I agree that moral hazard is the worst thing that the economy has to face.
moral hazard has always been with us in the 20th and 21st century.
Rockfeller's Standard Oil's hostile M&A and market monopoly was perhaps the first famous act of moral hazard that effected the econmoy and the stock market.
Sherman Act of 1890 was the groundstone for Fair Trade Comittee that enforced laws to rightfully organize the market harmed by Standard Oil and US Steel. Clayton Act of 1910s followed and US has been fighting against moral hazard ever since, FTC's power most enhanced when it decided to split AT&T, the largest company in the world for series of the years at the decision time, decades ago.
Enron accounting fraud 2001 pulled Enron down from the most admired company for many consecutive years to bankrupcy. Enron's moral hazard was heavily punished, sentencing ones behind the fraud more than 100 years in the prison. Mass media followed the criticism and the whole country got together to punish and self-reflect the moral hazard.
Recent moral hazard happened two years ago. Subprime Mortgage Crisis that effected the whole world economy for once and for all. For instance, grades in universities in Korea became important only a few years ago, when the air in society changed and jobless problem became big due to the economy depression that started from US. It happened to directly affect me too. I used to dream of becoming an investment banker, but the crisis made me reconsider the situation.
consider NBC's In America Today's Lehman brothers, the next Enron
link: http://www.youtube.com/watch?v=9IRqwhxlarU
Bankers and Investors behind the derivative products knew that something wasn't right and should be stopped. However, they chose not to and started sending hot potato to other financial firms continuosly making derivative products out of credit that did not exist. Insurance companies, IBs, commercial banks, consulting firms, securities companies, all did not stop to rightfully admit that they cannot gain profit from nothing. Instead, they just took a part of the festival and thought that bigger it got, the harder it would be to be destroyed. Amazing moral hazard. Worldclass moral hazard.
Largest US bank, bank of America might've gone bankrupt if it hadn't been for public fund that is of course, the taxes of US citizen.
Question.
When the profit's made, stockholders share the profit. When loss is severe, public fund is rent to cover the loss. The proletarian class is helping the loss of the leisure class. The gap between the rich and poor is increasing to the level never seen before, but why aren't the rich noble enough to accept the consequences of their choice? Is it not a giantic moral hazard? What's wrong with our system?
The diffence between Enron and Subprime is that in Enron, moral hazard was that of only a few, but in subprime, everyone took a part in the big fraud. Everyone could not be punished and US government had to formulate trillion dollar worth of fund to stop the country from going moratorium.
Subprime was not an accident. One of the biggest crime that was commited to the 'world' citizen.
2010년 11월 29일 월요일
2010년 11월 17일 수요일
Mr. Hitch
[i wonder if it is an argumentative post]
I am watching Mr. Hitch on the IPTV right now. about halfway through the movie, but i am familiar with the plot, because i've seen it in the movies before. then, it hit me. how should a guy ask a girl out?
Personally, i think straight forward is good. That's because i believe that 'only the brave can have beauty'. why? That's because a perfect girl usually have someone she's seeing and if perhaps she is free, you should not miss the chance. Of course you should not rush and make sure that you give her enough room to have a good look at the relationship she might get involved in. Also, don't forget that you have to listen and understand what she has to say. Showing your interest to her do much better than making her have interest to you.
Going back to Mr. Hitch, he loses his great confidence as soon as he falls in love. And that's the point where the woman starts to open her heart to Mr.Hitch. Clever movements, nice looks, sweet talks all did not do as good as honest himself.
which one do you favor?
ps. You really should watch Mr.Hitch.
Where he gets food allergy and shouts for more Benadryl is hilarious. And, he is carrying a bottle of benadryl with a straw too^----^.
Personally, i think straight forward is good. That's because i believe that 'only the brave can have beauty'. why? That's because a perfect girl usually have someone she's seeing and if perhaps she is free, you should not miss the chance. Of course you should not rush and make sure that you give her enough room to have a good look at the relationship she might get involved in. Also, don't forget that you have to listen and understand what she has to say. Showing your interest to her do much better than making her have interest to you.
Going back to Mr. Hitch, he loses his great confidence as soon as he falls in love. And that's the point where the woman starts to open her heart to Mr.Hitch. Clever movements, nice looks, sweet talks all did not do as good as honest himself.
which one do you favor?
ps. You really should watch Mr.Hitch.
