Escaping the latest of a string of steaming hot summer days, I duck gratefully into the cool interior of Tosca, an Italian restaurant in the lobbyist quarter of Washington DC. From the pavement it is not prepossessing, curtains entirely screening off the interior and presenting a blank face to the world. But the busy, clubby interior hums with power. Situated conveniently between Capitol Hill and the White House, and in the neighbourhood of some of Washington’s most powerful political consultancies, it has a reputation as a location for political deals and power-broking at the highest levels. It was here, legend has it, that Tom Daschle spent a five-hour dinner persuading Barack Obama to run for the US presidency. It is very DC.
By taking a loss on the first several years of Prius production, Toyota was able to hold its price steady, and then sell the gas-sippers in huge numbers when oil prices soared. Today a Prius costs roughly the same in inflation-adjusted dollars as those 1997 models did, and it has become the best-selling Toyota in the United States after the evergreen Camry and Corolla.
Instead of following Toyota’s model, G.M. decided to make the Volt more affordable by offering a $350-a-month lease over 36 months. But that offer allows only 12,000 miles per year, or about 33 miles per day. Assuming you charged your Volt every evening, giving you 40 miles of battery power, and wanted to keep below the mileage limit, you would rarely use its expensive range-extending gas engine. No wonder the Volt’s main competition, the Nissan Leaf, forgoes the additional combustion engine — and ends up costing $8,000 less as a result.
In the industry, some suspect that G.M. and the Obama administration decided against selling the Volt at a loss because they want the company to appear profitable before its long-awaited initial stock offering, which is likely to take place next month. For taxpayers, that approach might have made sense if the government planned on selling its entire 61 percent stake in G.M. But the administration has said it will sell only enough equity in the public offering to relinquish its controlling stake in G.M. Thus the government will remain exposed to the company’s (and the Volt’s) long-term fate.
A colleague over at Democracy in America (DiA), The Economist's blog about American politics, has written a very interesting post on the nature of online commenters. While the formality of composing a letter to the editor continues to generate considered and often polite prose by even the most aggrieved readers, the immediacy and anonymity of online commenting seems to encourage a tendency to insult and attack. "Faceless communication leads to disinhibition, whether it's online, in a car or on the phone with a customer-service representative... Psychologists even have a name for the online phenomenon: 'online disinhibition effect'."
Publishers keen on a solution to nasty commenters will follow what happens at the Buffalo News. The paper has just proposed requiring readers to supply accurate identification if they want to weigh in, which is promising. (As one of the 65 commenters on the DiA post wrote, "I used to think anonymity was a good thing... However, over time my view has changed to the opposite. For every unique voice, there are thousands of mindless, thuggish screams.")
Modern medicine is good at staving off death with aggressive interventions—and bad at knowing when to focus, instead, on improving the days that terminal patients have left.
Sara Thomas Monopoli was pregnant with her first child when her doctors learned that she was going to die. It started with a cough and a pain in her back. Then a chest X-ray showed that her left lung had collapsed, and her chest was filled with fluid. A sample of the fluid was drawn off with a long needle and sent for testing. Instead of an infection, as everyone had expected, it was lung cancer, and it had already spread to the lining of her chest. Her pregnancy was thirty-nine weeks along, and the obstetrician who had ordered the test broke the news to her as she sat with her husband and her parents. The obstetrician didn’t get into the prognosis—she would bring in an oncologist for that—but Sara was stunned. Her mother, who had lost her best friend to lung cancer, began crying.
The doctors wanted to start treatment right away, and that meant inducing labor to get the baby out. For the moment, though, Sara and her husband, Rich, sat by themselves on a quiet terrace off the labor floor. It was a warm Monday in June, 2007. She took Rich’s hands, and they tried to absorb what they had heard. Monopoli was thirty-four. She had never smoked, or lived with anyone who had. She exercised. She ate well. The diagnosis was bewildering. “This is going to be O.K.,” Rich told her. “We’re going to work through this. It’s going to be hard, yes. But we’ll figure it out. We can find the right treatment.” For the moment, though, they had a baby to think about.
A brief clip from Jeff Mayer's introductory Q & A with Senate Candidate Ron Johnson. from Jim Zellmer on Vimeo.
Johnson faces Dave Westlake in the September Republican primary. The winner will take on 18 year incumbent Democrat Senator Russ Feingold.
In my humble opinion, should the November election turn on economic issues, the Republicans will win (Feingold's 30 years in the political world is a liability in this scenario). On the other hand, should the election turn on debates, Russ will be tough to beat.
I hope we have a serious competitor to Herb Kohl.....
Your neuro-oncologist, after scanning your most recent MRI, puts her arms around you, and gives you a solemn hug, which was the case with me this past Wednesday. Not that we didn’t guess that something was up – we haven’t been feeling particularly great lately, and we had some weirdness the previous Thursday, falling twice, inexplicably, in a short period. Friday morning our left leg was numb from the knee down and we had a minor, local motor seizure.God be with Chris and his family.Anyway, the MRI reveals 3 new tumors that weren’t in my brain 12 weeks ago. In my understanding of Glioma, this represents a not-untypical course for the end stage of this almost invariably fatal disease. Prognosis at this point? A few months, at best.
This summer is fast turning into a bittersweet swan song for David Obey, the veteran Democratic House member from Wisconsin.The mercurial chairman of the House Appropriations Committee and stalwart champion of liberal economic and social policy is set to retire after more than 40 momentous years in Congress. But instead of celebrating, Obey is locked in a bruising and highly personal budget battle – not with his Republican adversaries, but with Democratic President Obama and a prominent cabinet member.
