Friday, April 19, 2013

Efforts to Revive the Economy Lead to Worries of a Bubble - NYTimes.com


Efforts to Revive the Economy Lead to Worries of a Bubble

Are we moving from the crash to the bubble, dispensing with that pesky economic recovery thing altogether?

The Federal Reserve is well into its third round of "quantitative easing," in which it buys longer-term assets to bring down long-term lending rates. We are about five and a half years into the Fed's extraordinary monetary policies (its out-of-the-box lending programs began before the crash, in late 2007).

The effect the central bank hopes to produce hasn't materialized. Despite modest growth, the economy remains a wellspring of misery, with mass unemployment, wage stagnation and factories going unused. In March, a smaller percentage of working-age people were actually working than at any other time since 1979.

Through its unconventional policies, the Fed is trying to ease the crisis. It has succeeded in driving down lending rates. Ben S. Bernanke and company would also like to kindle inflation expectations, spurring people to buy and companies to invest today instead of waiting until tomorrow. Supposedly, all of this will drive a self-sustaining economic recovery.

Instead, the Fed has kindled speculation. Investors are desperate for yield and are paying up for riskier assets. In areas like real estate, structured finance and equities, the markets are ahead of the fundamentals. It doesn't look to me like a bubble yet. But I would call it the Dysplasia Stage, abnormal growth that looks precancerous.

It's not just an economic or financial issue, it's cultural and psychological. We seem to have unlearned what real growth is and simply substituted speculative bubbles. Policy makers are either paralyzed or barrel forward because this is all they know how to do.

Let's first take the stock market. On the standard measures of looking at estimated earnings, the Standard & Poor's 500-stock index isn't particularly high. But that's misleading. Corporate earnings are extremely high as a percentage of the gross domestic product. Margins are high. Is that sustainable?

There are more reliable measures of stock market value, and they look frothy. One gauge, the price of stocks based on the past decade of earnings, is named after the Yale economist Robert J. Shiller. Using that, stocks are too expensive by 65 percent. Alternatively, many investors look at something called the Q, devised by the economist James Tobin, which compares stock prices with corporate net worth. The nonfinancial companies are overpriced by 57 percent. The stock market is not at 1999 or 1929 levels, but it has reached other previous peaks of 1906, 1936 and 1968, according to Smithers & Company, a London-based research shop.

To make stocks correctly priced, "either earnings have to explode heavenward for 10 years or else stock prices have to come in a lot," said Scott Frew, who runs Rockingham Capital Partners, a small hedge fund. He expects earnings to fall.

It's not just stocks. Investors are bidding up junk bonds, commercial mortgage-backed securities and bundles of corporate loans called collateralized loan obligations. Last month, investors were paying more for such loans than at any time in the last five years. They are snapping up billions of dollars in securities made up of subprime auto loans.

And the housing market isn't just rising, but roaring back so fast you can feel the G-force coming off the reports. Home prices in Phoenix went up 23 percent over the last year, according to the latest Standard & Poor's Case-Shiller index. More than one in four homes in Phoenix was purchased by an investor who bought more than five homes, up from 16 percent a year earlier.

"I am now starting to become less skeptical" about the worries over a new housing bubble, said Christopher J. Mayer, a real estate economist at Columbia University. When local money is on the sidelines and outside buyers come in to snap up real estate, that typically ends badly, he added.

So what's going on?

The Fed is engaged in "trickle-down monetary policy," said Daniel Alpert, managing partner of Westwood Capital, an investment bank. "This type of monetary policy is making the wealthy wealthier and hoping that it trickles down to the shop floor."

But "trickle down has never worked," he said. "The wealthy don't need to consume. And when there is oversupply of capacity, the wealthy don't need to invest in new capacity."

Has the Federal Reserve monetary policy reached the average American? To a certain degree, yes. Many Americans have been able to refinance their homes. Those auto loans may be helping people get to and from work.

But the economic effects are modest for the size and scope of the effort. Investors glory in the asset inflation. The most pronounced effect of low mortgage rates has been to allow people with good credit and low debt to refinance multiple times over the last few years. Stock ownership is concentrated among the wealthy; junk bonds and collateralized loan obligations only more so.

Mr. Alpert says the first round of quantitative easing was necessary to ease the liquidity problem in the markets — the unwillingness of investors to conquer their fears and buy up assets. But the third round is "unnecessary," he said.

Others disagree. Dean Baker, an economist from the liberal-leaning Center for Economic and Policy Research who warned about the housing bubble much earlier than most, doesn't see a bubble yet. He advocates continuing quantitative easing.

Mr. Baker adds a note of caution, however. Regulators should move to high alert; Federal Reserve officials should start speaking out to signal that they are paying attention to the abnormalities. Eric S. Rosengren, the president of the Federal Reserve Bank of Boston, gave a recent speech raising areas of concern, only to dismiss them as not overly worrisome yet.

At least he was thinking about the issue. As with cancer, the key is to intervene early.


A version of this article appeared in print on 04/18/2013, on page B9 of the NewYork edition with the headline: Economic Revival Efforts Lead to Worries of a Bubble.

Sunday, March 10, 2013

In a Changing China, New Matchmaking Markets - NYTimes.com

The Price of Marriage in China

FROM her stakeout near the entrance of an H & M store in Joy City, a Beijing shopping mall, Yang Jing seemed lost in thought, twirling a strand of her auburn-tinted hair, tapping her nails on an aquamarine iPhone 4S. But her eyes kept moving. They tracked the clusters of young women zigzagging from Zara to Calvin Klein Jeans. They lingered on a face, a gesture, and then moved on, darting across the atrium, searching.

"This is a good place to hunt," she told me. "I always have good luck here."

For Ms. Yang, Joy City is not so much a consumer mecca as an urban Serengeti that she prowls for potential wives for some of China's richest bachelors. Ms. Yang, 28, is one of China's premier love hunters, a new breed of matchmaker that has proliferated in the country's economic boom. The company she works for, Diamond Love and Marriage, caters to China's nouveaux riches: men, and occasionally women, willing to pay tens and even hundreds of thousands of dollars to outsource the search for their ideal spouse.

In Joy City, Ms. Yang gave instructions to her eight-scout team, one of six squads the company was deploying in three cities for one Shanghai millionaire. This client had provided a list of requirements for his future wife, including her age (22 to 26), skin color ("white as porcelain") and sexual history (yes, a virgin).

"These millionaires are very picky, you know?" Ms. Yang said. "Nobody can ever be perfect enough." Still, the potential reward for Ms. Yang is huge: The love hunter who finds the client's eventual choice will receive a bonus of more than $30,000, around five times the average annual salary in this line of work.

Suddenly, a signal came.

From across the atrium, a co-worker of Ms. Yang caught her eye and nodded at a woman in a blue dress, walking alone. Ms. Yang had shaken off her colleague's suggestions several times that day, but this time she circled behind the woman in question.

"Perfect skin," she whispered. "Elegant face." When the woman walked into H & M, Ms. Yang intercepted her in the sweater aisle. "I'm so sorry to bother you," she said with a honeyed smile. "I'm a love hunter. Are you looking for love?"

