| The Daily Show With Jon Stewart | M - Th 11p / 10c | |||
| Mess O'Potamia - The Iraq War Is Over | ||||
| ||||
Thursday, March 19, 2009
Six years
Wednesday, March 18, 2009
Fallout of the AIG Bonuses
Fast forward Sunday, March 15: AIG announced executive bonuses, without realizing the ramifications of that action. By Monday morning, the blogosphere and later the mainstream media was full of stories and commentaries about how this action was unethical, even illegal to pay employees who created the financial mess in the first place. Senators and White House officials were asked for their reactions, and everyone's response was: it is shameful, and shouldn't have been done. Some officials even went to the defense, suggesting that it was difficult to stop them from issuing bonuses, since they were part of the company contract to the exmployees. Meanwhile, Eliot Spitzer's successor at the office of New York Attorney General, Andrew Cuomo issued a notice to the company to reveal the names of the executives who were being paid the bonuses. Over the day, lawmakers started deliberations to introduce a new piece of legislation to tax the bonus at ridiculously high rates (one proposal was to tax them at 100%). IRS already taxes bonuses above 1 million at 35%.
1. Should the company have issued the bonuses: No, considering the fact that the U.S. government holds 80% stake in the company. So, in effect, it is the taxpayers' money that is going to fund a few executives who created the mess in the first place.
2. Is there a way to get back the bonuses: Maybe, but taxing them is not a great idea.
3. Why shouldn't the bonuses be taxed: Though such a measure would find popular support, I believe it would be unconstitutional to introduce a legislation that would tax the bonuses issued prior to the enactment of the legislation. Whatever happened to being "grandfathered"?
4. Should the executives return the bonuses: That might be the only option left. It is morally incorrect to take home bonuses at the expense of taxpayers, when millions are losing their jobs, much less taking home bonuses. As someone said yesterday, 'morality cannot be legislated'.
5. Did the White House screw up on this issue: Totally. I believe the bailout was mishandled by Treasury Secretary Tim Geithner and the White House administration. They hoped that AIG would use the money properly, without inserting any enforceable clause in the agreement. They gave easy access to fire in the hands of a pyromaniac asked to watch over a building. How did they think AIG got to this position in the first place?
6. Should we make a big deal out of this? Hmmm... may be, may be not. $165 million is roughly 0.1% of the $150 billion in bailout money AIG received. So it doesn't make sense to go after the bonuses, when there are bigger fishes to fry. But the issue is not about substance, but attitude. The whole episode just shows gross disrespect towards the feelings of millions of people who have lost their jobs and/or homes. To put things in perpective, Ohio's share of the federal stimulus money is nearly $8.2 billion. The AIG bonuses are roughly 2% of Ohio's stimulus share. That might not look like a lot of money, but it can help complete most of the projects listed in this Dispatch article.
Monday, February 23, 2009
And the Oscar goes to...
Thursday, February 19, 2009
Oscar Predictions
List of winners according to Nate Silver and their chances of winning in percent:
Supporting Actor: Heath Ledger (The Dark Knight) 85.8%
Supporting Actress: Taraji P Henson (Benjamim Button) 51.0%
Lead Actor: Mickey Rourke (The Wrestler) 71.1%
Lead Atress: Kate Winslet (The Reader) 67.6%
Best Director: Danny Boyle (Slumdog Millionaire) 99.7%
Best Picture: Slumdog Millionaire 99.0%*
* Nate claims that Milk has an outside chance of winning the Best Picture award (that's where politics plays a role)
Read the detailed analysis at: http://nymag.com/movies/features/54335/
Saturday, January 03, 2009
Internship Search
Featured on namesake media outlet
Thursday, July 17, 2008
Is this science?
That question startled me for a second. I have interacted with high school kids and have talked to toddlers (who have no other option but to listen, and they can't talk back!), but it has really been a long time I talked to kids in primary/middle school, and that too about research. For kids, there is a clear demarcation of science, history and language. What we see as molecular genetics, wastewater treatment and wireless communication, they see as 'science'.
