Showing posts with label crazy economics. Show all posts
Showing posts with label crazy economics. Show all posts

Monday, January 12, 2009

2008 Reading Roundup?

Not exactly.

Everyone else has done their end-of-year roundups, and I've enjoyed visiting everyone's blogs and seeing what everyone enjoyed reading and, of course, adding to my TBR list, which is now up to 417 items!  Thanks, guys!  ;)


Instead of a "best of" list though, I wanted to highlight a couple of books that I have thought about more and more as the year has gone on and on and that I would highly recommend reading given the current economic situation.  One is The Worst Hard Time: The Untold Story of Those Who Survived the Great American Dust Bowl by Timothy Egan.  The other is The Omnivore's Dilemma: A Natural History of Four Meals by Michael Pollan, which I reviewed  here and here.  As well as being interesting reads, I think these two books do a great job of illustrating how we screw things up when we try to manipulate them too much and how well things can work if we would just let them do what they are supposed to do.  

At first glance, the Great Depression and the Dust Bowl may seem like completely separate, sadly coincidental events, but their relation to one another is strong.  For years, YEARS I tell you, Native Americans took advantage of the animals and the plants that were naturally occurring in North America.  Americans of the non-Native variety, encouraged mightily by their government, decided that the best way to move forward and prosper would be to kill off all those pesky buffalo, dig up all that stupid grass that they eat and grow wheat and cows instead.  Great idea.  Hey, I know, after we've done that, let's go to the desert, pull out those pesky cacti, kill off all the rabbits and instead we'll raise fish and bananas!  Huh.  The bananas and the fish are all dried up, and the coyotes are eyeballing our children.  Why isn't this working??

To give the people credit, these were the true pioneers of our nation.  These were the people who were brave enough to leave their homes behind and venture out to places like Oklahoma, Nebraska, Kansas, Texas, New Mexico and other wide open places where they could stake out hundreds, even thousands, of acres for themselves and try to make a life for themselves and their families.  These people had a lot of faith and determination and, for that, I admire them.

At first, things looked good.  People were making lots of money selling wheat, farmers were riding around in their Prada saddles, wearing their Gucci cowboy boots; driving their BMW tractors, you know, the ones with the gold rims and the diamond-tipped plows; women were decorating their houses in the latest Martha-Stewart-approved styles; and the kids all had their own iPhones. (It's been a while since I read the book, but that was the general feel of things if I remember correctly.)  Then the Depression hit.  And then.  THEN the Dust Bowl hit.  Y'all.  I had NO IDEA.  I can't believe I had never heard more about this other than, "and then the Dust Bowl hit and farmers had a really hard time."  (No, I haven't read The Grapes of Wrath, why do you ask?)  Clouds like giant, rolling thunderheads of dirt would sweep over entire states.  People in New York were getting hit with dust from Kansas.  Cars were buried.  Seriously.  I had no idea.  People looked up and saw this coming at them:    

I don't know about you, but that would scare the crap out of me.  I found this picture of a "black blizzard" over Prowers, CO, around 1937 at this web site.  Please go check out their other pictures.  

So, anyway, farmers are sitting high on the hog, growing tons of wheat, so they decide, this is great!  I'm going to plow up another 1,000 acres next year and plant some more!  Well, eventually everyone's thinking the same thing and the market is flooded with wheat.  Oh, also, Wall Street fails.  Prices start to drop, so the next year, the farmers have to plow up 2,000 acres because now they're only getting $.03/ton instead of $.27/ton (my prices could be off, but come on, everything cost like $.03 in 1931.  Inflation's a bitch.)  Eventually, millions of acres have been plowed and planted, then the drought hits, crops die, the top soil dries up and blows away, now there is no good land and no water.  What's a farmer to do?  Try to plant more next year.  Except next year's even worse.  Eventually, millions of acres of land have been plowed under in an attempt to get even a few acres of crops to market.  The worse the storms, the worse the crops; the worse the crops, the more land has to be plowed, the more land that is plowed, the worse the dust storms.  America is in the throes of the Great Depression, nobody has any money to spend on groceries, and nobody can grow anything to feed themselves.  This is a bad situation.  This timeline from the 1930s seems eerily familiar-read a little bit about the events leading up to the Depression and see if they don't strike a little too close to home right now.  (Thanks to PBS for the timeline-they have a lot of other information that you can link to on their site regarding the Depression and the Dust Bowl).

