Sunday, July 7, 2013
Wednesday, January 7, 2009
Morning Mist
Last week there was a gentle fog covering my section of Fruit Cove. When I walked to get the paper I took my camera (with new, Christmas-present lens) and captured some photographs. I have posted these at: http://riveroaks.photoshop.com/. You will need to select the Morning Fog album. Best viewed at full-screen mode
The morning fog has an interesting affect on color: Softer, duller, gentler. Hope you enjoy.
The morning fog has an interesting affect on color: Softer, duller, gentler. Hope you enjoy.
Monday, December 22, 2008
LifeSaver Plant
On Linda's last trip south to purchase violets she spied this plant.
It is a succulent known as Lifesaver Plant or Lifesaver Cactus
(even though it is not a cactus).
The flowers last only a few days but they are very interesting.
Tuesday, October 7, 2008
The Holy Grail of Birds
The Florida bird guidebooks all show a multi-colored finch known as the painted bunting. This bird has a blue head, green wings and an orange-red breast. It looks as if nature used its purist spectral colors in designing this bird.
This bunting is not common. A neighbor had told me that 20 years ago there were some sightings in the neighborhood. We have been here for 12 years. I have never seen a male painted bunting (here or anywhere). A couple of years ago I did see a female …a grayish-green bird.
This morning I noticed a bird on the feeder that looked different. It was early light and the colors were muted. I picked up the binoculars. The colors were just identifiable: blue head, green wings, reddish breast. I started shaking.
He was gone before I could reach my camera but I had identified him. My first male painted bunting sighting here or anywhere.
He returned when the light was brighter and I captured the following. Sorry it is not a great photograph…remember the camera was shaking…
This bunting is not common. A neighbor had told me that 20 years ago there were some sightings in the neighborhood. We have been here for 12 years. I have never seen a male painted bunting (here or anywhere). A couple of years ago I did see a female …a grayish-green bird.
This morning I noticed a bird on the feeder that looked different. It was early light and the colors were muted. I picked up the binoculars. The colors were just identifiable: blue head, green wings, reddish breast. I started shaking.
He was gone before I could reach my camera but I had identified him. My first male painted bunting sighting here or anywhere.
He returned when the light was brighter and I captured the following. Sorry it is not a great photograph…remember the camera was shaking…
Saturday, October 4, 2008
Kiss Your $700,000,000,000.00 Goodbye
This week the U. S. Congress passed and the President signed legislation that authorizes the Secretary of the Treasury to buy up to $700 billion of securities from certain companies. This is a bailout of Wall Street firms or a rescue of the U. S. banking system depending upon your viewpoint or degree of skepticism or cynicism of government.
Many politicians of both flavors are predicting that the taxpayers--meaning the citizens of the United States whether they pay taxes or not--will receive part of these funds back, all of these funds back, or may even make money on the deal.
It is my opinion this money will not come back to the treasury in any noteworthy amount. Here’s why.
Certain banks and other financial institutions are holding assets in the form of CDO’s (Collateralized Debt Obligations) and derivatives of CDO’s know as Credit Default Swaps that are not liquid…meaning no one now wants to buy them at a price at which the owner is willing to sell.
Under an accounting rule known as “Mark-to-Market” the firms holding these assets are required to value them at the market price. This has resulted in the value of many of these obligations being valued as low as 22% of their “value”. Since these firms hold great quantities of these instruments (bad management decisions) this greatly reduces the asset side of their balance sheet and thus they have to hold onto more of their cash to meet reserve requirements. This greatly reduces availability of funds to loan. Also since they may not trust the financial condition of their brothers they may not want to loan to them since they fear they may not get their money back (freezing-up inter-bank borrowing). You can quantify this reluctance by checking the daily LIBOR rate.
The bailout/rescue legislation is designed to provide a buyer for these “toxic assets” and restore liquidity and trust to the financial system.
Easy enough, but why won’t these obligations be salable by the government at some later date when the system is again healthy?
