15 December 2008

Peggy Noonan on Hyman Roth

One of my favourite articles, that I have shared with many friends and colleagues, by Peggy Noonan. Posting here mainly so i'll always have it handy

Most of the important things you will ever say or hear in your life are composed of simple, good, sturdy words. "I love you." "It's over." "It's a boy." "We're going to win." "He's dead." These are the words of big events. Because they are big you speak with utter and unconscious concentration as you communicate them. You unconsciously edit out the extraneous, the unneeded. When soldiers take a bullet they don't say, "I have been shot," they say, "I'm hit." Good hard simple words with good hard clear meanings are good things to use when you speak. They are like pickets in a fence, slim and unimpressive on their own but sturdy and effective when strung together.

Stop here and go out and rent The Godfather, Part II. In the middle of that movie, you will find a speech that is one of the most famous of our time, and that a lot of people keep parts of in their heads. (If I were making a compendium of great speeches of the latter half of the twentieth century I would include it.)It is the speech spoken by the actor Lee Strasberg, who played the part of Hyman Roth, a character inspired by the old gangster Meyer Lansky. Here is Lee Strasberg's great speech, given as Hyman Roth stood, weak and furious, before cold-eyed Michael Corleone:

"There was this kid I grew up with. He was younger than me, sort of looked up to me, you know. We did our first work together, worked our way out of the street.Things were good, we made the most of it. In Prohibition we ran molasses into Canada, made a fortune -- your father too. As much as anyone I loved him and trusted him.Later on he had an idea: to build a city out of a desert stopover for GIs on the way to the coast. That kid's name was Moe Green. And the city he invented was Las Vegas. This was a great man, a man of vision and guts. And there isn't even a plaque or a signpost or a statue of him in that town. Someone put a bullet through his eye. No one knows who gave the order. When I heard it, I wasn't angry. I knew Moe, I knew he was headstrong, talking loud, saying stupid things. So when he turned up dead, I let it go. And I said to myself, this is the business we've chosen. I didn't ask who gave the order because it had nothing to do with business. You have two million in a bag in your room. I'm going in to take a nap. When I wake, if the money's on the table I'll know I have a partner. If it isn't I'll know I don't."

When Mario Puzo and Francis Ford Coppola wrote those words they thought they were writing dialogue, a theatrical speech of a major character. But... they were writing a great speech. It is simple, unadorned, direct, declarative. There isn't anything in it that is "eloquent," and yet taken as a whole it is deeply eloquent: It tells you something big in an unforgettable way. There is in it no obvious, signaled rhythm, and yet if you read it aloud you will find in it the beautiful, unconscious rhythm of concentrated human speech. There are no phrases that seem to attempt to conjure up pictures, and yet when you hear it you imagine a Moe Green and see the dusty nothingness of early Las Vegas.It is simplicity that gives the speech its power. Each word means something and each seems to inevitably follow the word that precedes it and summon the word that follows. And so a kind of propulsion is created: It moves forward, and with good speed.One of the great things about this speech is that as you hear it you realize that for the first time you're hearing what Hyman Roth really thinks. The plain and unadorned quality of his words signals this. And we pick the signal up because we have gained a sense in our lives that true things are usually said straight and plain and direct. - Peggy Noonan

14 December 2008

Saving Bedford Falls

I watched "It's a wonderful life" last week. As much as I like the show I believe the character Mr. Potter is at least a little bit misunderstood.

Granted Potter is a bad guy. He's evil and selfish and seeks to use illegal means to destroy his enemies. But many of the points he makes about business and financial management are valid. He is, for example, correct in his criticism of George Bailey for having no personal savings or investments despite having a decent job and a family counting on him.
"What are you but a warped, frustrated young man? A miserable little clerk crawling in here on your hands and knees and begging for help. No securities, no stocks, no bonds. Nothin' but a miserable little $500 equity in a life insurance policy. "
We are never told what George did with all of his salary but the implication of the movie is that he is a kind soul who could not say no to a friend in need. Admirable, at first but in reality George puts the needs of strangers and friends ahead of his family.
Potter is probably correct in his view that George is managing the building and loan improperly by lending to several people whose credit worthiness is questionable. The Bailey building and loan specialized in subprime loans, with a key difference from firms of the real estate boom was that this lender knew the customers quite well, such as the Martini family. George's main criteria for lending is that his customer be a friend and have a job, any job will do.
One thing Potter misses about Bailey is that George's effort are providing a meager stimulus to the Bedford Falls economy and strengthening the working class. By doing so George is making the town more attractive to industrialists such as Sam Wainright who moves a plant to the town at his urging.

