Archive for the ‘Rants & Musings’ Category

Yo, Lloyd!

January 14, 2011

Sebastian Mallaby, author of More Money Than God: Hedge Funds and the Making of a New Elite, has written an oped in the FT (subsciption likely needed) highlighting the exquisitely self-interested spinelessness of Goldman, Sachs, which has just published a hippy-shit manifesto of promises to love its clients more after paying out a bunch of money to the SEC rather than defend its conduct and business model in court. Particularly righteous is Mallaby’s defence of hedge funds, which have taken such media stick in the past couple of years when it was really the money pigs of the investment banking establishment who deserved the spanking. I don’t go a bundle on either group as a species, but the Wall St. investment bankers are so obviously more malign.

All you actually need to read of Mallaby’s piece is the last two pars, so here they are:

‘The truth is that investment banks are rife with potential conflicts – first between their trading and that of their clients, and second between various classes of customer, whom banks may serve as advisers, market-makers, underwriters or as a fiduciary. No amount of yogic incantation can harmonise these split personae; the solution is to break banks into functional units, so that merger experts, marketmakers and proprietary traders no longer cohabit. A refashioned Wall Street of specialist boutiques would be healthier for customers. And since the boutiques would be smaller than today’s megabanks, they might be small enough to fail.

Of course, this has long been evident to anyone who cared to look. An army of specialist advisory firms and hedge funds – ignorantly attacked as “shadowy” because they lack publicists and friends in Washington – has sprung up on the principle that focused private partnerships are preferable to conflicted behemoths. But for years policymakers have shrunk from challenging the big investment banks, comforting themselves with the thought that if the customers did not like them they would vote with their wallets. The customers, for their part, have been either awed or ignorant. Perhaps Goldman’s pieties will encourage them to wake up.’

I am not sure the very last bit is quite right: that customers have gone with the investment banks only because of awe and ignorance — though there is plenty of both about. Customers have also gone with big investment banks because the regulatory structure hasn’t given them options. You can’t go to a hedge fund for an IPO or working capital. The politicians are therefore doubly to blame. And who has put more of its people into senior US political jobs in the past 20 years than any other big bank? Goldman. One day I will blog about my bizarre encounter with Hank Paulson in a West Virginia toilet.

Video highlights I

October 20, 2009

Internet connection speeds in rural Umbria, which were are low as 11,000 baud (via a mobile phone) at the start of the decade, are now just about fast enough to watch video. If you are somewhere with genuine first-world communications technology, or in Umbria and can cope with a bit of buffering, try the two following, unrelated, clips.

The first features Bird and Fortune, British comics, explaining the financial crisis. Select the ‘Bird and Fortune’ entry on this Financial Times list of videos. The analysis seems to me at least as good as what you get in the regular FT, but it is quite a lot funnier.

The second video is an interview with the son of the two people whose untimely deaths I described in ‘Not so hip’ (a copy of which is here in the Parenting category). It is conducted by Italy’s own Beppe Grillo, best-known for organising crowds to assemble in town piazzas and shout ‘Fuck Off’ in unison at Italian politicians. Mr Grillo and supporters have come to the rescue of the son, Rudra, although it is my understanding that the Pietralunga commune did also offer his uncle a state job so he could look after him.

The surreal and the banal

October 11, 2009

A series of incidents in recent weeks makes me suspect that life is becoming weirder than ever. First, the locals around our house in the Apennine hills insist that two brown bears have been seen in the area. The central Italian brown bear, ursus arctos marsicanus, is supposed to be all but extinct, killed off (like so many dogs) by poison left by hunters, and by poachers. The bears may also be culturally unsuited to contemporary Italian life since they are famously monogamous. Still, the neighbours insist that two of only a few dozen remaining bears have made their way to northern Umbria from the national park of Abruzzo.Brown bear_rear_paw_print The local media blame the Aquila earthquake for precipitating a journey of many hundred kilometres. I suspect myself that the repeated visits of Silvio Berlusconi to the region may be a contributing factor.

