Posted 4:36 PM by Zachary (e-mail)
IB vs S&T (Tongue In Cheek)
From the New York Times:

"But a successful fixed-income trader is now making over all more than $1.5 million - what a top investment banker would have reaped in 2000 - while his or her banker counterpart is probably taking home something closer to $900,000."

On the other hand, bankers do get to spend nearly double the hours at the office. I don't know about you, but I'd gladly forfeit $600K to be able to spend my nights and weekends in my cubicle!

...Man, I can't wait to start working again...

Posted 3:01 PM by Zachary (e-mail)
Muse
Chickens aren't sexy or exciting, and so I've been struggling with what to draw for my 2005, Year of the Rooster (in the Japanese zodiac), New Year's card. Admit it, compared to monkeys or dragons, roosters are a bit blah.

So anyway, I'm wrapping up a used CD that I sold on Amazon, when a lightbulb goes off in my head. And this wasn't any 60watt bulb, this was a klieg light. Six hours later my 2005 card is off to PSPrint.com (highly recommended, by the way).



The cards I've drawn over the past six years are here.

Posted 9:59 AM by Zachary (e-mail)
Leftovers
It's about time I link to the other Ross School of Business weblogs out there, TechieDude, TonoTono (in Japanese), and YodaLuke (also in Japanese). We also have a student writing an MBA Journal for Business Week.

...

So, Michigan has made the Rose Bowl again this year, albeit only getting b-slapped by Ohio State. I did the Rose Bowl trip last year, and it was fun: seeing Los Angeles for the first time, meeting a bunch of California alumni, watching a [bad] game in good weather. But the game definitely lacked the atmosphere of a match in the Big House (fans actually watched the game sitting down!?!) So, although it was a fun trip to do once, I'm not planning on laying out $140 per ticket this year.

...

For potential applicants to the Ross School of Business, there are a whole bunch of student ambassadors eager to answer your questions.

...

Gangsters? Or gangstahs? You decide.

...

Paper I've been most intending to read, but haven't yet: the Kansas City Fed's report on the potential impact of the Baby Boom generation's retirement on financial markets.

...

Alas, the paper I have been buried in is this 45-page report by McKinsey on the residential construction industry in Japan. One of the challenges of being an MBA2 with a job in hand is finding new goals and challenges. Well, I found a big one when I chose this paper as the subject of my final presentation in Business Japanese I. I've always been one to growl "bring it on"...as I'm getting my teeth kicked in (thanks, MIT education).

...

Along similar lines, I've put a lot of time into running the Finance Club's sales and trading meetings. Not only does this afford me the opportunity to give back to the school and sharpen my public speaking skills, but I've found that in teaching about financial topics I've gained a deeper understanding of them as well. Incidentally, doing Google searches restricted to PDF files (filetype:pdf) is the best way to find serious articles on financial topics.

...

"Black Friday"?!? When did the day after Thanksgiving go from an informal day of rest to "Black Friday", the day in which everyone must rise early, jam into crowded malls and shop for the same old sh!t they can any other day of the entire year?!?! I mean, it's a good thing that Lorie Ennen got to Wal-Mart at 3:30am this morning, because we all know saving $15 on a TV set is a fair trade for the very last scraps of her dignity. And it's not like she could have bought the same TV on Wednesday or tomorrow; after all, it's not like Wal-Mart is known for keeping their stores well-stocked or anything (I won't even bring up internet shopping)!

When you read stories like this, you realize that the reason only 51%+/- of Americans vote each election is not because they're too busy to head to the polls, but rather because they're lazy. Period.

...

Sorry to end this post on a rant, and I'm all for capitalism, but...well, it just seems to be a bit off, a bit sick, to feel such a greed for shopping. And to feel no shame about flaunting it in public.

Posted 11:53 AM by Zachary (e-mail)
Ross Merchandise Available
About two months earlier than expected, merchandise with the new Ross School of Business name is now available. The general sentiment among students is that the administration did a good job of integrating the Ross name into the brand while keeping the block-M logo and Michigan name front and center.

Posted 5:08 PM by Zachary (e-mail)
MBA2's Weekly Schedule
Last year I wrote a nice summary of my weekly schedule as an MBA1; the schedule this year is much more relaxed.

This term, Tuesday has been the worst day in my schedule. In Fall B, I have class from 8:50 to 10:20 (Corporate Financial Engineering), then Business Japanese north of the main campus from 11:00 to 13:00, then class back at the business school from 14:10 to 15:40 (Management Presentations), and then the spirit-crushing Financial Engineering I taught through the Math Department, in North Campus (i.e. 4 miles from main campus), from 18:00 to 21:00. I can't complain too much, since it was my choice to take non-Business School courses, but still, that's a pretty ugly schedule.

