Financier

The Book of the Week is “Financier, The Biography of Andre Meyer, a Story of Money, Power, and the Reshaping of American Business” by Cary Reich, published in 1983.

In the 1950’s and 1960’s, Meyer was a pioneer of the mergers and acquisitions craze in corporate America. He was the head honcho at the investment banking firm of Lazard Freres.

The firm exploited the trend, switching from supplying venture capital to advising its clients which were institutional, to form conglomerates, because it was thought that bigger was better. Other firms spent big bucks on research analysts, whose pronouncements were sometimes wrong. Lazard specialized in numerous, diverse, creatively structured deals.

Beginning in August 1951, for instance, for the purpose of minimizing the tax on the purchase and sale of an eight hundred thousand acre cattle ranch in Texas, over what turned out to be the course of a decade– Lazard split up the real property into sixteen different parcels, each owned by a different corporate entity. This way, the eventual 80% profit on the approximately $18 million investment was classified as capital gains (taxed at 25%) rather than real-estate income (taxed at 90% in those days; that’s not a typo).

The absolutely most valuable investment in the 1950’s and 1960’s was real estate because inflation was only 1%, and real estate ventures were easy to form. This was shown by Bill Zeckendorf, who (after obtaining loans with usurious terms on various occasions from Lazard), in August 1968, with assets of $1.8 million and debt of $79 million, rose from the ashes of bankruptcy to form General Property Corporation, and continued doing real estate business.

In early 1977, Meyer “… was convinced that the world was heading for economic apocalypse, that capitalism was dying, that government deficits and inflation were out of hand, and that nothing was a safe investment any longer… Should you buy gold? Stocks? Art? Bonds? And he didn’t want to buy anything.”

A man with his life experience should have known better. As is well known, the economy recovered within a decade. Granted, it got worse before it got better, and of course, shortly after that, there occurred a stock market crash and recession. But one need only wait ten years or less to see major changes in the nation’s economics (and politics for that matter; not that there aren’t lingering scars).

Excuse the cliche, but this too, shall pass.

Read the book to learn about Meyer’s major deals, the corporate culture of Lazard Freres, and how its reputation was hurt when it became too creative with its complicated stock swaps in its underwriting activities.

The Chief – BONUS POST

The Bonus Book of the Week is “The Chief, The Life and Turbulent Times of Chief Justice John Roberts” by Joan Biskupic, published in 2019. This slightly redundant biography described prominent U.S. Supreme-Court cases in detail, explaining them for laypeople. Most of the cases revolved around issues with which the United States continues to grapple, especially various kinds of discrimination.

Born in January 1955 in western New York State, Roberts and his family moved to Indiana near the Illinois border when he was about eight years old. He turned into a staunch conservative Republican.

The burning question that must be answered in any given case, that would determine whether favoritism or compensation should be given to the victims of discrimination, is whether, as a group, the victims– having been oppressed for so long– have caught up to the rest of society, with regard to the case’s area of life covered; education, housing, employment, political elections, financial dealings and other day-to-day situations.

In the applicable areas of life, whether and how much discrimination still exists is of course, extremely subjective (given the anecdotal evidence and propaganda wars from both sides). Each case needs to be decided on an individual basis because the times are continually changing. If the victims have yet to catch up, it is because one thing leads to another. If for decades, they’ve been rejected from, say, colleges based on their skin color, they’re at a disadvantage when it comes to employment opportunities, which leads to financial disadvantages and a slew of other lifestyle limitations. It’s not just a matter of compensating victims for past wrongs against them– the wrongs (if there were wrongs) held them back from being treated equally with others for decades longer.

It is impossible to require truly color-blind acceptance policies, however. And of course, there’s always that lingering uncertainty whether the college applicants were accepted more for– when compared with their peers– their potential success in furthering their education, than for their skin color.

Roberts claimed the Supreme Court was nonpartisan in handing down decisions. But– the Court has been divided 4-4 or 5-4 practically all the time in famous cases, because each of its presiding justices has consistently subscribed to a particular political persuasion in his or her opinions.

