Barney Frank is a credit snob

barney_frank.jpgRemember awhile back when Barney Frank was actually making some sense in regard to a business matter?
Well, as that post noted, that didn’t last long. Rep. Frank is now advocating that investors in mortgage-backed securities should be liable for the underlying subprime loans that those securities facilitated because the investors violated the “loaned too much money” rule:

“More money was being lent than should have been lent,” Frank said in an interview from Washington. Frank, who last month predicted that the House would approve such a bill this year, said growth in the market for mortgage bonds “provided liquidity without responsibility.” [. . . ]
Lenders this decade have increasingly relied on mortgage-backed securities to fund new loans rather than tap capital from federally insured bank deposits. Frank called the process flawed, saying that as a subprime financing mechanism, banks’ exposure to the risk of default is excessively diluted.
By dispersing risk, the bonds fueled reckless and unscrupulous lending and compromised underwriting standards, he said. “There should be a decrease” in the money available for subprime mortgages, he said.

H’mm, the markets have already caused a dramatic decrease in the money available for subprime mortgages (without new legislation, mind you). Underwriting standards have tightened and the lenders with poor controls are already being washed out of the market. Investors who could affort to do so poured too much money into the subprime mortgage market, those investors got burned, and now the market has adjusted. But after too much money was poured into that market, just how little money does Rep. Frank want to have available in the future for people who cannot qualify for a conventional mortgage?
Rep. Frank’s proposal to penalize bondholders reflects that he doesn’t understand what has happened or simply doesn’t care because of political considerations. The growth of mortgage-backed securities has made the U.S. mortgage market the most efficient and productive mortgage market in the world. Rep. Frank wants to harm that market. Go figure.

Good training for taxi drivers

lives%20of%20others.jpgThe Lives of Others is a masterful Florian Henckel von Donnersmarck film about the Stasi, the East German secret police force, during the final days of the Communist government. I highly recommend that you see it if you have the chance.
This Roger Boyes/Times article about the movie passes along Alex Latotzky’s clever observation, which you will understand perfectly once you see the movie:

“Some ex-Stasi became taxi drivers, and very good ones, too; you just had to give your name and they knew the address.”

To Buy or Rent, that is the question

rent.jpgWhether to buy or rent is not always an easy decision, so I’ve been meaning to pass along this nifty NY Times calculator that provides you with a quick and easy calculation whether competing buy or rent offers make sense. This related David Leonhardt article that addresses a number of the issues, including the following observation:

Clearly, there are benefits to owning a house beyond the financial, like the comfort of knowing you can stay as long as you want or can fix the roof without permission. But real estate has been sold as more than a good way to spend money. It has been sold as a canít-miss investment. Back in 2005, near the peak of the market, the chief economist of the Realtorsí association, David Lereah, published a book called ìAre You Missing the Real Estate Boom?î The canít-miss argument was wrong then, and it may still be wrong today.

Check it out. Felix Salmon provides further analysis.

All about Zach

Zach_Johnson3.jpgPlease excuse the all-sports day here today, but newly-crowned Master’s champion Zach Johnson has seemingly been everywhere over the past couple of days and he is proving to be a refreshingly normal fellow amidst all the attention. Here is the Damon Hack/NY Times profile, but this Joe Posnanski/Kansas City Star profile captures how Johnson’s Midwestern roots define the man. And if you are really into Johnson, check out the Des Moines Register’s wall-to-wall coverage of Johnson’s Masters victory and the aftermath.
Meanwhile, Geoff Shackelford passes along the following interesting thoughts about the mindset of those who enjoy watching professional golfers struggle on tricked-up courses:

On the news that ratings were actually up for this hardly satisfying 2007 Masters, I’ve heard from a number of people that they argued with friends over the weekend about the setup and the joys of watching great players suffer.
There is a sizeable audience of the viewing public that enjoys watching the best players struggle. They like seeing them humiliated and brought down to a lower level of skill.
“They know how I feel now.”
This mentality has been around a long time and many of the games lesser-informed writers have celebrated the notion of pro golfers serving as modern day gladiators served up for the people to devour in humiliating spectacles.
So I’m wondering if championship golf is going to go the way of everything else in our society. Will it have to become “relatable” (as the marketing folks like to say) for big-time golf to succeed? In other words, will professional golfers eventually serve at the pleasure of the people, with major events played to publicly humiliate millionaire golfers on overcooked layouts in order to make the average man feel better about his lousy game?
Personally, I find it to be an incredibly selfish way to view golf. It’s a lot more fun to see the talent of these great players exposed, celebrated and savored. But maybe that’s old school?

