The Second Lap

Accepted to Boston College - Carroll School of Management

2009-01-28T14:48:00.002-05:00

Just found out that I have been accepted to Carroll. Pretty sweet deal. Three out of three, at this point. Feels very rewarding. Will have more updates soon.

Update - 01/31/09: Just received the official letter from BC. I have been offered $10,000 in scholarship funds, which is pretty good (about 1/5th of the cost). I felt really bad turning down this school because I really wanted to attend, given that I did not get into UNC. BC has an outstanding program, great professors, and a strong reputation. They admitted very few students (I believe it's 27 to 30 percent of applicants, which is unusual for an MSA program), for a total of about 37 to 45 students in the entire class. I am proud to be one of those granted admission. Unfortunately, I can only attend one school. It certainly would have been very interesting to be a part of the Strasburg.

Accepted to Bentley - McCallum Graduate School of Business

2009-01-18T12:47:00.004-05:00

Yesterday, I received a letter of admission from Bentley University. They also offered me $10,000 in scholarship funds. The folder that they sent me was filled with a lot of information about next steps, etc. However, the UNC process is much better and more comprehensive, as everything (forms, information, schedules, etc.) is online, on the admitted student website.

The deadline for letters to go out was January 15th, so I heard at the very end. The UNC deadline is actually February 1st. However, I was accepted to the program in December. Different schools have different procedures. I am yet to hear from Boston College. Their deadline to send out letters is February 15th. I think that they will also offer me some kind of scholarship money. However, it makes little difference, at this point.

M&A outlook from Deloitte

2009-01-02T18:08:00.005-05:00

It goes without saying that the present financial debacle will make a huge impact on the market for deals. The following report states that no nation or industry will be spared. While this is certainly true, I believe that the micro-view will still expose a relatively large number of carefully thought-through deals. I believe that there are still some interesting acquisitions that can be made in the extraction, energy transmission, biotechnology, and semiconductor industries.

Also, a loosely related item.

IFRS effects on standards, litigation, curriculum, and employee training

2009-01-01T22:28:00.007-05:00

The following article from Knowledge @ P.W. Carey covers some interesting developments in the transition that the US is making to the International Financial Reporting Standards (IFRS). While the transition is designed to be a force for good - transition to common standards that provide some leeway in prescriptions that are specific to a company's internal structure and external realities - I have noticed a couple of negatives; at least from the above article. The first is the potential increase in the number of lawsuits that are brought against auditors - a fact mentioned in the article.

However, there is a second aspect that troubles me. As the article states, "'What you will see is more footnote disclosures in financial statements.' That means investors will work harder to understand the financial health of companies they're researching." A more thorough and honest picture of a company is something that most stakeholders would applaud. However, how such honest information is presented makes a big difference. Copious footnotes might be a recipe for problematic outcomes on the investor side. Financial researchers are under tremendous pressure: they are supposed to invest in jewels and find such firms under short deadlines. I am afraid that "more footnotes" will result in increased complexity of the information reviewed by researchers. This could lead to a less thorough analysis. I believe that auditors will have to devise a better way to present vital information. Also, as the article states, in the future, auditors will have to communicate in even clearer terms than they do today. I hope that the accounting profession will successfully step up to the new challenges.

Selecting a notebook for B-School

2008-12-21T11:09:00.013-05:00

I have eliminated HP and Mac, because, based on a number of reviews, these machines are not as resilient and mobile as machines such as the Lenovo (IBM), Vaio (Sony), and Dell. Toshiba is another very resilient machine, but is not friendly to customization (Toshiba Satellite U405 was a very attractive machine, but at what I found to be an unattractive price). Therefore, simply based on practicality, intended use, and price, I narrowed down my choices to Dell.

At Dell, I found three attractive models:

Dell Inspiron 1525

Dell Studio 15

Dell Inspiron 13 (the review is a bit dated, as Dell has now added the Core 2 Duo to this machine)

Based on these, and a few other reviews, I decided to go with the Dell Inspiron 13. While there are a few minor drawbacks (primarily the availability of just 2 USB ports, and a choice of just one color), the overall resiliency, compactness, surprising power (for a 13" notebook), and an extremely competitive price made this my absolute top choice.

