After digging to a depth of 100 metres last year,
Russian scientists found
traces of copper wire dating back 1000 years, and
came to the conclusion
that their ancestors already had a telephone
network one thousand years
ago.
So, not to be outdone, in the weeks that followed,
American scientists dug
200 metres and headlines in the US papers read:
"US scientists have found traces of 2000 year old
optical fibres, and have
concluded that their ancestors already had
advanced high-tech digital
telephone 1000 years earlier than the Russians."
One week later, the Indian newspapers reported the
following:
"After digging as deep as 500 metres, Indian
scientists have found
absolutely nothing. They have concluded that 5000
years ago, their
ancestors were already using wireless technology .
Wednesday, February 17, 2010
indian intelligency
After digging to a depth of 100 metres last year,
Russian scientists found
traces of copper wire dating back 1000 years, and
came to the conclusion
that their ancestors already had a telephone
network one thousand years
ago.
So, not to be outdone, in the weeks that followed,
American scientists dug
200 metres and headlines in the US papers read:
"US scientists have found traces of 2000 year old
optical fibres, and have
concluded that their ancestors already had
advanced high-tech digital
telephone 1000 years earlier than the Russians."
One week later, the Indian newspapers reported the
following:
"After digging as deep as 500 metres, Indian
scientists have found
absolutely nothing. They have concluded that 5000
years ago, their
ancestors were already using wireless technology .
Russian scientists found
traces of copper wire dating back 1000 years, and
came to the conclusion
that their ancestors already had a telephone
network one thousand years
ago.
So, not to be outdone, in the weeks that followed,
American scientists dug
200 metres and headlines in the US papers read:
"US scientists have found traces of 2000 year old
optical fibres, and have
concluded that their ancestors already had
advanced high-tech digital
telephone 1000 years earlier than the Russians."
One week later, the Indian newspapers reported the
following:
"After digging as deep as 500 metres, Indian
scientists have found
absolutely nothing. They have concluded that 5000
years ago, their
ancestors were already using wireless technology .
rock star of economics-keynes
If ever there was a rock star of economics, it would be John Maynard Keynes. Keynes shares his birthday, June 5th, with Adam Smith and he was born in 1883, the year communist founder Karl Marx died. With these auspicious signs, Keynes seemed to be destined to become a powerful free market force when the world was facing a serious choice between communism or capitalism. Instead, he offered a third way, which turned the world of economics upside down. In this article, we'll examine Keynes' doctrine and its impact. (To read about Adam Smith, be sure to check out Adam Smith: The Father Of Economics.)
The Cambridge Seer
Keynes grew up in a privileged home in England. He was the son of a Cambridge economics professor and studied math at university. After two years in the civil service, Keynes joined the staff at Cambridge in 1909. He was never formally trained in economics, but over the following decades he quickly became a central figure. His fame initially grew from accurately predicting the effects of political and economic events.
His first prediction was a critique of the reparation payments that were levied against the defeated Germany after WWI. Keynes rightly pointed out that having to pay out the cost of the entire war would force Germany into hyperinflation and have negative consequences all over Europe. He followed this up by predicting that a return to the prewar fixed exchange rate sought by the chancellor of the exchequer, Winston Churchill, would choke off economic growth and reduce real wages. The prewar exchange rate was overvalued in the postwar damage of 1925, and the attempt to lock it in did more damage than good. On both counts, Keynes was proved right. (For related reading, see War's Influence On Wall Street.)
A Big Miss, But a Great Rebound
Keynes was not a theoretical economist: he was an active trader in stocks and futures. He benefited hugely from the Roaring '20s and was well on his way to becoming the richest economist in history when the crash of 1929 wiped out three-quarters of his wealth. Keynes hadn't predicted this crash, and was among those who believed a negative economic event was impossible with the Federal Reserve watching over the U.S. economy. Although blindsided by the crash, the adaptable Keynes did manage to rebuild his fortune by buying up stocks in the fire sale following the crash. His contrarian investing left him with a fortune of around $30 million at his death, making him the second richest economist in history. (For more on this period in economic history, check out What Caused The Great Depression? and Crashes: The Great Depression.)
The General Theory
Many others fared far worse in the crash and the resulting depression, however, and this is where Keynes' economic contributions began. Keynes believed that free market capitalism was inherently unstable and that it needed to be reformulated both to fight off Marxism and the Great Depression. His ideas were summed up in his 1936 book, "The General Theory of Employment, Interest and Money". Among other things, Keynes claimed that classical economics - the invisible hand of Adam Smith - only applied in cases of full employment. In all other cases, his "General Theory" held sway. (Read Can Keynesian Economics Reduce Boom-Bust Cycles? to learn more.)
Inside the General Theory
Keynes' "General Theory" will forever be remembered for giving governments a central role in economics. Although ostensibly written to save capitalism from sliding into the central planning of Marxism, Keynes opened the door for government to become the principal agent in the economy. Simply put, Keynes saw deficit financing, public expenditures, taxation and consumption as more important than saving, private investment, balanced government budgets and low taxes (classical economic virtues). Keynes believed that an interventionist government could fix a depression by spending its way out and forcing its citizens to do the same, while smoothing futures cycles with various macroeconomic techniques.
Holes in the Ground
Keynes backed up his theory by adding government expenditures to the overall national output. This was controversial from the start because the government doesn't actually save or invest as business and private business do, but raises money through mandatory taxes or debt issues (that are paid back by tax revenues). Still, by adding government to the equation, Keynes showed that government spending - even digging holes and filling them in - would stimulate the economy when businesses and individual were tightening budgets. His ideas heavily influenced the New Deal and the welfare state that grew up in the postwar era. (To learn the differences between supply-side and Keynesian economics, read Understanding Supply-Side Economics.)
The War on Saving and Private Investing
Keynes believed that consumption was the key to recovery and savings were the chains holding the economy down. In his models, private savings are subtracted from the private investment part of the national output equation, making government investment appear to be the better solution. Only a big government that was spending on behalf of the people would be able to guarantee full employment and economic prosperity. Even when forced to rework his model to allow for some private investment, he argued that it wasn't as efficient as government spending because private investors would be less likely to undertake/overpay for unnecessary works in hard economic times.
Macroeconomics: Magnifying and Simplifying
It is easy to see why governments were so quick to adopt Keynesian thinking. It gave politicians unlimited funds for pet projects and deficit spending that was very useful in buying votes. Government contracts quickly became synonymous with free money for any company that landed it, regardless of whether the project was brought in on time and on budget. The problem was that Keynesian thinking made huge assumptions that weren't backed by any real world evidence.
