Month: August 2019

ECONOGAL > 2019 > August

Firefighting: The Financial Crisis And Its Lessons Book Review

Posted on by Econogal

Firefighting: The Financial Crisis And Its Lessons is the three person account of The Great Recession and the steps taken to repair the economy. The individuals credited with writing the book are Ben S. Bernanke, Timothy F. Geithner and Henry M. Paulson. The information presented is straightforward. One of the best aspects is the use of the firefighting metaphor to explain the steps taken at the time to mitigate the panic. Furthermore, my own memory of the tumultuous time meshes with the writing. So, the information rings as fact more than opinion.

A Keynesian Approach

Those of you with an economic background can differentiate between a Classical and a Keynesian approach to economic policy. For those of you unfamiliar with the theory, click here for a tutorial. The steps taken during the financial crisis of the Ought’s clearly represent the teachings of John Maynard Keynes. The Federal Reserve led by Bernanke, and the Treasury Department, first shepherded by Paulson during the Bush Administration then spearheaded by Geithner under President Obama, went to great lengths to stop the downward spiral of the economy. Firefighting takes you step by step through the interventions.

I appreciate the book for what I perceive is an honest portrayal of the cause and effect of the crisis. The authors go to great length to posit why some firms survived while others folded.  Since I vividly remember public events as well as personal anecdotes from the time, I feel quite comfortable highly recommending the book.

Firefighting Lessons

In addition to relating the fiscal and monetary steps taken to fight The Great Recession, Firefighting puts forth warnings for the future. The authors have two key concerns. First, the three former public servants are concerned with a loss of power for both the Treasury Department and Federal Reserve. They make a good case for the immediate ability by the agencies to react to future crises.

Second, the authors are duly concerned with the functionality of Keynesian economics. Government intervention in times of crisis is only one-half of the economic theory. Keynesian economics also calls for replenishing the coffers during expansions. This is not occurring. Instead of bringing the deficit down, our debt levels are increasing. Thus, the authors believe, both monetary and fiscal policy will be hampered in firefighting the next economic downturn.

The argument between interference and non-interference in the markets is central to economic philosophy. The debate between the Classical school of thought and the Keynesian Theory is reflected today in our divided politics. I encourage all to read Firefighting including members of Congress.

One of my favorite websites to share with new students of economics is the US Debt Clock. Visiting this site is eye opening. Similarly, Firefighting will also open eyes. For example, the book acknowledges the public relations nightmare of propping up AIG.

Personally, I saw and was offended by the lavish expenditures of AIG during the height of the meltdown. But I did not know the flip side until reading Firefighting. Grudgingly, I admit the intervention was necessary. Thus my appreciation of the work of Bernanke, Geithner, and Paulson. Both for the book and their many sleepless nights a decade ago.

 

Mystery of the Resident Spider

Posted on by Econogal
Spider web

This past weekend we spotted a beautiful web attached to our back porch. Since I was busy in the garden, I did not stop to study. But I did leave the web and its’ resident spider alone. However, during a break from gardening I noticed the web was completely gone. A brief discussion ensued with neither of us recalling accidentally  running into the web. Plus the web was big enough to notice if one passed through.

Speculation abounded. Perhaps a breeze knocked it down. Or one of the many birds inhabiting our trees enjoyed a tasty breakfast. The hummingbirds use the silken strands in their nests. So perhaps they were the culprits. Maybe even the sprinkler destroyed the web. But the next day another web appeared and disappeared.

This appearance then disappearance is on day five. But I finally have an answer. Or at least a partial answer. However, I now have many more questions.

Spectacular Web of the Resident Spider

Large intricate spider web
Spiral threads make a beautiful design

Today’s web is spectacular. The photos don’t quite do it justice. While taking the pictures, a breeze blew up. Then the spider skedaddled to the safety of the roof eave. (Our breezes on the High Plains can resemble gusts in other parts of the world.) So I now know what happens to the spider. I am typing this on the back porch in hopes of discovering what happens to the web.

I am not sure what type of arachnid is constructing these webs. There are some spiders I can identify. Tarantulas are easy and are currently on the move in this region. They are most often spotted on the roadways, but do occasionally appear in the side yard. Daddy Long Legs and Black Widows are also identifiable. Wolf spiders are given free rein in the garden, and it is possible that this one is related. But I’m not certain.

Close up of resident spider
Do you know this spider?

So, I think some research is in order. The youngsters in the family might know of an app I could use, but they are not around. Perhaps, I might do a web search. But, most likely I will make a trip to my local library. The generation gap exists for me. I tend to search for answers the old-fashioned way.

Meanwhile, the wind has died down. So the resident spider has returned to the web. Maybe the breeze is not the cause of the disappearing webs after all. But, do I have the time and patience to just sit and observe? Perhaps.

The People vs. Alex Cross Book Review

Posted on by Econogal

After taking a multi-year hiatus from reading the Alex Cross book series by James Patterson I picked up The People vs. Alex Cross. If you are wondering why I stayed away, my reason is quite simple. The books were becoming way too scary! Thus, I had trouble sleeping. Especially after Patterson’s release of Cross Country. However, I missed the characters as well as Patterson’s writing. So, I picked up The People vs. Alex Cross. I am glad I did.

Multiple Story Lines

Patterson weaves multiple story lines together. First, Alex is on trial for murder. This part of the plot hearkens back to a previous book. One that I did not read. Yet, my enjoyment of The People vs. Alex Cross prevailed. Then there is the current case. And the current case is one that Alex shouldn’t be working on. But, of course he gets involved anyway.

