IT’S a pickle of a paradox: As our knowledge and expertise increase, our creativity and ability to innovate tend to taper off. Why? Because the walls of the proverbial box in which we think are thickening along with our experience.Andrew S. Grove, the co-founder of Intel, put it well in 2005 when he told an interviewer from Fortune, “When everybody knows that something is so, it means that nobody knows nothin’.” In other words, it becomes nearly impossible to look beyond what you know and think outside the box you’ve built around yourself.
This so-called curse of knowledge, a phrase used in a 1989 paper in The Journal of Political Economy, means that once you’ve become an expert in a particular subject, it’s hard to imagine not knowing what you do. Your conversations with others in the field are peppered with catch phrases and jargon that are foreign to the uninitiated. When it’s time to accomplish a task — open a store, build a house, buy new cash registers, sell insurance — those in the know get it done the way it has always been done, stifling innovation as they barrel along the well-worn path.
Elizabeth Newton, a psychologist, conducted an experiment on the curse of knowledge while working on her doctorate at Stanford in 1990. She gave one set of people, called “tappers,” a list of commonly known songs from which to choose. Their task was to rap their knuckles on a tabletop to the rhythm of the chosen tune as they thought about it in their heads. A second set of people, called “listeners,” were asked to name the songs.
Before the experiment began, the tappers were asked how often they believed that the listeners would name the songs correctly. On average, tappers expected listeners to get it right about half the time. In the end, however, listeners guessed only 3 of 120 songs tapped out, or 2.5 percent.
Celebrated directors from around the world, including the Coen Brothers, Gus Van Sant, Gurinder Chadha, Wes Craven, Walter Salles, Alexander Payne and Olivier Assayas, have come together to portray Paris in a way never before imagined. Made by a team of contributors as cosmopolitan as the city itself, this portrait of the city is as diverse as its creators’ backgrounds and nationalities. With each director telling the story of an unusual encounter in one of the city’s neighborhoods, the vignettes go beyond the ‘postcard’ view of Paris to portray aspects of the city rarely seen on the big screen.Wikipedia.
A wonderful film, well worth seeing.
I just finished reading David Halberstam's last book: "The Coldest Winter". This work is a fascinating look at the key players in and around the Korean War. Well worth reading. Amazon Link. Powell's Review and the NY Times review.
A Vermont federal judge has ruled that a person cannot be compelled by police to divulge his PGP key. This is by no means the end of the legal debate (Orin Kerr comments), but it's certainly good news.Clusty search on the 5th Amendment.
What used to be rare is now commonplace: traveling abroad to receive medical treatment, and to a developing country at that.So-called medical tourism is on the rise for everything from cardiac care to plastic surgery to hip and knee replacements. As a recent Harvard Business School case study describes, the globalization of health care also provides a fascinating angle on globalization generally and is of great interest to corporate strategists.
"Apollo Hospitals—First-World Health Care at Emerging-Market Prices" explores how Dr. Prathap C. Reddy, a cardiologist, opened India's first for-profit hospital in the southern city of Chennai in 1983. Today the Apollo Hospitals Group manages more than 30 hospitals and treats patients from many different countries, according to the case. Tarun Khanna, a Harvard Business School professor specializing in global strategy, coauthored the case with professor Felix Oberholzer-Gee and Carin-Isabel Knoop, executive director of the HBS Global Research Group.
The medical services industry hasn't been global historically but is becoming so now, says Khanna. There are several reasons that globalization can manifest itself in this industry:
BBC:
The US sub-prime mortgage crisis has lead to plunging property prices, a slowdown in the US economy, and billions in losses by banks. It stems from a fundamental change in the way mortgages are funded.Traditionally, banks have financed their mortgage lending through the deposits they receive from their customers. This has limited the amount of mortgage lending they could do.
In recent years, banks have moved to a new model where they sell on the mortgages to the bond markets. This has made it much easier to fund additional borrowing,
But it has also led to abuses as banks no longer have the incentive to check carefully the mortgages they issue.
Walter H. Besley may well have been Wisconsin's first open-government crusader.Back in 1853, five years after Wisconsin became a state, Besley, the clerk of circuit court in Jefferson County, billed the County Board of Supervisors $22 for two expenses: wood to furnish his office and a large box of candles to light and warm it.
The board rejected the expenditure. Besley sued and won. The board was ordered to pay these expenses, plus interest and "the costs of suit."