Where he gets food allergy and shouts for more Benadryl is hilarious. And, he is carrying a bottle of benadryl with a straw too^----^.
2010년 11월 15일 월요일
Yuan Revaluation, another Plaza Agreement?
G20 Summit, Last Thurs/Friday was hot on Coex. The subjects handled can be abstracted into a 'battle' between the developed and developing countries. More specifically between the G2, US and China. The main topics were the currency rate and regulating the trade surplus/deficit. namely, US argued that the trade surplus/deficit should be controlled in the +-4% range. Trade surplus/deficit regulation was postponed to the next summit(China reached 20% years agos and still ranges around 9%), but the currency rate revaluation is still hot.
To be honest, a country offering another to adjust currency rate is absolutely outrageous. Currency exchange rate directly affects the book value of products and therefore has huge impact on the gross profit of the trade. Recall the subprime mortagage crisis two years ago and the suffer of the countries(citizens too, of course) due to the currency rate was very obvious. Korea and Asian countries that suffered IMF crisis 1998, faced amazingly painful economic depression due to the dropping currency exchange rate. There are stories of the Korean diplomats who had to carry dollar bills in the pockets of their coats to Bank of Korea(they could take large bills from a country to Korea, because they were diplomats and therefore extraterritoriality).
Currency rate directly affects a country's well-being as a whole. Japan used to rule the world economy in the 80s and threatened US's #1 place in the economy. Japanese flourishing funds started buy American soil including the Rockepeller center. However, when Plaza Agreement took effect and the value of Yen was appreciated to a double value, everything changed. Export of Japanese goods started to drop harshly and Japanese companies had to resell American real estates at a less than half the value they bought due to the changed exchange rate and the lack of fund in the Japanese homeland.
Afterwards, Japan started an amazingly long era of recession. (Still recovering)
America is asking China to repeat what Japan did decades ago. (This time, China bought American bond instead of the real estates) Really, even the stupid know that the economy is important(Bill Clinton said this).
The majority of the countries do not agree on a currency revaluation, not to mention believing that it is fair.
Former assistant secretary of Ministry of Finance and Economy of Korean government who I am currently taking a course of, mentioned that this is only a power game. In the cold war era, it was military, now it has changed to the economy.
The fact that America can suggest this kind of subject show what a super power that US has in the 21st century. Such that no countries in the prior history ever had. Nevertheless, I cannot stop thinking that US's movement was very naive and somewhat desperate.
To be honest, a country offering another to adjust currency rate is absolutely outrageous. Currency exchange rate directly affects the book value of products and therefore has huge impact on the gross profit of the trade. Recall the subprime mortagage crisis two years ago and the suffer of the countries(citizens too, of course) due to the currency rate was very obvious. Korea and Asian countries that suffered IMF crisis 1998, faced amazingly painful economic depression due to the dropping currency exchange rate. There are stories of the Korean diplomats who had to carry dollar bills in the pockets of their coats to Bank of Korea(they could take large bills from a country to Korea, because they were diplomats and therefore extraterritoriality).
Currency rate directly affects a country's well-being as a whole. Japan used to rule the world economy in the 80s and threatened US's #1 place in the economy. Japanese flourishing funds started buy American soil including the Rockepeller center. However, when Plaza Agreement took effect and the value of Yen was appreciated to a double value, everything changed. Export of Japanese goods started to drop harshly and Japanese companies had to resell American real estates at a less than half the value they bought due to the changed exchange rate and the lack of fund in the Japanese homeland.
Afterwards, Japan started an amazingly long era of recession. (Still recovering)
America is asking China to repeat what Japan did decades ago. (This time, China bought American bond instead of the real estates) Really, even the stupid know that the economy is important(Bill Clinton said this).
The majority of the countries do not agree on a currency revaluation, not to mention believing that it is fair.
Former assistant secretary of Ministry of Finance and Economy of Korean government who I am currently taking a course of, mentioned that this is only a power game. In the cold war era, it was military, now it has changed to the economy.
The fact that America can suggest this kind of subject show what a super power that US has in the 21st century. Such that no countries in the prior history ever had. Nevertheless, I cannot stop thinking that US's movement was very naive and somewhat desperate.
