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November 30, 2006
Quote of the Day for Friday, December 1, 2006
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Quote of the Day for Thursday, November 30, 2006
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November 29, 2006
Quote of the Day for Wednesday, November 29, 2006
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November 28, 2006
Suggestions for Speaker-Elect Pelosi and the Incoming Congress
In a terrific open letter to Speaker-elect Nancy Pelosi posted on his blog, my pal John Daly has some suggestions on creating the most ethical Congress ever. One suggestion, sure to warm the heart of any senior executive or director of a public company, is to make the operations of Congress Sarbanes-Oxley compliant. With that suggestion, John's just getting warmed up; read his entire thought-provoking post.
Posted by John at 10:55 PM | Comments (0) | TrackBackQuote of the Day for Tuesday, November 28, 2006
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November 27, 2006
Quote of the Day for Monday, November 27, 2006
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November 26, 2006
Quote of the Day for Sunday, November 26, 2006
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November 25, 2006
Quote of the Day for Saturday, November 25, 2006
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November 24, 2006
Quote of the Day for Friday, November 24, 2006
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November 23, 2006
Quote of the Day for Thursday, November 23, 2006
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November 22, 2006
Quote of the Day for Wednesday, November 22, 2006
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November 21, 2006
Quote of the Day for Tuesday, November 21, 2006
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November 20, 2006
Physician, Heal Thyself
Posted by John at 4:05 AM | Comments (0) | TrackBackThe Securities and Exchange Commission has its own problems over bungled books - with millions in cash slipping through the cracks, and a computer system so vulnerable that hackers can run wild inside Wall Street's watchdog agency.
A critical audit by the Government Accountability Office (GAO) said the SEC has failed to maintain controls in three key areas - security of its computer system, handling of the cash paid in disgorgement and penalties, and keeping track of equipment and assets.
The audit praised the SEC's new chief Chris Cox for fixing most of the SEC's internal control problems from a disastrous audit the prior year, but said the agency still has "significant deficiencies."
Even with Cox's crackdown, the GAO said the SEC still isn't handling its cash correctly. As an example, it said $21 million paid as a disgorgement from an unidentified firm wasn't even recorded on the books, making it difficult to know if penalties are paid or ever collected. . . .
Quote of the Day for Monday, November 20, 2006
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November 19, 2006
China's Shrinking Yellow River
The New York Times offers a comprehensive look at China's water problem generally and the shrinking Yellow River specifically:
Posted by John at 10:14 AM | Comments (0) | TrackBackWater shortages are at crisis level in many regions. About 400 of China’s 600 cities lack an adequate supply for future growth , and many are now making do by draining underground aquifers to dangerously low levels. Some coastal cities are building desalination plants to turn seawater into drinking water. Over all, China has one of the lowest per capita water supplies in the world and one of the most uneven distributions of water. Northern China is home to 43 percent of the population but only 14 percent of the country’s water supply.
Jack Welch on GE and China
Jack Welch is so quotable, it's hard to limit him to just one quote on his birthday. Here's one of his remarks on GE's China strategy:
If GE's strategy of investment in China is wrong, it represents a loss of a billion dollars, perhaps a couple of billion dollars. If it is right, it is the future of this company for the next century.
Most businesses in this country don't deal in billions; they deal in numbers much smaller than those GE counts up every day. Welch's point, though, applies to many smaller and mid-sized companies. Looking over the long term, investments which seem large at the time can result in payoffs which significantly dwarf the outlay.
Incidentally, I'm confident that Welch would make the same statement applied to India.
Posted by John at 8:40 AM | Comments (0) | TrackBackShepherding Pictures
Thanks to our friend Chip Macdonald for helping us get our picture right for yesterday's quote from Alan Shepherd. We inadvertently used a picture of a Soviet cosmonaut! Something tells me, given the humor in Shepherd's quote, he would have gotten a big laugh out of that mistake.
