Chambers Financial Blog

2011 Market Wrap Up - Much Ado About Nothing

noreply@blogger.com (Curtis Chambers) — Thu, 05 Jan 2012 10:30:00 PST

S & P 500 2011

We No Longer Need Predictions. The 2011 Final Numbers Are In!

The big news is the Standard and Poors Index managed to do something it could not have done if it had tried - after a year of great volatility, the index ended almost exactly unchanged. And this after the Japanese Tsunami, the US debt downgrade, and the Euro crisis.

The Dow Jones Industrial Average finished up 5.5% for the year, probably reflecting investor interest in dividend paying stocks.

International Markets Did Not Fair As Well

But note, all was not as well for the international markets. Britain's FTSE 100 lost 5.6% in 2011, Germany's DAX and France's CAC 40 declined over 15%, and the Hang Seng sank more than 20%.

Stock Market's Flat 2011 May Suggest Booming 2012

Jeffrey Kleintop of LPL Financial points out in his January 3, 2012 Market Commentary report, "There have been four years since WWII when the total return for the Standard and Poors 500 was roughly flat. All three of these years that preceded 2011 were followed by strong gains in the following year, averaging 38%."

While it is interesting to note the historical pattern which suggests that a strong 2012 may follow a flat 2011 (emphasis on may), the LPL Research outlook is for an average gain of about 8-12% in 2011.

Disclosure: Indexes are unmanaged and investors are not able to invest directly into any index. Past performance is no guarantee of future results.

Book Review: "The Total Money Makeover"

noreply@blogger.com (Curtis Chambers) — Tue, 27 Dec 2011 11:36:00 PST

Image: barnesandnoble.com

It's official - I'm a Dave Ramsey fan!

I just finished Dave Ramsey's book, "The Total Money Makeover," and it's one of the best books I've read on personal finance. The book is aimed at the 97% of Americans who are still trying to reach financial independence, and especially at those who are struggling. Dave has a simple message, and he doesn't mince words: "debt is dumb."

Dave's personal story is well known. By the age of 26, he had accumulated a real estate portfolio of over $4 million. A tax law change caused a $1.2 million loan to be called, and he was forced to file bankruptcy. After this experience, he began studying personal finance and teaching courses at local churches. Today, he's a best selling author, and his radio show has over three million listeners per week (I'm occasionally one of them).

The tag line for his radio show is: "The Dave Ramsey show, where debt is dumb, cash is king, and the paid off home mortgage has taken the place of the BMW as the status symbol of choice." In our consumer culture today, who else teaches this kind of stuff? It's a great message whose time has come, and Ramsey deserves credit as the purveyor.

Most Self-Help Books on Personal Finance have Two Flaws

Personal finance books usually have too many recommendations. Imagine a person starting out and struggling to get a handle on their finances. They get a book and it says they need to establish an emergency fund equal to six months of expenses, pay off all debt, get a fifteen year mortgage, fund IRAs, Roth IRAs, 401ks, get disability insurance, life insurance, long term care insurance, and so on. Sounds overwhelming, and it is. Where does one start? Most likely they don't.

Second, such books often over promise - "do this, and you'll be rich." Of course, it ain't so easy.

Dave's Message is Focused on Debt Elimination

Ramsey, by contrast, focuses on one key issue: elimination of debt. Debt, he says, "is not a tool." He has identified indebtedness as the thing holding most people back, and he concentrates on its evils like a laser beam.

Nor does he over promise on the upside. Paying off debt is hard work and no fun. It involves monthly budgeting and cash flow analysis. He recommends driving a used car (and selling your new car if it has a big payment associated with it), getting rid of credit cards, and a very modest mortgage.

Dave's Baby Steps

Dave gives his readers a clear sequential plan, called "baby steps." These are: One, establish an emergency fund of $1,000. Two, pay off junk debt like credit cards, home equity lines, and auto loans using the debt snowball technique. Third, build an emergency fund equivalent to three to six months of expenses. Fourth, defer fifteen percent of income into IRAs and, if you have children, Coverdell Education Savings Accounts. Fifth, pay off the mortgage and become debt free.

My Take

Dave Ramsey has the best plan I've seen for those who are in the early stages of taking control of their finances. Dave writes in a simple style, with a tell it like it is ethic. It's worth noting, "The Total Money Make Over" first came out in 2003, before the 2008 debt crisis. Dave was ahead of his time in his warnings about the danger of debt to personal finances, and this only adds to his credibility.

I highly recommend this book. Those following Dave's "Baby Steps," can supplement the book by listening to his radio show to keep their spirits up during the difficult but rewarding process of becoming debt free.

What is "Scarecasting?"

noreply@blogger.com (Curtis Chambers) — Wed, 07 Dec 2011 08:27:00 PST

Scarecasting is a term coined by Alan Abelson in a recent editorial titled, "Beware of Scarecasts."

Abelson writes a weekly opinion piece from perhaps the foremost perch in all of financial writingdom... the first page of Barron's each week. Alan is one of the most skeptical, pessimistic commentators out there - which is why I read his column.

As cynical as Abelson may be, in this column he condemns the practice of scarecasting. Scarecasting is, according to Alan, "dire prognostications which are not forecasts."

He writes, "perpetrators of scarecasts, whose ranks have swelled in recent weeks, insist that their dire prognostications are not forecasts, although they sedulously avoid saying exactly what they are. Something a mean little bird told them? A revelation distilled from a bad dream occasioned by eating bean sprouts for dinner? But let's not quibble—we'll call them scarecasts."

