Dear Bank Manager,
Walking past the crossing guard this morning he hailed me with: “Ah! The man with the money!” Naturally I responded (as any good citizen would) with: “Ha! Yeh, right! When I have some extra cash I’ll give you some!” We are always exchanging quips but this one, I must admit, left me somewhat stunned. As I walked away it occurred to me that both of us knew this to be a joke. Money? Who has money these days? The idea of it is almost quaint! Which brings me to a pertinent question: Why don’t I have any money? You could as well apply it to yourself I’m sure…well maybe not you but perhaps someone you know…unless you are in the top one per cent of earners in which case this just doesn’t apply. For them what I write here is written in some kind of Alien language that simply does not compute.
We can breath again. They’ve gone.
Seriously though—I work, my wife works, our children make mud bricks in the back yard for board and lodging, we are even frugal in a middle-class-sort-of-frugal-way. One major reason for this would be the confirmed fact that real wages have pretty much been locked in since the seventies whilst the cost of living has skyrocketed, expanded much like a party balloon—oh my gosh! What an analogy! Like…like…like a balloon that is about to pop! Then, as soon as one has built up any savings a vulture comes down and eats them all up. This has happened to us a lot lately—flooding in the basement, two cars on the fritz and needing major repairs two weeks in a row to the point of do we keep them going or roll them in to another less old clunker. Is it better to stay with the devil you know or exchange him for one your car mechanic claims to know, if distantly. Then anxiety sends us to the doctor with back complaints and nasty scalp conditions that our health insurance (we are SO LUCKY to have health insurance) all of a sudden deems a pre-existing condition, or not covered in the small print, or covered but yet to be met by our various deductibles. By this point the hair is so easy to tear out.
I’d feel no pity whatsoever for said plight if I was homeless or jobless, or without health insurance. I’d probably feel the same way if I was a wealthy—how can I put this delicately—Republican. I’d probably scoff. I’d say: Well what do you expect you lazy, liberal, socialist, bohemian, HOBOhemian whiner—a hand out? I’d say it with gusto too! Funny that—you can imagine the very same words coming out of the mouths of the most disenfranchised in this our—society. Now there’s a party of possibilities, an alliance. If I were you I’d have stopped reading by now. They are right! Why should the banks undermine their profit motives to prop up individuals like my ignoble self who wish to be freed up from financial anxieties so they can daub with paint on canvas all day, or write their silly letters—or cut sharks in half (down to size so to speak). And why should the government get involved? They are already way over extended. Like the banks they have financial anxieties of their own. However I do feel compelled to point out that I remain in my ignobility, a good citizen. I pay my taxes toward the dubious common good. I keep paying the interest on my mortgage and credit cards and ever so occasionally pay something toward principal. Now if only you’d stop asking for all that exorbitant interest and let me pay down my principal we could all get back on track. Better that than me, and millions of others in the same boat, from defaulting. I do sometimes feel that if I take one step too many backwards I’ll fall into the biggest hole and the only option will be to walk away from it all. That isn’t an option anybody would choose lightly. Strangely though it is almost comforting to imagine the silver lining around the black, black cloud that has been hanging over one’s head—the loss of all that Sisyphean debt.
Yours sincerely,
K. Witherkay
PS—As a good-for-nothing laz-a-bout I’m thinking of making these letters into big paintings and then persuading corporate art collections to buy them. I really should do that. I will.
PPS—I asked my seven year old to draw a lazy monster AKA a lazy middle class bohemian monster like me, not that I tried to explain. The somewhat phallic nature of the drawing is, I assure you, unintentional.
Monday, September 28, 2009
Friday, September 25, 2009
Financing Art
Anthony Haden Guest on the art bridge finance group
It was two years ago that Kristina McLean, a Canadian-born financial analyst in her early 20s, left Morgan Stanley in order to enter the art world. This was when bankers were surfing a wave that seemed as if it was going to crest forever and McLean's peers thought she was crazy. "It's not looking so crazy now at all," she says. "And I'm happy that I did it when I did it."
It happened that McLean was still at Morgan Stanley when we first met. She had contacted me to suggest I take a look at a high-profile art fund, Fernwood Art Investments. Fernwood, which was the creation of a certain Bruce Taub, which had some savvy pros on board, and had been the subject of a 2004 Harvard Business School study, 'Fernwood Art Investments: Leading in an Imperfect Marketplace'.
McLean had visited Taub in his Manhattan office. The picture he painted was rosy, rosy, rosy. But by the time she and I spoke Taub had run through the money and the fund was a smoking crater above which legal clouds were gathering.
McLean then moved to London. And, considering her close scrutiny of Fernwood, it is interesting that McLean is now herself sallying off into the Imperfect Marketplace by launching an art fund of her own. It's called the Art Bridge Finance Group, and is funded by a group of private investors. Saturday October 18 was the day of its public outing at Frieze. McLean hired a Routemaster double decker bus to take a mix of collectors, curators and press on a tour of young and emerging galleries, during which time - for any travellers who felt hopelessly art-starved during Frieze Week - Performance art took place on both decks.