Three miles away, in a Beijing park near the Temple of Heaven, a woman named Yu Jia jostled for space under a grove of elms. A widowed 67-year-old pensioner, she was clearing a spot on the ground for a sign she had scrawled for her son. "Seeking Marriage," read the wrinkled sheet of paper, which Ms. Yu held in place with a few fragments of brick and stone. "Male. Single. Born 1972. Height 172 cm. High school education. Job in Beijing."

Ms. Yu is another kind of love hunter: a parent seeking a spouse for an adult child in the so-called marriage markets that have popped up in parks across the city. Long rows of graying men and women sat in front of signs listing their children's qualifications. Hundreds of others trudged by, stopping occasionally to make an inquiry.

Ms. Yu's crude sign had no flourishes: no photograph, no blood type, no zodiac sign, no line about income or assets. Unlike the millionaire's wish list, the sign didn't even specify what sort of wife her son wanted. "We don't have much choice," she explained. "At this point, we can't rule anybody out."

In the four years she has been seeking a wife for her son, Zhao Yong, there have been only a handful of prospects. Even so, when a woman in a green plastic visor paused to scan her sign that day, Ms. Yu put on a bright smile and told of her son's fine character and good looks. The woman asked: "Does he own an apartment in Beijing?" Ms. Yu's smile wilted, and the woman moved on.

The New Matchmaking

Three decades of combustive economic growth have reshaped the landscape of marriage in China. A generation ago, China was one of the world's most equal nations, in both gender and wealth. Most people were poor, and tight controls over housing, employment, travel and family life simplified the search for a suitable match — what the Chinese call mendang hudui, meaning roughly "family doors of equal size."

Like many Chinese who came of age in the 1960s and '70s, Ms. Yu married a man from her factory work unit, with their local Communist Party boss as informal matchmaker. As recently as 1990, researchers found that a vast majority of residents in two of China's largest cities dated just one person before marriage: their prospective spouse.

China's transition to a market economy has swept away many restrictions in people's lives. But of all the new freedoms the Chinese enjoy today — making money, owning a house, choosing a career — there is one that has become an unexpected burden: seeking a spouse. This may be a time of sexual and romantic liberation in China, but the solemn task of finding a husband or wife is proving to be a vexing proposition for rich and poor alike.

"The old family and social networks that people used to rely on for finding a husband or wife have fallen apart," said James Farrer, an American sociologist whose book, "Opening Up," looks at sex, dating and marriage in contemporary China. "There's a huge sense of dislocation in China, and young people don't know where to turn."

The confusion surrounding marriage in China reflects a country in frenzied transition. Sharp inequalities of wealth have created new fault lines in society, while the largest rural-to-urban migration in history has blurred many of the old ones. As many as 300 million rural Chinese have moved to cities in the last three decades. Uprooted and without nearby relatives to help arrange meetings with potential partners, these migrants are often lost in the swell of the big city.

Demographic changes, too, are creating complications. Not only are many more Chinese women postponing marriage to pursue careers, but China's gender gap — 118 boys are born for every 100 girls — has become one of the world's widest, fueled in large part by the government's restrictive one-child policy. By the end of this decade, Chinese researchers estimate, the country will have a surplus of 24 million unmarried men.

Without traditional family or social networks, many men and women have taken their searches online, where thousands of dating and marriage Web sites have sprung up in an industry that analysts predict will soon surpass $300 million annually. These sites cater mainly to China's millions of white-collar workers. But intense competition, along with mistrust of potential mates' online claims, has spurred a growing number of singles — rich and poor — to turn to more hands-on matchmaking services.

China's matchmaking tradition stretches back more than 2,000 years, to the first imperial marriage broker in the late Zhou dynasty. The goal of matchmakers ever since has usually been to pair families of equal stature for the greater social good. Today, however, matchmaking has warped into a commercial free-for-all in which marriage is often viewed as an opportunity to leap up the social ladder or to proclaim one's arrival at the top.

Single men have a hard time making the list if they don't own a house or an apartment, which in cities like Beijing are extremely expensive. And despite the gender imbalance, Chinese women face intense pressure to be married before the age of 28, lest they be rejected and stigmatized as "leftover women."

Dozens of high-end matchmaking services have sprung up in China in the last five years, charging big fees to find and to vet prospective spouses for wealthy clients. Their methods can turn into gaudy spectacle. One firm transported 200 would-be trophy wives to a resort town in southwestern China for the perusal of one powerful magnate. Another organized a caravan of BMWs for rich businessmen to find young wives in Sichuan Province. Diamond Love, among the largest love-hunting services, sponsored a matchmaking event in 2009 where 21 men each paid a $15,000 entrance fee.

Over the last year, I tracked the progress of two matchmaking efforts at the opposite extremes of wealth. Together, they help illuminate the forces reshaping marriage in China.

In one case, Ms. Yu's migrant son reluctantly agreed to allow his aging mother to make the search for his future wife her all-consuming mission. In the other, Ms. Yang's richest client at Diamond Love deployed dozens of love hunters to find the most exquisite fair-skinned beauty in the land, even as he fretted about being conned by a bai jin nu, or gold digger.

Between the two extremes is Ms. Yang herself, whose very success as a love hunter has made her the breadwinner in her own family. Despite her growing discomfort with the sexism that permeates the love-hunting business, she has sympathy for her superrich clients.

"These men are lost souls," she said. "They worked hard, made a lot of money, and left their old world behind. Now they don't have time to find a wife, and they don't know whom to trust. So they come to us."

A Very Particular Client

When I first visited the Beijing office of Diamond Love last year, Ms. Yang was fretting over a love-hunting campaign for a potential client: a divorced 42-year-old property mogul who was prepared to spend the equivalent of more than a half-million dollars.

This wouldn't be the biggest case in company history; two years ago, a man paid $1.5 million for a successful 12-city hunt. But the pressure felt more intense this time. It wasn't just that Ms. Yang would vie with hundreds of other love hunters for a possible winner's bonus of $32,000. Her boss had entrusted her with a central role in this campaign — the firm's biggest of the year — with a client who was known to be an imperious perfectionist. Failure was a real possibility.

Ms. Yang started part-time work as a love hunter while a university student eight years ago. After a brief stint as a hospital nurse, she joined Diamond Love full time and is now its most seasoned Beijing scout. Despite a recent promotion to a consulting job, in which she deals directly with clients and their delicate egos, she is often tapped to lead the highest-stakes campaigns.

Her hit rate is astonishing. In three large-scale campaigns over the last three years, the firm's top clients ended up choosing candidates whom Ms. Yang personally discovered. Her success has earned her huge bonuses — in one case, $27,000 — and a reputation as one of China's most accomplished love hunters.

Still, she told me that this new case was "nearly impossible."

Mr. Big, as I'll call him — he insisted that Diamond Love not reveal his name — is a member of China's fuyidai, the "first-generation rich" who have leapt from poverty to extreme wealth in a single bound, often jettisoning their first wives in the process. Diamond Love's clientele also includes many fuerdai, or "second-generation-rich," men and women in their 20s and 30s whose search is often bankrolled by wealthy parents keen on exerting control over their marital choices as well as the family inheritance.

But fuyidai like Mr. Big are accustomed to being the boss and can be the most uncompromising clients.

