Sunday, August 26, 2018

The Innocents Abroad, Mark Twain

 Now I understand why Mark Twain is considered the quintessential American writer by many people. His dry, sardonic remarks on Old World masterpieces reveal a New World arrogance that many American travelers to Europe in the 19th century (and even today) resonated with. We were the new kid on the block, the one with all the toys and the flair, who lit up the schoolyard with gilded boots and fresh gadgets. Twain was simply channeling the energy of American conscience during his 1867 voyage, using a lengthy itinerary through Southern Europe, the Middle East, and North Africa to spark the interest of his readers, who didn't travel abroad as much as we do today. 

His brutal honesty amuses those of us who have already visited some of these places and thought of them similarly. Other times, they offend us who rather enjoyed a piece of art, a mesmerizing church, or an ancient city full of cultural relics. But we can easily forgive him because his anecdotes are hilarious, while the artistry of his descriptions move the soul on many levels. He doesn't mean to insult the Old World; rather, he wishes to express a latent national jealousy glossed over by wit and mockery, for the density of marvels these foreign lands possess, and the man-made beauty some of them emanate; as opposed to his own country, where natural landmarks triumph over human ones. Some of the best passages in this book are where he describes places even he, the master of biting humor, yields to their wondrous power: The Palace of Versailles, Milan Cathedral and the Sphinx come to mind first. 

Wednesday, August 22, 2018

Wat Phra Kaeo 

I have seen New Jerusalem, and it lies in Bangkok. Wat Phra Kaeo is the most stunning religious monument I’ve seen, and I’ve seen the Vatican.  Golden temples encrusted with jewels of all kinds mesmerize the eye.  Carvings of mythical Buddhist beasts surround them in static loyalty.  Inside the main temple, they let you meditate in front of a holy shrine, pyramidal in shape, which holds up an emerald Buddha at the top, which is actually jade, but I believe "Temple of the Jade Buddha" is already taken as a place name in China.  The number of artifacts on the shrine is mind-boggling.  It reminded me of the Sistine Chapel because there were paintings everywhere (except for the ceiling).  However, the holiest chapel of art in Christianity comes short compared to this temple, if not for the fact that the shrine outshines almost any altar.  Michelangelo would have needed a lot more help to rival it.  

Saturday, August 4, 2018

The Yield Curve

I read in the news today about something called the yield curve- a graph that measures interest rates against bond maturity dates.  A normal curve has steep short-term yields which flatten out toward longer term ones, generally signifying a growing market.  An inverted one typically occurs before a market crashes, when short-term yields (interest rates) are higher than long-term ones.  The news story claimed that the yield curve has started to invert, meaning that a recession will be imminent in the next couple years. 

The inversion is thought to be caused by a lack of confidence in market stability by investors, spearheaded by entities like the Federal Reserve maxing out interest rates and seeing them plummet when the demand is no longer there. 

The graph is an elegant illustration of the cycle that generates the market.  There can be no such thing as a stable, predictable market in a capitalist system where loans are given to people at such exorbitant rates as the current housing market demands.  It happened 10 years ago; it will happen again.  The market is a pendulum of doubt and confidence, propelled the emptiness of a greedy quarter of the economy (and the most important) that should be far more regulated by the government.  The Dodd-Frank act wasn't enough; more laws are needed to keep home prices at fair values. 

The yield curve is special in that it has predicted every recession in the U.S.A. since 1970.  Why aren't we learning from what happened in the past?  Why aren't we listening?  Do the recessions only work for the people who hold all the cards?