2010년 11월 3일 수요일
scientist
Music has always been a large part of my life. I played flute and participated in the Washington DC youth orchestra for a year i was in the states(i was 12). I was in the hiphop crew during my middle and high school years in Korea. In college, I was in a rock band and played drum. Karaoke is the last and almost the main part that concludes my friends gathering.
Ungratefully, my ipods(classic 80g and nano 1g) slept in the drawer for some time rescently. what was the matter? i can't really point at the reason, but the closest answer would be that i was caught up by the life. yes, like everybody living in 21st century is, busy. music's too slow and even annoying for busy person who can't spare 5 minutes to give someone's beautiful poem and well coordinated beats some attention.
It was a single song that brought me back to the music. Coldplay - scientist. i came across the song that was played automatically on a blog of an annoymous during a research.
last weekend in seoul, i went out early for an appointment, picked up a carmomile blend tea and sat on a busy subway station with headphone that played scientist again and again. during the hour, it was as if the time had stopped and felt absolutely, amazingly relaxing. everyone rushing. me stopping.
materialism, plastic surgeries, boutique cosmetics, luxury purses, girl groups,,,, but less love, less kiss.
if you reach the top place that you longed for, would you be satisfied? was cinderella uncomparably happy? maybe we are merely a target. for the markeing companies. and wasting our precious feelings on the attractive themes companies spread out. instead of significant people around us.
how do you feel listening to chris martin who is married to Pepper Potts(someone that any man would do anything just to talk, or is it just me?^^) sing "oh take me back to the start"
wouldn't it be a miracle to have busy people in the subway station on the kill-hills say"i'm going back to the start".
really, there's no taking back the time, but you can surely go back to the start. start from now, this present time. it's simple, easy, and every single child do that, even today.
conclusion: life's good. seize it!
maybe you can take afive minute break with the song^^
oh, yes the name of the band i played in is carpe diem
http://www.youtube.com/watch?v=tmjPrdTNxQ0
Ungratefully, my ipods(classic 80g and nano 1g) slept in the drawer for some time rescently. what was the matter? i can't really point at the reason, but the closest answer would be that i was caught up by the life. yes, like everybody living in 21st century is, busy. music's too slow and even annoying for busy person who can't spare 5 minutes to give someone's beautiful poem and well coordinated beats some attention.
It was a single song that brought me back to the music. Coldplay - scientist. i came across the song that was played automatically on a blog of an annoymous during a research.
last weekend in seoul, i went out early for an appointment, picked up a carmomile blend tea and sat on a busy subway station with headphone that played scientist again and again. during the hour, it was as if the time had stopped and felt absolutely, amazingly relaxing. everyone rushing. me stopping.
materialism, plastic surgeries, boutique cosmetics, luxury purses, girl groups,,,, but less love, less kiss.
if you reach the top place that you longed for, would you be satisfied? was cinderella uncomparably happy? maybe we are merely a target. for the markeing companies. and wasting our precious feelings on the attractive themes companies spread out. instead of significant people around us.
how do you feel listening to chris martin who is married to Pepper Potts(someone that any man would do anything just to talk, or is it just me?^^) sing "oh take me back to the start"
wouldn't it be a miracle to have busy people in the subway station on the kill-hills say"i'm going back to the start".
really, there's no taking back the time, but you can surely go back to the start. start from now, this present time. it's simple, easy, and every single child do that, even today.
oh, yes the name of the band i played in is carpe diem
http://www.youtube.com/watch?v=tmjPrdTNxQ0
2010년 10월 19일 화요일
F1 Racing KOrea
This coming weekend is a big one for me.
2010 Korea Grand Prix Yeongam is going to be held and my entire family will be there.
Formula1 is the biggest racing event held by the FIA(Federation Internationale de l'Automobile).
Its season consists of 19 racings held in 19 countries.
This race is the first one that is going to be held in Korea. It's not a event show, but the actual F1 racing that is a part of the F1 2010 season.
Jenson Button, Lewis Hamilton, Fernando Alonso, and even 'the Michael Schumacher' will be there.
If the logos below ring any bell to you, you could be able to feel the rush of adrenaline to your heart.
Formula1 is the biggest racing event held by the FIA(Federation Internationale de l'Automobile).
