September Madness

For those of you who follow both college basketball and the financial crisis, this one's for you (click to enlarge).

Edit by Emma: As a courtesy to John, I am adding to this entry with a little further information about his employment situation rather than creating a new entry and cause any readers we may have to miss the clever graphic above. Yesterday Lehman announced that it has sold parts of its investment management division to Bain Capital and Hellman & Friedman. However, most of the Lehman private equity funds, real estate private equity included, were not part of that sale. We are still waiting to see if/when a buyer will materialize for real estate private equity. Best case scenario is a few more weeks before anything gets done.

Financial Crisis and Presidential Politics

My friends,

I am acutely interested in both presidential politics and the financial crisis. Given my interest in these topics, I thought I would share the following video, which offers an interesting perspective on the origins of the banking crisis and how it relates to the presidential election.



OK, so the video is a bit over the top. I acknowledge that. To some extent, I feel that the legitimate points raised in this video are undermined by the partisan nature of the last three minutes or so. While I don't agree with everything in the video, I think it is worthy of analysis because it discusses one of the causes of the financial crisis that is rarely considered in the public debate: The Community Reinvestment Act (CRA).

The CRA, as expanded by the Clinton Administration, had a worthy goal of making credit available to underserved and less affluent segments of the population. No one likes discrimination, right? Everyone should have an opportunity to buy a home, right? The problem was that banks, against their desires, were forced to provide credit and home loans to low income segments of the population.

The CRA, with help from an extended low interest rate environment, seemed to be accomplishing its objective: it was easier for everyone, particularly lower income families, to purchase a home and get approved for a mortgage. Great news, right? It certainly felt great for several years while home prices kept climbing and lenders didn’t experience materially increased defaults and foreclosures.

But then, like any other bubble, the housing market burst. Home prices declined sharply, defaults and foreclosures increased dramatically, and the mortgage-backed securities (MBS) business was turned upside down. Since the largest financial institutions holding MBS are highly and irresponsibly leveraged (some as much as 30:1), our entire financial system is experiencing a meltdown due to inadequate capital reserves. Bear Stearns. Fannie Mae. Freddie Mac. Lehman Brothers. Merrill Lynch. AIG. Washington Mutual. Wachovia. Who’s next?

I am not a huge fan of putting $700 billion of taxpayer money at risk to buy toxic MBS. While this government intervention may be necessary to prevent a financial catastrophe, it is important to remember that this government intervention is needed in part to fix problems caused by the CRA, a prior government intervention into the free markets.

And, importantly, the financial crisis was also caused by irresponsible lending practices and greed amongst financial institutions that were eager to profit as the housing market bubble inflated.

Let me know what you thought of the video and post by leaving a comment. I'm trying to generate a discussion.

Bankruptcy diet

Take any healthy eating plan. Eat everything prescribed by your plan. The add one or more of the following:

-3 cookies' worth of dough, 6 baked cookies, half tub of frosting, granola bar

-half a pizza, half a bag of candy corn

-etc, etc, etc

Avid readers may remember my pledge in April to finally lose the last five pounds. This was one month after Bear Stearns' collapse. Let's just say things haven't exactly gone as pledged. But what's a girl with too much nervous energy to do? Sitting around the apartment. Watching the economy collapse. Worrying. And look how happy eating makes us.

Until we realize it also makes us fat, that is.

For religious reasons, smoking, drinking, and most mind-altering substances are out. I already exercise. Any other ideas, preferrably ideas that can be implemented with an almost toddler in tow?

The sun will come out tomorrow?

I'm going to start out by apologizing to John for what I'm sure he will deem "ANOTHER depressing post." Give me some better news to work with, honey, and I'll write happier posts.

On the job front, no news is bad news, it seems. Of particular note in this article, consider the following: "Another factor is the private-equity business, which has assets of about $35 billion in almost 40 funds. The buyers and Lehman have weighed a number of options over how to include some or all of that business in the proposed sale to Bain and Hellman. One issue is some of the funds' viability given financial commitments made by the now-bankrupt holding company."

