hopmeadow18frombehindgreen.jpg 

The second shot at the par 5 18th at Hop Meadow must steer clear of a stream down the left hand side and, for the approach, a pond in front. 

 

    My friend Bill and I played golf today at Hop Meadow Country Club in Simsbury, CT.  The course was in great condition, it was a beautiful bracing fall New England day, and we managed to avoid throwing too many verbal punches at each other about Presidential politics (he's for one candidate, I am for the other).  I am on a leave of absence from the club, where I have been a member for more than 20 years and have until February to decide whether to return.  In recent years, with summer travel and other commitments, my family and I had not gotten enough use out of the club to justify the expense of dues and a modest assessment for clubhouse renovations a few years ago.
    It is going to be a tough decision, although with the stock market and nation's financial system in crisis

Why not a course where the 12th hole comes back to the clubhouse?

mode, I think the decision may be made for me.  Golf is a discretionary expense, and as we head for what many expect will be a deep recession, all discretionary spending is in suspended mode, save for the occasional dinner out.
    Like me, Bill is a leading edge baby boomer bemoaning the fact that he has lost a few miles per hour on his clubhead speed (I know the feeling).  In the course of conversation, he told me a dozen of his fellow club members had traveled to Ireland for a week of golf this summer.  "They played 36 holes a day," he said, with some amazement.  "I couldn't do that."  I agreed, having struggled through some 18-hole days in Scotland this June on courses where pull carts were the only means of conveyance available.
    Bill, who along with his wife Janet recently bought a second home in The Landings near Savannah (six golf courses on property), wants to keep walking the golf courses he plays as he ages but is mindful that 18 holes may become a bit of a struggle at some point. "If I were developing a golf course," he mused out loud, "I'd hire Nicklaus or Dye to put in just 12 holes."
    We discussed it a little more and came to the conclusion that, for convention's sake, an 18-hole course made more sense but with the 6th and 12th holes coming back to the clubhouse.  In that way, the super seniors could walk six holes and either quit for the day or take a cart for the rest.  Others could walk the 12 holes or, if they were feeling especially spunky, walk all 18.
    On a golf course on a beautiful New England day, many things seem possible.

    As I write this, the Dow Jones Industrials average is rolling off the cliff, down 500 points in the first hour of trading.  That $700 billion investment cum bailout sure seems to have bolstered confidence in the stock market, hasn't it?
    Like most Americans, I do not presume to understand the intricacies of
Our parents taught us never to borrow beyond our means.  Is everyone on Wall Street an orphan?

banking and the financial system.  That, of course, is part of the problem; when you don't have the knowledge to understand what the heck is going on, you defer to others who don't know what is going on.  Yes, Freddie and Fannie were encouraged, maybe even pushed, into backing crappy home loans, but the geniuses on Wall Street were not forced to buy them; and they certainly weren't forced to engage in what appears to be criminal behavior by selling "insurance" on the bundles of crappy loans in the guise of something called a "credit default swap."  In other words, they sold bad paper and insured the bad paper with other paper.  There were only two things wrong with this:  First, they didn't have the financial reserves to cover their bad bets and, second, they skirted insurance regulations by calling insurance something it wasn't.  Their customers bought it hook, line and, especially, sinker.  
    The nuances of credit default swaps, derivatives and hedge funds are way beyond the ability of many Harvard graduates to understand, let alone Joe Bag of Donuts or the lesser minds in Washington.  But all of us can figure out that you should never buy something you cannot afford.  Somehow, this lesson was lost on everyone from first-time home buyers to the guys who ran Lehman Brothers, AIG and Merrill Lynch who bet their companies' ranches on toxic bundles of paper.
    Assuming our financial system, which is changed forever, returns to some sort of equilibrium and the banks begin to lend money again for home purchases, the new rules of the road had better be simple enough for all of us to understand.  When my wife and I purchased our first home three decades ago, our income had to be a minimum of 28% of the amount we intended to borrow, and the down payment a minimum 20% of the home price.  The rules were strict, and they were in place to protect the bank as much as they were to protect us.  We didn't whine about the size of the house we could afford.  Our parents had taught us never to do anything beyond our means.  Did these people on Wall Street all come out of orphanages?
    The Wall Street Journal published an interesting editorial today written by an Australian journalist.  It is entitled "Not Everyone Should Own a Home."  If you can't access it from the Journal's web site, let me know and I will email it to you (use the Contact Us button at the top of the page).  The view from Down Under, where the banking system is relatively stable, is compelling now that our own system is down under.