By the way, here is a cool website that I found in the process of looking for reviews.

Accepted to UNC - Kenan-Flagler!!!

2008-12-18T19:36:00.007-05:00

This is a dream come true for me...

Back from UNC interview

2008-12-12T13:09:00.006-05:00

I am back from my interview at Kenan-Flagler. It took place on Monday, December 8th, at 10 AM. The woman I met with - assistant director of admissions - was very pleasant, and extremely easy-going. The interview lasted about 45 minutes. The questions she asked me were relatively standard. She surprised me with two questions, but I handled them by being honest in my answers. Overall, it felt that she was impressed with my knowledge of the program, the research that professors have conducted, and the research centers that I would like to participate in. She also told me that they always appreciate candidates with some work experience, and general overall maturity - since most of the students in the program go straight from the undergrad studies. She responded to my thank-you note and said that I should hear from her shortly. I would say that that's about two weeks.

I also had the pleasure of meeting with two current students. The two girls were from China and were very interested in everything that I have done professionally, academically, and really wanted to understand my reasons for wanting to attend UNC and accounting in particular. The three of us had lunch and we spent the rest of the time walking around the facilities and chatting. I also met a couple of other MAC students along the way, all of whom were very nice.

The facilities are quite impressive. There are many breakout rooms, study rooms, team rooms, interview rooms, and computer labs on the business school campus. Classrooms are quite large, and there is also a huge lecture hall. Graduate students also get their own lockers at the business school where they can store their books, among other things. Given that it is quite time-consuming to get to and from the campus - there is no housing ON campus, most of it is withing 1 to 4 miles from it - this is a very convenient feature. There is also a kitchen with a microwave oven and two refrigerators, among other things.

I also had a chance to visit a class - business law elective that covered derivatives and securities law. The class was pretty large, and some of the students did not exactly pay attention to what was going on. I actually found that many students are quite young and appeared to carry an air of immaturity. A smaller number of students, on the other hand, were a bit older - around my age. I later found out that this is because there are two tracks: 1) students who took part in a 5 year program that allows them to complete a BSBA and then get a masters and 2) students who have worked a bit and then returned to school, and who are also more mature and situated.

Overall, I had a good experience. I really liked the campus, enjoyed meeting with the assistant director of admissions and the students, and gathered a more intimate understanding of what I can expect from the program, should I be admitted.

Value in brands and competitive analysis

2008-11-13T19:50:00.004-05:00

Two interesting pieces this week coming from Emory.

The first article looks at the role of brands in mergers and acquisitions. Specifically, it looks at how the acquiring company perceives the brand that it is acquiring and what value it places on its strength.

The second article uses, as its point of entry, Thomas Davenport's now-popular book Competing on Analytics: The Science of Winning. The authors explain how information - data relevant to a sector or industry - can be utilized in improving effectiveness and efficiency of a business, and how it also equips a company with new strategic advantages.

Here is a preview of what's in Davenport's book, and an article from Harvard Business Review.

These are some interesting ideas. Enjoy!

Submitted UNC and BC apps

2008-11-11T19:03:00.004-05:00

Submitted my online applications for UNC and BC. $195 gone just like that!! Tomorrow, going to the post office to send out the references and transcripts to UNC. I sure like it that everything can be submitted online for BC.

Will send out my Bentley stuff once I hear back from the adcom about my questions.

I really feel relieved, because I no longer have to think about whether my essays are as sharp as they can be; it is out of my hands at this point. However, after about 8 drafts of each essay, I doubt that any more improvements would be valuable or make a significant difference.

Welcome the new President

2008-11-09T16:42:00.004-05:00

There is a whole industry surrounding the Obama brand, already. Just out of curiosity, I visited Ebay to see how much some of the items that I own sell for.

An Obama t-shirt that I bought for $20 now sells for $30 to $70.

Some Obama pins that I got for contributing as little as $1 now sell for $3 to $12 each.

A poster that I got for free now sells for $10 to $70.

A sticker set that I got for free now sells for $6 to $40.

A flyer!!! that I received from one of the volunteers now sells for $3 to $7.

A yard sign!!! (which I had to hang in the window, because I do not have a yard) that I got for free now sells for $5 to $25.

