Author Archives: Tom

Toughest baseball ticket in town

Posted on by
Reply

reckling%20park%203-2006.jpgNo question about it — the toughest ticket to a series of baseball games in Houston this season will be to this weekend’s NCAA Super-Regional baseball tournament series between the Rice Owls and the Texas A&M Aggies at Reckling Park on the Rice University campus in the shadow of the Texas Medical Center. The winner of the best-of-three series moves on to the College World Series in Omaha, Nebraska, which begins on June 15. Ryan over a Texas A&M & Baseball INPO provides a good preview of the matchup.
Inasmuch as Houston is one of the most prominent high school and college baseball hotbeds in the country, the series sold out shortly after tickets went on sale earlier this week. The Owls (52-12) have been a college baseball power over the past decade under the driving force of Coach Wayne Graham, while the Aggies (48-17) this season revived a generally strong program that had been underperforming for the past several seasons. Game times are today at 6 p.m. (ESPN); Saturday: 5 p.m. (ESPNU); and Sunday, if necessary at 6:35 p.m. (ESPN2).
I’ll be pulling for the hometown Owls in this series because I had the privilege of coaching a couple of the Owls’ players — LF Jordan Dodson and C Danny Lehmann — during their youth baseball days in The Woodlands. Both players were able to overcome my coaching to become starters at The Woodlands High School and at Rice, where they have already enjoyed one trip to the College World Series over the past three seasons. Although I cannot take any credit for either Jordan or Danny’s baseball accomplishments, I am proud of the fact that both of them are high on-base percentage guys with solid slugging percentages who understand that the teams that create the most runs are the ones with players who get on base and hit the ball hard a high percentage of the time.
By the way, this earlier post reported on pointed criticism that Owls Coach Graham was receiving around some baseball circles for the high injury rate of minor league baseball pitchers coming out of the Rice program over the past several years. The Chronicle’s John Lopez recently wrote this profile of Coach Graham in which he addresses that criticism head on. Check it out.

Snow Fall

Posted on by
Reply

cocaine.jpgRobin Moroney over at The Wall Street Journal’s Informed Reader blog picks up on this interesting Ken Dermota/Atlantic ($) article that reports on the weird economics relating to the demand, the supply and the price of cocaine:

Demand for cocaine stays steady, Colombiaís coca fields are destroyed, yet the drugís street price in the U.S. continues to fall . . . [as] drug smugglers and dealers have eked out efficiencies in their operations to keep their prices low. The U.S. Coast Guard has been able to catch only a small percentage of the drugs entering the country since President Nixon declared a ìwar on drugsî in 1971. In 2000, the U.S. decided to switch tactics and take the fight to Colombia, which produces 90% of the cocaine sold in the U.S. Since then, it has spent $4.7 billion fighting rebels who grow and sell the crop, as well as spraying coca fields from the air.
The price of cocaineóthe pure version, not crackóhas kept falling. In the early 1980s, the price of a gram of cocaine was about $600. By the late 1990s the price had fallen to about $200. According to the Drug Enforcement Administration, the street price of a gram of cocaine in 2005 was $20-$25 in New York, $30-$100 in Los Angeles and $100-$125 in Denver.
Some of the price decrease has come from more efficient distribution networks. Some New York smugglers have chosen to eliminate the middleman and pick up their drugs directly from Colombia, offering ìfactory-to-youî prices. The surging trade with Mexico has increased the nooks and crannies for drugs to be hidden as they cross the border, making smuggling both safer and cheaper.
Labor costs also have decreased. Street vendors take a smaller cut of the drugís proceeds. A lot of the drug dealers who fell prey to an aggressive imprisonment campaign in the 1990s are now leaving prison. Their felony conviction and minimal job experience means they have few other ways to make money and are willing to take a pay cut.
The falling street price also reflects the lower risk of handling the drug. The violence of the 1980s crack boom has faded and, since 2001, federal drug prosecutions have fallen 25% as agents get diverted to the hunt for terrorists.

