Joseph Britt, Arthur Stock, and Will Vehrs
Elisha Sends the Bears to Wall Street
By Arthur Stock
Posted Tuesday, March 13, 2001, at 2:12 PM ETJoe and Will,
OK, Elisha didn't really send the bears to Wall Street. But the bear market arrived, and portfolios have suffered as much a tare as the two and 40 youths. The interesting question is: For the economy as a whole, does it really matter? I suspect that the bear market matters less in the long run than the headlines today indicate. The health of a profitable business doesn't depend on its stock price, except when it is seeking capital. A company like Microsoft, which has no particular capital needs, is capable of meeting its payroll, funding expansion, and continuing to innovate whether its stock is at 60 or 120. Even businesses with capital needs have some recourse. Corporate financing comes in two forms: debt and equity. When equity is harder to raise, more businesses will look to debt. Not necessarily a bad thing. (If it doesn't matter, why raise the topic? Responding to Will, and an irresistible headline.)
Investors' portfolios, too, will recover in the fullness of time. Reality check: When Alan Greenspan first mused about "irrational exuberance" in December 1996, the Dow was at 6,200, and the Nasdaq was at 1,300--and that was after a bull run. We are all still better off now than we were five years ago.
The stock market matters little in Danville, Va. I worked there in 1990-91. My 45-mile commute from Hillsborough, N.C., took 40 minutes. (Unlike Will, I had FM and NPR.) Rush hour traffic simply didn't exist--except during tobacco harvest season, when pickups piled high with leaf headed into the warehouse district.
Joe, you're right that Danville has the virtues of ample land and water resources and good weather. The mystery is why the boom economy that washed over the South bypassed it. How weak was the economy? We considered buying a home there and discovered it wasn't necessary. The municipality was offering homes it had repossessed for taxes, some of them dilapidated mansions of textile industry barons suitable for a family of 10, for FREE; you had to commit to stay for a period of years and agree to make repairs.
Danville was surrounded by economically strong small cities: Raleigh/Durham, Greensboro, Richmond, and Roanoke/Blacksburg. What they had that Danville lacked was big government, both state and federal. Specifically, they have the interstate highway system, public and private universities, and airports suitable for larger planes while Danville (with due respect to the very small Averett College) does not. Richmond and Raleigh also benefit from being state capitals, where lawyers, legislators, and lobbyists ply their trades and spread their wealth. Government can be the creator of prosperity as well as the collector of taxes.
Since we have reached disagreement on the tax side of the government, perhaps we can also disagree on the spend side? I'm also looking forward to further discussion on campaign finance reform. Don't worry, Will, we won't vote you off.
Until tomorrow (except in "The Fray"),
Arthur
Elisha Sends the Bears to Wall Street
By Arthur Stock
Posted Tuesday, March 13, 2001, at 2:12 PM ETThis week, three "star posters" from "The Fray" (our reader response forum) visit "The Breakfast Table." Joseph Britt is a Wisconsin free-lance writer with over a decade of experience working for state and federal officeholders. Arthur Stock, who uses the cybernym "History Guy," practices law in Philadelphia. Will Vehrs, who posts as "WillV," is a Virginia businessman. Reader Comments From The Fray:
[Notes from the Fray Editor: Hey, guys, wotcha doing up there? Is the air different? We're glad to see you haven't forsaken the Fray. The board is jumping: we are having to send out to the icon sweatshop for more stars, checkmarks and Slate signs, as we are using them up so fast. (For an explanation of the symbols, please click here.) And WillV, we have been known to describe the Fray as a dress-down-Friday kind of board, but now we find you don't wear make-up to post here…there's such a thing as too much informality.
Bluto says it's the end of the Fray as we know it: because all the posters will be writing solely to get checks and stars. That'll be the day Bluto. Helen Weber asks whether there are any women star posters. The answer is no, not right now. There are very few star posters (and if you have read the various explanations you know that the star is for the poster, not for individual posts: it recommends someone who has made good posts in the past), and as it happens no woman has been chosen so far. We hope to change that soon.]