In the greater scheme of things, the spending controversy is “small potatoes,” a “lousy little fight” over an asterisk in a multitrillion-dollar annual budget, as Obey describes it. At issue is whether to trim $500 million from Obama’s signature “Race to the Top” education initiative to help avert the threatened layoff of 140, 000 school teachers across the country. Obey believes the proposed trim of about 15 percent of funding for future programs is a small price for the administration to pay to keep teachers on the job now, amid a stubborn recession. But Obama and Education Secretary Arne Duncan are treating it as a potentially devastating assault on their new education program, and have threatened a veto.
I learned long ago the cruel but true principle: other people's travel problems are not interesting.* Corollaries: other people's traffic problems, and other people's weather ("you won't believe how hot/cold/dry/wet/windy it is here!"), also are not interesting. We feign sympathy, but as long as our own flight is on time, traffic on our highway moves along, the weather's nice where we are, we don't really care. (*Exception: unless the occasion for an otherwise-interesting travel narrative, from Paul Theroux to Atlantic site posts.)Airlines have been very successful at using information technology to slice and dice pricing and demand. Overall, fares are certainly up for most travellers....
Therefore I obviously am not "complaining" in mentioning that I got up before 5:30am today to get an 8:15am flight out of Dulles, only to find an email from the airline saying that the flight had been delayed to 10:45. The inbound flight -- from Dubai! -- is late, and there are no spare planes to go on to San Francisco. OK -- gladder to know now than before leaving the house for the airport, though ideally it would have great to know last night. Nothing to be done. But it was a serendipitous intro to the very next item in the email inbox: a report on how substantially airline capacity continues to be cut. There just are fewer flights anywhere, and more of them are full, than in yesteryear.
The winter of 1979 in southern California reminded people why they had migrated to LA over the decades. The daytime temperatures were in the mid-70s, and the LA basin's summer smog had disappeared, revealing the snowcapped San Gabriel Mountains.
At Neonex Leisure that day, we were brainstorming the recreational vehicle of the future. At the time we built America's largest RV, the Arctic Sun, a combination van/pickup truck pulling a 55-foot-long 5th-wheel trailer. Now Neonex Canada had put our California division in charge of designing the company's next Class A Motorhome.
Each of the other five U.S. managers gave their impressions of the future of the recreational vehicle, disclosing visions of startling grandeur. I was more flippant: "I bet it's a Honda with a Coleman tent." Three months later the Second Energy Crisis hit. We shut down our RV plant in two days flat, and I was back in Texas in five.
My point is that, if you had asked every energy or automotive issues guru what the future would hold for automobiles just before the winter of 1978 - 79, the answer would have been completely different if you'd asked them the same thing just 12 months later. That's what an energy crisis can do.
My joke about a Honda with a Coleman tent was weirdly prophetic. But my fellow managers' visions of million-dollar motorhomes would also turn out to be spot on -- 20 years later.
My new article, Insider Trading Inside the Beltway, has been posted to SSRN. Now it just needs to find a nice law review home somewhere in the top 50.
Abstract: A 2004 study of the results of stock trading by United States Senators during the 1990s found that that Senators on average beat the market by 12% a year. In sharp contrast, U.S. households on average underperformed the market by 1.4% a year and even corporate insiders on average beat the market by only about 6% a year during that period. A reasonable inference is that some Senators had access to – and were using – material nonpublic information about the companies in whose stock they trade.
Under current law, it is unlikely that Members of Congress can be held liable for insider trading. The proposed Stop Trading on Congressional Knowledge Act addresses that problem by instructing the Securities and Exchange Commission to adopt rules intended to prohibit such trading.
In a rare extended interview, we speak to Michael Hastings, whose article in Rolling Stone magazine led to the firing of General Stanley McChrystal. Hastings’ piece quoted McChrystal and his aides making disparaging remarks about top administration officials, and exposed long-standing disagreements between civilian and military officials over the conduct of the war. The Senate confirmed General David Petraues as McChrystal’s replacement on Wednesday, one day after McChrystal announced his retirement from the military on Tuesday after a 34-year career.
Screaming down the home straight of Ferrari’s test track at 200kmph an hour in a classic red 458 Italia, I suddenly don’t feel like lunch. The Fiorano track near Bologna in central Italy is, at 3km, not long. But, partly in an attempt to impress the test driver next to me with some fast cornering, I feel as if I have left part of my stomach on one of its hairpin bends. Matters fail to improve as, in heavy fog untypical of early summer, I take the car off the track and, rather more slowly, on to the winding roads of the Apennines, heading for Ferrari HQ in nearby Maranello.Clusty Search: Luca Cordero di Montezemolo
I am still spinning slightly when we pull into the car park just before the company’s elegant and aristocratic chairman, Luca Cordero di Montezemolo, who somewhat incongruously arrives in a small Fiat. He explains that his journey from Rome has been a nightmare as fog diverted his helicopter and forced him to take trains and cars – hence the Fiat. Nevertheless he appears in characteristically enthusiastic mood. “I’ve just been to a conference at the Vatican [on the financial crisis]. Fantastic,” he explains. “Fantastic” is a word Montezemolo uses a lot. Ferrari is “fantastic”, Italian food is “fantastic”, his new high-speed train company, NTV, is “fantastic”, as is the 458 Italia I have been driving.
On my way out he hands me a white postcard. “This is what I give to all new employees at Ferrari,” he says. Looking at it in a Ferrari 599 on the way back to Milan, it looks to me like the perfect credo for Montezemolo. It starts: “The real secret of success is enthusiasm. You can do anything if you have enthusiasm ... With it there is accomplishment. Without it there are only alibis.”