The flip side is that on Monday and Wednesday, I only have one class (Financial Trading, in the Tozzi Center) from 14:10 to 15:40. Depending on the weather, both days usually shape up as "golf practice mornings" in my calendar. Thursday's I have two classes, and, unlike every other MBA student, on Friday I have class, Business Japanese I again, from 13:00 to 15:00.

Because 2 of my 5 courses are outside of the Business School, the number of team meetings for coursework has dropped tremendously this term, which is both good and bad. For the most part I've been able to limit meetings to Sunday afternoon and evening, since I know I'll be on campus then to lead the Finance Club meetings anyway.

Strangely enough, my schedule for next term looks to be nearly the same as this one. Tuesday's again are ugly: classes from 8:50 to 10:20 (FIN 631 & 632: Banks & Financial Institutions, and Off Balance Sheet Banking), from 10:20 to 12:40 (MO 512/LHC 508: Bargaining & Influence Skills, and Securities Law); then, in second half of the term, from 12:40 to 14:10 (FIN 618: Derivatives), which conflicts with my full-term Business Japanese II course from 13:00 to 15:00, again north of the main campus; and 19:00 to 22:00 (BE 560: Macroeconomic Environment for Business). Ugh.

The payoff is that I have no classes on Mondays throughout the term, and no classes on Wednesdays from March on (hello, golfing?). Thursdays are a bit hectic, but are less so than Tuesday because 1. I don't have Japanese then, and 2. I don't have a night class. Fridays, unfortunately, I still have Japanese from 13:00 to 15:00.

All in all, I'm finally starting to enjoy my classes now. Even when you get to choose the courses you want, it takes a while to figure out how to use the classes as avenues for learning what's most important to you. You've paid for the whole buffet lunch, but it's best to pick what you want to eat carefully.

Posted 3:03 PM by Zachary (e-mail)
Bidding Update
In an update to this post: I bid enough points (by a wide margin) for all the courses I wanted in Winter term, so my schedule is set.

Posted 2:36 PM by Zachary (e-mail)
Diversity in Business School
Let's start with a bold premise: MBA programs are the last bastion of intellectual diversity in higher education. This is taken for granted by most MBA students, but shouldn't be. As aptly captured by this New York Times article, most other advanced degree programs are ideallogical monopolies: led by a professor class that march in lockstep and intolerant of dissent.

This came to mind today at a party with a bunch of students from one of U of M's other masters programs (in the social sciences). One woman asked me, very seriously, how I could reconcile being in business with [leading a good life]. Other students mentioned that they felt stifled in class, afraid to voice even the mildest objection to the liberal platitudes that ruled over their classes.

To me, this is the antithesis of what higher education should be about. Higher education should be freeing; students should feel comfortable exploring ideas, debating with one another, and even joking around. This is what business school is like. There are CEMP students focusing on integrating environmental concerns into business management, and there are students looking to join Exxon; and they will go to class, hang out, and share beers together.

It's not that MBA students care any less about the issues; but rather they are tolerant of differing opinions. It's a shame that so few other departments share that philosophy.

Posted 4:59 PM by Zachary (e-mail)
Farewell to the Big House


Although Michigan beat Northwestern handily, 42-20, today's was a bittersweet game, as it was the last home game of the season (and, thus, the last I'll see as a student). Getting to experience the excitement of big-time college football has truly been a great aspect of coming to school here.


(Touchdown video, 5.4MB)

The sooner I can get on the waitlist for alumni tickets (I hear it's a 3~4 year wait, unless you donate serious cash), the better.
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Posted 1:39 PM by Zachary (e-mail)
The One Downside of B-School
No matter if you came to school with a huge bank account or not, if you have a great job lined up or not, there is nothing, nothing pleasant about watching savings accounts dwindle and student loans/credit card balances rise. Even if you have an advanced spreadsheet model showing that you'll break even in less than two years, it doesn't feel good to be so deep in the hole.

This is a universal truth; it applies to every student, at every MBA program, throughout the country. And as fun as business school is (especially once recruiting is behind you), a part of me can't wait to start making money again.

Posted 8:43 PM by Zachary (e-mail)
Michigan State Parks
Today I took advantage of the clear skies and 60 degree temperatures (!) to spend some time in nature: venturing out of Ann Arbor (a rarity for Ross MBA students), I visited two Michigan state parks, Algonic and Lakeport, about 70 and 100 miles northeast of here.

Lakeport is on Lake Huron (the 2nd largest of the Great Lakes) and offered beautiful sunset vistas.

(Yes, that is a lake, not the ocean!)

