Lost Decades by Menzie Chinn and Jeffry Frieden

Economists who can write! Amazing. I happened to come across this book while searching for another title I had heard about and was shocked at how accessible the material is. This is no text book.

These authors, including the University of Wisconsin economist Menzie Chinn, do an outstanding job of explaining how the economy nearly imploded back in 2008.

What was most enlightening about their account is that what happened to the US had happened to other countries in the past. Argentina, Mexico and Thailand are among them. We should have known better than to borrow so much from foreigners and then not adequately regulate the financial industry.

In fact, the authors say the U.S. gave advice to other countries that we failed to take ourselves, which got us into a situation that nearly collapsed the entire banking system.

"Many of the decade's failures were the result of a perversion of otherwise reasonable ideas, distorted for suspect motives," write the authors. They say there are good reasons to offer tax cuts, run deficits and accept foreign loans. And yes, it's good to promote home ownership, too. And now to the but. You knew that was coming.

"But in America's lost decade, taxes were cut to curry favor with the wealthy and middle-income voters, to make it easier to starve programs the ruling party did not like, and to tie the hands of future governments," the authors assert.

With all of that cash, consumers went on a spending spree and home prices soared. The party appeared to be endless, but the needle eventually scratched and many people shuddered when they lost their jobs, following revelations about complex, misleading financial instruments that many experts didn't fully understand. Importantly, Chinn and Frieden say the devastation to the economy and to families could have been avoided.

"...the root of all the evil that befell the country was irresponsible government policies, policies that encouraged a foreign borrowing binge and consumption boom, policies that allowed financial institutions to take inordinate risks with an implicit government guarantee, policies that gambled with taxpayer money."

They're referring to fighting multiple wars on a credit card without asking current taxpayers to share this burden, failing to collect enough revenue to cover our other obligations and offering cheap interest rates because of the flood of foreign capital.

They urge citizens to be vigilant about not allowing their government to act irresponsibly in the future. Their advice:

• Monetary policy must not be used for political purposes
• The fruits of economic growth must be shared widely
• Citizens must be willing to pay for what the government decides to spend money on
• The financial system requires supervision

Are we up to the task?

The Last Oil Change

I can't say I actually enjoyed it, but for the past three decades I have changed my own oil on two of our cars. Yesterday, I did it for the last time because we are selling the Camry to make way for the new Subaru. And I have no intention of doing any work on a 2014 vehicle. Hell, I have never touched our 2003 Acura, either.

Changing oil on an older car isn't too difficult though, but it is messy. I liked doing it because I could use the higher-end synthetic oil and not have it cost me $75+ for an oil change! And, I could do it safely, without jacking up the car and risk the thing crushing me. There's enough clearance under a '92 Camry that you can just slide under there, unscrew the plug and let it drain.

Never in those three decades did I make the mistake I made yesterday. I did not position the oil pan correctly and all of the oil spilled directly onto the garage floor. Ugh... Off to Shopko for cat litter and that pretty much sopped it up.

Otherwise, the experience over the years has been pretty uneventful, with the exception of the time all of the oil leaked out of my '85 Toyota Tercel and fried the engine. Yeah, that was a heart breaker.

On every oil filter there is a rubber ring that seals the filter to the engine. When I replaced my filter after an oil change, unbeknownst to me, that black rubber gasket came off the filter and stayed on the car's filter mount. When I put a new filter on after the oil change, I had no leaks and I thought all was fine, as per usual. But when the car heated up, rubber on rubber doesn't seal and the oil just squirted out. (The new filter has a rubber ring, too).

Perhaps the most notable takeaway from this experience is that it truly is nearly impossible for a regular person to do any maintenance on a modern car. You'd have to take off all kinds of stuff to get near plugs or hoses or oil filters or... It's just not worth it, and there's too much at risk if you screw something up. This is a distinct possibility for me, as I managed to find trouble on the simplest of cars!

No, I happily give up my oil filter wrench, messy pans and appropriately-fitted ratchet. And I certainly won't miss dumping off my waste oil and supplies at the Badger Road drop-off site. What I will miss is being able to do something with my car without having to rely totally on a mechanic.