Cut to The Omnivore's Dilemma, present day (roughly).  Pollan examines some of the agricultural standards that are in practice today and contrasts and compares them.  Of course, when it comes to feeding the masses, corn-fed beef on a giant feedlot seems like the best solution, but what happens if all of your corn crops are wiped out?  What happens if a particularly deadly virus sweeps through your cattle who are already relying on all kinds of supplements and antibiotics to keep them alive?  What if this year's batch of vaccinations is contaminated?  What happens if there's a fire at the plant that manufactures all of your synthetic fertilizers?  Enter the small organic farmer who raises chickens, rabbits, pigs, and cows who are allowed to roam free and graze on climate-appropriate grasses that their systems are naturally adept at digesting.  These grasses are rotated with other crops and replenished by the animals' manure as they wander amongst the fields-no synthetic fertilizers are needed.  On a one-to-one basis, there's no way the small farm can feed as many people as the big industrial farm, but the potential for loss is also less.  If all your corn is wiped out one year, hopefully you will still have wheat, beans, and onions to sell.  If all your chickens take ill, hopefully the cows will remain unaffected and another small farmer nearby will be able to give you a couple of his chickens.  If, heaven forbid, your farm should go out of business, hundreds of other people will not be out of their jobs.  

Between these two books, there are lessons to be learned, I'm sure of it.   

I know this sounds like a bunch of doom and gloom, but the intent of this post isn't to scare anybody or convince anyone that the sky is falling.  I think this is a good chance to take a good look at the past and try to prepare for what might be coming.  I think things are going to get worse before they get better.  I don't think we are anywhere near the end of this financial debacle that we seem to have gotten ourselves into, but I think this is a good opportunity for everyone to start thinking about the little things.  

There has been a lot of talk about reviving the vegetable garden a la the Victory Gardens of the 1940s-is it ok to have a vegetable garden in your yard?  (Thanks to Garden Rant for that link!)  Will the neighbors think you're a hillbilly?  Is it worth it financially?  Nutritionally?  Socially??  Can it make a difference on a national level if we are all growing our own tomatoes instead of having them shipped all over the country? Is Obama going to have a vegetable garden at the White House and will it be organic?  Will it be just big enough to feed his family or will it supply food banks and local schools?  In what direction will that one seemingly small decision lead our country?  Maybe no where, maybe to great places.  Who knows?  

If you have reviewed either of these books, or if you have any other thoughts about this post, please leave me a  comment!      

Tuesday, January 6, 2009

Dear Bank of America

Dear Bank of America,

I tried protecting your anonymity here, when I mentioned the two times you accidentally charged us $150 for Overdraft Protection that we didn't need, but I no longer care.  We have a checking account and a credit card with you.  We have overdraft protection set up so that if our checking account is ever overdrawn, it will pull from the credit card to cover the overage.  You decided to randomly charge $150 to our credit card (twice!) in the name of "Overdraft Protection" even though our checking account was never even anywhere close to being overdrawn.  The second time you charged us a late fee on the $150 that you inappropriately charged to our account-fair enough.  We probably should have contacted you sooner about this mysterious $150 charge.  After about 8 hours on the phone with your various minions, you agreed that an error had been made and that this situation would be corrected.  This resulted in a $4.19 credit to our account, for which you sent us two (2) checks, each in the amount of $4.19.  We deposited the first check and decided that the second check must have been an error and never tried to deposit it.  Silly us!  It must have been the first check that was the error because, guess what!  It has been returned unpaid due to a stop payment order.  So, now not only do we not get the $4.19 that you owe us, but we now owe our (non-BofA) bank a $5.00 returned-item fee.  Thank you.  No, really.  This is AWESOME.  

