The rise and fall of Shack, and how to fix it

Wired has a nostalgic piece on the not-quite-late, not-quite-great Radio Shack. I think it’s a good article, but it glosses over part of the reason for the store’s decline.

It blames computers.But blaming computers ignores Tandy’s long and successful run in that industry. Most Apple fanatics and other revisionist historians conveniently overlook this, but when Apple launched the Apple II in 1977, Tandy and Commodore were right there with competing offerings. I don’t know about Apple, but Tandy and Commodore were selling their machines faster than they could make them.

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Barfy.

I started my professional career doing network administration at the University of Missouri. (I generally don’t count my stint selling low-quality PCs at the last surviving national consumer electronics chain towards my professional experience anymore.)

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Saying goodbye to my Lexmark 4039

Today we hauled my trusty Lexmark 4039 off to recycling. Unfortunately its paper handling was shot, and parts and documentation for that model are nearly impossible to find. I found the alleged service manual, but couldn’t make sense enough of the documentation to fix it.

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I didn’t cause the depression

Various analysts are blaming the current depression on people like me. The reasoning goes like this: I have money in the bank, therefore, I should be out spending it, for the greater good, to stir the economy.

Let’s correct that right now.People like me “hoarding” cash didn’t cause this depression. I played by the rules. I didn’t lie on my mortgage application. I bought less house than the bank said I could afford, because I didn’t see how I could make that payment and still buy groceries. I bought a Honda Civic because I didn’t see how I could afford a car that cost $25,000 or $30,000 and I really didn’t see how I could afford to put gas in it. I made this decision when gas cost $1.59 a gallon in Missouri.

Basically, I made a budget and then I made the decision to stick with it. It wasn’t rocket science. Any time I thought about buying something, I sat down with a spreadsheet, entered in all the money I paid out each month, entered what I made, and figured out if the money left over was enough to buy whatever it was I wanted.

We were due for a depression, or at least a recession, at the beginning of the century. The dot-com boom and Y2K was a bonanza, but then two things happened. Y2K came and went, the world didn’t end, and people quit buying survival supplies in large quantities. Meanwhile, these startups failed to come up with viable business plans, continued to spend money faster than the government, and ended up going out of business. This hurt those companies, but it also hurt companies like Cisco and IBM and Intel, because as these companies went bust, their inventory of technology equipment, some of it unused, went on the market at bargain prices. There was no reason to buy a new Cisco router from CDW when you could buy the same thing, still sealed in the package, from a liquidator for half the price.

Then 9/11 happened and it really looked like we’d get our recession. But the government slashed interest rates, changed bank regulations, and encouraged people to buy like there was no tomorrow. GM started offering 0% financing on its cars in order to move them. Soon you could get free financing on anything but a house, and interest rates on houses were ridiculously low. And anyone could get a loan. Republicans loved it because it made the economy go boom-boom again. Democrats loved it because people at any income level could get mortgages.

But the problem was that many of these loans had onerous terms and conditions, and just because you could afford the payments one day didn’t mean you’d be able to afford them in two, three, or five years after some of the back-loaded terms kicked in. Of course, nobody worried about that because they were living the high life.

And then it all fell apart. It wasn’t quite as rapid as it seems. I think people started having problems paying their bills in 2005 or so, but it didn’t quite hit critical mass yet. It hit the smaller banks first. I know because the banks who had my mortgage kept going under, and every year or so, a slightly bigger bank would end up with my mortgage. But those weren’t any match for this monster either. Countrywide got my loan in 2007, but Countrywide wasn’t a dinky little bank. It went under, and when I made my final house payment, that payment went to Bank of America. Now it looks like even the mighty Bank of America might make me look like the kiss of death.

