Friday, November 20, 2009

Lehigh Pub in Bethlehem, Pa.--Couple arrested for not paying tip


I knew the folks in Pennsylvania leaned to the socialist side, but this seems to be way too far across the pond. I would expect this in Europe, but in America? A couple spent over an hour waiting for the food, had to get their own napkins and silverware, paid for the food, but did not leave a tip. They were arrested. Why? They had a party of six and the “gratuity” was included. Now, most of us do not have an issue paying a gratuity especially for “large” groups. However, what is implicit is the duty of the establishment to provide a base of service commiserate with the standard service of the restaurant. A “gratuity” is just that, a bonus for a job well done. Regardless of a pre-calculated convenience for both the patron and the establishment, if not earned, the tip should not be paid. Now I know that there are cheap skates in the world, and someone will always try to take advantage of the situation. However, most people are honest hard working individuals that like to see other hard working individuals get ahead. Waiting tables is tough, but that is also why it can be rewarding to those who do an exceptional job. My niece waits tables through school, because she can make more there than sitting behind the desk. The hours are long, and she is tired when she is done, but she is also doing well because she takes care of her customers. Why do we think that there cannot be consequences for our actions? In this case the establishment was busy. Good for them. They did not serve this particular group of customers well at all. Shame on them, and the consequence should be that there is no tip (which is above and beyond the actual cost of the meal).
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It is interesting that it was the couple that was arrested rather than the owner for wasting police time. While the amount may have been printed on the bill, it was not part of the meal. The only good news is the article named the restaurant. I think that is one I will avoid in the future.

Friday, November 13, 2009

Attention Blue-light Shoppers


There’s no way we are ever going to make money at this”.. The two men charged with insider trading at Bear Stearns we acquitted due to lack of evidence. It is interesting that the most honest quote of the entire sub-prime fiasco was contained in a short email that did not provide sufficient evidence that these two men were trying to manipulate the market. They weren’t, and they couldn’t. What the hedge fund was trying to do was contain the damage and keep the bank afloat from the really poor decisions of those who had determined to get into the sub-prime business in the first place. We can’t blame the executives really. They are measured on how much money they generate for the bank, and in the short run sub-prime loans generated a lot of money. They got creative, they sharpened their pencils, to make a silk purse from a sow’s ear. But no matter how you polish it, when you start with droppings all you end up with are shiny droppings. Myth busters proved that you can get a shiny dung dropping with enough work. Scary. I digress. Back to sub-prime loans. The whole industry was desperate, the housing market could not sustain the growth and they needed additional revenue to continue, so they banks who had lent developers significant sums of money, decided to protect that bad investment with more of the same, by allowing people to gain access to overpriced homes and finding creative ways to get around the credit requirements. Very cool. I myself benefited from this creativity, and I am also currently paying the price for not paying enough attention to what I was doing. Heck at the time everyone was doing it, and we were all convinced that as long as things continued we would all be fine. That is a true statement. We would all be fine as long as things continued to rise. However, like our government we all made the simple mistake of not thinking, and just hoping for the best. Everyone regardless of education, intelligence, or savvy can be taken in based on information that seems right, but only under even minor scrutiny falls apart. We all trusted, but we did not verify. These two men were at the tail end of a long line of bad decisions, and rather than look to things like banking policy, the Federal Reserve and their heavy handed tactics, as well as the change in capitalization requirements, we looked to the hedge funds. Now these really need to be examined, but not by our government (we already know they wouldn’t recognize a hedge if they had to mow it), but by the stock holders of the banks, and through civil courts. The minority stockholders need to become more vocal and assertive in their right to obtain information and ensure integrity of the company. No company is too big to fail, and thus those that use hedge funds as a way to hide fraudulent activities should be banned from all securities transactions until corrected. Unfortunately, these much like the Anderson debacle, our judicial system failed to obtain correct information and understanding of the case and the ramifications of their actions. These two men were a link to the right target, but should not have been the targets.