Scandi Festival

I helped my Masonic Lodge staff a food booth at the Scandinavian Festival last week. When I arrived, I was handed a fake-embroidery vest and a pointed hat that looked like a limp dunce cap. Our specialty was meatballs on a stick. I assumed they were called meatballs-on-a-stick, so when a customer asked me for a frickadeller, I asked her what she was talking about. She pointed to our big sign (which I hadn’t read), and looked at me as if I had pretty much ruined the exoticism of her gustatory experience.

Another customer asked what kind of food we had. I knew what kind of food we had. We had Costco precooked sausages and Don Juan tortillas, but I didn’t know what kind of food we were supposed to have. I called Donald over since Donald was the only one of us who actually knew what he was doing. “It’s Swedish,” he said. Of course, Swedish meatballs, why didn’t I think of that? Maybe for the same reason that I don’t know what countries constitute Scandinavia. Sweden and Norway, I suppose. Denmark, perhaps? Finland possibly? Do I care? A little.

I neither hated my shift nor loved it. Mostly I watched women, felt mildly annoyed when we had customer, and wondered if everyone else who was serving food (eating appeared to be the point of the festival) was as fake as we were.

The sad story of American Home Mortgage

Last week, I lost $14,000 in the stock market. I didn’t do anything wrong—it was just a bad few days. Still, $14,000…. I pick up pennies from the sidewalk. If someone gave me $14,000 to actually spend, I would be stumped.

I gain and lose money all the time in the stock market (I surely lost several thousand more today), but I don’t normally track my investments. I simply look at my monthly statements, groan or smile, and file them away.

My investment style is a combination of whatever looks good at a particular time (I buy but seldom sell), and my desire to protect Peggy from volatility. When we got into the market, she worried about how I would react to losing money, but I soon realized that she was more grieved by it than I. She interpreted every up as a fluke and every down as the start of Great Depression II. I accepted both as normal, and held to the belief that, over time, the market would go up more than it went down. The worst down we saw was 40%, and that was okay. It wasn’t something to sneeze at, but it wasn’t tragic either.

My first thought upon investing in stocks was to buy low and sell high. Everyone thinks that, only it’s harder than it looks—a bit liking throwing rocks at darting night birds. That’s why I mostly stopped selling, that and the tax liability.

Over the years, I felt like I should study investing more, but the subject didn’t interest me so I kept putting it off in favor of work that I could stand back and look at. Things like remodeling projects. In the last month, I’ve been making up for lost time. The main thing I’ve learned is that even knowledgeable investors have trouble making a significant amount of money in the market (although losing a significant amount is easy enough). Finding a way to beat the market is like finding a cure for the common cold. If scientists can cure a rare cancer, surely they can cure a common cold, or so it would seem, but after decades of work and millions of dollars, colds remain defiant. This gives my market studies a dismal air because, there being no one to tell me what will work, I might do really well, or….

The impetus to today’s sell-off was the fall of American Home Mortgage Corporation. This evening, I saw a graph of its demise that was updated every five minutes throughout the day. A year ago, AHM was selling for $36 a share. Today, it opened at $10.47. At 2:00, it was still at $10.47. By 3:00, it was $1.14. Picture that graph. First, a long horizontal line. Then a sharply descending vertical line. Then a slightly wobbly horizontal line. Then nothing. Like a heart monitor on a dying man.

Imagine that you woke up this morning in Houston or Milwaukee, and went to your job at AHM expecting an ordinary day, and then top management announced to Wall Street that bankruptcy was looming. Bang! By mid-afternoon you’re out of your job and possibly your savings. That’s drama. I once heard about an economist who was so moved by graphs that he sometimes cried. I can see that now, and it makes studying the market a lot more interesting.

The whys of organizing

I’ve spent the week organizing, or rather reorganizing, our finances and file cabinets. One of the traits Peggy and I share is that we are born organizers. The difference is that I organize everything—socks, tools, pantry shelves, even the kitchen junk drawer, whereas she is a selective organizer. She’s content to let things overflow in her purse, desk, and closet; but her checkbook is an accountant’s envy, and her button collection is displayed so symmetrically that a flea couldn’t crawl through the margin of error. I stop short of such perfection, though I still qualify as neurotic by most standards, my garage being tidier than other people’s living rooms.

Well, anyway, I organized this week. It was such fun that I had to force myself to go to bed at night. Organizing is, of course, an attempt to control reality—to make it safer, tidier, more predictable. The problem is that reality is inherently dangerous, messy, and unknowable. The harder I try to tame it, the more aware I become of its dangers, and the greater my need to eliminate those dangers.

The most frightened man I ever knew carried a .45 everywhere, even into the shower (he put it in a baggie). I visited him once. He had a yard alarm, and every time a squirrel walked by, that alarm would go off, and my friend would run to the window with his .45. So it is that prudent watchfulness can grow into full-blown paranoia. On the other hand, the world really is a dangerous place, and it makes sense to try to avoid the most likely dangers.

The trick here, as in all things I suppose, is balance. But where is the fulcrum? I don’t see it. Do you see it?

The whys of organizing

I’ve spent the week organizing, or rather reorganizing, our finances and file cabinets. One of the traits Peggy and I share is that we are born organizers. The difference is that I organize everything—socks, tools, pantry shelves, even the kitchen junk drawer, whereas she is a selective organizer. She’s content to let things overflow in her purse, desk, and closet; but her checkbook is an accountant’s envy, and her button collection is displayed so symmetrically that a flea couldn’t crawl through the margin of error. I stop short of such perfection, though I still qualify as neurotic by most standards, my garage being tidier than other people’s living rooms.

Well, anyway, I organized this week. It was such fun that I had to force myself to go to bed at night. Organizing is, of course, an attempt to control reality—to make it safer, tidier, more predictable. The problem is that reality is inherently dangerous, messy, and unknowable. The harder I try to tame it, the more aware I become of its dangers, and the greater my need to eliminate those dangers.

The most frightened man I ever knew carried a .45 everywhere, even into the shower (he put it in a baggie). I visited him once. He had a yard alarm, and every time a squirrel walked by, that alarm would go off, and my friend would run to the window with his .45. So it is that prudent watchfulness can grow into full-blown paranoia. On the other hand, the world really is a dangerous place, and it makes sense to try to avoid the most likely dangers.

The trick here, as in all things I suppose, is balance. But where is the fulcrum? I don’t see it. Do you see it?