While the Atlantic article focuses on why the price of cocaine continues to drop even though the supply sources are declining, what’s particularly interesting is that the demand for cocaine is not rising dramatically as the price declines. Given its addictive nature, it makes sense that the demand for cocaine would be somewhat price inelastic, but it seems logical that demand would increase at least to some extent as the price falls. This does not appear to be happening. Sounds like a good exam question for an economics course.

It’s not been a good week for federal agencies

Posted on by
Reply

fcc.GIFFirst, it was the dubious decision of the Federal Trade Commission to sue to enjoin the proposed merger between natural foods grocers Whole Foods Markets and Wild Oats Markets.
Then, as this Daniel Drezner post notes, Federal Communications Commission chairman Kevin Martin chose a rather interesting way to criticize the Second Circuit Court of Appeals decision this week striking down the FCC’s policy governing “fleeting expletives” on television.
So it goes in the wacky world of governmental regulation.

Giuliani’s hypocrisy

Posted on by
2

giuliani.jpgDoug Berman notes that Rudy Giuliani thinks that Scooter Libby got a raw deal. That is unquestionably correct, but what Giuliani failed to mention is that he is one of the politicians primarily responsible for the culture of criminalization that gobbles up productive citizens such as Libby.
As noted earlier here and here, Giuliani’s politically-motivated prosecution of Michael Milken and related destruction of Drexel Burnham during the late 1980’s ignited the criminalization of business interests that reached its peak with the destruction of Arthur Andersen, the prosecution of former Enron executives Jeff Skilling and Ken Lay last year and the ongoing trial of former Hollinger CEO Conrad Black this year. Indeed, the Bush Administration’s willingness to toss business interests into the cauldron of internecine criminal prosecutions for transient political purposes has largely undermined the Republican Party’s credibility in challenging the motives of dubious white collar prosecutions of businesspersons or politicians.
And lest you think that rich and powerful people are the only ones affected by what Giuliani has helped wrought, remember the name of Lisa Jones. As Daniel Fischel brilliantly explains in his book Payback: The Conspiracy to Destroy Michael Milken and his Financial Revolution (Harper-Collins 1995), Jones is a remarkable American success story — a teenage runaway and high school dropout who worked her way up through the ranks of Drexel to become the top assistant to one of Drexel’s most successful traders. Giuliani threatened to indict Jones in an effort to get her to turn on Milken (sound familiar?), but Jones refused to give in and remained loyal to Milken and Drexel to the end. Giuliani eventually prosecuted and convicted Jones for crimes that were never proven (sound familiar?) and she was sentenced to a year and a half in prison, later reduced to ten months. Other than Milken, Jones was the only longtime employee of Drexel Burnham who ever spent time in prison.
I don’t know about you, but that’s not the political legacy I’m looking for in a presidential candidate.

Ron Paul shines on The Daily Show

Posted on by
Reply

Ron%20Paul.jpgRepublican Congressman and GOP Presidential candidate Ron Paul from the Houston area exhibits a deft media touch while handling an interview by Jon Stewart of The Daily Show.
Banjo Jones must be proud.

Paul’s political warts and quirks — and there are many — will become exposed as the campaign wears on. However, his willingness to speak his mind — a rarity in American Presidential campaigns — is refreshing.

And you think Houston freeways are dangerous?

Posted on by
Reply

BULLSHARK_450.jpgAll you folks who enjoy swimming in coastal bays and inland waters close to the Gulf, take a look at what was caught in one of those over in Florida.
Meanwhile, when you have 8 minutes or so, watch the remarkable YouTube video below about a very tough buffalo calf’s difficult day. HT to Jane Galt:

Why these shareholders?

