Like most Americans, I was bombarded by sound-bites and blog-bytes surrounding an amendment to an Act of Congress that would require a woman to submit to and review the results of a trans-vaginal ultrasound before receiving an abortion. This amendment was covered ad nauseam by everyone from the Huffington Post to the nightly news on broadcast television. I don’t mind admitting that I’m past the age where this Act of Congress would have an effect on me personally.
What really bothered me was that no one talked about the core problem of how deranged our political process has become in Washington. The real issue here that impacts all of us is that this amendment was attached to a transportation funding bill – TRANSPORTATION, not a Health Care Bill or a Health Insurance Bill or even an Equal Opportunity Employment Bill but a TRANSPORTATION funding bill.
All of these journalists are as at fault over the issue as the bunch of Congressmen who tried – once again – to slip one past the balance of powers and our democratic form of government. The guilty parties in Washington DC start with:
In the House of Representatives, Mr. Fortenberry (NE), Mr. Boren (OK), Mrs. McMorris Rodgers (WA), Mr.Scalise (LA), Mr. Tiberi (OH), Mr. CONAWAY (TX), Mr. Lamborn (CO), Mr. Walberg (MI), and Mr. Lipinski (IL) who introduced “H.R.1179 -- Respect for Rights of Conscience Act of 2011” on March 17, 2011. By the time the bill was attached as an amendment to the highway funding bill, the number of co-sponsors had risen from 8 to 221.
In the Senate, Mr. Blunt (MO), Mr. Rubio (FL), and Ms. Ayotte (NH)) introduced S. 1467 on August 2, 2011. The cosponsors in the Senate went from 2 to 37.
The current funding authorization is just the most recent in a long line of temporary extensions that have been strung together since the last 5-year plan expired in 2009. The highway funding bill in question – to which this healthcare amendment is being attached – would authorize funding of $109 billion over 2 years. If nothing is done by March 30, if no action is taken to fund US highway infrastructure, the Department of Transportation (DoT) will have to furlough workers and stop paying contractors, according to Humberto Sanches of Roll Call. Last summer, DoT sent home 4,000 FAA employees and 70,000 private-sector workers because Congress failed to act on funding.
This morning the US Bureau of the Census released data for urban areas in the United States. The urban population of the US rose to 249.3 million in 2010, out of a total population of 308.7 million. Urbanization covered 106,000 square miles, representing 3.0 percent of the US land mass. Overall urban density was 2,342 per square mile (905 per square kilometer).
The Los Angeles urban area was again the nation's most dense, at 6,999 per square mile (2,702 per square kilometer), a slight reduction from the 7,068 figure (2,729 per square kilometer) in 2000. The most dense urban areas with more than 1,000,000 population were Los Angeles, San Francisco, San Jose, New York and Las Vegas (in that order).
Overall, the 41 major urban areas had an average density of 3,245 per square mile (1,253 per square kilometer). The table below provides data for the major urban areas and overall data.
After doing his duty for the Navy in Washington D.C. during World War II, my father returned to Los Angeles, and my parents moved into the Talmadge Apartments between Western and Vermont. They’d been married for 17 years without having any children. So my father informally adopted his two nephews.
Around 1949, those nephews, who were students at UCLA, threw a party at the apartment. It was apparently a night to remember. The management decided to not renew my father’s lease. Shortly after that, my father’s wife announced, after nearly two decades of a childless marriage, that she was with child. (Full disclosure: that child was none other than this writer.)
So my dad leased a house facing the Wilshire Country Club in Hancock Park. Then, in 1959, he formed a corporation to buy a nearby Tudor house, hire domestics, and rent the house back to him with domestic services. This was the man who founded the largest savings and loan in America, who in those years probably enabled more Californians to become homeowners than anyone else. But he was technically a renter all his life. Those were the days of the 70-percent and 90-percent top tax brackets, and byzantine legal structures were common.
In mid-century Los Angeles, anything on Wilshire Boulevard was considered more prestigious than anything on the side streets. On the eastern end near Lafayette Park was the Bullocks Wilshire department store. Several miles west were the Miracle Mile department stores, which had beautiful shop windows facing the boulevard, even though most people entered the stores through portes-cochères in the rear. Many of the major liberal establishment churches—the PCUSA, the United Methodists, St. Basil’s Cathedral, and the Wilshire Boulevard Temple, Rabbi Magnin’s huge reform synagogue—lined the street. The Ambassador Hotel was one of the great hotels of the city. And then there was The Brown Derby Restaurant, which gave us the Cobb Salad.