Reading between the lines, even if/when a sale of investment management is finally wrapped up, it's likely not all the private equity funds will be included, particularly funds where Lehman had pledged to invest as a limited partner and has unfunded capital commitments, a situation that holds for both of the funds in John's group.

Just to add that final knock-out punch, the uncertainty over all things job related means we now have to cancel our trip to Italy (after prepaying for airfare, hotel, and train transfers). No more fun, romantic vacation where I can sleep in as late as I want and have absolutely no responsibility all week long. The thought of this child-free vacation was pretty much the only thing that got me through the first few months of sleepless nights with a newborn. Luckily, I'm not as sleep deprived now as I was then, and I no longer feel that a vacation sans baby is my only hope of a good night's sleep.

Oh, and yesterday, Evelyn popped another stitch, which means that we're paying the plastic surgeon $200 today to remove one lousy suture. He's scheduled us as a "cosmetic consultation"; maybe I should consult about getting some work done to make it worth the fee?

Luckily, we did get a snippet of good news this week. My sister Laurel has finished her fourth-year medical school rotations several months early; she got off track because she went on an 18-month mission for our church after second year and therefore has significant time off before starting residency next summer. I've been using all means at my disposal to convince her to come live out here. Apparently, I was at least somewhat successful because she's driving out to interview for a tutoring position this weekend. If anyone has any other ideas of how a wicked smart, gorgeous girl in her mid 20s can make an honest living in the city for a few months, send them our way. We're pulling out all the stops to convince her to stay, and not just because we need the free babysitting.

(Although . . . given all the job uncertainty and the cancellation of the vacation that was supposed to repay me for 6 months of chronic job-related stress, I have to admit I'm pretty excited about that possibility as well.)

It's been a long September

They say bad luck comes in threes? Well, that should mean we're done. Last week:

1 - John's company went bankrupt.

2 - John saw a mouse in our apartment.

3 - We took our first visit to the emergency room. Forty-five minutes outside the city in New Jersey. During a dinner party at John's boss's house. It doesn't get better than this, folks.

John worked most of the day Saturday (after imparting the happy information contained in 2 above to me as he was departing, leaving me alone in the apartment; or not alone; which is sort of the problem). Evelyn and I went to the ward picnic in the morning (yay) and then went down to midtown to deliver cupcakes to a conference room in the east 40s in celebration of my dad's birthday. He's in town on business, but very busy, so that was the extent of our birthday celebrations.

After we were done entertaining (ok, ok, distracting) my dad's coworkers, we aimlessly wandered around midtown calling John every 1o minutes to hear when we should meet up to catch the train to a dinner party at his boss's house in New Jersey. We finished our cupcake party at 3:30. His boss had suggested people take the 4:11 or 5:11 train. John was in a meeting with senior executives in Private Equity and was not able to return my calls. He repeatedly emailed me to tell me what was going on, not knowing that I was in midtown without a BlackBerry. So unfortunately, we did not connect on the phone until John's meeting was over at 4:44. By the time he made it out of the building at 5:01, there was no chance of us making the 5:11 train. We ended up taking the 6:11 train instead, which was fine other than the fact that our host (who was incredibly gracious about it) had to make an extra trip to the train station to pick us up. So we're already the slightly flaky/needy guests.

The party was lovely. Wonderful food. Great company. We were really glad we had made it. Evelyn even behaved relatively well. Then, just as things were winding down and people were starting to head out, she took a step toward the bookshelf, lost her balance, and fell into the books; the shelf cracked her pretty hard right between her eyes on the bridge of her nose. It was bleeding, and I could tell she would need stitches, so we had to ask our host to leave his guests (again) and drive us to the local emergency room. Four stitches, three xrays (no broken nose, thank goodness), and two hours later, we left with admonitions not to let her rub the stitches and to make sure she doesn't reinjure the area for the next several months. Perfect. I'll get right on explaining to my 11 month old that she shouldn't rub at the insanely itchy spot on her forehead and that she shouldn't fall in such a way as to bang her head in that spot again.