 

Our son, now five, announces he will capture the bears and return them to their home. A quick online search reveals these bears weigh several hundred kilos and have claws up to 15 centimetres long, so I count myself out. Luca laughs in the face of the reported danger, and marches off into the woods, backed up by a sister and mother. He is increasingly assertive. Not long after this, I come back into the house from the garden to find him listening attentively on the telephone. ‘Who is it, Luca?’ I ask, assuming his mother. He holds up an arm, gesturing that I should not interfere. ‘Yes,’ he says gravely into the mouthpiece. ‘I see, I see… that is important.’ I go off into the kitchen while the conversation continues. After a couple more minutes, Luca comes into the kitchen and I hear him say: ‘So would you like to speak to Mr Studwell?’ He hands over the telephone. It is a journalist from Voice of America wanting comment on the latest Chinese corruption scandal. Next time I’ll just ask Luca to give his own view. This would suit the journalist, who is disconsolate when I say I do not know the details of the case and so cannot comment.

 

Another stranger than fiction moment is the Italian government’s decision to give a state funeral to television quiz master, Mike Bongiorno.mike_bongiorno This is a little like Ken Dodd being carried on a gun carriage through Hyde Park on his way to interment in St. Paul’s, with the royal family walking behind in Knotty Ash outfits. The queen would begin a funeral oratory with the words ‘What a lovely day for sticking a brush up…’ and the congregation would all wear false buck teeth. I am not necessarily against such a celebration when Dodd passes, but in England it is not going to happen. Kenneth DoddIn Italy, by contrast, it does. Mike, of course, was a great defender of Silvio Berlusconi. He died in Monte Carlo.

 

Up in Trieste for a couple of days’ break with the wife, the surreality is capped when I turn on the television (for perhaps the first time in a year) and what should be showing but that interview. I find the added details of Berlusconi’s conduct deeply uninteresting. What fascinates is the studied unpleasantness of the two running dogs who represent him on the programme. They just look and sound, to me, so amoral and horrible. And this is the big point with Berlusconi: everyone who dislikes him tries to focus your attention on him – but it is not about the man, it is about what he reflects in Italy, just as what was most interesting about George W. Bush was what he reflected in America. The sharpest, cruellest and most provocative thing to have been said in Italy in recent months came surely from Berlusconi himself when he declaimed, with unintended import, that: ‘Most Italians privately wish they could be like me and recognise themselves in me and the way I behave.’ Ouch.

 

To be honest, I am feeling mildly sympathetic to Berlusconi as the constitutional court strips him of his immunity from prosecution. The political left has scented blood and is desperately trying to paint a monochrome picture in which Berlusconi is black and everyone against him is white. Yet Berlusconi is quite right when he asserts that the Italian judiciary is shockingly politicised and often deeply unprofessional (on this subject, see the upcoming review of The Dark Heart of Italy). Of course, he doesn’t quite put it this way. He just calls anyone he doesn’t like a ‘lefty’ or a ‘commie’. And he also doesn’t speak from particularly high moral ground since he faces more accusations of graft than Al Capone. So a reasoned debate about how to reverse the long-term decline of Italy and make it a happier place to live turns into the usual slanging match. The latest episode saw Berlusconi phoning up a late night television show to say the president should have used ‘his influence’ to get a different decision from the constitutional court. Challenged by a woman on the programme, he dismissed her as ‘more beautiful than intelligent’.

A few things, you will be relieved to learn, are running to form. What is technically the International Bank for Reconstruction and Development recently released its annual World Bank Doing Business report, which shows that as a place to set up a business Italy has dropped another 21 places in the past year, falling to 75th  in the world (but, hey, there are more than 180 countries in the world). As a place to run a business, Italy comes 78th in the world, one place below Panama (which, if you are interested, is deemed to be a far easier place to start a business). The World Bank report complements the latest International Monetary Fund (IMF) forecasts which predict that Italy’s economy will shrink 5.1 per cent this year after contracting 1 per cent in 2008; the economy has grown less than 1 per cent a year on average since 2000. What is particularly striking about the latest forecast for Italian economic shrinkage is that it is substantially greater than that for either the UK or the US, the countries that are seen as the twin epicentres of the current global financial crisis. Perhaps this is all another conspiracy against Silvio. Perhaps.