Strut that stuff but watch out…
When History Guy announced in this Fray that he was going to propose to Slate a "Breakfast Table" made up of posters on the grounds that most of the BT chatter sent everyone back to bed, I chimed in that it was a terrific idea, since the Fray usually has the most interesting material on Slate. I didn't really think Slate would buy it, but it has and the editors deserve a modest round of applause.
Congratulations, Will, Joe, Arthur. But beware: now that you've been plucked from among the unwashed masses to become card-carrying members of the media elite, agents of the left-wing media conspiracy, lackeys of the right-wing globalist-corporatist masters of the media, uncounted numbers of ordinary folks who have their piece to say already are drawing a bead on you. By week's end, you may feel like an Afghan statue after the Taliban artillery have passed by.
--Publius
(To reply, click here .)
[Tuesday notes from the Fray Editor: History Guy's sister, we salute you. The Mendelsohns of blessed memory would be proud of you. Jennifer Mendelsohn , as WillV says, came into the Fray and said this "Can I viciously flame one of you for no reason? Anyone wanna get married?" Amber is proposing some more unholy alliance with Zeitguy. She also called for more viciousness in the Fray here (ever agreeable, Fray posters called each other names). She is obviously a trouble-causer, argumentative and high maintenance. Just the kind of poster we like, in fact, welcome Amber!
This "Breakfast Table" certainly worked the magic in The Fray. The enigmatic Dola, a sadly-missed poster, re-appeared. There was endless discussion of women posters, for example here: a subject we have never seen mentioned before but which is now a hot topic. There were absolutely stellar discussions, for example on military training and campaign finance, here, and on estate tax, here. The "Breakfast Table" participants did not disdain their spiritual home: they are to be congratulated for answering critics and friends and encouraging discussions in the most good-humored way.
We're just mentioning this: there is a very very bad taste set of jokes about military training accidents here: don't read if you are easily shocked or a Yankees fan.]
Full disclosure here: Arthur Stock is my brother. And though I would be stretching the point to say, as does the junior Senator from New York, that my brother "saddens me," I must say about this stance on the inheritance tax: enough! I am certainly as knee-jerk a liberal as anyone else in my family (who can forget mom's explanation in the voting both: "you can vote for whomever you like, but if you pull the Republican lever your arm will fall off?"), but must you be quite so adamant? Did our loving parents sweat and toil their 3-day-a-week jobs as professors so their hard-earned money could buy oversized berets for an armed service with astonishingly poor aim? I think not. I offer constructive advice: if you find the law unjust, just hand over your share of the inheritance to me. I'll take care of it. You're welcome to pay my taxes on it. As the junior Senator of New York would surely deny saying: That's what family is for!"
--Lil sis
(To reply, click here .)
[Final notes from the Fray Editor: Arthur Stock really got quite enough exposure this week, but we can't resist his leftovers post, here (and after all, he is a friend of both Marty Peretz and Scott Shuger, apparently). The idea of the peasants with pitchforks representing the Fray will amuse us in some long working day ahead.
This has been a great "Breakfast Table" and a fabulous Fray, interaction at its finest, and more stars, checks and icons than you could shake a stick at. Well done all round: for this week you all deserved gold stars. (You're not getting them, but that's another matter. Oh, except for WillV…)]
A wonderful conversation, easily the equal to anything we've seen from the "pros".
One thing that is particularly heartening to me is that although these three fellows claim to have different political affiliations and tendencies; their thoughts, suggestions, and exchanges abound with common sense and good-faith. Given the posturing that is common among professional pundits, and given the histrionics of the average webboard poster, this week's "Breakfast Table" is far and away better than anything I might have expected. This reflects well on the participants, of course, but it also says something complimentary about Slate's editorial staff.
Good job
--Keith M. Ellis
(To reply, click here.)
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Reader Comments From The Fray:
[Notes from the Fray Editor: Hey, guys, wotcha doing up there? Is the air different? We're glad to see you haven't forsaken the Fray. The board is jumping: we are having to send out to the icon sweatshop for more stars, checkmarks and Slate signs, as we are using them up so fast. (For an explanation of the symbols, please click here.) And WillV, we have been known to describe the Fray as a dress-down-Friday kind of board, but now we find you don't wear make-up to post here…there's such a thing as too much informality.