Posted by John at 8:16 AM | Comments (0) | TrackBackQuote of the Day for Sunday, November 19, 2006
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November 18, 2006
Quote of the Day for Saturday, November 18, 2006
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November 17, 2006
Quote of the Day for Friday, November 17, 2006
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November 16, 2006
Reich is Right on Trade with Vietnam
I not a big fan of Robert Reich, whose grip on the facts sometimes leaves a lot to be desired. His latest commentary for American Public Media's radio show Marketplace, however, shines brilliantly:
Four decades ago, American policymakers clung to what was then known as the domino theory of communism. Unless the United States propped up South Vietnam, it was assumed, all of Indochina would become communist. Tens of thousands of Americans died in that war before America got out and let the dominoes fall where they may.
But then a strange thing happened. Soviet Communism disappeared. China became the fastest-growing, big capitalist nation in the world. And Vietnam became one of the hottest markets in Southeast Asia. The real domino turned out not to be communism, but capitalism.
Yet the capitalist domino seems almost as threatening to America today as the communist one was 40 years ago. This week, Republican leaders couldn't get the votes they needed to give Vietnam permanent normal trade relations with the United States.
Talk about shooting ourselves in the feet. Early next year, as part of its entry into the World Trade Organization, Vietnam will reduce tariffs on foreign goods and open its telecom and financial services sectors to foreign investment. But as things now stand, America won't benefit from these measures because Congress won't normalize trade relations with Vietnam.
Some right-wingers still regard Vietnam as a menace. One Republican congressman said America shouldn't trade with its mortal enemies. Republicans from textile-producing states don't want cheap fabrics from Vietnam. A majority of House Democrats think Vietnam's labor standards are inadequate.
Congress's distrust extends beyond Vietnam. Trade bills now pending with several poor countries in Africa, Asia and Latin America are also in jeopardy. And many of the newly elected members of Congress campaigned agaisnt free trade. Whether it's a renewed fear of foreigners, or fear of job losses to them, America seems to be turning inward.
This nation may be on the brink of a new Cold War, with the enemy this time not global communism but global capitalism?
Note that all the bill in question does is grant "permanent normal trade relations" to Vietnam. According to this source, only Cuba and North Korea are denied this status by the U.S. at present.
I know the Republicans are in a wrist-slitting mood after last week's election, but let's get a grip here and endorse Vietnam's moves toward greater economic freedom. Further, let's actually swallow the same medicine we are always prescribing for the rest of the world: free markets.
Posted by John at 4:39 AM | Comments (0) | TrackBackQuote of the Day for Thursday, November 16, 2006
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November 15, 2006
Atlanta's Demographic Transformation
An interesting factoid on Atlanta's long-term demographic transformation into an immigrant recipient, from the Atlanta Journal-Constitution:
Posted by John at 10:19 PM | Comments (0) | TrackBack. . . in 1940, just 1.2 percent of the Atlanta area's population was foreign-born, ranking it dead last among the American metros with at least 250,000 people. Now, for the first time, the region has a higher percentage of immigrants (12.7) than the national average (12.3).
Immigrants Beget Startups . . . and Quite a Few Very Large Companies
The importance of immigrants to startup activity in the United States is highlighted in a study (pdf) funded by the National Venture Capital Association. Some major findings include:
Over the past fifteen years, one in four of all U.S. public companies which were venture-backed had immigrant founders.
The combined market capitalization of these companies is $500 billion. (Only 16 countries in the world have a gross domestic product greater than $500 billion.)
Almost half of the 340 venture-backed startup companies surveyed were founded by one or more immigrants.
Nearly half of the immigrant entrepreneurs participating in the survey arrived in the U.S. as students.
More than half of that same group founded their companies within a dozen years of arriving in the U.S., and they hold an average of 14.5 patents.
The NVCA funded this study to highlight the importance of expanding the number of H-1B visas granted to skilled workers, a position we've argued vigorously in favor of ourselves.
