My family’s poet laureate, Harris Gardner, presented the following at the 2020 birthday party held in honor of my sister, Elizabeth Tan.
Illumination To Elizabeth on Her 61st Birthday
When you were four That bump on your head At the bottom of basement steps Must have been the kiss that unlocked The old soul stirring within. They found you giggling and grinning, According to family lore.
Your serenity and smile have illuminated The lives of those that share Your eventful timeline And the wider world, as well.
Your singular calling began in early youth As you evolved into a seeker of wisdom’s truth. You have continued your course in life, Exploring worlds, both internal And beyond normal horizons.
In the realm of academe, student multitudes Entered your classes as tabula rasas And departed marveling at your awesome acumen And the power of their own reflections.
You are a partner at home and in health, A nurturer, researching a wealth of healing; Apostle of wellness in home and community. Aficionado of the arts, you have performed Many roles on the largest stage of many curtain calls. For all this and more, it is my notion That you fully deserve a standing ovation.
Nonsense numerology. This is birthday 73 for me. According to the internet, and Sheldon Cooper, 73 is the best number. 73 is the 21st prime number. Its mirror, 37, is the 12th. The mirror of 12 is 21. 21 is the product of multiplying 7 and 3 In binary 73 is a palindrome, 1001001.
But it is the swapping of equity for debt that is the warning from the HBR article. We have this moral hazard for corporation management because the Federal Reserve is manipulating interest rates. The cost of equity capital for a company is approximately the reciprocal of the P/E ratio. So for a stock with a P/E of 15, the cost of equity capital is 1/15 = 6.6%. With debt capital only costing 3% or less, management is enticed to take on the risk. The problem is that taking on debt requires them to make regular interest payments, while equity capital can suspend dividends whenever they want. Taking on debt to buy back stock is bad. Distributing cash also reduces the a company’s chances to weather a downturn so management needs to consider that before a buyback. But investing the money into growth activities for the company that don’t work out also reduce the safety of the company.