I've been seeing more "scarecasts" these days, likely precipitated by difficult market conditions and national news. It seems to me scarecasting may be a good way to sell books and newsletters, but if the predictions are irresponsible and pander to fear, the purveyors are not doing investors any favors.

"Great Recession" Defined

noreply@blogger.com (Curtis Chambers) — Tue, 06 Dec 2011 12:25:00 PST

What is "the Great Recession?" It is yet another new term added to our modern day lexicon courtesy of the general economic downturn which began in 2008 and which is continuing through 2011. By some accounts the phrase was coined by Paul Volker.

I remember first seeing the term used in mid-2009, and I noticed it quickly became popular in the media. The phrase invites comparison of the current recession with the Great Depression of the 1930's.

I was initially doubtful this newly minted phrase would prove accurate for two reasons: I thought it was too early to tell if we were in a recession or a depression; and if it were a recession, would it last long enough to compare with the Great Depression?

Unfortunately, as time has gone on the phrase has not only entered our everyday vocabulary, but has proved accurate. First, the financial system was stressed in 2008 and 2009, but it did not break, meaning we did not have a depression. Second, the recession has intractably dragged on. While stock and bond markets have recovered to some degree, the recession is all too apparent in the high unemployment rate and depressed real estate market. Here's hoping before long we'll be coining another new phrase, "the Great Recovery."

What is a Stock Market "Melt-Up"?

noreply@blogger.com (Curtis Chambers) — Mon, 05 Dec 2011 10:14:00 PST

Photo by Marcus Revertegat

What is a stock market "melt-up?" Like the term implies, a melt up is the opposite of a "melt-down." In a melt-down, stocks fall significantly in a short period of time. In a melt-up, stocks rise significantly in a short period of time.

A recent melt-up occurred on Tuesday, Oct 4, 2011. In the last hour, the market rose almost 400 points, or about 4%, in frenetic, high volume trading - for no apparent reason.

The recent melt-up is significant because it is reminiscent of the flash crash which occurred on May 6, 2010. During the flash crash, the Dow dropped 1,000 points and then recovered within the span of half an hour. (The Dow Jones Industrial Average, DJIA, is comprised of thirty stocks that are major factors in their industries and widely held by individuals and institutional investors.)

It would seem that with rapid fire computer trading and the underlying level of market volatility, we should expect such market events to continue for the foreseeable future.

(The DJIA is an unmanaged index which cannot be invested into directly. Past performance is no guarantee of future results.)

How to Fix Jobs

noreply@blogger.com (Curtis Chambers) — Thu, 30 Jun 2011 13:21:00 PDT

Image via Wikipedia

Changing Our Tax System - Rather than Just Tax Rates - Would Go Along Way to Improving the Job Outlook and America's Economy

Americans have a pessimistic outlook on the future of the U.S. Many feel something is wrong, but few see the U.S.Income Tax as the economic obstacle holding our country back. Fifteen million Americans are out of work today. I believe the structure of the Income Tax is a major contributor to America's joblessness as well as its ongoing trade and budget deficits. Its effects are hidden, but harmful. To jump start the US economy, America should consider changing to a National Sales Tax.

Of the many arguments advanced against the Income Tax, the most crucial is that it puts domestic enterprise at a labor cost disadvantage to foreign competition. That's bad for jobs in America, and good for jobs overseas.

Who Really Pays the Income Tax?

We tend to think it's the individual tax payer. Thus the name “Income Tax,” its graduated structure, and the very philosophy for its existence. The idea that each taxpayer pays based on his or her level of income sounds good - but in practice it doesn't work out this way.

Let's consider workers receiving a fair market wage based on the laws of supply and demand. Now a part of this wage is taken away by a tax. The workers require higher wages to compensate. Wage rates increase, passing the tax on to their employers. The employers then have to pass the cost on in the price of their goods and services (or they go out of business - as we have seen in the manufacturing sector). The end result is the Income Tax is paid by the consumer through higher prices on anything domestically produced.

This might all work if we had a closed system (that is, a system where international competition were not present). The root problem is the Income Tax is assessed only on domestic labor, putting US based businesses at a cost disadvantage in the global arena.

The Income Tax Functions as a Domestic Tariff

A tax levied on goods imported to or exported from a foreign county is called a tariff. Tariffs are considered counter-productive by most economists. Through the Income Tax, the United States has imposed a tariff on itself - on its own labor.

If we understand that the Income Tax in practice functions as a self-imposed tariff, then a number of things start to make sense. These include the loss of labor intensive jobs in the US, and the intractable trade deficit, which is running at approximately $35 billion per month.

Who Benefits (Or Thinks They Benefit) from the Income Tax?

Besides the workings of the Income Tax being misunderstood, there is a related problem: the Income Tax is popular. Yes, popular. Consider how many different constituencies benefit, or at least think they benefit:

- Government: the Republicans and Democrats on Capitol Hill may disagree about health care reform, but not the Income Tax. They may argue about relative rates, but never the structure of the tax itself. Elected officials find their importance and job security enhanced by the nature of an income tax. Giving out tax deductions is a good way to stay popular, no small consideration for the political class.

- Unemployed: there's no Income Tax to pay. An unemployment check may be in the mail. It's easy to not realize one reason for the unemployment is the income tax which is raising the cost of the job.

- Self-employed: quarterly estimates and Social Security matching is unpleasant, but businesses expenses are deductible, and unreported income is a possibility.