Mr. Big had an excruciatingly specific requirement for his second wife. The ideal woman, he said, would look like a younger replica of Zhou Tao, a famous Chinese television host: slim with pure white skin, slightly pointed chin, perfect teeth, double eyelids and long silken hair. To ensure her good character and fortune, he insisted that her wuguan — a feng shui-like reading of the sense organs on the face — show perfect harmony.

"When clients start out, all they want is beauty — how tall, how white, how thin," Ms. Yang said. "Sometimes the person they're looking for doesn't exist in nature. Even if we find her, these clients often have no idea whether that would make their hearts feel settled. It's our job to try to move them from fantasy toward reality."

Fantasy, of course, is precisely what Diamond Love sells. Ms. Yang's boss, Fei Yang, is a smoky-voiced woman in a black leather jacket who used to trade in electronic goods. Inviting me to sit on a bright pink couch in her lushly carpeted office, she explained how the firm has "spread the culture of the relationship" since 2005, when it opened in Shanghai. It now has six branches, with 200 consultants, 200 full-time love hunters and hundreds more part-time scouts, virtually all of them women.

Teacher Fei, as her employees call her, runs a series of "how to be a better wife" workshops that coach women on the finer points of managing a wealthy household, reading their husbands' moods and "understanding the importance of sexual relations." The fee for two, 14-day courses is $16,000.

But Diamond Love's chief target is men, the wealthier the better. The company's four million members are mostly men who pay from a few dollars a month for basic searches to more than $15,000 for access to exclusive databases with customized assistance from a professional love consultant.

The company's wealthiest, highest-paying clients — 90 percent of whom are men — show little interest in lectures or databases. They want exclusive access to what Ms. Fei coolly refers to as "fresh resources": young women who haven't yet been exposed to other suitors online. It's the love hunters' job to find them.

Besides giving clients a vastly expanded pool of marriage prospects, these campaigns offer a sense of security. Rigorous background checks screen out what Ms. Fei calls "gold diggers, liars and people of loose morals." Depending on a campaign's size, Diamond Love charges from $50,000 to more than $1 million. Ms. Fei makes no apologies for the high fees.

"Why shouldn't they pay more to find the perfect wife?" she asked me. "This is the most important investment in their lives."

Even before Mr. Big signed a contract, Ms. Yang sensed trouble brewing. She and a colleague culled the company's exclusive databases to find women to serve as templates for the love hunters' search. Together with Mr. Big, they looked at the files and pictures of their top 3,000 women. He rejected them all.

"Even if the girl's eyebrow was just a half-millimeter too high, he would toss the photo out and say, 'No good!' " Ms. Yang said. "He always found something to complain about."

With more than a half-million dollars on the line, Ms. Yang was beginning to doubt her ability to deliver. And not just for Mr. Big. One afternoon when we met, the normally animated Ms. Yang slumped onto the sofa, exhausted. She had just spent an hour with a rich Chinese businesswoman in her late 30s. The woman proposed spending $100,000 on a campaign to find a husband who matched her status.

"I had to tell her we couldn't take her case," Ms. Yang said. "No wealthy Chinese man would ever marry her. They always want somebody younger, with less power."

We sat in silence a minute before Ms. Yang spoke again. "It's depressing to think about these 'leftover women,' " she said. "Do you have them in America, too?"

A Mother's Search

Yu Jia kept her search a secret at first. She didn't want to risk upsetting her son so soon after a trying time for the family. Ms. Yu and her husband, who was sick with lung cancer, had left the northern city of Harbin in the hope of finding better treatment for his cancer in Beijing, where two of their sons already lived. The husband hung on for a year before he died in 2009 — not long, but long enough to wipe out the last of the family's $25,000 in savings.

Devastated, Ms. Yu stayed in an apartment on the outskirts of Beijing with her sons — one married; the other, Zhao Yong, still single at 36. But one day, Ms. Yu came upon a crowd swarming under the elm trees near the Temple of Heaven.

Her life suddenly had a new purpose. "I decided that I will not go home until I find a wife for my son," she told me. "It's the only thing left unfinished in my life."

Plunging into a crowd of strangers with her sign made Ms. Yu feel awkward at first. Her elder two sons had found wives in traditional ways, one through a matchmaker, the other through a friend. But Mr. Zhao, her youngest, had not. After losing his job in an electronics factory in Harbin, he followed his hometown sweetheart to Beijing. They were in love and planned to marry. But her family demanded a bride price — a sort of dowry used in rural China — of $15,000. His family could not afford it, and the relationship ended.

Mr. Zhao threw himself into his work as a driver and salesman. His former girlfriend married and had a baby. He told his mother he had little time to think about marriage.

The strangers in the park, uprooted from their traditional family and hometown networks, shared similar stories, and Ms. Yu found comfort there. Many other parents, she realized, were even more frantic; they had only one child because of China's policy. (Ms. Yu, as a rural mother, was permitted to have multiple offspring.)

The marriage candidates on offer in the parks, she discovered, were often a mismatch of shengnu ("leftover women") and shengnan ("leftover men"), two groups from opposite ends of the social scale. Shengnan, like her son, are mostly poor rural men left behind as female counterparts marry up in age and social status. The phenomenon is exacerbated by China's warped demographics, as the bubble of excess men starts to reach marrying age.

Finding a Chinese spouse can be even more challenging for so-called leftover women, even if they often have precisely what the shengnan lack: money, education and social and professional standing. One day in the Temple of Heaven park, I met a 70-year-old pensioner from Anhui Province who was seeking a husband for his eldest daughter, a 36-year-old economics professor in Beijing.

"My daughter is an outstanding girl," he said, pulling from his satchel an academic book she had published. "She's been introduced to about 15 men over the past two years, but they all rejected her because her degree is too high."

The failure compelled him to forbid his youngest daughter from going to graduate school. "No man will want you," he told her. That daughter is now married in Anhui, with an infant son whom the pensioner, so busy seeking a spouse for her older sister in Beijing, rarely sees.

Ms. Yu's son, Mr. Zhao, was angry when he found out that she had been searching for a wife for him. He didn't want to rely on anybody else's marketing, especially his mother's. But he has since relented.

"I see how hard she works, so I can't refuse," he told me.

Ms. Yu doesn't tell her son about the parents who scoff when they find out he has no property and no Beijing residency permit. But the handful of young women she's persuaded to meet him never made it to a second date.

One afternoon last summer, however, there was a glimmer of hope. Ms. Yu traded information with a mother who didn't dismiss her son out of hand. The woman's daughter was 35, with a good education, a substantial income and a Beijing residency permit. She was, in some eyes, a leftover woman. Ms. Yu e-mailed Mr. Zhao's picture to her that evening. The daughter declined to meet at first. A week later, she called back: "Yes, maybe."

Ms. Yu was thrilled. It was her first solid lead in months.

High Fees and Secrecy

The second time I dropped by Diamond Love's offices last year, Yang Jing took me by the arm and whispered: "We've had a spy!"

A few days earlier, just as Mr. Big was set to sign the contract and begin paying his $600,000 fee, a woman from a competing agency contacted him. Displaying inside knowledge of his contract with Diamond Love, she offered to carry out an even more comprehensive search. Mr. Big called Diamond Love in a rage that his confidential information had been leaked.