Sincerely,
Considering moving all of our accounts to another bank



Seriously, am I out of line for expecting more from a financial institution that just received millions of dollars in bailout money?  I know the bailout money doesn't really have anything to do with me and my little situation one way or the other, but come on!  Can't they do a little better job with all that money than this??

The first check was issued on December 1, the second on December 4.  It is now January 6, and at no time during the past month have we received any correspondence from BofA saying, hey, our bad, we sent you two checks.  Please don't cash one of them; if you have already cashed it and it has somehow resulted in fines or penalties we would be happy to take care of those for you.  We value you as a customer and apologize for the inconvenience.  

Oh yeah, also, we got a nice little notice from the credit bureau folks indicating that our credit report had changed.  You want to guess why?  I will give the BofA folks credit for at least jumping on that little fire and putting it out.  They sent a letter to the credit reporting agency immediately stating that we have a zero balance on our account and that it is not, in fact, past due.  So.  At least there's that.  

Wish my husband luck as he spends another 4 hours on the phone trying to straighten out this matter about the checks.  Is it worth it, or should we just suck up the $9.19?  Honestly, it's not worth the time it's going to take to fix it, but it's the principal of the thing, dammit.        

Tuesday, December 16, 2008

Five Go-old Rings!

This is a post where I am mostly going to re-direct you to a bunch of older posts in order to appear "helpful," when really what I mostly am is "lazy."

Firstly, since it is getting close to Christmas, some of you may be starting to panic if there are still people that you haven't crossed off your list yet.  You know how it is, you want to get them something nice, but you are running out of time, and you're afraid you're going to end up buying them something cheezy out of desperation.  Perhaps I can help.  Go here to read all about my friend at Silversmyth who makes hand-made jewelry-beautiful, practical, AND personal.  (Just substitute "Mother's Day" for your holiday of choice as you read).   

Here is a showcase of some of the pieces you can find at Silversmyth.com




In case you're curious, you can see the Silversmyth herself at work here




Even if you don't buy anything, stop over and tell her I said, "Hi!"  She's quite sweet!

Maybe jewelry isn't your thing.  That's ok, because in the post I referenced you to earlier (here it is again, in case you forgot in all this holiday madness!), you can also read about the fabulous chocolates at Lesley's Life is Sweet.  Not only does she make chocolate to die for, but she donates part of her proceeds to charity, and I'm pretty sure that officially cancels out any guilt that might be associated with indulging in the chocolate.  

Okay, so maybe jewelry isn't your thing and nobody you know likes chocolate, and you'd just like to make some charitable donations this year to help out those less fortunate than you.  Guess what!  I have a post for that too!  Here is a roundup of some of my favorite charities and why I like them.  Maybe one of them will catch your eye, or maybe you have some of your own favorite charities.  Either way, donations (of time or money) are greatly appreciated, especially now with more and more people finding themselves in need and more and more people finding themselves with less to give.  

What is standard practice for gift giving in your family, and is it changing this year due to the current economic situation?  Are you finding it difficult, or is it a freeing change of pace?  Whatever your situation is this year, I hope you are finding ways to celebrate the important things like friends and family.   

Monday, December 8, 2008

How I'd Like to See This Go Down

The Big Three:  We'd like $34 billion, please.
Congress:  I think we can make that happen for you.  I'd really like to see you walk away with this $34 billion!  In fact, I think we can do this today, but I'm going to have to go talk to my manager.

...

Congress:  (sliding a piece of paper across the desk to The Big 3)  Well, my manager wasn't quite comfortable with $34 billion, but I think this will still make you very happy.  Whaddaya think?
The Big 3:  (crying) This is just a Polaroid of someone's middle finger!
Congress:  I think it's a pretty fair offer, but if you want I can go back and try to talk to my manager again.  

...

