November 2009 Archive

Weekly Twitter Updates

November 29th, 2009
  • Trying Google Wave. Thanks @RogueReverend for invite! #
  • NYT: Two Executed for Roles in China Milk Scandal http://bit.ly/7Pv8ux & Chinese Drywall Linked to Corrosion in Homes http://bit.ly/6j7Fs2 #
  • Listening to web interview of Societe Generale's Asia Pacific legal team head Ferheen Mahomed w/ China Law & Prac ed http://bit.ly/61sRWt #
  • Giving Intl Biz exam. Students will be thankful when it's over. (I on the other hand will then be grading, but still thankful for my job). #
  • Orrick-Levi Strauss Deal & Growth of Alt Billing models http://bit.ly/58hXf2 (via @lawjobs) #
  • Greatful that everything I am thankful for couldn't possibly be listed within a mere 140 characters. #
  • Watching Alabama – Auburn game in Pacific NW w/Henry. Hope he'll again bring the Tide good luck (last year on his 2nd day @ home, Tide won) #
  • Explaining American football rules to my Chinese father-in-law . . . 真不容易! #
  • American Scholar – Decline of the English Department: How it happened & what could be done to reverse it, by Wm. Chace http://bit.ly/18fwEw #
  • NY Times: Baby Boom of Mixed Children Tests South Korea – http://bit.ly/7kVwHP #
  • Civil Suit Hearing Held in China’s Milk Scandal – http://bit.ly/8DHRG4 #
  • News flash: People like to look @ photos, per Harvard Business School article on social media: http://tinyurl.com/nrxdg8 (via @caboni) #

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Weekly Twitter Updates

November 22nd, 2009

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Reprise of my Course on the Financial Crisis

November 19th, 2009

Just finished a one-month course (a course within a course, actually) on the global financial crisis and its aftermath. This was a reprise of my Jan. Term class.

I taught it as part of “Core 350,” an applied ethics and public policy course required of all undergraduates at Whitworth, the college where I teach. The course is composed of three segments. For both the first and last segments, the students meet in a large auditorium in plenary sessions (about 160 students). But for the middle segment of the course, the students meet three times per week with just their discussion group (d-group) of only 20 students to explore a single public policy topic or theme in depth. As the topic for our d-group’s intensive study I chose the current global economic turmoil, or “the financial crisis and its aftermath.”

It was good to explore with another group of students all the intricacies of what caused the near global “meltdown” in September 2008 and what’s been done to fix things (and what’s been proposed on the “never again” front). We all learned a lot, including me.

To begin the course I again used scenes from the classic movie It’s a Wonderful Life. Clips of the movie allow me to depict the concept of a bank run or liquidity crisis, some basics of mortgage lending (George Bailey was in the business of helping people get houses, including people who would not have been regarded as ideal credit risks at that time, long before the current sub-prime era—though nothing in the movie suggests that he was involved in securitization or using 30:1 leverage for proprietary trading of “naked” credit default swaps or other derivatives!)

This time, on the first day, I added an exercise where I asked the students to sketch (literally) their dream houses, then write a paragraph or two to describe in prose the kind of place where they’d one day like to live. That was an effective ice-breaker and entry point into the material. Soon enough, we were discussing mark to market accounting, credit default swaps, collateralized debt obligations and the repeal of the Glass-Stegall Act. Better to start by drawing pictures of houses, like in grade school, to ease into it.