Actually this tour might stand as a live demo of the contrarian nature of McLean's fledgling fund. Her research has indicated that there are some fifty funds worldwide, all of which buy and sell artworks and a few of which short Sotheby's - Christie's not being publicly held - or what they perceive as art-related stocks as a kind of hedge.
McLean's thinking is quite different. The Art Bridge Finance Group won't be cutting out dealers by buying art and squirreling it away. The fund will be investing in cutting-edge mostly young galleries. "What I am doing is I'm giving them a bridge loan," she told me some months ago. "The loan is to enable the gallery to buy art from their artists and to fund their projects. It used to be that you would find an underknown artist, usually young, buy in and wait for them to rocket to the skies. You can't wait. You have to actively do something. That's what I think. A good way of doing that is aligning yourself with the right gallery."
What McLean is trying here is more radical than it may at first sound. It's a counter-attack against the blue chip, often multi-national mega-gallerists that have been vastly increasing their power in the art world and which tend to use the smaller galleries as so many fish farms, pools from which they can snatch attractive prospects at their leisure.
"The smaller galleries are pushing the artist into that first group show ... maybe a first solo show ... maybe a tiny museum show somewhere. And then suddenly they get poached by these bigger galleries," McLean says. "So instead of helping galleries where I could just give them cash, if I help the younger galleries I can add a lot more value than just money. In the early stage it's developing goodwill with the gallery. And working on smaller projects in order to establish relationships. Which might only become fruitful for me, investment-wise, in a couple of years. I'm going to leave the expertise in the hands of people who really know what they are doing. And the people who are adding value. And that, ultimately, is the gallery. And I think that, coming from a finance perspective, where everything is about adding value, and activist investing, and things like that, I think that I can add most value to younger emerging galleries."
This value will include access to the collectors and institutions that McLean has cultivated. And she plans to target them precisely. "I'll do extensive research to develop a sense of who the client base is. Are they willing to pay what the work will end up costing? And all these things. And then I will do special arrangements with them. I can transfer the money directly to the artist. Through the gallery."
This is not, of course, a cultural equivalent of pro bono. If the Art Bridge Finance Group puts up the capital for an entire project, they will expect half the profits, if any. Otherwise, she will work things out on a case by case basis.
And - as with any art funds - everything will depend on the eye of Kristina McLean and whomsoever else is working with her. "I try to pick from each gallery artists who I think are liquid." Which is to say artists that she thinks are likely to sell. Which is also to say the most poachable. Which is, of course, where the fund comes in. "The gallery that can write a cheque in the studio is the gallery who ultimately ends up winning. So I guess I have to pick the galleries who I think deserve that," she says.
This conversation, I should say, was before the tsunami took down the banking system, so as Frieze week opened I called McLean to ask whether she had come through all this turbulence unscathed?
"Yeah, totally! Absolutely!" she said buoyantly. "Now that so many traditional backers are becoming scared of backing galleries I think maybe I have even more opportunities."
And if things do flatten?
"A rising tide lifts all ships," she says. "But as soon as the market kind of corrects itself the galleries that really do have talent will be the ones that remain. And the galleries that don't will fall by the wayside."
Anthony Haden-Guest
It was two years ago that Kristina McLean, a Canadian-born financial analyst in her early 20s, left Morgan Stanley in order to enter the art world. This was when bankers were surfing a wave that seemed as if it was going to crest forever and McLean's peers thought she was crazy. "It's not looking so crazy now at all," she says. "And I'm happy that I did it when I did it."
It happened that McLean was still at Morgan Stanley when we first met. She had contacted me to suggest I take a look at a high-profile art fund, Fernwood Art Investments. Fernwood, which was the creation of a certain Bruce Taub, which had some savvy pros on board, and had been the subject of a 2004 Harvard Business School study, 'Fernwood Art Investments: Leading in an Imperfect Marketplace'.
McLean had visited Taub in his Manhattan office. The picture he painted was rosy, rosy, rosy. But by the time she and I spoke Taub had run through the money and the fund was a smoking crater above which legal clouds were gathering.
McLean then moved to London. And, considering her close scrutiny of Fernwood, it is interesting that McLean is now herself sallying off into the Imperfect Marketplace by launching an art fund of her own. It's called the Art Bridge Finance Group, and is funded by a group of private investors. Saturday October 18 was the day of its public outing at Frieze. McLean hired a Routemaster double decker bus to take a mix of collectors, curators and press on a tour of young and emerging galleries, during which time - for any travellers who felt hopelessly art-starved during Frieze Week - Performance art took place on both decks.