- Traditional Employees: employees will not pay the tax due to withholding. Come April, a refund check may be in the mail.

- Tax Favored Industries: those employed in industries such as accounting, law, and real estate benefit. Tax deductible services are good for business.

- The Upper Middle Class: deductible savings programs like 401ks and Roth IRAs help, as well as myriad itemized deductions.

- The Rich: many loopholes and planning strategies are offered by the complex tax code. The rich are often rich in assets, rather than earned income. Under an income tax, income - not assets - is taxed. Tax free bonds and other tax advantaged investment options exist.

- Foreign countries: they may complain about trade barriers, but not the US Income Tax. Note: every industrialized country other than the US levies a Value Added Tax (VAT). Do these countries, with their rapidly expanding export based economies, know something we don't?

The Controversial 16th Amendment had to be Passed to Make the Income Tax Constitutional.

It has often been pointed out Karl Marx listed a graduated income tax as the second point in his Communist Manifesto for the steps necessary for the transition from Capitalism to Communism. The Founding Fathers, however, were not so keen on the Income Tax. The controversial 16th Amendment had to be passed to make the Income Tax constitutional.

The Income Tax Puts Pressure on US Based Companies

The Income Tax puts tremendous pressure on businesses based in the USA. This is why many manufacturing firms relocate outside the US. The US Government is dependent on one main source of revenue – a tax on the jobs of American workers. This can't be good for jobs. The only way US businesses can lower their tax burden is to reduce the number of employees on their payrolls. Is this the incentive we wish to create?

Eliminating the Income Tax, and Implementing a Sales Tax Would Benefit the US Trade and Budget Deficits

Eliminating the Income Tax and implementing a Sales Tax (or a Value Added Tax) would address many issues. A Sales Tax would apply to all goods and services sold in the United States. Imports would be taxed on an equal basis with domestically produced goods. Note: US exports would not be subject to a Sales Tax since they wouldn't be purchased in the US. Companies based in America would become more competitive both here and abroad.

The most intractable problems of the modern US economy would be addressed. The trade deficit would be favorably impacted, as US exports would be less expensive and imports would cost more. The budget deficit would benefit because an increase in taxes would not penalize American businesses versus foreign competition. Government would be more accountable and transparent. The complex system of deductions and regulations would not be needed. Government micromanagement of our economy would be reduced.

Proponents of a National Sales Tax often argue that Americans would pay less with a Sales Tax. This isn't the key issue. Isn't it better to have an income and pay taxes than to have no income at all? What is needed is a tax system which allows Americans to fairly market their goods and services in a competitive global economy. The Income Tax fails at this, and in so doing, fails the unemployed - and all Americans.

My Book Review: "Googled - The End of the World as We Know It"

noreply@blogger.com (Curtis Chambers) — Tue, 25 Jan 2011 09:09:00 PST

Cover via AmazonI just finished Ken Auletta’s book, “Googled – The End of the World as We Know It.” Here is a short review.

“Googled” is really two books.

First is a history of Google. This has been done before, notably in “The Google Story.” But it’s interesting to read about it a second time.

Two graduate students at Stanford come up with a better search engine. Their big idea was to include hyperlinks in the ranking of search results. (A link is where one site references another site and includes a clickable web address.) They go to work immediately, and soon Google is the biggest thing on the Internet.

An interesting point Auletta makes is that Sergey and Larry didn’t start out thinking about how to monetize a search engine. Their focus instead was on building the best search engine in the world.

Figuring out how to monetize was an afterthought. For entrepreneurs, the lesson may be to first focus on doing something exceptionally well. Now that I think about it, that’s a good lesson for everyone.

Names are important.

Image via Wikipedia

Google is a great brand name. The original name was going to be Backrub. Not quite the same.

They also have a great logo, and their home page (see the original beta above) is famously free of clutter and advertising. This nonverbal message adds to Google’s credibility.

Is It Okay to Drop Out of Graduate School?

A lesson I drew from the book is that if you come with an idea as good as Google, it’s okay to drop out of Grad School, even if the school is Stanford. What if they had waited till they graduated to found Google? Someone else may have gotten there first. And think how much they saved on tuition!

In fact, the more I read this book the more I started to think dropping out of an elite college or Grad School is the way to go. Consider: Bill Gates (Microsoft) dropped out of Harvard, Steve Jobs (Apple) dropped out of Reed College, Michael Dell (Dell) dropped out of Texas, and Larry Ellison (Oracle) dropped out of the University of Chicago.

The second half of the book focuses on how Google is changing the world.

The answer is much, and in ways we don’t yet understand. Mr. Auletta believes old media companies (such as newspapers and network news shows) were slow to grasp the implications of the Internet and the changes it would bring. So a lesson here may be to take new technologies more seriously.

Auletta points out that today Google dominates the world of information and is poised to grow even more. Will Google soon be running the world? Not so fast. Just remember AOL, he says. It wasn’t long ago that AOL was the big Internet provider. Where are they now?

The world is changing and change happens fast, and that even applies to Google. Keeping up with it all isn’t easy, but reading the book, “Googled” is a good start.

Chess and the Game of Life

noreply@blogger.com (Curtis Chambers) — Mon, 20 Dec 2010 10:51:00 PST

Can Chess make you a better investor? Wall Street firms have been known to recruit strong Chess players. Boaz Weinstein, a leader in the investing world, is a top rated Chess player.

Can it make children better students? Here is research on the benefits of Chess compiled by Dr. Robert C Ferguson.