Its season consists of 19 racings held in 19 countries.
This race is the first one that is going to be held in Korea. It's not a event show, but the actual F1 racing that is a part of the F1 2010 season.
If the logos below ring any bell to you, you could be able to feel the rush of adrenaline to your heart.
멕라렌 (McLaren)
메르세데스 지피 (Mercedes GP)
레드불 (Red Bull)
페라리(Ferrai)
윌리엄스(Williams)
르노(Renault)
포스 인디아(Force India)
토로 로소(Toro Rosso)
로터스(Lotus)
HRT(에이치알티)
Sauber
버진 (Virgin)
2010년 10월 5일 화요일
My morning booster NU-Rung-Ji(누룽지!)
Making nu-rung-ji is really easy, almost as easy as making coffee. You put in pieces of nu-rung-ji and pour enough amount of water and boil it until it's hot, soaky and soupy enough to eat. The packs of nu-rung-ji sold at Han-Sal-lim has four round pieces of nurungji a pack, and I usually cook two at a time. As nurungji boils good smell fill up the room, such that reminds of grandmother's warm meal.
It's done! Water part of the cooked is called Sung-Nyung(숭늉). One of Korean's favorite dessert. As you have noticed nu-rung-ji is carbohydrate, basically rice. I think depending on person, carbohyrate that is well cooked so that it can be easily consumed might do more help than caffein. It quickly builds up appetite so that I would not skip breakfast. Sometimes it is strong enough to make me decide to go on a morning jogging! Ok, it is not sometimes, rather extremely rare...T.T....
I am typing and eating nurungji, simultanuously. It's getting little messy, so i should stop here.^^;;
I hope you all have pleasant mornings. Good luck!
2010년 9월 29일 수요일
High fidelity(Nick Horby's book that is made into movie starring John Cusack)
Now, we all haven't been married(am i correct?). Through series of relationships we are feeling, understanding, realizing who we are, who you are, and who i am. (Are we?^^;;;;)
John Cusack is a kind of person who cannot move on because he not only requires too much from others, but before that puts too much burden on him. It is pretty much like smart and pretty girl who cannot date because she is just too picky. Successful and alone, unable to realize the fact even on her 30th birthday.
The fact is that you can only get when you give up. Food that you eat this very moment is delicious because the food that you ate on your previous meal has all been digested and given up through energy and whatever(^0^). No one can have consecutive three meals at one time and feel the same gratefulness at each meal. You have to give up, even those that you absolutely require, in order to truly receive them from your beloved partner. Words sound little illogical, so let's put it this way. Love, relationship is about giving, we all know that. Just add letting yourself go. It makes your significant other come into you little easier.
2010년 9월 17일 금요일
지식 채널 E (Knowledge Channel E)
TV has steadily evolved playing a major in Han-Ryu(Korean Wave). Dramas and entertainment shows were well benefited. Some argue that the reason Korean culture, performance, and sports events cannot attract enough audience is simply because TV is too fun. Among the flourish of dramas and entertainments other great programs came out too. One that I want to introduce is Knowledge Channel E.
Knowledge Channel E is a five minute length episode broadcasted on Education Broadcasting System, one of the five nation-wide public TV channels in Korea. Nick Hornby mentioned on his book "The Polysyllabic Spree" that shows such as "Sopranos" and "Wire" of HBO require as much mental energy as reading a full length novel such as Crime and Punishment. Just want to say that TV shows when carefully picked can be free from its notorious label "boob tube".
I want to introduce the website of Knowledge Channel E that provides VOD of its over 660 episodes. (link's below) Many of them can touch and renovate your conservative or stereotyped beliefs. And also introduce very interesting new knowledges. Knowledge is power. Yes, it's even more important and challenging as well to hard brain users like KAIST students. Knowledge is one of many reasons why we should try to love professors and books. Why don't we start or close our days by clicking on one of Knowledge Channel E episodes rather than MV of lady Gaga or 2NE1? The two are same lengths, but I might be able to guarantee you that Knowledge Channel E can provide you as much fun as MVs, only different in kind.
http://home.ebs.co.kr/jisike/main.jsp
2010년 9월 15일 수요일
A-Chim Ma-dang(아침마당: Morning Garden)
Lee Geum-Hee is the main host of the show, staying at the same spot for over 10 years. Perhaps she is the closest person that can be referred as Korean Oprah Winfrey. Two hosts' styles are absolutely different, Oprah commanding the show and Lee Geum-Hee always modestly supporting the guest.