For example, Keynes assumed interest rates would be constant no matter how much or how little capital was available for private lending. This allowed him to show that savings hurt economic growth - even though empirical evidence pointed to the opposite effect. To make this more obvious, he applied a multiplier to government spending but neglected to add a similar one to private savings. Oversimplification can be a useful tool in economics, but the more simplifying assumptions are used, the less real-world application a theory will have.
The Theory Hits a Rut
Keynes died in 1946. In addition to "The General Theory", he was part of a panel that worked on the Bretton Woods Agreement and the International Monetary Fund (IMF). His theory continued to grow in popularity and caught on with the public. After his death, however, critics began attacking both the macroeconomic view and the short-term aims of Keynesian thinking. Forcing spending, they argued, might keep a worker employed for another week, but what happens after that? Eventually the money runs out and the government must print more, leading to inflation.
This is exactly what happened in the stagflation of the 1970s. Stagflation was impossible within Keynes' theory, but it happened nonetheless. With government spending crowding out private investment and inflation reducing real wages, Keynes' critics gained more ears. It ultimately fell upon Milton Friedman to reverse the Keynesian formulation of capitalism and reestablish free market principles in the U.S. (Find out what factors contribute to a slowing economy, in Examining Stagflation and Stagflation, 1970s Style.)
Keynes for the Ages
Although no longer held in the esteem that it once was, Keynesian economics is far from dead. When you see consumer spending or confidence figures, you are seeing an outgrowth of Keynesian economics. The stimulus checks the U.S. government handed out to citizens in 2008 also represent the idea that consumers can buy flat-screen TVs or otherwise spend the economy out of trouble. Keynesian thinking will never completely leave the media or the government. For the media, many of the simplifications are easy to grasp and work into a short segment. For the government, the Keynesian assertion that it knows how to spend taxpayer money better than the taxpayers is a bonus. (To learn more about the stimulus checks, read How do government issued stimulus checks improve the economy?)
Conclusion
Despite these undesirable consequences, Keynes' work is useful. It helps strengthen the free market theory by opposition, as we can see in the work of Milton Friedman and the Chicago School economists that followed Keynes. Blind adherence to the gospel of Adam Smith is dangerous in its own way. The Keynesian formulation forced free market economics to become a more comprehensive theory, and the persistent and popular echoes of Keynesian thinking in every economic crisis caused free market economics to develop in response.
Friedman once said, "We are all Keynesians now." But the full quote was, "In one sense we are all Keynesians now; in another, no one is a Keynesian any longer. We all use the Keynesian language and apparatus; none of us any longer accepts the initial Keynesian conclusions."
The Cambridge Seer
Keynes grew up in a privileged home in England. He was the son of a Cambridge economics professor and studied math at university. After two years in the civil service, Keynes joined the staff at Cambridge in 1909. He was never formally trained in economics, but over the following decades he quickly became a central figure. His fame initially grew from accurately predicting the effects of political and economic events.
His first prediction was a critique of the reparation payments that were levied against the defeated Germany after WWI. Keynes rightly pointed out that having to pay out the cost of the entire war would force Germany into hyperinflation and have negative consequences all over Europe. He followed this up by predicting that a return to the prewar fixed exchange rate sought by the chancellor of the exchequer, Winston Churchill, would choke off economic growth and reduce real wages. The prewar exchange rate was overvalued in the postwar damage of 1925, and the attempt to lock it in did more damage than good. On both counts, Keynes was proved right. (For related reading, see War's Influence On Wall Street.)
A Big Miss, But a Great Rebound
Keynes was not a theoretical economist: he was an active trader in stocks and futures. He benefited hugely from the Roaring '20s and was well on his way to becoming the richest economist in history when the crash of 1929 wiped out three-quarters of his wealth. Keynes hadn't predicted this crash, and was among those who believed a negative economic event was impossible with the Federal Reserve watching over the U.S. economy. Although blindsided by the crash, the adaptable Keynes did manage to rebuild his fortune by buying up stocks in the fire sale following the crash. His contrarian investing left him with a fortune of around $30 million at his death, making him the second richest economist in history. (For more on this period in economic history, check out What Caused The Great Depression? and Crashes: The Great Depression.)
The General Theory
Many others fared far worse in the crash and the resulting depression, however, and this is where Keynes' economic contributions began. Keynes believed that free market capitalism was inherently unstable and that it needed to be reformulated both to fight off Marxism and the Great Depression. His ideas were summed up in his 1936 book, "The General Theory of Employment, Interest and Money". Among other things, Keynes claimed that classical economics - the invisible hand of Adam Smith - only applied in cases of full employment. In all other cases, his "General Theory" held sway. (Read Can Keynesian Economics Reduce Boom-Bust Cycles? to learn more.)
Inside the General Theory
Keynes' "General Theory" will forever be remembered for giving governments a central role in economics. Although ostensibly written to save capitalism from sliding into the central planning of Marxism, Keynes opened the door for government to become the principal agent in the economy. Simply put, Keynes saw deficit financing, public expenditures, taxation and consumption as more important than saving, private investment, balanced government budgets and low taxes (classical economic virtues). Keynes believed that an interventionist government could fix a depression by spending its way out and forcing its citizens to do the same, while smoothing futures cycles with various macroeconomic techniques.
Holes in the Ground
Keynes backed up his theory by adding government expenditures to the overall national output. This was controversial from the start because the government doesn't actually save or invest as business and private business do, but raises money through mandatory taxes or debt issues (that are paid back by tax revenues). Still, by adding government to the equation, Keynes showed that government spending - even digging holes and filling them in - would stimulate the economy when businesses and individual were tightening budgets. His ideas heavily influenced the New Deal and the welfare state that grew up in the postwar era. (To learn the differences between supply-side and Keynesian economics, read Understanding Supply-Side Economics.)
The War on Saving and Private Investing
Keynes believed that consumption was the key to recovery and savings were the chains holding the economy down. In his models, private savings are subtracted from the private investment part of the national output equation, making government investment appear to be the better solution. Only a big government that was spending on behalf of the people would be able to guarantee full employment and economic prosperity. Even when forced to rework his model to allow for some private investment, he argued that it wasn't as efficient as government spending because private investors would be less likely to undertake/overpay for unnecessary works in hard economic times.