Further, appointments of Supreme Court Justices (or lack thereof) have been fiercely political in recent decades. “From the start of Obama’s presidency [Mitch] McConnell had put up hurdles to Obama’s lower Court nominations, ensuring, for instance, that not a single appointment was confirmed to the D.C. Circuit in Obama’s first term.”

Read the book to learn of the many ways Roberts made known his political beliefs through his Court pronouncements.

Where the Wind Leads/The Fox Hunt

The Books of the Week are “Where the Wind Leads, A Memoir” by Vinh Chung With Tim Downs, published in 2014; “The Fox Hunt, A Refugee’s Memoir of Coming to America” by Mohammed Al Samawi, published in 2018.

Both authors told suspenseful, extremely extreme, long, complicated refugee horror stories, in which they had great good luck on several occasions, and in which certain people took tremendous risks by providing the authors with invaluable assistance that saved their lives.

Born in South Vietnam in December 1975, the author of the former book helpfully, briefly described his homeland’s history three decades before his birth.

The author’s family was Chinese– neither enemies nor friends of the French, Viet Minh, or Khmer Rouge. However, in the 1940’s, the author’s father’s family’s house in the Mekong Delta had been burned to the ground twice, anyway. There was a higher risk of a Viet Minh invasion in the French territory farther north, where the family moved.

As is well known, in the mid-1950’s the French were militarily defeated by the Viet Minh– Communists– and kicked out of their colony Indochina in Southeast Asia. Thereafter, Vietnam was split into north and south. Different ethnic groups migrated toward the side where they numbered in the majority: Communists, north; Catholics and Buddhists, south.

The Khmer Rouge, comprised of Cambodians, continued to ally with the French for decades. By the late 1950’s, the author’s father had become a draft dodger, fleeing to Cambodia to avoid having to fight against the Viet Minh. In 1960, Ho Chi Minh’s militia, the National Liberation Front, was attempting to reunite North and South Vietnam. The Viet Minh was renamed Viet Cong by the United States.

Over decades, the author’s maternal grandmother began a rice-processing business that flourished. By the mid-1970’s, it had a couple of mills, a fleet of trucks, warehouses, etc. It actually benefited from America’s Vietnam War.

The family matriarch hired a matchmaker to marry off her son (the author’s father), born in 1937. He was still sowing his wild oats in his late twenties. Traditionally, both prospects’ families went on a date with the prospects. Then they saw a fortune teller.

The author’s mother was the daughter of a Chinese servant girl of a wealthy household. When she moved to her husband’s house, she had to shop daily for the fast-growing multi-generational household, because they didn’t have a refrigerator. But, since she was expected to become a baby-maker in addition to all of her other responsibilities– she was permitted to hire a teenage nanny with every additional child.

The author’s birth made five. Three more were quickly added, while the author’s father’s mistress had four. The two major philosophies of the family’s culture were filial piety and ancestor worship. Living in the South, their religion combined aspects of Confucianism, Taoism and Buddhism. That changed when the Viet Cong attacked the Mekong Delta. The author’s family’s life was disrupted forever, as their business and real and personal property were stolen.

Due to the Vietnam government’s war against the Chinese that started in February 1979, the ever-growing Chung family became “boat people” in June. Read the book to learn of the family’s ordeal, adjustment to a brand new life, and the author’s explanation for what gave rise to his own extraordinary achievements.

Born in Sana’a, the capital of Yemen in 1986, the author of the latter book helpfully, briefly described the recent history of his homeland.

In 1987, a Sunni-Muslim group named the Muslim Brotherhood formed another group, Hamas. They were supported by Saudi Arabia, southern Yemen, Iraq and another group that formed later, Al Qaeda. Their enemies were Shia Muslims, who are the majority in Iran and northern Yemen.

In the 1980’s and 1990’s, the author’s Shia-Muslim family lived in a peaceful neighborhood in Sana’a in northern Yemen, where everyone got along fine. He had two older and two younger siblings. His parents were trained as medical doctors; his prominent father worked for a military hospital.

Al Samawi’s parents believed in education, but were extremely devout Muslims. So his parents were thrilled when, as an adolescent, he donated all his lunch money to the Muslim Brotherhood when the group (who were pushing pan-Arabism at the time) visited his private, well-funded grammar school.