Within hours, according to Ms. Yang, the office's management team ferreted out and dismissed the office mole — a secretary whom the competitor had recruited as a spy. But it took a full week of apologies and vows of enhanced security to coax Mr. Big to finally sign the contract. The terms stipulated that his file would be destroyed, "Mission Impossible"-style, once he had found a wife.

"We always sign confidentiality agreements," Ms. Yang said, "but now we're operating like a secret organization."

The day Mr. Big signed, Ms. Yang took a flight to Chengdu, capital of Sichuan Province, where she would kick-start the campaign. During her 20-day search there, she had recurring nightmares. "I always feel unsettled during a campaign," she said, "but this time, the stress was crazy."

Her team of 10 love hunters scoured university campuses and shopping malls for three weeks, trying to meet a daily quota of 20 high-quality women, or two per person. Ms. Yang offered a bonus, about $16, for every candidate above the quota and set a personal goal of finding 10 "Class A" women a day herself.

Ms. Yang wasn't just haunted by a fear of letting the ideal candidate — and the bonus — slip out of her grasp. The office leak had also made her worry about security. One more false step and Mr. Big would bolt.

One afternoon in Chengdu, after slurping down a bowl of beef noodles at Master Kong's Chef's Table, Ms. Yang noticed a young woman sweeping past her into the restaurant, chatting on a cellphone. Long black hair hid most of the woman's face, but there was something captivating about her laugh and easy gait.

"She seemed open, warm, happy," Ms. Yang said. After a moment of indecision, Ms. Yang followed her inside, apologized for the intrusion and switched on her charm. Linking arms with the woman — one of her patented moves — Ms. Yang came away with her phone number, photograph and a few pertinent details: she was 24, a graduate student and a near-ringer for the TV hostess Zhou Tao.

A Proposal Rejected

One Friday last fall, I met with Yu Jia and her son Zhao Yong at a McDonald's in western Beijing. Now 39, Mr. Zhao has a youthful, unlined face. Still, he worries that time is passing him by. To save money and to enhance his marriage prospects, he works two jobs simultaneously — one selling microwaves, the other cosmetics — crisscrossing the city on his electric bike. He earns about $1,000 a month, and sometimes adds $80 more by working weekends as a film extra.

It is a respectable income, but hardly enough to attract a bride in Beijing.  Even in the countryside, where men's families pay bride prices, inflation is rampant. Ms. Yu's family paid about $3,500 when Mr. Zhao's older brother married 10 years ago in rural Heilongjiang. Today, she said, brides' families ask for $30,000, even $50,000. An apartment, the urban equivalent of the bride price, is even further out of reach. At Mr. Zhao's current income, it would take a decade or two before he could  afford a small Beijing apartment, which he said would start at about $100,000. "I'll be an old man by then," he said with a rueful smile.

Mr. Zhao has met several women on online dating sites, but he lost faith in the Internet when several women lied to him about their marital status and family backgrounds. His mother, however, had come through, arranging a meeting between him and the daughter of the woman she had met in the marriage market.

Not long after our conversation in McDonald's, Mr. Zhao met the woman at a coffee shop. It was, he told me later, even more awkward than most first dates. A rural migrant and door-to-door salesman, he struggled to find a shared topic of interest with the woman, a 35-year-old entrepreneur and Beijing native who had arrived driving a BMW sedan.

The lack of chemistry didn't seem to bother the woman, who told him about her profitable photo business and the three Beijing apartments she owned. Mr. Zhao didn't find her unattractive, but how was he supposed to respond? Then, even before broaching the possibility of a second date, he said, the woman made a proposition: if they married, he wouldn't have to work again.

"She said she made enough money for the two of us," he said. "I could have anything I want."

The marriage proposal stunned him. He had never heard a woman talk in such blunt, pragmatic terms. A life of wealth and leisure sounded tempting. Still, in the end, he couldn't imagine being subordinate to a woman. "If I accepted that situation," he asked me, "what kind of man would I be?"

It took Mr. Zhao several days before he worked up the nerve to tell his mother he had rejected the offer. He knew how hard she had worked, how much she had been counting on this. The news frustrated Ms. Yu. "Kids these days are way too picky," she said.

Even with this setback, Ms. Yu has continued her daily pilgrimage to the marriage markets. When I last spoke to her early this month, she was arranging dates for her son with three new marriage candidates she had found. "I'm optimistic," she said. After all these years, hope is what keeps her going.

Culling the Prospects

The love-hunting campaign for Mr. Big yielded more than 1,100 fresh prospects who met his general specifications, including 200 in Chengdu. "The cruel process of culling," as Ms. Yang called it, whittled that number to 100, then 20, and finally to a list of eight. (For Diamond Love, a fringe benefit of love-hunting campaigns is that the hundreds of rejected potential mates can be cycled into its databases — a process of replenishment paid for by its richest clients.)

The firm subjected the finalists to another round of interviews and psychological evaluations. Barely two months after the search began, Mr. Big received thick dossiers on each of the eight, with detailed information about their families and finances, habits and hobbies, and physical and mental conditions.

Finally, a series of grainy videos landed in his e-mail in-box. The first showed the top three prospects from Chengdu, sitting and standing, walking and talking, smiling and laughing. One of them, a demure 24-year-old with long black hair and black hot pants who seemed poised in front of the camera, was the graduate student whom Ms. Yang had pursued on a hunch at Master Kong Chef's Table.

Ms. Yang's hunting skills and tenacity had paid off again, giving her two of the eight finalists, and a 25 percent chance of winning the bonus of $32,000. (For finding two of the top 20, she had already earned a share of a smaller bonus.) When I asked about the reward, Ms. Yang demurred at first. "My aim is just to find a match that makes both people happy," she said, before adding: "Inside my heart, I want my girls to win."

Ms. Yang has worked hard for the chance. She heads to her job early in the morning and returns after 8 p.m., leaving her 5-year-old son in her mother-in-law's care. She is often gone for weeks at a time on love-hunting trips. Her husband, whom she married at 22, when he was 35, ran a trucking logistics company that folded in 2009. Since then, he hasn't worked much. With one large bonus, Ms. Yang bought him a Mitsubishi car that he tinkers with. Her occupation has given her a rather jaded view of the prospects for career women like herself. Once she told me half-jokingly: "It's a good thing I'm already married. I would never stand a chance."

Mr. Big's Choice

In June, Mr. Big flew to Chengdu for meetings with the three local finalists. Riding an elevator to the lobby of the Shangri-La Hotel, he fidgeted nervously with the part in his moussed hair. He had invested more than a half-million dollars in the search, and was about to see if the money was well spent.

His final date in Chengdu was with the Zhou Tao look-alike whom Ms. Yang had approached at the noodle restaurant. At first, it seemed a mismatch, and not just because of the 18-year age gap. He knew nearly everything about her — her dating history, her recent acceptance to a graduate school, her father's lofty government post — while she knew little more than his height and weight. She didn't even know his name. Diamond Love had told her only that his net worth exceeded $800,000.

The young woman tried to keep things casual by taking him to a local Sichuanese restaurant. But Mr. Big insisted on bringing along a female consultant from Diamond Love and sitting awkwardly off to one side during the meal. According to the consultant, Li Minmin, he sat in this position "to better evaluate her profile, her skin, and her teeth."