Macroeconomics: Magnifying and Simplifying
It is easy to see why governments were so quick to adopt Keynesian thinking. It gave politicians unlimited funds for pet projects and deficit spending that was very useful in buying votes. Government contracts quickly became synonymous with free money for any company that landed it, regardless of whether the project was brought in on time and on budget. The problem was that Keynesian thinking made huge assumptions that weren't backed by any real world evidence.
For example, Keynes assumed interest rates would be constant no matter how much or how little capital was available for private lending. This allowed him to show that savings hurt economic growth - even though empirical evidence pointed to the opposite effect. To make this more obvious, he applied a multiplier to government spending but neglected to add a similar one to private savings. Oversimplification can be a useful tool in economics, but the more simplifying assumptions are used, the less real-world application a theory will have.
The Theory Hits a Rut
Keynes died in 1946. In addition to "The General Theory", he was part of a panel that worked on the Bretton Woods Agreement and the International Monetary Fund (IMF). His theory continued to grow in popularity and caught on with the public. After his death, however, critics began attacking both the macroeconomic view and the short-term aims of Keynesian thinking. Forcing spending, they argued, might keep a worker employed for another week, but what happens after that? Eventually the money runs out and the government must print more, leading to inflation.
This is exactly what happened in the stagflation of the 1970s. Stagflation was impossible within Keynes' theory, but it happened nonetheless. With government spending crowding out private investment and inflation reducing real wages, Keynes' critics gained more ears. It ultimately fell upon Milton Friedman to reverse the Keynesian formulation of capitalism and reestablish free market principles in the U.S. (Find out what factors contribute to a slowing economy, in Examining Stagflation and Stagflation, 1970s Style.)
Keynes for the Ages
Although no longer held in the esteem that it once was, Keynesian economics is far from dead. When you see consumer spending or confidence figures, you are seeing an outgrowth of Keynesian economics. The stimulus checks the U.S. government handed out to citizens in 2008 also represent the idea that consumers can buy flat-screen TVs or otherwise spend the economy out of trouble. Keynesian thinking will never completely leave the media or the government. For the media, many of the simplifications are easy to grasp and work into a short segment. For the government, the Keynesian assertion that it knows how to spend taxpayer money better than the taxpayers is a bonus. (To learn more about the stimulus checks, read How do government issued stimulus checks improve the economy?)
Conclusion
Despite these undesirable consequences, Keynes' work is useful. It helps strengthen the free market theory by opposition, as we can see in the work of Milton Friedman and the Chicago School economists that followed Keynes. Blind adherence to the gospel of Adam Smith is dangerous in its own way. The Keynesian formulation forced free market economics to become a more comprehensive theory, and the persistent and popular echoes of Keynesian thinking in every economic crisis caused free market economics to develop in response.
Friedman once said, "We are all Keynesians now." But the full quote was, "In one sense we are all Keynesians now; in another, no one is a Keynesian any longer. We all use the Keynesian language and apparatus; none of us any longer accepts the initial Keynesian conclusions."
ADAM SMITH AND "THE WEALTH OF THE NATION"
What was the most important document published in 1776? The Declaration of Independence is the easy answer for Americans, but many would argue that Adam Smith's "The Wealth of Nations" had a more important global impact. In this article, we will look at Smith's masterpiece and its contributions to modern economics. (For background reading, see Adam Smith: The Father Of Economics.)
In Opposition to Mercantilism
On March 9, 1776, "An Inquiry into the Nature and Causes of the Wealth of Nations" (commonly referred to as simply "The Wealth of Nations") was published. Smith, a Scottish philosopher by trade, wrote the book to upend the mercantilist system. Mercantilism held that wealth was fixed and finite, and that the only way to prosper was to hoard gold and tariff products from abroad. This meant that nations should sell their goods to other countries while buying nothing in return. Predictably, nations fell into rounds of retaliatory tariffs that choked off international trade. (For related reading, see The Basics Of Tariffs And Trade Barriers.)
The Invisible Hand
The core of Smith's thesis was that man's natural tendency toward self-interest - in modern terms, looking out for No.1 - results in prosperity. By giving everyone freedom to produce and exchange goods as they pleased (free trade) and opening all markets to competition (international as well as domestic - Smith lived in the age of government chartered monopolies), people's natural self-interest would bring about universal opulence with very little effort from a nation's government. This free-market force became known as the invisible hand, but it needed support to bring about its magic. (For more insight on free market theories, see Free Markets: What's The Cost?)
Boiling his principles down to essentials, Smith believed that a nation needed three elements to bring about universal prosperity:
•Enlightened Self-Interest
Smith wanted people to practice thrift, hard work and enlightened self-interest. He thought the practice of enlightened self-interest was natural for the majority of people. In his famous example, a butcher does not supply meat based on good-hearted intentions, but because he profits by selling meat. If the meat he sells is poor, he will not have repeat customers and thus, no profit. Therefore, it's in the butcher's interest to sell good meat at a price that customers are willing to pay, so that both parties benefit in every transaction. Smith believed that the ability to think long-term would curb most businesses from abusing customers. When that wasn't enough, he looked to the government to enforce laws.
Extending upon self-interest in trade, Smith saw thrift and savings as important virtues, especially when savings were used to invest. Through investment, industry would have the capital to buy more labor-saving machinery and encourage innovation. This technological leap forward would increase returns on invested capital and raise the overall standard of living.
•Limited Government
Smith saw the responsibilities of the government being limited to the defense of the nation, universal education, public works (infrastructure such as roads and bridges), the enforcement of legal rights (property rights and contracts) and the punishment of crime. The government would step in when people acted on their short-term interests, and would make and enforce laws against robbery, fraud and other similar crimes. He cautioned against larger, bureaucratic governments, writing, "there is no art which one government sooner learns of another, than that of draining money from the pockets of the people." His focus on universal education was to counteract the negative and dulling effects of the division of labor that was a necessary part of industrialization. (Learn about an economist who took this idea even further in Free Market Maven: Milton Friedman.)
•Solid Currency and Free-Market Economy
The third element Smith proposed was a solid currency twinned with free-market principles. By backing currency with hard metals, Smith hoped to curtail the government's ability to depreciate currency by circulating more of it to pay for wars or other wasteful expenditures. With hard currency acting as a check to spending, Smith wanted the government to follow free-market principles by keeping taxes low and allowing free trade across borders by eliminating tariffs. He pointed out that tariffs and other taxes only succeeded in making life more expensive for the people while also stifling industry and trade abroad. (For more on backing a currency with precious metal, read The Gold Standard Revisited.)