And don't even get me started with all of the out of print newspapers and magazines that are selling for 1,000% and 10,000% to 100,000% over the cover price.

An issue of Fast Company profiling the Obama campaign, which I threw out, now sells on Ebay for $4 to $20 (I paid $10 for the subscription, which means I got that issue for $1).

I went out to get the Time and Newsweek issues because I wanted to read the articles on my to and from work on the train, and found out that they sold out on Saturday, before breakfast!!!

I have also noticed a pattern. There are some people in Midwestern and Southern US, who are buying up all of the magazines in the areas where Obama is not as popular and are selling them to all of the Obama-obsessed fans on the West and East coasts, where all of the magazines are sold out.

There is a business opportunity in everything.

The above cover is from the Economist. I would have used Newsweek or Time, but their dumbing down has left me feeling that I am not the audience they are looking for.

Zakaria: Chapter 6

2008-11-01T12:47:00.011-04:00

The sun never set on the British Empire, and - according to a number of commentators - this can almost be said about the US influence around the globe. The British Empire is the closest thing to the level of American presence, influence, and dominance around the world. And he uses the case of the descent and fall of the Empire as a cautionary tale to the US.

The British decline began with the Boer War, which was a quick and easy triumph for the Brits. Keeping the ball rolling, they entered a conflict that was the beginning of their undoing, the Battle of Omdurman. In comparison with the US, the former becomes Afghanistan - though many would beg to differ on the count of it being a swift win for the US-led forces - and the latter the Iraq War. Britain overstretched itself, economically, and has allowed itself to implode as a result of near bankruptcy.

Therein lies one of the biggest differences between the US and the British Empire. The US is economically sound - despite the recent economic crisis, I believe that this will largely remain true for a long time to come - but has overstretched itself politically. As Zakaria points out in some of the other chapters, US has seen a decline in leadership legitimacy. This is largely a result of the American response to the post-911 world. American reaction has been to put up more barriers, which distances US from the rest of the world.

Zakaria is quick to point out that the terrorist threat is a real one, and that it should not be taken lightly. However, he believes that the American response has been to overkill. He is also optimistic. While a lot of financial capital has been going to other places - as a result of the rise of the rest - much of it still comes to America; an interesting fact, given that US is a nation with an abundance of capital. Many US companies are still very competitive, which, once again, is a result of the international competition they face.

US leads in a number of areas of technological and scientific research. However, as many point out, US must take a lead in educating more students in sciences and mathematics; areas largely dominated by foreigners. Graduates of US universities are still the most productive, innovative, and entrepreneurial labor force participants in the world. Zakaria presents a number of examples in which delegates from European and Asian nations come to the US with a hope of learning the American system that causes students to be more effective, creative, and critical thinkers. Let us not forget, however, that many of these American students are naturalized citizens, which means that immigration to the US is still a very important source of our talent. Furthermore, immigrants will increasingly become an important source of population growth for a nation that increasingly opts out of having children or births less children per household than before.

We all know about how many lament the nearly non-existent savings rate of the American public. However, Zakaria presents an interesting reevaluation of the dire statistics. He writes, "Education expenditures are considered 'consumption,' but in a knowledge-based economy, education functions more like savings - it is spending forgone today in order to increase human capital and raise future income and spending power. Private R&D, meanwhile, isn't included in national accounts at all, bur rather considered an intermediate business expense - even though most studies suggest that R&D on average has a high payoff, much higher than investing in bricks and mortar, which counts under the current measures as savings (p. 201)." Zakaria isn't clear about why we should include consumer durables in national accounting under the savings bracket. I will, therefore, exclude it. However, when you count (as a percentage of GDP) the traditional forms of savings - household and corporate - and add this figure (15%) to R&D (2.8%) and education (7.3%), the total figure is 25.1 percent of GDP. This figure, according to the Zakaria-presented measurements, is still lower than other nations - again, if you use the proposed measurement - but is higher than the doom and gloom figures we see in the media. Having said that, Americans are still borrowing 80 percent of the worlds surplus savings and using that money for consumption. Or, as Zakaria puts it, "We are selling off our assets to foreigners to buy a couple more lattes a day (p. 202)."