Consumer Reports: Most Expensive Subscription Ever at $10

The federal stimulus package should have included a free subscription to Consumer Reports. If my experience is typical, that would have led to a buying spree this nation has never seen.

What I love about Consumer Reports are the gadgets and consumer tips. I never tire of reading about that stuff. And just recently, about eight months ago, I subscribed to it, possibly for the second time in my life. I don't recall. But what was especially notable is that it is so damn cheap. Ten bucks, and I got a free book and a crappy battery-operated radio, to boot. I'm sure the radio would have garnered black circles all around, had they reviewed it within their pages.

In the past, I'd seek out CR at the library and use it for research if I was buying a car or some other expensive item. But now that I'm a subscriber, I'm realizing that I'm buying more stuff because of it.

For example, around Christmas I bought the coolest green Hitachi cordless drill, complete with a fashionable case and blinding flashlight and extra battery. I didn't even know Hitachi made drills until the CR issue came out. Tops in all categories, and I had to have it. That, despite having two cordless drills already and three corded ones! Granted, the cordless ones I had were horrible and weren't even adequate for a non-handyman like me. The corded ones work perfectly, but there's that annoying cord!

Then, there are the new Whirlpool washer and dryer, also highly rated. We love them and they use less water and lack that mind-numbing buzzer. Our Maytags were in perfect order, but nearing 12-years old. Why not update and get something for the old ones while they're still operable? Thank you, CR.

And it only gets worse. We just dropped a bundle on a new car, an SUV, actually. Top rated in its class, of course, by CR. Our old Camry is only that, but works perfectly fine. Still, it sure would be nice to have a modern vehicle with all of those safety improvements. Yes, it will be!  4WD and blind-spot buzzer, here we come.

Yep, if the Governor and President really want to goose the economy and create jobs, they should cook up a deal with the folks at CR. Putting this magazine in the hands of 100 million consumers would have to have a bigger economic bang than bailing out bankers who fleeced the country and then used the taxpayer money for massive, undeserved bonuses for their inept and unethical workforce.

Thank Goodness for Bad Sales Managers

I don't buy cars often, but when I do I buy new and keep them a long time. I did my homework, test drove a couple of top candidates and decided which one to pursue. Our local dealer treated us well, but dropped the ball and ultimately missed out on a sale exceeding $30,000. Here's why.

I checked around at a couple of other dealerships about 75 miles away and they had slightly lower prices, but not enough for me to abandon the local dealer, especially since the salesperson is a friend of mine.

My friend offered to take the print-out quote from the other out-of-town dealer for the exact same vehicle and see if his manager would come down a bit more, even if he couldn't match the $500 lower price.

I had a check in my pocket, and was ready to just buy the car if he came down a bit more or offered us discounted extra features or something.

"No, he won't go any lower," my friend informed me after a few minutes. I was surprised by the manager's blunt reaction and didn't feel especially valued as a customer so I was in no hurry to buy at that moment. If the price was so set, I could buy it any time. Still, I thought it odd that such a high-end product would not have any wiggle room on the price. I've experienced this on two previous auto purchases, where I saved thousands by driving 90 minutes to the east.

When I returned home, my past auto buying experience was on my mind and I felt more motivated to see what other offers might be out there. Ah-ha! After a quick Google search, I discovered that there was a dealer I hadn't approached. I found the model I was interested in, and sent the email. Within a few minutes I had my quote. It was more than $2,300 lower than the local price that was set in concrete!

At first I thought it might be an error or they just wanted to unload this white car that was languishing on the lot. Since I preferred another color, I asked if she had the same vehicle in blue. The Internet manager found the version I wanted and came up with essentially the same price! I bought it the next day over the phone with my credit card down payment.

I did try to negotiate that price lower, but to no avail. The dealership was already selling it under cost. They do that sometimes because they'll miss out on the manufacturer's bonus if their dealership doesn't move enough cars that month. I learned this from an episode of This American Life, which explained how crucial it is to make that bonus each month. One manager interviewed for the show bought a car himself to reach his target number. His dealership could not lose that bonus!