My father was originally from Omaha, Nebraska, but he moved west, graduating from the University of Southern California in 1927 and emerging from the Great Depression as a successful insurance underwriter. During the war, he heard talk among the military that Southern California was going to take off, so he bought a one-branch thrift downtown called Home Savings and Loan. Soon, it grew to be a multi-branched empire in four counties: Los Angeles, Orange, San Bernardino, and Riverside.
Partly to get involved in philanthropy and partly to set up an estate plan, my father set up The Ahmanson Foundation. The idea was that The Ahmanson Foundation, after my father’s death, would inherit and control the for-profit companies. This was a common legal arrangement at the time, offering a way for wealthy families to preserve more of the family fortune. (I recommend the novel God Bless You, Mr. Rosewater, by Kurt Vonnegut, for a sense of how it worked.)
Apparently, my father wasn’t a full member of the downtown establishment, for he chose to base his business several miles west of the establishment thoroughfares of Flower and Figueroa. He recruited the artist Millard Sheets to design for him a corporate headquarters on the north side of Wilshire Boulevard, between Serrano and Oxford Streets, in the early 1950s. Then he conceived of a fancier project for that site and hired Edward Durell Stone to design it. A model of it was in our house during my later high school years. It featured two buildings next to each other, with concave faces toward a courtyard. A third, taller building was to stand in back. But that part was never built.
My father died suddenly on June 17, 1968, before ground was broken on the project. Fifteen months later, the U. S. Congress passed, and President Nixon signed, a bill called the Tax Reform Act of 1969. It rendered my father’s estate plan obsolete, for a non-profit foundation could no longer own a controlling interest in a for-profit corporation. Instead of remaining under the control of the The Ahmanson Foundation, Home Savings of America would have to go public. In the meantime, my father’s nephew Robert Ahmanson wound up overseeing construction on the pair of buildings. They were finished in 1973.
The interest rate spike of the early ’80s was hard on Home Savings of America, and they sold off the Ahmanson Center on Wilshire at that time. Still, Home Savings coasted through the savings and loan crisis of the end of the ’80s, thanks to maintaining the conservative policies that my father had instituted.
The area changed a lot in these years. After the Watts Riots of 1965, and in the 10 or 15 years after that, the upper and upper-middle classes of Pasadena, San Marino, Arcadia, and Hancock Park relocated en masse to the Newport Beach area in what I call the secessio patriciorum, or the secession of the patricians. Los Angeles Magazine featured an article in 1977 called “The Ripening of Orange County: Is It Stealing the L.A. Dream?” Indeed, a lot of the life seemed to get sucked out of Los Angeles at that time. One consequence of the secessio was that finance and retail and new construction tended to concentrate either downtown or west of central Beverly Hills. That left the Wilshire corridor in between down at the heels.
Later, that part of Wilshire recovered and reinvented itself. New immigrants from Korea and Latin American countries moved in, and, for many years, such gentrification as took place in the area was done by these immigrants and not so much by white Anglos. After 1990, previously uncool areas like Pasadena, Santa Monica, and parts of downtown began to recover, and the Wilshire district became the heart of Koreatown. I now think of Los Angeles as being similar to San Francisco and Oakland. The West Side up to Hancock Park is like San Francisco, while the parts east of it are like Oakland and the East Bay. London and Berlin have the same sort of east-west-ness.
Koreatown is a wonderful neighborhood, and the Ahmanson Center is still beautiful. But I can’t help feeling a touch of melancholy that my dad’s vision was never fulfilled. He’d hoped to make that part of Wilshire Boulevard one of the great financial and retail corridors of America. Today, the big players are concentrated downtown or in Beverly Hills and westward.
If you walk up the Oxford Street side of the Ahmanson Center, you can see a travertine block with a Latin inscription. Translated, it says, “Robertus and Mauritius, two virtuous men, dedicate this stone to themselves.” Robertus is Robert Ahmanson, who supervised the construction of the center. Mauritius is Maurizio Bufalini, owner of a marble quarry in Carrara, Italy. Bufalini was a good friend of our family, and he provided the Italian and Greek marble that decorates the center. Both these men are “late,” as they say in Botswana English, meaning dead. The stone is dusty now, but the words can still be read. I wonder if anybody notices it, or wonders what it means.