I replied to her, saying "Yes, this is science and engineering". This was not the only one, there were more to follow. The kid later asked me, "We have our school from 8 in the morning till 3.30 in the afternoon. Do you also have a specific time at which you come here and then leave". The whole conversation with the kids set me thinking on how far I have come from school. At her age, I would have asked similar questions to a graduate student. I don't know if she understood my explanations, but when asked about research and my work, she said, "It is very interesting and exciting". I hope she carries positive memories of this conversation and choses a profession that best appeals to her.
Tuesday, July 01, 2008
Friday, June 13, 2008
"Dirty Water" Explained
hmm...lots of food! wait a second...
Read the label carefully. This is where all the wastewater is stored. Refrigeration prevents decay of organic matter and thereby, the stink that we get in sewers and septic tanks.
Hope this was interesting enough.
Monday, April 28, 2008
Indian Hockey Federation and KPS Gill sacked
Source: Breaking News Online, CNN-IBN, NDTV News
Wednesday, April 16, 2008
"Dirty" Water
Tuesday, March 18, 2008
Oil Price Bubble?
Oil prices climbed to their highest level ever, reaching over $108 per barrel this week. And Americans are feeling this price spike at the pump, with gasoline averaging $3.22 per gallon. An analysis released by the investment firm Goldman Sachs suggested that oil prices might soar to $200 per barrel. Does this make sense?
Not really. Although U.S. crude oil inventories have fallen, gasoline inventories are at their highest since March, 1993, notes Tim Evans, an energy futures analyst at Citigroup's Futures Perspective. World oil production was up 2.5 percent in the first quarter of 2008 over the same period in 2007 while world oil consumption rose by just 2 percent. In fact, world production is projected to be 3.3 percent higher in the second quarter and 4.1 percent higher in the third quarter than the same periods a year ago. On the other hand, world demand is projected to rise by just 1.6 percent over the next six months.
In fact, demand is falling in some countries. According to economist John Kemp at the commodities firm Sempra Metals, the U.S. consumed 4 percent less petroleum in January 2008 than it did the year before. Evans agrees, noting that the U.S. demand for petroleum products began falling off last July. Interestingly, this drop in U.S. oil consumption began before crude prices turned vertical and before we began to see weakness in the broader economy. Even China's thirst for oil is abating somewhat. Its demand for oil, which once rose at 10 percent per year, has now dropped to 6 percent per year. In addition, world surplus oil production capacity has gone from a very tight 1.5 million barrels per day a couple of years ago to more than 3 million barrels today, says petroleum economist Michael Lynch.
So supply is up; relative demand is down and yet, the price of oil is soaring. What's going on? Last week, Exxon Mobil CEO Rex Tillerson blamed a third of the recent run up in oil prices on the weak dollar, another third on geopolitical uncertainty, and the rest on market speculation.
Let's start with geopolitical uncertainties. Last year, oil consumers watched warily as unrest in Nigeria's oil fields, the possibility of war between the U.S. and Iran, and the antics of Venezuela's Hugo Chavez threatened to disrupt oil supplies. That analysis may have once made sense, but most of those tensions have abated in recent months. Nevertheless, it remains true that most of the world's oil is produced in volatile regions and by erratic governments, so the price of crude must still include some kind of political risk premium.
What effect does the falling dollar have on the price of crude? Most oil price contracts are denominated in dollars. The dollar has fallen in value by more than 30 percent against a Federal Reserve index of major currencies since 2002. This means that the price of imports, including oil, have gone up. To some extent, the chief of the Organization of Petroleum Exporting Countries (OPEC) Chakib Khelil was correct when he said earlier this week, "What's happening in the oil market is due to the mismanagement of the U.S. economy." Continuing U.S. trade and fiscal deficits along with lower interest rates are stoking inflationary fears.
That brings us to speculation. Evans observes that since September 2003, the total number of open crude oil futures and options contracts rose by 364 percent. Meanwhile the global demand for petroleum rose by just 8.2 percent. "So the futures and options market has become more important than the physical supplies in driving the price," concludes Evans. "We are seeing investment flows into the oil market that don't have anything to do with the demand and supply of oil."