In any case, thank goodness the sales manager at our local dealer didn't have the sense to at least come out from his office and meet me, explain how his margins are tight, but that he'd really appreciate my business. Had he done any of that, I would have cut the check and been done with it. This car is highly rated, his price was fair according to Edmonds.com and the prices I had seen were all very similar. Besides, I already decided I wanted this car.

The lesson for sales novices and pros is that even if you have a hot commodity, you're wise to show that buyer you'd appreciate his or her business. And at minimum, step out of your office and say hello.

The Other Talk Radio: Joy Cardin, Wisconsin Public Radio

The radio waves may be filled with talkers who have very strong opinions, but there's also a spot on the dial and on the Internet that offers informed conversation without the histrionics.

"We don't tell you what to think," Wisconsin Public Radio's Joy Cardin told Madison South Rotary members. "Our mission is to inform and present all sides of an issue," explains Cardin, whose program was named "Best Morning Talk Show" by the Wisconsin Broadcasters Association in 2012.

Despite the great attention and high ratings partisan, commercial radio talk shows get, Cardin points out that WPR's audience is growing to record heights.

"People are looking for news and civil discussion," she explains. And, the hosts do not spout their personal and political opinions on the air.

"We let our guests do the talking," says Cardin. Callers get a chance to chime in too and ask guests pointed questions themselves.

The biggest complaint Cardin tends to hear from listeners is, "I didn't like your conservative guest."  Generally speaking, Cardin says the electorate seems to have become quite polarized.

"Sometimes they (listeners) don't want to hear other views. Intolerance makes me sad," she says.

When asked what is driving this polarization, Cardin pointed to the proliferation of radio and TV programs where the hosts spout pointed opinions. In contrast, Cardin says WPR "promotes discussion so people can make informed choices."

To check out Joy Cardin's program, visit wpr.org, where you can also subscribe to her podcast.

Talk show host Joy Cardin, of Wisconsin Public Radio, spoke to Madison South Rotary today. Hear the main portion of her presentation by clicking the player below.

In Defense of Criminal Aptronyms--Wacky Wednesday

Say what, man?

One of the chapters in Wacky News Names focuses on names that come up in the criminal justice system, which include lawyers, judges and the defendants. My wife just discovered a real beauty.

In a story posted by the Wheeler Report, a court ruling yesterday lists a man convicted of selling THC, the mind-altering ingredient in marijuana.

The defendant's all-too-appropriate name is Kearney Hemp.

Younger Next Year

This book, Younger Next Year, was a gift, one which may well add some years to my life. But I didn't love it.

The authors, Chris Crowley and Henry S, Lodge, MD, make an admirable case for increasing the amount of exercise in one's life. And, I plan to implement many of their suggestions. But how the Washington Post could call it "hilarious" is beyond me.

The book is structured with alternating chapters by each author. Lodge is quite good and clearly explains the benefits of regular exercise, while Crowley's self-deprecating humor and advice got old very fast. His generalizations were even worse. Apparently, the audience for this book is a despondent, overweight man who never heard of the word, exercise. Here's an example of Crowley's sage comments:

"Everyone, everyone, everyone fears and dreads aging. And the possible emptiness of retirement. And death, which seems all of a piece with the other two. You think about that literal trio---emptiness, aging and death---all the time in your fifties."

Hmm. I do?  I guess we decrepit 50-year-olds are two steps away from jumping off the ledge. What total BS.

Thankfully, the actual content (sans the moronic  commentary) is pretty good. Both writers offer strong evidence for daily exercise, which will literally keep us younger and protect us from illness and injury.

Little of this stuff is brand new to anybody who pays attention to wellness, but they are all excellent reminders:

1. Exercise six days per week.
2. Do aerobic exercise four days per week.
3. Lift weights two days per week.
4. Avoid lousy food.
5. Maintain friendships and relationships

I'll throw in a sixth piece of advice. Read great books, especially ones that don't assume you're a total idiot.