Actually this tour might stand as a live demo of the contrarian nature of McLean's fledgling fund. Her research has indicated that there are some fifty funds worldwide, all of which buy and sell artworks and a few of which short Sotheby's - Christie's not being publicly held - or what they perceive as art-related stocks as a kind of hedge.
McLean's thinking is quite different. The Art Bridge Finance Group won't be cutting out dealers by buying art and squirreling it away. The fund will be investing in cutting-edge mostly young galleries. "What I am doing is I'm giving them a bridge loan," she told me some months ago. "The loan is to enable the gallery to buy art from their artists and to fund their projects. It used to be that you would find an underknown artist, usually young, buy in and wait for them to rocket to the skies. You can't wait. You have to actively do something. That's what I think. A good way of doing that is aligning yourself with the right gallery."
What McLean is trying here is more radical than it may at first sound. It's a counter-attack against the blue chip, often multi-national mega-gallerists that have been vastly increasing their power in the art world and which tend to use the smaller galleries as so many fish farms, pools from which they can snatch attractive prospects at their leisure.
"The smaller galleries are pushing the artist into that first group show ... maybe a first solo show ... maybe a tiny museum show somewhere. And then suddenly they get poached by these bigger galleries," McLean says. "So instead of helping galleries where I could just give them cash, if I help the younger galleries I can add a lot more value than just money. In the early stage it's developing goodwill with the gallery. And working on smaller projects in order to establish relationships. Which might only become fruitful for me, investment-wise, in a couple of years. I'm going to leave the expertise in the hands of people who really know what they are doing. And the people who are adding value. And that, ultimately, is the gallery. And I think that, coming from a finance perspective, where everything is about adding value, and activist investing, and things like that, I think that I can add most value to younger emerging galleries."
This value will include access to the collectors and institutions that McLean has cultivated. And she plans to target them precisely. "I'll do extensive research to develop a sense of who the client base is. Are they willing to pay what the work will end up costing? And all these things. And then I will do special arrangements with them. I can transfer the money directly to the artist. Through the gallery."
This is not, of course, a cultural equivalent of pro bono. If the Art Bridge Finance Group puts up the capital for an entire project, they will expect half the profits, if any. Otherwise, she will work things out on a case by case basis.
And - as with any art funds - everything will depend on the eye of Kristina McLean and whomsoever else is working with her. "I try to pick from each gallery artists who I think are liquid." Which is to say artists that she thinks are likely to sell. Which is also to say the most poachable. Which is, of course, where the fund comes in. "The gallery that can write a cheque in the studio is the gallery who ultimately ends up winning. So I guess I have to pick the galleries who I think deserve that," she says.
This conversation, I should say, was before the tsunami took down the banking system, so as Frieze week opened I called McLean to ask whether she had come through all this turbulence unscathed?
"Yeah, totally! Absolutely!" she said buoyantly. "Now that so many traditional backers are becoming scared of backing galleries I think maybe I have even more opportunities."
And if things do flatten?
"A rising tide lifts all ships," she says. "But as soon as the market kind of corrects itself the galleries that really do have talent will be the ones that remain. And the galleries that don't will fall by the wayside."
Anthony Haden-Guest
Wednesday, September 23, 2009
Financial Crisis-a definition
Financial Crisis-
1. Being monetarily in a bind.
2. Being in a state of fiscal paralysis.
3. Something most people suffer through for the bulk of their lives.
4. Something banks encounter (and only suffer-ever so briefly) once in a blue moon. Latest example: Sept 2008-June 2009.
Sunday, September 20, 2009
Friday, September 18, 2009
Financial Advice From a Numerically Dyslexic Artist-2
Ever with an eye for the main chance my latest advice for fiscally embarrassed artists everywhere:
Make Art! Why? Because, and I know we all forget this at times, Art is worth more than money. Hope this was helpful.
Make Art! Why? Because, and I know we all forget this at times, Art is worth more than money. Hope this was helpful.
Wednesday, September 16, 2009
Letter to the Bank #35
Dear Banker,
(Knocks on screen of video camera) Helloooo? Anybody there…? (Pauses)
I’ll take a deep breath and start over. I'm not being sarcastic. I really do not know. But assuming there is...here goes.
