• About Farm School

    "There are obviously two educations. One should teach us how to make a living and the other how to live."
    James Adams, from his essay "To 'Be' or to 'Do': A Note on American Education", 1929

    We're a Canadian family of five, farming and home schooling. I'm nowhere near as regular a blogger as I used to be.

    The kids are 16/Grade 11, 14/Grade 9, and 13/Grade 8.

    Contact me at becky.farmschool@gmail.com

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    "If you want a golden rule that will fit everybody, this is it: Have nothing in your houses that you do not know to be useful, or believe to be beautiful."
    William Morris, from his lecture "The Beauty of Life"

    "The world of books is the most remarkable creation of man. Nothing else that he builds ever lasts. Monuments fall, nations perish, civilizations grow old and die out; and, after an era of darkness, new races build others. But in the world of books are volumes that have seen this happen again and again, and yet live on, still young, still as fresh as the day they were written, still telling men’s hearts of the hearts of men centuries dead."
    Clarence Day

    "Anyone who has a library and a garden wants for nothing."
    Cicero

    "Histories make men wise; poets, witty; the mathematics, subtile; natural philosophy, deep; moral, grave; logic and rhetoric, able to contend."
    Sir Francis Bacon, "Essays"

    "The chief aim of education is to show you, after you make a livelihood, how to enjoy living; and you can live longest and best and most rewardingly by attaining and preserving the happiness of learning."
    Gilbert Highet, "The Immortal Profession: The Joys of Teaching and Learning"

    "Good judgment comes from experience. Experience comes from bad judgment."
    Walter Wriston

    "I'd like to give you a piece of my mind."
    "Oh, I couldn't take the last piece."
    Ginger Rogers to Frances Mercer in "Vivacious Lady" (1938)

    "No race can prosper till it learns that there is as much dignity in tilling a field as in writing a poem."
    Booker T. Washington

    "Please accept my resignation. I don’t care to belong to any club that will have me as a member."
    Attributed to Groucho Marx in "The Groucho Letters" by Arthur Sheekman

    "If you can't say something good about someone, sit right here by me."
    Alice Roosevelt Longworth

    "If we bring a little joy into your humdrum lives, we feel all our hard work ain't been in vain for nothin'."
    Jean Hagen as "Lina Lamont" in "Singin' in the Rain" (1952)
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How not to save money with home dentistry

More words of wisdom about managing money, from reporter Joe Nocera at The New York Times:

At a panel a month ago, put together by Portfolio magazine, [Elie] Wiesel expressed, better than I’ve ever heard it, why people gave Mr. Madoff their money. “I remember that it was a myth that he created around him,” Mr. Wiesel said, “that everything was so special, so unique, that it had to be secret. It was like a mystical mythology that nobody could understand.” Mr. Wiesel added: “He gave the impression that maybe 100 people belonged to the club. Now we know thousands of them were cheated by him.”

And yet, just about anybody who actually took the time to kick the tires of Mr. Madoff’s operation tended to run in the other direction. James R. Hedges IV, who runs an advisory firm called LJH Global Investments, says that in 1997 he spent two hours asking Mr. Madoff basic questions about his operation. “The explanation of his strategy, the consistency of his returns, the way he withheld information — it was a very clear set of warning signs,” said Mr. Hedges. When you look at the list of Madoff victims, it contains a lot of high-profile names — but almost no serious institutional investors or endowments. They insist on knowing the kind of information Mr. Madoff refused to supply.

I suppose you could argue that most of Mr. Madoff’s direct investors lacked the ability or the financial sophistication of someone like Mr. Hedges. But it shouldn’t have mattered. Isn’t the first lesson of personal finance that you should never put all your money with one person or one fund? Even if you think your money manager is “God”? Diversification has many virtues; one of them is that you won’t lose everything if one of your money managers turns out to be a crook.

“These were people with a fair amount of money, and most of them sought no professional advice,” said Bruce C. Greenwald, who teaches value investing at the Graduate School of Business at Columbia University. “It’s like trying to do your own dentistry.” Mr. Hedges said, “It is a real lesson that people cannot abdicate personal responsibility when it comes to their personal finances.”

And that’s the point. People did abdicate responsibility — and now, rather than face that fact, many of them are blaming the government for not, in effect, saving them from themselves. Indeed, what you discover when you talk to victims is that they harbor an anger toward the S.E.C. that is as deep or deeper than the anger they feel toward Mr. Madoff. There is a powerful sense that because the agency was asleep at the switch, they have been doubly victimized. And they want the government to do something about it.

Read the rest here.

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2 Responses

  1. Thanks for the link, Becky.
    Crazy, huh? It’s good to read Mr. Nocera taking this personal responsibility stance. It is the only one that makes sense. To a great extent, I’d apply this to the mortgage crisis as well — a lot of poor borrower judgment there, too. It’s amazing how many people who appear to be otherwise intelligent and savvy, lose their common sense when enticed by profit potential.

    I don’t watch much TV these days, but happened to catch online the interview Mr. Nocera did with Jon Stewart (The Daily Show). The same one that led to the tiff (and subsequent invterview) between Jon and Jim Cramer (Mad Money). It was unusual and uncomfortable to say the least — If you haven”t seen it, I’d recommend it if only to see the usually manic Cramer disarmingly cowed and contrite.

    As far as the Cramer interview went, he basically apologized for his networks (CNBC) poorly investigated financial reporting and his own overly bullish “buy, buy, buy” and “this rally could be limitless”-type pushes of the last couple of years.
    In his defense, though, on his show he did try to emphasie that people should use his words as a jumping off point, but do their own research! So, while he was often misleadingly bullish, he did try to encourage investor knowledge & responsibility.

    Tough times all around. Maybe this time everyone will learn that valuable lesson.

    Happy Calfing! :) joan

  2. …or is it calving?

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