In 1856, the Wisconsin Supreme Court heard the case on appeal. It affirmed the circuit court's ruling, citing a state law mandating that the clerk and other county officials "keep his office open during business hours, Sundays excepted, and all books and papers required to be kept in this office shall be open for the examination of any person."
The court said the Legislature's intent was clear: "to accommodate the wants of the citizens" who had business to transact. "To require these officers to keep their offices open during business hours," it wrote, "and yet provide no means of warming or lighting them would be simply absurd."
While the law did not require the clerk "to keep a tavern" -- which presumably would also accommodate the wants of some citizens -- "it is clearly the object and intention of the statute that these county offices shall be kept open, and in a suitable condition." Thus the expenses presented by Besley were "a proper and legal county charge" that the board was wrong to reject.
Southwest Airlines Co. chief executive Gary Kelly doesn't have any offers out to buy another airline, but he expects Southwest to jump in when the consolidation fun begins.Perhaps, one day, Madison will be fortunate to have Southwest air service."At some point, I think we'll probably acquire somebody," Mr. Kelly said in a recent discussion with Dallas Morning News business editors and reporters. "There's bound to be a scenario that we would say, 'That scenario out of these 10, yep, that one would work for us.' We'd want to be prepared for that opportunity that presents itself."
Southwest's investment in bankrupt ATA Airlines Inc. in 2004 offers a good example of being ready, he said. Of course, the airline is well aware of the pitfalls of acquiring another carrier, a strategy it followed in 1993 when it acquired Morris Air and in 1986 when it bought Muse Air.
Yesterday I attended the Third Annual SNS New York Dinner, a gathering of tech professionals and investors at the famous Waldorf=Astoria Hotel hosted by futurist Mark Anderson. As usual, Anderson stirred controversy with a big dose of his high-powered brain candy.Anderson opened the evening with a set of interlocking observations about the current global landscape. First, Anderson said that the world will face two crises as it transitions into the new year. The first is a climate crisis and the second a financial liquidity crisis.
"We must now agree that the climate crisis is true. We are past the time for debate. But now we need a rapid response," he said. "What if the global climate crisis is non-linear? There are no straight lines in nature," he said. Anderson agreed with Albert Gore's recent remarks that humanity is at war with the planet, but he reminded SNS attendees, as he did at the last two dinners, that there is lots of money to be made by figuring out to end humanity's war against nature.
Anderson predicted that the West's good will with China would come to an end in 2008, in no small part due to China's role as a massive polluter (which the world will notice at the 2008 Olympics) but also because China has taken its current role in the global economy as far as it can. Soon China will have to grow up and evolve.
High oil prices, which Anderson has spotlighted at the last two SNS dinners, will continue to climb. "$70 a barrel for oil is the new floor," he said. "We'll see another run to $100 a barrel by December 31 next year, or shortly afterwards."
Which brings us to the Dafen "art factory village" outside Shenzhen, in southern China. I had heard a lot about Dafen, including in a very good story by Evan Osnos of the Chicago Tribune early this year. (The story seems no longer to be on the Tribune's site. For reference, it was published on February 13, 2007.) But only this weekend did I see it, guided by Liam Casey, the Irish "Mr. China" I described a few months ago in an article about Shenzhen's more conventional factories. Now that I've seen it -- my lord!
Daniel Goleman, author of Emotional Intelligence, asks why we aren’t more compassionate more of the time. Through psychological experiments and a story of the Santa Cruz Strangler, he shows how we are all born with the capacity for empathy -- but we sometimes choose to ignore it. (Recorded March 2007 in Monterey, California. Duration: 13:13.)
The digitized specter of cyberwar is haunting the boardrooms, barracks, and law offices of America. China’s audacious September 2007 infiltration of secure Pentagon networks and government servers in several other nations has powerfully demonstrated that cyberwar’s moment has arrived. Cybersecurity analysts have estimated that 120 different nations are working to evolve cyberwar capabilities. Most of today’s current cyberwar operations involve hackers probing civilian and military networks for vulnerabilities and restricted information, operations that focus less on disruption than recon and surveillance.
Taylor Clark ought to know how Starbucks got its roc-like wingspan. That’s the tale by which we want to be spellbound. Clark quotes a 1997 Larry King interview with Howard Schultz, the company’s chairman, where Schultz outlines what should have been the plot of Clark’s book:
“People weren’t drinking coffee. ... So the question is, How could a company create retail stores where coffee was not previously sold, ... charge three times more for it than the local doughnut shop, put Italian names on it that no one can pronounce, and then have six million customers a week coming through the stores?”
