My 401(K) Statement Came Postage Due; Is That a Bad Sign?

‘Tis the season; like many folk I’m getting statements in the mail with the bad news about our retirement (I’m guessing that I’m not alone in getting multiple statements: I have a Rollover IRA, Nancy and I both have Roth IRA’s, I have a 401(K) from Vitas and a 403(B) from SDHIPM, and Nancy has a 403(B) from UCSD).

I’m certainly not the only one who’s portfolio is bleeding copious amounts of money, but it is upsetting to see that while we’ve been contributing generously, the value of the funds have gone down. I don’t see either of us retiring for at least another 12 to 15 years and in that sense we’re in good shape. As a matter of fact, this is a good time to buy stocks and I’m confident we’ll look back on this and be happy we stayed the course.

The financial meltdown that we’ve all be watching is troubling because it happened, but also because of the reaction. There’s enough finger pointing to go around, and let me add my two cents: It’s everyone’s fault. It’s not just the greedy investors, it’s not just the politicians who demanded that all this stuff be deregulated, it’s not just the people who lied on their mortgage applications, it’s not just the mortgage brokers to told first time buyers not to worry about the adjustable rates, and it’s not just the buyers who didn’t have a plan if the rates went up. It was all of them.

Now I’ll freely admit that Nancy and I have been lucky: we bought our house in 2001 with a fixed rate and refinanced in 2003 to get a better interest rate. We live in a wonderful house in a wonderful neighborhood that we could only have afforded because Nancy’s father lives with us and owns half the house. BUT we bought what (actually less than) we knew we could afford. I saw the monthly house payment and knew that every month for the next 360 months I would have to have enough money in the bank to write that check and I didn’t sign anything until I was sure I could do it. Not everyone did this.

Now come the recriminations, and I have to say that I have the right to be screaming the loudest. As a taxpayer I’m partly on the hook for a $700,000,000,000 bailout when I did nothing wrong. And yet I support this. There is a quotation I love (but whose source I can’t find) that states: “Not everyone is at fault but everyone is responsible.” In other words, despite the fact that I’ve followed the rules and done what I’m supposed to do, I do feel a responsibility to be part of the solution.

I do believe that we can’t do nothing. For better or for worse our economy depends on the availability of credit and we can’t function without it. To allow this to “take its course” would lead to massive layoffs and unemployment. Both Nancy and I work in healthcare and our jobs would be pretty secure but that’s of little comfort if we see friends who work in retail or service jobs lose everything.

There is no way to talk about this without acknowledging the long shadow of the Presidential campaign. We choose a new leader in 23 days and we must choose wisely. I honestly believe that Senator Obama is better able to deal with this than Senator McCain. He and his supporters (Phil Gramm being the most obvious) have been the architects of the problem. We now need architects of the cure.

Some Days It Doesn't Pay to Think Congress Can Get It Right

I’m writing this as I watch the news about the failure of Congress to approve the $700,000,000,000 bailout plan. This morning it looked like it would narrowly pass but when the votes came in, it was 12 votes short.

Now, of course, both parties are running for cover and looking for ways to blame the other side of the aisle. I’m an unabashed Democrat and I see this through that lens, but the most incredible part of this for me is the Republican spin that some Republicans voted against the measure at the last minute because of Nancy Pelosi’s remarks. Here is the paragraph from the CNN web page:

House Republican leaders blamed Nancy Pelosi, the Democratic Speaker of the House, for the bill’s failure, saying she had scuttled a bipartisan compromise with a “partisan speech” shortly before the vote. Pelosi started her speech by citing “the Bush administration’s failed economic policies — policies built on budgetary recklessness, on an anything-goes mentality with no regulation, no supervision and no discipline in the system.”

You can see Speaker Pelosi’s words here; regardless of what you think of her remarks, it’s hard to imagine that this bill died because Nancy hurt the feelings of the Republicans. By the way, as we listen to the Republicans blaming the Democrats, it’s helpful to note that 95 Democrats voted against the bailout, while 133 Republicans did.

But that’s what we have. Meanwhile, the party that demanded deregulation of the banking industry is doing its best to say nothing is their fault. Whatever happens is going to be of little value to those who lose their jobs and aren’t high enough to have golden parachutes.

Barack, we need you now.

