17. October 2010 by admin.

I had what my wife calls a ‘doggy dream’ last night.

*     *     *

I was one of about 200 well-dressed people, mostly men, who were somehow associated with the Federal Reserve.  We had gathered in what looked to be a very utilitarian dining room: concrete floors and folding tables.

We sat in anticipation of the feast, which was brought out by a group of Chinese waiters: plastic platters of green money.  The smaller platters had perhaps two dozen bills, but other platters had big wads of $50, $100, and even $1000 bills.  There was no fighting over who got which platter, as we all had the sense that we would get our share.

And we all understood that intent was not to eat the money, but to take it home and spend it.

*     *     *

When I told my wife the dream, she thought it meant that I would one day be very rich.

More practically, I think it came from the news reports that I’ve been reading that suggest that the Federal Reserve Bank may embark on a second round of ‘quantitative easing:’ ‘buying’ up assets without regard to their real value in an effort to inject money into the economy, stimulating it.

It’s been discussed in the press as ‘QE2,’ evoking memories of the recently-retired ocean liner Queen Elizabeth 2.   I’m not sure why, other than that the image is vaguely charming.

I guess if you’re on Wall Street, it seems wonderful, but for those of us who have to earn a real living, it’s not so great.  The first round of quantitative easing boosted the stock market, and stabilized real estate prices, but didn’t resolve itself into productive activity and jobs in this country.

Alas, the rot continues….

Posted in Money | No Comments »

14. October 2010 by admin.

I spent part of the day yesterday transfixed by the spectacle of the Chilean mine rescue, in which 33 miners were rescued after being isolated in a mine chamber for 70 days following a collapse.  It was uplifting to see happy news unfolding live, as each miner was brought to the surface, to be greeted by his loved ones.  Congratulations to all, not least the American firm that drilled the rescue hole, and best wishes to the miners, who face perhaps a more difficult challenge now that they have become instant celebrities.

I was going to stop there, and resist the impulse to say something snarky about the event, until I saw the front pages of today’s newspapers:

So all that really matters to us, apparently, was that one of these guys was cheating on his wife.

Posted in Occupational Danger, Chile, Media, Life Goes On | No Comments »

9. October 2010 by admin.

Yesterday morning, the US Department of Labor released the monthly unemployment statistics.  The figures were anemic, with an overall loss of 95,000 jobs and the official unemployment rate holding steady at 9.6%.  The stock market rejoiced, with the Dow Jones Industrials closing above 11,000.

On the surface, it seems strange: the employment figures don’t seem to suggest a recovery in progress.  Maybe investors actually want to see high unemployment, but the figures aren’t bad enough to suggest that either.

But the reason the stock market went up seems to have very little to do with the unemployment rate itself: the thought is that the Federal Reserve will make more money available to stimulate the economy.

So we’re all excited because of the new flow of funny money, so that investors can play their silly games.  If the money went for something productive, I might feel differently about it, but it seems to accomplish exactly nothing.  Yes, investors will be happy and the stock market will go up, but don’t expect it to resolve into anything so mundane as actual jobs for Americans.

Posted in Money | No Comments »

8. October 2010 by admin.

One of my earliest memories of midtown Manhattan as a little boy, besides obvious things like the Empire State Building, was the glass bank building at Fifth Avenue and 43rd Street.  I most keenly remembered the safe deposit vault at street level, that used to be opened during business hours.

As I grew up, it remained in my mind as the essential image of what a bank ought to be.  When I was a young man, it was a Manufacturers Hanover, which got swallowed by Chemical, which then got swallowed by Chase.  The ATM lobby was added as the machines came into use.  I don’t remember exactly when they stopped opening the vault during business hours, but it hasn’t been opened in a while.

It was pretty clear that the sleek, modern bank building had become an anachronism: a horrific waste of value to have a four-story building in midtown Manhattan.  It became clear that the end was near when Chase set up a new branch in an office building one block north.

Today was the last business day at the glass bank.  I don’t know what will happen next: perhaps some other bank will set up there, but I rather doubt it.

Posted in New York City, Life Goes On, Money | No Comments »