LM, Episode 192, 5/25/25, Arbitrage
I’m sorry about yesterday’s, “Oh, who am I kidding, nothing matters.” I’m handling this disruption surprisingly well, I just thought it would be funny to say it and when I told Twyla, she laughed, which is the good housekeeping seal of approval, I have to do it.
Today is Memorial Day. Many places claim to be the birthplace of Memorial Day, including Murphysboro, IL In 1868, John A. Logan, a general during the Civil War wanted to remember the sacrifices of those who fought. We lived in Murphysboro, IL for two years while I worked at the hospital.
They were going to borrow money to renovate the four hospitals in this group of Catholic hospitals. We’re meeting and the CEO of the group says, instead of borrowing $5,million, we’re going to borrow $10, million and put the extra $5, million in the stock market because we can make more than the interest we have to pay.
I go, “Why don’t we take it to Harrah’s, at least we’d get free drinks while we lost the money.”
He says,”Kent, it’s called arbitrage.”
I go, “I took a finance class, I know what it’s called, just because there’s a term for it doesn’t mean it isn’t a stupid idea.”
So I’m talking to the lady at the unemployment office.
I was without a job for two months and the uncertainty I felt every morning when I woke up during that time is much like what I experience today, but today I have the hindsight to know that my life was better after that experience and I believe I will have the same experience following this.
Unfortunately, I can’t say the same for the Murphysboro hospital. A few years later it closed, overburdened by the debt.