Read a book with your laptop thrumming. It can feel like trying to read in the middle of a party where everyone is shoutingIn the 20th century, all the nightmare-novels of the future imagined that books would be burnt. In the 21st century, our dystopias imagine a world where books are forgotten. To pluck just one, Gary Steynghart's novel Super Sad True Love Story describes a world where everybody is obsessed with their electronic Apparat - an even more omnivorous i-Phone with a flickering stream of shopping and reality shows and porn - and have somehow come to believe that the few remaining unread paper books let off a rank smell. The book on the book, it suggests, is closing.
I have been thinking about this because I recently moved flat, which for me meant boxing and heaving several Everests of books, accumulated obsessively since I was a kid. Ask me to throw away a book, and I begin shaking like Meryl Streep in Sophie's Choice and insist that I just couldn't bear to part company with it, no matter how unlikely it is I will ever read (say) a 1,000-page biography of little-known Portuguese dictator Antonio Salazar. As I stacked my books high, and watched my friends get buried in landslides of novels or avalanches of polemics, it struck me that this scene might be incomprehensible a generation from now. Yes, a few specialists still haul their vinyl collections from house to house, but the rest of us have migrated happily to MP3s, and regard such people as slightly odd. Does it matter? What was really lost?
The taxi driver to Beirut airport tells me that yom al-qiyama (the day of judgment) is approaching. There will be a big explosion soon -- a very big explosion. The revolutions sweeping the Arab World are not good. Islamic parties will come to power everywhere. There will be no more Christians left in the Middle East. Believe me, believe me, he insists. In anticipation, he will make the Hajj to Mecca this year, inshallah. I tell him that I am traveling to Iraq as a tourist. The look he gives me in the rear view mirror says it all: He thinks I am crazy.I am heading back to Iraq nine months after I left my job as Political Advisor to the Commanding General of U.S. Forces Iraq. Earlier this year, a Sheikh emailed me from his iPad, "Miss Emma we miss you. You must come visit us as a guest. You will stay with me. And you will have no power!" I am excited and nervous. The plane is about a third full. I am the only foreigner. I look around at my fellow passengers. I wonder who they are and whether they bear a grudge for something we might have done.
The flight is one and a half hours long. I read and doze. As we approach Iraq, I look out of the window. The sky is full of sand and visibility is poor. But I can make out the Euphrates below. Land of the two rivers, I am coming back.
I do not have an Iraqi visa. Visas issued in Iraqi Embassies abroad are not recognized by Baghdad airport. I have a letter from an Iraqi General in the Ministry of Interior, complete with a signature and stamp. In the airport, I present my passport and letter, fill out a form, pay $80, and receive a visa within 15 minutes. I collect my bag. I am through. I want to reach down and touch the ground, this land that has soaked up so much blood over the years -- ours and theirs.
Doctors treating the poor in the US are braced for significant reductions to their services amid increased pressure from both the Obama administration and Republicans for deep cuts in health spending.Twenty-nine Republican governors have called for greater flexibility in how states administer Medicaid programmes for the poor, a move which coincides with the Obama administration's withdrawal of stimulus funds used to pay for treatment.
Nearly 49m people in the US, or one in six Americans, were covered by Medicaid in 2009. The figure is thought to be higher today.
The federal government increased its subsidies to the states under the stimulus programme, spending $2.68 for every dollar a state spent on Medicaid, nearly twice as much as before the stimulus.
My Cool Campervan. By Jane Field-Lewis and Chris Haddon with photography by Tina Hiller. Pavilion; 160 pages; £14.99.THE classic VW camper van is a venerable vehicle on which rides--usually rather slowly--a carefree image of life on the open road. They can often be found in the narrow British lanes leading to the surfing beaches in Cornwall in the summertime. But as old ones in good nick can cost £20,000 ($33,000) or more, many of their owners are more likely to be trying to recapture their lost youth than hanging ten.
There are many variations of the VW camper van, not least because until 2005 Volkswagen never made a camper itself, but produced vans for transporting people and goods which others converted with the addition of caravan-style living accommodation. And it was not just VWs which received such attention, as "My Cool Campervan" shows in a collection of photo essays.
All historians encounter them, at some point in their careers: Vast troves of data that are undeniably useful to history--but too complex to make narratively interesting. For Stanford's Richard White, an American historian, these were railroad freight tables. The reams of paper held a story about America, he knew. It just seemed impossible to tell it.Impossible to tell in a traditional way, that is. White is the director of the Stanford University Spatial History Project, an interdisciplinary lab at the university that produces "creative visual analysis to further research in the field of history." (The images in this post are taken from the project's many visualizations.) Recent announcements on the project site announce "source data now available" (openness is one of the project's tenets) on such topics as "Mapping Rio," "Land Speculation in Fresno County: 1860-1891," and "When the Loss of a Finger is Considered a 'Minor' Injury."
Michael Galpert rolls over in bed in his New York apartment, the alarm clock still chiming. The 28-year-old internet entrepreneur slips off the headband that's been recording his brainwaves all night and studies the bar graph of his deep sleep, light sleep and REM. He strides to the bathroom and steps on his digital scale, the one that shoots his weight and body mass to an online data file. Before he eats his scrambled egg whites with spinach, he takes a picture of his plate with his mobile phone, which then logs the calories. He sets his mileage tracker before he hops on his bike and rides to the office, where a different set of data spreadsheets awaits."Running a start-up, I'm always looking at numbers, always tracking how business is going," he says. Page views, clicks and downloads, he tallies it all. "That's under-the-hood information that you can only garner from analysing different data points. So I started doing that with myself."
His weight, exercise habits, caloric intake, sleep patterns - they're all quantified and graphed like a quarterly revenue statement. And just as a business trims costs when profits dip, Galpert makes decisions about his day based on his personal analytics: too many calories coming from carbs? Say no to rice and bread at lunchtime. Not enough REM sleep? Reschedule that important business meeting for tomorrow.
The founder of his own online company, Galpert is one of a growing number of "self-quantifiers". Moving in the technology circles of New York and Silicon Valley, engineers and entrepreneurs have begun applying a tenet of the computer business to their personal health: "One cannot change or control that which one cannot measure."
If there is one most frightening thing that war always exposes, even if one is on the winning side, it's weakness in the supply logistics. While most never consider it, official policy often changes during a war because supplies that are critical to the war effort seem in danger of being disrupted. Such jeopardy, moreover, forces the accountants, economists and politicians waging the conflict to start thinking about how the world will be changed once the fighting has ended.Few today appreciate the fact that our foreign policy, particularly as it is tied to the Middle East, came about because of just such concerns in the first years of the Second World War. As one might expect, that official policy was based on real fears that America would one day run out of oil.
"The European War"
It was the summer of 1941 and the State Department had requested that the White House include Saudi Arabia in our Lend Lease program. It wasn't because the Saudis were going to become a direct ally against the European Axis Powers, but because we were about to embargo U.S. oil shipments to Japan. Many believed - correctly, as it turned out - that this would probably lead to hostilities with Japan that would draw us into the war.Standard Oil of California, which had been drilling for oil in Bahrain for over a decade, now had oil concessions granted by King ibn Saudi. The first six wells Standard drilled into the Arabian desert were nothing to write home about, but when Well No. 7 came in on March 4, 1938, the engineers and wildcatters all knew that Saudi Arabia was going to be an oil bonanza.
