Restructuring Incentives in Finance

During the latest economic downturn, there has been a lot of discussion about what drives businesses to do what they do, even when it has disastrous effects on the economy on the whole, and how employees are best incentivized to maximize their (and their company's) potential.  A common complaint is that the stock market in general has a negative effect on the economy due to, among other things, its:
  • Stringent and constantly changing reporting requirements that potentially leans too far to the side of "increased transparency"
  • Heavy dependency on analyst forecasting for present valuation that drives management to limit their long-term growth potential in exchange for meeting sometimes arbitrary short-term financial goals
Well, our 43rd President, Al Gore, just had a reasonable opinion piece run (WSJ: Toward Sustainable Capitalism) that takes a high-level stab at the situation and may be of interest to lay people.  Also reminds me how interesting what I do is and what a difference it makes when the only expectations (generally) that must be met are those of the contributors.

America! III

So I really enjoy America! (and America! II) and lo and behold America! III has come to my backyard.



This message speaks to someone!

On a related note, Tennessee lawmakers passed a law each of the last two years allowing handgun permit holders to bring guns into bars and restaurants (Huffington Post: Tennessee Lawmakers Allow Guns In Bars), which have subsequently been vetoed by the Governor (CA: Gov. Bredesen vetoes bill to allow guns in Tennessee bars) and had the veto overridden by simple majority in the State House and Senate (Tennessean: Tennessee House overrides guns-in-bars veto).  Last year's bill was deemed unconstitutional, but unfortunately this year's bill was not so now permit holders, as long as they don't drink while carrying (Enforcement? Ha!), can take a handgun into any bar and restaurant in the state unless the establishment has individually banned handguns.

Apparently this topic must be quite important to some people considering how much airtime it has received and how it has taken precedence over other topics that seem slightly more relevant (The Economy? Healthcare? The United States of Space?  Tennessee Football?).  One of the bill's sponsor's from a Memphis suburb had this to say: "To be honest, it's just another example of the governor vetoing a bill and never getting involved...and his lack of respect for the handgun-carry permit holders in Tennessee..."  Maybe the governor realizes this type of legislation maybe shouldn't be such a high priority right now?  Or maybe he actually disagrees with the law?  Crazy!

Well at least the Chicago City Council is fighting the good fight voting 45-0 to ban gun shops in Chicago and prohibit gun owners from stepping outside their homes with a handgun (WSJ: Chicago Approves Tough New Handgun Restrictions).

Advances in Sunscreen

Having had skin cancer in my family, I try to pay attention to new information on how to protect yourself from the sun.  There are always new products coming out including detergents and clothing that enhance sun protection.  A recent article (NYTimes: UVA Reform: It's Not PDQ) discusses the FDA delays in adding a rating system for UVA protection to the existing UVB projection (e.g. SPF 30).

It is going to be very hot and sunny in Dar es Salaam next year (See picture below from when we visited Zanzibar), particularly when compared to Kigali, so we are going to have to be extra diligent in putting on sunscreen.


I Went, I Saw, I Conquered

Two weeks ago, I was in the Democratic Republic of Congo waking up at the edge of the crater of a 11,385 foot active volcano.  After a five hour hike literally straight up the Nyiragongo Volcano (switchback trails haven't found their way to Africa yet) through first jungles then volcanic pumice covering about 5000 feet of vertical climb, I reached the top of the volcano and its active lava lake.  Tents were set up right on the edge of the crater and I settled in for the night to watch the lave lake spew sulfurous gas, gurgle explosive lava, and emit enough heat to warm me from less than half a mile away.  I don't know of any other place in the world where you can do this and the picture below pretty much sums up the experience.


The town of Goma in the DRC is directly over the border from Giseyni, the largest city in northwestern Rwanda, and on the northern shores of Lake Kivu.  Congo and Goma itself receive a lot of attention from the international press for a variety of reasons including the countries rich mineral deposits and the seemingly unchecked rebels that exploit these minerals while raping and pillaging everyone and everything that stands in their way.  Eastern Congo also has many refugees from the Rwandan genocide more than 15 years ago that occasionally add fuel to the rebels fire.  For this reason the park that contains Nyiragongo has been closed for nearly two years and only reopened in March 2010 for tourists to visit (See picture below for bullet holes in national park sign).


Another concerning factor is that Nyiragongo is in fact an active volcano and has had two major eruptions in the last 30 years or so.  In January 2002, the volcano erupted, essentially repaved the entire city of Goma and furthering the despair of its 400,000 inhabitants (NYTimes: Volcano's Lava Engulfs a Congo Town & NYTimes: Warily, Residents Return to Lava-Scarred Congo City).  While the picture below may look staged, it in fact was not as the child in the picture just happened to be rummaging around in the lava flow that wiped out the Catholic Church in Goma.


So as you can tell, Congo is a pretty exciting place and climbing the volcano truly was the experience of a lifetime.  I will run through some picture highlights below but also uploaded a bunch of pictures from the trip.

Outskirts of Goma town with Nyiragongo in the background.  Note people on the right carrying bags of lava rocks to be used for building houses and fences.  It is pretty much the only building material available locally.  The right side of the picture is sharp lava rocks from the lava flow that have never been smoothed over (like on the left side of the picture.


About halfway up the mountain...


This type of volcanic surface is pretty much what you find the entire way.  My hiking boots were purchased in Nashville when I was in 8th grade.


A break with my porter...


About halfway up...


See the steam vents in the background at one of the rest stops...also note our guards...


Peak covered in clouds...


Getting higher...


Landscape is changing...


That is my porter on the last stretch...


Moonscape...


Summit...


Lava lake...



Sunset blocked by sulphuric gas...


My tent with my porter on the edge of the crater...


Lava lake at night...



Full moon and clear night...


Next morning...



On the way back down...


Other links on the volcano that may be of interest:
Other links on Congo that may be of interest:

America! II

This amazing commercial just aired prior to the U.S. vs. England World Cup game.




So I am back in the U.S.!  After a night in New York (Shake Shack was delicious!) and a night in Boston, I am settled in Martha's Vineyard for a week with some friends from college.  America is great!


Roundup

My father loves Roundup.  A gift of Roundup makes him ever so happy.  While my father's love of Roundup is a result of his desire to keep our gardens free of weeds, this article (WSJ: Superweed Outbreak Triggers Arms Race) focuses on large farm usage of herbicides and discuses yet another challenge in operating a successful single-family farm.  Modern farming is very expensive and quite risky!


The first season of daffodils in the new raised beds outside our kitchen window.


Same field behind first picture with the cotton in bloom last fall.

Amazing how plants and animals adapt to deal with whatever humans throw at them.  Science!