Grapes Overthrow Mercantilism
To drive home the damaging nature of tariffs, Smith used the example of making wine in Scotland. He pointed out that good grapes could be grown in Scotland in hothouses, but the extra costs of heating would make Scottish wine 30 times more expensive than French wines. Far better, he reasoned, would be to trade something Scotland had an abundance of, such as wool, in return for the wine. In other words, because France has a competitive advantage in producing wine, tariffs aimed to create and protect a domestic wine industry would just waste resources and cost the public money.
What Wasn't in "The Wealth Of Nations"?
"The Wealth of Nations" is an incredible book that represents the birth of free-market economics, but it's not without faults. It lacks proper explanations for pricing or a theory of value, and Smith failed to see the importance of the entrepreneur in breaking up inefficiencies and creating new markets.
Both the opponents of and believers in Adam Smith's free market capitalism have added to the framework setup in "The Wealth of Nations". Like any good theory, free-market capitalism gets stronger with each reformulation, whether prompted by an addition from a friend or an attack from a foe. Marginal utility, comparative advantage, entrepreneurship, the time-preference theory of interest, monetary theory and many other pieces have been added to the whole since 1776. There is still work to be done as the size and interconnectedness of the world's economies bring up new and unexpected challenges to free-market capitalism. (To read more about this evolution, check out The History Of Economic Thought.)
Conclusion
The publishing of "The Wealth of Nations" marked the birth of modern capitalism as well as economics. Oddly enough, Adam Smith, the champion of the free market, spent the last years of his life as the Commissioner of Customs, meaning he was responsible for enforcing all the tariffs. He took the work to heart, and burned many of his clothes when he discovered they had been smuggled into shops from abroad. Historical irony aside, his invisible hand continues to be a powerful force today. Smith overturned the miserly view of mercantilism and gave us a vision of plenty and freedom for all. The free market he envisioned, though not yet fully realized, may have done more to raise the global standard of living than any single idea in history.
In Opposition to Mercantilism
On March 9, 1776, "An Inquiry into the Nature and Causes of the Wealth of Nations" (commonly referred to as simply "The Wealth of Nations") was published. Smith, a Scottish philosopher by trade, wrote the book to upend the mercantilist system. Mercantilism held that wealth was fixed and finite, and that the only way to prosper was to hoard gold and tariff products from abroad. This meant that nations should sell their goods to other countries while buying nothing in return. Predictably, nations fell into rounds of retaliatory tariffs that choked off international trade. (For related reading, see The Basics Of Tariffs And Trade Barriers.)
The Invisible Hand
The core of Smith's thesis was that man's natural tendency toward self-interest - in modern terms, looking out for No.1 - results in prosperity. By giving everyone freedom to produce and exchange goods as they pleased (free trade) and opening all markets to competition (international as well as domestic - Smith lived in the age of government chartered monopolies), people's natural self-interest would bring about universal opulence with very little effort from a nation's government. This free-market force became known as the invisible hand, but it needed support to bring about its magic. (For more insight on free market theories, see Free Markets: What's The Cost?)
Boiling his principles down to essentials, Smith believed that a nation needed three elements to bring about universal prosperity:
•Enlightened Self-Interest
Smith wanted people to practice thrift, hard work and enlightened self-interest. He thought the practice of enlightened self-interest was natural for the majority of people. In his famous example, a butcher does not supply meat based on good-hearted intentions, but because he profits by selling meat. If the meat he sells is poor, he will not have repeat customers and thus, no profit. Therefore, it's in the butcher's interest to sell good meat at a price that customers are willing to pay, so that both parties benefit in every transaction. Smith believed that the ability to think long-term would curb most businesses from abusing customers. When that wasn't enough, he looked to the government to enforce laws.
Extending upon self-interest in trade, Smith saw thrift and savings as important virtues, especially when savings were used to invest. Through investment, industry would have the capital to buy more labor-saving machinery and encourage innovation. This technological leap forward would increase returns on invested capital and raise the overall standard of living.
•Limited Government
Smith saw the responsibilities of the government being limited to the defense of the nation, universal education, public works (infrastructure such as roads and bridges), the enforcement of legal rights (property rights and contracts) and the punishment of crime. The government would step in when people acted on their short-term interests, and would make and enforce laws against robbery, fraud and other similar crimes. He cautioned against larger, bureaucratic governments, writing, "there is no art which one government sooner learns of another, than that of draining money from the pockets of the people." His focus on universal education was to counteract the negative and dulling effects of the division of labor that was a necessary part of industrialization. (Learn about an economist who took this idea even further in Free Market Maven: Milton Friedman.)
•Solid Currency and Free-Market Economy
The third element Smith proposed was a solid currency twinned with free-market principles. By backing currency with hard metals, Smith hoped to curtail the government's ability to depreciate currency by circulating more of it to pay for wars or other wasteful expenditures. With hard currency acting as a check to spending, Smith wanted the government to follow free-market principles by keeping taxes low and allowing free trade across borders by eliminating tariffs. He pointed out that tariffs and other taxes only succeeded in making life more expensive for the people while also stifling industry and trade abroad. (For more on backing a currency with precious metal, read The Gold Standard Revisited.)
Grapes Overthrow Mercantilism
To drive home the damaging nature of tariffs, Smith used the example of making wine in Scotland. He pointed out that good grapes could be grown in Scotland in hothouses, but the extra costs of heating would make Scottish wine 30 times more expensive than French wines. Far better, he reasoned, would be to trade something Scotland had an abundance of, such as wool, in return for the wine. In other words, because France has a competitive advantage in producing wine, tariffs aimed to create and protect a domestic wine industry would just waste resources and cost the public money.
What Wasn't in "The Wealth Of Nations"?
"The Wealth of Nations" is an incredible book that represents the birth of free-market economics, but it's not without faults. It lacks proper explanations for pricing or a theory of value, and Smith failed to see the importance of the entrepreneur in breaking up inefficiencies and creating new markets.