Le tre vaselle (Torgiano, Umbria)

June 22, 2009

This restaurant is part of a small hotel in the centre of the village/small town of Torgiano, headquarters of the Lungarotti wine group, located south-east of Perugia, just off the E45. From Citta di Castello it is something under an hour by car…

I am not in a period of my life when I am much taken with expensive restaurants. I seem to get cheaper as I get older, or at least I place ever more value on things that are good and at a price that puts them within reach of (almost) everyody. Nonetheless, we had a good lunch at Le Tre Vaselle, which is quite pricey (though not, of course, by London or other big city standards). I can’t tell you what it actually cost because a Sicilian friend snuck out and paid for everybody, offering the lame excuse that as the only person born in Italy he was constrained to do this. Antipasti and primi are around Euro10-12, secondi more like Euro16-26. We didn’t drink wine, apart from a nice half glass of prosecco which they gave us unsolicited.

The portions are made so that some people will want to eat three courses and a dessert. We started with zucchini flowers stuffed with a light mix of lake Trasimeno freshwater prawns, passed momentarily under the grill; these and the accompanying sauce were pretty good. Then I went for pastry-wrapped veal (not had this in Italy before) with three types of pepper, while others had topinambour-stuffed half-moon ravioli with a truffle sauce, and bavette pasta (like tagliatelle, but thinner) with tiny prawns. Topinambour is what the English call Jerusalem artichoke; according to the wife, the Italians named it after a Brazilian dance troupe that was popular in the country when the root vegetable was introduced; whereas the English name Jerusalem is here believed to be a perversion — as a result of mishearing — of girasole (sunflower plant), to which family topinambour is related. Anyhow, everyone was happy, especially the consumer of the seafood bavette, which I always think is tempting but very hard to do well (the ‘amatriciana dilemma’ if you like). To finish we ate some cherries and shared a plate of cinammon ice-cream.

What can I say? We hadn’t seen each other for a long time and there was a new baby, so it was always going to be a good lunch. The restaurant has a somewhat institutional feel, but it was actually rather nice to be somewhere quiet and a little formal. And the food fits with the modest formality. The deal sort of reminds me of the Taverna del Lupo at Gubbio. We will, at some judicious moment, return.

Not so hip

June 19, 2009

 A sad story gets sadder. Our friend Claudia calls to say that Roberta’s funeral is to be held this afternoon. Roberta was one of the many Italian hippies who live in the area between our house and Pietralunga. She died from liver failure related to hepatitis, and complicated by drinking — not least after doctors told her she mustn’t. She was Neapolitan, born to a well-to-do family and she chose the hippy life; she died in her forties. Her octogenarian mother, a quiet, diligent and practical woman who to many seemed indestructible, passed away in March. In October 2007, Roberta’s husband Aldo Bianzino (or perhaps partner, I never asked) died in prison custody after being arrested by police for growing marijuana; he was also in his 40s; a homicide case is, needless to say, outstanding. (There is an outline in Italian on this site and a short letter to the Italian government in English from a pro-legalisation group here.)

So in a beautiful, tiny and now rarely used cemetery in the nearby hills three graves in a row have been dug and filled in the past 18 months for the same small family. Of those living locally, only Aldo and Roberta’s son Rudra (lots of Indian names in Pietralunga…), still of school age, survives.

 Not being partial to a chillum before breakfast and doubting the power of their sacred fire statues, I didn’t know Aldo and Roberta intimately. But Aldo was a more than competent carpenter who made most of the doors and the very fine and very heavy kitchen table in our house. Indeed I wonder what he might have achieved if he hadn’t been so stoned: I once spent five minutes watching him trying to hang a door that he was holding the wrong way up; on another occasion he cut through both a piece of wood and the  tape measure he had laid out next to it with a circular saw, paused for several seconds, and then said: ‘Ooooooooooogh’. While Aldo was anorexically skinny and diffident, Roberta was frenetic, endlessly talkative and a lethal driver in the finest Neapolitan tradition. The two of them were capable of spectacular arguments. Our friend Lele recalls the first time he met them, when they came round to his house to talk about carpentry work. Earlier that day, Aldo had suggested to Roberta that she talked too much. So Roberta had cursed him and sworn that she would never in her life speak again. Lele opened the door to find Aldo, who then sported a mat of long dreadlocks and a bushy beard on top of his tiny frame, dressed in his modified Indian garb and covered from head to foot in sawdust. He said nothing. Next to him, a wild-eyed Roberta produced sounds but no words, and made zipping gestures across her mouth interspersed with occasional gestures towards Aldo. As I recall, they got the job.  