Back to the rise of the rest. In 1982, 78 of the 128 tennis players participating in the US Open were Americans. Fast forward to 2007, the American figure stood at 20. Similarly, the IPO (initial public offering) market used to be largely dominated by the US. In 2005, 24 of the 25 largest IPOs were held in countries other than the US. Other nations' revenues in the banking sector are pulling closer and closer to the figure for the US. In many respects the world standard is replacing the American standard.

Zakaria urges our "do-nothing" politicians to take note of this quickly-developing global scene and change their partisanship dabbling for a concerted, bi-partisan effort to renew American image in the world, and make US more competitive. He believes that most of our domestic issues can be fixed through minor adjustment and efforts that reach across the isle. As he puts it, "A set of sensible reforms could be enacted tomorrow to trim wasteful spending and subsidies, increase savings, expand training in science and technology, secure pensions, create a workable immigration process, and achieve significant efficiencies in the use of energy." He goes on to note that he does not include health care reform in the list because it is the one issue that requires tremendously complex set of policy and political actions. As someone who was trained in the social sciences, I am a bit reserved in my support for quick fixes. Through scenario playing, we must assess some secondary affects and chain reactions that could follow any policies that are implemented. However, I share his optimism in the ability of the US to devise creative solutions to many daunting problems facing our nation in this age of increasing globalization and internationalization.

Here is an article from Porter on American competitiveness.

Also, a related item from the NYTimes

Zakaria: Chapter 5

2008-10-29T20:49:00.005-04:00

Zakaria's focus here is India and the Indians. Here are some interesting numbers:

- over the last quarter of a century, India's economy has grown at a rate of 8.5 percent

- at PPP, India's per capita income stands at $2,100

- over 300 million Indian's live on less than $1 a day

- India is home to the second -largest HIV-positive population

- India's GDP is 50 percent services, 25 percent industry, and 25 percent agriculture

- personal consumption stands at 67 percent of GDP (second only to US, which is 70 percent of GDP)

- about 25 percent of schools and 80 percent of the health system lie outside of the state sector

- India ranks 128th out of 177 countries on the UN Human Development Index; female literacy rate stands at 48 percent

- the middle class is 300 million strong, and growing

- in a 2005 Pew Global Attitudes Survey, 71 percent of Indian respondents have a favorable impression of the United States (second only to US, where 83 percent of Americans felt the same way)

- India is home to 150 million Muslims

- India boasts 17 languages and 22,000 (yes, that's THOUSAND) dialects

When speaking - or writing - about India, one must keep in mind how young an independent India is. This is a nation that gained independence from Great Britain in 1947, with Jawaharlal Nehru in power.

India is an enormous nation - both in geography and population - and has to be understood at the regional, rather than national level. Each state has an agenda of its own, as well as its own issues and demands. Irrigation may be a live or die issue in one state, while it is absolutely absent from another. Likewise, different parties have differing levels of strength depending on the constituency they "pitch" to. This often leads to a multiplicity of contending policies that end up mired in gridlock. Democracy is India's curse and blessing.

India's foreign policy is a bit more visible than that of China. I would say that this is almost exclusively due to India's status as an internationally recognized democracy. India has for a long time desired to be a nuclear power, and has finally received what it has been asking for. India also has a long history of military forces - largely due to British influence and training. India does not believe that it is a challenge to the world - especially the Western world. Instead, it views itself as an important ally. It is strategically important because of its democratic status, growing economy, and proximity to Central and Southeast Asia.

India's culture has been more visible and exported on a larger basis than that of other emerging economies. This is largely a result of its large English-speaking population. India is also popular because of the frequency with which we invite it into our homes by calling for tech support, or querying about a billing statement from our bank or credit card company. Then, of course, there is Bollywood. Finally, let us not forget about the large Indian population residing in the United States.

India has a tremendous number of entrepreneurs who have won a number of prestigious awards for innovation in technology and management. India has also given birth to a number of internationally recognized companies - Tata, Ranbaxy, Wipro, Infosys, Cipla, Mahindra and Mahindra, among many others. However, India also lacks a lot of the vital infrastructure that is vital to smooth economic functioning - roads, bridges, tunnels, railroads, etc. However, I must agree with Zakaria and the scholars he cites in saying that how the scarcely available infrastructure is used makes a lot of difference. One's hat has to come off to the impressive strides that Indian companies have made through the effectiveness and efficiency with which they have utilized the available infrastructure.

