Quetag: September 2007

Breathtaking Photos From Nature

Breathtaking Photos From Nature

These are just some amazing photos of nature on this website.

Formula for Success

Is there a formula for success?

S(d) = (( Sk(l) + R(l)) . A) +E

where

S(d) = Success. Success is a function also of what you decide it should be (d). This internal definition for success is critical and different for everyone.

Sk(l) = Skill. This is your innate skillset to perform any task. This is also a function of the level in a group. The higher the level the lower the level of technical skill that is needed.

R(l) = relationship skills. This is also of great importance and become more important the higher the level in a group

A = ambition

E = enthusiasm

Milton Keynes

Milton Keynes is also starting to feel like a real city rather than a planned city. There is new organic development, new people. Was good to see and felt like it had more life that I had seen before.

Turmoil in Financial Markets

Now everyone is reporting on turmoil in the financial markets. The FTSE 100 dropped to the lowest point in a year.

Meltdown is the word that is being used.

A bit of perspective is needed. Remember though that the FTSE 100 and Dow Jones are only so high as they have risen so fast over the last few years. Going back to the level of a year ago is not a meltdown, going back to the level of 15 years ago is a meltdown.

So the market is going down. Everyone is now surprised that the banks have lent too much. It is the banks fault for bad lending or the rating agencies fault for bad models. It is not the fault of individuals for borrowing too much.

The banks all knew exactly what they were doing. They were lending the money because they could make huge profits off these loans (until the economy turns). The money earned was huge, they new exactly what they were doing. This is the normal course of business, and they should feel the losses from the decisions they made and should not be covered or should not be 'excused' as bad decisions.

The central banks, ECB and Fed have now pumped billions into the market to stabilise the market. This does add liquidity, but inflates prices. It did not and will not work long term.

The net effect of this is to allow those in the know (or with the losses) get out of the market at the best price. Whoever is left in the market will suffer the big losses, ie small investors and pension funds, people with illiquid asset or not onto of the markets enough to pull the money out in time when the central bank money runs out.

Essentially the central banks underwrote the bank losses, or put another way the country/taxpayer underwrote these losses.

Bad lending and borrowing is a huge business and problem. The problem will continue to deteriorate and get worse.

Greenwash

Have just watched a documentary on Greenwash.
Greenwash is the green spin that is put on environmental programs without really achieving something. Interesting.
One of the biggest areas to focus on is energy saving. However this makes me think about how to generate this change in behaviour. At the moment this is all voluntary, and appeals to what we should do.
There needs to be a financial incentive to do this and save money. I like the idea of a carbon tax, but maybe it should not be a carbon tax, but a fossil fuel tax. All fossil fuels could be taxed, non fossil fuels non taxed.
So therefore a blended fuel would be partially taxed. This could be taxed at point of entry into the system, then all the costs would be passed on through to the consumer. The one area that would need to be thought through would be the import of goods manufactured overseas. These would need to be considered also.