But that wasn’t the only problem. These bad loans got packaged up and re-sold. And somehow, these bad loans got higher grades than they deserved. A guy working as a slicer at Arby’s making $9/hour living in a $150,000 house isn’t a good investment. When everything’s going right, he can afford to make his payments, but the minute something goes wrong, he’s going to start missing payments and might not ever recover. So unless the guy gets a decent job, he’s not going to be able to afford to stay in that house. Yet somehow, a bank could package a bunch of loans like this and spin it as a grade-A investment.

Imagine me going around to my neighbors’ houses on trash day, filling boxes with trash, and selling the boxes, legally able to tell the buyer that the box contains something valuable. That’s great, until someone opens the box and realizes it’s just a box of trash.

No, this depression wasn’t caused by people like me. It was caused by people living beyond their means for too long, and not being able to pay the piper when the time came.

There’s another word for what’s happening right now, besides recession or depression. That word is “correction.” When the economy has been going in one direction for too long, it corrects itself. Sometime in the future, there will be another correction, and the economy will start improving again.

But I read my ultimate proof yesterday. Supposedly, if people like me would just spend their money, things would get better. So why does someone walk into a Jeep dealership with $24,000 in cash, intent on driving home in a new Jeep, and end up driving himself and his still-heavy wallet home in his old car?

And let’s look at people like me one other way. When I nearly lost my job in January, I had almost six months’ worth of income in the bank and a plan in place to be able to live off it for a couple of years, potentially. It wouldn’t have been a comfortable living, but it would have been doable. There would have been no need for me to go collect unemployment. I would not have been a burden on society. And when I retire, I’ll retire with enough money to get me through the rest of my life, with or without Social Security. I won’t be a burden on society either.

People who save their money might not spend it at the most opportune time for everyone else, so they might fail to even the economy out like a capacitor evens out electrical power. But they are never, ever a drag on society.

The Western Electric 500

Another year, another cordless telephone/answering machine.

I bought a cordless phone to replace an aging and failing 2.4 GHz model this week. Our luck with modern phones makes me long for the old days.

western electric rotary phone model 500
The Western Electric model 500 rotary phone is as indestructible and reliable as it is iconic.

I like the old Western Electric 500 (also known simply as “The Bell Phone”) because it was specifically designed not to break.We own three. My wife and I both have a habit of picking them up when we see them cheaply at garage and estate sales. I see at least five a year, but I only buy if it’s cheap. Maybe there’s some book somewhere that says a Model 500 in a common color is worth $20, but I won’t pay that much for one.

They’re annoying to use for dialing, of course, since they’re strictly old-school pulse. But we can use the cordless phone when we need to dial, or the green Southwestern Bell Freedom Phone I bought for my first apartment, which somehow still works after 10 years.

When it comes to just answering the phone and talking on it, they’re just like any other corded phone, except the handset is a bit heavier.

The other annoying thing is that they don’t ring, but tonight I found a cure for that. Opening the phone up and moving one wire usually cures that problem. (Follow the link and scroll to the last section of the page.)

How reliable are they?

Well, tonight I opened up the one I keep in my office to rewire the ringer, and I found it was made in 1957. After 51 years, it’s still going strong.

We have one in the bedroom too. It’s a later model, made by Stromberg Carlson under license, dated September 1978. Although it looks just like a Western Electric, it feels a little bit lighter and less rugged to me. Nevertheless, after 30 years it still works fine.

Those are really good track records, in an age when we tend to think of things as nearly indestructible if they manage to last five years.

And I’ll admit I like the retro look they have about them. Although I’m not old enough to remember the days when it was illegal to plug anything not made by AT&T or a subsidiary into your phone jack, these are the phones pretty much everyone had up until 1984, when the government temporarily broke AT&T up. My parents and grandparents used these phones. And when my house was built in the mid 1960s, it was almost undoubtedly equipped with a 500 too, and I’d be willing to bet that 500 served as its primary phone well into the 1980s.

I wouldn’t want to trade everything in my house for 1949 technology, but just like my old IBM Model M keyboards, I definitely have a thing for those heavy old-fashioned phones.

Dead computer? Check the CPU fan.