Yet on July 18, 1941, Roosevelt refused the request for Lend Lease for Saudi Arabia. He saw no immediate benefit to diverting U.S. dollars overseas simply because Standard had oil concessions there. In any case, the outbreak of the European War in 1939 had reduced oil production in the Kingdom to an insignificant volume -- a trickle, considering that American oil amounted to 60 percent of the world's crude at the time. Instead Roosevelt asked Federal Loan Administrator Jesse Jones to look into the possibility of having England deal with the Saudi King's pressing needs.
There are those who believe that technology has hijacked the whole of the visitable earth, snatched it away, miniaturised and simplified it, making travel so accessible on a flickering computer screen that there is no need to go anywhere except to your room. In a related way, the travel book is believed to have been not just diminished but made irrelevant by the same technology. Since we know everything - the information is easily dialled up - and the world has been so thoroughly winnowed by travellers, what is the use of a travel book? Where on earth would you go to remark each anxious toil, each eager strife, or watch the busy scenes of crowded life? Surely it has all been written.This isn't a new conjecture. In 1972, in a blasé magazine piece of postmodernism, entitled "Project for a Trip to China", the American writer Susan Sontag sat in her New York apartment ruminating on China. Sontag was that singular pedant, a theorist of travel rather than a traveller. She concluded her piece: "Perhaps I will write the book about my trip to China before I go."
To such complacent and lazy minds, here is a suggestion. Try Mecca. After prudently having himself circumcised, learning to speak fluent Arabic, dressing as an Afghan dervish and calling himself Mirza Abdullah, the British explorer Sir Richard Burton travelled to the holy city of Mecca, a deeply curious unbeliever among devout pilgrims. This was in 1853. He published his account of this trip in three volumes several years later, his Personal Narrative of a Pilgrimage to Al-Madinah and Meccah. The last non-Muslim to do this and to write about it was Arthur John Wavell, of the distinguished British military family. An army veteran, and farmer in Mombasa, Kenya, Wavell developed an interest in Islam. In order to know more, he disguised himself as a Swahili-speaking Zanzibari, made the pilgrimage and wrote about it in A Modern Pilgrim in Mecca (1912). Wavell took the trip in the winter of 1908-1909, more than a century ago. No unbeliever has done it since. Now there's a challenge for a technology-smug couch potato who prates that the travel book is over. Of course, this daring trip is not easy. It is, perhaps, not a journey for a gap-year student wishing to make his or her mark as a travel writer but it is a book I would want to read.
The lowest point of the US occupation of Iraq was about five years ago. American forces had no effective strategy in the face of a street-level civil war and a particularly vicious insurgent group, al-Qaeda in Iraq. At Haditha, frightened and frustrated marines had killed 24 civilians. At Samarra, the Golden Dome mosque had been destroyed - a potent symbol of conflict between Shia and Sunni Muslims. Donald Rumsfeld, then defence secretary, appeared to be in an advanced state of denial, breezily waving away good advice, and in a notorious press conference shortly after the atrocity at Haditha, refusing to use the word "insurgent", or to let the chairman of the Joint Chiefs of Staff use it either. The US strategy was failing and its leadership was determined not to change direction. It was a case study in organisational dysfunction.Yet by 2008, the situation in Iraq had improved radically. Al-Qaeda in Iraq was in retreat, and the number of attacks, American and Iraqi deaths had fallen dramatically. Although the success remains fragile and there were other factors involved, a complete transformation of US military strategy deserves much credit.
How did it happen and what are the lessons for other organisations that need to turn around? The easy answer is that the solution was a change of leadership. Thanks to behind-the-scenes campaigning and a drubbing in the midterm elections for President George W. Bush, Mr Rumsfeld was replaced, and General David Petraeus was put in charge of the war in Iraq.
Not so much, though, as to get in the way of treating China as an indispensable element in any stabilisation of perilous situations in Korea and Afghanistan. Without China's active participation, any attempts to immunise Afghanistan against terrorism would be futile. This may be a tall order, since the Russians and the Chinese are getting a "free ride" on US engagement, which contains the jihadism which in central Asia and Xinjiang threatens their own security. So was it, in retrospect, a good idea for Barack Obama to have announced that this coming July will see the beginning of a military drawdown? The question triggers a Vietnam flashback. "I know from personal experience that once you start a drawdown, the road from there is inexorable. I never found an answer when Le Duc Tho was taunting me in the negotiations that if you could not handle Vietnam with half-a-million people, what makes you think you can end it with progressively fewer? We found ourselves in a position where to maintain ... a free choice for the population in South Vietnam ... we had to keep withdrawing troops, thereby reducing the incentive for the very negotiations in which I was engaged. We will find the same challenge in Afghanistan. I wrote a memorandum to Nixon which said that in the beginning of the withdrawal it will be like salted peanuts; the more you eat, the more you want."
Source: Grant's Interest Rate Observer, 5/20/2011 edition. Worth considering for financial & risk planning.
Related: Britannica: Central Banks and currency.
Basell III details: Clusty.com and Blekko.
Anyone who moves around in burgercentric circles knows of the battle that's been brewing for the last few years between the three major heavyweights of the high-quality fast-food burger* world. Of the three, In-N-Out Burger, founded in Baldwin Park, California, in 1948 has the longest history and certainly the most cult-like and devout following. On the other hand, Virginia's Five Guys--which has been around since 1986--has seen crazy expansion in the last few years, now boasting over 750 locations on both coast and a rabid following that is fast catching up on In-N-Out's heels. The underdog in the fight is New York's Shake Shack. Only seven years old, it's still a baby in the field, but if we're to believe the news, they're poised to expand, and in a big way (they just opened their latest location in Washington, D.C. yesterday).
But who really makes the best burger? It's a question that's debated far and wide on the internet and beyond, so we here at A Hamburger Today decided to take it upon ourselves to find the answer and declare an official King of the High Quality Fast Food Burger.
FEW photographers find themselves grasping Mahmoud Ahmadinejad by the hand, facing down Robert Mugabe or eliciting a grin from Binyamin Netanyahu--all within a 72-hour period, no less. Platon, a London-raised and New York-based photographer, is the keen eye behind "Power: Portraits of World Leaders" (Chronicle Books), a book of 150 photographs of world leaders, all of them taken at the United Nations.This collection is full of surprises and affirmations alike: Hugo Chávez has all the penetrability of an Easter Island statue; Victor Yushchenko could be a friendly school principal; and Muammar Qaddafi is a villain straight out of "Star Wars". Securing the portraits required tenacity, quick reflexes and the wiles of a fixer. More Intelligent Life spoke with Platon, a staff photographer at the New Yorker, about his adventures in assembling his portraits.