However, the teachers preached nonstop hatred against Jews and Christians. The Quran was their authority on that. Besides, they said Hitler was a hero for killing Jews, and the Jews’ books were “dirty, amoral, sinful, impure, demonic.”

In 2000, TV propaganda in Yemen claimed that Prime Minister Ariel Sharon in Israel was ordering the killing of innocent Palestinians, such as a young boy (who became a poster boy to incite Yemen), for no reason. The haters ignited in most Yemenis additional hatred against the Jews and Israel’s backers, such as the United States.

Eight years later, the author thought he was falling in love at university. But his filial piety put the kibosh on that. His mother did a background check on his prospective girlfriend, and found she wasn’t good enough for her son, and given their situations, she was probably a gold digger. His father also pressured him to end the budding relationship, by offering him a car and a job if his parents could fulfill the traditional Muslim route of choosing a bride for him. He caved in to their browbeating.

However, the next chapter in the author’s life proved to be most educational. He met an inspirational British instructor at his English-language school. Surprisingly, the author’s parents were allowing their son to study English. Al Samawi and his teacher exchanged gifts (the Quran and the Bible, respectively) to try to proselytize the other one. Each dogmatically believed that his own religion was the only right one to practice, else they would go to hell upon their deaths. Then a funny thing happened.

The teacher horrified Al Samawi by telling him he’d been hoodwinked– Al Samawi had unknowingly been reading the (Jewish!) Old Testament, having started at the beginning of the book. The stories’ morals and precepts were largely similar to those in the Quran(!)

In the next several years, Al Samawi became sufficiently open-minded to try to clear up his own confusion between what he’d been taught by his parents and Yemen’s culture, and what he was learning on Facebook and from his jobs at cross-cultural peacemaking organizations and international aid organizations.

From the start of Yemen’s religious civil war in 2015, Al Samawi found himself in a life-threatening, harrowing situation for several months. In one particular instance, he wrote, “Thirty minutes later, I jumped in the back of the black sedan. I didn’t call my mom. I didn’t say goodbye. I didn’t pay the hotel.”

Read the book to learn the details of how Al Samawi’s friends in high places went to extraordinary lengths to change his fate, through thrilling plot twists and turns.

True Blue – BONUS POST

The Bonus Book of the Week is “True Blue, Police Stories By Those Who Have Lived Them” by Sgt. Randy Sutton, published in 2004.  This was a bunch of first-person anecdotes told by police officers– who recounted the most memorable moments of their careers; several of them NYPD members who survived 9/11.

Robert Brager’s 9/11 story was of confusion. He wrote, “At different times throughout the day, I was told that the Empire State Building, the United Nations Complex, the White House, the Pentagon, and many other places might have been hit. You can’t imagine the distorted information during a time like that: Here we were in the greatest city in the world in the middle of the news capital of the country and we couldn’t find out anything because all cell phone sites were down.”

Read the book to be reminded how dangerous and traumatic, or emotionally fulfilling, police work can be.

As is well known, traumatic is a word that describes the past week in the United States. Pursuant to Wikipedia (which is probably not comprehensive), below is a chronological rundown (month, year and state) from the year 2000 and later, of shooting sprees, in each of which there was at least one death of an innocent person. These do not include: road rage, robberies, burglaries, home invasions or workplaces or any situations of solely targeted murders in which the shooter knew the victims. What they all have in common (besides a temper tantrum with a firearm) is that the shooters were all male (except for one couple– a male and female).

More than half were white males. It’s okay to say “white males” now without sparking outrage among the tabloid set who would associate the speaker or writer with “The Squad” because that news cycle is finished. Luckily, the unwashed masses have short memories.