By the way, a number of folks have asked me about my observation in an earlier post that Zach is a classic one-plane swinger along the lines that Houston-based teaching professional Jim Hardy (see also here) has written extensively about over the past several years. Here is a short video clip of Johnson working with his teaching pro, Mike Bender:

Finally, in case you didn’t catch it on Sunday, make sure you catch the video below of Rory Sabbatini’s incredible putt on Augusta National’s 8th hole. Sabbatini — who has been a jerk at times while on the Tour — has a fun-loving response to the crowd’s reaction:

Falling back on spring football

TxAM_helmet.gifIt’s been a tough past few days for Texas A&M faithful, what with losing their up-and-coming basketball coach to Kentucky and all. But at least the Ags have hired former Wichita State head coach Mark Turgeon as their new basketball coach and they have their true second favorite sport (behind football) — spring football practice — to fall back on. With the annual Maroon & White intrasquad game coming up this weekend, a friend passed along the following progression of how a typical Aggie football fan sizes up the upcoming football season as the off-season progresses toward the first game in the fall:

In December, immediately after the conclusion of the last game of the prior season: “We are full of more holes than a block of swiss cheese. In all likelihood, we win 5 games next season.”
In March: “Well, we signed a solid class with some kids that can contribute. Add in the guys that redshirted and we’ll surprise some folks next year. Pencil at least 7 in the win column for 2004.”
In May: “Spring practices went well, and after seeing our squad in action at the Maroon & White Game, we’ve come a long way since the end of last year. I think 9 wins is do-able.”
In August: “Everyone really hit the weightroom hard this summer, and the team stayed polished with the voluntary workouts on the practice fields. We are much bigger and faster across the board, and reports from two-a-days are very, very positive. A BCS bowl game is within this team’s grasp.”
After first game: “Wow, Wyoming will probably win 10 games this year. That was a close one.”

Arriving in New York

Jimmy%20Rollins.jpgThe Stros seem to be steadying a bit after a horrendous 1-5 start, but if you think the hometown team’s start has been bad, get a load of what happened on Monday to Phillies shortstop Jimmy Rollins.
Over this past off-season, Rollins provided New York and Philadelphia sports columnists a season full of material by declaring that the Phillies — who finished a mere 12 games behind the Mets last season in the NL East — were the team to beat this season in the division.
The two teams met on Monday for the Mets’ home owner, during which Rollins proceeded to hit into a double play with the bases loaded, booted a potential double-play grounder with the bases loaded, and wound up with 56,000 Met fans mockingly chanting his name. The Mets came from behind to pound the Phillies, 11-5 and are off to a 5-2 start. The Phils are 1-6. Philly sports columnist Bob Ford puts it all in perspective:

“If you haven’t really arrived until they notice you in New York, then Jimmy Rollins made his official major-league debut yesterday. ‘Jim-my Roll-ins, Jim-my Roll-ins,’ came the mocking singsong from the stands at Shea Stadium. The fans added a verb occasionally, just for effect, but it wasn’t all that necessary. Fifty thousand people chanting your name is testament enough.”

The Tiger chasm defined

sho_logo2.jpgmasters100.gifThe television numbers are in on the just-completed Masters Golf Tournament. CBS Sportsí coverage of the tournament on Easter Sunday earned an average overnight household rating/share of 9.1/21 (meaning that 9.1% of households on average were tuned in at any given moment and 21% of all televisions in use at the time were tuned into the Masters). This yearís final-round rating/share was up 1% from last yearís 9.0/19 when Phil Mickelson won his second Masters title and it was also up 25% from the last time the final round was played on Easter Sunday (7.3/18), when Mickelson won his first green jacket and first career major title in the 2004 event.
Meanwhile, the Shell Houston Open, which was played just a week ago, had a 1.7 share for its NBC telecast on Sunday compared with 2.2 share for the SHO’s May date last year on CBS. Even the BellSouth Classic — the tournament that that the SHO replaced this season on the PGA Tour calendar — was able to generate a 2.5 share on Sunday last year.
So much for the thought that the SHO’s new date a week before the Masters would increase viewership of the tournament. The Shell Houston Open has now officially entered the Tiger chasm.