The two barely spoke without the consultant's prodding. Still, Mr. Big seemed pleased by the woman's sense of privacy when he inquired about her father's job. "He's a civil servant," she said. What level? "Management." It took several minutes — and a blunt question about his title — before she acknowledged that her father was, in fact, the boss of an influential government office. "From childhood," she told him, "my father taught me to keep a low profile."

Suddenly, this seemed like a suitable match in the Chinese tradition of family doors of equal size. Here were two discreet people of similar social status, a wealthy entrepreneur and the daughter of a high-ranking official.

After dinner, Mr. Big called off all other dates with finalists and dispatched his consultant to buy a Gucci handbag for the woman, as a token of affection. Barely a week later, in early July, he flew her to Hainan Island for a vacation at a luxury beachside resort. The two stayed in separate hotel rooms. When they returned, Ms. Li assured me that "the relationship is still pure."

Ms. Yang was pleased that her love-hunting had hit the mark, but she wished that the courtship would move faster: a $32,000 bonus could make a big difference to her family. After texting and phoning, the couple met again in Beijing and then took a holiday in a mountainous area of western Sichuan Province. In Chengdu, though, he declined to meet the woman's parents, and instead of joining her at a wedding of her friends, stayed in the hotel.

The couple has not yet decided to marry. But they are still dating exclusively, and Ms. Yang says Mr. Big is serious about marriage. Nobody pays a half-million dollars "just to play around," she says. "He just needs a little more time."



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At Florida Condos, Too Young to Retire but Not to Grab a Deal - NYTimes.com

Too Young to Retire, but These Deals Can't Wait

BOCA RATON, Fla. — Susan Shapira, who is 58, recently moved into a condominium in Century Village, a gated retirement community here where most residents are almost as old as the name.

In the nine months she has lived here, she has learned some of the drawbacks of being a baby boomer among the very old.

"I don't see anyone after dark," she said. There is zero night life. The bus is often delayed — walkers slow people getting on and off. And her building's resident representative had been hard to find after going into rehab for a back injury.

But Ms. Shapira says she has no regrets. She bought her two-bedroom condo for cash — $26,900.

"It's like a car," she said.

Sometimes it is like a used car.

Last year a condo here sold for $7,000, according to the real estate industry's Multiple Listing Service. One in Kings Point, a similar retirement community in nearby Delray Beach, sold for $3,000, according to the listings.

The prices in these large retirement communities are not low because the properties have deteriorated since they were built in the 1970s and '80s. In fact, they are mostly well kept.

But they hold little appeal to most baby boomers, who never imagined hanging out in the same sprawling retirement complexes that attracted their parents to come here.

With that World War II generation dying off and the collapse of the Florida real estate market during the recession, condominium prices in many cases are lower than they were when the units were new.

According to Palm Beach County property assessment records, Ms. Shapira's condo originally sold for $40,800 in 1980. In 1990 it resold for $65,000.

And that is not an anomaly. In 2012, the average price of a condo in Century Village of Boca Raton was $35,436. For Kings Point in Delray Beach, it was $24,436.

In 2006, at the height of the real estate boom here, the average Century Village of Boca Raton condo sold for $114,000, according to multiple listings data.

Ms. Shapira, who was recently laid off from her job in the credit card industry, believes that over time she will look smart for having bought early on. "It's a nice standard of living," she said. "That's how I look at it."

She raised her son as a single mother, and this is the first time she has owned a home.

Her annual property taxes are just $632.

For the older generation, the men and women who came of age during the Depression and World War II, these senior communities — populated in large part by middle-class Northeasterners, often Jewish — were the Levittowns of retirement life, with thousands of condos in identical low-rise town houses offering comfortable living at affordable prices.

For a while now, the thinking in the real estate business has been that they were a thing of the past.

If baby boomers did not follow their parents to the Catskills for vacations, it did not seem likely that they would retire to the same places.

But Barry Fogel, who sells real estate in Kings Point, says that business has picked up and that many buyers are older boomers, in their late 50s to mid-60s. "A lot of them are not thrilled about it, to be honest, but they have no choice," Mr. Fogel said. "It's all they can afford."

The vacancy rate among the 7,200 units, he says, is under 2 percent.

And there are signs that as demand picks up, prices will start to climb. In the last few months, sellers in Century Village have raised the average asking price to $50,000, up about $10,000 from last year.

Ben G. Schachter, the president of the on-site real estate company that handles South Florida's six largest 55-and-older communities, said the units were not going to speculators.

"These are being bought by people who expect to live in them," Mr. Schachter said. "They're mostly buying for cash. It relieves them of having a mortgage payment as they get by on Social Security and fixed incomes."

The communities offer a warm-weather routine of golf, shuffleboard, swimming, nightly shows, lectures, pottery classes and exercise groups.

Century Village in Boca has two synagogues, though no churches.

It is one of four Century Villages (the others are in Deerfield Beach, Pembroke Pines and West Palm Beach). Along with Kings Point and Wynmoor Village in Coconut Creek, these retirement communities — the largest in South Florida — help cushion the aging process with bus service to shopping malls and doctors' offices, as well as round-the-clock security.

One night, Ms. Shapira attended an event at the clubhouse, which includes a 1,250-seat theater, and watched as women stood on the dance floor wiggling their wrists back and forth to the music.

"I guess those were the only parts that worked," she said.

She has taken advantage of the clubhouse's fitness center, lifting weights and using a stationary bike.

George Handy, a 58-year-old retired state worker from New York, and his wife, Colleen, 57, a manager of a CVS drugstore, moved in three years ago, liked it and persuaded a friend to buy a unit in a nearby building.

The Handys have made friends with some of their elderly neighbors. When Anne Landau recently fell in her condo at 3 a.m. and could not get up, Mr. Handy went over and helped. And when Mr. Handy's car broke down, Ms. Landau's husband, Stanley, lent him theirs.

Ronny Solomon, 61, is an insurance agent from Toronto. For more than 30 years, his father, Morris, 88, has lived in Century Village in Deerfield Beach — first part time and now full time.

About a year ago, Ronny Solomon asked his father to scout properties, and last spring he bought a two-bedroom, two-bath unit in the same building.

Ronny Solomon is not ready to retire. But a strong Canadian dollar made the deal too good to resist. "You can have a property there and not worry about how you're going to spend your retirement," he said from Toronto.

Mr. Solomon and his wife, Susan, a salon executive, plan to spend "Yom Kippur through Passover" at their Florida condo.

"Eight or 10 years ago, I said I could never live there," he said. "But you see it changing in the people on the sidewalks, on bikes, in the swimming pool — it's in transition."

Howard Goodman reported from Boca Raton, Fla., and Michael Winerip from New York.



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Living With Less. A Lot Less. - NYTimes.com

Living With Less. A Lot Less.

I LIVE in a 420-square-foot studio. I sleep in a bed that folds down from the wall. I have six dress shirts. I have 10 shallow bowls that I use for salads and main dishes. When people come over for dinner, I pull out my extendable dining room table. I don't have a single CD or DVD and I have 10 percent of the books I once did.

I have come a long way from the life I had in the late '90s, when, flush with cash from an Internet start-up sale, I had a giant house crammed with stuff — electronics and cars and appliances and gadgets.

Somehow this stuff ended up running my life, or a lot of it; the things I consumed ended up consuming me. My circumstances are unusual (not everyone gets an Internet windfall before turning 30), but my relationship with material things isn't.