Do you remember a while back when I promised, however angry I might feel, to remain civil at all times? I wouldn’t swear or use foul language. I wouldn’t call anybody names and I wouldn’t threaten to bomb, burn or generally take out my frustrations on any of your fine institutions—the latter more because I do cherish my freedom and the authorities are so sensitive these days they cannot distinguish between literal and metaphorical, real and imagined. Luckily for them and for me I, like our dear president, do believe in civil discourse. I would never shout: “You lie!” or “You cheat!” across the aisle. I might instead say: “You are a bit blinkered”, or: “I find you lacking on the imagination front,” or “You aren’t very good at stepping into other people’s shoes are you?” and so employ the brilliant art of English understatement, i.e. I'd take the passive aggressive approach. I roll up my sleeves and dribble instead of spitting. I studied semi-idiotics in school. That is to say: I went to Art School, which brings me to my point, my present point of being in perpetual dire straights (in the middle class sense of dire straights if you get my drift). Who in their right mind goes to Art School? A middle-class, born with a regularly dish-washed spoon in his mouth, kid—that’s who. My parents did all they could to discourage me. They threw logs in my path, moved refrigerators in front of the bedroom door which took a huge amount of effort given my bedroom was on the second floor. They didn’t do so to discourage aspirations so much as to point out how aspirations and earning a living can (and in my case) prove to be quite at odds. That said I love to make art. Oh, boy! Don't I just! Trouble is I can’t, not with infinite bills to pay from an ever-emptying account. It’s problematic.
To your mind I’m sure the effort I put into trying to keep old obsessions alive and, in the case of my children, nurture new ones is, to say the least, counter productive. My son for example has just embarked on a search for a bawu, a kind of Chinese flute. Should I say: You concentrate on your schoolwork young man, and stop wasting my time! I know you think I really need to teach them, preferably by example, how to make a living in this ever changing economy, and, dammit (oops!) You are probably right.
Yours sincerely,
K. Witherkay
PS—Why are artists poor? There is a book by the same name. I haven’t read it yet but just might if I can get my hands on a copy. I'm guessing one problem is they are idealists and despite having no money keep giving the money they don't have to charities and good liberal causes like NPR. I'm curious about what artists of the other extreme give their money to— the NRA? That is fine I suppose as long as they don't have the money.
Tuesday, September 15, 2009
Bubble Watch
Here begins an informal survey of the economic bubbles that have occurred, will occur, might occur, and the predictions prescient or not concerning such.
Nobody yet is talking about the credit offers that were made so easily to so many young people (who had yet to develop credit profiles) as soon as they were of age. I wonder how many of them see such credit as a birth right and continue to spend up their credit cards for all the things they need even as the system barks in alarm? I work in a part of the city where consumers continue consuming like there is no tomorrow. Are young credit cards a potential bubble?
Bubbles are no joke. If any of you have ever watched The Prisoner you know what I mean.
Letter to the bank #34
Dear Mr. Bank Manager,
I am taking up a formal tone this morning as I have a formal proposition to make and for once it is entirely altruistic. I'm not asking you to buy my art, or bullying you with interest charges for art you have yet to return to me. I am not asking you to accept as collateral my old washing machine either. No. My suggestion is this: Now that you have been bailed out and are now rolling in it again perhaps you could now bail out the states that are unable to meet this year's budget obligations (see below). Think how swimmingly things would go if these states were not in such a bind. Make it a one time gift. Perhaps each bank could choose a state as a pet project, or a pen pal. Such an altruistic act on your part would only enhance your image and the money spent, considering the banks are no longer in the current recession, would barely make a dent in your expenditures. You know what? I even feel good just for having suggested this!
Yours sincerely,
Kristian Witherkay
Monday, September 14, 2009
Financial Advice From a Numerically Dyslexic Artist-1
Don't buy anything but necessities.
Barter when possible.
To satisfy those consumerist urges attend yard sales, car boot sales. stoop sales and Estate Sales. Make sure you buy at least one thing pertaining to your passionate interests...then pass it on.
The Remorseful Banker
Has the time of the Remorseful Banker come? No. Quite simply: No. It'll never happen. Be nice though.
Friday, September 11, 2009
The Art of Finance
The Art of Finance by Harold James
Project Syndicate
Excerpt:
"...Some modern artists and their patrons explicitly point to the parallel between contemporary art and new financial products. Deutsche Bank, Europe’s most prominent art-collecting bank, published the view of academic experts to the effect that customers, the broad public, were “extremely conservative, boring, lack imagination, and don’t know their own minds.”
After financial implosions, such as the collapse of the dot-com bubble in 2000 or the sub-prime meltdown of 2007-8, such views appear arrogant. The parallel between bewildering and apparently meaningless art and unintelligible financial products is damning rather than reassuring."
Project Syndicate
Excerpt:
"...Some modern artists and their patrons explicitly point to the parallel between contemporary art and new financial products. Deutsche Bank, Europe’s most prominent art-collecting bank, published the view of academic experts to the effect that customers, the broad public, were “extremely conservative, boring, lack imagination, and don’t know their own minds.”
After financial implosions, such as the collapse of the dot-com bubble in 2000 or the sub-prime meltdown of 2007-8, such views appear arrogant. The parallel between bewildering and apparently meaningless art and unintelligible financial products is damning rather than reassuring."
Letter to the FA 1
I wanted to share this wonderful poem with you. It is a DADA or MERZ poem by Kurt Schwitters, non-sensical to some ears but to others it is language at its purest. I'd dare to compare it to the linguistic acrobatics of, and poetical license taken by, the banking industry and the financial sector in general.