Every generation seems to produce some high-profile individual who mourns to the masses that there was once a simpler and better time in America. You know the drill: People knew their neighbors, morality reigned and most everyone knew right from wrong. These elegies always end with the premise that somehow we as a nation have lost our way. Of course the simpler times that everyone seems to think we've gotten away from are nothing more than our childhood memories. As children, we perceived and remembered everything far more simplistically - without the freight of context surrounding situations we encounter as adults.Still, it's those wistful thoughts of innocent bygone days that drive the automotive styling designs we know today as retro-cars. The BMW-designed and British-built Mini is a perfect example. This modern automobile seems made to bring back fond memories of the British Invasion and the Swinging 60s. It seems to exemplify the days when Carnaby Street, the Stones, Donovan, the Beatles, Twiggy, white plastic go-go boots and all other things British were new and groovy.
Of course the original Mini was far more and much less than that. Introduced in 1959, the Mini was the British Motor Corporation's answer to the long and successful sales career of the Volkswagen Beetle.
What is less well remembered is that the Mini's creation in the late 50s was a direct response to a major oil crisis for the Brits. What caused it? England's foolish war against Egypt's Gamal Nasser, in which England tried and failed to regain control of the Suez Canal.
Delicious and $6.00. The bowl contained, from the bottom up: lettuce, cucumbers, rice noodles, carrots, nuts and grilled shrimp.
Vancouver is Hollywood's urban body double. It is famously the stand-in for New York, LA, Seattle and Chicago, employed when those cities just get too tough, too traffic-clogged, too murderous or too bureaucratic to film in. It is almost never filmed as itself. That is because, lovely as it is, it is also, well ... a little dull. Who would want to watch a film set in Vancouver? To see its skyscrapers destroyed by aliens or tidal waves, its streets populated by cops and junkies, its public buildings hosting romantic reunions? Yet Vancouver (original name, Gastown) has also spent more than a decade at the very top of the charts of the best city to live in the world. Can that really be right?No. Not at all. In fact, Vancouver's boringly consistent topping of the polls underlines the fundamental fault that lies at the heart of the idea of measuring cities by their "liveability". The most recent surveys, from Monocle magazine, Forbes, Mercer and The Economist, concur: Vancouver, Vienna, Zurich, Geneva, Copenhagen and Munich dominate the top. What, you might ask, no New York? No London? No LA or HK? None of the cities that people seem to actually want to emigrate to, to set up businesses in? To be in? None of the wealthiest, flashiest, fastest or most beautiful cities? Nope. Americans in particular seem to get wound up by the lack of US cities in the top tier. The one that does make it is Pittsburgh. Which winds them up even more.
The big cities it seems, the established megacities of the US, Europe and Asia are just too big, too dangerous, too inefficient. So what do these top cities have in common? How exactly do you measure "liveability"?
All the surveys use an index. But what is on it? "There's always proximity to nature," says Tyler Brûlé (editor of Monocle and patron saint of liveable cities and airport lounges, whose column appears weekly in the FT's Life & Arts section). "Global connectivity is important, education and we've recently added chain store metrics - is there a Starbucks or a Zara?" he says.
Despite awaiting extradition to Sweden on sexual assault charges, Wikileaks founder Julian Assange is still the subject of much media interest.Russia Today (RT) interviewed Assange, getting his viewpoint on political unrest in Egypt and Libya, particularly probing what the Wikileaks founder makes of social media's roles in the recent revolutions in both countries. In his interview, Assange focuses particularly on Facebook calling it the "most appalling spy machine that has ever been invented".
Until this week, only one topic was off-limits for questions to Warren Buffett at Saturday's annual gathering of Berkshire Hathaway shareholders in Omaha: how serious is the Dave Sokol affair?On Wednesday, however, the company issued an 18-page report from its audit committee about the former star executive's trading in shares in Lubrizol, a chemicals group later bought by Berkshire, and declared open season for all questions to Mr Buffett.
Here are my seven:
1. How serious is the Dave Sokol affair?
You are the world's most famous long-term investor. Recently, Berkshire's shares have lagged behind the S&P 500, but your record of outperformance over more than four decades speaks for itself. Even big, conservative bets, such as the 2009 investment in Burlington Northern Santa Fe railway, have been well timed. But Mr Sokol was a frontrunner to succeed you as chief executive. You lauded him regularly in your annual letter to shareholders. His abrupt resignation and the circumstances surrounding it seem to suggest that this is more than just a blip.
2. Do you love some of your managers too much?
Norio Ohga, who was instrumental in bringing the world the compact disc and the PlayStation and is credited with building Sony into a global electronics and entertainment group, has died of organ failure aged 81."It is no exaggeration to attribute Sony's evolution beyond audio and video products into music, movies and games, and subsequent transformation into a global entertainment leader to Ohga-san's foresight and vision," Howard Stringer, Sony's chairman and chief executive, said in a statement.
"By redefining Sony as a company encompassing both hardware and software, Ohga-san succeeded where other Japanese companies failed," Mr Stringer said.
A musician by training, who was a close friend of Austrian conductor, Herbert von Karayan, Mr Ohga led Sony during perhaps its most successful years, as president from 1982 until 1995, when the Japanese electronics maker became one of the most admired companies in the world.
It was under Mr Ohga that the name Sony came to symbolise Japanese manufacturing excellence and to define what was "cool" in the world of electronics - an image encapsulated in the catchphrase, "It's a Sony."
Tony Wheeler, co-founder of Lonely Planet, sits in the lobby of an austere five-star hotel here. Soft-spoken and down-to-earth, the 64-year-old wears a gray dress shirt with dark-blue trousers. He has trimmed gray hair and silver glasses, but his amiable face still hints of the youthful, long-haired traveler featured in photos from the 1970s.Mr. Wheeler doesn't need to stay in budget hostels anymore. When traveling to big cities, he checks into luxury hotels. And why not? He founded Lonely Planet travel guides with his wife, Maureen, nearly four decades ago. Since its launch in 1973, Lonely Planet has sold more than 100 million guidebooks to far-off lands, from Antarctica to Zambia and everywhere in between. And this past February the Wheelers sold their remaining 25% stake in the company to BBC Worldwide for £42.1 million (about $69.5 million) after selling 75% in 2007 to the same buyer for £88.1 million. The Wheelers don't have official roles in the company but will continue as de facto ambassadors for Lonely Planet.
Are you ashamed that you find Facebook boring? Are you angst-ridden by your weak social-networking skills? Do you look with envy on those whose friend-count dwarfs your own? Buck up, my friend. The traits you consider signs of failure may actually be marks of intellectual vigor, according to a new study appearing in the May issue of Computers in Human Behavior.The study, by Bu Zhong and Marie Hardin at Penn State and Tao Sun at the University of Vermont, is one of the first to examine the personalities of social networkers. The researchers looked in particular at connections between social-network use and the personality trait that psychologists refer to as "need for cognition," or NFC. NFC, as Professor Zhong explained in an email to me, "is a recognized indicator for deep or shallow thinking." People who like to challenge their minds have high NFC, while those who avoid deep thinking have low NFC. Whereas, according to the authors, "high NFC individuals possess an intrinsic motivation to think, having a natural motivation to seek knowledge," those with low NFC don't like to grapple with complexity and tend to content themselves with superficial assessments, particularly when faced with difficult intellectual challenges.