Investors are treating oil as a hedge against inflation and a falling dollar. Oil markets are part of a negative positive feedback loop in which higher oil prices contribute to higher inflation, which in turn lowers the value of the dollar, which boosts oil prices, and so forth. In other words, the oil market is coming to resemble the gold market (which has also been soaring). Evans notes that most gold traders don't even ask the question of how much gold was mined last year or how much spare gold mining capacity there is.
In the short run, oil prices are very inelastic: A large change in price produces only a small change in demand. If the price of gas goes up a dollar per gallon overnight, you still have to fill your tank to get to work. However, over the long run, consumers and producers respond to higher oil prices. For example, Americans are driving less and have switched to buying more fuel efficient cars.
Higher prices also encourage innovation. Economist Richard Rahn from the Institute for Global Economic Growth believes battery technologies are improving so rapidly that the majority of cars sold in 10 years will be all-electric. This would certainly help drive down the price of oil. Supply is also inelastic—it takes a long time to do the exploration, drilling, and refining necessary to boost production in response to higher prices. This inelasticity of demand and supply means that petroleum prices are very sensitive to relatively small changes in either. This means that prices can fall as steeply has they rose.
Whenever you begin to hear market gurus decree that "this time it's different," as we did during the dot-com bubble and the housing bubble, that's a sure sign of danger in the market. Naturally, proponents of the peak oil theory claim that the recent run up in prices is evidence that the end is nigh. Evans responds, "Fears of peak oil are what this market has in common with the 1980s, not what is different." Recall that during the "oil crisis" of the 1970s when oil prices were as high as they are today, U.S. oil consumption declined by 13 percent between 1973 and 1983. The higher prices of the 1970s led eventually to an oil glut and prices fell to about $10 a barrel by 1986.
So what will happen to oil prices over the next few years? No one is predicting $10 per barrel oil. However, once the current bubble bursts, both Evans and Lynch believe that the price of crude will settle at around $60 to $70 per barrel in the next couple of years. "It's very hard to pinpoint just how long a bubble can expand before it breaks. Getting the timing right is not an easy matter," says Evans. But he adds, "I think that this is the riskiest time to be long in crude oil since 1980."
Saturday, February 02, 2008
OFI Campaign ends
Friday, December 21, 2007
One For India
Make any ONE contribution to bring hope and joy to thousands of lives!
ONE dollar a day can support a village school for a year
ONE dollar a week can provides health care for a village household
Even ONE dime a day can make a difference to someone's life
Make any ONE donation that suits you
AID has a tax-exempt status from IRS, so I urge you to make that ONE contribution today. Donate here. If you would like to know about our activities, please see our latest year-ending newsletter (in PDF).
For more details, send me an email at sridharved AT gmail DOT com
Wednesday, December 12, 2007
Famous on the Blogosphere
During Sunday's graduation party, I met Nigamanth and Divya after a long time. We got down talking about several different issues, and suddenly at one point, Nigamanth told Divya and others nearby convincingly that "Oh..! this guy lives on the blogosphere." Then the conversation switched to my blog. Nigamanth said, "There are a lot of people living in Columbus who have not met him, but know him through his blog". Boy, was I flattered? Sudu commented that he too knew about me (through my blog) much before we actually met a party.
Wednesday, August 15, 2007
India @ 60
1. 1947 - Without doubt, the most important event was the independence from the British Raj, after nearly 150 years of colonial rule.
2. 1948 - The first war with Pakistan that followed soon after independence caused a simmering divide between the two countries that is yet to subside.
3. 1950 - Declaring itself a republic, formally breaking all the bonds with the monarch in London and adoption of a new Constitution in 1950.
4. 1955 - Decision to stay away from the US and Soviet blocs; and formation of the Non-Aligned Movement (NAM).
5. 1962 - The war with China and dispute over Sikkim and Arunachal Pradesh.
6. 1971 - Liberation of Bangladesh and victory over Pakistan.
7. Early 1970s - The emergence and rise of Amitabh Bacchan as the angry young man on screen.
8. 1975 - Imposition of Emergency by the then Prime Minister Indira Gandhi. Agreeably, one of the darkest hours of democracy which lasted for over 2 years.
9. 1983 - Winning the Cricket World Cup in a country devoid of real stars. The victory spawns a whole generation of sporting heros who endorse anything from cars to toothpastes to energy drinks.