Take a moment to listen to my rendition of the Jabberwock by Lewis Carroll. (Poem to come) If you imagine the Jabberwock as, for example, the Banks, or as credit card offers even, you can quickly see how Art can aid in deconstructing the language of money. In a further audio sample I read my own recent poem, Structured Investment Vehicles, a poem of which I am very proud. (Poem to come). Somehow I feel it will bring me ever closer to the financial advisors who are so dilligently working on my mounting debts as we speak. Please enjoy.
Yours sincerely,
Kristian (with a "K").
PS—You know what? I'm giving myself a new last name—poetic license and all—Kristian Witherkay. I think it has a dignified ring.
Take a moment to listen to my rendition of the Jabberwock by Lewis Carroll. (Poem to come) If you imagine the Jabberwock as, for example, the Banks, or as credit card offers even, you can quickly see how Art can aid in deconstructing the language of money. In a further audio sample I read my own recent poem, Structured Investment Vehicles, a poem of which I am very proud. (Poem to come). Somehow I feel it will bring me ever closer to the financial advisors who are so dilligently working on my mounting debts as we speak. Please enjoy.
Yours sincerely,
Kristian (with a "K").
PS—You know what? I'm giving myself a new last name—poetic license and all—Kristian Witherkay. I think it has a dignified ring.
Wednesday, September 9, 2009
Letter to the Bank #33
Dear BM,
I’m suddenly discovering a world of people out there who appear to be making money…ethically! Not only are they making money but they are also donating money to micro-loan enterprises like Kiva and the Grameen Bank. I’m thrilled to hear it. I’m simplistic enough to assume if money is being made it is at someone else's expense—just about always—shame on me. Well I now stand corrected thanks to folks like those at millionairemommynextdoor
You of course I trust. YOU are my trusted bank manager. I have to trust you. I cannot not trust you! You must understand this. My god! Where would I be if I couldn’t trust my very own bank manager? Perhaps you don’t exist but I have to believe you do. Do you understand? That, after all, is what all these letters are about. I’m willing you into existence. I’m making you happen. I’m laying the groundwork for your materialization. I am like Doctor Frankenstein. If I put all the right ingredients in the bucket and stir I’ll finally have the ethically responsible, smart, considerate, likeable, financially astute bank manager that I have always dreamed of, the one I imagine remembering from my childhood, the one who offered me a lollipop with a kindly smile as my father sat down in a plush red leather chair with brass rivets to talk with him, his trusted financial advisor, an advisor who, only in later years, morphed into a dull computer screen.
Perhaps with my new found faith in the possibility that money can be made without supporting sweatshops, or dictatorships, can be made without treading on the fingers of those below you on the vicious ladder of life (delightful alliteration), I can now consider the possibility of making this, my forum, into some kind of money making concern. Perhaps I too can dare to make money, print it off as and when needed? I can promise you this: My letters will remain reasonably literate, devoid of foul language or adult content (I promise to keep it childish), and free of slander or direct attacks on individuals. I am much more interested in philosophizing around issues of ethics, than pointing my finger directly at certain unscrupulous individuals who have contributed more than their fair share to our collective, current and dire state of affairs.
Yours sincerely,
Kristian C
Tuesday, September 8, 2009
Letter to the Bank #32
Dear Mr. Banks,
I still hang on to the belief that you have my best interests at heart and that is why I insist on treating you as an individual, a tangible human being made of flesh and blood. This is why I continue to anthropomorphize you. You are, as it were, what I decide you are. On a good day you are kind and considerate. I can hear it in your voice and can imagine your look of warm concern. Your rotund figure is one day flabby and covered in old fashioned bling, a fob watch folded into your rippling pin stripped waistcoat as you puff on your cigar and address my deepest concerns. You ask after my family and I ask after yours. You live in a house not far from mine and socialize with the grocer, the taylor, the bike shop owner and, occasionally, me.
I know I am a deluded being.
You thinks I fantasize too much but I am capable of keeping it real. I’ve dipped into books like Liar’s Poker and seen the gleam in your collective eye. Lately I’ve begun a List of Ignominy. Here is how it begins:
Bankers,
Accountants,
Bookkeepers,
Traders,
Car manufacturers,
Insurance executives,
Realtors,
Mortgage adjusters...
...you get the idea. Believe me Artists and Homeowners are on the list somewhere. I just didn’t get to them yet and the above does not reflect, necessarily, the order of ignominy. This is the problem. Everyone goes on the list, EVERYONE! We’re ALL either stupid or greedy, or evil or naive or all of the above.
Sometimes the being I imagine behind that polished wooden desk at the bank as I pine for something that probably never was, is a therapist. That is fine but really, dull as it seems, all I crave is genuine financial advice.
