Jay C Leon's Blog

After driving my wife's last car into the ground we broke down and bought a new one this week.  Thinking that everyone in our country ought to make purchase decisions with the balance of trade in mind, we committed early to buying an American car.  

After driving all kinds, we settled on a Jeep Liberty.  It is an awesome car, just big enough but not too big.  Just tough enough but not too tough.  

There were a few revelations during the process:

The process at the car dealership (Bellevue Chrystler Jeep) was awesome.  Our salesperson, Joe Langhans took great care of us -- and once we decided to buy -- we were done in under 2 hours -- awesome.  Of course I was prepared for the worst -- but it did not even come close to happening.  I recommend Joe and his dealership highly.

I made a comment during the purchase process that Americans should buy American made cars and the reaction:  Republicans think like that but not Democrats.  Hmmm.  I had never thought about it that way before.  Today Rham Emanuel and our President are getting blasted for saying not very nice things about the UAW and its products.  Maybe a little leadership will bring the D's back to buying our cars.

David Brooks has a good post in the NY Times yesterday where he compares the strategies of the US (big stimulus) and Germany (small stimulus) and the outcome: US not recovering and Germany growing big time.  I would add one thing:  stimulus spent in a wasteful way doesn't do any good.  In fact it does harm because it increases the deficit and debt load.

Germany spent its money and energy stimulating the production of products other countries want like machine tools.  We spend our money and energy propping up failed banks and expanding benefits for the unemployed.  While the comparison of the size of the stimulus is one data point, how it is invested is the other.  

We all should be watching the trade deficit as the most important measure of our success.  It measures how successful we are as a country producing products and services that other countries value enough to buy.  Right now our trade deficit is increasing -- so whatever stimulus money is making it past the bankers is being spent to buy products made elsewhere.

If you want a quick and high quality update on the state of cybersecurity you should watch this episode of Ideas In Action.  Thousands of companies have been compromised, our government is spending billions, but are we doing enough?  Do we think there is a real threat?

If foreign governments are gaining access to our computer networks and stealing everything from designs of weapons systems to the formulas for drugs, is it an act of war?

Earlier this year I was at a conference where a cyber crime panel proclaimed that 50% of all credit cards are compromised and the banks know it -- but they don't want to say anything for fear it would destroy the marketplace for credit card services.  These compromised credit card numbers are routinely sold on the black market for 10% of the available balance.  So whoever is buying them plans to use them.  

Just yesterday I wanted to send some iTunes money to my daughter and found that Apple no longer does email iTunes gift cards -- I suspect because of the fraud.  

Many experts are waiting for the cyber crime equivalent of Pearl Harbor to wake up America and bring about the changes necessary to secure our systems from attack.  

We probably should all be thinking more about this.

In our country government is less powerful than business.  This is probably the most visible in the military industrial complex, but there is evidence that the lobbyists call the shots in other areas as well.  A few months back I wrote in this post that Wall Street would not be regulated until it decided it was in its best interest to be regulated. 

Since then our representatives in Washington passed the financial reform bill in an effort to manage the forces that lead to the last melt down and possibly prevent a repeat.  During July, the very month the legislation passed, individual investors took $15 billion more out of equities than they put in, and so far this year, the total cash flow out of the stock market has been $33 billion.   The people are voting with their wallets and the verdict is that the stock market is not safe for the individual investor - reform legislation or not.  

If you don't know who the sucker is at the poker table -- it is probably you.  A couple more years of this and the Wall Street firms may just start asking for real reforms to reassure the public that the market is regulated and safe.