Greg Smith’s resignation lament in the New York Times, Why I Am Leaving Goldman Sachs, has rightly caused an uproar. He writes, “I can honestly say that the environment now is as toxic and destructive as I have ever seen it,” implying that it has been toxic and destructive all along. Tell us something we don’t know.
Twenty years ago when I worked at JP Morgan, the public bond underwriters and pension managers complained that they were at a disadvantage when competing for business with Goldman because they weren’t allowed to “pay to play”, i.e. make political contributions in exchange for business.
Those two banks had long been at opposite ends of the spectrum. A century ago, the original J. Pierpont Morgan told counsel for a Congressional committee investigating the money trust that the most important criterion for supplying commercial credit was character, “Because a man I do not trust could not get money from me for all the bonds in Christendom.” Language, I must add, that distinguished him in ways large and small from moneylenders like Mr. Goldman and Mr. Sachs. Fifteen years ago an unnamed executive summed up the difference in business practices between the two banks to a Times reporter: “Morgan will show up with 20 people for a three-hour presentation to a client. Goldman Sachs will just send two people to sketch out a deal on a napkin at the golf club bar.”
With Robert Rubin, Henry Paulson, and Jon Corzine among the ranks of Goldman's recent former CEOs who have distinguished themselves in government and finance, you learn almost everything you need to know about the contemporary Goldman ethic, good and bad. Current honcho Lloyd Blankfein has said they are doing “God’s work.” For a Goldman investment banker to evoke the almighty as justification, he has to feel real heat.
Mr. Smith feels let down by corruption in Goldman’s corporate culture:
“It might sound surprising to a skeptical public, but culture … revolved around teamwork, integrity, a spirit of humility, and always doing right by our clients…. I am sad to say that I look around today and see virtually no trace of the culture that made me love working for this firm for many years."
A closer look at that culture would reveal something besides always doing right by the client. Corporate culture is really a nice way of moving people with a variety of motives in lockstep. One man’s client service is another man’s rapacious self-interest. Given the profitability of modern finance, rapacious self-interest has had an inexorable pull. The habits ingrained through a strong corporate culture are merely instruments for moving the herd along. Call it conformism, and in this, as in so many other areas, there’s no question that Goldman is a leader.
Upon reading Smith’s op-ed, I opened an excellent reference volume, The Wiley Book of Business Quotations, to the Goldman Sachs entry for corporate culture. (Okay, maybe that isn't quite accurate—I compiled the book myself and knew what was there.) I found Theresa M. Potter's New York Metropolitan Diary column of November 13, 1996:
Overheard on the elevator at Goldman Sachs on a recent “dress-down Friday,” a conversation between a long-time partner and a smartly attired young analyst.
Partner (sternly): It’s Friday. You’re not supposed to be wearing a tie.”
Analyst (crestfallen): “But it’s not silk.”
The latest BLS release for metro area unemployment has full year averages for 2011 available, so we can see which cities added the most jobs last year. On the whole, it was a much better year for metros than we’ve seen in the recent past. The national economy added jobs, and all but two large metros did as well. New York City added the most jobs of any region, but given that it is far and away the biggest city in America, it should do so. NYC ranked only the middle of the pack on a percentage growth basis. On that measure, Austin, Texas was number one.
The top percentage gainer in the Midwest region? Detroit, Michigan. Perhaps this shouldn’t be surprising either, as manufacturing is pro-cyclical.
Here is the performance of the metro areas in the United States with more than one million people, ranked by percentage change. The data is also available in spreadsheet form.
Austin-Round Rock-San Marcos, TX
San Jose-Sunnyvale-Santa Clara, CA
Houston-Sugar Land-Baytown, TX
Charlotte-Gastonia-Rock Hill, NC-SC
Salt Lake City, UT
Dallas-Fort Worth-Arlington, TX
Oklahoma City, OK
Tampa-St. Petersburg-Clearwater, FL
Minneapolis-St. Paul-Bloomington, MN-WI
Miami-Fort Lauderdale-Pompano Beach, FL
Atlanta-Sandy Springs-Marietta, GA
New Orleans-Metairie-Kenner, LA
San Antonio-New Braunfels, TX
New York-Northern New Jersey-Long Island, NY-NJ-PA
Today, history will be made. Rod Blagojevich is going to jail in Littleton, Colorado. Blagojevich will join his predecessor Governor George Ryan who’s in prison in Terre Haute, Indiana. America’s fifth largest state will now have two back-to-back Governors in federal prison at the same time. What other state in America can say that? Both Illinois Governors were convicted of major felonies. Have Illinois voters turned the corner on supporting corrupt politicians? It appears not. Recently, U.S. Attorney Patrick Fitzgerald has been busy. Long time Chicago Machine boss William Beavers was indicted on tax fraud. Tuesday, Illinois State Rep. Derrick Smith was arrested on a federal bribery charge.
