February 28, 2006

Peak Oil?

Robert Hirsch:
Peak oil is real, but there are strategies available to mitigate its effect, IF we start in time. Dr. Hirsch is the Senior Energy Program Advisor for SAIC and past chairman of the Board on Energy and Environmental Systems at the National Academies.
Posted by James Zellmer at 7:32 PM

Do Americans Support a Gas Tax?

Barry Ritholtz:
"A significant number would go along with an increase if it reduced global warming or made the United States less dependent on foreign oil, according to the latest New York Times/CBS News poll.

The nationwide telephone poll, conducted Wednesday through Sunday, suggested that a gasoline tax increase that brought measurable results would be acceptable to a majority of Americans.

Neither the Bush administration nor Democratic Party leaders make that distinction. Both are opposed to increasing the gasoline tax as a means of discouraging consumption, although President Bush, in recent speeches, has called for the development of alternative energy to reduce dependence on foreign oil."
Posted by James Zellmer at 7:04 AM

February 26, 2006

DSG: Death of the Stick Shift?

Robert Farago:
OK rivet counters: Audi didn’t invent the double clutch. Citroen offered something similar over 70 years ago, and Porsche’s formidable 962 racer also gave it a go. But Audi has just about perfected the DSG. (The only drawbacks are a certain sluggishness when gently tipping-in and a slight hesitation when paddling down more than one gear, as the DSG shuffles through the intervening ratios.) Even with its quirks, the DSG rules-- to the point where the clutch pedal and traditional manual gearbox is a mechanical redundancy, a dead device shifting. In fact, any car manufacturer who doesn’t have a DSG or something similar installed in their performance-oriented products will soon be at a tremendous disadvantage.
Posted by James Zellmer at 1:32 PM

Requiem for Don Knotts

donknottsrip.jpg
Scott Collins:
Knotts first rose to prominence in the late 1950s, joining Louis Nye and other comedy players on "The Steve Allen Show." In 1961, United Artists Records released a comedy album titled "Don Knotts: An Evening with Me," which featured various takeoffs on the "nervous man" routine the comic had made famous on Allen's show. One of the bits, "The Weatherman," concerned a TV forecaster forced to wing it after the meteorology report fails to make it to the studio by air time.

During the mid- to late 1960s, in a largely unsuccessful bid for major film stardom, Knotts made a series of family films that many connoisseurs now say were critically underappreciated at the time. These include "The Incredible Mr. Limpet" (1964), "The Ghost and Mr. Chicken" (1966) and "The Reluctant Astronaut" (1967). The latter two were made as part of a five-picture deal with Universal Pictures.
Much more on Don Knotts.
Posted by James Zellmer at 1:21 PM

February 25, 2006

The Birth of the Toyota Prius

Alex Taylor III:

New York (FORTUNE Magazine) � In late 1995, six months after Toyota decided to move forward with its revolutionary hybrid, the Prius, and two years before the car was supposed to go into production in Japan, the engineers working on the project had a problem. A big problem.

The first prototypes wouldn't start. "On the computer the hybrid power system worked very well," says Satoshi Ogiso, the team's chief power train engineer. "But simulation is different from seeing if the actual part can work." It took Ogiso and his team more than a month to fix the software and electrical problems that kept the Prius stationary. Then, when they finally got it started, the car motored only a few hundred yards down the test track before coming to a stop.

It's hard to imagine Toyota (Research), with its aura of invincibility, running into such trouble. But the story of how it brought the Prius to market -- a tale of technological potholes, impossible demands, and multiple miscalculations -- reveals how a great company can overcome huge obstacles to make the improbable seem inevitable. The gas-electric auto represents only a tiny fraction of the nine million cars and trucks the Japanese company will produce this year. But it is the first vehicle to provide a serious alternative to the internal combustion engine since the Stanley Steamer ran out of steam in 1924. It has become an automotive landmark: a car for the future, designed for a world of scarce oil and surplus greenhouse gases.