The collective value of our homes (and mortgages on them) is a very large number— trillions of dollars. Wall Street makes its money, in part, by taking a small percentage of the money that passes through its hands. In theory this “bite” allows the firm to provide liquidity and trust to the economy. The home mortgage number was just too large for Wall Street to ignore.
In an effort to compete with Fannie Mae and Freddie Mac (implied government guarantee at the time) and Ginnie Mae (implicit government guarantee) Wall Street, led, I believe, by Goldman Sachs, bought these mortgages in competition with the above entities through companies such as Countrywide. They collected the mortgages and then repackaged into Mortgage Backed Securities to spread the risk. But many of their clients could not buy securities that did not have a high rating from the likes of Moody’s or Standard and Poor’s. So the clever Wall Street folks took packages of mortgages, often sub prime since they carried higher interest rates) and repackaged them into what are known as Tranches (French for slices). They divided them into 10 or 11 slices. The top (senior debt) CDO’s were to be redeemed with principal and interest from the first funds received from the mortgages. The bottom was to be redeemed with principal and interest from the last funds received from the mortgages.
The top level tranches received high ratings from the rating agencies. This allowed them to be sold to certain entities such as state government retirement funds that were prohibited from owning low or unrated securities. These carried the lowest interest rates. The bottom levels carried high interest rates (and book value) and were generally unrated by the agencies. Generally the banks/institutions were not able to sell these CDO’s based on the lowest level tranches.
These bottom-level tranche-based CDO’s comprise what has become known as Toxic Assets.
Since home values will have to retrench, i.e. drop, to bring the housing market back into balance and have a reasonably active housing market the underlying value of the low-level tranches must also decline as the first-to-default/short-sell will result in a truncated income stream that will NEVER reach these lower level CDO’s whose value is based on these bottom-tier tranches.
Guess which securities the Secretary of the Treasury will buy?
Why was the only solution to bank/institution liquidity offered by the Secretary of the Treasury the purchase of these unwanted securities?
Guess where the Secretary of the Treasury was previously employed…yep…Paulson was a former CEO of none other than Goldman Sachs (GS). He must own hundreds of millions of dollars of GS stock.
I would like to short these securities that the government will buy…any takers?
This is somewhat simplified for ease of understanding--mine. For example, the fact that CDO’s are based on an income stream coming from certain tranches and not tranches themselves does not change the underlying risk to you the holder of the national debt. I have not discussed derivatives used, in theory, to reduce risk. The real damage to the institutions was to over leverage. They did this since it allowed them to make a bite of a much larger stream of funds. Leverage of 25 times was not uncommon. That is why such a small number of foreclosures-- to date 4% of sub prime mortgages-- has created such a large ripple.
Many politicians of both flavors are predicting that the taxpayers--meaning the citizens of the United States whether they pay taxes or not--will receive part of these funds back, all of these funds back, or may even make money on the deal.
It is my opinion this money will not come back to the treasury in any noteworthy amount. Here’s why.
Certain banks and other financial institutions are holding assets in the form of CDO’s (Collateralized Debt Obligations) and derivatives of CDO’s know as Credit Default Swaps that are not liquid…meaning no one now wants to buy them at a price at which the owner is willing to sell.
Under an accounting rule known as “Mark-to-Market” the firms holding these assets are required to value them at the market price. This has resulted in the value of many of these obligations being valued as low as 22% of their “value”. Since these firms hold great quantities of these instruments (bad management decisions) this greatly reduces the asset side of their balance sheet and thus they have to hold onto more of their cash to meet reserve requirements. This greatly reduces availability of funds to loan. Also since they may not trust the financial condition of their brothers they may not want to loan to them since they fear they may not get their money back (freezing-up inter-bank borrowing). You can quantify this reluctance by checking the daily LIBOR rate.
The bailout/rescue legislation is designed to provide a buyer for these “toxic assets” and restore liquidity and trust to the financial system.
Easy enough, but why won’t these obligations be salable by the government at some later date when the system is again healthy?