The researchers surveyed 436 college students during 2010. Each participant completed a standard psychological assessment measuring NFC as well as a questionnaire measuring social network use. (Given what we know about college students' social networking in 2010, it can be assumed that the bulk of the activity consisted of Facebook use.) The study revealed a significant negative correlation between social network site (SNS) activity and NFC scores. "The key finding," the authors write, "is that NFC played an important role in SNS use. Specifically, high NFC individuals tended to use SNS less often than low NFC people, suggesting that effortful thinking may be associated with less social networking among young people." Moreover, "high NFC participants were significantly less likely to add new friends to their SNS accounts than low or medium NFC individuals."
To put it in layman's terms, the study suggests that if you want to be a big success on Facebook, it helps to be a dullard.
Al Jazeera's aggressive expansion into cyberspace hopes to empower a new generation of newsmakers, impact the American news market, and capture the attention of young cable cutters.Fresh off the wild success of Internet-fueled Middle-East revolution stories, Al Jazeera English today is launching the online component to its forthcoming social media-centered news program, The Stream. It's the most aggressive integration of social media into a live news program to date. And Al Jazeera says it wants to capture a new generation of cable "cord cutters," push the limits of so-called "citizen journalism," and inch into American media territory.
A social storytelling service powers the editorially curated content, which is complimented by community commenting before, during, and after the anchored news show. It's scheduled to start airing May 2nd.
There is a lot more to taxes than simply paying the bill. Taxpayers must spend significantly more than $1 in order to provide $1 of income-tax revenue to the federal government.To start with, individuals and businesses must pay the government the $1 in revenue plus the costs of their own time spent filing and complying with the tax code; plus the tax collection costs of the IRS; plus the tax compliance outlays that individuals and businesses pay to help them file their taxes.
In a study published last week by the Laffer Center, my colleagues Wayne Winegarden, John Childs and I estimate that these costs alone are a staggering $431 billion annually. This is a cost markup of 30 cents on every dollar paid in taxes. And this is not even a complete accounting of the costs of tax complexity.
Like taxes themselves, tax-compliance costs change people's behavior. Taxpayers, whether individuals or businesses, respond to taxes and tax-compliance costs by changing the composition of their income, the location of their income, the timing of their income, and the volume of their income. So long as the cost of changing one's income is lower than the taxes saved, the taxpayer will engage in these types of tax-avoidance activities.
America has two national budgets, one official, one unofficial. The official budget is public record and hotly debated: Money comes in as taxes and goes out as jet fighters, DEA agents, wheat subsidies and Medicare, plus pensions and bennies for that great untamed socialist menace called a unionized public-sector workforce that Republicans are always complaining about. According to popular legend, we're broke and in so much debt that 40 years from now our granddaughters will still be hooking on weekends to pay the medical bills of this year's retirees from the IRS, the SEC and the Department of Energy.Why Isn't Wall Street in Jail?
Most Americans know about that budget. What they don't know is that there is another budget of roughly equal heft, traditionally maintained in complete secrecy. After the financial crash of 2008, it grew to monstrous dimensions, as the government attempted to unfreeze the credit markets by handing out trillions to banks and hedge funds. And thanks to a whole galaxy of obscure, acronym-laden bailout programs, it eventually rivaled the "official" budget in size -- a huge roaring river of cash flowing out of the Federal Reserve to destinations neither chosen by the president nor reviewed by Congress, but instead handed out by fiat by unelected Fed officials using a seemingly nonsensical and apparently unknowable methodology.
Now, following an act of Congress that has forced the Fed to open its books from the bailout era, this unofficial budget is for the first time becoming at least partially a matter of public record. Staffers in the Senate and the House, whose queries about Fed spending have been rebuffed for nearly a century, are now poring over 21,000 transactions and discovering a host of outrages and lunacies in the "other" budget. It is as though someone sat down and made a list of every individual on earth who actually did not need emergency financial assistance from the United States government, and then handed them the keys to the public treasure. The Fed sent billions in bailout aid to banks in places like Mexico, Bahrain and Bavaria, billions more to a spate of Japanese car companies, more than $2 trillion in loans each to Citigroup and Morgan Stanley, and billions more to a string of lesser millionaires and billionaires with Cayman Islands addresses. "Our jaws are literally dropping as we're reading this," says Warren Gunnels, an aide to Sen. Bernie Sanders of Vermont. "Every one of these transactions is outrageous."
just got back from a very interesting but hectic week in New York and Washington, followed by two days at a conference in Hangzhou. During my meetings I noticed that much of the discussion, and many of the questions I was asked by both government officials and investors, focused on debt levels and reforms in the Chinese financial system. I have written a lot about rising debt in China and am glad that analysts and policymakers seem to be spending a lot more time thinking about balance sheet issues. Every case of rapid, investment-driven growth in the past century, as far as I can make out, has at some point reached a stage in which debt levels rose to unsustainable levels and precipitated either a debt crisis or a long grinding adjustment period.The reason debt levels always seem to grow unsustainably, I suspect, is that in the initial stages of the growth model much if not all of the investment is economically viable as it pours into building necessary infrastructure whose profits and externalities exceed the cost of the investment. The result is real growth. At some point, however, the combination of subsidies, distorted incentives (in which investment benefits accrue to those making the investment while costs are shared broadly through the banking system), and very cheap financing costs leads inexorably to wasted investment and debt rising faster than asset values. This is when the debt burden begins to rise in an unsustainable way.
If we needed evidence that electronic dance music is a force in pop culture, last weekend's Ultra Music Festival held downtown here provided it. Some 150,000 tickets were sold to the three-day event--about equal to the total for last year's Coachella Music & Arts Festival in the desert town of Indio, Calif., and about twice the number for June's Bonnaroo Music & Arts Festival in Manchester, Tenn.Whereas Coachella 2011, next month, will feature Arcade Fire, Kanye West, Kings of Leon and the Strokes as its rock and pop headliners, and Bonnaroo will offer Eminem, Robert Plant & Band of Joy and a reunited Buffalo Springfield (as well as Arcade Fire and the Strokes), the biggest name at Ultra Music--at least to a mainstream audience--was Duran Duran, which was here to promote its new album. But traditional measurements for rock-and-pop success are irrelevant in the electronic-dance culture. Witness Tiësto, the stage name of the Dutch disc jockey, producer and composer Tijs Michiel Verwest, the headliner on Friday, Ultra's opening night. Though he's never had a crossover radio hit and his solo albums sell modestly, Tiësto is a major international star, as confirmed by one familiar evaluation: His annual income apparently exceeds $20 million.
In a glass box in the middle of a PepsiCo marketing department, five people are staring at a huge bank of screens showing a constantly updated river of tweets, "likes", praise and damnation from consumers of Gatorade, the company's sports drink."Doing it in a glass room means every single person in the marketing organisation is seeing the insights brought to life in real time. It reminds them how important it is to know the heartbeat of the consumer," says Bonin Bough, global director of digital and social media at PepsiCo. "I really feel like it is the future of marketing."