Posted by James Zellmer at 11:44 AM

February 24, 2006

Tauke but no Action on Network Neutrality

David Isenberg:
The principle seems to be, "If it helps the Bells, leave it in. If it hurts them, take it out."
Posted by James Zellmer at 8:56 AM

Plus Shipping and Handling......, Making Money on eBay

Alex Tabarrok:

Would you rather pay $10 and have free shipping or pay $5 and pay $6 for shipping?  Answer: you prefer the latter.  Well, at least if you are like most bidders on eBay. 

Morgan and co-author Tanjim Hossain, an assistant professor at Hong Kong University of Science and Technology, held 80 auctions of new music CDs and Xbox video games to test how consumers respond to different price schemes. In the eBay study, they varied the opening bid price and shipping charges on identical CDs, ranging from Britney Spears to Nirvana, and video games, including Halo and NBA 2K2.

...A perfectly informed and fully rational consumer will merely add together the two parts of a price to obtain the total out-of-pocket price for an item and then decide whether to buy and how much to bid based on this total price.

But that’s not what happened in their eBay auctions. Instead, they found that lowering the opening bid price while raising shipping charges attracts earlier and more bidders and ultimately leads to higher revenues compared with doing the reverse. Those findings suggest consumers pay less attention or even completely overlook shipping costs when making bids...

The quote is from a writeup, the full paper is ...Plus Shipping and Handling: Revenue (Non) Equivalence in Field Experiments on eBay (subs required).

Also check out the interesting data on online pricing at Nash-equilibrium.com.

Posted by James Zellmer at 8:42 AM

February 23, 2006

More on General Motors

Robert Farago takes a look at GM's supplier situation in his latest "Deathwatch" editorial:
A couple of days ago, I was talking to an auto industry analyst about the world’s largest automaker. We were discussing the cracks in GM’s hull, trying to figure out which of The General's compartments were already breached, which are filling with water and which remain viable. A wistful tone in the analyst’s voice indicated head-shaking dismay. “I’m no longer hearing anything positive about GM,” he revealed. “The conversations range from how bad it is, to how bad it’s going to get.” I didn’t want to sound like a paranoid fantasist to a new source, so I tried not to out-pessimist the doomsayers. But it wasn’t easy.
GM operates a large SUV assembly plant in nearby Janesville, WI
Posted by James Zellmer at 10:10 PM

Popup Stores

Influxinsights:
Much has been written about pop-up stores and they are usually placed in the context of being something of a fad or fashion in retail. However, even if it is hidden, there is a powerful idea behind most of these initiatives and that's to provide "brand refreshment" and "brand excitement".

The temporary and unique nature of these stores gives people a reason to visit and take note. Influx believes the idea inherent in the pop-up is one of temporary surprise (great in an A.D.D. world) and that can be very impactful as a communication tool, especially as it's a three-dimensional experience.
Posted by James Zellmer at 5:20 PM

February 22, 2006

An Interview with Errol Morris

Megan Cunningham interviews UW Grad and noted film and advertising impresario Errol Morris [pdf]:
Within the entertainment industry, Errol Morris holds a chameleon position. To the commercial production world, he’s established as a highly successful director, both innovative and intelligent. (He’s one of the only, if not the only, director of TV commercials who has written an opinion-page article published in The New York Times.) Within talent and advertising agencies, he is known for his exceptional off-kilter vision, and honored in ways usually reserved for noncommercial artists. (In November 1999, his work received a full retrospective at the Museum of Modern Art. In 2002, the organizers of the Academy Awards asked him to direct the short film that introduced the annual Oscars ceremony; it featured a series of real-life characters—some well-known, some everyday citizens—describing their passion for movies.) In a 2004 Adweek article honoring Morris’s contributions as someone who “rises above the fray to create work that resonates and inspires,”
Errol Morris
Posted by James Zellmer at 10:51 AM

Local Primary & The Tunnel

Dane101:
Wow, what a disturbingly sad turnout. This is what democracy looks like?
Meanwhile, I watched "The Tunnel" last night, which is must see for anyone living in a free society. Well done, with a few Hollywood additions apparently.
Posted by James Zellmer at 9:31 AM

February 21, 2006

BMW's Turbo Steam Fuel Saving Concept

Deutsche Presse-Agentur:
MW engineers are working on a steam-powered auxiliary drive system that reduces fuel consumption by up to 15 per cent and boosts performance at the same time, the car maker said.