I assigned the books Meltdown: A Free-Market Look at Why the Stock Market Collapsed, the Economy Tanked and Government Bailouts will Make Things Worse by libertarian Thomas E. Woods and Street Fighters: The Last 72 Hours of Bear Stearns by Kate Kelly. In the spring when I re-teach the unit, I am thinking of adding It Takes a Pillage: Behind the Bailouts, Bonuses, and Backroom Deals from Washington to Wall Street by Nomi Prins, and I may replace Kelly’s engaging book (which worked well) with House of Cards: A Tale of Hubris and Wretched Excess on Wall Street by William Cohan. I enjoyed Kelly’s book (and admire her reporting for the Wall Street Journal), but the Cohan treatment seems better in terms of explaining, for non-initiates, the financial background, not just telling the gripping story of Bear Stearns’ ultimate collapse (with background on the colorful characters). I think the Prins book (which is both well researched and forcefully argued) would pair nicely with the Woods book—she mainly blames Wall Street banks (and government de-regulation of banks); Woods blames government interference. That sets up a nice argument, and each book is well written (though when Woods tries to implicate the Community Reinvestment Act as a significant factor in this debacle his stock dropped in my eyes). I also want to assign Daniel McGinn’s House Lust: America’s Obsession With Our Homes, but the campus bookstore, which routinely performs miracles, couldn’t get their hands on enough copies in time . . . perhaps they can do that for the spring. Also, I have a stack of yet-to-be-read books on the still-unfolding debacle on my nightstand; that stack probably includes some other great choices, so I won’t decide just jet.

For the final exam for this unit on the current economic turmoil, for one question I asked the students to give an example of how (or at least how others have argued) 1) wretched excess, greed and recklessness on Wall Street, 2) government actions, 3) government inaction (or de-regulation) and 4) consumer misbehavior contributed to the current turmoil. They had plenty to write.

Sadly, I had three very fine accounting students in the group who got disappointing news about their job searches during our “course within a course.” These are good, likable students—students who majored in accounting for goodness sake!—and they were being told, “in a normal year, we’d hire 10 and you’d be in that group, but this year because of the economic slowdown we are only hiring three new grads and you’re ranked fifth” or something along those lines. Harsh.

It was a painful reminder that the subject we were studying wasn’t purely “academic.”

My course syllabus is here.

Now that I’ve “piloted” this course in Jan term and as part of the Core 350 program I think I’ll explore offering it through our continuing studies division. It would be interesting to examine this material with older adult (or “non traditional”) students. Most people are understandably unfamiliar with the secondary markets for mortgages and products derived from them, but undergraduates have usually never even bought a house, so even the primary transaction is unfamiliar to them. Older students would likely have had experience buying or selling real estate, or might own properties whose equity they are concerned about. That could intensify things. And their work experiences would likely enrich the class (they might themselves have been mortgage brokers or realtors, before this debacle).

Debating Globalization in Whitworth’s Core 350

November 18th, 2009

Had a fun debate today in “Core 350,” an applied ethics and public policy course required of all undergraduates at Whitworth, the little college where I now teach.

The debate was about globalization. I argued globalization is good because it:

  • Is the best poverty reduction program in the history of the world;
  • Promotes peace;
  • Diffuses a host of good things around the world; and
  • Doesn’t inevitably trounce local cultures (and to think that it does is ethnocentric).

I think all of that is essentially correct, though of course each proposition begs for qualification, too. But before an audience of 160 restless undergraduates, with only five minutes to speak initially, I’ve learned that a narrow, exquisitely nuanced claim is not the best opening gambit. Better to say something bold, then qualify it subsequently as time allows.

I buttressed the claim about poverty reduction by talking about India and China, of course. I also cited South Korea, Taiwan, Hong Kong and Singapore as examples of places that have, through participation in the global economy, jumped from third to first world. And of course I mentioned the counter-examples of North Korea and Iran. The facts simply support the claim that globalization has lifted hundreds of millions of people out of desperate poverty over the last twenty years.

For the “promotes peace” claim I talked about President Obama’s current visit to China, noting that the mutual entanglement if not interdependence of “Chimerica” makes armed conflict seem much less likely (quite unlike the Cold War era with the former Soviet Union). I threw out the canard about how countries that are part of the Dell computer supply chain have never gone to war. To resolve grievances countries in the WTO ask for a “dispute resolution panel.” This is a good thing.

With respect to the “diffuses good things” claim, I argued that, contrary to what some courses or flippant pop commentary may have led students to believe, globalization actually promotes racial and gender equality, environmental protection, good labor standards, civil society and other good things. Jagdish Bhagwati’s book In Defense of Globalization was my inspiration here.