A similar scenario is playing out in marketing departments around the world. A survey of members of the World Federation of Advertisers, a grouping of multinational brands, by Millward Brown found that 96 per cent were spending more of their budgets managing Facebook pages, Twitter accounts and other social media, racing to accrue fans, retweets and that elusive but ubiquitous quality: engagement.
However, the research also found that few knew why they were doing it - half were "unsure" of the returns they were getting from their efforts, while more than a quarter found the payback was "just average or poor".
always thought that mapophilia was a lonely affliction until I started my blog, Strange Maps, in 2006. I remember the first map I posted - it was a map of the location of asylums for the insane in Pennsylvania. It provided a bizarre geography of insanity, and it interested me because it was not the kind of map that would have a place in mainstream cartography. Equally, the map didn't tell us much about mental health. I loved it because it was such an interesting juxtaposition of a condition that is so difficult to define with something as cool, rational and delineated as cartography.I'd find strange maps online - I don't draw my own - and then categorise them, describe them and link them to other maps. I have more obvious categories such as history, science and tech, and politics, as well as unusual ones: love, sex and happiness, life and death, truth and justice. One type is the allegorical map. In the 19th century, symbolic maps were very popular, especially during prohibition in America. Prohibitionists would draw moral maps. They'd describe the country of drunkenness and how to travel from it to the continent of sobriety. The road to success was drawn across chasms of despondency and mountains of procrastination.
Both Matt and myself have been covering the tragic events surrounding the Tsunami in Japan. I have left Japan now but Matt is still there and headed back into the disaster zone to do more reports. I'm sure both of us will talk more about what it was like later on, but for now the story is the priority.
Like everyone, I have been gripped and stirred by the events unfolding in the Maghreb and Middle East. Unlike some admirable and astute commentators, I didn't feel primarily moved to try to "make sense" of what was happening in Tahrir Square, or to speculate on what the millions of Egyptians not in the square were thinking. Such speculation seemed and still seems to me beside the point and actually rather odd. I didn't hear a comparable call at the time of the demise of Salazar and Franco and the Greek colonels, or the fall of communism and the dismantling of the Berlin Wall, to try to "make sense" of those events, or to wonder what all those not celebrating and tearing down chunks of concrete were up to.People, not everyone to be sure, but an overwhelming mass including the bravest and best and most articulate spirits, no longer wanted to live in police states or kleptocracies. They no longer wanted to be tortured or murdered by goons or spied on by spooks and kept under surveillance by their neighbours. They wanted free and transparent elections. They wanted the greater measure of control over their lives that they imagined to be a function of democratic government. No doubt they also wanted a better chance of prosperity. None of this, as we watched it unfolding in Tunisia and Egypt and Libya and other places, seemed to me to need to be teased out by some subtle process of reasoning. The primary sense of it was overwhelmingly clear.
At the end of June, the Federal Reserve will no longer be the biggest buyer of US Treasuries. But one notable investor has already said Hasta la vista.Pimco's flagship $237bn total return fund, managed by Bill Gross, whose status as bond king has been synonymous with the 25-year bull market in Treasury debt, pulled the plug on holding US government related securities in February, it emerged this week. Last month his fund eschewed holding US government related debt, having had 12 per cent of the fund's portfolio in Treasuries in January.
Given the record of Mr Gross, one cannot ignore the decision. Since the total return fund began in 1987, it has generated an average annual return of 8.42 per cent versus the 7.27 per cent gain in its benchmark, the Barclays Capital US Aggregate index.
The move is a bold one. Given that the Barclays Aggregate has a Treasury weighting of 40 per cent, the decision by Mr Gross to exclude government holdings means he is seriously underweight his benchmark, or "bogey".
James O'Keefe is either the sleaziest kind of journalist or the most respectable kind of con artist. His Project Veritas group uses lies, scams and hidden cameras to entrap his political adversaries. This week, Project Veritas released a video of its latest victim: Ron Schiller, a fundraising executive for National Public Radio. Mr Schiller and a colleague were lured to a Washington restaurant with promises of $5m in donations from the "Muslim Education Action Center". Meac, supposedly set up by the Muslim Brotherhood to "spread the acceptance of sharia", does not actually exist. It was an invention of Project Veritas. But Mr Schiller was voluble in assuring its leaders of his contempt for the kind of middle-class Americans who voted for the Tea Party last autumn. "They believe in white, middle America, gun-toting ... it's scary," he said. "They're seriously racist, racist people." Of course, they also happen to elect the congressional majority that controls the fate of $450m in public broadcasting funding. Mr Schiller has resigned from NPR, as has its chief executive, Vivian Schiller (no relation).Political pranksterism is all the rage. Sacha Baron Cohen practised a form of it in Borat and, more recently, the editor of the Buffalo Beast news website phoned Scott Walker, the embattled Wisconsin governor, passing himself off as the Republican donor David Koch.
When Daniel Carlat, a psychiatrist in Massachusetts, was flown to New York with his wife by Wyeth, the "training" weekend he attended in a luxury hotel was topped off with a Broadway show. It was early 2001 and he had just agreed to the US pharmaceuticals company's proposal that he give talks to doctors about its antidepressant Effexor.During the following year, he was regularly paid fees of $750 a time to drive to "lunch and learn" sessions where he would speak for 10 minutes to emphasise the drug's advantages to fellow doctors, using slides prepared by the company. "It seemed like a win-win," he recalls. "I was prescribing it, educating doctors and making some money."
But within a few months, he became disillusioned with his co-option as a marketing representative. He was selectively presenting clinical data that put the drug in a positive light to physicians who had been targeted by the company through "data mining" techniques that identified their individual prescription patterns.
Over drinks at a bar on a dreary, snowy night in Washington this past month, a former Senate investigator laughed as he polished off his beer."Everything's _______ up, and nobody goes to jail," he said. "That's your whole story right there. Hell, you don't even have to write the rest of it. Just write that."
I put down my notebook. "Just that?"
"That's right," he said, signaling to the waitress for the check. "Everything's ______ up, and nobody goes to jail. You can end the piece right there."
Nobody goes to jail. This is the mantra of the financial-crisis era, one that saw virtually every major bank and financial company on Wall Street embroiled in obscene criminal scandals that impoverished millions and collectively destroyed hundreds of billions, in fact, trillions of dollars of the world's wealth -- and nobody went to jail. Nobody, that is, except Bernie Madoff, a flamboyant and pathological celebrity con artist, whose victims happened to be other rich and famous people.
Panoramas and photos from Saturday's Pro-union & Tea Party rallies at the Capitol can be seen here.
Getting America off imported oil is always urged in the context of national security. No matter how often that refrain is repeated, however, it always points toward how much imported oil American motorists use.It's never about the amount of oil imported into the United States, refined into numerous products and shipped back out of the country. Nor are people arguing that we need to quit using imported oil for manufacturing concerns - like making fertilizers to grow corn, to make into ethanol to put into our gas, so we can quit importing oil. (That's the most comical circular argument currently making the rounds.) But we also use oil for things like asphalt for our roads, and in the plastics industry, and even the most ardent "get America off imported oil" advocates don't talk about constraining those industries.