10. 1983 - Operation Bluestar and the assassination of Indira Gandhi. Widespread anti-Sikh riots in Delhi, Punjab and other nearby states.
11. 1989 - Rise to prominence of the hindu nationalist party, Bharatiya Janata Party (BJP) in the General Elections.
12. 1991 - An year of turmoil starts as the then Prime Minister V P Singh brings up the Mandal Commission recommendations, clearly targeting the oncoming parliamentary elections. Widespread protests break-out and schools and colleges are closed for an extended period in most parts of the country.
12. 1991 - Assassination of Prime Ministerial candidate, Rajiv Gandhi by LTTE terrorists.
13. 1991 - LPG (Liberalization, Privatization and Globalization) of economic reforms rolled out by the duo of Manmohan Singh, the then Finance Minister and Prime Minister Narasimha Rao to dole out the country from an impending economic crisis. Indian economy opens up to allow trans-national companies to setup and trade in India.
14. 1992 - Demolition of the Babri Masjid in Ayodhya, which is soon followed by the serial bomb blasts in Mumbai. The country is torn apart by communal clashes and the ghastly scenes witnessed in 1983 anti-Sikh riots are revisited. Though everyone hoped this would be the last one, Godhra was to follow 10 years later.
15. 1998 - Nuclear tests in Pokhran, Rajasthan put India into the 'Nuclear Club'. Similar tests by Pakistan, and the spectre of a nuclear war between the two countries loomed large. These tests were immediately followed by economic and technological sanctions imposed by a slew of countries including US, UK , Canada, Australia and Japan, apart from a host of European nations.
16. 2000-01 - The Dotcom boom and bust, followed by a slowdown of the global economy. The temporary collapse of the American economy following the 9/11 attacks compounded the problem. Couple of years later, the Indian economy regained its shape, stronger and better than ever. IT and related services, added with manufacturing were the drivers of the new age economy. Agriculture, however, was getting neglected and farmer suicides was just one indicator.
17. 2005 - Right to Information (RTI) Act. Hailed as one of the most progressive laws ever made in the country, it is a powerful tool to combat the rampant corruption prevalent in public administration in the country.
Thursday, August 02, 2007
Master of Science
Monday, May 14, 2007
Turmoil in the neighborhood
Things don't look rosy with the other neighbors as well. On the eastern front, Bangladesh is the scene of intense political activity..well..without a government. The two leading parties, Bangladesh Nationalist party and the Awami League have been questioning the fairness of the upcoming elections and pointing irregularities in the voters list. The country is currently under a state of emergency and headed by a caretaker government.
Down south, Sri Lanka is battling renewed attacks by LTTE, including air raids on the capital city of Colombo. The landlocked Nepal seems to be doing better, months after King Gyanendra was stripped of all royal powers and the state was proclaimed secular by the 7-party government.
It is rather surprising that the Indian government hasn't involved itself much into issues across the border. A stable neighborhood augurs well for the social and economic development of the entire South Asian region, and it is high time the SAARC countries realize that.
Friday, April 20, 2007
Fighting Corruption in India
I agree it's been a long while since I visited my own blog, leave alone post one entry. Well, the news for now is that AID Columbus is hosting public rights activist and 2006 Ramon Magsaysay Award Winner, Arvind Kejriwal on May 30, 2007. Arvind who heads the Delhi-based NGO, Parivartan has been the driving force behind the successful implementation of the Right to Information Act, an act which gives ordinary citizens the right to challenge the actions of government officials, on literally anything from passport applications to the quality of mortar used in road construction outside their homes.Monday, December 25, 2006
Mammoth Caves, KY
We came out of the caves dead hungry. We took the first exit on I-65 and our eyes rolled when we saw a Pizza Hut outlet. Though we had to wait for about 15 minutes, but it was worth the wait as we treated ourselves with Garlic Bread and a Pan Pizza that tasted heavenly. From then on, I drove on the Interstate for about 80 miles, till Rajesh took over just before we entered Columbus. I reached home at 12.30 am, and thought if the 11 hour drive was worth the 2 hrs of stay inside the caves. Thinking back, it probably was.
