Paul Samuelson died two days ago. I will never forget that the first book I picked up on economics was the text book written by him. I still have - almost two decades later. And I will never forget also - when I pickedup the Foundations - I almost fell over - I thought i had picked up a Math text book!
Thank you Prof Samuelson. RIP
Monday, December 14, 2009
Google and Apple wars - way too cool for the consumer;
Consumers can expect some good things happening to them - with Google and Apple getting more into a competitive mode. Why do I say that? Well, we can now expect newer cooler products at hopefully lower prices! Google just announced that it is going to make a cell phone available next year. Apple now needs to up the ante - come up with a new version of the Iphone (I would like the following features - a small torchlight type feature so that i can use it in the darkness, a way to zoom in and zoom out on the camera, a slimmer phone and a better batteries) or a with some real new cool product that allows live video streaming from around the world easily.
We will see - but all in the beauty of competition is being brought out here. And we can expect Microsoft to follow suit also. I'm sure they are not going to miss out on the mobility hardware software combination space for too long.
We will see - but all in the beauty of competition is being brought out here. And we can expect Microsoft to follow suit also. I'm sure they are not going to miss out on the mobility hardware software combination space for too long.
Saturday, December 12, 2009
What Obama is not doing
President Obama is obviously a man of formidable intellect and boundless energy. Very few leaders have started off by dealing with as many different issues as he has at the same time and by choice at that. And even more admirable is the manner in which he has approached them - using a combination of analytics, judgement, lessons from history and seeking advice from different groups in forging a way ahead. And his PR machine which, though having starting problems has since seemed to have gotten its act together. BUT he has failed to do something very important that is critical in moving this nation forward.
Witness his response to the economic crisis or the manner in which he has led the reform on healthcare or the strategy on the two wars. All of them marked by a careful consideration of the options and the implications of each. None of the analysis lacked data or a theory of the case. And in particular with the economy, he has taken the right strategy - use Keynes to drive the economy out of trouble, fix some underlying problems and be friendly to the Chinese.
But he's missing out on a crucial element that is expected of him - that of being the Optimist in Chief!! He is a bit too serious and a bit too stern in his manner. As the President in today's times he has a duty to not only use his smarts - but also to be cheerful and radiate optimism - and not to wag a finger every time he gives a speech!! and that's where I fear he is failing!
I think he has forgotten that the American economy is built on expectations - and the hope that things wil be better in the future. When Obama speaks of the future - he speaks with a tone that suggests some admonishment - but then there is no followup with a cheery optimism - that is so essential to raising people's confidence. If only he did that - then consumers would start spending and banks would give start goving credit and the cycle would start slowly but surely. Mr President we like you - but we need more optimism from you. the people need it and deserve it.
Witness his response to the economic crisis or the manner in which he has led the reform on healthcare or the strategy on the two wars. All of them marked by a careful consideration of the options and the implications of each. None of the analysis lacked data or a theory of the case. And in particular with the economy, he has taken the right strategy - use Keynes to drive the economy out of trouble, fix some underlying problems and be friendly to the Chinese.
But he's missing out on a crucial element that is expected of him - that of being the Optimist in Chief!! He is a bit too serious and a bit too stern in his manner. As the President in today's times he has a duty to not only use his smarts - but also to be cheerful and radiate optimism - and not to wag a finger every time he gives a speech!! and that's where I fear he is failing!
I think he has forgotten that the American economy is built on expectations - and the hope that things wil be better in the future. When Obama speaks of the future - he speaks with a tone that suggests some admonishment - but then there is no followup with a cheery optimism - that is so essential to raising people's confidence. If only he did that - then consumers would start spending and banks would give start goving credit and the cycle would start slowly but surely. Mr President we like you - but we need more optimism from you. the people need it and deserve it.
Monday, December 7, 2009
Greed - the problem with Corporate America
Did you read the article in today's WSJ about some workers who were being exploited by the government - and - if they were going to continue to be exploited and left hungry and penniless on the streets, they would resign? In New York City? Can you believe it - reading the article I couldnt help wondering whether these were poor laborers in servitude. Oh No! These were fat AIG executives who were crying about a year's pay!!! Each of these people make in a year what most people in America dont make make over a lifetime of working!! Even the CEO threatened to resign over pay!
