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Recently I read about in the past four years.    It’s really not a surprise to me because I have seen the rapid rise in cost of living, taxes, and unemployment in the past few years.  Combine that with a state government that is in constant turmoil and you have a very stressful and unstable situation to be in. However, is the California dream really dying?

In my mind, the California dream is much more glamorous and adventurous than .   For example, every Chinese person I know still calls San Francisco “Old Gold Mountain” because of the Gold Rush.  The gold ran out, but the legend of sailing halfway around the world to California for treasure still remains. The dot com bubble burst, but some lucky few still made out like bandits and new entrepreneurs are still trying to strike it rich in the Silicon Valley.  The California dream gives people high expectations to become the richest or the most famous, but it also dishes out  big disappointments. The fact of the matter is that most people cannot attain the California dream.  Not everyone can become a movie star, and not everyone can be a dot com millionaire.

I have lived in California for almost 12 years now and I have seen both of my parents’ next door neighbors move out of state.  One of the families sold their home for a dandy profit and headed up to Oregon, and the other packed up to go to Washington.  Now my inlaws have packed up and left for the Philippines after living here for over 23 years and raising two children.  Honestly I am a little jealous, and a little curious as to if they love where they are now, but I think they have achieved their goals in California.

There are a lot of things about this state that I love even though sometimes I am so frustrated by all the things going wrong.  I love the innovative energy in the Silicon Valley, and the mostly sunny skies.  I love the diversity of people here and the availability of cuisines from all over the world.  This is also the state where I got a pretty decent college education even though my parents paid for it through tuition and oodles of taxes.  California is where I grew from a child into an adult, and for better or worse it is  a part of who I am.

It is very unlikely that I will leave California since pretty much my entire immediate family is here.  My husband is adamant that he would probably never leave California since he has lived here since he was two and my parents have worked pretty hard to be here.  This is home, and it is messy and screwed up, but it is still home. I am pretty sure it is going to get worse, but I also think that the innovations of Californians will make this the place to be once again. The California dream will live on because everyone dreams of a life beyond the ordinary, but perhaps right now it doesn’t seem like California is the best place to realize that dream.

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I’m sure you have heard about President-Elect Barack’s Obama’s new push to pass a stimulus package.  I couldn’t find a a comprehensive article about the details of the plan, but what’s being reported the most in the media are the tax cuts which make up about 40% of the package.  Here they are, and here is why I think they are mostly nonsensical and probably would not do much to lift the economy.

cialis best pricecialis best price- I know that every bit of money helps, but is this really the best way to spend billions of dollars in stimulus money?  $500 per person works out to be about $40 per month.  I guess it’s good for a cable bill, but will $40 per month stop a family from going into foreclosure?  Will $40 per month be enough to stop local shops from closing?  Another thing is, didn’t we just have a round of stimulus like this from the Bush administration?  That one was actually $600 per worker or $1200 per couple plus $300 per kid.  Just look at how much that helped and you’ll see how much this one will help.

cialis best price – This one has so many holes that it’s like a piece of moldy Swiss cheese.  First of all, if a person lost a job at business A and then finds a job at business B, is business B really cialis best price a job? It seems like that would be a net gain of 0 jobs to me.  Additionally, some businesses are doing well and some are doing poorly.  The ones that are doing poorly are very unlikely to hire someone just for the tax benefit because adding an employee is very expensive and it would only make sense to add an employee if the employee’s output of work can bring a profit.  On the other hand, the businesses that are doing well may already be planning to hire people and they will get stronger due to the tax rebate, but they probably did not need that money to begin with and again this tax rebate would have been pointless.    Another thing is that it’s unclear how long a company needs to keep an employee to claim this tax benefit and what type of employment it would be.  If those details are not clear I can see shady businesses exploiting this by hiring some person part time for half a month and then claiming the credit for a profit.  Anyway, I don’t think this tax stimulus will actually be an incentive for any logical business to add to their payrolls and I highly doubt that this will bring about a net gain in employment numbers.

cialis best price- This particular item isn’t mentioned a lot on the big news sites probably because it’s just bizarre.  I see this particular clause benefiting the giant financial firms the most because they have had the most significant losses in the last year, and they also had the biggest profits in the years prior.   A lot of companies in other industries did not suffer as badly, and the good responsible companies that were still making a profit in 2008 will not get a boost.  Again, there is no guarantee that the companies that receive this benefit will create jobs and expand the economy.  In fact, I think in this economy only the strong companies that still have a profit are still hiring because they know that they can get discounted labor and they are in a good position to use the extra labor effectively.  It is almost like Obama wants to punish the companies that had good management to make a profit despite difficulties by giving their tax dollars to those who may have been extremely irresponsible and I think it’s plain stupid.

Finally, there is a question that everyone should be asking “WHERE THE  (insert your favorite expletive here)  WILL ALL THIS MONEY COME FROM?” Oh that’s right, they will just add it to the national debt, and that will be paid by Americans for generations to come.  I know that Obama’s plan isn’t finalized, but so far I haven’t heard a single good idea from him, yet.

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When I was in Southern California there was a truly bewildering story of a man who dressed up as Santa and murdered nine members of his ex-wife’s family, and when I came back to the Bay Area I read about something even more disturbing. In the past week the most bizarre and tragic story in the Bay Area has been the shooting of 22 year old Oscar Grant by a young BART police officer.  I only saw the more “conclusive” cellphone videos today and I have to say it is truly incomprehensible.  The young man was clearly on the ground and secured by more than one officer, and then the second officer stands up and pulls out his gun and fires into the victim’s back.  It took several seconds for the officer to take out the gun and the whole thing really looked like an execution and it is just unbelievable.