A better soldier? The Navy Seals even weighed in – Chess players do better in Seal training.

For my part, I had played Chess as a child and in college, but not much after that. Then I started noticing Bridge players. I knew a fair number, and they were cognitively sharp as a tack.

In fact, the difference was so noticeable, I could pick them out. I would ask after talking with someone, are you a Bridge player? Often, I would be right.

Not being a Bridge player, I picked up on Chess. I have found many benefits to playing Chess, even if you’re average, as I am.

School and Chess

In school, students are graded on whether their answers are right or wrong.
In Chess, they chart their own path. It takes math, calculation and visualization skills. Chess teaches how to think.

In this Wall Street Journal article, Lessons from the Chessboard, a school in North Saint Louis is finding success with Chess.

Chess and Family

As a child, I played Chess with my father. I didn’t want to, as it was hard work doing all that thinking, and I almost always lost.

But in retrospect, it was one of my best childhood experiences. I attribute my academic success in college and graduate school to my childhood Chess games.

I enjoy playing Chess with my children. My eight year old is good, and my three year old knows the names of the pieces and can set up the board. We play a simplified version called “pawn wars.”

Does learning Chess as a child make you a better player? Consider the case of the Polgar sisters, three sisters who played Chess with their father at very young ages. They became three of the best players in the world.

This epic family Chess battle was waged in Monte Carlo. My wife won (as usual).

Chess and Computers

Garry Kasparov lost to IBM’s computer Deep Blue (shown above) on May 11,1997. I reckoned Chess was finished. A computer beat the best human in the world.

But the opposite has proven true. Computers are a positive.

On the Internet, you can get a game against a player of equal skill in seconds. The age old problem of finding someone to play has been solved.

Computers can also analyze. Wonder where you went wrong in that last match? The computer knows. In olden days, you needed a Grandmaster to find out.

Chess without Computers

Paradoxically, Chess is also the ultimate low tech game. It’s played on a board with wooden or plastic pieces.

It gets kids off the internet and the Xbox. They’ll fuss, but they’re okay once the game starts. In my house, we use the same coffee table (shown above) that I played on as a child.

Chess Today

Today, Chess is one of the largest sports. It’s recognized by the International Olympic Committee. There’s a cool international aspect to the game. Play on the internet, and encounter players from all over the world.

Get started and get your kids involved. NM Dan Heisman is a leading Chess coach and thought leader. He has articles on his website on how to begin or improve. I’ve studied and found Dan’s work to be the best.

Good luck! Send me an email and let me know how it goes.

An Odd Thing About the Tax Hike Debate

noreply@blogger.com (Curtis Chambers) — Wed, 15 Dec 2010 10:41:00 PST

The argument in Congress right now is whether to extend the Bush era tax cuts or to let them expire. There’s lots of discussion on whom to raise taxes on, and by how much.

But the US does not operate in a competitive vacuum. America is not an island (anymore). Unemployed Americans number 15 million. In many cases, US jobs are being lost to international competition.

Here’s a question when evaluating changes to the US Income Tax: Will they make US workers more or less competitive in the international marketplace?

Toledo, the "Glass City," Must Import Glass for Its Museum

noreply@blogger.com (Curtis Chambers) — Fri, 10 Sep 2010 13:39:00 PDT

As well reported by the Wall Street Journal, the city of Toledo ~~is having to~~ had to import the glass for the Toledo Museum of Art’s $30 million Glass Pavilion ~~sculpture~~ building. The Glass Pavillion was constructed during 2005 and 2006.

Toledo was once a major supplier of glass and on the forefront of glass technology. Today, ~~it must turn to China to get the sophisticated glass for its own museum~~ the Wall Street Journal reports: "The pavilion glass was imported from China, the new global powerhouse of the glass industry."

I lived in Toledo for several years during the late 1970’s. Even then, the city was in economic distress from the loss of its manufacturing base.

Does the US have a Tariff on Domestically Produced Glass?
In September 2009, tariffs were enacted by Washington on steel pipe and tires. Some feel additional tariffs could help the US glass industry. I would suggest that the US already has a tariff on glass production. The problem is it’s on ourselves. The tariff is otherwise known as the US income tax. It raises the price of goods manufactured domestically by raising the cost of labor. Produce outside the US, and you don’t pay the tax. Thus, industry moves overseas. And the plight of once great cities like Toledo is the result.

I lived in Toledo for several years during the late 1970s. Even then, the city was in economic distriss from the loss of its manufacturing base. My grandfather lived his entire life in Toledo. He loved the city. Below is a historical building which reminds me of the "old Toledo" he must have known.

Brand Building, Toledo, Ohio

Source: Wikimedia Commons: As a work of the U.S. federal government, the image is in the public domain.

St Louis Arch in State of Decline

noreply@blogger.com (Curtis Chambers) — Thu, 09 Sep 2010 09:09:00 PDT

As reported by the St Louis Post Dispatch, the Arch is showing signs of rust and decay. Just to get an estimate of what it will take to repair the “Gateway to the West,” will be very expensive.

The St Louis Arch is my all time favorite landmark and piece of architecture. I can remember when I was a child in St Louis and it was being built. It created such a sense of wonder. I hope the St. Louis community, and the entire country, will rally around its restoration.

Like our nation, this landmark shows us that it is one thing to become great, and yet another to maintain that greatness. Perhaps the latter is more difficult. And by being in a state of disrepair, the Arch again reflects the nation that created it. Here is to its speedy repair.

