Gadgets: Motorola SBG901 SURFboard Wireless Cable Modem Gateway

I recently signed up with Comcast through Broadbandoffers.com and received a free* (*after rebates) modem — no choice as to make/model was provided. The modem I received was a Motorola SBG901 wireless modem gateway. During my first few weeks of ownership, I experienced frequent Internet connection issues. I tried switching channels, alternating between the built-in wireless functionality and using my trusty Linksys WRT-54GL (with Tomato Firmware). Nothing seemed to work. According to all the forums, my signal strength was optimal. Finally, pingtest.net showed massive packet loss (>55%) which led me to search for help in the ether.

After trying a variety of suggestions, I came across the following thread which I am obliged to pass on:

Comcast Forums: Motorola sbg901 bridging mode

The problem with this device is that the default settings are not friendly if you plan to use a separate wireless access point. The built-in firewall causes the packet loss I experienced, and the correct settings are non-obvious. Since applying the ‘correct’ settings I have not experienced any further service disruptions.

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FDIC Bank Failure Data

The FDIC publishes a list of banks closed by the Office of Thrift Supervision for which it has acted as the conservator.

Since February of 2007, this includes 428 banks in 41 states with a mean of 2.06 bank failures per state per year subsequent.

The states with the highest number of failed banks are as follows:

  1. Georgia (47)
  2. Florida (60)
  3. Illinois (48)
  4. California (38)
  5. Minnesota (19)
  6. Washington (17)
  7. Missouri (12)
  8. Arizona (12)
  9. Michigan (12)
  10. Nevada (11)

The states with the highest value of bank assets at closure are as follows:

  1. Nevada ($315.9B)
  2. California ($105.7B)
  3. Florida ($36.3B)
  4. Illinois ($33.5B)
  5. Alabama ($31.0B)
  6. Puerto Rico ($20.4B)
  7. Texas ($19.2B)
  8. Ohio ($12.9B)
  9. Washington ($10.6B)
  10. Colorado ($8.2B)

The states with the highest shortfall of deposits relative to assets are as follows:

  1. Nevada ($120B)
  2. California ($30.7B)
  3. Alabama ($25.8B)
  4. Texas ($14.5B)
  5. Florida ($7.6B)
  6. Puerto Rico ($5.6B)
  7. Ohio ($4.1B)
  8. Illinois ($3.5B)
  9. Arkansas ($1.9B)
  10. Washington ($1.3B)

In the last two lists, Nevada and California together make up over half of the total assets/shortfall.

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Everything Old Is New Again: Public Library Staff

I picked up Oscar Peterson plays the Cole Porter Songbook at the library today. The self-checkout computers were down and the staff member who checked me out complimented my selection and recommended another jazz musician (see below) she heard about on NPR/NYT. The world briefly and suddenly felt smaller and more comfortable again — it wasn’t just an Amazon or Pandora recommendation.

It is not as if I walk in to the library thinking, “Thank goodness for the interchangeable automatons that fulfill my media requests via KCLS.org“, but that’s what technology allows us to do in practice. I like the speed and efficiency self-checkout allows, and there are times when I can’t afford to indulge even the most well-intentioned chit-chat. However, today it was a welcome change of pace and I’m grateful for the staff at the KCLS Kingsgate branch.

Boyd Lee Dunlop

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Shock: Weak Dollar Lifts Equity Markets

Not a lot of time to read the news lately, but I caught a Bloomberg Op-Ed today, ‘Strong Dollar Advocates Make a Weak Case: Schnidman and Nadler‘.

In it, the authors claim that, “What gets lost in this clamor is any discussion of winners and losers from a strong U.S. currency”. They go on to detail their research in comparing the S&P 500 to a dollar index:

This comparison of USD (U.S. Dollar Index) and the SPX (S&P 500) shows that on each of the seven occasions since 2008 when the dollar index reached an intermediate high, the S&P 500 hit an intermediate low. Perhaps no other asset in recent years has traded as precisely in (inverse) tandem with the market as the U.S. dollar. A weaker dollar might be easy fodder for politicians seeking to score rhetorical points, but it also has provided fuel for every intermediate market rally since 2009.

Firstly, it seems that one could argue from this data that monetary policy is being used solely to benefit equity investors, and that the Federal Reserve has largely achieved this goal.

Secondly, the authors seem to be ignoring that a weak dollar causes all prices to rise. While it may be comforting to see the nominal value of your investments go up in the short term, in the long term the purpose of investing is to increase future consumption (aka standard of living). If a weak dollar increases the cost of future consumption more quickly than it does the value of your equity investments, aren’t you still “losing”?

At best, the lift to equity markets described above represents a wealth transfer from holders of other asset classes (ex. cash, real estate) to holders of equities. One could call this an extremely regressive tax, as equity owners are more likely to have a higher economic status. As I’ve mentioned elsewhere, IRS statistics on top wealth-holders show that 55% of the increase in wealth enjoyed between 1992 and 2004 was due to increasing securities prices alone.

As I have not yet amassed enough wealth to gamble it in equity markets or anchor it in real estate, I am confined to paying off debts and holding cash (which I’ve hedged). This makes me, a college graduate and young professional, one of the biggest losers from a weak-dollar policy. It erodes both my assets and the purchasing power of my income.

How other young people in similar circumstances (i.e. not having inherited a family fortune or business) can consistently support policies and politicians that explicitly undermine their economic mobility is difficult to understand.

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Making It in America TL;DR Version

What follows are a few select paragraphs from Adam Davidsons article, ‘Making It In America’. In it, he uses Standard Motor Products (an aftermarket auto parts manufacturer) as a representative example of the current state of manufacturing in the United States. Then he compares the stories of Maddie and Luke, representative of low-skilled and high-skilled labor respectively.

…all assembly workers have roughly the same pay grade—known as Level 1—and are seen by management as largely interchangeable and fairly easy to replace. A Level 1 worker makes about $13 an hour, which is a little more than the average wage in this part of the country. The next category, Level 2, is defined by Standard as a worker who knows the machines well enough to set up the equipment and adjust it when things go wrong. The skilled machinists like Luke are Level 2s, and make about 50 percent more than Maddie does.

For Maddie to achieve her dreams—to own her own home, to take her family on vacation to the coast, to have enough saved up so her children can go to college—she’d need to become one of the advanced Level 2s. A decade ago, a smart, hard-working Level 1 might have persuaded management to provide on-the-job training in Level-2 skills. But these days, the gap between a Level 1 and a 2 is so wide that it doesn’t make financial sense for Standard to spend years training someone who might not be able to pick up the skills or might take that training to a competing factory.

After six semesters studying machine tooling, including endless hours cutting metal in the school workshop, Luke, like almost everyone who graduates, got a job at a nearby factory, where he ran machines similar to the Gildemeisters. When Luke got hired at Standard, he had two years of technical schoolwork and five years of on-the-job experience, and it took one more month of training before he could be trusted alone with the Gildemeisters. All of which is to say that running an advanced, computer-controlled machine is extremely hard. Luke now works the weekend night shift, 6 p.m. to 6 a.m., Friday, Saturday, and Sunday.

I never heard Maddie blame others for her situation; she talked, often, about the bad choices she made as a teenager and how those have limited her future. I came to realize, though, that Maddie represents a large population: people who, for whatever reason, are not going to be able to leave the workforce long enough to get the skills they need. Luke doesn’t have children, and his parents could afford to support him while he was in school. Those with the right ability and circumstances will, most likely, make the right adjustments, get the right skills, and eventually thrive. But I fear that those who are challenged now will only fall further behind.

The Atlantic: Making It In America (Jan/Feb 2012)

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