Life Insurance editor: It's Wacky Wednesday

A friend of mine passed along an interesting aptronym the other day from the world of publishing. This person is the editor of a life insurance magazine. Appropriately, his name is Bill Coffin.

Med Screening Gains Undeserved Cred in Absence of MD Trust

An afternoon visit with relatives included a discussion about medical screening tests, advertised directly to church congregations, but also via newspaper inserts. The ads talk about how such tests can lead to discoveries that might prevent a stroke or heart attack. We all want to prevent those killers!

Their scans are scheduled for Tuesday, even though my wife and I tried to explain it's essentially a scam. These scans are modern-era snake oil, as there's no evidence that they are worthwhile, despite their high cost. In other words, it's unlikely that finding potential problems this way prevents bad stuff from happening. In fact, sometimes it leads to even more unnecessary testing, putting the patient at undue risk, as noted in this NPR piece.

But "a friend" told them such scans are worthwhile and they weren't interested in simply having a physical with a doctor, which would be much less costly and more effective in terms of heading off serious health problems. Nevertheless, what trumped our view is the fact that the relatives simply do not trust the medical establishment. Insurance costs a fortune, even under the new law and the deductible for them is crazy high. They dislike the system so much, they don't fully trust those running it (doctors). So instead, they'll order independent tests they want for peace of mind.

Ironically though, when they get the results, they're going right to a physician to get the results interpreted! The company scans them and their credit card, but that's it. If there is something that shows up, then they have to decide what, if anything, to do about it. Doctors have told me for years that there are lots of bumps and other things inside the body that present no problems at all, so knowing where exactly they are creates an unnecessarily tricky situation.

Unfortunately, excess medical testing is one of the biggest and most expensive issues in American healthcare. These screenings marketed directly to nervous patients are part of the problem, as is the lack of trust inherent in a system that is way too expensive and excludes millions of people.

DOT official commenting on alcohol-related crashes: Wacky Wednesday

The Wisconsin Department of Transportation specialist recently quoted in the Wisconsin State Journal discussed accident statistics related to drinking and driving. His name is...

A. Gary Rhodes

B. David Pabst

C. Lawrence Lane

The answer is B. David Pabst.

Madison: Illustrated Sesquicentennial History

Stuart Levitan's comprehensive history of the City of Madison from 1856-1931 is something to be savored. This book took me more than two months to read, not because it isn't gripping, but because it is so packed with information. One needs a bit of time for it to sink in. The author devoted a year of his life to researching and writing this book, and it shows in all of its meticulous detail.

Anybody who's lived in the city for any amount of time is familiar with the names chronicled in Madison because the streets and other locations are named for prominent people featured in the book: Doty, Nolen, Olin, Bascom, Fairchild and more.

Speaking of Fairchild, Jairus Cassiusus Fairchild served as Madison's first Mayor as well as Wisconsin's first State Treasurer. What was truly remarkable about Fairchild and the other early leaders of the city is that they often held multiple prominent positions over their lives.

Fairchild, who opposed Lincoln and the Civil War, had three sons volunteer to fight, nonetheless. In fact, his son Lucius lost his left arm at Gettysburg and would begin a storied political career of his own, becoming the state's first three-term Governor.

In similar contrast, city residents twice voted against Abraham Lincoln, some calling him a war monger. Despite that opposition, Madison sent more than its share of men to fight for the Union.

Madison, in coffee table style, boasts dozens of photos and sketches, documenting how Madison grew up to be the jewel she is today. Public drunkenness, polluted lakes and prostitution were all part of her history. But great leaders, often from the University of Wisconsin, helped overcome these problems and helped the city mature.

Remnants of the early era of Madison's history remain in the historic mansions of these early leaders that still stand in the streets surrounding the Capitol, on Campus and in other parts of the city. Read Madison and then better appreciate these structures, street names and public gathering spots named for them.