The Federal Transit Administration (FTA) has intervened in the Honolulu Mayor's race against challenger and former Hawaii Governor Ben Cayetano. Governor Cayetano and Mayor Peter Carlisle are locked in a bitter contest that could determine whether the proposed $5.1 billion rail line is built. Mayor Carlisle is a strong supporter of the rail line. Challenger Cayetano has promised to "pull the plug" on the rail system. Recent polls show that the project's former thin majority support among Honolulu residents has now turned to opposition.
At a 1:30 p.m. press conference yesterday (March 13), Governor Cayetano released e-mails from the FTA indicating concerns about the rail project. According to Cayetano, "Not only it is apparent that FTA officials share some of our concerns, but it's also apparent that they warned the city about pending litigation if certain things were not done."
One of the FTA emails, obtained from the administrative record said “I do not think the FTA should be associated with their lousy practices of public manipulation and we should call them on it.”
Reflecting a surprising ability to "turn on a dime," FTA quickly responded in an apparent attempt to diffuse Governor Cayetano's point. According to KITV, "In response to the press conference, a spokesman for the Honolulu Authority for Rapid Transportation issued the following statement on behalf of the FTA:"
There is no question that this project has overcome early obstacles because of a much improved Federal partnership with the City of Honolulu and State of Hawaii over the last several years. The Federal Transit Administration believes that this project will bring much needed relief from the suffocating congestion on the H-1 Freeway and provide a real transportation alternative for the people of Oahu as gas prices rise.
Curiously, the FTA's statement contradicted its own previous position on the traffic impact of the rail line. In its January 2011 "record of decision" for the project, FTA indicated: "Many commenters [on the Draft EIS] reiterated their concern that the Project will not relieve highway congestion in Honolulu. FTA agrees..." Further, it is unusual for federal agencies to take part in local election campaigns.
The Honolulu rail project was covered in more detail in a recent newgeography.com commentary, Honolulu's Money Train.
Clarification (March 15). The complete quotation above was not used because it was not necessary to the point, which was FTA agreed that highway congestion would not be relieved by rail in its record of decision, but in its statement on Tuesday appears to have reversed that view. We are unaware of any change in the technical documentation that would have justified such a change.
The complete quotation was "Many commenters [on the Draft EIS] reiterated their concern that the Project will not relieve highway congestion in Honolulu. FTA agrees, but the purpose of the project is to provide an alternative to the use of congested highways for many travelers.” The "provide an alternative" clause was omitted because it was unrelated to the apparent change in position on traffic congestion by FTA.
"FTA agrees." in the article above, has been changed to "FTA agrees..."
I love the Omaha World Herald – I read papers all over the world and this one is the best local paper I’ve seen. The bias is largely limited to the Opinion pages and they do original research on local topics. For national and world news, they have reporters outside the Omaha metro, but they also include the best of the news wire articles. The paper is a readable length, yet it contains enough stories that you know what’s going on but not so many that it’s a repeat of the nightly news from the national broadcast networks. Mostly, I like the way they let the reader connect the dots.
A perfect example appeared on Sunday March 11, 2012 on page 10A in the print edition. Two stories occupy the three columns on the left side of the page. The story occupying the top of the three columns is about IBM’s Watson supercomputer (from Bloomberg news). Watson’s newest consulting client will be Wall Street bank Citigroup, Inc. “the third-largest U.S. lender.” Directly beneath that is a story from the Associated Press (AP) about Main Street abandoning Wall Street – seems that if individual “ordinary” investors do not start giving their money to Wall Street banks again soon, the re-inflated stock market bubble will deflate – bye-bye Dow 15,000.
How do these two stories relate? Well, Citigroup is feeding information to Watson on “sentiment and news not in the usual metrics” like what you post on Facebook or search on Google. Citigroup will use Watson to “analyze customers’ needs” and process that with their client data to figure out how to get you to put your money back where it makes them the most money in fees and commissions.