The 'Turbosteamer' concept applied to a 1.8 litre, four-cylinder petrol engine recycles the waste heat in the exhaust gases and cooling system.

In tests, the Turbosteamer produced 13 additional hp in performance with 80 per cent of the energy in the exhaust gases recycled, according to the manufacturer.
Posted by James Zellmer at 10:18 PM

February 20, 2006

Milwaukee Ranked #7 in Overextended Sports Markets

The Business Journal:
The study by American City Business Journals, parent of the The Business Journal Serving Greater Milwaukee, looked at 179 U.S. markets and analyzed the amount of personal income each region generates, among other factors, to measure the region's adequacy for its current professional teams and any possible new ones in baseball, football, basketball, hockey and soccer.

Milwaukee's total personal income of $75.7 billion, according to the report, is insufficient to support the addition of any more professional teams.
Posted by James Zellmer at 10:20 PM

Political Observations From Michael Powell

via David Isenberg:
The Washington DC political process is more broken now than at any other time I've seen in my life. It has collapsed in on itself. I went home and asked my father [Colin Powell] if I was missing something, and he agreed with me that the process has collapsed into pure partisanship. The power of the incumbency has grown. People are not concerned with what's right or what's in the nations interest, they are purely interested in killing their opponents.
Posted by James Zellmer at 10:16 PM

Powerbook Tattoos

Too Funny.... Laser Powerbook Tattoos. via Virginia Postrel
Posted by James Zellmer at 9:51 PM

Wisconsin VC Investment

Eprairie:
Wisconsin's Venture Capital investments increased from $38M in 2003 to 68M in 2005, roughly 1/4 that of Minnesota and Illinois.
Posted by James Zellmer at 9:41 PM

February 19, 2006

DRM Based Trusted Computing - Why We Should Care...

Slashdot:
"We've always know that Trusted Computing is really about DRM, but computer makers always denied it. Now that their Trusted Computing chips are standard on most new PCs, they've decided to come clean. According to Information Week, Lenovo has demonstrated a Thinkpad with built-in Microsoft and Adobe DRM that uses a Trusted Computing chip with a fingerprint sensor. Even worse: 'The system is also aimed at tracking who reads a document and when, because the chip can report back every access attempt. If you access the file, your fingerprint is recorded.'"
Posted by James Zellmer at 7:32 AM

February 18, 2006

BMW Audio Books

www.bmw-audiobooks.com:
Put on your seatbelt and prepare for highs, lows and plenty of twists and turns. BMW, in conjunction with Random House, brings you BMW Audio Books, a unique series of specially-commissioned short stories showcasing the work of some of the finest contemporary writing talent. Each gripping tale is yours to download for free and a new book will be available to download every two weeks. Listen to them on your MP3 player, your laptop or ideally, in the car. So sit back, hit play and enjoy the ride.
Posted by James Zellmer at 4:02 PM

The Energy Outlook Changes

Ed Wallace:
Posted by James Zellmer at 3:28 PM

Thinking Different About the Car Sales Process

Robert Farago:
First, there were no cars. Why anyone selling an expensive product would want potential customers to contemplate a large number of them is beyond me; “pile ‘em high and sell ‘em cheap” is programmed into us on the genetic level. Second, Phaeton customers were isolated, indoctrinated and, most importantly of all, relaxed. The average car dealer’s showroom is more uncomfortably exposed than a public urinal and less relaxing than a dentist’s chair.
Posted by James Zellmer at 2:53 PM

Muni WiFi Updates

Kristian Knutsen notes that Madison's embryonic wifi service is planning to include a "walled garden" of free sites. I'd rather they not do this. The service should either be on or off, frankly. Rone Sege argues that we should not tax municipal wifi.
Posted by James Zellmer at 6:46 AM

February 17, 2006

Surviving Globalism - Caterpillar

Joann Muller:
Caterpillar confronted the same labor costs and Asian competition that the auto companies did. But Cat is doing just fine. Why?