Thoughts on $4.50 per Gallon for Gasoline

In the last few months there’s been a great deal of publicity concerning the high price of oil and other fossil fuels. Maybe I’m treading in dangerous waters as a Prius driver, but it’s hard to see what part of this is surprising.

Since World War II the incidence of private car ownership has skyrocketed; before then you really had to have some wealth to own a car (and during the War there was essentially no production of cars). Also since the 1950s this country has build the greatest network of interstate highways in the world. This combines to make it remarkably easy to drive to nearly any part of our country; for my part I’ve driven cross country 3 times and found I could easily do this in about 5 days.

Additionally plane travel has gone mainstream. From 1937 to 1978 the Civil Aeronautics Board regulated routes, fares, and schedules. There were relatively few airlines and air travel was so expensive that it was reserved only for the wealthy or business travelers. Since then the government stopped regulating air travel; this has led to a dramatic drop in prices and an increase in the number of airlines. Air travel is much more affordable to a much larger population.

These two changes have led to dramatic changes in our lifestyles. We Americans are used to going to Europe or Hawaii on vacation, buying timeshares as a way to see new areas, and move away from family secure in the belief that we can be there in a matter of hours if necessary.

Now that oil, which everyone agrees is a limited and nonrenewable resource, is getting expensive, this may change. We may find in the next few decades that we are going back to being limited in our mobility. We are already seeing the growth of “staycations” instead of vacations (admittedly an easy thing to do in San Diego).

Meanwhile, our President and his cronies, continue to fiddle and count their money. Their solution is to find new places to drill for more oil. The amount of oil they will find is negligible and won’t make much of a difference. The idea of conservation or alternative sources of energy simply aren’t on the table.

This is not a good time to own a Hummer.

Reflections on Holy Thursday and Five Years of War

In the Christian Calendar today is Holy Thursday or Maundy Thursday, depending on your tradition. We Catholics read from the 13th Chapter of John’s Gospel where Jesus washes the feet of his disciples. Tonight at mass Fr. Jairo spoke eloquently about the need for leaders to be in service and not dominate.

Alas, this would have been a good sermon for President Bush to hear. As I reflect back on the 5 years we have been at war in Iraq I grieve for the 3992 of our brave men and women who have died (if you’re keeping track it’s 1675 since this time last year) but I also grieve for what our nation has become. It goes without saying that since the collapse of the Soviet Union nearly 20 years ago the United States stands alone as the world’s largest superpower. But in the last 8 years we have not used that power well. We have not been servants, but tyrants. We have treated our allies as subjects (and are puzzled when they do not cooperate with us). We have treated countries like Iran, North Korea, and others as blights on the world worthy only of destruction. And we have treated ourselves as the only country worthy of respect.

Our next president will have an immense job. He (or she) will have to reach out to our allies and mend fences; will have to reconcile with old enemies and prevent making new ones; will have to understand that science is not the enemy and we really do need to face up to global problems like warming and pollution. Our next president will have to see our economy as part of a larger world economy that ultimately should serve everyone, not just the wealthy.

We swear in a new president in 305 days and that day can’t come fast enough for me.

And the Delegate Winner Is…

I’ve had great fun (right) trying to follow the delegate count in the election. After a fair amount of searching I decided to keep track of the pledged delegates only, knowing that the superdelegates don’t need to make their choice until the convention. I set up a table to show where each candidate was awarded delegates according to state. I also put a link on the left side of the page. I’ll keep keeping track.

John McCain and John Hagee? If You Thought Anti-Catholic Thought Was Gone…

I haven’t posted in a few weeks but I’ve been watching. I’ll have more thoughts on the primaries soon, but tonight I found something that is worth watching. John McCain is the presumptive Republican nominee. I don’t plan to vote for him and while I disagree with many of his positions, I do generally respect him. However he has embraced John Hagee who has preached some incredibly anti-Catholic messages. You can see this on YouTube:

Baseball, Steroids, and the Mitchell Report

It’s been the buzz of the baseball world, but this past week former Senator George Mitchell released his report. It’s an understatement to say that the results are stunning. He did not have subpoena power and couldn’t compel anyone to talk to him and there was the fear that his report wouldn’t reveal much. It did. You can read a list of the players. There were the names of those we expected to be there (Barry Bonds) but there were also players I wasn’t expecting, like Paul LoDuca and Eric Gagne. It appears that many of the players listed were told where to get the steroids from other players.