If you grow my assets I’ll grow yours. Creepy as it sounds doesn’t that make fundamental sense? Instead I all too often feel as if you are taking advantage of me. What you look like then in my imagination would take up too much of my time just now and time is, as you have always taught me, MONEY. Honestly I do not have the time to write you these letters as they do not earn me a dime. I do have to ask myself: Is this time well spent?
Sincerely,
KC
PS—I do have some assets. One is my inclination to remain polite even when most tried. As angry as I ever get I remain inclined to leaving the doors open for further (totally imagined) dialogue.
Arts, Briefly - Leibovitz Faces Suit and Loan Deadline - NYTimes.com
Arts, Briefly - Leibovitz Faces Suit and Loan Deadline - NYTimes.com
Annie Leibovitz, a great photographer and artist, is facing bankruptcy and the loss of rights to her output.
In Cheap We Trust and Cheap: The High Cost of Discount Culture
The paradox of thrift? Surely the paradox lies in being encouraged to spend what we do not have, virtual, abstract, not quite believable, real, or tangible money, assets, or coinage—coinage you cannot feel...
Two recent publications have caught my much cauliflowered ear and soothed them somewhat their rational takes on consumerism acting like balm to an auditory system much battered by insane economic advice, and irrational forecasts that see us all rising up out of the ashes of a recession that was never publicly defined as a depression and puffing hard to inflate another lie of a bubble, or two, or three. I’ve heard the authors talking on NPR and WNYC and was overjoyed to hear their clear and succinct telling of the true stories behind the outlet malls, super malls, buying American, bargain hunting, free offers, and how we all continually are being encouraged to spend and rack up further debt:
In Cheap We Trust Lauren Weber examines the cultural history of thriftiness
and in Cheap: The High Cost of Discount Culture, Ellen Ruppel Shell traces “our national obsession with the bargain from the Industrial Revolution to the modern assembly line, and from chain stores to big-box retailers who value convenience and low-prices over quality”. (WNYC web page). Click on Author names to see their interviews with Leonard Lopate on WNYC
Sunday, September 6, 2009
Letter to the Bank #31
Dear BM,
I’m kind of on a roll—so many ideas! I’ve decided that these letters I’ve been writing have a certain je ne sais quoi. I do hope I’ve spelt that right. Unlike you guys I am not a linguistic acrobat. Anyway this leads me to my next point. Despite the dearth of responses to my letters from your otherwise (I am sure) amicable self I am considering trying to “monetize” my letters, my blog. I am not quite sure how it works. You’re the financial wizard, not me! What I do know is this: If I press a certain button (in the guts of my blog) people will (I should say might) start advertising their products on The Bouncy Banker. Wouldn't that be nice! Wouldn’t it be funny if I started making money from the very financial institutions I am critiquing, gently poking fun at, lampooning, mocking, trying very hard to ridicule and shame, acting like a little David trying with his pen, his sharpened computer mouse, to bring down the Methuselahs of Finance,(they’ve all been around for ever haven't they and will be forever more so what do I think I am doing? Getting my diminutive ire off my hairless chest?), the Goliaths of Insurance, the Rasputins of the Mortgage industry (a peg or two), trying to shame or at least spotlight, shine a torch on, the immoral, unscrupulous, heartless, unthinking, soulless practices that have brought the world to its very knees. Of course I do this in the spirit of one who cannot absolve himself of his own failed responsibilities, one who saw dollars in the cracked foundations of his own home. I am not quite ready to press that button yet. Thing is this is a lot of work and it would be nice to get paid especially as the kids are in dire need of new lunch boxes. But the question remains: Is it moral to make money from a, some might say, rather angry blog? That is my problem right there: I have scruples.
Yours sincerely,
KC
PS—Maybe this letters does demonstrate a certain flair for, as I put it, linguistic acrobatics, though nothing in it is half as good as “structured investment vehicles”. That is gorgeous. I could say it again and again. In fact I think I will…
PPs—I just really liked these pictures of Methuselah Trees. I'd never heard of them before but are they not striking? Striking is good, right?
Letter to the Bank #30
Dear BM,
You are so elusive. We’ve been working together for years and yet I still do not have a sense of what you look like. I’ve asked before and now ask again: can we get together for a drink some time, or are you still mad at me for piling up all my possessions outside your bank? I did this on good faith to try and fulfill, honor, my collateralized debt obligations! Anyway I didn’t mean to bring up a sore point. Let us let bygones be bygones. Let us rekindle our relationship once more and try and give it a little more personal zap.
You know how you hear voices on the radio and begin to imagine the faces behind those voices? I find myself receiving your bank statements (I have not seen any of your more personalized letters in I don’t know how long) and picturing you. I’ll try to bang out some portraits, quick paintings that capture how I see you in my imagination. It’ll be fun.