A Midwest manufacturing company, fat and lazy, heavily unionized, suddenly faces foreign competition. You know the ending: massive layoffs, closed factories, consolidation, rumblings of bankruptcy. That's the familiar story of General Motors, Ford and lots of other big manufacturers over the last 20 or 30 years.
Great article, particularly in contrast to GM's challenges.
Posted by James Zellmer at 10:08 AM

Congressman Quizzes Net Companies on Shame

Declan McCullagh:
Rep. Tom Lantos: Can you say in English that you're ashamed of what your company and what the other companies have done?

Google: Congressman, I actually can't, I don't think it's fair for us to say that we're ashamed.

Lantos: You have nothing to be ashamed of?

Google: I am not ashamed of it, and I am not proud of it...We have taken a path, we have begun on a path, we have done a path that...will ultimately benefit all the users in China. If we determined, congressman, as a result of changing circumstances or as a result of the implementation of the Google.cn program that we are not achieving those results then we will assess our performance, our ability to achieve those goals, and whether to remain in the market.
Posted by James Zellmer at 9:52 AM

February 16, 2006

GM Deathwatch: 07 Tahoe Sales

Robert Farago:
This is a tale of two Tahoes. The first is a wildly successful SUV that’s flying off the lots at full price: a Hail Mary pass that will put General Motors back in the end zone, saving them from the unthinkable humiliation of bankruptcy, with only moments to spare. The second is a gas-guzzling truck that’s being swept out to sea by the vast receding tide of SUV buyers: a four-wheeled indictment of GM's inability to build what America wants to drive at a price that makes the company enough money to stay in business. For the time being, which vehicle you see depends entirely on which one you want to see.
The Chevy Tahoe is built in Janesville.
Posted by James Zellmer at 9:02 PM

Blodget on Amazon's Music Strategy

Henry Blodget:
The WSJ reported Amazon's plans to offer an Amazon-branded iPod competitor and digital music download store. I haven't done much work in this area yet, so please weigh in, but this strikes me as a startlingly bad move.

First, Amazon's entry into this business is shockingly and annoyingly late. As with the Netflix DVD business, Amazon could have owned this category, but in the name of moving deliberately (or of trying to become all things to all people), it allowed other competitors to build a dominant market position. No matter what the company says, winning significant market share in digital music is going to be much harder now than it would have been three years ago.
Posted by James Zellmer at 11:09 AM

Will: No Checks, Many Imbalances

George F. Will:
But, then, perhaps no future president will ask for such congressional involvement in the gravest decision government makes -- going to war. Why would future presidents ask, if the present administration successfully asserts its current doctrine? It is that whenever the nation is at war, the other two branches of government have a radically diminished pertinence to governance, and the president determines what that pertinence shall be. This monarchical doctrine emerges from the administration's stance that warrantless surveillance by the National Security Agency targeting American citizens on American soil is a legal exercise of the president's inherent powers as commander in chief, even though it violates the clear language of the 1978 Foreign Intelligence Surveillance Act, which was written to regulate wartime surveillance.
Posted by James Zellmer at 10:30 AM

RIAA: Ripping Your CD's is Not Fair Use (!)

EFF:
It is no secret that the entertainment oligopolists are not happy about space-shifting and format-shifting. But surely ripping your own CDs to your own iPod passes muster, right? In fact, didn't they admit as much in front of the Supreme Court during the MGM v. Grokster argument last year?

Apparently not.

As part of the on-going DMCA rule-making proceedings, the RIAA and other copyright industry associations submitted a filing that included this gem as part of their argument that space-shifting and format-shifting do not count as noninfringing uses, even when you are talking about making copies of your own CDs:
Some of our politicians have been serving Hollywood's interests (to the detriment of ours) rather well, including Jim Sensenbrenner and John Conyers, among others.
Posted by James Zellmer at 6:42 AM

February 15, 2006

Ford Selling the Fusion via Mockumentary

Jean Halliday:
To promote its new Fusion sedan, Ford is airing a "mockumentary" online film series about a band of Norwegian performance artists who would give the Maytag repairman fits. The rock group Hurra Torpedo cranks out cacophonous tunes by smashing clothes dryers, kitchen ranges and what looks like an outboard motor.

By linking with the group, Ford hopes to attract consumers between the ages of 25 and 35 to the Fusion. Ford is sponsoring the three-man band's U.S. tour. The promotion includes an online sweepstakes that will give away the red Fusion SEL the band is driving on the road.
Posted by James Zellmer at 10:28 PM

Is Energy's Future Sustainable?