Aside from the long list of players the other part of this that was so sickening was the implied complicity of management. I was obviously looking for the names of former Padres, but here is what I found with former pitcher Kevin Brown (it’s on page 216). These are notes from an October 2003 meeting of Dodgers officials:

Kevin Brown – getting to the age of nagging injuries . . . Question what kind of medication he takes . . . Effectiveness goes down covering 1st base or running bases. Common in soccer players and are more susceptible if you take meds to increase your muscles – doesn’t increase the attachments. Is he open to adjusting how he takes care of himself? He knows he now needs to do stuff before coming to spring training to be ready. Steroids speculated by GM

Those same notes quote this about pitcher Eric Gagne: “he probably takes medication and tendons and ligaments don’t build up just the muscle.”

There is much more but this gives a flavor. I’m troubled by this because it was clear that not only was there pressure on the players to use steroids, there was also winks and nods from management. There are a few superstars on this list (Bonds, Clemens, etc.) but there are many more “2nd tier” players who used this stuff not for records, but just to make the team. They are competing against those who are cheating and many felt they had no choice if they wanted to stay on a level playing field.

Lots of comparisons are being made to the 1919 Black Sox scandal (this is where 8 players for the Chicago White Sox took bribes to throw the 1919 World Series against the Cincinnati Reds). I hope it’s not that serious; baseball had a very difficult few years and was only popular again with the rise of Babe Ruth. But the sense of betrayal is the same and I can’t help but feel that some of the fan base will simply leave. I won’t be one of them because I still enjoy watching the game and there are still the Tony Gwynn’s and Cal Ripkin’s out there.

Do They Use Designated Hitters in Federal Prison?

We’ve been waiting for this for a long time, but word came out that Barry Bonds has been indicted on 4 counts of perjury and 1 count of obstruction of justice related to his testimony before the grand jury in December of 2003. You can read the text of the indictment here. If you don’t have Adobe Acrobat you have to download the reader to read the document.

It was about that time Barry changed his story from “I never took steroids” to “I never knowingly took steroids. The focus of the grand jury investigation was a company called Balco who Justice lawyers believed provided steroids to a number of athletes. Barry was given immunity so that he couldn’t be prosecuted for anything he told the grand jury (this prevents him from taking the Fifth Amendment) as long as he was truthful to the grand jury. Bonds was asked if he received steriods from Greg Anderson, a friend of Bonds who has an affiliate with Balco. He testified that Anderson administered a cream that Bonds believed was flaxseed oil.

This is all pretty dry stuff, but the bottom line is this: the indictment shows he knowingly took steroids and lied to investigators. Now he faces the possibility of prison time, all because he wanted the home run record enough to cheat. This shows not just a lack of respect for himself but also for baseball. I’ve written on this before on March 9, 2006. By the way Sports Illustrated has a terrific slide show on Barry’s growth chart.

Meanwhile, Barry is a free agent and is looking for a team that will pick him up so he can get 3000 hits in the major leagues. It doesn’t look likely now. Speaking only for myself as a baseball fan, I won’t miss him.

The Diocese of San Diego Wants You (or at least your checkbook)

Last month I wrote a post on the sex abuse settlement with the Catholic Diocese of San Diego. In the negotiations with the victims Bishop Brom stated that the diocese could only afford to pay out $95 million without hurting the mission of the church. The final settlement was for $198 million and the share of the diocese will be about $107 million (the rest will come from insurance) which means that the diocese needs to close a gap of $12 million.

Most other dioceses have closed this gap by selling property or other assets; some have closed parishes. Bishop Brom doesn’t want to do this and appears to have come up with another solution: shake down your people. Last week he sent a memo to all the priests in the diocese; there is a link in an article in the San Diego Union Tribune. He asks all the priests of the diocese to donate a month’s salary to a campaign called “Embracing Our Mission” (though “Saving Our Mission” would probably be more accurate). This is the excerpt from the memo:

Since we cannot ask of others what we are unwilling to do ourselves, the deans [priests who represent a given geographic grouping of priests in the diocese] accepted the recommendation of the Presbyteral Council [a council of priests who advise the bishop] to invite every priest to contribute one month’s salary toward Embracing Our Mission. Retired priests will be asked to contribute according to their means. In this regard, you will soon hear from your dean.

The memo goes on to say that each pastor will receive a packet that they will mail to their parishioners “inviting them to make a generous contribution.”