Congress:  Okay, I really fought for you guys, but this is the best I can do.  My manager says you can have twelve dollars and fifty cents, and you have to buy the rust-proof coating for all of your jets.  Oh, and I'm going to need that picture back.  Well, fellas, whaddaya think?

It might not solve anything, but it'd be fun to watch!

Helen, of Margaret and Helen, has a different approach, which I also like.  

**Updated 5:53PM-I just saw this article about Polaroid.  I think The Big 3 should take the picture and be happy.  It will be worth a lot of money someday.

Thursday, October 9, 2008

Sign of the times



I saw a Rolls Royce yesterday.  In the parking lot.  At Walmart.

I can't quite decide if this makes me a little happy or a little sad.  It was an older model, like the one pictured here, and it had a WWII Disabled Veteran's plate on it.  That sort of made me happy because, hey, WWII disabled vet-good on him for being able to enjoy his golden years in style.  It also made me laugh a little because, well, it was a Rolls Royce.  At Walmart.  This is the part I can't decide about.  Maybe this person has just always been frugal and that's how he was able to buy himself a Rolls Royce, in which case, we could all take a lesson.  On the other hand, maybe this is just a sign of the times, that the Rolls Royce owners of the world have to shop at Walmart now, in which case, man, are we screwed!

What unusual things have you been seeing lately that might be a good sign of the times?     

Sunday, October 5, 2008

$omething to keep an eye on

If you have overdraft protection on your checking account which is provided by a credit card, please be sure to check your credit card statements to make sure that overdraft protection hasn't been invoked and charged to your credit card when your checking account has not, in fact, been in an overdraft situation.

This has happened to us twice recently-a $150 charge has shown up on our credit card statement as a cash advance with the description "Overdraft Protection" even though our checking account was never even anywhere near being overdrawn.  We eventually got them fixed, but it was a pain both times.  You have to get the credit-card-division people on the phone with the bank-division people, otherwise they just run you in circles telling you that it's a problem on the other side of the house.  

I'm going to assume that this is an innocent mistake, but innocent or not, it's a good way for a bank to quietly build up some cash (well, good might not be exactly the right word, but you know what I mean).  This is a large bank I'm talking about here, a bank that claims to have "added more than two million net new retail checking accounts for the second year in a row" in 2007.  You might be thinking, "What's $150 to a bank this size?"  Well, not much all by itself, but for the sake of argument, let's assume that they had no existing checking accounts prior to 2006 (even though the bank has been around in some form or another for over a century, under its current moniker since about 1929, and operates in over 20 countries world-wide) and that a mere 10% of those checking accounts have overdraft protection via a credit account.  That's 400,000 checking accounts, and if each one of those accounts was accidentally charged a one-time fee of $150 for overdraft protection, that's $60,000,000 right there.  $120,000,000 if they all got charged twice like we did.  

Now granted, a lot of people will catch an error like that and work to get it resolved, but a lot of people out there never even look at their statements, don't keep good enough records to know whether or not this is a legitimate charge, or are too busy worrying about other things to call up the credit card company and fight over $150.  Let's face it, for some people $150 isn't worth fighting over.  So, how many of these $150 charges go unnoticed?  I have no idea.  Again, let's be conservative and say 5%.  That brings the total dollar amount that the bank gets to keep down to a mere $3,000,000.  Ok, so that's still chump change to a bank this size, but remember we only counted 2 years' worth of new customers.  Let's expand that now to include all existing customers.  I don't know what that number is, but I guarantee it's a lot more than $3,000,000.  That's a lot of free money that the bank didn't have a right to and that should be in their customers' pockets.   

Again, I'm not saying that this was intentional on the bank's part, I'm just saying that little things add up, and this has the potential to be a huge benefit for an already huge corporation at the expense of its customers.  With all the craziness that's been going on in the banking world lately, I'm sure there are bound to be some technical glitches as banks close, merge, purchase, sell off assets, etc., so check your bank and credit cards carefully to make sure you aren't being charged incorrectly.  Just because something appears on your official bank statement does not mean it's legitimate!