Both the opponents of and believers in Adam Smith's free market capitalism have added to the framework setup in "The Wealth of Nations". Like any good theory, free-market capitalism gets stronger with each reformulation, whether prompted by an addition from a friend or an attack from a foe. Marginal utility, comparative advantage, entrepreneurship, the time-preference theory of interest, monetary theory and many other pieces have been added to the whole since 1776. There is still work to be done as the size and interconnectedness of the world's economies bring up new and unexpected challenges to free-market capitalism. (To read more about this evolution, check out The History Of Economic Thought.)
Conclusion
The publishing of "The Wealth of Nations" marked the birth of modern capitalism as well as economics. Oddly enough, Adam Smith, the champion of the free market, spent the last years of his life as the Commissioner of Customs, meaning he was responsible for enforcing all the tariffs. He took the work to heart, and burned many of his clothes when he discovered they had been smuggled into shops from abroad. Historical irony aside, his invisible hand continues to be a powerful force today. Smith overturned the miserly view of mercantilism and gave us a vision of plenty and freedom for all. The free market he envisioned, though not yet fully realized, may have done more to raise the global standard of living than any single idea in history.
Insider trading .....
Insider trading was at the heart of the legislation that brought the Securities and Exchange Commission (SEC) into existence. Albert H. Wiggin, the head of the Chase National Bank had actually shorted 40,000 shares of his own company. Simply put, he had a significant interest in running his company into the ground. This led to a 1934 revision of the Securities Act of 1933 that was much tougher on insider trading. Ever since Wiggin, insider trading has been one of the most contentious issues on Wall Street. In this article we will look at some bizarre and significant cases that have changed the way we view insider trading. (To learn more, see Policing The Securities Market: An Overview Of The SEC.)
Defining Insiders
One of the first challenges faced by the SEC in the '30s and '40s was how to define an insider. They settled on company officers, directors, and shareholders with 5% or more interest (called beneficial owners). These people had access to information, either formally or informally, before it was made public. Shorting your own company was outlawed and new disclosure requirements were set for insiders. If they did trade using their insider's edge, their profits would be forcibly returned, a fine levied, and they'd face possible jail time. The problem with the new rules was that no firm definition was made as to what constituted material facts, a.k.a. material insider information. (To learn more, see Defining Illegal Insider Trading.)
A Great Deal of Trouble
Two cases over the next two decades left Wall Street deeply confused over what counted as insider trading. In a 1942 case pitting Transamerica Corp against Axton-Fisher minority shareholders, Transamerica - a majority holder of Axton-Fisher - bought out the minority shareholders and then announced that it was liquidating an undervalued inventory of tobacco. The SEC ruled that giving the minority shareholders a lower price than they would have demanded had they realized the inventory was undervalued counted as fraud/insider trading. Before, this was simply smart business. This case effectively put the duty of disclosure on insiders, even if it hurt their potential profits.
The Waiting Period
The water was muddied further in 1959 when a geologist for Texas Gulf Sulphur Company discovered that a site up in Canada was rich in minerals. Not classified as an insider, the geologist told his friends to buy in to his company and bought in himself. Managers and other employees also increased their stock holdings in the company leading up to the official announcement. The SEC took everyone to court and lost - the court ruled that an educated guess can go both ways and employees investing in their company was a positive thing. It was a legitimate way for employees and management to derive additional compensation from their employers while also benefiting industry.
The SEC appealed and got all the decisions reversed, including the directors and managers who bought after the announcement because they did not allow enough time for the news to reach regular investors, Unfortunately, the court refused to define an amount of time that would have been sufficient to act as a future measure. The principle behind the decision was that all market participants must have equal information, and any with an informational edge must disclose or abstain before trading – a decision reinforcing the earlier Transamerica decision.
Raymond Dirks - Falling upon Deaf Ears
Clarity came in 1973 through one of the most flawed cases ever pursued by the SEC. Ronald Secrist, a former Equity Funding Corporation executive, wanted to act as a whistleblower and expose the insurance company's massive fraud. Other employees had attempted this, approaching both state regulators and the SEC at great personal and professional risk, only to be rebuffed. Instead, Secrist turned to analyst Raymond Dirks who believed his story and began to dig into the details. Dirks found ample evidence and took it to the Wall Street Journal. The Journal wouldn't publish anything about the case, delaying until a meeting could be held with Dirks, the whistleblowers and the SEC.
While his message was being ignored, Dirks advised his institutional clients get out of the stock. The Wall Street Journal helped break the news as the selling by Dirk's clients brought broad scrutiny to Equity Funding. When the SEC charges were finally laid, however, Dirks' name was on the list. Because Dirk received material insider information from a former exec and had his clients act upon it, he was guilty of facilitating insider trading. More significantly, these charges exposed him to Equity Funding shareholder lawsuits because he used insider info to damage their holdings.
Whereas management settled for fines or a little jail time, the charges were the start of a 10-year legal battle for Dirks that would go all the way to the Supreme Court. The SEC charged that Dirks was duty bound not to act on the info even though he was unable to turn the matter over to authorities. The Supreme Court found in Dirks' favor. It didn't want to discourage analysts from helping to uncover fraud. Dirks never made any money from exposing Equity Funding, and his case set the criteria to protect whistleblowers and others who expose information that is ultimately beneficial to society. (For more, read Uncovering Insider Trading.)
SEC Bulks Up Enforcement
Another case in the '70s imposed some more limits on the SEC's power to prosecute insider trading. Vincent Chiarella worked for a company specializing in financial printing, including tender offer sheets. Chiarella broke the code used to keep the takeover targets confidential and bought stock in the companies prior to takeover announcements. The Supreme Court ruled in favor of Chiarella because he had no fiduciary responsibility to the companies involved and thus could trade as he pleased. The court also commented on the impossibility of legislating equal information to all investors as well as the concept of information earned through intensive research as a type of property. In this view, property rights support those with informational edges making a profit from their knowledge.
As the Supreme Court tried to reign in the SEC's vague definitions and far-reaching enforcement powers, the SEC was beefing itself up. The 1984 and 1988 insider trading acts upped the penalties while still avoiding a true definition. Penalties were upped from five-10 years and fines jumped from $100,000-1 million for individuals and from $500,000-2.5 million for corporations who were found guilty. New rules made every company culpable for their employees' trades, not just executives, and special rules targeted tender sheet/takeover knowledge. In the SEC's eyes, everyone was an insider until proven guilty.
Insider Boom
Although investors like Warren Buffett and Peter Lynch consider insider buying positive, the practice has become more risky for insiders. From 1934 to 1978 insider trading cases averaged slightly less than one a year. Since 1978, there have been dozens annually. There is growing dissension among economists and investors as to whether or not insider trading should even be regulated.