India will continue to be an important nation to watch, especially because of its status as a democracy and its proximity to Pakistan and Afganistan.

Zakaria: Chapter 4

2008-10-26T20:34:00.006-04:00

Chapter 4 presents China. The economic summary has appeared elsewhere and in much more detail. Here are the numbers:

- over 1.3 billion people

- averaged economic growth of about 9 percent a year

- moved around 400 million people out of poverty

- by 2005, China manufactured 48 million air conditioning units, up from 200 in 1978

- foreign exchange reserves have surpassed $1.5 trillion

- in 2008, China earmarked $2.7 billion for education in the form of scholarships and other aid

- as of 2002, corruption cases involving high level officials have risen to 6.1 percent

- in 2004, there were 74,000 protests of some kind; that's up from 10,000 just ten years ago

- road expansion has been growing by 26 percent a year

- about 26 percent of the water in China's largest river systems have been polluted beyond repair; in fact, of the 560 million urban residents, only 1 percent breathe air deemed safe by European Union standards; demand for products that can remove particulates from the air will expand by 20 percent a year and will create a $10 billion market

- a tremendous majority of the Chinese do not turn to a religious with an Abrahamic form of god, but instead rely on the teachings of Confucianism

- trade between China and Africa is growing at 50 percent a year

- Chinese military spending is growing at 10 percent a year, but it is still spending about 10 percent of what the Pentagon does; China is yet to build its first nuclear-powered aircraft carrier; it has about twenty nuclear missiles that could reach US soil (all of these, however, can readily be shut down by the US anti-missile system)

A few interesting numbers to ponder, for sure.

Now, for the meat.

China has certainly become a superpower-like force at the global scale. However, its power is still largely a result of its economic expansion. China seems to have a foreign policy, but it is a policy tremendously different from that of the US and EU. China does not meddle in the affairs of other nations - while Taiwan could be made an exception, it is largely viewed as an internal matter. China's involvement abroad comes in the form of aid, business ventures, various forms of investment, and loans (without any strings attached; far different from the loans originated from IMF and the World Bank).

Chinese foreign policy is limited by its domestic situation. Its focus is still largely on the domestic issues. It walks a very tight rope in retaining the legitimacy of the Communist Party. As it has increasingly embraced a capitalist present and future, the Party has increasingly appealed to a nationalist denominator instead of emphasizing Marx and Mao. China, like Russia, is largely preoccupied with maintaining domestic stability. China has relegated to local officials some level of control and now holds elections at the local scale. It is still largely focused on expanding infrastructure, doing something about the growing pollution problem, and creating opportunities for the rural poor.

China cannot involve itself in morally-motivated excursions at the international scale, because human rights remain wanting in its domestic affairs. China's foreign policy has followed what Joseph Nye named "soft power." In other words, Chinese affairs overseas have consisted of helping governments in need - largely African nations - and providing business and investment opportunities. However, as many other things, it has been soft power with Chinese characteristics. For example, while it has assisted Nigeria, Sudan, and Zimbabwe in economic affairs, it has refrained from condemning these nations on the count of domestic, political affairs. This, as I have already stated, is a result of China's own scant record in these areas.

Zakaria named this chapter "The Challenger," and China has certainly emerged as a challenger - at least to the Western powers - more than an Ally (which is the name of the next chapter, about India). China has expanded its power in Southeast Asia and, as I have mentioned above, has ventured into Africa. China has also become a player in Latin America.

All in all, China is still a very poor nation with a huge number of domestic problems that will keep it occupied for the years to come. However, it still a major player that must be engaged, which is a job that will fall to the next American president.

A few noteworthy items;

China's Trade With the US and the World

China's Charm Offensive

China's energy in Africa

China in Africa: Part 1 and Part 2

Competing in a Flat World

2008-10-26T14:02:00.005-04:00

In light of my reading of Zakaria, I would strongly suggest looking at this work. It highlight issues and cases that are extremely pertinent to the present, global business environment (here is a free chapter).