With respect to the cultural resilience argument, I was making a peremptory strike (using the “Bush Doctrine” in debate?) against an argument that I anticipated my opponent would make. I drew on my experiences in China, where it’s common (though I think comical) to hear visitors bemoan the loss of “Chinese culture” when they see a Starbucks, KFC or McDonald’s (but fail to recognize those things stand out to them because they can’t read the hundred other signs on the street, signs which probably tout Chinese medicine, stinky tofu, frogs on a stick or perhaps even a repast of, gasp, puppies). If anybody in the world is culturally resilient, surely it is the Chinese. With 1.4 billion people and a few thousand years of history on their side, it’s hard to imagine a few KFCs marginalizing their culture. I was also inspired by the book Golden Arches East: McDonald’s in East Asia, whose contributors detail how something much more complex than “cultural imperialism” is going on with McDonald’s global success. I asked the students in the auditorium how many of them eat sushi, have or know somebody who has a Chinese character tattoo (a symbol in a foreign language, permanently on his or her body!) and whether they drive a foreign car (and pointed out that of course they put foreign oil in it). None of these things seemed to make them feel less American, I observed, so I asked why should a few foreign franchise restaurants elsewhere make them feel that another culture is being wiped out in some tragic way?

For the business students that have had my international business class, probably none of this sounded surprising, but most of the students in the course are not business majors, and I imagine that their previous discussions of globalization may have taken a different, less enthusiastic—perhaps even hostile—tack. I hope our students get exposed to both views, and to many more nuanced, in-between perspectives.

The short “debate” was with another faculty member, then a couple of additional faculty members served as a panel of examiners. We also had time for a few student questions. It seemed to work pretty well.

Besides trying to broach this topic (which they will hear subsequent lectures on and will read more about), we wanted to model civil, reasoned discourse. Today’s vitriolic political climate makes this seems like an especially important thing to do with undergraduates.

Even with my somewhat hyperbolic (or at least insufficiently contingent) “affirmative case,” I think we managed to accomplish that objective. During the question period we each acknowledged difficulties in our maximal positions.

I think having other faculty question us was helpful; calling something a “debate,” at least for me, with my “zealous advocate” legal training, tends to make me adopt a ready-for-combat stance, but a “seminar” setting helps encourage the kind of discourse we wanted to model.

This is my first semester on the teaching team for this required public policy/applied ethics course. Today was great fun, but the course is a lot of work and the incentives haven’t been calibrated in a way that makes faculty line up to participate. I’ll be back for the spring version of the course, but I’m not sure whether I’ll participate beyond that.

Weekly Twitter Updates

November 15th, 2009
  • Mainland property co. IPO (real estate dev.) in Hong Kong, 20th HK listing of mainland prop. co since 2003: China Daily http://bit.ly/2C6Sfp #
  • Editor Hu Shuli quits Caijing, mainland China media brightspot, amid squabbles re ed policy, power, $ http://tinyurl.com/ybnsn7n via @rmack #
  • "Firm Sues Fired Associate Who Launched Firm Gripe Site" Claims cybersquatting not defamation. Solid free speech claims: http://bit.ly/mHMmk #
  • Obama's Asia trip itinerary: http://is.gd/4Rwbv via @rmack #
  • Head of HKSE a Univ of Alabama alum: http://bit.ly/apAYA #
  • Bailout Nation tour comes to my 'hood: "ABA Proposes Law Student Loan Relief" http://bit.ly/t79Y4 #
  • Excellent post on new AAUP academic freedom campaign and the "unsustainability" of tenure: http://bit.ly/nt0S #
  • Kelo v. New London – Pfizer to Leave City That Won Supreme Court Land-Use Case -NYT: http://bit.ly/yIgYB #
  • Yes! NYT: Chocolate Milk May Reduce Inflammation – http://bit.ly/2BwJeX #
  • Bank of England analysts on "doom loop" of too big to fail–>bailouts–>bigger risk taking http://bit.ly/48wl4c via @baselinescene #
  • Thoroughly enjoyed U Georgia Prof. John Knox's "last lecture" http://bit.ly/2K9QNM via @ericleif #
  • Smaller fin firms = safer or weaker (or both?) NYT Dealbook Bank Breakup Plan, Still Unseen, Draws Wall St. Ire – http://bit.ly/1nvE07 #
  • Taking group of students to China (Hong Kong & Shenzhen) Jan 2010. Next Jan, 2011 . . . South Korea! Approval fell into place today. Sweet! #
  • Just finished It Take a Pillage: Behind the Bailouts, Bonuses & Backroom Deals from Wash to Wall St. Love Nomi Prins' outrage (& footnotes!) #
  • NYT on "teacher-entrepreneurs" Selling Lesson Plans Online, Teachers Raise ?s- http://bit.ly/3TSeMO My syllabi posted & blog ad-free—dumb? #
  • Groklaw on Apple legal victory over clonemaker: http://bit.ly/3RhOv7 #
  • Just finished It Takes a Pillage: Behind the Bailouts, Bonuses & Backroom Deals from Wash to Wall St. Love Nomi Prins' outrage–& footnotes! #
  • RIP James Lilley, former US Ambassador to China in 89 (& So Korea & Taiwan rep @ turbulent times). Saw him @ MD in 2004. http://bit.ly/DoGNZ #
  • NYT profile of Sullivan Cromwell superlawyer Rodge Cohen (my students read about him in book on Bear Stearns collapse) http://bit.ly/332hf7 #