In reality, the country from which we import the most oil is Canada. And I'm fairly certain that we aren't too worried about the national security aspect of bringing that oil into America, now or in the future. Yet we're still hearing the constant mantra that this is a national security issue, and that's what troubles me most. And, if you own one of the nation's 240 million vehicles, the "national insecurity of imported oil" refrain should trouble you, too.
Did the financial crisis change very much? That was my question as I went to the annual meeting of the World Economic Forum in Davos last week. The answer is: yes. Above all, it has accelerated the arrival of our future. Even for the winners, this is quite a shock.It is three and a half years since the financial crisis began and a little more than two years since it reached its worst. Bob Diamond, chief executive of Barclays, gave the financial sector's thanks to governments for the rescue. Now the mood is one of wary optimism. According to the International Monetary Fund's World Economic Outlook update, global output grew in 2010 by 5 per cent, at purchasing power parity, and 3.9 per cent, at market exchange rates. This contrasts with declines of 0.6 per cent and 2.1 per cent, respectively, in 2009. The IMF expects growth to slow only slightly to 4.4 per cent at PPP and 3.5 per cent at market exchange rates, in 2011. Optimism continues to reign.
With the crisis fading into memory, how will historians assess its legacy? Journalists do not have the luxury of distance. So here are my guesses. I will start with possible turnrounds.
The crisis was neither the beginning of a depression nor the end of capitalism. But it has caused a tightening of financial regulation, particularly of banks, though this has occurred within the pre-existing intellectual and institutional framework. After three decades of deregulation, movement is in the opposite direction, though not without resistance.
THE West has rightly marvelled at China's economic miracle. Less noticed is a minor miracle in its own midst. It is time to pay attention to Germany's new Wirtschaftswunder.Germany had a savage recession as manufacturing orders dried up, but its economy has since bounced back strongly, expanding by 3.6% last year, far faster than most other rich economies. For sure, this was partly a "bungee effect" after a particularly deep downturn, but it is no one-year wonder. By several measures, including keeping unemployment down (it is at its lowest since 1992) and the prosperity reflected in the growth of GDP per head, Germany was the star performer among the rich G7 countries over the past ten years (see article). Germans entered 2011 in their most optimistic mood since 2000, according to Allensbach's polls. Business confidence is at its highest since the Ifo institute began tracking it 20 years ago.
What's Germany's secret? It helps that the country did not experience a property or credit bubble, and that it has kept its public finances admirably under control. But above all Germany's success has been export-driven: unlike most other big rich economies it has maintained its share of world exports over the past decade, even as China has risen.
I STARTED the day on Tuesday by visiting Tata's steelworks in Jamshedpur. I found it awe-inspiring. The scale is mind-blowing: 2.5 hectares of industrial muscle. Even more mind-blowing is the steelmaking process itself: the giant cauldrons of molten steel, the huge trains shifting raw materials about, the fashioning of the molten steel into iron sheets. Three things struck me in particular. First, the relatively small number of people involved. Though based in a relatively poor company, this is a high-tech, high-skill, highly mechanised process. Second, the intelligence and enthusiasm of the people I talked to. These people love to talk about steel! And they love to recite war stories from their visits to other steel mills! (I apologise if I lost the plot every now and again). And third, the smoothness of the organisation. Every process seemed to be perfectly choreographed, and everybody seemed to know their role. Tata Steel has reduced its workforce from 78,000 in the mid-1990s to 35,000 today, while quadrupling the amount of steel it produces. We need a similar revolution in the public sector.
In the 1990s, attorney Gary Reback helped goad the Department of Justice into launching the landmark antitrust lawsuit against Microsoft Corp. by hauling willing witnesses and damning information before any government body that would listen.Reback, of Menlo Park law firm Carr & Ferrell LLP, is now waging a similarly relentless campaign against a technology giant of this era, Google Inc.
In an extensive interview with The Chronicle, he argued the Mountain View search company is engaging in a host of anti-competitive behaviors that are no less egregious than the earlier actions of Microsoft.
He also claims the Federal Trade Commission recently backed off an inquiry into certain of Google's practices at the behest of the DOJ. It's known to be conducting a separate investigation into, and possibly preparing to block, the company's proposed acquisition of travel data company ITA Software. (Read on for his take on what that means.)
Early in January 1939, the precocious German theologian Dietrich Bonhoeffer, age thirty-two, learned that all males in his age cohort had been ordered to register with the military. A dedicated opponent of the Nazi regime, he might have responded by declaring himself a conscientious objector, but there were two problems with such a course of action. The first was that Bonhoeffer, although pacifist by inclination, was not opposed to violence under all conditions; and he would later play an active role in the conspiracy led by German generals to assassinate Hitler. The second was that his fame in the Confessing Church (more on this below) might encourage other religious leaders critical of the regime to do the same, thereby bringing them under greater suspicion and undermining their efforts to prove that Nazi policies, and especially their rapidly intensifying Jew-hatred, were contrary to the teachings of Jesus Christ.The solution was provided by America's most illustrious theologian, Reinhold Niebuhr. Nine years earlier, Bonhoeffer had spent a year in the United States as a free-floating exchange student at Union Theological Seminary, arriving not long after Niebuhr had moved there from Detroit. He had made such a positive impression on Union's faculty that Niebuhr jumped at the opportunity to bring him back. If we fail to offer him a job, he told Union's president, Henry Sloane Coffin, Bonhoeffer will wind up in a concentration camp. This was not the stuff of run-of-the-mill letters of recommendation. Union extended the offer. Grateful to have a way out of his dilemma, Bonhoeffer booked passage, and in June 1939 found himself safe in America.
David Hockney may be pretty isolated here in Yorkshire, some four hours by train from London, but that's the way he likes it. Ensconced near the quiet rural landscape he's immortalized in paintings and watercolors, he has more time not only to draw but to experiment with new ways of making art."We think we're way ahead here," he confides. "We need this little remote place to be observant about the medium."
The art-making medium he's using most often these days is the iPad, brother to the iPhone, which he took up earlier. Whether he's lying in bed or driving through snow-covered woods, his ever-ready iPhone and iPad are instant drawing pads, always by his side. The electronic duo keeps him in touch with not only his craft but a small group of friends and colleagues who regularly receive his colorful missives of landscapes, flowers, cap or ashtray.
A few weeks ago I was sitting in my office, reading Foreign Policy magazine, when I made a striking discovery. Sitting next door to me, separated only by a narrow partition, is one of the world's leading thinkers. Every year, Foreign Policy lists the people it regards as the "Top 100 Global Thinkers". And there, at number 37, was Martin Wolf.I popped next door to congratulate my colleague. Under such circumstances, it is compulsory for any English person to make a self-deprecating remark and Martin did not fail me. The list of intellectuals from 2010, he suggested, looked pretty feeble compared with a similar list that could have been drawn up in the mid 19th century.