My wife came upstairs last night. “The mouse froze,” she said. I walked downstairs to the computer. Sure enough: Frozen mouse, no caps lock light, no vital signs to speak of. Ctrl-Alt-Del didn’t do anything either. I shut down, powered back up, and got the black screen of death.I pulled the power plug and waited a minute, then plugged back in. It powered on, but crashed while Windows tried to boot. So I repeated the sequence and went into the BIOS hoping to find some health status in there.

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Cheap upgrades

Yesterday, during my weekly garage sale adventures, I bought some computer equipment. Among the haul: a Biostar Socket A motherboard with an AMD Sempron 2200+ CPU and 512MB of RAM. It’s not state of the art, but can hold its own against some of the stuff still on the market, and it’s a big upgrade over the 450 MHz Pentium II that’s been powering this web site since July 2002.I swapped the board into my 266 MHz Pentium II. That first-generation P2 was a useful machine for me for a while, but mostly it’s just been taking up space. I had to do some slight modifications to get the newer board to bolt in, but it fit without too much trouble and now some of the 11-year-old hardware is useful again. It reminded me a lot of my college days, when I used to drop 486 and Pentium boards into IBM PC/ATs.

Debian installed on the upgraded system with no complaints, but I quickly found my Linux command line skills are rusty. And there have been enough changes in the last six years that I can’t just copy over /var/www and /var/lib/mysql and expect it to run like it used to.

So I’ll apply my 15 minutes per day principle. My chances of finding a block of 2-3 hours to get it all done are near zero, but I should be able to find a few minutes each day. So one day I can move the databases, then I can move the HTML and PHP another day, convert to WordPress still another day, and maybe, just maybe, have a vastly improved site in about a week if it all goes well.

My hot water heater: 1984-2008

I think my hot water heater died today. I thought my shower seemed colder than usual today, and in the late afternoon my wife reported no hot water in the kitchen.

It could be something simple, but even if it is, it’s time.Let’s consider this. In 1984, Ronald Reagan was president. The Kansas City Royals went to the playoffs. The big name in video games was Atari. People were predicting that video game consoles had no future. The big names in personal computers were (alphabetically) Apple, Commodore, IBM, and Radio Shack. Only one is still in that business. It was the year that Chrysler popularized the minivan. It was the year Apple introduced the Macintosh, popularizing the graphical interface and the mouse. Not only did MTV still play videos, but that was all they played. Not every home had a VCR. For that matter, not every home had a microwave. It cost 20 cents to mail a letter, and on average, a gallon of gas cost $1.21. (I remember it being a lot less than that in Missouri.)

The world that built that hot water heater is a lot different from the world we live in today.

About four years ago, a plumber came out to work on it. It was giving me problems then, but under the conditions of my home warranty, he had to bubblegum it back together. I asked how long it had. He said its realistic life expectancy was about 12 years, so it was about 8 years beyond that. It could last another six months, but it could last years.

So now the question is what to replace it with. The stingy Scottish miser in me sees tankless water heaters claiming to save you $150 a year and really likes that. I went to Lowe’s this evening and tried to buy one. There were several reasons why I don’t own one right now.

First, they don’t keep very many in stock. They had exactly one, even though their website said they had two of two different models. The one they had wasn’t the model I really wanted.

Two, they don’t install them. They’ll sell one to you, but then you have to find someone to install it on your own.

Three, they cost more to install than a conventional tank heater. Sometimes as much as the heater itself.

And then I found a controversial column that did the math, and said that a tankless heater might not actually save you any money anyway. I can’t find fault with his logic.

One thing I noticed is that the tankless heaters that the big-box stores sell are 85% efficient. The tank heaters are 76% efficient. The propaganda for the tankless heaters always assumes lower efficiency than that. As best I can tell, the heater I have is 67%, a little lower than the literature assumes.