The site of the cemetery is below the house of Raidas, which is the nom de paix (or whatever hippy sobriquets are called) of one of the senior members of the group. In a previous life, he was Mario from Bologna. The house was a priest’s house, attached to a tiny church, and bought from the curia around 20 years ago. If Hollywood was scouting for a setting for a new movie called Love Children of the Appennines, the director could do worse than this place. Outside the little church is a shaded seating area with the biggest cherry tree I know, and below that a simple but elegant garden. There’s also an Indian temple thingy, all very tastefully done.

In reality, from what I have seen, however, the story of the group has not been Hollywood fare. Instead there have been suicides, other premature deaths, and pervasive depression. Of course one can’t make clear judgements, because one doesn’t know what experiences and what predispositions led individuals into the group in the first place.  But it hasn’t been an easy ride.

We follow the coffin from the house down to the cemetery. Although I would have thought that few of those present would claim to be Christian, one of the Pietralunga priests presides and most people participate in the Roman Catholic gesticulations. Roberta is laid to rest by the gate of the cemetery, which is walled. She is separated from Aldo by her mother which, while they undoubtedly loved one another, may be a sensible arrangement. Flowers, mostly those of ginestra, and candles are set out on the grave. It is swelteringly hot, but people take their time to say goodbye. And then they wander, in ones and twos, back up to the house. I talk with people I haven’t seen for some time. Lele chats with the lawyer in the Aldo homicide case. And then I make my excuses and leave.

The situation with respect to Rudra is potentially a huge mess, not least because of Italy’s patchy and idiosyncratic welfare state. But I suspect that it is one of those situations that is so horrible that somebody in the system will do something. Roberta’s brother is willing to move down permanently from Munich, where he has lived for many years, to look after Rudra while he finishes his schooling. But he needs a steady job in order to do so. My guess is that the Pietralunga Commune, which knows all about the case, will find him one.

Big and small boys’ toys

June 12, 2009

Pestered with the usual impressive application by my four-year-old son, we stop at a bar next to the Cerbarra petrol station for a pasta, and there meet Mario and Carlo from nearby Agrisystem, out on a coffee break. Of all the people I know who run businesses in the area, I think I like Mario and Carlo the best.

Why? Because they take responsibility for the stuff they sell. When you buy something from them, you know that if something goes wrong they will sort it out.

We pop over to get a can of pre-mix for the strimmer; it costs more but I find the petrol/oil mix from petrol stations highly corrosive of the plastic tank and tubes on my strimmer. The machine doesn’t consume much fuel, even with our large garden, and it starts first time with the stuff Mario sells. Since we are there, he invites Luca, 4, to select a tractor-mower he would like to drive from the large assemblage outside. Moments later, Luca cruises by in the biggest tractor there is. I get to stand around pretending I wouldn’t be interested in driving it myself.

Luca pronounces himself impressed with the number of buttons on the machine, which far exceeds the complexity of our own ten-year-old bottom of the range affair; focusing, as ever, on the critical issue, he informs Mario that we need a tractor with headlights for ‘night-time work’. Mario agrees that his father is indeed a fool for not having one.

A couple of days later, I get a reminder of why Mario and Carlo (the mechanic) are people who make life easier. The tractor-mower’s ignition is broken. The grass is long, and growing. Mario would come out if asked, but we can get the machine on the back of the pick-up  truck (tied up, with the back door open). So I call him. He says he has every part that could go wrong with an ignition in the warehouse and he will put a new battery, which I have been avoiding buying (by jump starting when it is cold) for a year, on charge. I say I’m in a hurry and he says that if I come down the next morning, they will do the work while I wait. In the event, it isn’t necessary as I have other things to do in town. So I leave the tractor and pick it up in the afternoon. Carlo, as a matter of course, has sharpened the cutting blades and set the tire pressures.