When I become a surplus(^^;;) of the society and have nothing particular to do in any morning, I would watch the Morning Garden. No, I am not a mid-ager, but the fact that I would enjoy the show that is broadcasted on KBS1 means that I share the emotions and identities of Korean mainstreamers.
I particularly enjoy the Thursday renowned speaker invitation day. Today, an absolutely witful speaker talked about how one should really confront oneself, love yourself, and finally open your heart so that you can share the love with significant others.
On September 21st, Choo-seok, President Lee Myung-bak and First lady Kim Yoon-Ok will be hosted on Morning Garden. What a big day! I am not sure if English captions would be provided. If would, Morning Garden will surely give series of hints on Korean culture, social interests, contemporary people's minds, that are unfamiliar to foreigners.
A-Chim Ma-dang's introduction starts with quite pleasant song that begins with birds' twittering. Yes, I was a social surplus this morning, humming and loudly following the theme while jumping to the bed on the same time. Heard the song while washing my face in the bathroom, and by far that was the most exciting moment of the day. I leave to Seoul this afternoon for the weekend, so let's hope that all of the dear classmates and Prof. Bottesini of Advanced English Writing enjoy exciting weekends. Good luck!
Graduation picture
I am just back from little shopping with my collegue who wanted to get a tie for the graduation picture that will be photographed tomorrow. He was quite looking forward to the event, being the kind of person who tries and actually makes happen everything exciting. Something that I really like. Well, who wouldn't? We talked about his excitement over a casual dinner of sushi and cutlet. Conclusion was that you should do what you like. If can't, you must like what you do.
Little bit out of the subject, but do you know a casual brand called Life is Good? On a baseball chill hat, there's a printing that reads 'do what you like, like what you do'. I have one and my sister also has one. Maybe I shall write a post about that later.
Back to the subject, I wonder if all of you are familiar with the graduation picture book. I remember that the high school picture taking was a small fuss. It was because we were told that when we go to college, blind dates will be set up upon how good we look on the graduation album. Nowadays, Cyworld and Facebook do that role. Still, it's quite funny when celebrities' grauation pictures are revealed.
Two male shoppers did not talk on how good one should look on the college graduation album and how important that would be. Still, I know that he would enjoy the shooting and that should be something that counts to the significant importance.
Oh yes, information.
On Timeworld Daejeon,
Crocs are on sale. Apparently crocs season's over. However, since dorm and classroom is quite near, we often manage to move with slippers. Try crocs. It's comfortable and even healthy as long as you stay away from moving walks and escalators. Doctors wear it, CPAs wear it when they are not meeting with the clients. I suppose that it could be a good chance on meeting the shoe of life!
No offense at all. It's just amazingly fun to imagine a group of people all wearing the red and green crocs. Whoever wears a crocs makes one wonder what in the world this guy's job could be. Perhaps crocs is one single item that let us flee from the world of snobs and rest in peace in the nature of rubber and comfy. Next Summer, I shall think about trying the crocs the next Summer.
Little bit out of the subject, but do you know a casual brand called Life is Good? On a baseball chill hat, there's a printing that reads 'do what you like, like what you do'. I have one and my sister also has one. Maybe I shall write a post about that later.
Back to the subject, I wonder if all of you are familiar with the graduation picture book. I remember that the high school picture taking was a small fuss. It was because we were told that when we go to college, blind dates will be set up upon how good we look on the graduation album. Nowadays, Cyworld and Facebook do that role. Still, it's quite funny when celebrities' grauation pictures are revealed.
Two male shoppers did not talk on how good one should look on the college graduation album and how important that would be. Still, I know that he would enjoy the shooting and that should be something that counts to the significant importance.
Oh yes, information.
On Timeworld Daejeon,
Crocs are on sale. Apparently crocs season's over. However, since dorm and classroom is quite near, we often manage to move with slippers. Try crocs. It's comfortable and even healthy as long as you stay away from moving walks and escalators. Doctors wear it, CPAs wear it when they are not meeting with the clients. I suppose that it could be a good chance on meeting the shoe of life!
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