Thursday, January 24, 2008
Saturday, January 19, 2008
How Long Can This Last? The Burst Of Our Bubble
Last fall I read the book "And the Money Kept Rolling in (And Out): Wall Street, the Imf, And the Bankrupting of Argentina" by Paul Blustein and was left somewhat shaken, recognizing the similarities between the economic collapse of Argentina that culminated in 2001 and what is going on in our country right now. i.e. the real estate bubble. The parallels are frightening. Fortunately, as Paul Krugman points out in his op-ed piece in the New York Times, "Don't Cry For Me, America," our debt is in U.S. dollars whereas Argentina was caught in a far worse trap: The value of their Peso was dropping like a lead weight, but their obligations were in U.S. dollars. A much bigger nightmare than ours. (We hope.)
The real concern (the frightening parallel) is that the global economic forces at work are not understood by anyone and they are regulated by nobody on a global scale. This was painfully evident in Paul Blustein's book, in which we see how baffled and impotent the IMF and leading economists were at preventing certain disaster in Argentina (and before that, in Mexico, Russia, Brazil, etc.). It's amazing that the Bush administration and Alan Greenspan did not see the real estate bubble coming and begin preparing (i.e regulating those who were running amok). Didn't we all marvel at the endless construction of condos and mini-mansions, grow nervous and in the conversations amongst ourselves, say, repeatedly, "How long can this last?"
Quote for today: "Those who cannot remember the past are condemned to repeat it." - George Santayana
Thought for today: Most of our collective retirement accounts are based on investments in the stock market. Yet the stock market is merely a version of Las Vegas where the cards are called certificates and where the shows are on Broadway. But don't think about it too much or you will get really spooked!
Friday, January 11, 2008
The Tango Singer
Bruno Cadogan arrives from
The secretive and elusive Martel is rumored to be even better than Carlos Gardel, the greatest tango singer of the 1920’s and ’30s. A woman describes Martel’s hypnotic singing like this: " . . . it was the nightingale, the first lark from the world’s beginnings, the mother of all songs. I still can’t understand how he could have breathed, where he got the strength to keep from fainting. I found myself crying when I heard him sing…I myself was remembering things I never lived." Yet, Martel has never been recorded and his seemingly random venues are never announced. Both The Aleph and Martel become Bruno’s obsession. Both prove difficult to find.
"I had the feeling,” Cadogan says, “that in the Buenos Aires of those months the threads of reality moved out of step with the people and was weaving a labyrinth in which no one could find anything or anyone."
Buenos Aires is described to us as an illusory and incoherent labyrinth (which, in reality, it sort of is in some neighborhoods). It causes Bruno to be perpetually lost, wandering the streets at all hours of the day and night as the city disintegrates into chaos as a consequence of the economic crash. The streets are clogged with roving demonstrators, the night belongs to homeless children, some shops are pillaged, and others simply close down. Against this backdrop, Bruno becomes convinced that Martel’s apparently random concerts are actually based on some mysterious formula and begins mapping them, frantically trying to solve the riddle before the sickly, decaying Martel dies.
Bruno’s quest is best described as hallucinatory, which makes for some interesting, if not challenging, reading.Martínez keeps us deliberately off balance, just like the protagonist.There are stories within stories, fictional, but supported with enough historical facts and factual descriptions of Buenos Airesthat they are believable. Eventually we, and Bruno, learn why they are presented to us in the book.
Of particular interest to me were the often exquisite, if not phenomenal descriptions of Buenos Aires ". . . majestic from the second or third story upwards and so dilapidated at street level, as if the splendour of the past had remained suspended in the heights and refused to descend or disappear.”
An outstanding book! - John