Posted on by
5

wholefoods060507.jpgThis Bloomberg article on Austin-based Whole Foods’ proposed acquisition of Wild Oats Markets confirms that officials at the Federal Trade Commission do not have enough to do:

U.S. antitrust regulators plan to file suit to block the proposed merger between Whole Foods Market Inc. and Wild Oats Markets Inc., the largest and second- largest natural-foods grocers. [. . .]
The agency is concerned that the combined company will control too much of the U.S. natural-foods market and increase prices. . .
“If Whole Foods is allowed to devour Wild Oats, it will mean higher prices, reduced quality, and fewer choices for consumers,” Jeffrey Schmidt, director of the FTC’s Bureau of Competition, said in a statement. “That is a deal consumers should not be required to swallow.”
The commission voted 5-to-0 to authorize staff to seek a temporary restraining order.

I mean, what on earth are these people at the FTC thinking? Since they haven’t moved to block a retail merger in a decade that it’s time to try and block one? What else could explain attempting to block a relatively small $600 million deal that would result in a combined company with just over 300 stores? Besides, it’s not as if Whole Foods is doing all that great, anyway.
The FTC seems to be saying that Whole Foods and Wild Oats are in a different market than conventional grocery chains. But that’s just plain silly. Not only will customers move to non-organic products if Whole Foods and Wild Oats price an organic alternative too high, virtually every retail grocery operation is now offering their own organic section in their stores. For goodness sakes, even Wal-Mart is offering an organic product section in many of its grocery stores these days.
Dana Cimilluca over at the WSJ DealJournal speculates that the FTC action is a pure political move to chill the overheated merger market. Maybe so, but that’s sure a petty reason to deny a relatively small group of shareholders an opportunity to realize some increasingly rare equity upside in the brutally competitive grocery business.

Minor League baseball can be pretty entertaining

Posted on by
Reply

Elk gets his spikes right

Posted on by
Reply

Elk060507.jpgHoustonian and Clear Thinkers favorite Steve Elkington apparently found a U.S. Open qualifier this year that allowed the competitors to wear spikes on their shoes. Elk fired a 36 hole score of 137 (64-73) to earn one of the 16 U.S. Open qualifying spots on Monday at the Colonial Country Club in Memphis, only the second time since 1999 that Elkington has qualified for the Open. 72 players were already exempt for the Open and Elkington nabbed one of the additional 83 spots that were up for grabs in sectional qualifying at 13 courses in the U.S., England and Japan on Monday. The Open will be held for a record eighth time next week at Oakmont, where Geoff Ogilvy will attempt to defend the title that he won last year at Winged Foot.
Speaking of local golf, the venerable Texas State Amateur Championship begins on Thursday and runs through Sunday at Whispering Pines Golf Club in Trinity, one of the best tracts in the Houston region. The 144-player field will be cut to the low 54 and ties after Friday’s second round. Former winners of the Texas State Am includes such noteworthy PGA Tour pros as Ben Crenshaw, Bruce Lietzke, Scott Verplank, Mark Brooks, Charles Coody and Bob Estes.

The importance of the images of war

Posted on by
Reply

iraq%20war%20dead.jpgFollowing on recent posts here and here on the seemingly intractable problems in Iraq, this David Carr/NY Times op-ed comments on the efforts of the U.S. military to control the publication of images of injured or killed soldiers from the Iraq War. Carr’s op-ed prompted this letter to the Times editor by University of Houston Professor Bill Monroe, who you may recall had the best line at the Memorial Service for the late Ross M. Lence. Professor Monroe’s letter provides as follows:

To the Editor:
ìNot to See the Fallen Is No Favor,î by David Carr (The Media Equation, May 28), suggests that the reigning assumption among leaders in Iraq is that we canít handle the truth. In a curious way, it may well be the duty of fallen soldiers to let us see them ó wounded, dying and dead.
If we have the temerity to ask them to risk life and limb protecting American interests, we must ask them to help us know what it looks like, what it feels like, so that we can decide, as a Republic and a people, whether we in fact want to exact that private and public cost.
ìIt is well,î Robert E. Lee is reported to have said, ìthat war is so terrible, lest we grow too fond of it.î
We canít handle the truth? We had better.
William Monroe
Houston, May 30, 2007