At most holiday feasts, the second helping is more filling than the first.That should be the case in my annual buffet of fund buffoonery, the 12th annual Lump of Coal Awards, recognizing managers, executives, firms, watchdogs and other fund-industry types for action, attitude, behavior or performance that is misguided, bumbling, offensive, disingenuous, reprehensible or just plain stupid.
Last week, I highlighted 10 award winners who deserved nothing more than coal in their holiday stocking this year. Here are the rest:
Failing to get out the vote: Managers of the Blue funds. The tiny Blue funds allow Democrats to invest in companies that "act blue" and "give blue." Beyond that, management claims to be "actively engaging in shareholder resolutions and proxy voting in an effort to promote increased transparency in corporate political giving."
Late in August 2006, the federal Centers for Disease Control and Prevention in Atlanta began investigating cases of severe food poisoning reported by health officials in 26 states and one Canadian province. Over the next six weeks, a rare and particularly virulent strain of Escherichia coli 0157:H7 sickened more than 200 people across North America, hospitalizing half of them, some with severe kidney damage, and killing two elderly women and a child. For epidemiologists, the outbreak presented a breakthrough because a DNA-fingerprinting system enabled CDC investigators to trace the source of the infections from clusters of cases nationwide.Bacteria in stool samples of hospitalized patients were genetically matched to pathogens in packaged, "ready to eat" Dole brand spinach that they had recently purchased and consumed. Further, product codes on the bags indicated that the contaminated greens had been processed during one shift on Aug. 15 at a plant in San Juan Bautista then owned and operated by Natural Selection Foods. The company's records showed that the spinach had been harvested from four fields in Monterey and San Benito counties.
The other day, two young heifer calves were stolen from a dairy in Tulare County. The thieves drove them to Kings County, where they apparently discovered to their chagrin that the animals were branded.That would make selling them difficult. If they tried to sell the calves at a livestock auction, the state brand inspectors would want to see proof of ownership. Cops on the case think the thieves figured they were toast. So, they simply tossed the animals out of their car in downtown Hanford, in front of the flour mill at Sixth and Green streets, and drove away. A car came by and struck and killed one of the calves. The other one wandered a mile away, ending up in a man's front yard.
There was weariness in Greg Lawley's voice as he told the story. "They have no regard for animals," said Lawley, chief of the Bureau of Livestock Identification at the California Department of Food and Agriculture.
"Makes you sick," Lawley said of cattle rustling redux.
I saw a young man wearing a classic Brewers baseball cap earlier today. It occurred to me that this is the "pre steriod era" logo.
Vincent Virga's Cartographia is a rare collection of 250 color maps and illustrations drawn from the world's largest cartographic collection at the Library of Congress. The collection spans everything from maps of ancient Mesopotamia, to maps of Columbus' discoveries, to contemporary satellite images and maps of the human genome.Virga says that maps are like time machines — they reveal as much about the society that created them as they do about the geography of the places they describe.
Virga discusses the collection, which he culled from the Library of Congress' millions of maps and tens of thousands of atlases.
As digital cameras proliferate, consumers want to make use of all of those pictures they're taking. Many of them wind up buried on computer hard drives. But it's getting easier to take those photos and display them on a digital photo frame in the living room.These photo frames look just like any other picture frame from a distance. But they are, in fact, small liquid crystal displays that can change the photos on display every few seconds. For romantics and technology Luddites, that is a kind of blasphemy, a reflection of a fickle age where not even a still image can remain constant.
But who says you have to look at the same pictures of your relatives on the mantel for all eternity? Sometimes, change is good. That's why digital photo frames were the No. 2 consumer technology gift on Black Friday, just behind navigation devices, according to market researcher NPD Group. Sales were up 171 percent compared with a year ago.
Picking a good digital photo frame is a matter of looking at the display and checking out its quality. If it looks good, that's a clue.
A reader forwarded this full page, color advertisement paid for by large telco (AT&T, etc.) front group TV4us. The advertisement appeared in this morning's Wisconsin State Journal. The State Journal supports the AT&T "video competition bill". 
Click to view a larger version
Brian Clark has more:
Vergin said he's pleased he'll only have to get one state franchise, instead of having to deal with the 33 different municipalities in his service area.The Governor and Legislature appear to have obtained nothing while giving away significant regulatory changes. A disaster for Wisconsin business, schools residents and public agencies. What a deal for the large telcos: spend money on lobbying and advertising but not fiber to the home. Classic rentier approach: milk the slow copper network that we've paid for many times over as long as possible.“That’s a big benefit for us and what I think the bill is all about,” he said.