Posted by John at 9:49 PM | Comments (0) | TrackBackQuote of the Day for Wednesday, November 15, 2006
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November 14, 2006
Quote of the Day for Tuesday, November 14, 2006
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November 13, 2006
Hispanics Voted Democratic in Spite of Holding Republican Positions
Forbes publisher Rich Karlgaard reports on a post-election chat which included pollster John Zogby, New Mexico Gov. Bill Richardson, and Forbes editor-in-chief Steve Forbes:
Zogby cited fascinating stats about Hispanic-American voters. The pollster said Hispanics generally side with Republicans on values and even economics, but they view Republicans as "harsh" and thus vote mainly for Democrats.
Enough to confound and frustrate both parties.
Posted by John at 4:58 AM | Comments (0) | TrackBackEntrepreneurs Surpass Pop Stars as Idols for China's College Students
So did scientists and scholars, reports China Daily:
Posted by John at 4:24 AM | Comments (0) | TrackBackSuccessful entrepreneurs have surpassed pop stars as college students' idols, a recent Fudan University survey has found.
In the survey, which sampled 150 students from different grades and departments in September and October, 96 chose successful entrepreneurs as their idols, 91 added scientists and scholars to the list, while only some 75 opted for stars of stage and screen.
The results toppled the old perception that young college students are most impressed by the stars of shows such as Supergirl Competition. . . .
You Can't Have Growth Without Change
Virginia Postrel points out as much in a Forbes column on economic sluggishness in Europe:
Posted by John at 4:07 AM | Comments (0) | TrackBackContinued growth and prosperity require more than incentives to work, save and invest in the same old ways. To grow beyond the frontier of imitation, an economy must foster a constant flow of economic experiments. But these are the very sorts of disruptive enterprises that threaten the neat arrangements of the corporatist status quo. You can't have growth without dynamism, which is another word for change.
Quote of the Day for Monday, November 13, 2006
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November 12, 2006
The Dangers in the "Lou Dobbs Democrats"
Here's why Andres Oppenheimer is worried; Slate's Jacob Weisberg calls them the "Lou Dobbs Democrats":
Posted by John at 11:50 AM | Comments (0) | TrackBackMany of the Democrats who recaptured seats held by Republicans have been described as moderates or social conservatives, who will be out of synch with Speaker-to-be Nancy Pelosi. The better term, with props to Fareed Zakaria, is probably illiberal Democrats. Most of those who reclaimed Republican seats ran hard against free trade, globalization, and any sort of moderate immigration policy. That these Democrats won makes it likely that others will take up their reactionary call. Some of the newcomers may even be foolish enough to try to govern on the basis of their misguided theory.
A Democrat-Controlled Congress and Latin America
Andres Oppenheimer sounds a note of caution about the implications of the Democrats' takeover of Congress and relations with our southern neighbors:
. . . it should not turn America into a protectionist, to-hell-with-our-neighbors country. That would not only create greater turmoil in Latin America and result in more illegal immigration, but would seriously hurt U.S. exports, and cost American jobs.
It's time for globalized Democrats to keep their protectionist colleagues from taking over the party, and the country.
Well said.
Posted by John at 9:10 AM | Comments (0) | TrackBackDr. Google Will See You Now
According to this study (pdf), Google can help doctors with difficult diagnoses a preponderance of the time:
Doctors have been estimated to carry two million facts in their heads to help them diagnose illness, but with medical knowledge expanding rapidly, even this may not be enough. Google is the most popular search engine on the world wide web, giving users quick access to more than three billion medical articles.
So, how good is Google in helping doctors diagnose difficult cases?
Doctors at the Princess Alexandra Hospital in Brisbane identified 26 difficult diagnostic cases published in the New England Journal of Medicine in 2005. They included conditions such as Cushing’s syndrome and Creutzfeldt-Jakob disease.
They selected three to five search terms from each case and did a Google search while blind to the correct diagnoses.
They then selected and recorded the three diagnoses that were ranked most prominently and seemed to fit the symptoms and signs, and compared the results with the correct diagnoses as published in the journal.
Google searches found the correct diagnosis in 15 (58%) of cases. . . .
