Monday, May 18, 2009
A friend of mine, Leslie Bennetts, author of the “The Feminine Mistake: Are We Giving Up Too Much” wrote a piece in Elle magazine titled, “The Upstarter Wife” a story about Gigi Levangie Grazer and how she triumphantly approached her divorce, that I feel compelled to write about. Levangie, a very successful women and author approached divorce much differently, I believe than women who quit their careers when they get married or have children. After reading the article, again I am questioning why women sacrifice their financial security for motherhood and wonder whether we are giving up too much? Is the media in part to blame? Does the media only give us one side of the story? Is the dream of the white picket fence so strong that we ignore the reality of the “what if”?
Leslie argues that most women who have quit the labor force to be full time mothers are being lulled into a false sense of complacency about relinquishing their financial autonomy – which I wholeheartedly agree with. The media gives lots of coverage to women who quit the labor force to become full-time mothers, and treat this decision as if it were simply a lifestyle choice. The media never seems to mention the “risks of economic dependency – or the myriad benefits of work.” As a result, Leslie argues that women have been lulled into a dangerous sense of complacency about relinquishing their financial autonomy? Why hasn’t the media or anyone else told the truth about how much these women might be sacrificing—or what the consequences could be?
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Thursday, May 07, 2009
The other night as I was watching the news, yes Fox news, I heard an attorney from Case & White talking about how his clients (the Chrysler bondholders) were being asked to take a deal for .33 cents on the dollar and they were being chastised (bullied was the word that was used) by the Administration for holding out. Now bondholders are secured creditors and should get paid more in a bankruptcy than unsecured creditors (including the union). Now the assets of Chrysler are being sold to a new company controlled by Fiat and the union!! I just can’t believe some of this stuff we are hearing and that is going on in America and give alot of respect to those that can speak out, specifically Cliff Asness, a hedge fund manager at AQR Capital. Here is an excerpt of what he has to say:
“Here’s a shock. When hedge funds, pension funds, mutual funds, and individuals, including very sweet grandmothers, lend their money they expect to get it back. However, they know, or should know, they take the risk of not being paid back. But if such a bad event happens it usually does not result in a complete loss. A firm in bankruptcy still has assets. It’s not always a pretty process. Bankruptcy court is about figuring out how to most fairly divvy up the remaining assets based on who is owed what and whose contracts come first. The process already has built-in partial protections for employees and pensions, and can set lenders’ contracts aside in order to help the company survive, all of which are the rules of the game lenders know before they lend. But, without this recovery process nobody would lend to risky borrowers. Essentially, lenders accept less than shareholders (means bonds return less than stocks) in good times only because they get more than shareholders in bad times.
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