For those not familiar with the Alex Cross series, Cross is a crime fighter with a background in psychology. He is married to his immediate boss and lives with his grandmother and three kids. All play a part in the book series. Featured in The People vs. Alex Cross is Ali, the youngest of his offspring.

The current case revolves around young missing blondes and various websites portraying harm to them. Thus, Patterson links the story to a current problem in technology, the dark web. For example, Patterson includes in his plot details on how video uploaded to the web can be altered. Even computer geeks can be fooled. This plays a major part of the story.

The People vs. Alex Cross

Furthermore, the theme of doctored video footage is carried across to the second story line. Incriminating evidence of Cross’ wrong doing in the form of video recording is presented to the court. But the precocious Ali discovers how an unaltered tape contains false information. Sometimes you can’t believe what you see.

Patterson’s viewpoint on police shootings is revealed to the discerning reader. However, this does not interfere with the book. Politics is an underlying theme and not a focal point.

Above all, I enjoyed The People vs. Alex Cross. Mostly because there is plenty of action and I could handle the suspense level. The struggle of good vs. evil lends interest for the reader. But no nightmares! Patterson includes just enough technology to pique one’s interest in a new type of sleight of hand. I find it absolutely amazing what can be achieved with today’s technology. And the technology lends itself well to the thriller genre!

Don’t Stop Believin’ Book Review

Posted on by Econogal

Don’t Stop Believin’ is the title of a great song from the 1980s. It is also the name of a memoir I just finished and highly recommend. Jonathan Cain wrote the book. He also wrote or co-wrote countless lyrics. Many belong to songs you know and love.
But the book is not just a who’s who of ballad bands from the 80s. In fact, the early parts focus on events that shaped Cain into the man he is today. Cain has a tremendous memory, so the story begins before he reaches kindergarten. The words flow. Just like the music. There is homage to his working class background and the strong religious upbringing.

Key Life Events

As with all of us, there were key turning points in Cain’s life. He shares these with the reader. Perhaps most significant is one that occurred in grade school. A catastrophe began shaking his personal faith. Yet, or perhaps because, his passion for music continued to soar.
The memoir makes it clear that success did not happen overnight. There were starts and stops and re-starts. Cain very much paid his dues. He also made his share of mistakes. The personal story is as compelling as the information on what it takes to create music. Notes so memorable that you keep humming them in your head long after you retire for the night.

Connection with the Author

To be honest, I love the music of the 80s but I am not one for recognizing the band members. I remember a time in the late 70s when working at Howard’s Ice Cream in Daytona Beach, my co-workers freaked out over a pair of “long hairs” parked out front. One headed for the package store and one came over for  an ice cream cone. I remember this because the man tipped me more than what I made in an hour. Turns out he was one of the Allman brothers. But I digress.

Jonathan Cain is in the same light. I picked up the book because I liked Journey and was interested in the topic. I could not believe how many connections lay within the story. He wrote one of my all- time favorite songs. Plus he shares how he was touched by the life of a youngster with cystic fibrosis. (Read here for more on the same subject.) Finally, he has connections to the same part of Central Florida. His wife preaches at a church just a handful of miles from where I type this now.

Don’t Stop Believin’

The message in this book is one of not giving up. Furthermore, an important message for Christian readers is that God doesn’t give up on his believers. I found Don’t Stop Believin’ informative, entertaining and inspirational. I highly recommend this book.

Dealing with Dementia: Changes on Many Levels

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Dealing with Dementia

Today I am focusing on the many challenges of dealing with dementia. For anyone looking for a scientific based posting, this is NOT it. Instead, these are my personal reflections of coping with the dementia my loved one faces. Thus, I am writing anecdotally, but perhaps you will find my experiences helpful.

Brain Changes

As a layman, I find the workings of the brain fascinating. The brain is the control center for our bodies. Thus, we cushion the heads of babies, wear helmets if playing football or riding cycles, hard hats on construction sites and numerous other activities in the hope of preventing damage to the brain.

The brain can be impacted by other factors. I have read several of Dr. Daniel Amen’s books on the brain. His books, Change Your Brain Change Your Life (1996) and Change Your Brain Change Your Body (2010) were life changing for me as well as one of my offspring. Amen details how diet and exercise can affect the brain in addition to brain injury. Click here to visit his website.

Personality Changes

I have a hard time grasping the science behind how changes to the brain affect changes to one’s personality. But, I believe this to be true. My family member has not gone silent like so many. However, her sentences are non-sequitur at best. Under the worst of circumstances she makes absolutely no sense and gets frustrated if you cannot follow her thoughts. I get frustrated too. And very sad.

On the other hand, she still has a great smile and she smiles often. Furthermore, she continues watching TCM and the old movies with enjoyment. Recently we watched the version of Seabiscuit with Shirley Temple. She was fully engaged to the point of skipping the ice cream hour. She always enjoyed going to the races at Tampa Bay Downs so she connected to the movie.

Other changes revolve around games. Board games and card games were favorite past times. The whole family could spend hours playing Spinners and she belonged to multiple bridge clubs. But now the attention span needed to play is gone. Participation is limited to games where she can be guided.

Role Reversal

Individuals who are dealing with dementia in a parent also deal with a role reversal. This is my case. I have the power of attorney and am second in line as health advocate. Care decisions are stressful. As a result, I am already planning for my future. Just in case.