We live in a world of surfeit stuff, of big-box stores and 24-hour online shopping opportunities. Members of every socioeconomic bracket can and do deluge themselves with products.

There isn't any indication that any of these things makes anyone any happier; in fact it seems the reverse may be true.

For me, it took 15 years, a great love and a lot of travel to get rid of all the inessential things I had collected and live a bigger, better, richer life with less.

It started in 1998 in Seattle, when my partner and I sold our Internet consultancy company, Sitewerks, for more money than I thought I'd earn in a lifetime.

To celebrate, I bought a four-story, 3,600-square-foot, turn-of-the-century house in Seattle's happening Capitol Hill neighborhood and, in a frenzy of consumption, bought a brand-new sectional couch (my first ever), a pair of $300 sunglasses, a ton of gadgets, like an Audible.com MobilePlayer (one of the first portable digital music players) and an audiophile-worthy five-disc CD player. And, of course, a black turbocharged Volvo. With a remote starter!

I was working hard for Sitewerks' new parent company, Bowne, and didn't have the time to finish getting everything I needed for my house. So I hired a guy named Seven, who said he had been Courtney Love's assistant, to be my personal shopper. He went to furniture, appliance and electronics stores and took Polaroids of things he thought I might like to fill the house; I'd shuffle through the pictures and proceed on a virtual shopping spree.

My success and the things it bought quickly changed from novel to normal. Soon I was numb to it all. The new Nokia phone didn't excite me or satisfy me. It didn't take long before I started to wonder why my theoretically upgraded life didn't feel any better and why I felt more anxious than before.

My life was unnecessarily complicated. There were lawns to mow, gutters to clear, floors to vacuum, roommates to manage (it seemed nuts to have such a big, empty house), a car to insure, wash, refuel, repair and register and tech to set up and keep working. To top it all off, I had to keep Seven busy. And really, a personal shopper? Who had I become? My house and my things were my new employers for a job I had never applied for.

It got worse. Soon after we sold our company, I moved east to work in Bowne's office in New York, where I rented a 1,900-square-foot SoHo loft that befit my station as a tech entrepreneur. The new pad needed furniture, housewares, electronics, etc. — which took more time and energy to manage.

AND because the place was so big, I felt obliged to get roommates — who required more time, more energy, to manage. I still had the Seattle house, so I found myself worrying about two homes. When I decided to stay in New York, it cost a fortune and took months of cross-country trips — and big headaches — to close on the Seattle house and get rid of the all of the things inside.

I'm lucky, obviously; not everyone gets a windfall from a tech start-up sale. But I'm not the only one whose life is cluttered with excess belongings.

In a study published last year titled "Life at Home in the Twenty-First Century," researchers at U.C.L.A. observed 32 middle-class Los Angeles families and found that all of the mothers' stress hormones spiked during the time they spent dealing with their belongings. Seventy-five percent of the families involved in the study couldn't park their cars in their garages because they were too jammed with things.

Our fondness for stuff affects almost every aspect of our lives. Housing size, for example, has ballooned in the last 60 years. The average size of a new American home in 1950 was 983 square feet; by 2011, the average new home was 2,480 square feet. And those figures don't provide a full picture. In 1950, an average of 3.37 people lived in each American home; in 2011, that number had shrunk to 2.6 people. This means that we take up more than three times the amount of space per capita than we did 60 years ago.

Apparently our supersize homes don't provide space enough for all our possessions, as is evidenced by our country's $22 billion personal storage industry.

What exactly are we storing away in the boxes we cart from place to place? Much of what Americans consume doesn't even find its way into boxes or storage spaces, but winds up in the garbage.

The Natural Resources Defense Council reports, for example, that 40 percent of the food Americans buy finds its way into the trash.

Enormous consumption has global, environmental and social consequences. For at least 335 consecutive months, the average temperature of the globe has exceeded the average for the 20th century. As a recent report for Congress explained, this temperature increase, as well as acidifying oceans, melting glaciers and Arctic Sea ice are "primarily driven by human activity." Many experts believe consumerism and all that it entails — from the extraction of resources to manufacturing to waste disposal — plays a big part in pushing our planet to the brink. And as we saw with Foxconn and the recent Beijing smog scare, many of the affordable products we buy depend on cheap, often exploitive overseas labor and lax environmental regulations.

Does all this endless consumption result in measurably increased happiness?

In a recent study, the Northwestern University psychologist Galen V. Bodenhausen linked consumption with aberrant, antisocial behavior. Professor Bodenhausen found that "Irrespective of personality, in situations that activate a consumer mind-set, people show the same sorts of problematic patterns in well-being, including negative affect and social disengagement." Though American consumer activity has increased substantially since the 1950s, happiness levels have flat-lined.

I DON'T know that the gadgets I was collecting in my loft were part of an aberrant or antisocial behavior plan during the first months I lived in SoHo. But I was just going along, starting some start-ups that never quite started up when I met Olga, an Andorran beauty, and fell hard. My relationship with stuff quickly came apart.

I followed her to Barcelona when her visa expired and we lived in a tiny flat, totally content and in love before we realized that nothing was holding us in Spain. We packed a few clothes, some toiletries and a couple of laptops and hit the road. We lived in Bangkok, Buenos Aires and Toronto with many stops in between.

A compulsive entrepreneur, I worked all the time and started new companies from an office that fit in my solar backpack. I created some do-gooder companies like We Are Happy to Serve You, which makes a reusable, ceramic version of the iconic New York City Anthora coffee cup and TreeHugger.com, an environmental design blog that I later sold to Discovery Communications. My life was full of love and adventure and work I cared about. I felt free and I didn't miss the car and gadgets and house; instead I felt as if I had quit a dead-end job.

The relationship with Olga eventually ended, but my life never looked the same. I live smaller and travel lighter. I have more time and money. Aside from my travel habit — which I try to keep in check by minimizing trips, combining trips and purchasing carbon offsets — I feel better that my carbon footprint is significantly smaller than in my previous supersized life.

Intuitively, we know that the best stuff in life isn't stuff at all, and that relationships, experiences and meaningful work are the staples of a happy life.

I like material things as much as anyone. I studied product design in school. I'm into gadgets, clothing and all kinds of things. But my experiences show that after a certain point, material objects have a tendency to crowd out the emotional needs they are meant to support.

I wouldn't trade a second spent wandering the streets of Bangkok with Olga for anything I've owned. Often, material objects take up mental as well as physical space.

I'm still a serial entrepreneur, and my latest venture is to design thoughtfully constructed small homes that support our lives, not the other way around. Like the 420-square-foot space I live in, the houses I design contain less stuff and make it easier for owners to live within their means and to limit their environmental footprint. My apartment sleeps four people comfortably; I frequently have dinner parties for 12. My space is well-built, affordable and as functional as living spaces twice the size. As the guy who started TreeHugger.com, I sleep better knowing I'm not using more resources than I need. I have less — and enjoy more.

My space is small. My life is big.

Graham Hill is the founder of LifeEdited.com and TreeHugger.com.



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Is There Life After Work? - NYTimes.com

Is There Life After Work?

SANIBEL, Fla.

