Update. I am slowly returning to normal. I bought a new Honda Ridgeline. I figured the quality of my old one helped save our lives, so I will go with another one.
I had a lot of hassle with banks and Schwab getting the money together but finally accomplished the task. The cost was twice the cost of our first house and almost exactly 1000 times the cost of my first car.
I was a little nervous when I drove for the first time since our accident.
For the entire time I owned my former truck I thought it was a “Rangeline.” I now know it is Ridgeline. I am reminded that for many years I said Warshburn for my alma mater. I now say Washburn. Similarly, I spoke of Italians, with a long I, as in — I talians, until Andy Chirchirillo commented to me –my family did not come from I –taly.
Our minds have many quirks, I am glad to still be able to accept my mistakes and keep learning.
Financial crisis? Speaking of banks, the banking industry has been prominent in recent news. Our youngest son, Shane, is a risk management expert for banks. When the Silicon Valley Bank had its’ problems, I asked for his analysis.
He was very familiar with the situation. He was quick to point out the primary issue was the investment in low interest long term government bonds. Because of the nature of the bank clientele the treasurer should have invested in more fluid investments. When the bank needed cash, they had to sell bonds at a large loss. When the loss was reported, clients made a run on the bank.
Subsequently, I read the following excerpt which supports Shane’s analysis and supports my views to avoid political extremes.
“False narrative No. 1 Ideological opportunism: The fallout from SVB’s collapse is much more of a political problem than it is an economic problem—and it is being driven by the politics of the left and the right. Sadly, flagrant, cliched ideological opportunism cuts across both sides of the aisle.
On the far right, extremists, self-styled anti-woke warriors such as Vivek Ramaswamy and Josh Hawley are absurdly blaming “ESG” and “wokeism” for the demise of SVB. Their use of this politicized rhetoric is equivalent to somebody blaming their weight-loss program when they have to replace a tire on the car—it is just completely irrelevant.
Likewise, on the left, progressive voices have rushed to blame greedy fat-cat corporate cronies and pointed the finger at lax regulation by government entities at the beck and call of their corporate overlords. Frankly, even if SVB had been subject to stronger liquidity and capital requirements, it is hard to imagine what regulations could have abated SVB’s most foundational challenges, which are practically universal to all banks—an asset -liability duration mismatch and higher interest rates eroding the value of their securities. These are not challenges that can be regulated away, lest credit creation come to a complete stop.” Time magazine, Vol. 201 2023.
I liked the balanced analysis. If you have other opinions, please let me know