I believe that anyone who is presently attending a business school - or plans to attend in the near future (category I fall into) - could use this book on his or her shelf. Whether you are in marketing, strategy, finance, MIS, or logistics, you will find something important and applicable to your organization.

Zakaria: Chapter 3

2008-10-25T18:04:00.003-04:00

In chapter 3, Zakaria discusses the non-Western world as he compares it to Europe and North America. He discusses some of the important feats and accomplishments - prior to and during the European Middle Ages - of South and Southeast Asia, northern Africa, and the Arabian world. He then explains why these "worlds" declined just as European power and influence were being established in these areas.

- non-Western nations primarily relied on labor rather than capital, because labor was always extremely abundant and cheap.

- the centralized nature of commercial and governance structures resulted in expansions and contractions that relied on whims of a given leader in power.

- not all of people in the non-Western world turn away from Western ideas and institutions. A number of individuals petitioned the European powers to export to their part of the world the knowledge that they believed would allow them to expand economically, militarily, and politically.

In the final parts of the chapter, Zakaria discusses the idea of modernity and Westernization. Are the two one and the same? Zakaria's answer is as follows:

- entry into modernity exposes a nation to Western ideals and ideas because modernity has largely been built out of Western efforts (though he does not ignore the colonies and slaves that helped in doing so).

- nevertheless, modernity does not have to necessarily be a wholesale adoption of Western ways of doing things. Non-Western nations will adopt those aspects of the West that they find most useful and effective: some economic and business models; military organization; fashion; some foodstuffs. On the other hand, many of the domestically produced things and ideas will thrive as these nations move into modernity.

As Zakaria writes, "Modernity has come with the rise of the West, and so it has take a Western face. But as the modern world expands and embraces more of the globe, modernity becomes a melting pot. Trade, travel, imperialism, immigration, and missionary work have all mixed things up. Every culture has its distinct elements, and some of the survive modernization (p. 85-6)." Some Western ideas and images will be altered in order to appeal to the non-Western audience and consumers. In Zakaria's words, "The real effect of globalization has been an efflorescence of the local and modern (p. 83)."

At one point, Zakaria points out the fact that very few Americans speak two or three languages. I understand his disappointment and sense of frustration with how insular large parts of the US are. However, one must also point out that the American public still does not read or write in English at a satisfactory level. Therefore, we must first teach Americans to speak, write, and read correctly and effectively. Then, we can move on to teaching them Spanish and Chinese.

Zakaria: Chapters 1 and 2

2008-10-23T20:48:00.009-04:00

Finished the first two chapters of Zakaria's book. Main points are the usual suspects:

- The world has become more interconnected as a result of the fall of the Soviet Union; internationalization of communications networks; declining prices of communication; and new, enabling IT.

- The power of the United States did not diminish. Instead, the arrival of other nations at the global scene has made US contend for the title of "superpower." This "rise of the rest" is also changing the legitimacy game. In other words, the US and EU must work harder at the international level in order to gain power legitimacy.

- Many of the new powers are not anti-American. Instead, they are quite indifferent to the US, and focus on their own growing economic power, political stability, and effectiveness of industrial structure.

There are a couple of points that I do not agree with him on:

- Zakaria writes that, since 911, the power of terrorist cells has declined and global controls of their financial accounts and military movements have significantly reduced the chances of new attacks.

While that may be true, terrorism is still an important factor to nations, businesses, NGOs, and quangos. Which leads me to the next point that I disagree with.

-Zakaria writes that businesses have become far more resilient to terrorist attacks and that markets have learned to ignore the threat.

Markets are certainly far more resilient today than they were just ten years ago. However, markets absolutely swing in response to terrorist attacks, exposed plots, suspected threats, or just mere hearsay. Businesses are enduring extra costs as a result of measures that must be taken in dealing with the reality of a terrorist threat.

The best analysis thus far is Zakaria's assessment of what Western and Westernization mean in today's, "post-American" world. For example, countries such as Brazil, Argentina, China, Russia, Vietnam, Singapore, among others, are defining their own economic, organizational, and political structures. Zakaria makes an example of the tradition still prevalent at the World Bank and IMF: the former is usually headed by an American and the latter by a European. While this may bring about nostalgic memories for the Western powers, it ignites outrage when viewed by people who live in some of the largest, most populous economies.