AT an office party in 2005, one of my colleagues asked my then husband what I did on weekends. She knew me as someone with great intensity and energy. "Does she kayak, go rock climbing and then run a half marathon?" she joked. No, he answered simply, "she sleeps." And that was true. When I wasn't catching up on work, I spent my weekends recharging my batteries for the coming week. Work always came first, before my family, friends and marriage — which ended just a few years later.

In recent weeks I have been following with interest the escalating debate about work-life balance and the varying positions of Facebook's Sheryl Sandberg, Marissa Mayer of Yahoo and the academic Anne-Marie Slaughter, among others. Since I resigned my position as chief financial officer of Lehman Brothers in 2008, amid mounting chaos and a cloud of public humiliation only months before the company went bankrupt, I have had ample time to reflect on the decisions I made in balancing (or failing to balance) my job with the rest of my life. The fact that I call it "the rest of my life" gives you an indication where work stood in the pecking order.

I don't have children, so it might seem that my story lacks relevance to the work-life balance debate. Like everyone, though, I did have relationships — a spouse, friends and family — and none of them got the best version of me. They got what was left over.

I didn't start out with the goal of devoting all of myself to my job. It crept in over time. Each year that went by, slight modifications became the new normal. First I spent a half-hour on Sunday organizing my e-mail, to-do list and calendar to make Monday morning easier. Then I was working a few hours on Sunday, then all day. My boundaries slipped away until work was all that was left.

Inevitably, when I left my job, it devastated me. I couldn't just rally and move on. I did not know how to value who I was versus what I did. What I did was who I was.

I have spent several years now living a different version of my life, where I try to apply my energy to my new husband, Anthony, and the people whom I love and care about. But I can't make up for lost time. Most important, although I now have stepchildren, I missed having a child of my own. I am 47 years old, and Anthony and I have been trying in vitro fertilization for several years. We are still hoping.

Sometimes young women tell me they admire what I've done. As they see it, I worked hard for 20 years and can now spend the next 20 focused on other things. But that is not balance. I do not wish that for anyone. Even at the best times in my career, I was never deluded into thinking I had achieved any sort of rational allocation between my life at work and my life outside.

I have often wondered whether I would have been asked to be C.F.O. if I had not worked the way that I did. Until recently, I thought my singular focus on my career was the most powerful ingredient in my success. But I am beginning to realize that I sold myself short. I was talented, intelligent and energetic. It didn't have to be so extreme. Besides, there were diminishing returns to that kind of labor.

I didn't have to be on my BlackBerry from my first moment in the morning to my last moment at night. I didn't have to eat the majority of my meals at my desk. I didn't have to fly overnight to a meeting in Europe on my birthday. I now believe that I could have made it to a similar place with at least some better version of a personal life. Not without sacrifice — I don't think I could have "had it all" — but with somewhat more harmony.

I have also wondered where I would be today if Lehman Brothers hadn't collapsed. In 2007, I did start to have my doubts about the way I was living my life. Or not really living it. But I felt locked in to my career. I had just been asked to be C.F.O. I had a responsibility. Without the crisis, I may never have been strong enough to step away. Perhaps I needed what felt at the time like some of the worst experiences in my life to come to a place where I could be grateful for the life I had. I had to learn to begin to appreciate what was left.

At the end of the day, that is the best guidance I can give. Whatever valuable advice I have about managing a career, I am only now learning how to manage a life.

Erin Callan is the former chief financial officer of Lehman Brothers.



Sent from my iPad

Living With Less. A Lot Less. - NYTimes.com

Living With Less. A Lot Less.

I LIVE in a 420-square-foot studio. I sleep in a bed that folds down from the wall. I have six dress shirts. I have 10 shallow bowls that I use for salads and main dishes. When people come over for dinner, I pull out my extendable dining room table. I don't have a single CD or DVD and I have 10 percent of the books I once did.

I have come a long way from the life I had in the late '90s, when, flush with cash from an Internet start-up sale, I had a giant house crammed with stuff — electronics and cars and appliances and gadgets.

Somehow this stuff ended up running my life, or a lot of it; the things I consumed ended up consuming me. My circumstances are unusual (not everyone gets an Internet windfall before turning 30), but my relationship with material things isn't.

We live in a world of surfeit stuff, of big-box stores and 24-hour online shopping opportunities. Members of every socioeconomic bracket can and do deluge themselves with products.

There isn't any indication that any of these things makes anyone any happier; in fact it seems the reverse may be true.

For me, it took 15 years, a great love and a lot of travel to get rid of all the inessential things I had collected and live a bigger, better, richer life with less.

It started in 1998 in Seattle, when my partner and I sold our Internet consultancy company, Sitewerks, for more money than I thought I'd earn in a lifetime.

To celebrate, I bought a four-story, 3,600-square-foot, turn-of-the-century house in Seattle's happening Capitol Hill neighborhood and, in a frenzy of consumption, bought a brand-new sectional couch (my first ever), a pair of $300 sunglasses, a ton of gadgets, like an Audible.com MobilePlayer (one of the first portable digital music players) and an audiophile-worthy five-disc CD player. And, of course, a black turbocharged Volvo. With a remote starter!

I was working hard for Sitewerks' new parent company, Bowne, and didn't have the time to finish getting everything I needed for my house. So I hired a guy named Seven, who said he had been Courtney Love's assistant, to be my personal shopper. He went to furniture, appliance and electronics stores and took Polaroids of things he thought I might like to fill the house; I'd shuffle through the pictures and proceed on a virtual shopping spree.

My success and the things it bought quickly changed from novel to normal. Soon I was numb to it all. The new Nokia phone didn't excite me or satisfy me. It didn't take long before I started to wonder why my theoretically upgraded life didn't feel any better and why I felt more anxious than before.

My life was unnecessarily complicated. There were lawns to mow, gutters to clear, floors to vacuum, roommates to manage (it seemed nuts to have such a big, empty house), a car to insure, wash, refuel, repair and register and tech to set up and keep working. To top it all off, I had to keep Seven busy. And really, a personal shopper? Who had I become? My house and my things were my new employers for a job I had never applied for.

It got worse. Soon after we sold our company, I moved east to work in Bowne's office in New York, where I rented a 1,900-square-foot SoHo loft that befit my station as a tech entrepreneur. The new pad needed furniture, housewares, electronics, etc. — which took more time and energy to manage.

AND because the place was so big, I felt obliged to get roommates — who required more time, more energy, to manage. I still had the Seattle house, so I found myself worrying about two homes. When I decided to stay in New York, it cost a fortune and took months of cross-country trips — and big headaches — to close on the Seattle house and get rid of the all of the things inside.

I'm lucky, obviously; not everyone gets a windfall from a tech start-up sale. But I'm not the only one whose life is cluttered with excess belongings.

In a study published last year titled "Life at Home in the Twenty-First Century," researchers at U.C.L.A. observed 32 middle-class Los Angeles families and found that all of the mothers' stress hormones spiked during the time they spent dealing with their belongings. Seventy-five percent of the families involved in the study couldn't park their cars in their garages because they were too jammed with things.

Our fondness for stuff affects almost every aspect of our lives. Housing size, for example, has ballooned in the last 60 years. The average size of a new American home in 1950 was 983 square feet; by 2011, the average new home was 2,480 square feet. And those figures don't provide a full picture. In 1950, an average of 3.37 people lived in each American home; in 2011, that number had shrunk to 2.6 people. This means that we take up more than three times the amount of space per capita than we did 60 years ago.