The collective value of our homes (and mortgages on them) is a very large number— trillions of dollars. Wall Street makes its money, in part, by taking a small percentage of the money that passes through its hands. In theory this “bite” allows the firm to provide liquidity and trust to the economy. The home mortgage number was just too large for Wall Street to ignore.
In an effort to compete with Fannie Mae and Freddie Mac (implied government guarantee at the time) and Ginnie Mae (implicit government guarantee) Wall Street, led, I believe, by Goldman Sachs, bought these mortgages in competition with the above entities through companies such as Countrywide. They collected the mortgages and then repackaged into Mortgage Backed Securities to spread the risk. But many of their clients could not buy securities that did not have a high rating from the likes of Moody’s or Standard and Poor’s. So the clever Wall Street folks took packages of mortgages, often sub prime since they carried higher interest rates) and repackaged them into what are known as Tranches (French for slices). They divided them into 10 or 11 slices. The top (senior debt) CDO’s were to be redeemed with principal and interest from the first funds received from the mortgages. The bottom was to be redeemed with principal and interest from the last funds received from the mortgages.
The top level tranches received high ratings from the rating agencies. This allowed them to be sold to certain entities such as state government retirement funds that were prohibited from owning low or unrated securities. These carried the lowest interest rates. The bottom levels carried high interest rates (and book value) and were generally unrated by the agencies. Generally the banks/institutions were not able to sell these CDO’s based on the lowest level tranches.
These bottom-level tranche-based CDO’s comprise what has become known as Toxic Assets.
Since home values will have to retrench, i.e. drop, to bring the housing market back into balance and have a reasonably active housing market the underlying value of the low-level tranches must also decline as the first-to-default/short-sell will result in a truncated income stream that will NEVER reach these lower level CDO’s whose value is based on these bottom-tier tranches.
Guess which securities the Secretary of the Treasury will buy?
Why was the only solution to bank/institution liquidity offered by the Secretary of the Treasury the purchase of these unwanted securities?
Guess where the Secretary of the Treasury was previously employed…yep…Paulson was a former CEO of none other than Goldman Sachs (GS). He must own hundreds of millions of dollars of GS stock.
I would like to short these securities that the government will buy…any takers?
This is somewhat simplified for ease of understanding--mine. For example, the fact that CDO’s are based on an income stream coming from certain tranches and not tranches themselves does not change the underlying risk to you the holder of the national debt. I have not discussed derivatives used, in theory, to reduce risk. The real damage to the institutions was to over leverage. They did this since it allowed them to make a bite of a much larger stream of funds. Leverage of 25 times was not uncommon. That is why such a small number of foreclosures-- to date 4% of sub prime mortgages-- has created such a large ripple.
Sunday, July 20, 2008
Sunday, June 8, 2008
Recipe: Szechwan Cashew Chicken
This dish was my first venture into Chinese cooking 20 years ago. I used a Betty Crocker recipe then and it is the basis for this recipe. This version takes some non-Chinese directions and finishes with a Thai concept. It is not what you would call authentic but I believe you will like it.
There are some ingredients that can be substituted and others you must have.
Chinese use cornstarch to thicken their sauces. If you add the cornstarch directly it will clump and make a mess. We need to make a cornstarch/cold-water slurry: The cornstarch in the slurry will settle so just before use re-suspend the cornstarch with your thumb. You may you use a lot, a little, or none. Do not add until the end, adding a little at a time until you get the desired consistency. The cornstarch will cook in seconds in a hot wok. Many recipes will call for adding a set amount earlier in the cooking process. If you do this you loose control of the thickness. This can lead to failure. Experience talking.
We will be browning the chicken. This is counter to a true Chinese version of this dish.