Conclusion: Should it be Illegal?
The argument against regulation is that insider trading adds a source of information to the market. By reacting to information earlier via insider buying or selling, a stocks price will not get terribly over- or undervalued. Buyers with insider knowledge are also likely to pay more for a stock, passing more to the seller who was ready to sell anyway. Whether or not we'll see insider trading legalized one day, it's clear that having a political organization with broad powers running the show isn't a perfect system either. While we don't want another Wiggin, we also don't want to prevent people from investing in their own companies. (For more, see Top 4 Most Scandalous Insider Trading Debacles.)
Defining Insiders
One of the first challenges faced by the SEC in the '30s and '40s was how to define an insider. They settled on company officers, directors, and shareholders with 5% or more interest (called beneficial owners). These people had access to information, either formally or informally, before it was made public. Shorting your own company was outlawed and new disclosure requirements were set for insiders. If they did trade using their insider's edge, their profits would be forcibly returned, a fine levied, and they'd face possible jail time. The problem with the new rules was that no firm definition was made as to what constituted material facts, a.k.a. material insider information. (To learn more, see Defining Illegal Insider Trading.)
A Great Deal of Trouble
Two cases over the next two decades left Wall Street deeply confused over what counted as insider trading. In a 1942 case pitting Transamerica Corp against Axton-Fisher minority shareholders, Transamerica - a majority holder of Axton-Fisher - bought out the minority shareholders and then announced that it was liquidating an undervalued inventory of tobacco. The SEC ruled that giving the minority shareholders a lower price than they would have demanded had they realized the inventory was undervalued counted as fraud/insider trading. Before, this was simply smart business. This case effectively put the duty of disclosure on insiders, even if it hurt their potential profits.
The Waiting Period
The water was muddied further in 1959 when a geologist for Texas Gulf Sulphur Company discovered that a site up in Canada was rich in minerals. Not classified as an insider, the geologist told his friends to buy in to his company and bought in himself. Managers and other employees also increased their stock holdings in the company leading up to the official announcement. The SEC took everyone to court and lost - the court ruled that an educated guess can go both ways and employees investing in their company was a positive thing. It was a legitimate way for employees and management to derive additional compensation from their employers while also benefiting industry.
The SEC appealed and got all the decisions reversed, including the directors and managers who bought after the announcement because they did not allow enough time for the news to reach regular investors, Unfortunately, the court refused to define an amount of time that would have been sufficient to act as a future measure. The principle behind the decision was that all market participants must have equal information, and any with an informational edge must disclose or abstain before trading – a decision reinforcing the earlier Transamerica decision.
Raymond Dirks - Falling upon Deaf Ears
Clarity came in 1973 through one of the most flawed cases ever pursued by the SEC. Ronald Secrist, a former Equity Funding Corporation executive, wanted to act as a whistleblower and expose the insurance company's massive fraud. Other employees had attempted this, approaching both state regulators and the SEC at great personal and professional risk, only to be rebuffed. Instead, Secrist turned to analyst Raymond Dirks who believed his story and began to dig into the details. Dirks found ample evidence and took it to the Wall Street Journal. The Journal wouldn't publish anything about the case, delaying until a meeting could be held with Dirks, the whistleblowers and the SEC.
While his message was being ignored, Dirks advised his institutional clients get out of the stock. The Wall Street Journal helped break the news as the selling by Dirk's clients brought broad scrutiny to Equity Funding. When the SEC charges were finally laid, however, Dirks' name was on the list. Because Dirk received material insider information from a former exec and had his clients act upon it, he was guilty of facilitating insider trading. More significantly, these charges exposed him to Equity Funding shareholder lawsuits because he used insider info to damage their holdings.
Whereas management settled for fines or a little jail time, the charges were the start of a 10-year legal battle for Dirks that would go all the way to the Supreme Court. The SEC charged that Dirks was duty bound not to act on the info even though he was unable to turn the matter over to authorities. The Supreme Court found in Dirks' favor. It didn't want to discourage analysts from helping to uncover fraud. Dirks never made any money from exposing Equity Funding, and his case set the criteria to protect whistleblowers and others who expose information that is ultimately beneficial to society. (For more, read Uncovering Insider Trading.)
SEC Bulks Up Enforcement
Another case in the '70s imposed some more limits on the SEC's power to prosecute insider trading. Vincent Chiarella worked for a company specializing in financial printing, including tender offer sheets. Chiarella broke the code used to keep the takeover targets confidential and bought stock in the companies prior to takeover announcements. The Supreme Court ruled in favor of Chiarella because he had no fiduciary responsibility to the companies involved and thus could trade as he pleased. The court also commented on the impossibility of legislating equal information to all investors as well as the concept of information earned through intensive research as a type of property. In this view, property rights support those with informational edges making a profit from their knowledge.
As the Supreme Court tried to reign in the SEC's vague definitions and far-reaching enforcement powers, the SEC was beefing itself up. The 1984 and 1988 insider trading acts upped the penalties while still avoiding a true definition. Penalties were upped from five-10 years and fines jumped from $100,000-1 million for individuals and from $500,000-2.5 million for corporations who were found guilty. New rules made every company culpable for their employees' trades, not just executives, and special rules targeted tender sheet/takeover knowledge. In the SEC's eyes, everyone was an insider until proven guilty.
Insider Boom
Although investors like Warren Buffett and Peter Lynch consider insider buying positive, the practice has become more risky for insiders. From 1934 to 1978 insider trading cases averaged slightly less than one a year. Since 1978, there have been dozens annually. There is growing dissension among economists and investors as to whether or not insider trading should even be regulated.
Conclusion: Should it be Illegal?
The argument against regulation is that insider trading adds a source of information to the market. By reacting to information earlier via insider buying or selling, a stocks price will not get terribly over- or undervalued. Buyers with insider knowledge are also likely to pay more for a stock, passing more to the seller who was ready to sell anyway. Whether or not we'll see insider trading legalized one day, it's clear that having a political organization with broad powers running the show isn't a perfect system either. While we don't want another Wiggin, we also don't want to prevent people from investing in their own companies. (For more, see Top 4 Most Scandalous Insider Trading Debacles.)
power of be...
Be understanding to your enemies.
Be loyal to your friends.
Be strong enough to face the world each day.
Be weak enough to know you cannot do everything alone.
Be generous to those who need your help.