This the problem with Corporate America and our lifestyle today - we are greedy people - who will cry and beg for help when we are down, but the minute we are up, we forget what brought us down and go back to our old ways of thinking and working. It is AIG and other financial insititutions who have made the hard earned savings of ordinary Americans disappear in thin smoke through their excessive risk taking, which in turn was driven by misaligned and often excessive incentives. Greed.
What else can explain this behaviour? Cant executives at AIG, deal with a pay cut for a couple of years while they get their house in order? I am not talking of an ordinary manager making less than $100k a year - I am talking about executives who make $500k a year and more. I dont think anybody on this planet needs more than 500k a year to have a reasonable, and healthy lifestyle! The only reason this happens is because of Greed! Nothing else can explain it.
And herein lies one of the biggest dangers of our society - we have over time, focused so much on individual happiness that we have forgotten about societal good. We are no longer interested in making the types of sacrifices our forefathers made to make this nation strong. We run the risk of being weak if all we ever focus on is individual happiness. I am a firm believer in capitalism, in markets and free entreprise. But the modern day guardians of capitalism (CNBC and the likes) have taken this to such an extreme that they do not realise the dangers of capitalism - greed driving excesses that can eat away our society.
And this is the difference now between Asia and America - no CEO in China or Singapore would dare say that they wouldnt do a job when their national pride was at stake - (which in this case is Americas), just because they were being only 500k a year!!! No - such CEOs and executives would be quickly shown the door.
And it is more than America's pride that is at stake - we do have to prove that we can recover and that our country is the center of innovation in this world, where dreams are realized and where people enjoy personal freedom. At the same time India and China are catching up on the innovation race. Their capital markets are developing agressively. Already there is an ever so slight shift in the balance of power from the west to the east. If we are not humble and driven by the desire to re-build the nation, we will become like the old powers of the middle ages - like Portugal, Spain, Italy and Britain, who are no longer as relevant as they used to be.
This the problem with Corporate America and our lifestyle today - we are greedy people - who will cry and beg for help when we are down, but the minute we are up, we forget what brought us down and go back to our old ways of thinking and working. It is AIG and other financial insititutions who have made the hard earned savings of ordinary Americans disappear in thin smoke through their excessive risk taking, which in turn was driven by misaligned and often excessive incentives. Greed.
What else can explain this behaviour? Cant executives at AIG, deal with a pay cut for a couple of years while they get their house in order? I am not talking of an ordinary manager making less than $100k a year - I am talking about executives who make $500k a year and more. I dont think anybody on this planet needs more than 500k a year to have a reasonable, and healthy lifestyle! The only reason this happens is because of Greed! Nothing else can explain it.
And herein lies one of the biggest dangers of our society - we have over time, focused so much on individual happiness that we have forgotten about societal good. We are no longer interested in making the types of sacrifices our forefathers made to make this nation strong. We run the risk of being weak if all we ever focus on is individual happiness. I am a firm believer in capitalism, in markets and free entreprise. But the modern day guardians of capitalism (CNBC and the likes) have taken this to such an extreme that they do not realise the dangers of capitalism - greed driving excesses that can eat away our society.
And this is the difference now between Asia and America - no CEO in China or Singapore would dare say that they wouldnt do a job when their national pride was at stake - (which in this case is Americas), just because they were being only 500k a year!!! No - such CEOs and executives would be quickly shown the door.
And it is more than America's pride that is at stake - we do have to prove that we can recover and that our country is the center of innovation in this world, where dreams are realized and where people enjoy personal freedom. At the same time India and China are catching up on the innovation race. Their capital markets are developing agressively. Already there is an ever so slight shift in the balance of power from the west to the east. If we are not humble and driven by the desire to re-build the nation, we will become like the old powers of the middle ages - like Portugal, Spain, Italy and Britain, who are no longer as relevant as they used to be.
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