Vergin said his company’s prices won’t be any lower than Charter’s. But he's convinced his firm will be able to offer better service and options to bundle cable, phone and wireless service.
He said he was opposed to proposed rules that would have required his company to serve entire communities. He also rejected suggestions telecommunications firms should be ordered to run fiber optic to homes and businesses.
“The 100 requirement would limit us,” he said. “And we are running fiber optic to new construction, but not existing buildings. I just don’t think the government should tell us what technology we should use. The market should decide that. I also think have 50 percent of any area covered is better than none.”
.....
(Charles) Higley (Citizen's Utility Board Executive Director) said he, too, would have liked to have seen a requirement that companies build fiber optic cable.
“We’ve had promises to build it before and it didn’t come,” he said. “In the future, if not already, broadband is an essential service like telephone and electricity. We think government should require essential services.”
Keep in mind Verizon's FIOS, a fiber to the home product installed in many communities [Service Map] - none in Wisconsin.
I recently had the opportunity to use basic FIOS service while on travel. The service was symmetrical - that is, upload and download speeds are the same. Local dsl services are not symmetrical - AT&T and TDS limit upload speeds to a very slow 768kpbs.
This archaic approach is awful for those of us creating, uploading and backing up media (photos, videos and music, not to mention data heavy scientific applications). FIOS provides at least 5 to 50X the speeds of the fastest dsl service generally available in the Madison area. Slow networks limit entrepreneurial opportunities, particularly emerging home based businesses.
Finally, I spoke briefly some years ago with then Gubernatorial candidate Jim Doyle at a campaign event. I mentioned Wisconsin's very poor broadband infrastructure. He said he understood these issues but could not address them in his first term but hoped to in a second. Will Doyle leave a legacy of aging, slow copper networks? I put a call into Susan Goodwin, Chief of Staff, for an update.
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A bit of sugar for AT&T. This giant organization is fully capable of implementing a modern, high quality, fast fiber network. They simply need to make the strategic decision, as Verizon has, to upgrade their network. How much longer must we pay for the old, old copper lines? I've received excellent, economical service from AT&T's cell network.
Background:
One of the rare examples of altruism in pistonheads concerns the (nearly extinct) American station wagon. They passionately defend the one automotive genre that the vast majority of American consumers wouldn’t be caught dead in (excepting a hearse). Why so much love for a car shape that’s been fading from the American scene for the best part of 25 years? The passion comes from recognition. The reality we’ll have to blame on Darwin and his stupid birds.Wagons increase a car’s cargo space without altering the donor car’s fundament shape. They’re a bit heavier and generally a little shakier than their sedan sibling, but still offer car-like driving dynamics. This is important to enthusiasts, who value driving dynamics sur tout. Ironically, pistonheads hate compromises; generally speaking, they don’t buy wagons. But they recommend them to others– especially SUV owners– based on the combination of handling and hauling.
Madison Mayor Dave Cieslewicz:[72K PDF]
Enclosed you will find your 2007 property tax bill. While the City of Madison processes your taxes, the property tax bill is actually made up of five parts. The Madison Metropolitan School District has the largest share, followed by the City, Dane County, and Madison Area Technical College. A small amount is also levied for the state forestry tax.These words are a useful look at the Mayor's perspective on local taxpayers.The primary concern in our community today is the quality of life and safety in our neighborhoods. This summer and fall, I attended eight listening sessions across the City on these issues. People told me they wanted their City government to make sure their neighborhoods are safe and healthy. In response, the City budget makes the following investments:
The City budget also includes park improvements, expanded library hours at some branches, road
- Increasing Police Resources. In addition to 30 new officers, the City budget includes two additional crime analysts to make sure we' re not j ust stronger, but also smarter, in use of our resources.
- Targeting Bad Landlords. The addition of three new building inspectors and our new nuisance abat ement ordinance give us the tools we need to get after landlords who don't maintain their properties or adequatel y screen their tenants.
- Strengthening Neighborhoods. We doubled the Emerging Nei ghborhoods Fund to $200,000, giving us quick-access resources to prevent small problems from becoming bigger, more expensi ve ones. We' re launching a Neighborhood Indicators Project to give us statistical early warning signs of neighborhood decline. The budget also funds another graffiti elimination crew to keep our neighborhoods free of gang-related messages.