Be frugal with that you need yourself.
Be wise enough to know that you do not know everything.
Be foolish enough to believe in miracles.
Be willing to share your joys.
Be willing to share the sorrows of others.
Be a leader when you see a path others have missed.
Be a follower when you are shrouded by the mists of uncertainty.
Be first to congratulate an opponent who succeeds.
Be last to criticize a colleague who fails.
Be sure where your next step will fall, so that you will not tumble.
Be sure of your final destination, in case you are going the wrong way.
Be loving to those who love you.
Be loving to those who do not love you; they may change
Be loyal to your friends.
Be strong enough to face the world each day.
Be weak enough to know you cannot do everything alone.
Be generous to those who need your help.
Be frugal with that you need yourself.
Be wise enough to know that you do not know everything.
Be foolish enough to believe in miracles.
Be willing to share your joys.
Be willing to share the sorrows of others.
Be a leader when you see a path others have missed.
Be a follower when you are shrouded by the mists of uncertainty.
Be first to congratulate an opponent who succeeds.
Be last to criticize a colleague who fails.
Be sure where your next step will fall, so that you will not tumble.
Be sure of your final destination, in case you are going the wrong way.
Be loving to those who love you.
Be loving to those who do not love you; they may change
something not to do....
remember it...
Don't attempt to run from the past, it is always behind you.
Don't be afraid of opposition; Remember a kite rises against, not with the wind.
Don't be afraid of tomorrow, for God has already been there.
Don't be afraid to learn. Knowledge is weightless, a treasure you can always carry easily.
Don't be angry at a friend who told your secret, for neither could you keep it to yourself
Don't be concerned others not appreciating you. Be concerned about your not appreciating others (Confucius).
Don't be irreplaceable -- if you can't be replaced, you won't be promoted.
Don't be so Heavenly minded that you do no earthly good.
Don't control, be in control.
Don't count the days, make the days count. (Mohammed Ali)
Don't cry because it's over, smile because it happened.
Don't ever slam a door- you may want to go back.
Don't fear failure so much that you refuse to try new things.
The saddest summary of a life contains three descriptions: could have,might have, and should have.
(Louis E. Boone)
Don't get good at doing something if you don't like doing it.
Don't get married only because of the money. You can borrow it cheaper.
Don't judge each day by the harvest you reap, but by the seeds you plant.
Don't just get something out of church, put something into it.
Don't kill the dream - execute it!
Don't learn the tricks of the trade, learn the trade.
Don't let anybody walk through your mind with dirty feet. (Gandhi)
Don't let people drive you crazy when it is within walking distance.
Don't let time take control of your destiny.Let your destiny take control of your time.
(Ulrick Ricardo Milord)
Don't let what you cannot do interfere with what you can do.
(John Wooden)
Don't let your life slip through your fingers by living in the past or for the future.
Don't limit your challenges - challenge your limits.
Don't listen to what I say; listen to what I mean.
Don't love the things! you own, lest they own you.
Don't measure your life by how many breaths you take, measure it by how many times you get
your breath taken away.
Don't pray for easy lives; pray to be stronger people.
Don't attempt to run from the past, it is always behind you.
Don't be afraid of opposition; Remember a kite rises against, not with the wind.
Don't be afraid of tomorrow, for God has already been there.
Don't be afraid to learn. Knowledge is weightless, a treasure you can always carry easily.
Don't be angry at a friend who told your secret, for neither could you keep it to yourself
Don't be concerned others not appreciating you. Be concerned about your not appreciating others (Confucius).
Don't be irreplaceable -- if you can't be replaced, you won't be promoted.
Don't be so Heavenly minded that you do no earthly good.
Don't control, be in control.
Don't count the days, make the days count. (Mohammed Ali)
Don't cry because it's over, smile because it happened.
Don't ever slam a door- you may want to go back.
Don't fear failure so much that you refuse to try new things.
The saddest summary of a life contains three descriptions: could have,might have, and should have.
(Louis E. Boone)
Don't get good at doing something if you don't like doing it.
Don't get married only because of the money. You can borrow it cheaper.
Don't judge each day by the harvest you reap, but by the seeds you plant.
Don't just get something out of church, put something into it.
Don't kill the dream - execute it!
Don't learn the tricks of the trade, learn the trade.
Don't let anybody walk through your mind with dirty feet. (Gandhi)
Don't let people drive you crazy when it is within walking distance.
Don't let time take control of your destiny.Let your destiny take control of your time.
(Ulrick Ricardo Milord)
Don't let what you cannot do interfere with what you can do.
(John Wooden)
Don't let your life slip through your fingers by living in the past or for the future.
Don't limit your challenges - challenge your limits.
Don't listen to what I say; listen to what I mean.
Don't love the things! you own, lest they own you.
Don't measure your life by how many breaths you take, measure it by how many times you get
your breath taken away.
Don't pray for easy lives; pray to be stronger people.
something not to do....
remember it...
Don't attempt to run from the past, it is always behind you.
Don't be afraid of opposition; Remember a kite rises against, not with the wind.
Don't be afraid of tomorrow, for God has already been there.
Don't be afraid to learn. Knowledge is weightless, a treasure you can always carry easily.
Don't be angry at a friend who told your secret, for neither could you keep it to yourself
Don't be concerned others not appreciating you. Be concerned about your not appreciating others (Confucius).
Don't be irreplaceable -- if you can't be replaced, you won't be promoted.
Don't be so Heavenly minded that you do no earthly good.
Don't control, be in control.
Don't count the days, make the days count. (Mohammed Ali)
Don't cry because it's over, smile because it happened.
Don't ever slam a door- you may want to go back.
Don't fear failure so much that you refuse to try new things.
The saddest summary of a life contains three descriptions: could have,might have, and should have.
(Louis E. Boone)
Don't get good at doing something if you don't like doing it.
Don't get married only because of the money. You can borrow it cheaper.
Don't judge each day by the harvest you reap, but by the seeds you plant.
Don't just get something out of church, put something into it.
Don't kill the dream - execute it!
Don't learn the tricks of the trade, learn the trade.
Don't let anybody walk through your mind with dirty feet. (Gandhi)
Don't let people drive you crazy when it is within walking distance.
Don't let time take control of your destiny.Let your destiny take control of your time.
(Ulrick Ricardo Milord)
Don't let what you cannot do interfere with what you can do.
(John Wooden)
Don't let your life slip through your fingers by living in the past or for the future.
