Monthly Archives: December 2008

(Community Matters) Preparing for a late dinner party after Art After Dark.

(Community Matters) Wow, talk about a life experience – what a great setting. First time in a very long time I’ve been wistful of being a 20-something. here

(Community Matters)

pictures: Steven

(Community Matters) at Economist.com a forum commenting on Alan Greenspan’s recent article about the economic meltdown and lack of confidence in the markets. Several leading economists weigh in.

Prof. Luigi Zingales, University of Chicago: if the market has a fault, it is not that it is irrationally spooked today, but that it was irrationally complacent in the past . . . .

Also, apologies to those holding bonds & preferred stock in banks, but I really like the idea of forcing the conversion of these into equity rather than additional taxpayer funded capital injections.

I don’t know that we’re focused enough on decreasing the overall risk of portfolios – whether banks, corporate or individuals’. Nor, do I know how we could. Guranteed floors feels like price controls. TARP was to have effected this by purchasing the distressed financial assets but took a different approach. I think it’s too early to say whether or not this has been the right or wrong decision.

Entrepreneurs & portfolio managers understand the shift in risk profiles that have resulted in assets previously seen as less risky, now being considered risky – and thus banks, VCs and angels being less willing to allocate more monies to startups and pre-profitability enterprises.

I’ve been thinking a lot about the portfolio of the CDFI I chaired for three years and on which board of directors I continue to serve. We probably have 80 loans (gosh, this could be an old number) outstanding to mostly minority and women entrepreneurs creating jobs and wealth in low income communities. These companies are by definition under capitalized (if they weren’t they could have obtained traditional funding and we wouldn’t have extended credit). What is our responsibility to these borrowers in today’s market? Obviously, to help them make the best decisions for their stakeholders while protecting PeopleFund’s capital. If their balance sheets and operations can’t withstand a prolonged economic downturn or aren’t positioned to participate in the upcoming economic stimulus package, then to either 1) help right this situation or 2) create a plan that minimizes their, our and other stakeholders’ losses.

(Community Matters)

(Community Matters) Rats, did I miss IT? hmm, or did I just not realize the day was named?

(Community Matters)
Inspired by spending the morning rereading Diana Kennedy’s, The Art of Mexican Cooking, I just made the best breakfast taquito in the world. I had part of a pork chop and some black beans left over. Last night I’d brined the pork chops, then quick sauteed (tiny olive oil & butter) in basil and apple. So, this am made quick refried black beans with tomatillo sauce stirred in while cooking and fresh flour tortillas. Added just a tiny bit of shredded cheddar & monterrey jack cheese. Oh my, deliciosas! What’s for dinner – hmm . . . Posted from my blackberry

(Community Matters) Breaking for lunch but my next task is to take in the latest McKinsey quarterly, Leading Through Uncertainty.

follow up:

This matrix a super starting template for scenario planning:

the article provides a good structure with which to launch strategic planning in a very uncertain economic environment. As they point out, the objective shouldn’t be to only survive (though not a bad one) but also to “seize the extraordinary opportunities that arise during periods of vast uncertainty.” As I’ve pointed out in other postings, some undercapitalized businesses should liquidate rather than dig a deeper hole and risk further asset value declines.

Many consumers likely will reduce consumption and postpone retirement – what are the implications of this on your business or your clients businesses?

Deleveraging means that expectations for business must be lowered, i.e., baseline expectations for profit margins, growth and return to shareholders.

Quarterly performance may not longer be the objective, could be long-term survival.

“A crisis tends to surface options – such as how to slash structural costs while minimizing damage to long-term competitiveness. . . “

“Plan for the worst and hope for the best.”

Already too many notes for implications to organizations on boards I serve.

(Community Matters) Interesting reading all the articles describing the current economic downturn. Alan Greenspan sure accumulates more than his fair share of blame. I didn’t have the perspective that Reagan didn’t renominate Paul Volcker in order to nominate Greenspan who was decidely anti-regulation, as well as an Ayn Rand devotee.

(Community Matters) HBO’s new series starring Thomas Jane should be interesting

(Community Matters) Dinner last night at Tom Rapp’s & Toshi Sakihar’s Cochineal, next door to the Brown Recluse in Marfa. Tom & Toshi also own an interest in etats-Unis, the Upper East Side’s eclectic bistro rated very good by the New York Times. For those familiar, they’ll be happy to know that Toshi has brought over his signature date pudding.

Not only pleasantly surprised to run into Tom & Toshi there last night but also our waiter was a favorite Marfa youngster, Chase Lindley. Also happy to know Chase’s wife, Rachel remains on staff at Marfa Public Radio.

Oh yeah, food . . . . perhaps the most perfect steak I’ve ever had. Pepper-rubbed, butter introduced sometime during the grilling process, delivered perfectly cooked per my request for just north of medium. Topped with crispy, not greasy, thin onion rings. Delish. Steven’s roasted chicken as well. Nice selections of wine. The featured Italian red was superb, though for the life of me I can’t remember the name.

Super duper setting and ambiance. A bit pricey for Marfa, though we didn’t mind if it’ll ensure success for the restaurant – though I wonder how many locals can enjoy their dinners. Bet lunch is more affordable.

We have 22 booked for dinner on 30th. Loved hearing that Suzann and Terry Tick’s brood from New York will be taking the rest of the restaurant. We’ve been looking forward to their arrival.

Steven and I are planning dinner with Tom & Toshi in Marathon. There’s a new restaurant they suggest we try.

(Community Matters)

Happy Hanukkah

Steven and I are going to Tom & Tochi’s new restaurant for dinner.
Hopefully they’ll have latkes tonight.

and Steven actually knows all the words to *I have a Little Dreidel*. Make him stop singing!