This was more than mere modesty. He has a point. Once you start the list-making exercise, it is difficult to avoid the impression that we are living in a trivial age.
The Foreign Policy list for 2010, it has to be said, is slightly odd since the magazine's top 10 thinkers are all more famous as doers. In joint first place come Bill Gates and Warren Buffett for their philanthropic efforts. Then come the likes of Barack Obama (at number three), Celso Amorim, the Brazilian foreign minister (sixth), and David Petraeus, the American general and also, apparently, the world's eighth most significant thinker. It is not until you get down to number 12 on the list that you find somebody who is more famous for thinking than doing - Nouriel Roubini, the economist.
In Palazzo Strozzi, a Renaissance palace overlooking Florence's Arno River, Ferruccio Ferragamo, scion of luxury shoe brand Salvatore Ferragamo, is explaining why his shoes are "Made in Italy".Mr Ferruccio's father, Salvatore, put handmade shoes on the feet of Marilyn Monroe and Sophia Loren, Lauren Bacall and Judy Garland. But his son is supposed to be living in different times, where rising Chinese and Indian manufacturing power has put Italians out of business.
When Mr Ferruccio meets the Financial Times in December, he has another problem on his mind. He is having to ask Ferragamo's workers, dotted in villages and factories around Florence, to keep working right up until Christmas day, almost a week longer than usual.
"We cannot make enough to keep up with the demand from the Chinese. They want their shoes not just made in Italy, but often made in Florence," he says.
A decade ago, many economists and industrialists, in Italy and outside, were convinced that the myriad small and medium-sized businesses that make up the backbone of the country's economy were in terminal decline. The Italians could not compete with rival manufacturing bases in Asia. Their productivity was too low and too costly. They did not have the infrastructure or heft to export their goods in the volumes necessary to ensure their survival.
Pinacoteca Giovanni e Marella Agnelli:
In a fascinating space designed by the architect Renzo Piano inside the historic industrial complex of the Lingotto in Turin, the Pinacoteca Giovanni e Marella Agnelli permanently houses 25 masterpieces from Giovanni and Marella Agnelli private collection.A stunning place, particularly the roof top race track on the old Fiat factory.Opened on September 20th, 2002, the gallery marks the final step in the twenty-year-long restructuring process of the whole Lingotto site.
The structure that today hosts the picture gallery of the Giovanni and Marella Agnelli Foundation in the "Scrigno" (literally, jewel box or treasure chest, an extraordinary container that dominates the roof-top test track), is the result of a long historical and architectural process of development that begins at the turn of the twentieth century. After this huge conversion process, the 90 years old building maintains the architectural power and freshness of the car factory designed by Giacomo Mattè Trucco, and wends its way effortlessly to the Lingotto designed by Renzo Piano.
View the full screen panorama here.
I'm here to tell you that America plunged its fingertips into the Middle Kingdom's body politic across the 1970s, beginning with Nixon going to China in 1972 and culminating with Jimmy Carter's normalization of relations in 1979. The first embrace allowed aged Mao Tse-tung to extinguish his nonstop internal purge known as the Cultural Revolution by firewalling his fears of Soviet antagonism. The second cemented China's wary-but-increasingly-warm relationship with the United States and allowed Deng Xiaoping, who narrowly survived Mao's insanities, to dismantle the dead emperor's dysfunctional socialist model, quietly burying Marx with the most revolutionary of eulogies -- to get rich is glorious!Deng chose wisely: Reversing Mikhail Gorbachev's subsequent logic, he focused on the economics while putting off the politics. This decision later earned him the sobriquet "the butcher of Tiananmen" when, in 1989, the political expectations of students quickly outpaced the Party's willingness for self-examination. But it likewise locked China onto a historical pathway from which it cannot escape, or what I call the five D's of the dragon's decline from world-beater to world-benefactor: demographics, decrepitude, dependency, defensiveness, and -- most disabling of all -- democratization.
Let us begin this journey right where Deng did, with a focus on the family.
350K PDF. My dusk Hardy photo appears on the cover of their annual report. It was a beautiful evening. Much more on the Hardy Gallery, here.
For sheer, toe-curling embarrassment, it's hard to choose between last year's populist attack on Goldman Sachs by the US Securities and Exchange Commission and this week's cringe-worthy response from the investment bank.Last April, when the SEC filed suit against Goldman, the bank could have fought back. The suit complained it had sold fancy mortgage securities without disclosing that a hedge-fund manager, John Paulson, was betting that those same securities would blow up. To which Goldman could have answered: so what? Any time an investment bank sells any derivative, it should be obvious to the buyer that somebody somewhere must be taking the other side. The SEC's assertion that Goldman had misled customers about the nature of Paulson's involvement was potentially more damaging, except that the SEC produced no evidence to make this charge stick.
It was surely not beyond the wit of Goldman's publicists to communicate these simple points. Banks cannot be held responsible for the profits or losses of their clients, since middle-men necessarily have customers who lose as others win. But after one vain attempt to explain market making at a belligerent Senate hearing, Goldman's boss, Lloyd Blankfein, gave up. He settled with the SEC, even though most lawyers think he could have beaten the charges. Then he ordered up an elaborate cleansing ritual to relaunch the firm of Goldman Sachs.
Several months later, the fruits of Goldman's sun salutations are out. A 67-page manifesto of self-purification proclaims that "our clients' interests always come first," and that "if we serve our clients, our own success will follow." But these pieties misrepresent the true nature of an investment bank just as surely as the SEC did.
Joy To the World from Jim Zellmer
Recorded Christmas Day, 2010 in Parma, Italy
Lodging recommendations & comments:
FOR wizened cyberpunks, it is a seemingly timeless debate: does the internet inherently promote openness and democracy, or can it just as easily strengthen the hand of authoritarian regimes? A decade ago Andrew Shapiro's book "The Control Revolution" argued the former, while Shanthi Kalathil's and Taylor Boas's tome "Open Networks, Closed Regimes" dissented. This week sees the publication of "The Net Delusion: The Dark Side of Internet Freedom" by Evgeny Morozov, which sides with the pessimists.The argument usually ends in a stalemate of competing anecdotes. Street protests organised by mobile text messages successfully oust Philippine President Joseph Estrada in 2001; Iran's supposedly Twitter-powered Green Movement gets quashed in 2009. And so on. Clay Shirky, one of the preeminent public intellectuals of the internet, who has previously sided with cyber-utopian optimists, has now elegantly squared the circle by establishing an intellectual framework to consider the topic in "The Political Power of Social Media", an article in the current Foreign Affairs. (Users must register to access the complete essay, but it is free.) Mr Shirky's essay makes three principal contributions to the debate.