Algonic is at the top of Lake St. Clair, and offered more forestland than beaches.


Interestingly, it also had public archery and shotgun ranges. I watched a middle-aged couple shoot arrows together. And nothing says "father-son bonding" like clay pidgeons and shotguns.

(Shotgun video, 2.1MB)

Some other interesting sights from rural Michigan:

Posted 8:34 AM by Zachary (e-mail)
Instant Classic
How good was last Saturday's last-second comeback against Michigan State? It's already being run on ESPN Classic:
"Instant Classic: Michigan State Spartans at Michigan Wolverines"

Michigan State fans really need one of these...

Posted 6:02 PM by Zachary (e-mail)
Fall B Schedule Settled
I got into two courses that I was on the waitlist for, so my Fall B schedule is now settled. Intentionally, it is a bit more diverse, a bit lighter on the load, than in Fall A.

ASIANLAN 429 - Business Japanese I (continuing)
MATH 542 - Financial Engineering I (continuing)
FIN 622 - Corporate Financial Engineering - This looks like a very real-world course, focusing on how corporations use swaps, futures, options, asset-backed securities, and credit derivatives to solve financing problems.
FIN 640 - Financial Trading - A light, enjoyable course tought in the Tozzi Center, focusing on the role of market makers. The cool part are the in-class trading simulations that pit classmate versus classmate.
LHC 561 - Management Presentations - Although I am comfortable with, and enjoy, speaking in front of groups, but want to take advantage of the opportunity to improve on those skills.

Posted 4:26 AM by Zachary (e-mail)
Republican Tidal Wave?!?
Where'd this come from?!?

I've stuck with the coverage straight through, and it looks like the headline of the morning papers (or have they already been printed?) is Republican tidal wave continuing to sweep the country. Throw aside the exit polls, the massive wave of new, young voters (oxymoron?), etc., etc. The facts seem to be:

1. President Bush will be the first candidate since 1988 to win a majority of the popular vote (51% to 48%).
2. In fact, President Bush will get the most popular votes of any candidate in US history (previously it was Reagan's 1984 win of 54.4MM votes).
3. The Republican majority in the House will expand by at least 5 seats.
4. The Republican majority in the Senate will expand by at least 2 seats.
5. Republicans keep a majority of the governorships.
6. For the first time in over 40 years, a congressional leader (Senate Minority Leader Daschle) losing.

This may be the sleep deprivation speaking, but I think a few years from now Karl Rove's book about this election will be the must-read political tome. To take a middling economy and a unpopular war and translate it into this!

Update (4:41): To follow the official Ohio count, go to their SOS website.

Posted 10:30 PM by Zachary (e-mail)
Dynamic Election Results
Cool updating map from CSPAN.

Posted 7:42 AM by Zachary (e-mail)
Democracy in Action: Voting in Michigan
Polls opened at 7:00am here in Michigan, so I arrived at Pioneer High School at 6:45am. There were already a good 60 to 70 people already in line; by 7:00, the line stretched down the hall to 150, by my estimates. Having never voted in Michigan before, I can't say whether this was good by Ann Arbor standards, where voter participation is usually much higher than the national average.


The weather here is so-so: very overcast, steady drizzle, a bit cool (low 50s). The rain is expected to end by evening.

In Michigan, voting is by paper ballot; to vote, you fill in a black line between two ends of an arrow pointing to the candidate you want.




This is different from voting in New Jersey*, where they have these 1970-era giant, electromechanical voting booths, where you flip levers and toggles and then pull a big lever to record your vote. Anyway, the whole process was very straightforward and I was out of there by 7:35am; I'm sure it would have gone even faster had I voted mid-morning or mid-afternoon.

For Michigan residents trying to vote, use the Secretary of State's website to find your polling location and sample ballot:
SOSPublius.org

The rest of the day looks crazy: 8:50-10:20, Corporate Financial Engineering. 11:00-13:00, Business Japanese. 14:10-15:40, Management Presentations. 18:10-20:10, midterm in Financial Engineering I. 20:10+ election party at a classmate's apartment.

* Note for international students: in the US, each state government is responsible for running that state's elections, whether those elections are for local, state, or national positions.

Update: 1pm: Rain has stopped, though sky remains cloudy. Temperatures dropping appreciably (gone from cool to cold).

Posted 3:05 AM by Zachary (e-mail)
Happy Halloween!
And it was a scary Halloween indeed...spent the night slogging through Martingales, Laplace Transforms, Markov Chains. This is my reward for getting all gung-ho and registering for the Math department's Financial Engineering I, which has a midterm tomorrow night (yes, election night). I'm having flashbacks from my MIT days...