Watson doesn’t come cheap – according to the Bloomberg News article, banks spent $400 billion last year on “information technology,” helping to generate $107 billion in revenue for IBM. How can banks afford to spend billions of dollars to get consultations with a computer? The answer is in the AP article in the bottom of the same columns: “corporate America has racked up double-digit profit gains” since the official end of the Great Recession in 2009.
These two articles make me a little happy. The first one pleases the economist in me because an American company with a real product is going to thrive by charging Wall Street billions of dollars for something. The second article pleases me because it means that Main Street got the message – don’t eat the hot dogs at the Wall Street party because the fuel for the weenie roast is your future. Let the machines do it.
[NOTE: Omaha.com links are available without registration for up to 2 weeks after publication. Access to the archives requires email registration.]
Susanne Trimbath, Ph.D. is CEO and Chief Economist of STP Advisory Services. Dr. Trimbath’s credits include appearances on national television and radio programs and the Emmy® Award nominated Bloomberg report Phantom Shares. She appears in four documentaries on the financial crisis, including Stock Shock: the Rise of Sirius XM and Collapse of Wall Street Ethics and the newly released Wall Street Conspiracy. Dr. Trimbath was formerly Senior Research Economist at the Milken Institute. She served as Senior Advisor on United States Agency for International Development capital markets projects in Russia, Romania and Ukraine. Dr. Trimbath teaches graduate and undergraduate finance and economics.
Newgeography.com lost a one of its first columnists, a regular contributor and good friend with the passing of Owen McShane.
Owen McShane (Robert Ivan Owen McShane) was born in 1941 and died on March 6, 2012. His long and successful career in public policy was built on a strong academic foundation. He graduated from the University of Auckland, earning degrees in architecture and urban planning. He continued on to be awarded a masters degree in city and regional planning at the University of California, Berkeley. There he studied under fabled Aaron Widavsky, chairman of the Political Science Department. His master's thesis dealt with a US federal program intended to reduce unemployment and promote business development in central cities.
He joined the new City Development Division of Auckland City Council after graduating from the University of Auckland. After returning from America, Owen held positions in both the public sector and government. He was a columnist for the National Business Review and has been published in many magazines and newspapers.
In recent years, Owen directed the Centre for Resource Management Studies in New Zealand. The Centre seeks to promote "a heightened awareness and understanding" of the environment and is committed to the "the promotion of scientifically robust, research-based and rational decision-making processes at all levels in matters concerning the environment." Owen was also a regular participant and presenter at the annual American Dream Coalition conferences.
Owen developed an understanding of economics, which assisted him in avoiding the disconnected romanticism that sometimes characterizes architecture and urban planning. Combining economics with architecture and urban planning made his contributions more effective by adding the crucial human element.
From Owen's perspective, rational urban policy was not determined by remote or theoretical visions of the city that he was trained to plan. The success of a city was rather judged by the standard of living experienced by its residents. For example, his How Can Cities with Unaffordable Housing be Ranked Among the Most Livable Cities in the World? (newgeography.com, June 9, 2009) may have been the first to point out that popular indexes of the quality of life in international urban areas routinely ranked the most unaffordable at the top. This kind of analysis led Owen to postulate that " genuine sustainable development" had to work from middle class people and families too" in The Disappearance of the Next Middle Class (newgeography.com, August 24, 2010).
Owen McShane was an untiring advocate of ordinary people, championing individual aspirations in a world that has increasingly been captured by bureaucratic theories that take little or no account of their preferences or their economic advancement.
Owen will be greatly missed both in New Zealand and far from its shores.
Veteran Chicago journalist Ben Joravsky explains why Chicago’s better off without the G-8 summit:
One, we're not equipped to handle it. Two, we can't afford it. And, three, it has the potential to give the Republicans great campaign material for the coming election.
President Obama has done Mayor Emanuel a great favor, because there’s no real upside to the summit for Chicago. Banks on La Salle Street were planning to close. Many major corporations located downtown were telling their employees to stay home. The fear of violence from the demonstrators was bound to dampen economic activity. There’s no real need to showcase Chicago, international travelers are well aware of the town.
Some may view as an embarrassment to Emanuel. The Chicago Sun-Times reported to President Obama only gave Emanuel “an hour’s advance notice.” But Emanuel is the lucky one. Violent demonstrations or not, the G-8 would have put the spotlight on Chicago. Do we want to shine a light on the recent loss of 200,000 people? The high retail sales tax? The bad public schools? The relentless legacy of public corruption?
President Obama helped his former Chief of Staff dodge a major bullet.