I was hoping a new week might mean happy times were here again, but I woke up this morning to find that Evelyn had ripped out one of her stitches. Despite having her hands stuffed in sock mittens all night (sock mittens: old socks with holes cut out for her thumbs). Why couldn't she have gashed her arm or her leg, some location where scarring isn't such a big deal?

* * *

With regards to 1 on the list above, no we don't know anything else. Yes, we were hoping something would be wrapped up the middle of next week, and no, sadly, we don't know when well know more, but we'll let you know. Enough uses of the word know in one paragraph? Probably.

With regards to 2, we're hoping it's not a major problem as we have not seen "signs" of any visitors until just the past couple of days, and even then, only minor signs. The exterminator comes on Thursdays. I have some home improvement projects that should help to finish in the meantime. Projects we were supposed to do together this weekend. Projects preempted by 3.

Also preempted by 2 and 3 above? A dentist appointment on Thursday that I have already rescheduled twice now needs to be rescheduled again since Evelyn's stitches come out that day, and the exterminator comes that day. They're really going to love me over at the dentist's office.

* * *

Happier times

Playing in the park on Wednesday (9.17)

A gash/scar-free nose on Friday (9.19)

Overheard

E: Hey! Welcome back! How was your trip?

S: About as good as could be expected. Didn't get much sleep. I think the 'rents learned their lesson about redeye flights, though, so that's worth something.

E: I hear you. We had a rough night a few months ago on our way to Vegas. Ever since then, I've had my own seat. Hopefully yours are quick on the uptake, too.

S: Here's to hoping.

E: Love your pants by the way. I picked up a pair for fall. So cozy.

S: These? Oh, they're just something I throw on when we're out and about for errands. Speaking of out and about, can you believe this weather?

E: I know! My "assistant" forgot my sweater this morning. I was freezing!

S: That's rough. Hey, can I grab a circle? Thanks, you're the best.

E: Anytime. Aw, look at that. They're talking and laughing and everything. We really should do this more often - get the girls together.

S: It is nice to watch them entertain each other like this. Next week at the park? She really seems to enjoy the swings - must be the calming effect of pushing.

E: Sounds good to me.

Making me nauseous right now

Well, you can probably guess.

I can see us, giving up on our city dreams, moving out to a little house in the suburbs with a midsize sedan and a used minivan. It's the dream for most people who start out here, but this sweet vignette gives me a bit of a stomachache. I'm not ready to go.

There is hope. A quick sale of Lehman's investment management business could preserve its value (and John's group) relatively intact. This would truly be an all around win - for the division's clients, for its employees, for creditors of the now-bankrupt parent company, and for an already saturated New York financial unemployment market. That's where our prayers are headed for now, at least. Wish us luck!

* * *

When she woke up this morning, John said, "She doesn't even know."

How lucky is she?

Although I think that's a little simplistic. She may not know, but she can sense. Why else would she be so grumpy today?

At least the coffee guy's got Lehman's back...

Remember

On those days when it seems like the world around you is collapsing (melodramatic much, Emma?),

just remember.

It can. Literally.

It hasn't yet, to me or to you.

We're still here.

Be grateful.

That is what I hope to teach Evelyn, at least, when every year I cry on this day.

That and always try to have some kind of shoes you can run in or climb down dozens of flights of stairs in within easy reach. Emergency preparedness is more than just canned wheat and 72-hour kits, baby.

A sign or a test?

Tomorrow I go in to dot the i's, cross the t's, and turn in my blackberry and security badge.

Today, Lehman stock plummeted 45 percent.

A sign that I'm making the wrong decision? A trial of faith to see if I will persevere in the decision that is right for our family?

