Picto Diary - 19 April 2016 (Supplement) Hoover to Pismo
Above: My ride, Ducati Multistrada, parking lot Stanford Park Hotel, Palo Alto, CA. 19 April 2016.
Note Duc duct tape fix on right pannier. Couldn't lock the unit, which risked opening while riding. Pannier itself is secure, mounted on the bike.
Duct tape is a must bring along on any long distance motorcycle journey.
2:15 PM. Off to Pismo Beach, 260 miles, where I have a reservation at Shore Cliff Best Western.
Above: Mary Jo and RMK. Hoover Institution Spring Retreat. Stanford University, Palo Alto, CA 18 April 2016.
Dick (retired CEO of Wells Fargo Bank and my boss's boss a long, long time ago at Citi) says his time is 10% with Wells, now. Rest of the time is divided with writing, boards (he's a Hoover Institution Overseer), projects, and trying to keep up with his grandchildren on the ski hill at Aspen, where he and Mary Jo have a residence.
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RMK: What are the three most dangerous words in skiing?
SDT: Dunno.
RMK: "Follow me dad"... or grandpa as the case may be.
Note: We reflected, with amazement, on the astounding ski abilities of our respective 10 year old grand children.
SDT: I know you write frequently on the current competitive situation in the banking industry. Any insights today... eight or so years post Dodd Frank?
RMK: Today, the main competitive advantage for a large bank is being able to keep the regulators happy ... not, whether you have an innovative product or service. Many banks... with otherwise great product and service innovation... are stymied by not having worked the regulatory communication effectively.
Wells' "living will" was fifty thousand pages. Can you believe that?
Also, the small banks can't keep up with the big banks due to an incredible, disproportionate, compliance burden.
SDT: Drew Breakspear, chief regulator of Florida financial institutions, recently told me that a US bank had to have a threshold of $1 billion in assets to have a shot at maintaining compliance and showing an acceptable profit.
RMK: $1 billion may even be too small a number.
SDT: Will un regulated, or little regulated, non bank lenders start to carve into the market share of regulated banks?
RMK: I don't think so. When these unregulated institutions get big enough, the regulators will step in and start regulating them. Many of them will be bought up by the larger institutions and become regulated via acquisition.
SDT: What did you think of last night's speech by Hoover Fellow General Mattis (four star Marine Corps General, head of Centcom 2010 to 2013), warning of the growing threat of Iran to middle east and world stability?
RMK: I know a lot of military people, many of them recently retired like General Mattis, who are very concerned about the growing risks around the world and what they believe to be America's diminished international standing and flagging military readiness.
Above: The Bishop, Mezzanine, and Magnolia. Hoover Institution Spring Retreat. Palo Alto, CA. 19 April 2016.
Bishop finally gets some recognition [ ;-) ] for introducing South Florida luminaries to Hoover. I was seated by one of the development people at last night's dinner. I received a thank-you for introducing new people to Hoover, But, the implied topic of dinner conversation was... "any more Mezzs and Magnolias out there?" Ie. You're only as good as your ability to feed the beast. I learned that when the Miami Opera kicked me off of their board some years ago... I hadn't been doing my job, as head of Citibank in Florida, and Opera board member, to raise money for the opera. "Gee," I mused, in considering my Opera board demise, "I thought they wanted me for my electric personality and love of Opera!"
Look. It's the nature of the beast. Think tanks, cultural organizations, non-profits, depend on donors to fulfill their purpose. One's place in the social hierarchy of the donor group is directly related to his capacity to feed the beast. I'm not looking for recognition in the Hoover social hierarchy... I support Hoover because of their deeply researched, and thoughtfully articulated championship of free market ideas. I enjoy attending the retreats and hearing first hand from some of the top free market scholars in the world. Its one way of advancing/preserving individual freedom and free enterprise, ever under assault from statists and power grabbers. It is a source a personal gratification to me if I can help others to see what I like about Hoover.
Hoover depends on a fairly small donor group to support its activities... two thousand individuals. For those willing to "play," attending their retreats is a great show.
Mezz and Magnolia, are owners of Seabird Key.... just in case you want to get away for a while!
Above: Pismo Beach, CA. 19 April 2016.
Image taken from deck of Ventana Grill.
Park City to Pismo Beach.... 1000 miles and counting.
On the road. On the Duc.
Ventana bar overlooks Pismo Beach and Pacific Ocean. Enjoying ribeye, beans, rice and a Makers rocks as I discourse with a kid from Fresno to my left. He works for Pacific Power maintaining high tension lines and towers between the coast and the Nevada line.... across the Mojave desert. They use the same crane choppers as the ski companies use to set up lift towers.
Told kid I had just ridden the Duc 260 miles from Palo Alto...he asked, "where's that?" He also thought the sequoia were at Yosemite. Even growing up in nearby Fresno, he'd never been to Sequoia National Park. Still, the kid makes six figures, considering the danger of his work.
From Stanford, Hoover Institution, public policy luminaries this AM, to kids doing dangerous work, this PM. Like 'em both. Both are needed. Each is individually deserving of respect.
PS. I liked that the kid, a millennial, was bucking the millennial stereotype of America's most flaccid generation ever. There's hope for America yet.
Bishop, on the road, Pismo Beach, CA
Above: Duct Tape repair of rip in my one pair of cargo shorts. Pismo Beach, CA. 19 April 2016.
See what I mean about the need for duct tape!
Addendum:
Great Ride….congrats.,
Mickey,
Chicago, IL