Yours sincerely,
KC
PS—Here is another of those mortgage offers. What do you think? Should I go for it? I tried Googleing info about the company and discovered they and HUD are not one and the same. Indeed they’d received a couple of highly negative reviews. I guess I just answered my own question. Maybe I should have more faith in my own expertise and also trust those gut feelings.
You are so elusive. We’ve been working together for years and yet I still do not have a sense of what you look like. I’ve asked before and now ask again: can we get together for a drink some time, or are you still mad at me for piling up all my possessions outside your bank? I did this on good faith to try and fulfill, honor, my collateralized debt obligations! Anyway I didn’t mean to bring up a sore point. Let us let bygones be bygones. Let us rekindle our relationship once more and try and give it a little more personal zap.
You know how you hear voices on the radio and begin to imagine the faces behind those voices? I find myself receiving your bank statements (I have not seen any of your more personalized letters in I don’t know how long) and picturing you. I’ll try to bang out some portraits, quick paintings that capture how I see you in my imagination. It’ll be fun.
Yours sincerely,
KC
PS—Here is another of those mortgage offers. What do you think? Should I go for it? I tried Googleing info about the company and discovered they and HUD are not one and the same. Indeed they’d received a couple of highly negative reviews. I guess I just answered my own question. Maybe I should have more faith in my own expertise and also trust those gut feelings.
Letter to the Bank #29
Dear BM,
You guys are Alchemical geniuses! Wow! Buying up and packaging life insurance policies sold by ill and elderly people sounds like a brilliant idea—a little sinister—but brilliant. The sooner they die the better…right? I’ve yet to see a name for this and you know how much I enjoy the names you come up with for your phantom products. I wonder if the tailors who made the invisible clothes for that gullible king had a name for their product?
I’ve just come across the term re-remics. Who came up with that? I’ve said it before and I’ll say it again—you guys are linguistic acrobats. That said re-remics is a bit cumbersome—not poetic in the least though better, I suppose, than re-securitization of real estate mortgage investment conduits, though if you say that very fast it kind of trips off the tongue quite nicely. What does it mean? Still it is good to hear that new exotic investments are emerging on Wall Street once more. I miss the more fantastic terminologies you all come up with. Among my favorites are: structured investment vehicles, collateralized debt obligations and, of course, credit-default swaps. Swapping, bartering, these are things we can all relate to. I recently exchanged a couple of books of John Berger’s brilliant essays on Art and Culture for a train ticket. My daily commute gets so expensive but enough of me.
You all keep up the good work.
Sincerely,
KC
PS—Remember you don’t have much time left before the government begins to crimp your natural style, your laissez faire attitude, with increased financial regulation. You should hire some out of work English teachers to help you with the wording.
PSS—I enclose an offer to reduce my mortgage payments. As my most trusted financial advisor what do you think? Is it legit?
You guys are Alchemical geniuses! Wow! Buying up and packaging life insurance policies sold by ill and elderly people sounds like a brilliant idea—a little sinister—but brilliant. The sooner they die the better…right? I’ve yet to see a name for this and you know how much I enjoy the names you come up with for your phantom products. I wonder if the tailors who made the invisible clothes for that gullible king had a name for their product?
I’ve just come across the term re-remics. Who came up with that? I’ve said it before and I’ll say it again—you guys are linguistic acrobats. That said re-remics is a bit cumbersome—not poetic in the least though better, I suppose, than re-securitization of real estate mortgage investment conduits, though if you say that very fast it kind of trips off the tongue quite nicely. What does it mean? Still it is good to hear that new exotic investments are emerging on Wall Street once more. I miss the more fantastic terminologies you all come up with. Among my favorites are: structured investment vehicles, collateralized debt obligations and, of course, credit-default swaps. Swapping, bartering, these are things we can all relate to. I recently exchanged a couple of books of John Berger’s brilliant essays on Art and Culture for a train ticket. My daily commute gets so expensive but enough of me.
You all keep up the good work.
Sincerely,
KC
PS—Remember you don’t have much time left before the government begins to crimp your natural style, your laissez faire attitude, with increased financial regulation. You should hire some out of work English teachers to help you with the wording.
PSS—I enclose an offer to reduce my mortgage payments. As my most trusted financial advisor what do you think? Is it legit?
Friday, September 4, 2009
Deconstructing Financial Jargon and Legalese (an introduction)
The following definition of Deconstruction comes from Wikipedia:
Deconstruction is the name given by French philosopher Jacques Derrida to an approach (whether in philosophy, literary analysis, or in other fields) which rigorously pursues the meaning of a text to the point of undoing the oppositions on which it is apparently founded, and to the point of showing that those foundations are irreducibly complex, unstable or impossible.