Wikimedia Commons.This file is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported license.

A Happy Story from the Newspaper

noreply@blogger.com (Curtis Chambers) — Tue, 07 Sep 2010 10:06:00 PDT

A woman drove her wheelchair off a bridge in Florida in an attempt to kill herself. She was newly homeless, and had severe health problems. Three teenagers who were fishing saw her. Travis Mauldin, 17, Cody Beasley, 17, and Brandon Smith, 16, jumped in the water and rescued her. They risked their own lives.

The woman, Faltecha Munch, was very concerned the boys might drown while trying to save her. She told them to leave her, but they would not. Ms. Munch says she has decided "to not give up, not now, not ever."

This is such a wonderful story of heroism and the will to survive. It makes me proud of Florida and America. Here is the full story.

Source: St Petersburg Times, September 6, 2010.

How I discovered Tally Hall

noreply@blogger.com (Curtis Chambers) — Thu, 11 Mar 2010 13:44:00 PST

I have been listening to a wonderful new musical group - Tally Hall. I discovered them because my two year old son old watches a children’s TV show, Happy Monster Band. I noticed the music to the show was extraordinary. Here is one of the vignettes, “Even Monsters Cry Sometimes.”

I checked and the music was written and performed by Tally Hall. I picked up their latest album, and it is some of the best contemporary music I have come across in many years.

I would describe their style as happy and super-creative Pop. Here is one of their songs, Good Day.

They have been signed to the Atlantic label and their second album is due soon. They are from Michigan - it’s good to see such great new artists coming on the scene today.

By the way, I have to give my son credit. I get up and watch the depressing news. He turns on his cartoons and has a great time. I think he is the smarter one. And he even has good taste in music.

Super Bowl: Super Message

noreply@blogger.com (Curtis Chambers) — Thu, 11 Feb 2010 12:49:00 PST

I was thinking of more than just football while watching the game last Sunday. I was thinking: America is good at free enterprise. Any country that can play a football game and have 97 million people watch it on TV is doing something right. The advertisements are so entertaining that people watch for the commercials as well as the game. Talk about capitalism.

Recently, Paul Krugman wrote an editorial for the New York Times titled, “America is Not Yet Lost.” I felt the tone reflected a certain hopelessness about America’s future that is becoming all too prevalent.

The Super Bowl was a non-literary counterpoint to this idea. Maybe that is why it was the second most watched TV program in history. To me, it wasn’t a football game. It was America in action.

How to Have a No Maintenance Lawn - and Benefit the Environment

noreply@blogger.com (Curtis Chambers) — Mon, 23 Nov 2009 13:26:00 PST

I am having a lot of fun converting my lawn from traditional grass to a natural lawn. Here is a picture of my front lawn today. It is still in the early stages of conversion - which involves removing the grass. It turns out that grass is not only difficult to grow, it is even more difficult to remove.

The process of removing grass involves covering sections with an old piece of carpet. After being shielded from the sunlight and water for about three weeks, the grass is dead. ~~Then, I dig up the old grass and till the soil.~~ [A knowledgeable reader has emailed me that it is better to not dig up the old grass, as this can foster weed growth. She says to simply plant within the old grass.] Finally, I plant small pods of a native plant called Sunshine Mimosa, which will eventually spread and function as a natural groundcover.

Sunshine Mimosa is native to where I live in Central Florida. Thus, it is naturally adapted to this area's climate, soil, and wildlife. Sunshine Mimosa is one of many native options, which include other groundcovers as well as bushes, trees, ivies, and more. To give you an idea of what it looks like "after" the new groundcover grows in, here is a picture of my backyard, which I started last year.

Benefits of Florida Natives

The "new lawn" is extremely drought resistant and requres no watering. It also needs no fertilizer or insecticides. It will grow to a height of between 3" to 9" inches. It grows slowly and mowing is not required, but to keep it shorter it may be mowed about every six weeks during the Spring and Summer months. In contrast, grass needs to be mowed about once a week during that period here in Florida.

Did you know approximately 5% of all air pollution in the U.S. comes from lawnmowers? So there is an environmental benefit to mowing less. It is also good for the environment to not have to water. Florida has been having drought conditions lately. It is estimated that up to 80% of an average household's water use is for lawn and garden irrigation. The amount of watering needed for Sunshine Mimosa is zero. And the need for sprinkler systems, which are expensive and prone to breaking down, is also eliminated.

From an aesthetic standpoint, last year at the height of the drought in the Florida summer when everything was brown, my Sunshine Mimosa was bright green. I was getting compliments from some of the same people who were skeptical when I put it in.

Here is another reason why you may want to consider a native lawn versus grass:

Wildlife cannot live in grass. In fact, only two species do well in grass here in Florida: cinchworms and ticks. By contrast, Sunshine Mimosa attracts butterflies, bees, birds and rabbits. I have noticed a big increase in the wildlife in my backyard since the change. And there is more than meets the eye to this on a microenvironmental level. One native plant, Saw Palmetto, will support up to two hundred different species of native Florida wildlife.

What About the Negatives of Using Natives?

The one objection I frequently hear is that a native lawn will reduce property values. I am not sure this is true - did grass save property values here in Florida in 2008? At any rate, I'll take a home that is livable and environmentally friendly.

Sunshine Mimosa Even Flowers

Oh, I almost forgot - during the Spring and Summer, Sunshine Mimosa flowers everyday, which you can see in my picture below.