So it seems to me that if a tankless heater that’s 18% more efficient than what I have now will save me $100-$150 a year, then a conventional heater that’s 76% efficient ought to save me $50-$75 per year, right?

The tank heaters sell for around $320, and installation is about $260. By the time you pay for taxes and the nickel-and-dime extras, it’s $600-$700.

Half the savings for 1/3 the price sounds pretty good. And I can buy one pretty much anywhere and have it installed tomorrow if I make the purchase before noon.

And it will pay for itself in 8-12 years. A tankless heater would pay for itself in about 13, if all the claims are true. If I make a mistake today, either way I go I’ll be likely to be revisiting it in about 12 years anyway. By then, tankless heaters will be more common and probably cost less than they do now (adjusting for inflation of course).

I’ll call the plumber who bubblegummed my old unit back together in the morning. Depending on what he says about the cost of installing a tankless heater, I’ll make a decision. But at this point, I think I’m leaning towards buying the most energy efficient conventional heater I can find.

No reason for brand wars

On one of the train forums I frequent, a legitimate question quickly degenerated into brand wars. And brand wars are one thing, but when people hold their preferred company to a different standard than the other company–in other words, one company is evil because it does something, but their preferred company does the same thing, it isn’t productive.

Actually, I see very little reason for brand loyalty as it is. I drive a Honda and I use a Compaq computer. Do either of those companies have any loyalty to me? No. To them, I’m just a source of income from yesterday.I don’t like the categorization of companies as "good" and "evil." Companies don’t exist to be good or evil. Companies exist for one reason: Make money. And one thing to remember is that companies will always do exactly what they think they can get away with.

In the case of the toy train wars, the two antagonists are Lionel and MTH. MTH is a scrappy underdog that got its start building trains as a subcontractor for Lionel. A business deal went bad–in short, Lionel left MTH high and dry on a multimillion dollar project, so MTH decided to go on its own and sell the product Lionel decided it didn’t want, but Lionel didn’t like the idea of one of its subcontractors competing with it while also making product for them, and understandably so.

MTH and Lionel have been mortal enemies ever since.

A few years ago, MTH accused Lionel of stealing trade secrets. The specifics are difficult to sort out, but someone with intimate knowledge of some of MTH’s products started designing equivalent products for Lionel. MTH sued and won, to the tune of $40 million. The case is now in appeal.

There’s no question that Lionel benefited from this contractor’s knowledge of the competing product. The question is who knew this was going on, who authorized it, and what an appropriate punishment would be. The only people who are questioning guilt have blinders on. There is no innocence here–just possible degrees of guilt. The other question is appropriateness. Lionel doesn’t have $40 million in the bank. Arguably the company isn’t worth a lot more than $40 million. So that $40 million judgment is essentially the corporate death penalty.

MTH is anything but perfect and holy, however. The thing that bothers me most about MTH is its attempt to patent elements of DCC (Digital Command Control), a method for automating train layouts. It’s an open industry standard, widely used by HO and N scale hobbyists. So MTH was seeking to collect royalties on something that’s supposed to be free for everyone to use. That’s a particular pet peeve of mine, and it’s the reason I haven’t bought any MTH products since 2003.

I came close to relenting this weekend though, when I saw some people bashing MTH while holding Lionel up as some kind of perfect, holy standard. It made me want to go buy a bunch of MTH gear, photograph myself with it, and post it on some forums so I could watch these guys have a stroke about it. Fortunately for them, I have better things to do with $200 right now. I also looked on my layout, and I don’t know where I could put the things I would have considered buying.

I’m more familiar with the computer industry than I am with anything else, and if you mention any computer company, I can probably think of something they did that would fit most people’s definition of evil. HP? Print cartridges that lie about being empty. Lexmark? Same thing, plus using the DMCA to keep you from refilling them. Dell? Nonstandard pinouts on power supplies that look standard, but blow up your motherboard if you try to use non-Dell equipment. IBM? Microchannel. Microsoft? Don’t get me started. Apple? Lying in ads.