- Programs for Young People. We are increasing Communi ty Service programs by over 7%, funding initiatives for after school and youth programs, and doubling the number of youth conservation corps crews.
projects, energy efficiency initiatives, a new effort to clean our beaches, and other programs to maintain and improve Madi son' s quality of life.
Fremont resident Rakesh Guliani likes to say that a Roomba robotic vacuum cleaner saved his marriage.Messy floors had been causing friction, says the 41-year-old Guliani (pronounced Goo-liani). His wife, Kavita, 35, was particularly annoyed by the footprints he and their daughters, Ashna, 10, and Rhea, 6, tended to track through the house.
"I am soccer coach to both of them, and when we come in with our dirty cleats, I am more tolerant of that because I am tracking dirt, too," says Guliani, vice president of the job-placement firm Park Computer Systems. He vacuumed several times a week but it never seemed enough to satisfy his wife, a technical writer for Google."I was sucking the thread out of the carpet," says Guliani, who bought a Roomba last fall and programmed it to scour the carpets for dust, dirt and grime. Regular cleanings by the Roomba restored household harmony. "It never gets bored and it never complains," he says.
The Guliani family is at the cutting edge of what may be the next technological revolution - the emergence of software and hardware capable of performing tasks once reserved for that race of toolmakers called Homo sapiens.
"Sometime in the next 30, 40, 50 years we will have human-level machine intelligence," predicts Marshall Brain, a computer science teacher turned author and technology forecaster.
A cold view (wind chill was below 0) from Olin Park early Saturday morning. Madison's Monona Terrace and the State Capitol are visible.
“Down the drain, off the brain” is how most people think about it, but human waste—or effluent, as the professionals call it—has a lot to tell us about how we live, what we eat, and who we are.Excellent Article.They say that shit runs downhill. This is commonly understood to mean that the world is an unfair place, except among those few people who actually work with the substance, for whom it is considered something of an article of faith. This is because municipal sewerage systems are powered almost entirely by gravity, which means that when working properly, they move millions of gallons of sewage a day across considerable distances with only a minimum expenditure of energy, a feat of efficiency virtually unparalleled in the annals of engineering. When sewage stops running downhill, as it inevitably does from time to time, very bad things indeed can happen, as they did on Pecan Springs Road, in the Austin neighborhood known as Windsor Park, one morning last September.
I was spending the day with an Austin Water Utility emergency-response crew when dispatch got a call from a woman reporting that two rooms of her house were flooded with sewage. Our crew consisted of a TV truck, piloted by a twenty-year line-maintenance veteran named David Eller, and a flusher truck, driven by another longtime utility employee, named Dale Crocker. At the house, Eller, who wears wraparound sunglasses and looks a little like the country singer Dwight Yoakam, unspooled a thick red cable from the back of his truck. On the end of the cable was a camera about the size of a roll of quarters, which Crocker shoved down into a PVC clean-out pipe near the curb in the front yard. The woman leaned on a walker in her driveway, looking worried.
The journey to this morning's Winter Farmer's Market was beautiful, but quite cold. Madison's Frank Lloyd Wright inspired Monona Terrace never fails to provide an interesting vantage point for the photographer.
Act I: The act of buyingWhen someone buys a book, they are also buying the right to resell that book, to loan it out, or to even give it away if they want. Everyone understands this.
Jeff Bezos, Open letter to Author’s Guild, 2002
You may not sell, rent, lease, distribute, broadcast, sublicense or otherwise assign any rights to the Digital Content or any portion of it to any third party, and you may not remove any proprietary notices or labels on the Digital Content. In addition, you may not, and you will not encourage, assist or authorize any other person to, bypass, modify, defeat or circumvent security features that protect the Digital Content.
Amazon, Kindle Terms of Service, 2007
Editorial Director Marco Trezzini, via email:
Since I believe we have created the best issue of VRMAG ever, I'm writing you with the hope you will accept to dedicate 5 minutes of your time to explore our online magazine dedicated to photographic virtual reality exploration of people, places and events around the world. Almost forgot to mention, VRMAG is a no profit publication, with no ads.Visit www.vrmag.org now.This issue features the closed zone of Chernobyl, Wired NextFest in Los Angeles, Cuba's capital city La Habana, Red square in Moscow, the Palaces where European Royalties lives, New York's Tribute in light, the island of Cyprus's Aphrodite beach, Valentino's exhibit Ara Pacis museum in Rome, the Mayan ruins Chinkultic and Tenam Puente in Mexico, Vienna, the Copenhagen Opera House, Seattle, RedBull AirRace Abu Dhabi ....