Give Humor this Season

$5 OFF UNTIL X-mas Eve

Laughter is the best gift to bestow to friends, family and co-workers. This collection of hysterically relevant names from the news will lighten up any holiday gathering and make for a unique gift. They're all real and they're all really funny! Doctor Frankenstein wrote the foreword, sharing what it's like to be one of these folks who have an amazingly apt name. You''ll read about more than 700 others.

Order now by clicking the cover and get $5 off by using the coupon code, humor. 

Use coupon code "humor" for $5 off

Johnny Carson by Henry Bushkin

The lovable, perpetually smiling comedic genius America knew so well, Johnny Carson, was an entirely different person beneath the facade.

He raged internally, author Henry Bushkin suggests in his new book by the comedian's name, because of the cold mother who refused to offer him any affection, no matter how successful and enormously popular he became. Johnny Carson, beautifully crafted with anecdotes, is so laden with examples of her boorish behavior it makes me wonder if Carson's mother suffered from mental illness.

Bushkin describes his intensely close business/personal relationship over 20 years as Carson's attorney, adviser, drinking budding, tennis pal, globe trotter and multiple other roles the tormented comedian demanded. But the two men were not friends as any normal person would define that term, even though Carson himself once told a reporter that Bushkin was his "best friend." But the author said there was no doubt who was in charge, because when Carson barked, Bushkin came running.

He describes both Carson's remarkable and enduring talents, as well as the prima donna syndrome the Tonight Show host suffered from. He'd explode in anger if the slightest thing went wrong. Carson particularly liked to blame whomever he was closest to for whatever problem just occurred, and that often was the author. Being a punching bag was part of the job requirement to float in the star's orbit.

For example, Bushkin says Carson once railed at him after the big stock crash in 1987 and why he didn't get him out of the market earlier. He played plenty of roles for Carson, but the author says he had nothing to do with stock picking! Carson had somebody else for that.

Carson's personal life was a shambles by any measure. A four-time husband, he admitted to Bushkin in one of their first meetings that he "wasn't good at marriage" and that the attorney always needed to remember that. Indeed. Three divorces caused the comedian a fortune and he was separated from #4 when he died alone from emphysema. Carson was a four-pack-a-day smoker.

Being so famous and wealthy attracted an endless stream of beautiful women who apparently didn't care a whit that the guy was married.

For Carson, Bushkin explains, marriage was a desirable and natural state because it provided a home, stability and somebody always at the ready to accompany him at social functions. Apparently, its value ended there. The man described in this book had no interest in an actual relationship or real intimacy--with anybody! He had demands, both personally and professionally, and anybody who failed to meet them was banished from his kingdom, never to be spoken to again. Eventually his longtime adviser, Bushkin, joined that list.

What was so striking about this narrative is that Johnny Carson was such a charismatic figure that people would do and give up almost anything to please him. The author himself admits to eventually emulating Johnny's relationship habits and blew his role as husband and father to what appears to be a wonderful family. Buskin's wife finally tired of Johnny always coming first.

How about all of these wives? His indiscretions were not secrets to them, yet they signed on for this. He often gave expensive jewelry to wives who caught him with his pants down. But eventually, they, or he, had enough, too and the legal process ensued.

Carson's personality, as described, strongly resembles that of other artistic geniuses, including Steve Jobs, Elvis Presley and Frank Sinatra. Would their success not have been possible had they been able to relate to others in a healthy way? My psychiatrist friends could certainly pontificate on that one for a while.

The more positive aspects of Johnny Carson's persona are also richly detailed. Bushkin describes how Johnny calls him into his office to claim that somebody is stealing cash out of his wallet every single day. He kept about $1,500 in his pocket at all times, in addition to a 38-special.

They installed cameras in his office and sure enough, one of his office assistants was shown lifting the cash out of his jacket pocket. You'd think the tyrant we've been reading about would have immediately fired the guy. But no. Johnny gave him a raise!

Carson genuinely liked him because he otherwise did an excellent job. I guess he figured if the man needed money that badly a raise would stop the stealing.