Bluto says it's the end of the Fray as we know it: because all the posters will be writing solely to get checks and stars. That'll be the day Bluto. Helen Weber asks whether there are any women star posters. The answer is no, not right now. There are very few star posters (and if you have read the various explanations you know that the star is for the poster, not for individual posts: it recommends someone who has made good posts in the past), and as it happens no woman has been chosen so far. We hope to change that soon.]
Strut that stuff but watch out…
When History Guy announced in this Fray that he was going to propose to Slate a "Breakfast Table" made up of posters on the grounds that most of the BT chatter sent everyone back to bed, I chimed in that it was a terrific idea, since the Fray usually has the most interesting material on Slate. I didn't really think Slate would buy it, but it has and the editors deserve a modest round of applause.
Congratulations, Will, Joe, Arthur. But beware: now that you've been plucked from among the unwashed masses to become card-carrying members of the media elite, agents of the left-wing media conspiracy, lackeys of the right-wing globalist-corporatist masters of the media, uncounted numbers of ordinary folks who have their piece to say already are drawing a bead on you. By week's end, you may feel like an Afghan statue after the Taliban artillery have passed by.
--Publius
(To reply, click here .)
[Tuesday notes from the Fray Editor: History Guy's sister, we salute you. The Mendelsohns of blessed memory would be proud of you. Jennifer Mendelsohn , as WillV says, came into the Fray and said this "Can I viciously flame one of you for no reason? Anyone wanna get married?" Amber is proposing some more unholy alliance with Zeitguy. She also called for more viciousness in the Fray here (ever agreeable, Fray posters called each other names). She is obviously a trouble-causer, argumentative and high maintenance. Just the kind of poster we like, in fact, welcome Amber!
This "Breakfast Table" certainly worked the magic in The Fray. The enigmatic Dola, a sadly-missed poster, re-appeared. There was endless discussion of women posters, for example here: a subject we have never seen mentioned before but which is now a hot topic. There were absolutely stellar discussions, for example on military training and campaign finance, here, and on estate tax, here. The "Breakfast Table" participants did not disdain their spiritual home: they are to be congratulated for answering critics and friends and encouraging discussions in the most good-humored way.
We're just mentioning this: there is a very very bad taste set of jokes about military training accidents here: don't read if you are easily shocked or a Yankees fan.]
Full disclosure here: Arthur Stock is my brother. And though I would be stretching the point to say, as does the junior Senator from New York, that my brother "saddens me," I must say about this stance on the inheritance tax: enough! I am certainly as knee-jerk a liberal as anyone else in my family (who can forget mom's explanation in the voting both: "you can vote for whomever you like, but if you pull the Republican lever your arm will fall off?"), but must you be quite so adamant? Did our loving parents sweat and toil their 3-day-a-week jobs as professors so their hard-earned money could buy oversized berets for an armed service with astonishingly poor aim? I think not. I offer constructive advice: if you find the law unjust, just hand over your share of the inheritance to me. I'll take care of it. You're welcome to pay my taxes on it. As the junior Senator of New York would surely deny saying: That's what family is for!"
--Lil sis
(To reply, click here .)
[Final notes from the Fray Editor: Arthur Stock really got quite enough exposure this week, but we can't resist his leftovers post, here (and after all, he is a friend of both Marty Peretz and Scott Shuger, apparently). The idea of the peasants with pitchforks representing the Fray will amuse us in some long working day ahead.
This has been a great "Breakfast Table" and a fabulous Fray, interaction at its finest, and more stars, checks and icons than you could shake a stick at. Well done all round: for this week you all deserved gold stars. (You're not getting them, but that's another matter. Oh, except for WillV…)]
A wonderful conversation, easily the equal to anything we've seen from the "pros".
One thing that is particularly heartening to me is that although these three fellows claim to have different political affiliations and tendencies; their thoughts, suggestions, and exchanges abound with common sense and good-faith. Given the posturing that is common among professional pundits, and given the histrionics of the average webboard poster, this week's "Breakfast Table" is far and away better than anything I might have expected. This reflects well on the participants, of course, but it also says something complimentary about Slate's editorial staff.
Good job
--Keith M. Ellis
(To reply, click here.)