A Dumb Waiter Fred Rose Chicago, T.S. Denison
1932 Up In The Air Don Wilson Chicago : H.T. Fitzsimons Co.
1934 Crocodile Island Frederick G Johnson New York : C. Fischer

Dow Touches 12,000

1/26/11 early in the morning.
DOW 30 Industrials touches 12,000.
New recovery high.
Better late than never.
I always thought it would happen sooner.

But you can't predict the future. It is uncertain, random, hidden, meant to be a surprise.
Now what?
Up and down.
But it looks good for the next couple of years.
People are getting more productive and feeling more optimistic.
Gold has been going down lately.
That is good.
Gold is a silly thing. And gems are silly things.
Diamonds are silly things.

Obama says, "WIN THE FUTURE."
I don't get what that means.
He calls for struggle and sacrifice.
I say, "NO STRUGGLE."

we don't need to struggle.
or fight
Just set goals and work calmly toward them. That is sufficient.
And every day is sufficient.

Business Experience

Been trying to make a living now for about 35 years. And succeeding.
And I have learned a few things.

Started out as an itinerant piano teacher. Pretty soon I had 27 students. Then I decided to raise my rates and pretty soon I had fewer students.

Then I got involved in apartment management
first as an employee
later as an owner

We always stay full. When we have a vacant unit we do what it takes.
Sometimes it means a lot of refurbishment.
But really it is always about the price.
With a reasonable price we always stay full. Prices do fluctuate and sometimes we get more and sometimes less.

Recently we are getting less. But we are still full. I don't mind cutting my prices aggressively. What I mind is having a vacant apartment.

I read how the unemployment rate in LA County is at an all time high of 13%.
Why would this be any different from my experience?

Why would supply and demand theory not apply to the labor market?