A lot of people including myself are wondering why the officer did what he did.  Apparently in the past there had been two more incidents where BART police blew away unarmed people, but this is the first time when citizen reporting with cellphone cameras have brought so much attention to a BART shooting.  According to the police immediately started to confiscate cameras after the incident, but a few people managed to keep their phones since their traincar left the station just in time.  Technology has made it possible for everyday folks to watch the watchmen, and that is comforting and yet disturbing at the same time.

The aftermath of the incident is yet to be played out.    Right now there is a protest at the Fruitvale BART station and trains are passing the station in both directions. more than 500people have showed up around 6pm and the station was closed since protesters blocked the fare gates.  The protest is scheduled to last another 2 hours.

Then there is the lawsuit a lawyer filed on behalf of the family.  The family is seeking $25 million dollars from BART, and it’s sad to say that this will be a Pyrrhic victory at best since no amount of money will bring Oscar Grant back.  BART could probalby cover the costs of the lawsuit with their liability insurance, but I am sure more public funds will be spent and ridership might even decrease a bit.  This is not good for the public since BART is such a vital service for so many people here in the Bay Area, but there has to be some accountability.

These horrible stories just show that you may never know when you will meet your maker, and you are never as safe as you think.  The police are supposed to be peace keepers, but some people let power get to their heads.  The classic showed that ordinary people who are put in positions above others stepped over the boundaries and I am sure it happens every single day.  Thankfully the internet gives the people a little bit of power back.

Finally, I offer my condolences to both the families of Oscar Grant and the officer.  I hope noone else gets hurt in the midst of this and we don’t have  full scale Rodney King-esque riots here.

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Sometimes I just read something so amusing that I feel fortunate to have read it. Well, today my ex-coworker sent me a link to former hedge fund manager Andrew Lahde’s goodbye letter and it is one of these funny manifestos that made me laugh. Andrew Lahde managed Lahde Capital, which had a 870% return last year because he shorted subprime mortgages. Today he announced that he is quitting the business in a that I thought was the most sensible thing I have read in more than a month. Here are some takeaways.

cialis best price – In Lahde’s words, these idiots were “low hanging fruit” that “were (often) truly not worthy of the education they received (or supposedly received) rose to the top of companies such as AIG, Bear Stearns and Lehman Brothers and all levels of our government. All of this behavior supporting the Aristocracy, only ended up making it easier for me to find people stupid enough to take the other side of my trades. God bless America.”

cialis best price – I write about this often, and it is refreshing to see someone actually quitting the grind even though he has the potential to earn so much more money. Andrew says that he will “let others try to amass nine, ten or eleven figure net worths. Meanwhile, their lives suck.” He also says that legacy is pretty overrated because people will forget Steven Balmer and Larry Ellison eventually so “throw the Blackberry away and enjoy life.” He also mentioned that he will try to recover his health, which is more important than chasing new deals.

cialis best price- I think after witnessing the string of bailouts that marginally benefit everyday folks, we could agree on the point that the government is pretty broken. Lahde wants to see a forum where smart people come together to make up a better government. He thinks of the forum as Linux going against Microsoft. I don’t see that as very likely, but it’s fun to fantasize.

cialis best price- This is probably the longest section of the letter, and possibly the most amusing. He makes some good points about how hemp is a really useful plant that was outlawed by a government that allows advertising for alcohol and more addictive drugs for the sake of money. My ex-coworker said, “I can just picture this guy lighting up half way through”.

Anyway, have a good weekend everyone. Live a little away from your computers and Blackberries, and as my crazy Spanish teacher would say, “No fuma drogas!”.

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Today the Dow Jones Industrials dipped below 9000, and it seems that there is no end in sight. Believe me, I am feeling the pain in my 401ks and IRAs, but life goes on, and I still have a job and I am still quite busy. I truly believe that the reason I and many others have a job right now in the Silicon Valley is because of the last bubble. When the NASDAQ lost more than half of its value and dot coms died left and right the Valley returned to frugality and good business practices and we all should be thankful for it.

When the last bubble happened I just started at UC Berkeley, so I missed all of the crazy IPOs and block parties. After I graduated, I did join a startup, but it was clear that it operated very frugally. It was profitable and maintained a positive cash flow with only one round of venture funding. This company is still operating right now. Since then I have joined two more small private companies and both operated the same way. Overall, I think the companies thriving in the Valley now are better quality businesses than those companies that shot up to $300 a share on the Nasdaq and then died in an ignominious fashion complete with auctions of office furniture.

As a result of the dot com bubble, even venerable technology companies became more frugal than they were and held onto their cash. This is why Microsoft and Hewlett-Packard are able to do stock buybacks this year. My last company actually issued a stock dividend because they had the cash to do so. At least technology companies became more aware of the importance of having a cash reserve for a rainy day, and it sure is pouring right now.

Another thing that happened in the Valley is that IPOs became as elusive as albino koalas. Again, I believe this is a positive thing because if there were rampant IPOs then companies would have overhired again and the fall would be very very hard. A more popular exit strategy for small companies was to be purchased by Google/Yahoo/Microsoft, and again, these large companies were able to do these acquisitions because they held onto oodles of cash.

I hope the housing bubble will serve as a lesson to everyone involved just like the dot come bubble did to the tech industry. The technology sector has become wiser and is now on more solid footing than a lot of other industries. We will all feel pain from the fallout of this financial crisis, but hopefully banks will return to better business practices and people will learn to live more frugal lives. That is actually exactly what happened after the Great Depression. We had a generation of extremely frugal folks and decades where the middle class prospered, but unfortunate history is often forgotten, and repeats itself over and over again.

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