Just another unintended benefit brought to you by the free flow of information available on the Internet.
[Thanks to Future Pundit for the pointer.]
Posted by John at 8:14 AM | Comments (0) | TrackBackQuote of the Day for Sunday, November 12, 2006
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November 11, 2006
The Consequences of France's 35 Hour Work Week
The Economist blog points to an IMF working paper which looked at the impact of the 35 hour work week in France, which has been imposed on large companies operating there since 2000:
(i) encouraged workers in large firms to take second jobs, or to move to small firms where the 35-hour week is not obligatory;
(ii) driven up hourly wage costs for large firms;
(iii) probably had "no significant impact" on aggregate employment; and
(iv) brought no significant increase in worker satisfaction, as measured by the Eurobarometer opinion survey series.
Among other good questions the Economist blog asks in response: "does anything ever make the French happy at all, even inadvertently?"
Posted by John at 4:31 PM | Comments (0) | TrackBackChina is Now The World's Third Largest Market for Rolls-Royce Automobiles
According to Rolls-Royce CEO Ian Robertson, China is now his company's third largest market, behind only the United States and Britain. [Source: The Times of London]
Posted by John at 4:01 PM | Comments (0) | TrackBackThank You, Veterans, For Your Service to the Rest of Us
Thanks to all of the 25 million or so U.S. veterans for your service to the rest of us. One small way to say "thanks" and to honor the sacrifice of these wonderful men and women is to listen to their stories.
One such veteran, Les Loken, has posted a series of videos on You Tube on his wartime experiences; here's one of them, a story of post-war healing between two former enemies:
Part two of Loken's story about his friendship with Namikawa can be found here. Please take the time to watch it.
Posted by John at 4:52 AM | Comments (0) | TrackBackQuote of the Day for Saturday, November 11, 2006
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November 10, 2006
China's Cities "Awash in Garbage"
Over half of China's cities are "awash in garbage." Shanghai alone produces six million tons of trash a year. [Thanks to the always terrific China Law Blog for the pointer.]
Posted by John at 9:21 PM | Comments (0) | TrackBackAsia's Startups "Going Global" Very Quickly
InnovAsia, based on the results of a survey of Asian entrepreneurs they recently conducted, sees many Asian-based start-ups crossing borders from the very beginning. The Bangkok Post reports:
Going global was inevitable, because our domestic market is too small for our product,'' said an Indian entrepreneur who exports knowledge-management software, predominantly to the US. . .
InnovAsia's survey found a moderate correlation between the location selected for a foreign office and the founding members' experience. Some 24.1% of our respondents noted that the core team members had either lived or worked in the chosen foreign country, and some did not consider any alternative because they expected their familiarity with the place and existing connections to be of great benefit.
Another reason to welcome talented foreign undergraduate or graduate students to our universities with open arms. Even when they go back to their home countries, the entrepreneurially-disposed of this group are very likely to be job creators in the U.S.
Posted by John at 8:32 PM | Comments (0) | TrackBackQuote of the Day for Friday, November 10, 2006
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November 9, 2006
Quote of the Day for Thursday, November 9, 2006
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November 8, 2006
Great Video on Chengdu
Here's a beautiful short video from internationally renowned Chinese film director Zhang Yimou, whose work includes such acclaimed films as Raise the Red Lantern and Hero, on Chengdu, one of my favorite cities in China. I love the hot pot scene with the sizzling red peppers!
Quote of the Day for Wednesday, November 8, 2006
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November 7, 2006
Quote of the Day for Tuesday, November 7, 2006
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November 6, 2006
Quote of the Day for Monday, November 6, 2006
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November 5, 2006
We Need More Galileos
John Kay considers the message of Bertolt Brecht's play, concluding that we need more Galileos:
. . . the most telling incident is when the cardinal inquisitor declines to look through Galileo’s telescope. The church has decreed that what he claims to observe cannot be there. . . .
