Daily Intent

Santa Barbara, CA
I had this poem shared with me a couple months ago.  I find it applicable to business and life.  I hope you enjoy it.

the lesson of the moth - By Don Marquis, in “archy and mehitabel,”  1927

“i was talking to a moth
the other evening
he was trying to break into
an electric light bulb
and fry himself on the wires

why do you fellows
pull this stunt i asked him
because it is the conventional
thing for moths or why
if that had been an uncovered
candle instead of an electric
light bulb you would
now be a small unsightly cinder
have you no sense

plenty of it he answered
but at times we get tired
of using it
we get bored with the routine
and crave beauty
and excitement
fire is beautiful
and we know that if we get
too close it will kill us
but what does that matter
it is better to be happy
for a moment
and be burned up with beauty
than to live a long time
and be bored all the while
so we wad all our life up
into one little roll
and then we shoot the roll
that is what life is for
it is better to be a part of beauty
for one instant and then cease to
exist than to exist forever
and never be a part of beauty
our attitude toward life
is come easy go easy
we are like human beings
used to be before they became
too civilized to enjoy themselves

and before i could argue him
out of his philosophy
he went and immolated himself
on a patent cigar lighter
i do not agree with him
myself i would rather have
half the happiness and twice
the longevity

but at the same time i wish
there was something i wanted
as badly as he wanted to fry himself

archy”

To live passionately with high risk?  Or to live more conservatively with limited risk?  To sacrifice your life savings on a business idea?  Or continue saving conservatively a small amount at a time?  One must discover their own risk tolerance and need for excitement.  What is yours?  How would you respond to archy?
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PLAN
Team in Training - Casino for a Cure.  November 7th.  6:30pm - 9:30pm.  $45.  At the Canary Hotel.   Music, Cash Prizes, Heavy hors ‘doeurvres, One drink ticket and Plenty of gambling chips.  Order tickets at www.SBTNT.com.

Catalyst for Thought - Sync.  November 10th.  6pm - 8pm.  $10 RSVP online.  At the Canary Hotel as well.  The speaker, Susan Urquhart-Brown, will begin at 6:45pm.  She is author of The Accidental Entrepreneur.  All proceeds will go toward the non-profit Global Partners for Development.
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LEARN
Buzzword: Alligator Spread
“An unprofitable spread that occurs as a result of large commissions charged on the transaction regardless of favorable market movements.  An alligator spread is usually used in the options market to describe a collection of put and call options that may not be profitable.

Pricing models and a more efficient market can help reduce the traditional spread on a security, but it is commissions that create the alligator spread, not market inefficiencies.  The commissions are dependent on a transaction’s brokers.  Investors should check the commission schedules carefully to avoid having their profits devoured by the alligator spread.. “  -Investopedia.com

Six Points to Ponder:

   1. Markets Down. We’re back under 10,000 after influential analysts came out with grim reports and investors took profits off the table - The Dow is trading  at 9,911, S&P 500 at 1070 and the Nasdaq stands at 2147.  Oil is level at $78/bbl.
   2. Housing Hype.  Home prices in the 20 major metropolitan markets were up for the 3rd consecutive month, climbing 1% month over month.
   3. Windows 7.  Available as of October 22nd, Microsoft has taken the KISS model when naming their latest operating system.  Simplicity is the focus. 
   4. Baidu China.  Google’s largest search engine competitor Baidu, based out of China, saw quarterly profits rise 42%.
   5. 100 Bank Blunders.  2009 has plundered 100 banks as of Friday, with 416 other banks lining up in the “problems list.”
   6. Dodgers Out.  Lakers In.   As styles in Los Angeles fall in and out of favor, so do the sports teams.  The Angels and Dodgers saw their seasons end this past week.  Now it’s the Clippers and Lakers job to re-inspire a town of fickle-y fashionable fans.

Positives:

    * Though the markets are down, in percentage terms, they haven’t fallen much.  The markets have shifted from wanting to be negative about everything to fighting tooth and nail to be positive about everything.  Grim reports are being fought off by higher profits year-over-year, the slowing down of negative information, and projections that the worst is behind us.
    * Minimal house price increases is great news in the short run.  It gives confidence to buyers and sellers that they can continue forward with a transaction.  I encourage all to be diligent in your research and cautious with respect to these numbers.  The Mortgage Banker’s Association projects foreclosures to hit their peak in second quarter of next year when unemployment hits its peak.  Moreover, the housing credits may very well be over, lowering the incentive to buy now.
    * Windows 7, will you buy it?  It is getting rave reviews.  Previous generations weren’t quite so fortunate, however this time they’ve listened to their critics, peeked over their shoulder at Apple, and simplified things.  Expect a more user friendly experience.  For better or worse, Microsoft owns the market for office computers, you may soon be giving it a try at an office near you.
    * 338 million.  This is the number of internet users in China.  This is a number larger than the US population.  This is a number that is growing at double-digits.  Baidu owns 60% market share.  Google, 30%.  China’s economy continues to grow at dramatic rates, 8.9% was the latest data release.

Negatives:

    * Partners Bank out of Florida went under Friday.  They were taken over by the FDIC.  Those with deposits were saved worry though as another Florida bank, Stonegate Bank, purchased their deposits and assets.  It is expected 13 percent of the banks on the “problem list” will fail, which translates to 54 more banks.  These numbers pale in comparison to 1989 during the savings-and-loans crisis when 534 banks were closed.
    * Da Dodgers and da Angels were both dumbfounded by how over matched they were in their respective series.  Instead of the West Coast claiming home to the 2009 World Series, the East Coast gets full rights.

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GET INVOLVED
Local:

Nicholas Kristof, New York Times Columnist
Where: Cambell Hall, UCSB
When: 8pm.  Thursday, October 29th
Cost: $10.  UCSB Arts and Lectures Tel. 805-893-3535
Why:  He’s co-author of Half the Sky, a New York Times Bestseller.  “Oppression to Opportunity for Women Worldwide.”  It’s claimed to be the moral issue of the 21st century.
For other fun weekend ideas, go to www.lovemikana.com

Live and Be Well,

Jeff Bochsler