Don't limit your challenges - challenge your limits.
Don't listen to what I say; listen to what I mean.
Don't love the things! you own, lest they own you.
Don't measure your life by how many breaths you take, measure it by how many times you get
your breath taken away.
Don't pray for easy lives; pray to be stronger people.
Don't attempt to run from the past, it is always behind you.
Don't be afraid of opposition; Remember a kite rises against, not with the wind.
Don't be afraid of tomorrow, for God has already been there.
Don't be afraid to learn. Knowledge is weightless, a treasure you can always carry easily.
Don't be angry at a friend who told your secret, for neither could you keep it to yourself
Don't be concerned others not appreciating you. Be concerned about your not appreciating others (Confucius).
Don't be irreplaceable -- if you can't be replaced, you won't be promoted.
Don't be so Heavenly minded that you do no earthly good.
Don't control, be in control.
Don't count the days, make the days count. (Mohammed Ali)
Don't cry because it's over, smile because it happened.
Don't ever slam a door- you may want to go back.
Don't fear failure so much that you refuse to try new things.
The saddest summary of a life contains three descriptions: could have,might have, and should have.
(Louis E. Boone)
Don't get good at doing something if you don't like doing it.
Don't get married only because of the money. You can borrow it cheaper.
Don't judge each day by the harvest you reap, but by the seeds you plant.
Don't just get something out of church, put something into it.
Don't kill the dream - execute it!
Don't learn the tricks of the trade, learn the trade.
Don't let anybody walk through your mind with dirty feet. (Gandhi)
Don't let people drive you crazy when it is within walking distance.
Don't let time take control of your destiny.Let your destiny take control of your time.
(Ulrick Ricardo Milord)
Don't let what you cannot do interfere with what you can do.
(John Wooden)
Don't let your life slip through your fingers by living in the past or for the future.
Don't limit your challenges - challenge your limits.
Don't listen to what I say; listen to what I mean.
Don't love the things! you own, lest they own you.
Don't measure your life by how many breaths you take, measure it by how many times you get
your breath taken away.
Don't pray for easy lives; pray to be stronger people.
how to look busy....9 ways
how can u look busy...
1. Never walk down the hall without a document in your hands.
People with documents in their hands look like hardworking employees heading for important meetings.
People with nothing in their hands look like they're heading for the cafeteria. People with a newspaper in their hand look like they're heading for the toilet.
Above all, make sure you carry loads of stuff home with you at night, thus generating the false impression that you work longer hours than you do.
2. Use computers to look busy.
Any time you use a computer, it looks like "work" to the casual observer. You can send and receive personal e-mail, calculate your finances and generally have a blast without doing anything remotely related to work.
When you get caught by your boss -and you *will* get caught - your best defense is to claim you're teaching yourself to use new software, thus saving valuable training expenses.
3. Messy desk.
Build huge piles of documents around your workspace.
To the observer, last year's work looks the same as today's work; it's volume that counts.
Pile them high and wide. If you know somebody is coming to your cubicle, bury the document you'll need halfway down in an existing stack and rummage for it when he/she arrives.
4. Voice Mail.
Never answer your phone if you have voice mail. People don't call you just because they want to give you something for nothing – they call because they want YOU to do work for THEM. That's no way to live.
If your voice mailbox has a limit on the number of messages it can hold, make sure you reach that limit frequently. One way to do that is to never erase any incoming messages. If that takes too long, send yourself a few messages. Your callers will hear a recorded message that says, "Sorry, this mailbox is full" - a sure sign that you are a hardworking employee in high demand.
5. Looking Impatient and Annoyed.
One should also always try to look impatient and annoyed to give your bosses the impression that you are always busy.
6. Appear to Work Late.
Always leave the office late, especially when the boss is still around. You could read magazines and storybooks that you always wanted to read, but have no time until late before leaving.
7. Creative Sighing for Effect.
Sigh loudly when there are many people around, giving the impression that you are very hard pressed.
8. Stacking Strategy.
It is not enough to pile lots of documents on the table. Put lots of books on the floor etc... You can always borrow from library. Thick computer manuals are the best.
9. Build Vocabulary.
Read up on some computer magazines and pick out all the jargon and new products.
Use it freely when in conversation with bosses. Remember: They don't have to understand what you say, but you sure sound
1. Never walk down the hall without a document in your hands.
People with documents in their hands look like hardworking employees heading for important meetings.
People with nothing in their hands look like they're heading for the cafeteria. People with a newspaper in their hand look like they're heading for the toilet.
Above all, make sure you carry loads of stuff home with you at night, thus generating the false impression that you work longer hours than you do.
2. Use computers to look busy.
Any time you use a computer, it looks like "work" to the casual observer. You can send and receive personal e-mail, calculate your finances and generally have a blast without doing anything remotely related to work.
When you get caught by your boss -and you *will* get caught - your best defense is to claim you're teaching yourself to use new software, thus saving valuable training expenses.
3. Messy desk.
Build huge piles of documents around your workspace.
To the observer, last year's work looks the same as today's work; it's volume that counts.
Pile them high and wide. If you know somebody is coming to your cubicle, bury the document you'll need halfway down in an existing stack and rummage for it when he/she arrives.
4. Voice Mail.
Never answer your phone if you have voice mail. People don't call you just because they want to give you something for nothing – they call because they want YOU to do work for THEM. That's no way to live.
If your voice mailbox has a limit on the number of messages it can hold, make sure you reach that limit frequently. One way to do that is to never erase any incoming messages. If that takes too long, send yourself a few messages. Your callers will hear a recorded message that says, "Sorry, this mailbox is full" - a sure sign that you are a hardworking employee in high demand.
5. Looking Impatient and Annoyed.
One should also always try to look impatient and annoyed to give your bosses the impression that you are always busy.
6. Appear to Work Late.
Always leave the office late, especially when the boss is still around. You could read magazines and storybooks that you always wanted to read, but have no time until late before leaving.
7. Creative Sighing for Effect.
Sigh loudly when there are many people around, giving the impression that you are very hard pressed.
8. Stacking Strategy.
It is not enough to pile lots of documents on the table. Put lots of books on the floor etc... You can always borrow from library. Thick computer manuals are the best.
9. Build Vocabulary.
Read up on some computer magazines and pick out all the jargon and new products.
Use it freely when in conversation with bosses. Remember: They don't have to understand what you say, but you sure sound
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