The inquisitor did not care what Galileo’s observations showed about the motion of earth, sun and stars. He cared only that the authority of the church should not be diminished by any contradiction of its view of the world. The facts must not be allowed to get in the way of the story. All of us have a tendency to see the world in terms of simple, all-embracing narratives – axes of good and evil, the inevitable triumph of lightly regulated capitalism and liberal democracy, the transforming impact of the internet, the inexorable progress of global consolidation in industrial structure.
Organisations and individuals attach their prestige and authority to such accounts of the world. Just as Galileo’s scholarly observations were disparaged, contrary information is discounted. Honest comment and criticism challenge the prestige and authority of those who have embraced a particular narrative.
Read the complete commentary.
Posted by John at 4:36 AM | Comments (0) | TrackBackQuote of the Day for Sunday, November 5, 2006
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November 4, 2006
Adam Smith Puts It in Perspective
Whatever your political persuation, if you're disappointed in next week's election results, remember your Adam Smith:
"The uniform, constant and uninterrupted effort of every man to better his condition, the principle from which public and national, as well as private opulence is originally derived, is frequently powerful enough to maintain the natural progress of things toward improvement, in spite both of the extravagance of government, and of the greatest errors of administration. Like the unknown principle of animal life, it frequently restores health and vigour to the constitution, in spite, not only of the disease, but of the absurd prescriptions of the doctor."
[Hat tip to the Economist.]
This principle is why the United States has survived and thrived for over two centuries. It's why we should look forward to the future with optimism, regardless of the short term political hubbub.
Posted by John at 10:30 AM | Comments (0) | TrackBackChina's "Overheated" Investment Rate Actually a Product of Poor Statistics
The Economist argues that China's investment rate, seemingly "overheated", is actually modest because of poor statistics. Further, a large proportion of the country's investment has been necessary to replace the low quality industrial base build in the "command economy" era.
Posted by John at 10:12 AM | Comments (0) | TrackBackQuote of the Day for Saturday, November 4, 2006
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November 3, 2006
Bring on A Divided Government . . . and the Fiscal Restraint Which Comes With It
William Niskanen says that there's a very high price taxpayers pay for a unified government:
Posted by John at 6:18 PM | Comments (0) | TrackBack. . . From the dawn of the Cold War until today, we’ve had only two periods of what could be called fiscal restraint: The last six years of the Eisenhower administration, and the last six years of the Clinton administration, both intervals in which the opposition controlled Congress. Under Clinton, the average annual increase in spending was at about 1 percent, while, under Ike, it was negative. By contrast, our unified governments have gone on fiscal benders. Harry Truman, with the help of a Democratic Congress, sent the money flying, with spending increases of as high as 10 percent a year. Lyndon Johnson was almost as profligate. And today, unfortunately, George W. Bush, with a GOP majority, is the heir to their legacies. To put this in plain numbers, government spending has increased an average of only 1.73 percent annually during periods of divided government. This number more than triples, to 5.26 percent, for periods of unified government. That’s a hefty premium to pay for a bit of unity.
[Thanks to Greg Mankiw for the pointer.]
Quote of the Day for Friday, November 3, 2006
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November 2, 2006
Overseas Deals by Indian and Chinese Companies Set 'to Explode'
Posted by John at 4:52 AM | Comments (0) | TrackBackRecent overseas acquisitions by Chinese and Indian companies are the "tip of a very large iceberg" driven by the rapidly changing structure of global trade, according to Mervyn Davies, the chief executive officer of Standard Chartered.
Mr Davies, in Beijing for a board meeting of the bank, said he expected a huge explosion in cross-border deals as the assets of companies in fast-growing economies were realigned with the new structure of the global economy. . . .
Trade and cross-border financing businesses, as well as mergers and acquisitions, were all increasing, pulled by growing trade between the developing countries. "Over the next 10 to 20 years, a big phenomenon in the world will be Chinese and Indian companies, once they have scale in their own markets, expanding overseas," said Mr Davies.
Quote of the Day for Thursday, November 2, 2006
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November 1, 2006
Quote of the Day for Wednesday, November 1, 2006
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