Michael Simmons:
In his Harvard Lecture, Simmons explores the ramifications of peak energy (not just oil). The potential for world conflict is there, but it doesn't have to be inevitable. (5 MB PDF - republished with permission)
Posted by James Zellmer at 9:12 AM

February 14, 2006

A Chat with Mattel's Bob Eckhert

Marketplace:
The toy industry's big trade show gets down to business in New York this weekend. Meanwhile, in our new series "Conversations from the Corner Office," Kai talks with Mattel's CEO Bob Eckert about the perks and responsibilities of running the world's biggest toymaker.
Eckert is a former Oscar Meyer CEO.
Posted by James Zellmer at 8:58 PM

Sigur Ros on Conan

Iceland's Sigur Ros appeared on Conan O'Brien's show recently. Video here. Via Fred. More on Sigur Ros
Posted by James Zellmer at 6:53 AM

February 13, 2006

Bill Graham's Rock Archives Stream Online

Reuters:
Some of rock's most intriguing content is now in cyberspace via the Wolfgang's Vault Web site. The memorabilia seller offers treasures from the stash of promoter Bill Graham, programmer of San Francisco's legendary Fillmore, who died in 1991.

A 75-song playlist culled from 7,000 to 8,000 vintage audio and video concert recordings made between 1966 and 1999 began streaming on the Wolfgang's Vault Web site Feb. 8, at no cost to consumers. The owner of the Graham archive is optimistic that some of the seminal performances will make it to retailers' shelves as CDs and DVDs by year's end.
Posted by James Zellmer at 9:52 PM

Seven Sins of Fund Management

Barry Ritholtz:

There is a terrific PDF (warning -- its 105 pages) on the Seven Sins of Fund Management. It is a behavioural critique by James Montier, the Global Equity Strategist of Dresdner Kleinwort Wasserstein, and its full of all sorts of smart observations, backed up with data and charts.

I haven't read prior work of Mr. Montier -- but this PDF made me interested in his book, "Behavioural Finance: A User's Guide."

I may be  referencing parts of the PDF in the future, but if you want an overview, here are the 7 Deadly Sins

Sin 1 Forecasting
The folly of forecasting: Ignore all economists, strategists & analysts
Do analysts understand value: who is the greater fool?

Posted by James Zellmer at 9:01 AM

February 12, 2006

Freedom To Connect

Via Frank Paynter:
The need to communicate is primary, like the need to breathe, eat, sleep, reproduce, socialize and learn. Better connections make for better communication. Better connections drive economic growth through better access to suppliers, customers and ideas. Better connections provide for development and testing of ideas in science and the arts. Better connections improve the quality of everyday life. Better connections build stronger democracies. Strong democracies build strong networks.

F2C:Freedom to Connect begins with two assumptions. First, if some connectivity is good, then more connectivity is better. Second, if a connection that does one thing is good, then a connection that can do many things is better.

F2C:Freedom to Connect belongs with Freedom of Speech, Press, Religion and Assembly. Each of these freedoms is related to the others and depends on the others, but stands distinct. Freedom to Connect, too, depends on the other four but carries its own meaning. Unlike the others, it does not yet have a body of law and practice surrounding it. There is no Digital Bill of Rights. Freedom to Connect is the place to start.
Posted by James Zellmer at 11:07 PM

"We Thought You Said Spend the $200 Billion on Dark Fiber"

John Paczkowski:

The United States is the 19th ranked nation in household broadband connectivity rate, just ahead of Slovenia.' Want to know why? Because, contends telecom analyst Bruce Kushnick, the Bell Companies never delivered symmetrical fiber-optic connectivity to millions of Americans though they were paid more than $200 billion to do it. According to Kushnick's book, "$200 Billion Broadband Scandal", during the buildup to the 1996 Telecommunications Reform Act, the major U.S. telcos promised to deliver fiber to 86 million households by 2006 (we're talking about fiber to the home, here). They asked for, and were given, some $200 billion in tax cuts and other incentives to pay for it.' But the Bells didn't spend that money on fiber upgrades -- they spent it on long distance, wireless and' inferior DSL services.' Some headlines from Kushnick's work:

  • By 2006, 86 million households should have been rewired with a fiber optic wire, capable of 45 Mbps, in both directions.
  • The public subsidies for infrastructure were pocketed. The phone companies collected over $200 billion in higher phone rates and tax perks, about $2000 per household.
  • The World is Laughing at US. Korea and Japan have 100 Mbps services as standard, and America could have been Number One had the phone companies actually delivered. Instead, we are 16th in broadband and falling in technology dominance.
Wonderful... More here.
Posted by James Zellmer at 8:25 PM

February 11, 2006

FTC May Publicize Companies that use Adware

Via Slashdot:
"A ZDNet article reports that the FTC may be gearing up to humiliate companies that advertise via adware." From the article: "The FTC would publicly announce and publish the name of a company that advertises using adware that installs itself surreptitiously on consumer PCs or using spyware, Leibowitz said. He would recommend publicly shaming advertisers to the other FTC commissioners if the adware problem doesn't decrease, he said."
Posted by James Zellmer at 8:43 AM

February 10, 2006

Lessig on Network Neutrality

Larry Lessig, testifying before the Senate Commerce Committee this week [pdf]:
To answer that question, this Committee must keep in view a fundamental fact about the Internet: as scholars and network theorists have extensively documented, the innovation and explosive growth of the Internet is directly linked to its particular architectural design. It was in large part because the network respected what Saltzer, Clark and Reed called “the ‘end-to-end’ principle” that the explosive growth of the Internet happened. If this Committee wants to preserve that growth and innovation, it should take steps to protect this fundamental design.
Lessig makes sense, while the incumbent telcos do not. Cringely has more.
Posted by James Zellmer at 7:43 PM

The Economics of Mulch

Tyler Cowen:
ST. FRANCIS: You'd better sit down, Lord. The Suburbanites have drawn a new circle, As soon as the leaves fall, they rake them into great piles and pay to have them hauled away.

GOD: No. What do they do to protect the shrub and tree roots in the winter and to keep the soil moist and loose?

ST. FRANCIS: After throwing away the leaves, they go out and buy something which they call mulch. They haul it home and spread it around in place of the leaves.

ST. FRANCIS They cut down trees and grind them up to make the mulch.
Posted by James Zellmer at 10:04 AM

February 9, 2006

Net Neutrality: Rick Boucher Makes Sense

Rep Rick Boucher:
Recently, executives at some telephone companies have indicated that their business models for providing broadband service include not only charging their end-user customers for an Internet connection but also assessing a fee on websites for users to reach them more quickly. They claim that to offer advanced content such as multiple video-programming channels in competition with cable they need to prioritize their bits to deliver quality programs. They then propose that they will give the same priority access to other companies that pay them for it.

Essentially, what these executives are proposing is the creation of a two-lane Internet where larger, more established websites with financial resources could squeeze out smaller, emerging websites. One clear victim will be the innovation that has thrived on the open Internet. Startups simply could not afford to pay for fast-lane treatment nationwide. One must ask where the next Google or Yahoo will come from if new innovative companies can receive only inferior, slow-lane Internet access...

In countries such as Japan and Korea, network speeds over the last mile of 100 megabits per second (mbps) are common. In the United States, our typical speed is less than 1 mbps. If broadband providers would increase their network speeds to approximate those in other countries, all content would reach consumers with assured quality. No prioritization of bits would be needed.
Posted by James Zellmer at 10:02 PM

EFF: Don't Install Google Desktop

The Electronic Frontier Foundation:
The EFF is asking users not to use the new version of Google Desktop that has a 'search across computers' option. The option will store copies of documents on you hard drive on Google servers, where the goverment or anyone who wants to may subpoena (i.e. no search warrents) the information. Google says it is not yet scanning the files for advertising, but it hasn't ruled out the possibility."
slashdot discussion. John Paczkowski has more.
Posted by James Zellmer at 9:34 PM

February 8, 2006

Fossett Flying Farther

Steve Fossett is aloft, again in the Global Flyer. This time, flying farther. Follow the flight here.
Posted by James Zellmer at 9:54 PM

Another Cyberdissident Imprisoned Because of Data Provided by Yahoo

Rebecca McKinnon:
Reporters Without Borders today condemned the US firm Yahoo! for handing over data on one of its users in China which enabled the authorities there to send him to prison for eight years, the second such case that has come to light in recent months.