For VRMAG showing panoramas of the physical world is not enough,
so we'll take you to Second Life in order to visit Anshe Chung's Picture Gallery Dresden, and to DanCoyote's Full Immersion Hyperformalism and get behind the scenes on the creation of next generation interactive screenshots for the gaming industry, take a visit to an "wellenkreis" an art installation of an endless sine curve in real space ...You will experience the view a sleeping pill has from it's medicine bottle,
watch the world as a coca cola would do, transport you into a washing machine and feel like your sock. Be a fish and be intrigued by a guy ironing underwater,
enter the head of Hermann's sculpture, chat with Jonathan livingston, experience a bubble party, feel the thrill of extreme canyoning, and much more ...
A dash of the old, a dash of the new - that's the theme of this year's Top 100 Wines.The Chronicle Wine section tastes wine from all over the world, but our Top 100 Wines are a showcase for the most compelling winemaking on the West Coast. We tasted thousands of wines this past year from California, Washington and Oregon. We recommended hundreds. You may recognize some of the lucky 100 from our weekly Wine Selections, but instead of simply choosing the best of what our panels tasted, we sought out a balance between quality, price and innovation - particularly innovation. So while many of our top contenders are familiar names, this year we also kept an eye out for new faces, new locales and new types of wine.
Consider, for example, the Pinot Noir made by Stewart Johnson of Kendric Vineyards in San Anselmo. A few years ago, uttering "Marin County Pinot Noir" would have prompted the same stare as "San Francisco suntan." Now Marin has proven its potential as a wine region. (No such luck on the San Francisco suntan part.)
I've manually moved snow for the past 14 years - my entire post UW time in Madison. Always thinking that the act was a bit of exercise until a neighbor mentioned his back difficulties and said "it's not worth it".
Last spring's deluge, a particularly wet and heavy snowstorm, was the impetus to turn over the shovel, fire up my browser and shop for a snowblower.
My first stop was Ariens' website. Ariens is a classic family owned Wisconsin based firm that manufactures snowblowers and lawn mowers.
Most serious snowblowers, defined as two stage models from the likes of Ariens, John Deere, Honda and Toro among many others are at least 24" wide (Toro has a 22" model). That width is a problem for small garages like mine.
Ariens offered a useful 20" model that featured a multiple speed transmission - perfect for a variety of snow conditions and available at a reasonable price. Conveniently, their website offers online ordering which made it simple for me to enter a bit of information and a few days later the snowblower arrived at my home. Ariens customer service was great, as was their local dealer - Middleton Power Center.
About the snowblower zeitgeist. The owner of a working, somewhat powerful snowblower on a day like today (crunchy, heavy snow) quickly has the opportunity to converse with the neighbors. Typical conversations include:
I would be remiss if I did not point out the powerful prose at work marketing such machines. Arien's description of their model 624E:
624E CompactAfter 9 months of hibernation, this compact monster, has an appetite for the cold and crystallized.
When the white and fluffy flakes begin to fall; the corners of the 24” clearing width begin to salivate. The 120 volt electric start quickly awakens the 6HP Snow King® OHV Engine. You fear nothing! Snow fears this trusted Sno-Thro® midsized monster. Keep the snow afraid and out of your way.
THE 1946 MOVIE IT'S A WONDERFUL LIFE has become a holiday favorite for many Americans. The heart-rending story of George Bailey (played by Jimmy Stewart), who in his hour of despair is vouchsafed a glimpse of what the world would be like if he'd never been born, holds great meaning for many Americans. So does the drama played out between George and his father, Peter, and their professional nemesis, rich old banker Henry Potter (Lionel Barrymore), which provides a vivid look at the dramatic changes that had taken place in American finance in the years leading up to the time the movie was made.The recent problems in the mortgage market bring the story and its characters to life once again. The Baileys and Old Man Potter disagreed about a number of things, but principally about the credit-worthiness of what Potter calls "the riff-raff," the average citizens in their home town of Bedford Falls. The Baileys believe they are credit-worthy, and Potter generally does not.
Potter remembers the recent past, when lenders made the rules, insisting on repayment in gold coin or its equivalent, on big down payments and short terms. Most important for middle-class folks, Potter sees residential real estate as illiquid, mediocre collateral. George and Peter Bailey and their Building & Loan envision a future of suburban development, of small down payments and decades to pay. When George looks at the world had he never been born -- and sees a vacant field instead of the Bailey Park housing development financed by the Bailey Building & Loan -- he is looking at what would have been Pottersville.