The astounding part of this isn’t the fact that Bishop Brom is asking for money. Since we, the faithful, are essentially the only source of income for the church he really has nowhere else to go. The idea that the bishop can strongarm his priests in this manner is what astounds me. I, as a layperson, am asked to make a “generous contribution” but am left to myself to decide what it is. I certainly have no intention of donating a month’s salary because, simply put, I have bills to pay. But so do they. The mood of this letter to priests makes it sound like it’s far from a suggestion.

As for me, I doubt we’ll give the “generous contribution” but not for the reason you may think. It’s not a matter of “I didn’t cause the problem and shouldn’t have to pay for it.” I find that excuse a little thin. My primary concern is that the victims be compensated and that’s already taken care of. This “generous contribution” is to reimburse the diocese and I’m not sure that should happen. Bishop Brom (to my mind) doesn’t seem to “get it” in the sense of understanding why we are so upset with him. Perhaps the diocese should go through some penance and this may entail some selling of property. While I certainly want the mission of the church to go on, it should not necessarily be easy for Bishop Brom.

And by the way, Bishop Brom never states he will donate a month of his salary.

Baseball, Competition, and Loss of Perspective

It’s almost hard to know where to start on this but let me start with the incident that got me writing: Milton Bradley. Yesterday he got in a shouting match with the first base umpire, Mike Winters. Both First Base Coach Bobby Meecham and Manager Bud Black needed to restrain him as he appeared to be charging the umpire, which is absolutely never allowed. Milton claims that he and Mike exchanged escalating words that ended with the umpire calling him an “(expletive) piece of (expletive).” During Bud’s restraint Milton twisted his knee; we now know that he tore the anterior cruciate ligament and will be out for the rest of the season. This is a serious injury and would put him out for several months if the season were to continue. Milton, and a few of his fellow Padres, claim that he was provoked by the umpire and was justified in his reaction.

This is just unbelieveable. If Mike Winters did indeed use that language, I don’t condone it; but Milton Bradley has a long history of failing to control his temper and should know that he has far exceeded all the goodwill he is ever going to get. Had he held his temper in check he’d still be playing and the Padres would still have his bat. Now this has become a huge distraction at a time when the Padres are far from a lock for the playoffs. And yet nobody on the Padres seems to be saying that Milton screwed this up. He has played for Montreal, Cleveland, Oakland, Los Angeles and now San Diego. None of his former teams want him back. He has a great bat and could do wonderful things, but he will ultimately be a victim of his inability or unwillingness to control his temper. As a Padres fan I can only hope this was his last game as a Padre.

No baseball rant would be complete without talking about Barry Bonds. As it stands now he has 762 home runs and wants to return to baseball next year to reach 3000 hits (he’s at 2935 now). His team, the San Francisco Giants have announced that they do not intend to sign him next year. I wrote an entry on August 7th comparing his home runs to Hand Aaron and Babe Ruth. The table was essentially unreadable but it tried to show that he couldn’t have the home pattern without the help of steroids. Now that he has the record many of us are rooting for Alex Rodriguez to break Barry’s record. At the risk of doing the same damn thing, I’m going to attempt a table showing Alex’s progress againts Barry:

Barry Bonds Alex Rodriguez
1986: 16 1994: 0
1987: 25 1995: 5
1988: 24 1996: 36
1989: 19 1997: 23
1990: 33 1998: 42
1991: 25 1999: 42
1992: 34 2000: 41
1993: 46 2001: 52
1994: 37 2002: 57
1995: 33 2003: 47
1996: 42 2004: 36
1997: 40 2005: 48
1998: 37 2006: 35
1999: 34 2007: 52
2000: 49  
2001: 73  
2002: 46  
2003: 45  
2004: 45  
2005: 5  
2006: 26  
2007: 28  
Total: 762 Total: 516

According to this, A-Rod needs to average 31 home runs per season for the next 8 seasons to beat Barry. There are way too many variables, but I know that I will rejoice if Barry’s record is eclipsed.

I can’t help but think back to a panel discussion on ethics I heard several years ago. The panelists were role playing about a high school student who was considering cheating on a test because he felt he was disadvantaged and could cheat to make up for his disadvantage. One of the panelists indicated that if he wanted something so bad that he felt justified in cheating, he simply wanted it too much. I conclude this rant by saying that Milton Bradley wants to treated well too much and Barry Bonds wants to be the home run leader too much.