Daily Archives: August 3, 2006
All City Swim Photos
The Herd Changes Course and Runs Away From SUV’s
THE herd instinct is as powerful in humans as in other animal species.
Anyone who doubts it should rent “What Do You Say to a Naked Lady?”, the 1970 film by Allen Funt, the creator of “Candid Camera.” The money scene portrays a man responding to a help-wanted ad. He is directed to a waiting room occupied by men who appear to be other job seekers but are actually Mr. Funt’s confederates. At no apparent signal, these men stand and begin to disrobe. The hapless job seeker’s dismay is evident. Yet, after a few moments, he, too, stands and disrobes. At scene’s end, the men are standing naked, apparently waiting for whatever comes next.
Clearly, the herd instinct can lead us astray. For the most part, however, the impulse to emulate others serves us well. After all, without drawing on the wisdom and experience of others, it would be almost impossible to cope with the stream of complex decisions we confront.
Frank believes that the SUV craze started when Robert Altman’s “The Player” was released in 1992 (Great Movie). “The film’s lead character, the studio executive Griffin Mill (played by Tim Robbins), could have bought any vehicle he pleased. His choice? A Range Rover with a fax machine in the dashboard.”
Check out Tesla – an electric car startup.
NOBEL ECONOMIST ROUNDTABLE: ON GLOBAL WARMING AND GLOBAL FINANCIAL IMBALANCE
ON GLOBAL FINANCIAL IMBALANCES
Milken: A number of countries around the world — the United Arab Emirates, Singapore, Norway, Taiwan — have built up tremendous reserves relative to the size of their country. Most of them have not made the mistake of Japan, where deploying that surplus within the country through, for example superfluous road or bridge construction, caused massive increases in prices in the 1980s.
All in all, there is at least $25 trillion worth of surpluses in the world today that is invested short-term. It is pretty hard to find anything to put a trillion dollars into except U.S. government and private bonds or mortgage-backed securities.
Where do you see this capital being deployed? Do you see it just compounding away, or do you see them following the mode maybe of Singapore where the government is creating its own industrial companies?