Potter provides an overlooked benefit to the community via a means of escape for those caught in a run on the bank. Yes, and by agreeing to buy shares in the bank at half the previous market price. As the buyer in a panicked market, he is speculating that the mass is wrong and providing liquidity for their shares. The masses on the other hand are speculating that Potter is wrong and they will take advantage of his greed by dumping what they think is soon to be worthless stock in his lap. "Better half than nothing" one character says.
Absent Potter, there likely would have been no market for the shares at all. Once he established this floor price, George Bailey was able to convince others that there was value in the institution based on the actions of Potter. Even though acting on his own greed, Potter's offer combined with Bailey's appeal restored a modest level of confidence in the Building and Loan. In shattered markets it is often the speculator who steps in and begins to restore confidence by causing those panicking to slow down just a bit and rethink a rash exit from the market.
Note: it is possible Potter actually started the run on the bank. This would change him from a market speculator, a good guy, to a market manipulator, or bad guy.
Like the story "Wicked", a good tale could be told re-examining these characters, their history, and impact on Bedford Falls.

08 December 2008

Wicked

Saw the play at the Orpheum Theatre and read the book. Liked the book which makes a very old point that things are not always what they seem, people are not always what they seem, but does so through the retelling of a child's tale.

Our tickets came to us via a corporate contribution to a charity event and were $500 each. The people sitting to our left got theirs on Craig's list.

The staging and costuming was interesting. I often find the creativity in professional set design extremely interesting even when I don't like a play. This one was a visual pleasure.

Not so the story as told by the playwright. The story now is about two girls, one popular, the other not. The popular one is pretty, the other is ugly. They fight over a boy. They make up. The ugly one with the good heart gets the boy. (She also doesn't know her long lost dad, but really does, but doesn't know she does). The pretty one with a pretty good heart becomes famous. The end.

04 December 2008

Dallas

I was in dallas today. Stayed at some fancy hotel that was so memorable I have forgotten the name. I will remember it for the fact that the when guests walked the halls to their rooms the servants all stopped speaking to one another and stood to the side while the guest passed. Weird. Crescent Hotel, that's it. Rosewood Crescent. Won't be back, it gave me the creeps. However, the room service was amazing. On time and the food was great, especially the chicken soup.

Spoke at an industry event and attended a seminar.

01 December 2008

While Tigers prey, do they pray?

Regarding the season... Oh the pain of heightened expectations. Ten years ago we longed for a season as "disappointing" as the Tigers 9-3. The most dreadful of these is the loss to the gaggle of scallawags to the west. Equally frustrating was the fact that it was not until the last 30 seconds of the last game of the regular season that two members of the family took notice of the team and joined Tigers fandom. Each offered a weak sigh of disappointment on the final play, a field goal attempt in the closing seconds that could have tied the game.

On a completely unrelated matter that just came to mind, scripture suggests we rejoice in our tribulations and suffering. That's hard. Not when the problem is over with but when you are right in the middle of the mess and hurting. Not going through the motions but really rejoicing. Thank you God for everything about this mess I'm in because I know so many blessings will flow from it if I listen to you. Thank you for the pain, the discomfort, the uncertainty. To use a current day example thank you for falling markets and the loss of your dollars and the wonderful reminder of my need for you that flows from this. Thank you for all the things I don't understand. It once took five visits to the doctor on a potentially serious health matter to cause me to pray for healing. Wasn't I tough! On the fifth visit, I chose weakness.