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Weekly Twitter Updates

November 15th, 2009
  • Mainland property co. IPO (real estate dev.) in Hong Kong, 20th HK listing of mainland prop. co since 2003: China Daily http://bit.ly/2C6Sfp #
  • Editor Hu Shuli quits Caijing, mainland China media brightspot, amid squabbles re ed policy, power, $ http://tinyurl.com/ybnsn7n via @rmack #
  • "Firm Sues Fired Associate Who Launched Firm Gripe Site" Claims cybersquatting not defamation. Solid free speech claims: http://bit.ly/mHMmk #
  • Obama's Asia trip itinerary: http://is.gd/4Rwbv via @rmack #
  • Head of HKSE a Univ of Alabama alum: http://bit.ly/apAYA #
  • Bailout Nation tour comes to my 'hood: "ABA Proposes Law Student Loan Relief" http://bit.ly/t79Y4 #
  • Excellent post on new AAUP academic freedom campaign and the "unsustainability" of tenure: http://bit.ly/nt0S #
  • Kelo v. New London – Pfizer to Leave City That Won Supreme Court Land-Use Case -NYT: http://bit.ly/yIgYB #
  • Yes! NYT: Chocolate Milk May Reduce Inflammation – http://bit.ly/2BwJeX #
  • Bank of England analysts on "doom loop" of too big to fail–>bailouts–>bigger risk taking http://bit.ly/48wl4c via @baselinescene #
  • Thoroughly enjoyed U Georgia Prof. John Knox's "last lecture" http://bit.ly/2K9QNM via @ericleif #
  • Smaller fin firms = safer or weaker (or both?) NYT Dealbook Bank Breakup Plan, Still Unseen, Draws Wall St. Ire – http://bit.ly/1nvE07 #
  • Taking group of students to China (Hong Kong & Shenzhen) Jan 2010. Next Jan, 2011 . . . South Korea! Approval fell into place today. Sweet! #
  • Just finished It Take a Pillage: Behind the Bailouts, Bonuses & Backroom Deals from Wash to Wall St. Love Nomi Prins' outrage (& footnotes!) #
  • NYT on "teacher-entrepreneurs" Selling Lesson Plans Online, Teachers Raise ?s- http://bit.ly/3TSeMO My syllabi posted & blog ad-free—dumb? #
  • Groklaw on Apple legal victory over clonemaker: http://bit.ly/3RhOv7 #
  • Just finished It Takes a Pillage: Behind the Bailouts, Bonuses & Backroom Deals from Wash to Wall St. Love Nomi Prins' outrage–& footnotes! #
  • RIP James Lilley, former US Ambassador to China in 89 (& So Korea & Taiwan rep @ turbulent times). Saw him @ MD in 2004. http://bit.ly/DoGNZ #
  • NYT profile of Sullivan Cromwell superlawyer Rodge Cohen (my students read about him in book on Bear Stearns collapse) http://bit.ly/332hf7 #

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