As far as I’m concerned though, the most evil company of all is Disney. Disney, of all people? Yes. Disney is the main reason for the many complicated rewrites of copyright law that we’ve had in recent decades. Whenever something Disney values might fall into the public domain, Disney buys enough congressmen to get the laws changed. Never mind that early in its history, Disney exploited the public domain for its gain as much as anyone (which was its legal right), even to the point of waiting for The Jungle Book to fall into the public domain before making the movie, in order to avoid paying royalties to Rudyard Kipling. The problem is that now that Disney is the biggest kid on the block, it’s changing the rules it used to get there, so that nobody else can do it.

Unfortunately I’ve even seen not-for-profit corporations, companies that exist mostly to give away money, do dishonest things and essentially steal. If a charity can and will do these things, you can be certain that a for-profit corporation will.

So I don’t see any reason for brand loyalty, aside from liking a product. If you buy a company’s products and you like them, fine. Keep buying them. But that doesn’t make the people who prefer a competitor’s product evil. They didn’t sign off on the decisions, and your favorite company has done its own share of underhanded things too, whether you know it or not.

And there’s certainly no reason to go to war for your company of choice. It wouldn’t do the same for you.

When to call it quits and get a new(er) computer

Mom’s computer is fading fast. I built it in 2002 or so, but I used stuff from her old computer, including the operating system, which dated to more like 1998.

I’m tired of fixing it. There was a time that I might have enjoyed it, but she needs something reliable, and I don’t have that kind of time anymore. Windows 98 was anything but rock solid when it was new, and this is a 10-year-old build. And do I know for certain that all the hardware is perfect?

It’s cheaper and easier to just start over.I didn’t find any earth-shattering deals at Compgeeks.com, although I did find some stuff that would have been usable. I wandered over to Craigslist and found the usual myriad of people selling their old home PCs. I decided to just do a search for something I knew would work. My wife and I have had a Compaq Evo 510 for about two months now and everything about it impresses me. So I went looking for another one.

I found one. It’s a 2 GHz P4 with 256 MB RAM (I quickly upgraded it to 512) and a CD burner. It even had a fresh install of Windows XP Pro on it, and a certificate of authenticity so it’s legal. I paid less for it than I charged the last time I had to fix someone’s computer. Actually, I paid less for it than a copy of XP Pro sells for. So it really was like getting the hardware for free.

XP isn’t perfect but it’s a lot more stable and reliable than Windows 98 ever was or will be. While this hardware isn’t new, it’s newer than what Mom has, and it’s built with quality components. It’s a business-class machine, and in my experience, business-grade hardware isn’t flashy but it’s very reliable. As long as you feed clean electricity into it, the only thing that’s likely to go wrong is a hard drive crash, and those can happen no matter what you buy.

There is a ton of former office equipment on the market now that’s perfectly usable, replaced only because corporate policy mandates that computers get replaced every three or four years. As long as the hard drive gets replaced, or at the very least reformatted and Windows is freshly reinstalled, these PCs will make very good home computers for a very long time.

They make terrible gaming rigs, although with a better video card you can do some light gaming with them (my Evo 510 runs Railroad Tycoon 3 and Baseball Mogul 2008 just fine).
For word processing, e-mail, and web browsing, they’re all you need.

I put a better video card in it anyway, to free up the memory that the onboard video was using. I put in a $10 Nvidia TNT2 card in it that came out of an old IBM. I got it off Craigslist too.

If anything, I’m more comfortable with Mom having something like this than I would be with her buying a new Compaq Presario or HP Pavilion because it’s made with better components.

If you have an aging Windows 98 computer, this is a good time to upgrade to something a little bit newer. You should be able to get a former business computer with a 2 GHz Pentium 4 running Windows XP for less than $200. It will be money well spent, in any case.

Mom will be happier because she’ll have a much faster and more reliable computer. I’ll be happier because if I play my cards right, I’ll never see Windows 98 again.