I hope you, and everyone in America, will consider giving gardening with natives a try. Using natives is good for the environment and a lot less complicated than Carbon Credits.

Lost in the (Hospital) Supermarket

noreply@blogger.com (Curtis Chambers) — Sat, 10 Oct 2009 08:10:00 PDT

Morton Plant Hospital in Clearwater, Florida

Photo: Mikereichold

With all the talk in the news about health care, I thought I would weigh in with my two cents from a personal perspective. My family's recent experience at Morton Plant Mease in Clearwater, Florida was just great. The hospital is the recipient of the “Magnet” designation, an award for nursing excellence from the American Nurses Credentialing Center (ANCC). I can see why. The nurses and doctors there that delivered our baby were terrific. We saw the great side of health care in America last week.

On a lighter note, the hospital is a labyrinthine maze to navigate through. The hospital is old and has had numerous wings, floors and additions added to it over the years; it now has something like three entrances, 5 different elevators, and mezzanine, ground and first floor levels. After innocently leaving to get a cup of coffee from the hospital cafeteria, I felt like Jason and the Argonaut's when trying to return to my wife's room.

I would love to ask the designers of the hospital floor plan a few questions: what is the difference between the ground level and the first floor? And why is the "Basement Level" above ground? And why was my wife's room numbered #7319 when it was on the 3rd floor?

When I finally found the one elevator out of five that actually went to the seventh floor (which could only be reached through the basement), and pressed the buzzer to talk to the nurse's station, the nurse said they had no Chambers on that floor. "She has to be," I exclaimed! Her room number, dutifully memorized by me before my Hero's quest to get a cup of coffee from the hospital's cafeteria had begun, was #7319. Someone on the nursing staff patiently explained that it was on the third floor, and when I protested, that this was somehow logical. My guess is that Daedalus himself could not have done better. I almost wondered if the layout of the hospital had been designed by the same people who designed Windows Vista.

I was determined to return to my wife - but should it have required a struggle of epic proportions at 5 o'clock in the morning - worthy of a chapter in the Odyssey - when my wife was in labor? I am sure she figured I had hightailed it to California with a case of last minute nerves, never to be seen again until tracked down by the Department of Health and Human Services. Sure, I could have prevented all this by asking someone on the hospital staff for directions, but of course that was out of the question for obvious reasons. By the time I actually managed to get back to my wife's hospital room I half expected to encounter Penelope's suitors, or at least a new addition to my family.

The whole episode game me a sense of Deja Vu. I feel I am sensing a trend here. Life today is getting more and more complicated. Computers, which were suppose to make our lives simpler, are a major culprit. It takes five remotes to operate our TV. It is not uncommon to have TVs with over 800 channels. (I remember when we had three). I have to program my telephone - to no avail...

Sometimes I feel like the Minotaur when trying to navigate through this modern world we live in today. And even the local hospital seems to feel a need to get in on the action.

But, to borrow a few words from Shakespeare, which incidentally are not copyrighted, "all's well that ends well." And that was the case as both my wife and new baby boy, Tanner John Chambers, came home healthy and happy from the hospital.

(Disclosure: The title of this blog post is derived from the song title "Lost in the Supermarket," by the Clash.)

"Top Hat" - When America was Tops - Film Review

noreply@blogger.com (Curtis Chambers) — Mon, 03 Aug 2009 05:16:00 PDT

This image is in the public domain in the United States.

There are two theories about human evolution. One is that we are moving forward - mankind has gone from using stone tools to computers and air conditioning. The other theory is that we are going backwards - the fall of the Roman Empire idea. If you subscribe to the latter, point of view, then you may not want to watch the movie, "Top Hat." It may only confirm your worst suspicions.

Filmed in 1935, the movie is not far off from being 100 years old.

That makes it as much of a time capsule as a movie! And although it is certainly tough to skip over your "Transformers II" DVD from NetFlix, you may find yourself rewarded for having another look at this old, old movie.

Let's consider it from a cultural standpoint.

Today, where I live in Florida, the "uniform" for men is cargo shorts, flip-flops, a t-shirt (hopefully with a pocket to make it more dressy) and a baseball cap. Back then, it wasn't even a suit and tie, it was a tuxedo, and not just a tuxedo, but a tuxedo with tails. And a fancy collar for the shirt. And a vest. With a pocket watch. And pocket squares. And cuff links. And shoes that were not just polished, but were patent leather, with these cool white things that fit over the top of them that I don't even know the name for, and I have a pretty decent vocabulary, if I do say so myself. And black buttons for the shirts. With hair not just groomed but sculpted and slicked back. You get the idea.

And as for the women, well, they wore hats, and I mean hats that were designed by artists and made by craftsman. Hats that could easily be in the museum today... not as historical artifacts, mind you, but as works of art. Someone sat there and thought these hats up, then made them, then women took the time to pick them out, and wear them. Not to mention the women's hairstyles, which were quite elaborate. I can only think the effects were achieved with curlers, which of course got a bad name when housewives started wearing them to the grocery stores in the 1950s. One more loss. Oh well.

And what did men argue about after having a martini and dancing (ballroom dancing, that is) till one in the morning? Things like whether it was permissible for a bow tie to have tapered rather than squared edges! Today most of us men could not even tie a bow tie.

Men don't wear hats today, we wear "caps."

Not only did men wear real hats back then, like fedoras, they sometimes even wore top hats. And they didn't just wear top hats then, they named movies after them. Think about that for a second. How would that go over today? Now showing, "Die Hard 4," "Transformers 2," and "Top Hat." The studio marketing guys would cringe at the thought... script writers would lose their jobs at the mere suggestion of that for a title.