Apparently our supersize homes don't provide space enough for all our possessions, as is evidenced by our country's $22 billion personal storage industry.

What exactly are we storing away in the boxes we cart from place to place? Much of what Americans consume doesn't even find its way into boxes or storage spaces, but winds up in the garbage.

The Natural Resources Defense Council reports, for example, that 40 percent of the food Americans buy finds its way into the trash.

Enormous consumption has global, environmental and social consequences. For at least 335 consecutive months, the average temperature of the globe has exceeded the average for the 20th century. As a recent report for Congress explained, this temperature increase, as well as acidifying oceans, melting glaciers and Arctic Sea ice are "primarily driven by human activity." Many experts believe consumerism and all that it entails — from the extraction of resources to manufacturing to waste disposal — plays a big part in pushing our planet to the brink. And as we saw with Foxconn and the recent Beijing smog scare, many of the affordable products we buy depend on cheap, often exploitive overseas labor and lax environmental regulations.

Does all this endless consumption result in measurably increased happiness?

In a recent study, the Northwestern University psychologist Galen V. Bodenhausen linked consumption with aberrant, antisocial behavior. Professor Bodenhausen found that "Irrespective of personality, in situations that activate a consumer mind-set, people show the same sorts of problematic patterns in well-being, including negative affect and social disengagement." Though American consumer activity has increased substantially since the 1950s, happiness levels have flat-lined.

I DON'T know that the gadgets I was collecting in my loft were part of an aberrant or antisocial behavior plan during the first months I lived in SoHo. But I was just going along, starting some start-ups that never quite started up when I met Olga, an Andorran beauty, and fell hard. My relationship with stuff quickly came apart.

I followed her to Barcelona when her visa expired and we lived in a tiny flat, totally content and in love before we realized that nothing was holding us in Spain. We packed a few clothes, some toiletries and a couple of laptops and hit the road. We lived in Bangkok, Buenos Aires and Toronto with many stops in between.

A compulsive entrepreneur, I worked all the time and started new companies from an office that fit in my solar backpack. I created some do-gooder companies like We Are Happy to Serve You, which makes a reusable, ceramic version of the iconic New York City Anthora coffee cup and TreeHugger.com, an environmental design blog that I later sold to Discovery Communications. My life was full of love and adventure and work I cared about. I felt free and I didn't miss the car and gadgets and house; instead I felt as if I had quit a dead-end job.

The relationship with Olga eventually ended, but my life never looked the same. I live smaller and travel lighter. I have more time and money. Aside from my travel habit — which I try to keep in check by minimizing trips, combining trips and purchasing carbon offsets — I feel better that my carbon footprint is significantly smaller than in my previous supersized life.

Intuitively, we know that the best stuff in life isn't stuff at all, and that relationships, experiences and meaningful work are the staples of a happy life.

I like material things as much as anyone. I studied product design in school. I'm into gadgets, clothing and all kinds of things. But my experiences show that after a certain point, material objects have a tendency to crowd out the emotional needs they are meant to support.

I wouldn't trade a second spent wandering the streets of Bangkok with Olga for anything I've owned. Often, material objects take up mental as well as physical space.

I'm still a serial entrepreneur, and my latest venture is to design thoughtfully constructed small homes that support our lives, not the other way around. Like the 420-square-foot space I live in, the houses I design contain less stuff and make it easier for owners to live within their means and to limit their environmental footprint. My apartment sleeps four people comfortably; I frequently have dinner parties for 12. My space is well-built, affordable and as functional as living spaces twice the size. As the guy who started TreeHugger.com, I sleep better knowing I'm not using more resources than I need. I have less — and enjoy more.

My space is small. My life is big.

Graham Hill is the founder of LifeEdited.com and TreeHugger.com.



Sent from my iPad

Saturday, January 05, 2013

I was so busy living both sides of the relationship that I didn't realize there was no relationship anymore.

Friday, November 09, 2012

Sent via Readability: The British Virgin Islands’ Box 438: The Best-Connected, Tax-Friendliest Address in the World?

I've shared the following article with you from Readability.

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"The British Virgin Islands' Box 438: The Best-Connected, Tax-Friendliest Address in the World?"

Read more with Readability: http://rdd.me/3jfqbw3t

Box 438. Box 438, Road Town, Tortola, British Virgin Islands. The name conjures a sleepy mail drop. It's actually an office in a stuccoed building in Tortola's banking district where…

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Original URL: http://www.vanityfair.com/online/daily/2012/07/virgin-islands-box-438-taxes


Sent from my iPad

Sunday, November 04, 2012

Retirement Saving Goals for Ages 35, 45 and 55 | TIME.com

What You Should Save By 35, 45, and 55 To Be On Target

Getty Images

Financial rules of thumb are just that. If you follow them, you have the satisfaction of knowing that you've taken action — but they do not guarantee you'll get the results you desire. Still, in the savings game guideposts can be especially useful. A near-term target will help you get started, and that's half the battle.

Fidelity Investments recently put together an age-based savings guideline with a range of savings goals. It's meant to prod individuals into action, which it might—if, that is, the firm's daunting assumptions don't discourage them first.

(MORE: Retirement Saving: What Comes Natural is Worst Approach)

Here are the guideposts:

  • At age 35, you should have saved an amount equal to your annual salary.
  • At age 45, you should have saved three times your annual salary.
  • At 55, you should have five times your salary.
  • When you retire at age 67, you should have eight times your annual pay.

Others have tried to divine a finishing multiple of salary that ensures retirement happiness, and generally they are in line with Fidelity's target. Consultants Aon Hewitt set the goal at 11 times final pay (by age 65).

What Fidelity ads to the discussion are benchmarks to hit along the way. Having near-term targets helps you stay on track—and to take steps to catch up while time is on your side. But there is nothing easy about hitting these targets. Fidelity assumes:

  • You begin saving in a workplace retirement plan, such as a 401(k), at age 25. You save continuously and without interruption until age 67.
  • You start by making an annual salary contribution equal to 6% of pay, and raise the figure by one percentage point each year until you are saving 12% of pay.
  • Your employer matches you at 50 cents on the dollar up to 6% of pay and your portfolio grows 5.5% a year.
  • Social Security is factored in.
  • Your income grows 1.5 percentage points faster than inflation each year.

These assumptions are reasonable in terms of building an illustrative savings model. But consider that almost no one starts saving at 25 and millions suffer some sort of job interruption over a 42-year career. This model also has you saving 12% of pay by age 32. A common rule of thumb is 10% and, again, most folks don't get serious about saving until they are in their 40s and 50s.

(MORE: Smart-Phone Parental Controls are Nothing to LOL About)

Meanwhile, you will need a healthy slug of stocks to earn 5.5% a year. Yet individuals have been net sellers of stock mutual funds for at least half a decade. Whether Social Security will be available when you retire is an open question. And many peoples' wages are going down—not up by more than the rate of inflation.

Of course, it would be a mistake to extrapolate the experience of the crisis years indefinitely into the future. Still, this exercise points up the difficulty of reaching retirement security without an early start, or hyper-aggressive saving at midlife. No matter your age, at least now you can see where you stand–and what to do about it.



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