Starting in 1969, Milken’s central investment thesis has been that many AAA rated bonds would have a higher default rate than single B industrials. As an example, he would cite that AA rated railroads defaulted at a higher rate than B rated industrials from 1900 to 1970.
His at-the-time radical investment theories essentially created the $600 billion junk bond market that we have today. This innovative financing helped spawn new companies and develop entire industries, like Kindercare, the first chain of day care centers, MCI, the first low cost telecommunications carrier, and Turner Broadcasting (CNN).
In light of the current turmoil in the AAA-rated credit markets, Mike’s theories look particularly prescient. Despite all the hysteria and hand wringing in bondland, the rating agency Moody’s has announced that there have only been 17 announced defaults this year, compared with 26 for the year 2006.
During his speech, I learned for the first time why Mike Milken started out as a math/science major at the University of California at Berkeley and then switched to study business. Surprisingly, it was due to the civil rights movement.
Recent events have illuminated another possibility closer to home. Women are often their own worst enemies. This phenomenon is not unique to Israel. I saw it in Washington first. During the first Clinton years, I had the privilege of working with the first White House Office of Women. I envisioned that I would be a pink caped crusader for women’s rights; instead my function was to separate women from their money for campaign donations.
When the intern scandal erupted into the headlines, I departed because I could not understand how any self respecting women could continue to support Bill Clinton. I was obviously wrong because the National Organization of Women (NOW) and its long time president Patricia Ireland stayed in his corner. NOW refused to exploit this perfect opportunity to get on the soapbox and speak out against sexual harassment. When I finally confronted Ms. Ireland, she sheepishly admitted that they had stayed silent to protect a women’s right to abortion.
Of course abortion rights are important. But women cannot continue to prisoners of their uterus. Sexual harassment and rape have always been the neglected stepsisters of the feminist’s movement. No one, not even the president of NOW, wants to deal with this emotionally charged issue.
It is a shame that so much attention has been paid to abortion, because the right to have an abortion only affects a small minority of women, while the vast majority of women have either been raped or sexually harassed on the job. A woman is raped every two seconds in the United States. Women will only achieve real equality when they have physical safety and economic freedom.
A joint Ministries of Finance and National Infrastructures delegation attended a World Trade Organization conference on infrastructures last week to interest investors in the Negev solar power plant and other infrastructure project. The delegation departed even before the government has published a tender for the solar power plant. The delegation also presented the Dan Region Sewage Reclamation Project (Shafdan) project, the Krayot bypass road and lateral Road 531.
The Negev solar energy plant attracted the most attention. The government recently approved plans for a BOT tender for the 250-megawatt power station, which will cost $600-700 million. When completed, it will be one of the largest solar power plants in the world.
Published by Globes [online], Israel business news - www.globes-online.com - on December 20, 2007
The parties obtained an approval for a one million US dollars grant from the BIRD foundation, which constitute half of the initial budget allocated to the project. The project is expected to last three years.
The Evogene and Orfuel joint project is aimed at providing substantially improved feedstock sources for biodiesel production. The companies collaborate to develop non edible plants, displaying improved oil yield and capable of being grown in non arable lands, thus addressing key problems facing the industry.
Shares in Rehovot-based Evogene rose 0.2% today to NIS 4.53, reflecting a market cap of NIS 88.8 million.
Published by Globes [online], Israel business news - www.globes-online.com - on December 20, 2007