1 Lb Chicken, white meat, cut into bite size chunks or strips
4 Oz Cashews, raw, If not available use unsalted roasted
1 Can (small) Water chestnuts, sliced drained
2 Carrots peeled, sliced 2mm thick on the diagonal
1 Bell Pepper, green, small cut into chunks, approx 1 “
1 Onion, small yellow cut into 8 pieces and divide the leaves
2 T Sesame oil toasted
2 T Soy sauce
1 T Sherry dry is preferred
½ Cup Chicken stock low sodium or homemade
1 t Ginger approx. 1 inch piece, grated, peel first if you like
2 T Cornstarch (divided)
1 T Flour, AP
1 T Hoisin Sauce
1 to 2 scallions chopped fine
10 or so leaves Mint, fresh only I use spearmint, chocolate, and orange mint, in a chiffonade
1 to 2 t Chili paste the oriental store stuff, not chili sauce from Publix
1 Pinch Salt For cashews only
¼ t Pepper white or black, white is traditional
Peanut oil
Substitutions:
For the Chicken you could use pork tenderloin. Or dark meat chicken, or tender veal;
For vegetables: Broccoli, asparagus, beans, snow or sugar peas, red bell pepper, bamboo shoots. Pay attention to the colors carrots and green peppers with the white chicken looks nice, red bell peppers with asparagus ditto, etc.
For chili paste: any source of heat, habanero or other chilies, Tabasco sauce
For Cashews: blanched almonds work pretty well, peanuts OK, walnuts OK, pecans no,
Peanut oil - substitute vegetable oil, do not use olive oil or butter
For the sesame oil, Hoisin sauce, ginger, onion, scallions, and soy sauce there are no real substitutes.
This recipe can be done in four steps. You may pause after step 1, 2 or 3. When you begin step 4 it is show time and you need to complete and serve. Step 4 will take less than 10 minutes.
Step One: Prepare the Chicken.
We will marinate the cut-up chicken in the sherry, soy sauce and pepper for 30 minutes (Up to 2 hours). Usually between 30 and 60 minutes is fine. This is for flavor not to tenderize.
This is a good time to prepare the batter of 1 T cornstarch and 2 T sesame oil, whisk well to combine and set aside. We will use this batter in step three.
Step Two: Prepare the Raw Cashews
Heat a wok with a little peanut oil to medium and brown the raw cashews. Don’t burn them. When brown all over remove to paper towel and use the pinch of salt to season. If you are using already roasted cashews this step is already done. Don’t use any cashews with flavor coatings and try to use unsalted.
Step Three: Cook the chicken
Heat 1 to 2 T of oil in the wok. It’s ready when you see slight wisp of smoke.
Move the chicken from the marinate to the batter. This is a thin batter. Coat well and add the chicken in one layer with little touching. It may take two or more rounds, add oil as necessary but you are not frying you are sautéing. Leave the chicken in its original position (side) until nicely browned then turn once and brown the other side. When done remove to a plate. DON’T OVERCOOK. Judge by feel or cut a piece in half if necessary.
Step Four: Show time
Have your mise-en-place ready:
Heat wok with 2 T oil. When you see the first faint wisp of smoke wok is ready, add carrots followed in a minute or so with the onion and ginger. Cook for a couple of minutes then add bell pepper, water chestnuts, Hoisin and chili paste. Stir to bring everything together-- add the chicken stock. Return the chicken and any juices to the wok. When hot add a little of the slurry of cornstarch/water. If necessary. Finish with the scallions and mint, stir to combine and serve.
Notes:
Chiffonade: This is a cutting into thin strips. For leaves, stack, roll, and cut cross-wise.
Mise-en-place: This is having all the stuff you need prepped and ready to go.
T = Tablespoon
t = teaspoon
There are some ingredients that can be substituted and others you must have.
Chinese use cornstarch to thicken their sauces. If you add the cornstarch directly it will clump and make a mess. We need to make a cornstarch/cold-water slurry: The cornstarch in the slurry will settle so just before use re-suspend the cornstarch with your thumb. You may you use a lot, a little, or none. Do not add until the end, adding a little at a time until you get the desired consistency. The cornstarch will cook in seconds in a hot wok. Many recipes will call for adding a set amount earlier in the cooking process. If you do this you loose control of the thickness. This can lead to failure. Experience talking.
