Immoral Hazard

Have a look at Jeremy Grantham’s latest missive: Immoral Hazard
 
The 1Q 2008 letter looks at asset bubbles and puts the role of the Fed under the leadership of Greenspan and Bernanke under the microscope, with a wistful nod to Paul Volcker:

It’s not that the former Fed boss Greenspan was incompetent that is remarkable. Incompetence is common enough after all, even in important jobs. What’s remarkable is that so many people don’t seem, even now, to get it. Do people just believe high-quality self-justifying blarney?  Or is it just that they apparently want to believe that critical jobs in a great country attract great talent by divine right. 

Sometimes, of course, they do, but sometimes the most important jobs – even that of a presidency or a Fed boss – end up with mediocrities.  Let us pause here to regret the absence of Mr. Volcker and wonder what a parallel Volcker universe would have been like. Just as we can wonder how much a few votes in Florida or a vote in the Supreme Court would have changed our world from what it is today. 

Paul Volcker inherited about as big a mess as we have today. He worked out what he had to do and did it with unusual lack of concern about what Congress thought of the necessary pain involved and the number of enemies he might make. He paid the price for forthright behavior by being replaced, despite a record for correct and tough behavior that makes for the most invidious comparison today. When Volcker was replaced, by the way, he did not moan and groan but like an old soldier quietly disappeared. There were no high-profi le announcements about the economy or any $300,000-an-evening appearances paid for by financial firms. . . .

Continued

Source:

Immoral Hazard
Jeremy Grantham  4/25/2008
https://www.gmo.com/websitecontent/JGLetter_ALL_1Q08.pdf

Category: Federal Reserve

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Friday Evening Jazz: Dexter Gordon

FNJ has a guest DJ tonite: BondDaddy is in the house!

Dexter Gordon is one of the greatest tenor sax players. He had a strong tone and incredible sense of melody. Some players like Sonny Rollins and Joe Henderson had a slippery sense of time; their phrases speed up and slow down, moving within the rythm section’s accompaniment. Not Dexter. Dex’s time was rock solid, never wavering. The rythm section had to accompany his time.

Our_man_in_parisHis playing is incredibly melodic, easily followed by the listener. Ideas naturally morphed from one to the other, always following a logical pattern. However, he was also able to surprise listeners with a run into upper chordal extensions.

His playing provides a logical link between Parker and Coltrane. Dex used many ideas from Parker, but played them with a tone that was deep, bold and soulful.  His tone provides the link to Coltrane, who also favored a deep and rich tenor tone.

Gordon swung — and swung hard. If your feet are not tapping within 8 bars of his starting to play, you’re just not listening.

Our Man in Paris:
This be-bop session is a meeting between three of the most influential
musicians of the forties. The rhythms crackle, the solos fly; Our Man
In Paris is essential Dexter. A nice compilation of standards.

HomecomingHomecoming: Live at the Village Vanguard. Dex lived in Amsterdam for about 10 years, and this was the album be made when he came back. Very cool set. Woody Shaw is on Trumpet, and the two work really well together. THis is Dexter at the very top of his game (and probably one of the top 25 live jazz albums of all time).

He also starred in the Round Midnight, probably the best jazz movie ever made

Go:  Its been widely reported Gordon himself considered this his greatest achievement. Brimming with conviction and poise, Gordon’s gentle-giant sax carries itself with a sort of graceful edge that is difficult to emulate. Never has anyone made the diminished scale sound so musical.

Ballads

Ballads: This is a compilation of his ballads (duh), and he could play just beautifully on these. Gordon delivers his almost sleepy and smoke-filled solos with real grace. Some of the most romantic playing you will every hear.

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Videos after the jump

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