And of course, less we think this is all just make believe, that it was never really like that, that it was just a movie, there is Fred Astaire, plain to see through the magic of celluloid, who could dance like no one can today. As though to say, all this is no illusion: We really were at a level of culture then that cannot be even imagined today. Any more than we can imagine naming a movie, "Top Hat."

But don't despair. Today we have all kind of wonderful new things they didn't have back then - like McDonald's, the Internet, and ... blogging. Curtis

Do you like Fred Astaire movies? Here is my review of "Swingtime."

What is "Rank or Yank" management?

noreply@blogger.com (Curtis Chambers) — Thu, 30 Jul 2009 17:30:00 PDT

"Rank or yank" refers to a style of management that you won't find in Tom Peters, "In Search of Excellence". That's okay, "In Search of Excellence," the international bestseller on the art of management practiced by the world's leading corporations, seems a bit dated, and I don't think we saw much excellence in corporate America last year, did you?

"Rank or yank" management refers to a style of business management where the top 20% of a firm's employees are promoted and treated to great rewards, while the bottom 10% are fired. Often, "rank or yank" management is accompanied by top management's talk of high business ethics. The result though, is the employees get the message loud and clear to produce at any cost and are spurred by the twin motivators of greed and fear. Produce at any cost can be dangerous, as we saw in the recent financial meltdown of 2008.

I first came across this descriptive term in this outstanding Barron's interview with William Black, Associate Professor of Economics and Law at the University of Missouri, Kansas City. "You don't directly tell your employees you want them to lie and cheat. You set up an atmosphere of results at any cost. Rank or yank. Sooner or later someone comes up with the idea of fudging the numbers," said Black. The problem, according to him, is that the system discourages whistle blowing and calls upon the cooperation of everyone. Thanks to Mr. Black for his candor in his interview with Barron's, and for coining a phrase which shall forever stick in my mind as emblematic of one of the less appealing facets of corporate America.

Personally, I have seen "rank or yank" in action. It combines the social pressure of keeping up with the Jones's, with the threat of the Grim Reaper of job failure. One can see where it can be effective as it combines the twin motivators of fear and greed.

But by having a name for this system of management, perhaps we have taken the first step towards dealing with it. Now we can better recognize it and its less appealing characteristics, and in the future, better deal with the repercussions. Rank or yank management is a term which needs to enter our national lexicon.

What is "Web 2.0?"

noreply@blogger.com (Curtis Chambers) — Mon, 20 Jul 2009 10:55:00 PDT

You may have heard a new term lately: "Web 2.0." The term refers to the world wide web and like the web it is difficult to define... I will try to put it into layman's terms:

"Web 2.0" refers to new developments that are currently transforming the Internet. The concept is that the first generation of the Internet was "Web 1.0." In its first iteration, using the Internet involved primarily two things: 1) email, and 2) browsing through websites designed by someone else (third parties). An example would be Amazon.com. Web users would visit Amazon, look around, and perhaps buy a book, then leave.

Then, several years ago, this began to change as web sites became increasingly interactive.

Websites like Linkedin, Facebook, and Twitter allowed users to design their own page, which they could personalize with their biographical information and photos. Next, users could link their pages up with that of other users, forming networks. Now communication could occur not just through email, but through these networks. No longer were Internet users passive participants just "surfing" the Internet. Now they were creating their own content and sharing it in ways never before possible. Thus, many believe a quantum leap in communication technologies has recently occurred.

And now if users like something, they can bookmark it, not just to their personal computer, but to a shared site on the Internet, and now their entire network can also see and access these sites (think about everyone talking around a virtual water cooler). Individuals began to "blog," (blog is short for "web log"). This and more is Web 2.0, the second generation of the Internet. Read more about Web 2.0 at Wikipedia.

Why does Web 2.0 matter?
First, Web 2.0 democratizes information in a way never before possible. Rather than, for example, just passively reading a newspaper written by a third party - now everyday people, not just journalists and celebrities - are creating and sharing content themselves. During the recent turmoil in Iran, these Internet networks played a role in disseminating information both inside and outside the country and perhaps in some ways contributed to the events that occurred. Is this significant? The controlling parties in Iran and China seem to think so, as they are attempting to use technologies to attempt to censor the internet.

The second reason is that no one person, no central authority, created Web 2.0. Rather, it emerged naturally from the actions of millions of individuals. How is that for democracy and capitalism in action? So Web 2.0 argues for the power of the individual as opposed to that of bureaucracies or centralized authority. I find it quite exhilarating.

Finally, there are those who say Web 2.0 doesn't even really exist, that it is just a catchy phrase and that the Internet has not fundamentally changed. My response to these naysayers is: that's no fun! After all, without the occasional new word or idiom, what is a logophile to do? And what is a blogger to blog about?

If you'd like to learn more about Web 2.0, you may want to check out Neil Patel's excellent blog. He's kind of a big deal in the world of Web 2.0.