30 November 2008

Thanksgiving - Thirteen thanks

My three children astound me. 2 1/2 grownups (as opposed to the 1 1/2 grownups who are their parents) with the half not neccessarily belonging to the youngest. When I held each of them for the very first time I whispered the name of their savior. It was the first word they heard. All the good things I hoped for when each was born are coming to pass. They have endured their trials in ways that makes me so very very pleased. All of those prayers whispered over each of their cradles have come to pass many many times over. A day does not passed that I am not reminded of some good lesson taught to me by my parents. I believe my children are surrounding themselves with friends who build them up and make them better. I trust they are returning the favor. My ancestors have imbedded in my family a moral DNA with hundreds of years of lessons and examples of right living. They influence us in ways we do not grasp. After 30 years it still confounds me that I have the honor of spending a single day in the presence of my wife. I do not deserve to share the same home with her. The wisdom God granted me has kept me out of trouble and preserved my family from disaster many times. When nature sleeps God covers her in a blanket of white. God has entrusted to me a few dollars and I pray I used them wisely most of the time. I own a Coleman smoker. Pigs dream of the honor of the gentle cremation of a portion of their remains in this chamber. To the craftsman at the Onyx cigar company I toast the Churchill cigar with the maduro wrapper. Equally worthly of praise is the Hoyo de Monterrey, Double Corona, maduro cigar. When I read it is often from the great works of C.S. Lewis and G.K. Chesterton. When I gather with my great extended family it is at Roan Mountain State Park, Cabin 5.

21 November 2008

7392

At a very fine luncheon engagement today I was reminded that when it comes to personal service, there simply is no better restaurant in my town than Zelo.

19 November 2008

7997

I did not expect a close this low. I should have.

19 October 2008

18 hours in Phoenix

Noon Saturday, arrive at hotel. Lunch with friends. Hiked a nearby park mid afternoon. Watched football until 5. Changed to tux and left for benefit dinner at 6. Silent auction, lots of bids, no wins. Dinner outdoors, under the stars. great food, good company. Six colleagues, three clients. Back to hotel 10;55. Left for MSP at 6am. A great escape but should have made it last longer.

16 October 2008

A day in the life

0300 - On the treadmill, Asia down, Europe mixed, US futures point to a flat open
0430 - shower, off to the airport
0500 - My shirt is the same color as that of the TSA police
0515 am - In the NWA World Club
0700 - On the plane. Sorry, no coffee, the first class waitress tells my with a smile
0900 - In a rental car. Sitting in the parking lot of the Shop N Save market in Des Plaines, IL. Preparing for a business meeting
1030 - I check voicemail and hear a good friend has died. I think about him for 15 minutes
1130 - At lunch with a client.... hang on.... My job is to bring them out of the valley and over to the other side.
1300 Chicago NWA World Club.
1500 My seat partner in first class works in HR at General Mills and tells me the economy is only going to get worse, much worse..... OOOOH i'm scared. She's also convinced that a bad economy is good for us, will teach us lessons. Good old American values, something about them that they just refuse to die.
1600 MSP never looked better. I think about my friend who is no longer here. Dow up 400.

05 October 2008

The world is getting back to normal


The cubs were swept by the Dodgers in the NLDS over the weekend, complete with a little help from the Cardinals. With all the calamity in the financial markets, a victory by the cubs might have signaled that we really had something to worry about. The world is safe for one more year. Thank you Dodgers and (former St. Louis Cardinals) manager Joe Torre. Had Torre not spent time in St. Louis, he might have taken the cubs seriously and changed his game plan. Had the cubs played their last ten games of the year like the Cardinals (7-3) they would have been marching on.
The undefeated Missouri Tigers are ranked number 2 this week. Things are getting better all the time.

04 October 2008

They're making fun of us....

My latest trip to the capitol of the United States leaves me less enamoured of democracy. Maybe we should keep it to ourselves for a few years until it is hammered back into a shape worth sharing.

This week world financial markets were perched on an abyss, steps away from grinding to a halt. United States congressman knew this but also could not resist picking up pennies in front of a steam roller and snagged pet projects for their backers in the home district. It's a game to them I think. The drug of personal glory and adulation has them hooked. They live in some alternative world where they are important people. Based on their actions, congressmen just don't like Americans much and must be laughing when the cameras are off.


It would have been nice if Congress had been able to debate a rescue program on its merits, or lack of them. Rather, they push America closer to the abyss, hold it by the shirt collar as it sways forward, and wrap us in pork and pet projects while they tell us how much they have helped us.


What congress has is a weird collective form of Munchausen Syndrome by Proxy. They inflict pain and suffering on the country by creating problems and then solving them, or making real problems worse. The purpose is to gain attention, recognition and personal satisfaction for themselves.

Those things that have the potential to do the most good have and equal potential to do the most harm. We need a congress that honors the citizens who do not need it.


I am ready for a good king. Now Wenceslas, that was a king