Here, by the way, is an interesting photo:

Where do we go from here?

2008-10-19T17:12:00.003-04:00

In light of Colin Powell's recently announced endorsement of Barack Obama, I think it is useful to look at the man's own foreign policy position. It is also interesting to compare this to Kissinger's assessment of where the US should head, probably the last, great foreign policy analysis of the pre-911 world.

While I am on the topic of foreign policy, here is the latest from Paulson on how China should be engaged in our near future.

Finally, what does the next president face?

The Post-American, hot, flat, and crowded world that we now live in

2008-10-17T21:26:00.002-04:00

I finally ordered the new books by Fareed Zakaria and Thomas Friedman. I look forward to reading them and will certainly share my thoughts here.

In the meantime, I read this conversation between the two authors and found it quite interesting.

The world is not as flat as you think

2008-10-16T19:37:00.003-04:00

Here is a video lecture by Pankaj Ghemawat of Iese. He discusses the limits to the so-called "flat world" and the extent to which we can assume that we live in a truly integrated world. I think that it is worth having a look.

The rescue interconnections

2008-10-07T13:12:00.002-04:00

As someone who loves actor network analysis, I thought that I would share this map from the NYTimes.

I also liked this assessment by Paul Romer of economic fundamentalists and realists.

The developing love triangle

2008-10-03T13:27:00.006-04:00

I think that what is unfolding as part of the Wachovia-Citi-Wells Fargo love triangle is quite interesting, especially given Citi's coordination with FDIC.

While the Citi-Wachovia agreement is certainly legally binding, Wachovia still has a fiduciary responsibility to its shareholders. Therefore, this will be a very interesting case to watch. I would not say that this is free market vs. governmentally backed form of enterprise. However, the nature of this deal has certainly been transformed given FDIC participation.

Here is the assessment by the Deal Professor.

Internal dynamics of financial markets

2008-10-01T13:26:00.004-04:00

I think that this is an important article to look at. Also, here is a book by two professors who were the early pioneers of the approach described in the article.

If you want a copy of the book, I have it in PDF. Just leave your e-mail address in the comments, or e-mail me at

milmeyster.aleksandr@gmail.com

A couple of interesting items in NYT

2008-09-28T18:32:00.006-04:00

This first article is by a guy I have been a fan of for some time, Peter Bernstein - of the Capital Ideas and Against the Gods fame.

I believe that many of the questions Bernstein raises are quite legitimate, given the way in which the last few months have unfolded. He ponders the way in which we will deal with risk as this crisis becomes history. This made me think of an article by Greenspan from the Financial Times, in which he essentially states that we will never have a truly effective model of risk. I have to say, based on the literature I have read, I would have to agree with him.

The second article summarizes the era of high returns for Wall Street in general, and Goldman Sachs in particular, and how it all has come to an end. He then goes on to explain a potential direction for investment banks now turned bank holding companies.

Essays = Almost done

2008-09-27T15:35:00.004-04:00

I am almost done with all of my essays. At this point, I have have finished all of the required essays. While completing my essay for BC, I realized how I will use the additional space provided in the form of an optional essay. Given BC's strong belief in service to a large community of individuals - be they stockholders, employees, or underprivileged children in inner city neighborhoods - I will have to explain my slim record of extracurricular involvement while in college. I strongly believe in the value of community service and I have certainly contributed my fair share after graduation. However, I need to address this issue more explicitly rather than let the admissions team guess at this underlying sentiment.

In other news, I have received two profile evaluations on Beat the GMAT, and both were relatively optimistic about my chances of "getting in." It has to be said, however, that these consultants focus on MBA candidates rather than MSA applicants, and this colors their perspective. At any rate, I feel confident about my chances at all three schools.

I also sent out transcript requests.

Also, something completely irrelevant to the applications. Here is a pretty interesting article from the View (a magazine published by PricewaterhouseCoopers) which assesses some trends in sovereign wealth funds and how these affect US companies.

A new study finds troubling patterns in the behavior of employees ages 25 and under

2008-09-23T19:24:00.002-04:00

Study Finds Young People Remain Apathetic About Office Politics