Monthly Archives: November 2008

Talking football in Texas

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Red Raider Football is an integral part of Texas culture. So, when a big game is around the corner, it seems as if everyone around here is talking about it. And some of the talk can get pretty entertaining.

The big game this Saturday pits the undefeated and 2nd-ranked Texas Tech Red Raiders (10-1) taking on the 5th-ranked Oklahoma Sooners (9-1) in Norman, Oklahoma.

The game has generated added interest in these parts because the 3rd-ranked Texas Longhorns (10-1), who lost to Tech a couple of weeks ago on a last second TD, could bolt back into the BCS Championship Game picture if the Sooners beat Tech.

And frankly, many Texans are pulling for Tech to beat the Sooners and remain in contention for the BCS Championship Game because Tech has never reached such heights before.

But that support doesn’t immunize the Red Raiders from some good-natured razzing, such as the following OU message board comment about the above Tech promotional picture for the game:

"Why is Yosemite Sam attacking Guymon?"

Meanwhile, on the opposite end of the college football spectrum, perennial cellar-dwelling Baylor’s decisive win last Saturday over the Texas A&M Aggies has also generated a fair amount of conversation in Texas football circles this week.

As has been noted many times on this blog, the devotion of many Texas A&M University alumni to the A&M football program is an endearing part of Texas culture that has generated some rather awkward moments over the years.

The A&M fan base overwhelmingly considers losing to Baylor in football as another such awkward moment. To make matters worse, the A&M football program has fallen on such hard times over the past several years that, relative to the size of the football budget, the A&M program is currently among the poorest-performing in major college football.

So, with that backdrop, check out the following post that a Baylor fan posted on an Aggie message board earlier this week (the post was quickly taken down by the owners of the Aggie board; thank goodness for Google Cache). On the heels of Baylor’s big win over the Aggies, the Baylor fan’s post passes along some key tips to the Aggies from the "hit" book, How to Handle Being The Worst Team in the Big XII South:

I wanted to share some thoughts from the hit book "How to Handle Being The Worst Team in the Big XII South". This book, originally authored by fans of Baylor University, with foreword by Oklahoma State, has been a work in progress for 25 something years now.

Now that we have handed that prestigious torch off to your school, and it looks like it will stay that way for quite some time, you and your Aggie friends may want to really get into this material. Here are some highlights:

Chapter 1 – Bring up past records when discussing your program with friends. The best way to do this is to start from the present and go back through the past until you can find where you have more wins than "x" team. Inconsistencies in time frame does not matter – it can be 5 years for one team and 45 for another.

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Progress on the bailout front?

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empty So, less than two months after this previous post noted that chapter 11 reorganizations with possible government financing of reorganization plans were the best tools to shake out the current financial crisis, even the NY Times (here and here) is promoting that approach for restructuring the Big Three automobile companies.

I guess that’s a sign of real progress.

Funny how the way we typically handle such things in the civil justice system usually is the most efficient solution to the problems.

It sure beats having this bunch fumble around looking for an alternative solution.

By the way, I’ve mentioned this before, but it merits passing along again. One of the best ways to keep up on developments in regard to the current financial crisis is to check in frequently on the following sites: Clusterstock, Dealbreaker, and Felix Salmon.

The blogosphere rules!

Thinking About Markets

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Now that folks have had at least a bit of time to reflect on the financial crisis on Wall Street, some good historical perspectives are starting to pop up, such as this Niall Ferguson Vanity Fair piece. Toward the end, Ferguson makes an excellent point about market economies that is not widely understood:

The modern financial system is the product of centuries of economic evolution. Banks transformed money from metal coins into accounts, allowing ever larger aggregations of borrowing and lending. From the Renaissance on, government bonds introduced the securitization of streams of interest payments.

From the 17th century on, equity in corporations could be bought and sold in public stock markets. From the 18th century on, central banks slowly learned how to moderate or exacerbate the business cycle. From the 19th century on, insurance was supplemented by futures, the first derivatives. And from the 20th century on, households were encouraged by government to skew their portfolios in favor of real estate.

Economies that combined all these institutional innovations performed better over the long run than those that did not, because financial intermediation generally permits a more efficient allocation of resources than, say, feudalism or central planning. For this reason, it is not wholly surprising that the Western financial model tended to spread around the world, first in the guise of imperialism, then in the guise of globalization.

Yet money’s ascent has not been, and can never be, a smooth one. On the contrary, financial history is a roller-coaster ride of ups and downs, bubbles and busts, manias and panics, shocks and crashes. The excesses of the Age of Leverage—the deluge of paper money, the asset-price inflation, the explosion of consumer and bank debt, and the hypertrophic growth of derivatives—were bound sooner or later to produce a really big crisis.

In short, markets are imperfect and sometimes quite messy. But they have stood the test of time in proving more efficient than the alternatives. Don’t give up on them just yet.