Before we leave, there’s just one more thing: ‘Luca — which tractor?’ He goes for a mid-size yellow one, again with a lot of knobs and headlights, and loads of gears. I try to do my not-interested face.

Liberal parenting I: teach them the classics

March 18, 2009

Leaving Cambridge, I pop into Blackwells and purchase two books about the Greek legends. What better way, I am thinking, to entertain and educate one’s young children than to introduce them to the original mythology of western civilisation? Moreover, this is a nice little saver, since I get about 800 pages of stories for a two-book total of 18 quid, compared with about a quid a page in the larcenous children’s department.

 

There is just one problem. Like most people who think it a good idea to educate their young in the Greek mythos, (and in our case even name the eldest child after the Greek goddess of the earth), I have never actually read the material. On so doing I quickly discover that the legends are not the child-sanitised morality tale I had in mind.

 

It is an initial relief to discover that Gaia is indeed the earth, can be construed as its goddess, and was the first thing to come into the Greek world after darkness — a poetic reference, I decide, to our first-born after all those years of waiting. Reading on, however, things quickly become rather less poetic. Gaia had a jealous husband: Uranus, the sky. He was a) addicted to sex and b) unwilling to have any child enter the world to compete with him for attention. So Uranus kept his dick permanently inside Gaia in order to prevent any of the children he sired from being born. Gaia, naturally, didn’t much like this. So she persuaded the youngest child in her belly, Cronus, to castrate Uranus while he was shagging. You can imagine that this came as a hell of a shock to Uranus, who jumped off Gaia and up into the sky. His dick fell into the ocean, where it floated about in a foaming mass of sperm and gave rise to Aphrodite, [sic] the goddess of love (ho, ho, ho). Meanwhile blood from Uranus’s wound splattered on the earth and produced the Erinyes – the furies, or avenger gods (this at least sounds plausible). Cronus and the other ‘titan’ kids escaped from Gaia’s womb, but Cronus grew up to be a ‘wrong ‘un’, imprisoned most of his siblings in the underworld, and ate his own children.

 

In the end, Zeus came on the scene and sorted out the big issues. But then Zeus himself got hacked off with (mortal) man, and sent down woman in the form of Pandora as a form of punishment. Pandora was good looking, but also sexually rapacious, gluttonous and pathologically deceitful, so that man’s life became miserable. ‘This is the dilemma now,’ observes French Greek-legend guru Jean-Pierre Vernant: ‘If a man marries, his life will pretty certainly be hell, unless he happens on a very good wife, which is extremely rare. Conjugal life is thus an inferno – misery after misery….If he marries it is a catastrophe, and if he doesn’t, it’s another kind of catastrophe.’ (pp61)

 

The children, all teed up before I read the text, are greatly excited at the prospect of hearing daddy tell them the story of Gaia and the Greek gods. They snuggle up on the sofa in baited anticipation. Daddy must now scale a new peak of judicious paraphrasing. He does his best: ‘Once upon a time, Gaia had a very naughty son called Cronus, who even stabbed his daddy with something a bit like a knife – which is something you must never, ever do… then there was Aphrodite, the beautiful goddess of love who, would you believe it, was discovered one day floating about on something a bit like an upturned canoe on the sea, but without a paddle… while cheeky Cronus became naughtier and naughtier and even swallowed his children – but without chewing, mind – until Zeus made him sick them up; not that one should ever try to make anyone sick anything up… and then Zeus created the first woman, who was very beautiful and had lovely clothes and jewels, but was, frankly, well, a bit of a handful… not at all like mummy, so just think about how lucky you are…ooh, is that the time, well lights out, good night… yes, of course I will…

 

Next day, the eldest child is heard to tell her brother, who happens to share his name with one of Christ’s disciples: ‘You are a friend of Jesus. That’s very good. But I am a God.’ Once again, liberal parenting has broadened the horizons that other parenting cannot reach.