Speedy treatment of heart attacks

heart.jpegThis Gina Kolada/NY Times article examines one of the most underappreciated aspects of treating heart attack victims — the importance of speedy treatment:

Studies reveal, for example, that people have only about an hour to get their arteries open during a heart attack if they are to avoid permanent heart damage. Yet, recent surveys find, fewer than 10 percent get to a hospital that fast, sometimes because they are reluctant to acknowledge what is happening. And most who reach the hospital quickly do not receive the optimal treatment ó many American hospitals are not fully equipped to provide it . . . [. . .]
What few patients realize . . . is that a serious heart attack is as much of an emergency as being shot.
ìWe deal with it as if it is a gunshot wound to the heart,î Dr. [Elliott] Antman [director of the coronary care unit at Brigham and Womenís Hospital] said.
Cardiologists call it the golden hour, that window of time when they have a chance to save most of the heart muscle when an artery is blocked.
But that urgency, cardiologists say, has been one of the most difficult messages to get across, in part because people often deny or fail to appreciate the symptoms of a heart attack. The popular image of a heart attack is all wrong. [. . .]
[M]ost people ó often hoping it is not a heart attack, wondering if their symptoms will fade, not wanting to be alarmist ó hesitate far too long before calling for help.
ìThe single biggest delay is from the onset of symptoms and calling 911,î said Dr. Bernard Gersh, a cardiologist at the Mayo Clinic. ìThe average time is 111 minutes, and it hasnít changed in 10 years.î

Read the entire article, which is a good overview of the early warning signs to look for in diagnosing a heart attack. Heck, even this cool customer is at elevated risk of having one.

Washington’s biggest business

money2.jpgThe Washington Post has just concluded this 27 installment series over the past couple of months on lobbying in Washington, D.C. Although not particularly analytical in terms of evaluating the costs and benefits of lobbying, the series is well worth reading as a thorough review of the enormous growth of the business over the past generation. The following is from the final installment:

As the reach of the federal government extended into more corners of American life, opportunities for lobbyists proliferated. . . Over these three decades the amount of money spent on Washington lobbying increased from tens of millions to billions a year. The number of free-lance lobbyists offering services to paying clients has grown from scores to thousands. [Lobbyist Gerald S.J.] Cassidy was one of the first to become a millionaire by lobbying; he now has plenty of company.
The term “lobbyist” does not do full justice to the complex status of today’s most successful practitioners, who can play the roles of influence peddlers, campaign contributors and fundraisers, political advisers, restaurateurs, benefactors of local cultural and charitable institutions, country gentlemen and more. They have helped make greater Washington one of the wealthiest regions in America.

The entire series is here.

Zach Johnson wins The Masters

johnson.jpgIt’s not every day that a fellow born in my hometown of Iowa City and raised in Eastern Iowa wins a professional golf tournament, much less the the Masters Golf Tournament. But Zach Johnson pulled it off in dramatic fashion on Sunday, holding up wonderfully under the enormous pressure of a draconian Augusta National Golf Course and the challenges of several other contenders, including Tiger Woods, who has now played nine consecutive rounds at The Masters without shooting in the 60’s.
Despite Johnson’s splendid play, the Guardian’s Lawrence Donegan summed up the view of most toward the changes that have been made at Augusta National:

The stunning climax came after three days peppered with double bogeys and broken spirits. Fortunately, the gentlemen in green blazers remembered their tournament has earned its place in folklore because it has long been a byword for excitement. But there are precious few thrills to be mined from the sight of the world’s best players fearfully plotting their way round the course as if walking to their own funeral party.
So when play began yesterday morning it quickly became clear everything possible had been done to bring the scoring down. Tees had been pushed forward, the greens had been heavily watered and the pin positions were about as friendly as a Labrador puppy. The overnight changes had the desired effect. For the first time all week cheers echoed along the alleyways and canyons of Alister Mackenzie’s classic links.

By the way, Johnson uses a pure one-plane swing, much like Ben Hogan‘s classic swing that defined quality ball-striking in the modern era of golf. Thus, as with last year’s U.S. Open, the player with the purest one-plane swing held up the best under the intense pressure of the final round of The Masters. As usual, there is a Houston connection to the understanding and teaching of that swing.