2008 Weekly local football review

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Slaton's TD run (AP Photo/Michael Conroy; previous weekly reviews are here)

Colts 33 Texans 27

Texans (3-7) backup QB Sage Rosenfels (13-18/192 yds/0 TD/1 INT) had another "Sage moment" (i.e., "what the hell was that?") when he threw his only interception of the game as the Texans were attempting to drive for a game-winning TD in the last minute. However, this loss was squarely on the shoulders of the Texans’ defense, which gave up almost 500 yards total offense and basically had no hope of stopping the Colts (6-4) after their receivers stopped dropping passes (they dropped at least a half-dozen in the first half, after which the Texans led 13-9). All Texans defensive coaches should have their résumés updated.

The Texans travel to Cleveland next Sunday to play the Browns (3-6) before returning home to play the Jaguars (4-6) on Monday Night Football the Monday after Thanksgiving.

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PGA Tour by the numbers

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PGA Tour.com’s Kin Lo posts this first-rate statistical breakdown for the 2008 PGA Tour season (H/T Geoff Shackelford). Although the entire statistical analysis is interesting (scroll down the intro page to the hyperlinks at the bottom), the following chart provides a fascinating snapshot of the progression of the Tour over the past 28 years. Check out the difference between 1980 and 2008 in the average annual earnings of the top 30 players!:

New Picture

The Obama choices

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supreme_courtJan Greenburg sizes up the most likely chances that Obama will have to nominate justices to the U.S. Supreme Court.

The bottom line — despite the advanced age of several of the justices, perhaps not as many as one would think.

GM and the Ghosts of Enron

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Ken Lay was prosecuted to death for promoting Enron even though he had a reasonable basis for believing that what he was saying about his company was true.

Fast forward a couple of years. Yesterday, the W$J reported (NYTimes here) that General Motors may not be able to avoid bankruptcy because of political problems involved in obtaining a bailout loan package from the federal government. GM is “rapidly burning through cash reserves as car sales plummet and their access to credit tightens. GM has warned it may run out of money within months without outside help.”

From what I can tell, no one is calling for the scalp of GM CEO Rick Wagoner because of confident public statements that he made just a few months ago about his company.

So, the corporate crime lottery continues. A truly civilized society would find a better way.

Can you spare $350 million?

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Jerry Jones And you think the Texans’ season is going badly?

Get a load of what Dallas Cowboys owner Jerry Jones is facing, and I’m not talking about whether to fire head coach Wade Phillips (H/T Brad Humphreys):

Industry watches as Cowboys look for loan

The Dallas Cowboys are seeking to borrow $350 million by Dec. 1, according to numerous finance sources, in one of the worst credit environments in the nation’s history.

The club’s proposed deal would refinance $126 million the team borrowed last year through the now-imploded auction-rate securities market, as well as add new debt to cover cost overruns at the team’s $1.2 billion stadium that is set to open next year, the sources said. [.  .  .]

For the Cowboys, getting out from underneath the auction-rate debt is a pressing concern. They are one of four NFL teams to have borrowed from the auction-rate securities (ARS) market, a market that allowed companies to borrow cheaply and continue to reset the interest rate with auctions of the debt weekly and monthly.

In February, the ARS market seized up, and debt auctions failed, which automatically triggered significant interest rate hikes. [.  .  .]

The Cowboys estimated the stadium would cost $650 million when they announced the project in 2004. With $350 million of public funding and $76 million from the NFL, it looked like a choice deal for the team.

The club arranged to borrow at least $450 million through Banc of America Securities for its portion, with the first $126 million through the ARS market. But Jones agreed to cover cost overruns as part of the team’s share, and like many stadiums in this period, the price has spiraled.

H’mm. I wonder whether the Cowboys will apply for a portion of the TARP fund, too?

Watch out for the Bears

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As noted here earlier, years of mediocre football at Texas A&M has mellowed the formerly hard-knuckled 12th Man a bit. This week, A&M football team is a decided underdog to the fearsome the Baylor Bears (H/T Jay Christensen):

Meanwhile, watch out for the Houston Rockets’ mascot, Clutch the Bear:

A stubbornly bad system

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justice for sale So, now that the Democrats have swept in a slate of judges to replace many longstanding GOP state district judges in Houston, the Chronicle runs an article about how some Republicans are calling for an alternative system for appointing judges.

Not surprisingly, the Democrats are not as enthusiastic, at least right now.

Of course, while the Republican judges have been controlling the courthouse over most of the past two decades, they weren’t interested in rocking the boat to change the system, either.

However, the problem remains that, partisanship aside, doing nothing about the current Texas system of electing judges simply perpetuates a very bad system.

Thankfully, as Don Cruse reports, Chief Justice Wallace Jefferson of the Texas Supreme Court is showing leadership on the issue, just as the late John Hill and Tom Phillips did before him during their stints as Chief Justice.

But the potential for corruption in the Texas judicial election system perhaps best summed up by the following joke:

Taking his seat in his chambers, the judge faced the opposing lawyers.

"So," said the judge. "Each of you has presented me with a bribe."

Both lawyers squirmed uncomfortably.

"You, attorney Mohanty, gave me $50,000," observed the judge. "And you, attorney Venkat, gave
me $60,000."

The judge reached into his pocket, pulled out $10,000, and handed it to attorney Venkat.

"Now that I’ve returned $10,000 to attorney Venkat," exclaimed the judge proudly, "I’m going to
decide this case solely on its merits!"