  • January 2001, CA
  • September 2001, TX
  • October 2002, Washington D.C. area
  • June 2003, MT
  • August 2003, WV
  • May 2004, CA
  • March 2005, MN
  • October 2006, PA
  • February 2007, UT
  • April 2007, VA
  • October 2007, OH
  • December 2007, CO
  • February 2008, IL
  • September 2008, WA
  • April 2009, NY
  • August 2011, OH
  • September 2011, NV
  • October 2011, CA
  • April 2012, CA
  • December 2012, CT
  • June 2013, CA
  • April 2014, KS
  • June 2014, NV
  • October 2014, WA
  • July 2015, TN
  • October 2015, OR
  • February 2016, MI
  • September 2016, SC
  • April 2017, CA
  • May 2017, OH
  • November 2017, CA
  • December 2018, CA
  • December 2018, NM
  • February 2018, FL
  • July 2019, TX
  • July 2019, OH

Leading Lady

The Book of the Week is “Leading Lady, Sherry Lansing and the Making of a Hollywood Groundbreaker” by Stephen Galloway, published in 2017.

The subject of this movie-studio-executive biography was born in July 1944 in Chicago. She had a younger sister. Her biological father died of a heart condition when she was almost nine years old. That childhood trauma made her driven to succeed in life. But she took her stepfather’s last name, Lansing.

After graduating from Northwestern University, she and her medical-student husband moved to Los Angeles so she could pursue her dream of becoming an actress. To earn a living, she became a substitute teacher.

She suffered through three years of cattle calls and other indignities, which allegedly did not include sexual favors for career advancement. Arguably, in retrospect, there were mitigating factors to the culpability of men who displayed behavior on the continuum of sexual harassment of women in the entertainment industry.

In Lansing’s generation, both females and males accepted the continually reinforced gender-stereotypes in American culture, especially in that line of work. The vast majority of women never thought to question their enforced inferiority. The tiny number who did, were left silently seething.

Any woman who dared to enter the entertainment industry knew that that was the status quo, or quickly found that out. Institutionalized gender discrimination was a fact of life. Nowadays, of course, men’s offensive behavior is considered by everyone to be inexcusable, but accusations are still very hard to prove, absent reliable witnesses or physical evidence.

Anyhow, Lansing finally got a few roles, the most exciting of which was a bit-part on the TV show Laugh-In. However, the phoniness of acting wasn’t for her; she found she needed to be true to herself and the world.

Lansing, then 26, had cultivated valuable Hollywood contacts, one of whom, a producer, gave her work as a script-reader. Again, in the 1960’s, movie-making was still a male-dominated field, in which few women were able to tolerate the old-boy-network’s frat-boy behavior if they were trying to climb the corporate ladder. Lansing had a calm, peace-inducing temperament and engaging personality. She was able to keep her mouth shut and endure her hostile work environment until such time as she wielded the power to work with men as an equal.

That time came in November 1992, when Lansing became chair and CEO of Paramount Pictures’ movie division. Nevertheless, her work involved a boatload of stress and worries. She was the ultimate decisionmaker on whether a movie got made, but there were frequent problems with, and fierce arguments over hiring crews, financing, casting, shooting, screening, promoting, etc.

By the 1990’s, studios were forced to jointly pay production costs because filmmaking had become so expensive with high-tech special effects and for other reasons. So the relocating of the shooting of Braveheart from Scotland to Ireland due to foul weather, turned out to be a blessing in disguise. The Irish government provided 1,700 extras on the set, free of charge. Despite the astronomical costs of Titanic, the movie reached its break-even point prior to the revenue streams of cable TV, home entertainment and ancillary markets. Eventually it raked in revenues of $2.19 billion.

But after ten years at the top, Lansing was becoming disenchanted with the trends of the industry. For, “…the quality of pictures no longer seemed essential… clever sales strategies could redeem all but the most abysmal of movies.” In other words, execrable movies that never should have been made were profitable, anyway– the marketers had become more important than the producers, casts and crews. Curiously, the same thing happened in publishing– the people managing the creative side of the business got greedy when cultural changes caused costs to rise.

Besides, Lansing asked, “How did the Oscars become the monstrosity where people [movie studios] are spending zillions and having parties and slipping things here and there? What happened to the camaraderie?” It should not have come as a surprise that by early 2003, Wal-Mart had become one of the largest distributors of DVD’s in the nation.

Read the book to learn more about Lansing’s career trials, tribulations and successes, her personal life, and the activities she found more fulfilling after she left Paramount.