What do you think?

All the news that's fit to print

The past week and a half have been alternately busy and dead quiet. For the first time since Evelyn was born, I went 2.5 days without leaving the apartment other than to take out a random dirty diaper. Didn't even make it down to the mail box. I actually don't really encourage this, but we simply could not take one more humid day. Not one more! Thankfully, Hanna seems to have helped a little, and today didn't seem quite as sopping. Please, please let fall come soon.

In better news, we had a pretty fun labor day weekend. On Thursday (August 28), Evelyn took her first unsupported step. She hasn't moved to full on walking yet, but usually a couple times a day we'll see her take one, two, or even three steps. Hopefully, we'll be leaving crawling and its associated dirtiness behind soon. (Other cute tricks? Blowing kisses, blowing on food to cool it down, and saying "uh oh" before dropping things. I don't think she really understands the accidental nature of "uh oh" yet.)

Then, Ruth had her baby Friday morning, very kind of her as it really started my weekend off on the right foot. John worked only a couple hours on Friday, and after nap, we all went to the park. Fun ensued.

Food, fun



Frisbee, fun

On Saturday we went to Kathryn and Mike's for crepes.


When we got home, Evelyn spent some time in the penalty box (her choice).

Later in the evening, John and I bit the bullet, paid for a babysitter, and finally went on a date! She did a great job, and we'd love to have her every week. Unfortunately, our pocketbooks probably can't handle a babysitter every week, but hopefully between trading and paying, we can work out something relatively regular. The movie was so-so, but the company was good, and so was the chocolate.

Sunday, we enjoyed an incredible dinner at Dan and Diane's new place, complete with birds (two blue, one white). And baby, pointing at the peacocks while saying, "ba" "bo" "boo" and other variations of things that start with the letter "b", which certainly does not constitute actually saying bird but is still somewhat cute since she's just now getting the hang of pointing.

Monday, we kept the weekend alive by going to Benihana's for lunch. Evelyn thoroughly enjoyed the Japanese steakhouse experience.


We thoroughly enjoyed trying to keep little fingers away from the hot cooktop. And watching the cook flip the little shrimp tails up, with the last one landing in his pocket. That trick just never gets old.

After such a fun weekend, we had to hit it hard this week. Serious stuff, you know?

Picking out clothes.

Also, reading, 'riting, 'rithmatic, and a genuine scientific study (on cruising). We even got a little diploma and a fridge magnet photo to document the experience (if any of you have seen episodes of "The Baby Human" on the Discovery channel, we were at the lab where they did some of the walking and crawling experiments featured - the babies walking down the slope, the babies crawling across the gap, etc). Evelyn was a pretty good sport but did not like everyone all up and in her face when it came time to take her measurements. Measurements which proved that it's not just us - she really is getting bigger. At 11 months, she is 29 inches and between 21.5 and 22 pounds.

I do not have a picture to document this next incredibly momentous development, but on Thursday morning, when I went to get Evelyn out of her crib, for the first time in, oh, 10 months and 30 days, no eye drainage! Mere weeks before she would have gone under general anaesthesia for her blocked tear duct, it finally, finally cleared up on its own. Not having to dig in your almost-toddler's eye every hour is a really beautiful thing, and I'm savoring each minute of not trying to peel crusted gunk out of her eyelashes. Heaven.

We didn't ignore the chance to celebrate. Saturday we took our first trip up to Fort Tryon Park and ate brunch at a little cafe in a 1930s cottage just down from the Cloisters. It was lovely. Afterward, Evelyn and her chaperones dropped by Sydney's place for a little visit. We ended up staying for several hours. Thanks again, Marc and Kaedi for letting us play with your toys, letting Evelyn nap in your room, inviting us to watch the game, and loaning us a bottle and some formula.


From Evelyn's subway-riding euphoria, it's obvious how much she enjoyed the day.