Deconstruction generally operates by conducting textual readings with a view to demonstrate that the text is not a discrete whole, instead containing several irreconcilable, contradictory meanings. This process ostensibly shows that any text has more than one interpretation; that the text itself links these interpretations inextricably; that the incompatibility of these interpretations is irreducible; and thus that interpretative reading cannot go beyond a certain point. Derrida refers to this point as an aporia in the text, and terms deconstructive reading "aporetic." J. Hillis Miller has described deconstruction this way: “Deconstruction is not a dismantling of the structure of a text, but a demonstration that it has already dismantled itself. Its apparently-solid ground is no rock, but thin air."
Here I will attempt to perpetrate a number of deconstructions on the jargon imbedded in the current economy. Given my attention span when it comes to all small print I'll only tackle those terms that hold my interest long enough for me to take them apart (like a kid dismantling a watch or, these days, an ipod or cell phone).
The economic use of language, i.e. attempts to simplify the abstruse terms used in mortgage documents and bank statements can and often does lead to more confusion and misunderstanding and not less, intentionally or not. A lot of the language becomes loaded or leaden and new language is created to brush off and revamp dubious or dusty practices. Some of this language is quite fascinating. More later.
Deconstruction is the name given by French philosopher Jacques Derrida to an approach (whether in philosophy, literary analysis, or in other fields) which rigorously pursues the meaning of a text to the point of undoing the oppositions on which it is apparently founded, and to the point of showing that those foundations are irreducibly complex, unstable or impossible.
Deconstruction generally operates by conducting textual readings with a view to demonstrate that the text is not a discrete whole, instead containing several irreconcilable, contradictory meanings. This process ostensibly shows that any text has more than one interpretation; that the text itself links these interpretations inextricably; that the incompatibility of these interpretations is irreducible; and thus that interpretative reading cannot go beyond a certain point. Derrida refers to this point as an aporia in the text, and terms deconstructive reading "aporetic." J. Hillis Miller has described deconstruction this way: “Deconstruction is not a dismantling of the structure of a text, but a demonstration that it has already dismantled itself. Its apparently-solid ground is no rock, but thin air."
Here I will attempt to perpetrate a number of deconstructions on the jargon imbedded in the current economy. Given my attention span when it comes to all small print I'll only tackle those terms that hold my interest long enough for me to take them apart (like a kid dismantling a watch or, these days, an ipod or cell phone).
The economic use of language, i.e. attempts to simplify the abstruse terms used in mortgage documents and bank statements can and often does lead to more confusion and misunderstanding and not less, intentionally or not. A lot of the language becomes loaded or leaden and new language is created to brush off and revamp dubious or dusty practices. Some of this language is quite fascinating. More later.
Wednesday, September 2, 2009
Letter to the Bank #28
Dear Banksy, and I mean YOU, my personal BM, not that secretive art collective that goes around destroying the facades of fine institutions not dissimilar to yours and calls it Art and Commentary and the like,
I am so excited. Despite none of your guys showing up the potluck confessional was a huge success. For the next one not only will there be a place to go if you want to get some of the terrible underhanded deals you’ve nailed down of late off your chest, but there will also be a photo booth element. You’ll now be able to:
Confess (as mentioned above),
Draw money (quite literally using the crayons and paper provided),
Give away your money to an ever-changing list of charities deemed by yours truly to be worthy recipients,
Vote for your favorite whatever,
AND…
Pose for a photograph as a remorseful engine of Capitalism as opposed to a remorseless one. What a change that will be! I’m asking people to pose as if remorseful but know full well most will scoff at the idea or even be nonplussed by it. Some might even gamely try with ghastly results but it is all to the good. As more and more people are invited to the party—the insurance folks, the traders, and the bookkeepers—this “rogues” gallery will hopefully grow and grow. I believe the inclination to let it all hang out or get things off one’s chest is an almost irresistible one when presented with the opportunity to do so. It is a bit like that Truth and Reconciliation Commission created with the end of Apartheid in South Africa. Not only did the generals and the torturers step forward but so did the humblest of collaborators, the shoemaker, the shopkeeper, who, not thinking of the consequences did partake of, or impart, in most inappropriate fashion, information that, to say the least was flawed. The advice so proffered was all too eagerly taken methinks (as one who is perhaps a case in point). Maybe home owners will soon be standing side by side with the top bank executives as they all hold hands and bow their heads in a collective sigh of shame. Actually the thought of it makes me a touch queasy. Still a little culpability would do us all the world of good.
Anyway do come this time and please bring your friends preferably those in the greatest denial. It will be fun to draw them out and in the end they will appreciate the benefits of group therapy I assure you. Having scruples if you’ve never had them before is quite an experience, a unique “high” if you will.
Until then yours most sincerely,
KC
PS—I almost forgot to add: The booths also have the ability to spit out Coke and the like if you put in the right number of quarters. What the right number is is for you to figure out and if you get it wrong you’ll lose your coins. It is, I suppose, a bit of a gamble. As vending machines go it is more spiteful than most and, if you can believe it, is bitterly opposed to giving out sugary drinks. Come to think of it “it” is an ominous box all in all.
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