Carson was also known to send off large checks, including a $100,000 one to a restaurant owner who fell on hard times, when somebody close was struggling. He had all the cash in the world with which to be generous and live a lavish lifestyle. Despite it all, from the Rolls Royces to the mansions to the gorgeous babes and public adoration, I felt sorry for this man. He did not have a wonderful life, but he did enrich ours. Until I read Johnny Carson, I did not know that.

Bushkin described Carson as a complex man. Indeed he was.

Boob Job Snares Mobster

http://www.cbsnews.com/news/the-gaskos-capturing-whitey-bulger/

I listened to this 60 Minutes podcast during my walk today and the segment on the mobster Whitey Bulger was especially good. They described how this lunatic evaded the cops for 16 years.

An important tip and a little advertising brought this notorious murderer to justice.

Memoirs: SAIL Luncheon Nov. 22, 2013, Madison

"I thought the cow was eating him," the doctor explained. This was among the memoir examples I told to a great luncheon audience at Attic Angel last month. You can hear the entire presentation by clicking the player below.

Steve Busalacchi speaking to SAIL.

Ira Roth: Wacky Wednesday

A person named Ira Roth popped into the news back in 1998. What did Mr. Roth do for a living back then?

1. He was a Roth IRA specialist for a mutual fund company

2. He was a soldier in the Irish Republican Army.

Scroll down for the answer.

Answer: #1. Ira Roth was a specialist in Roth IRAs for Strong Mutual Funds.

"There's a girl in my bed."

I attended UW Madison in the early '80s when a fascinating situation occurred on the tenth floor of my dorm, Witte Hall. In those days, an upper classman was assigned to be the "house fellow." He or she would help Freshmen transition to campus life, as well as address other issues associated with living in the dorms. Our house fellow was a jovial guy named Maurice who had to deal with one of those other "issues."

Identical twin brothers lived on my dorm floor, both of whom were very talented pianists, but one painfully shy. He was a nice guy who barely said a word and when he did, you had to lean in to hear him.

One evening, the quiet kid, Tom, gets out of bed in the middle of the night and knocks on Maurice's door. Glassy-eyed, the house fellow opens his door and finds Tom, standing there.

"There's a girl in my bed," Tom deadpans.

"Well, good for you," cracks Maurice, half-asleep. "Why are you bothering me?" he asks.

"No, no…" Tom starts to explain. "I have no idea who she is. She just walked into my room and climbed into my bed. She's still there."

Maurice shakes his head, gets dressed and goes down the hall to investigate. A house fellow's work is never done.

Sure enough, there's a drunken young lady sleeping in Tom's bed. I don't recall whether or not she had clothes on, so I imagine she did. I'd have remembered a naked girl in his bed. Much better story, but I digress…

In any case, it turns out, shockingly, that this student had way too many drinks, stepped onto the elevator in the right building, road it to the tenth floor, walked down the hall and entered "her room." The problem was that she lived on the ninth floor and not the tenth! She did, however, go to the right-numbered room on the correct side of the hall. Those hallways do indeed look identical.

 I've always thought that of all the wrong rooms to stumble into inebriated, in an entire dorm filled with horny guys, this one was by far her safest miss. It's the one you'd hope your daughter wanders into, if she were to make a similar room-identification error while tipsy.

Think of the quietest, introverted person you've ever met and you will know Tom—the guy who complained to his house fellow about a college girl who hopped into his bed in the middle of the night.

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Wacky Wednesday: Jack Armstrong

Jack Armstrong is ...

1. an arm wrestler.

2. a pitcher.

3. a weight lifter

The answer is at the bottom of the page.

Jack Armstrong pitched for several major league teams, including the Rangers from 1988-1994.

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Family Memoirs: TEDx Madison 2013

This talk is 14 minutes long.

Wacky Wednesday: Linda Toote

Linda Toote is a...

1. G-I specialist who specializes in flatulence

2. flutist

3. service technician for a horn company

The answer is...Linda Toote is a flutist, formerly playing for the Milwaukee Symphony Orchestra.

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