It called on Yahoo! to supply a list of all cyberdissidents it has provided data on, beginning with 81 people in China whose release the worldwide press freedom organization is currently campaigning for.

It said it had discovered that Yahoo! customer and cyberdissident Li Zhi had been given his eight-year prison sentence in December 2003 based on electronic records provided by Yahoo. “How many more cases are we going to find?” it asked.
Posted by James Zellmer at 7:55 PM

Consumer Debt Growth

Barry Ritholtz:
The facts are indisputable - the consumer has grown increasingly levered just when interest rates are rising and the large amount of mortgages based on teaser rates are about to be reset.

The facts speak for themselves:
  • Non-discretionary consumer spending (for items like food, energy, medical expenses and interest payments) which vacillated in the 44% to 47% range until 2000 has now risen to 54%.
  • Household debt/household assets is at an all-time record high (up from 14% six years ago to nearly 19% today).
Posted by James Zellmer at 9:27 AM

February 7, 2006

Death of Blockbuster, Part IV

Chris Anderson pens and charts his way to the conclusion that:
Bottom line: even in Hollywood, the home of the blockbuster, hits are losing their power. It's not nearly as dire as in music, but it's trending in the same direction. Does this mean the end of movies? Not at all--there have never been more films made, just as there has never been more music available than today, despite the fact that the bestsellers sell less.

It's not that people aren't watching films and listening to music, it's that they're watching different films and different music--we're just not following the herd to the same hits the way we used to. I'd guess that most of the decline in box office is due to the rise of the DVD, not a loss of interest in movies.
Posted by James Zellmer at 2:35 PM

February 6, 2006

ACC Shorts Crash

Enplaned:
So why do we keep track (from time to time) of ACC? We like ACC because it's an example of good ole American homegrown ingenuity. ACC's aircraft are Shorts 330s and Shorts 360s, which were once commuter passenger aircraft. Shorts was once an independent aircraft manufacturer based in Belfast, Northern Ireland, now no longer building aircraft but instead a parts-manufacturing division of Bombardier. The Shorts factory is at Belfast City Airport, which in recent years has taken an increasing share of traffic into that city (versus Belfast International).
Posted by James Zellmer at 10:42 PM

The Gladwell Effect

Rachel Donadio:
"PEOPLE are experience rich and theory poor," the writer Malcolm Gladwell said recently. "People who are busy doing things — as opposed to people who are busy sitting around, like me, reading and having coffee in coffee shops — don't have opportunities to kind of collect and organize their experiences and make sense of them."
[mp3 audio]
Posted by James Zellmer at 10:58 AM

Shared WiFi: FON

What is FON?:
FON is a Global Community of people who share WiFi. Share your WiFi broadband access at home/work and enjoy WiFi all over the world! FON: small cost, great benefit!

To become a Fonero, all you need to do is register with us on our website, have broadband connection, and download the FON Software onto your WiFi router. It’s that simple. Just share your connection and the rest of the Community shares back with you. Join FON and enjoy connecting from anywhere within the WiFi World.

To start sharing, set up your access point where you can receive the most coverage, generally close to the window or outside your home. The rest of the Community will be thankful.
Posted by James Zellmer at 8:48 AM

February 5, 2006

Search Engine Math or Simplified Boolean Searching

Pandia:
Now, if you find Boolean operators too intimidating, there is an easier way. This is called simplified search syntax, pseudo-Boolean searching, implied Boolean or (according to Danny Sullivan of Search Engine Watch) "search engine math".
Posted by James Zellmer at 2:26 PM

15 Tech Concepts for 2006

Alex Hutchinson:
Scientific and technological breakthroughs can take years to develop, but when they leave the lab and enter the world at large, word spreads quickly. Here's a look at the advances you'll be hearing about in the coming year.
Posted by James Zellmer at 2:24 PM

The $33K 2007 Toyota Camry Hybrid

Dan Nell takes a drive in the new Toyota Camry Hybrid:
Like a Trojan horse, Camry sneaks gas-saving radicalism into a trusted American staple.