We will be browning the chicken. This is counter to a true Chinese version of this dish.
1 Lb Chicken, white meat, cut into bite size chunks or strips
4 Oz Cashews, raw, If not available use unsalted roasted
1 Can (small) Water chestnuts, sliced drained
2 Carrots peeled, sliced 2mm thick on the diagonal
1 Bell Pepper, green, small cut into chunks, approx 1 “
1 Onion, small yellow cut into 8 pieces and divide the leaves
2 T Sesame oil toasted
2 T Soy sauce
1 T Sherry dry is preferred
½ Cup Chicken stock low sodium or homemade
1 t Ginger approx. 1 inch piece, grated, peel first if you like
2 T Cornstarch (divided)
1 T Flour, AP
1 T Hoisin Sauce
1 to 2 scallions chopped fine
10 or so leaves Mint, fresh only I use spearmint, chocolate, and orange mint, in a chiffonade
1 to 2 t Chili paste the oriental store stuff, not chili sauce from Publix
1 Pinch Salt For cashews only
¼ t Pepper white or black, white is traditional
Peanut oil
Substitutions:
For the Chicken you could use pork tenderloin. Or dark meat chicken, or tender veal;
For vegetables: Broccoli, asparagus, beans, snow or sugar peas, red bell pepper, bamboo shoots. Pay attention to the colors carrots and green peppers with the white chicken looks nice, red bell peppers with asparagus ditto, etc.
For chili paste: any source of heat, habanero or other chilies, Tabasco sauce
For Cashews: blanched almonds work pretty well, peanuts OK, walnuts OK, pecans no,
Peanut oil - substitute vegetable oil, do not use olive oil or butter
For the sesame oil, Hoisin sauce, ginger, onion, scallions, and soy sauce there are no real substitutes.
This recipe can be done in four steps. You may pause after step 1, 2 or 3. When you begin step 4 it is show time and you need to complete and serve. Step 4 will take less than 10 minutes.
Step One: Prepare the Chicken.
We will marinate the cut-up chicken in the sherry, soy sauce and pepper for 30 minutes (Up to 2 hours). Usually between 30 and 60 minutes is fine. This is for flavor not to tenderize.
This is a good time to prepare the batter of 1 T cornstarch and 2 T sesame oil, whisk well to combine and set aside. We will use this batter in step three.
Step Two: Prepare the Raw Cashews
Heat a wok with a little peanut oil to medium and brown the raw cashews. Don’t burn them. When brown all over remove to paper towel and use the pinch of salt to season. If you are using already roasted cashews this step is already done. Don’t use any cashews with flavor coatings and try to use unsalted.
Step Three: Cook the chicken
Heat 1 to 2 T of oil in the wok. It’s ready when you see slight wisp of smoke.
Move the chicken from the marinate to the batter. This is a thin batter. Coat well and add the chicken in one layer with little touching. It may take two or more rounds, add oil as necessary but you are not frying you are sautéing. Leave the chicken in its original position (side) until nicely browned then turn once and brown the other side. When done remove to a plate. DON’T OVERCOOK. Judge by feel or cut a piece in half if necessary.
Step Four: Show time
Have your mise-en-place ready:
Heat wok with 2 T oil. When you see the first faint wisp of smoke wok is ready, add carrots followed in a minute or so with the onion and ginger. Cook for a couple of minutes then add bell pepper, water chestnuts, Hoisin and chili paste. Stir to bring everything together-- add the chicken stock. Return the chicken and any juices to the wok. When hot add a little of the slurry of cornstarch/water. If necessary. Finish with the scallions and mint, stir to combine and serve.
Notes:
Chiffonade: This is a cutting into thin strips. For leaves, stack, roll, and cut cross-wise.
Mise-en-place: This is having all the stuff you need prepped and ready to go.
T = Tablespoon
t = teaspoon
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