NPR Interview with Jockey Calvin Borel

noreply@blogger.com (Curtis Chambers) — Sat, 30 May 2009 16:26:00 PDT

Photo by: Joe Schneid, Louisville, Kentucky.(Creative Commons Attribution 3.0 Unported)Source: Wikimedia Commons

Jockeys in general, and Calvin Borel in particular, are inspirational. While small in stature (Calvin is 5'4", 118 lbs), I think jockeys are among the most courageous competitors in all of sports. According to NPR, Borel, who started riding horses when he was two years old, has raced in over 25,000 races and won more than 4,300. He is over forty years old, and during his career he has broken both legs, both shoulders, both collarbones, a wrist, most his toes and six ribs. His teeth are gone, knocked out in falls. His $3,000 set of replacement teeth are also gone, knocked out in more falls. Some of the fellow jockeys he has come up with have been paralyzed or even killed. I figured being a jockey was dangerous, but I had no idea how dangerous.

Borel has only recently become famous for winning the Kentucky Derby in 2007 and 2009 and then for winning the Kentucky Oaks on May 1, 2009. On May 16, 2009, Borel won the Preakness.

Here is the brief but exceptional audio 2007 NPR interview with Borel which brings out his personality. Also, notice the exceptional photograph of Borel shown above by Andy Lyons, in which a picture is worth a thousand words.

Wall Street Journal Editorial, "Soak the Rich, Lose the Rich"

noreply@blogger.com (Curtis Chambers) — Mon, 18 May 2009 10:55:00 PDT

Here is my take on this editorial which appeared in the WSJ on May 18, 2009:

The editorial, "Soak the Rich, Lose the RichWall Street Journal," makes an excellent point that when one State raises its Income Tax rates, business and wealth will flow out of that State to those with relatively lower rates.

However, it seems more difficult for us to envision this same dynamic on a national basis when it comes to domestic versus international markets.

The US Federal Income Tax essentially functions as a hidden tax on domestic businesses, as it raises their cost of labor. As US labor costs increase, jobs likewise flow overseas. Keeping Federal Income Tax rates low helps keep productivity up, but results in chronic budget deficits.

Long term, the US needs a tax system that taxes domestic businesses on an equal basis to their foreign competitors. The most likely candidate would be a National Sales or VAT tax, coupled with the repeal of the Income Tax. If we still wish to tax the rich further (an argument I'll abstain from), then an asset based tax, such as a intangible property tax, may be an alternative to consider.

Battlestar Galatica (2004): Review

noreply@blogger.com (Curtis Chambers) — Fri, 01 May 2009 14:40:00 PDT

Televison/SciFi Channel:

In difficult times, movies (and television shows) have often provided us with a helpful uplift. What's more, I think it is fair to say Hollywood makes movies and television better than anyone else, and in fact, movies are one of America's most successful exports. Hollywood has a huge share of the world's entertainment market, with over half of the audiences for Hollywood's movies coming from outside the USA.

And so it is always a delight to discover a really good movie or TV show, not just because the show is enjoyable, but because it is nice to see what America can produce. I think Hollywood succeeds so well because making good movies requires a mixture of good business sense, imagination, technical skill, and audacity - typically American virtues.

These elements certainly come together in the SciFi Channel's "Battlestar Galatica." This series, which ran four years and won both Emmy and Peabody Awards, features great writing, acting, and superior special effects (the special effects are better than that of most big budget Science Fiction movies).

The plot is a science fiction standard, and yet it is complex and multi-hued. Mankind created a race of increasingly sophisticated machines, which of course have become superior to their creator and rebelled. Now the two are at war. The story arc has a bit of a dark edge. Humanity is struggling for survival, and at times the machines can almost seem like the good guys, as they take on increasingly human qualities, while the real humans can at times behave quite cruelly. What is left of mankind is only about 50,000 people who are on the run, traveling through space in a sort of wagon train to the stars.

I tend to avoid the SciFi Channel, but after reading the critical acclaim the show has received, I am glad I made an exception. I am just finishing Season 1, and I am looking forward to watching the next four seasons on DVD.

"Exurb" defined

noreply@blogger.com (Curtis Chambers) — Wed, 01 Apr 2009 14:35:00 PDT

This image is in the public domain.Source: Wikimedia Commons

Do you remember the good old days when things were simpler and people either lived in the city or in the suburbs?

Then came the real estate boom and suddenly people were moving so far out it was past any reasonable definition of "suburbs." The idea was to buy a bigger and/or cheaper house because it was located in the boonies. Thus, a new term was invented to describe these distant locales: the "exurbs." I remember my shock the first time a friend told me he was voluntarily moving almost an hour a way from his job. Shortly after, my father in law moved an hour and a half away.

When I lived in St Louis, I loved the city. Not the outskirts, not the suburbs, but the city. However, the migration to the suburbs was a constant, and soon, I felt a bit alone as a city dweller. Above is a picture of downtown St Louis, which I think it is kind of neat.

Film Review: Patton

noreply@blogger.com (Curtis Chambers) — Sat, 07 Mar 2009 17:33:00 PST

Why don't they let Generals design their own uniforms anymore?

Here is my review on Amazon of Patton, starring George C Scott. The film may seem a bit dated in parts, but Patton's strong willed and brazen approach to confronting adversity is inspirational.

Image republished within a fair use context. This image is © by their publisher and labeled for reuse

"Toxic Waste" Defined

noreply@blogger.com (Curtis Chambers) — Sat, 07 Mar 2009 16:02:00 PST

The above image is in the public domain in the United States because it is a work of the United States Federal Government. Source: Wikimedia Commons

I got you! You probably thought toxic waste referred to spent plutonium rods from nuclear power plants that still need to be buried in somebody's backyard in Arizona? No, that was the 1970's and Three Mile Island.

Today, the term Toxic Waste refers to troubled assets held by banks, such as bad mortgages, mortgage related instruments, and other debt-related products.