By certain lights, the 2007 Camry Hybrid is not particularly revolutionary. Here we have a nicely equipped, 3,637-pound, five-passenger sedan with 192 horsepower, costing about $30,000 (final pricing has yet to be confirmed). Styling reminds me of the old Merle Travis song: So round, so firm, so fully packed. The ride and handling are straight-up Pink Floyd: comfortably numb.
Posted by James Zellmer at 8:50 AM

February 4, 2006

Search Firms Surveyed on Privacy

Declan McCullagh and Elinor Mills:
To find out what kind of information the four major search companies retain about their users, CNET News.com surveyed America Online, Google, Microsoft and Yahoo.

We asked the same seven questions of each company. Their answers are reproduced below, with the responses sorted by the companies' names in alphabetical order.
Posted by James Zellmer at 11:12 AM

February 3, 2006

L’Ensemble Portique Performs Next Friday Evening

L’Ensemble Portique:
February 10, 2006 at 7:30 pm
Trinity Lutheran Church
1904 Winnebago Street, Madison, WI
They kindly offer some mp3's here, along with the opportunity to purchase some cd's.
Posted by James Zellmer at 9:12 PM

The Last Telegram

AP:
For more than 150 years, messages of joy, sorrow and success came in signature yellow envelopes hand delivered by a courier. Now the Western Union telegram is officially a thing of the past.
Posted by James Zellmer at 7:53 PM

February 2, 2006

Small Dairyman Shakes Up Milk Industry

Ilan Brat:
The milk fight, which is being watched in the industry from coast to coast, started because Mr. Hettinga runs a rare hybrid operation. Most dairy businesses either only produce milk, or only process it. He does both. As a result, he falls into a protected class that isn't bound by an arcane system of Depression-era federal rules. Under it, milk processors selling into specific geographical areas, which cover most of the country, must all pay into that area's pool for subsidizing milk prices. But so-called producer-distributors have always been exempt.
Posted by James Zellmer at 10:18 PM

The Role of Civil Disobedience Today

PBS NewsHour:
Students examine civil disobedience's history and explore whether it is a viable form of protest in today's world
Posted by James Zellmer at 10:14 PM

The End of the Internet?

Jeff Chester:
The nation's largest telephone and cable companies are crafting an alarming set of strategies that would transform the free, open and nondiscriminatory Internet of today to a privately run and branded service that would charge a fee for virtually everything we do online.

Verizon, Comcast, Bell South and other communications giants are developing strategies that would track and store information on our every move in cyberspace in a vast data-collection and marketing system, the scope of which could rival the National Security Agency. According to white papers now being circulated in the cable, telephone and telecommunications industries, those with the deepest pockets--corporations, special-interest groups and major advertisers--would get preferred treatment. Content from these providers would have first priority on our computer and television screens, while information seen as undesirable, such as peer-to-peer communications, could be relegated to a slow lane or simply shut out.
Posted by James Zellmer at 9:40 PM

Fed's Bies Warns on Mortgage & Real Estate Lending

Reuters:
Regulators are concerned about heavy commercial real estate exposures and risky mortgage lending practices at U.S. banks, Federal Reserve Board Governor Susan Bies said on Thursday.

"There are certain rapidly growing business lines in banking operations that are placing pressures on risk-management systems," Bies told a financial services industry conference as she outlined guidance regulators have issued on commercial real estate and so-called nontraditional mortgage lending.

In discussing the guidance on exotic mortgage products, such as interest-only loans, Bies repeated that government regulators were concerned risk-management practices had not kept pace with the risks that these widely available loan products could present.
Posted by James Zellmer at 5:28 PM

February 1, 2006

Interview with Southwest Airlines CEO Gary Kelly

Marketplace:
In the first installment of our new segment "Conversations from the Corner Office," Kai talks with Southwest Airlines CEO Gary Kelly about building a corporate culture, and why the customer isn't necessarily always right.
Southwest continues to have a market cap greater than all of the other airlines, combined. Perhaps, one day, they will serve Madison.
Posted by James Zellmer at 1:36 PM