Diapers.com warehouses are a bit of a jumble. Boxes of pacifiers sit above crates of onesies, which rest next to cartons of baby food. In a seeming abdication of logic, similar items are placed across the room from one another. A person trying to figure out how the products were shelved could well conclude that no form of intelligence--except maybe a random number generator--had a hand in determining what went where.But the warehouses aren't meant to be understood by humans; they were built for bots. Every day, hundreds of robots course nimbly through the aisles, instantly identifying items and delivering them to flesh-and-blood packers on the periphery. Instead of organizing the warehouse as a human might--by placing like products next to one another, for instance--Diapers.com's robots stick the items in various aisles throughout the facility. Then, to fill an order, the first available robot simply finds the closest requested item. The storeroom is an ever-shifting mass that adjusts to constantly changing data, like the size and popularity of merchandise, the geography of the warehouse, and the location of each robot. Set up by Kiva Systems, which has outfitted similar facilities for Gap, Staples, and Office Depot, the system can deliver items to packers at the rate of one every six seconds.
BUSINESS and politics are full of surprises--and a near certainty. Whether they are politicians, bankers or trade-union leaders, men nearly always meet other men in suits. The uniform of capitalism has conquered more of the globe than capitalism itself. When Barack Obama first visited Hu Jintao, paramount leader of the People's Republic of China, the men were clad in near-identical dark blue suits, white shirts and red spotted ties.It has become a symbol of conformity. "Suit" was the chosen insult of hippies to describe a dull establishment man. The garment has been ostentatiously rejected by Silicon Valley titans like Steve Jobs of Apple, Mark Zuckerberg of Facebook and Sergey Brin of Google. Yet the business suit has an exciting and mysterious history that should give wearers a tingle of pleasure every time they put one on. It is a garment born out of revolution, warfare and pestilence. The suit still bears the marks of this turbulent past as well as the influence of Enlightenment thinking, sporting pursuits and a Regency dandy. In the year that may well mark the 150th anniversary of the suit it seems a shame that no celebrations were held in its honour.
In 1992, virtual eons before the Kindle and the iPad, Bob Stein created software that let a reader flip through an electronic book on a laptop computer.To demonstrate the program at conferences, Stein would lie down on stage as if reading in bed.
"Publishers would see this and they would think it was cute, but they didn't think it had anything to do with them," he recalls.
Now that the revolution is here, Stein says publishers should embrace what he sees as the inevitable result: the evolution of reading from a solitary pursuit into a communal, electronically networked activity - something he calls social reading and writing.
Twenty-two years ago, during a slow period at a dealership where I worked, I found an old Apple II computer. It had been set up to calculate leases, but I quickly discovered that it could do all sorts of things. It wasn't like I hadn't used a computer before; in 1985, using my Compaq portable as a letter-writing machine had led to my biggest sales year ever in the auto industry. But only three years later, my appreciation for the coming Information Age was to change dramatically.Change is hard....One of the first things I did on this old Apple machine was hook it up online. Subscribing to the original StarText news wire that the Star-Telegram was then selling, I saw from this quaint beginning that the Information Age was starting to broaden. It wasn't long before I subscribed to CompuServe. That's when I realized I would need not just a more powerful computer, but also one capable of showing graphics to take advantage of what was coming our way.
Shortly thereafter I had discovered that others were working on creating what would be called the Internet, connecting everybody in the world to one another.
Under the Christmas tree, some of us will hopefully find a great Iphone 4 32G, an amazing 9.7 inch Ipad 3G, a Dell netbook, a Sony PSP® or a Nokia N8 smartphone. On the user manual, it shall be written how to handle it but certainly not how it has been made. Today, La Vie French magazine publishes a long story (including side boxes here and here) about life at Foxconn, main Apple's supplier. Sorry, it's only in French but let me propose you my comment in English.Despite tragic suicides (14 officially - one last November, yet much lower than in others fims like France Telecom but when it comes to very young people in such a guarded area, it raises questions) and several promises for pay rises, Foxconn is still compared by Hong-kong ngo Sacom, as a "labour camp". How come?
So I went there in May and then back again lately, to check what really changed during this 6 months period of time. Salary is now high, better than any other factory around, but happiness is still not here, whatever swimming pool or tennis court you might have seen on tv, owing to Foxconn p.r. Is it due to Foxconn's military discipline (typically taiwanese, i have been told) ? to a rather hostile environnement (huge dorms, huge factory) that doesn't match with young workers expectations?
In 1467, Peter Schöffer and Johann Fust published a translation of St Augustine's The Art Of Preaching. They were old colleagues of Johannes Gutenberg, the pioneer of modern printing. But their true claim to fame is that they were the first commercially successful printers, and this success stemmed in part from their relentless innovation with the world's newest communications technology: the book.One such innovation appeared in the 1467 edition, which was the first printed book to include an alphabetical index. Schöffer and Fust were not only competing by releasing new titles. They were changing what it meant to use and read a book.
Some of the first book advertisements - and indeed some of the first modern adverts anywhere - talked up their "better arranged indexes" as a selling point. The publishers of the The Art of Preaching claimed that their indexes, along with other new cross-referencing features, were "alone worth the whole price, because they make it much easier to use".
The phrase sounds like it could be from an advert for some 21st-century gadget: "Our books aren't just informative. They're also user-friendly!" The echo of today's marketing language is no accident. Thanks to a series of interrelated technologies - but especially the web, the Kindle and the iPad - we are living through a radical reinvention of the tools and techniques of reading.
Ebenezer Scrooge came into the room slowly. He was, to my surprise, much as Charles Dickens had described him. How, I wondered, could he have changed so little over 170 years? It must be the benefit of being a literary character, I decided."Good morning, Mr Scrooge," I remarked politely. "I have come to interview you about your best-selling new book Scroogenomics - or How to Do Well out of Doing Good."
Scrooge smiled. "Yes," he responded, "I had to show that Joel Waldfogel's Scroogenomics, cleverly reviewed by your John Kay, merely portrayed my unenlightened self. But Dickens, albeit a talented writer, was just a sentimental fool. He never understood what my change over that Christmas was about. I learnt, above all, to appear benevolent. That, with my business acumen, turned Marley & Scrooge into a global enterprise. Fortunately, that philanthropy has become less painful, since my charities are tax deductible. What can be less painful for a miser than state-subsidised charity?"
I was shocked by his candour. He must have drunk too much at the book party earlier. After the abstinence described by Dickens, one drink would have a big effect.
When Saul of Tarsus set out on his journey to Damascus the whole of the known world lay in bondage. There was one state, and it was Rome. There was one master for it all, and he was Tiberius Caesar.Everywhere there was civil order, for the arm of the Roman law was long. Everywhere there was stability, in government and in society, for the centurions saw that it was so.
But everywhere there was something else, too. There was oppression--for those who were not the friends of Tiberius Caesar. There was the tax gatherer to take the grain from the fields and the flax from the spindle to feed the legions or to fill the hungry treasury from which divine Caesar gave largess to the people. There was the impressor to find recruits for the circuses. There were executioners to quiet those whom the Emperor proscribed. What was a man for but to serve Caesar?
There was the persecution of men who dared think differently, who heard strange voices or read strange manuscripts. There was enslavement of men whose tribes came not from Rome, disdain for those who did not have the familiar visage. And most of all, there was everywhere a contempt for human life. What, to the strong, was one man more or less in a crowded world?
Fred Hargesheimer, a World War II Army pilot whose rescue by Pacific islanders led to a life of giving back as a builder of schools and teacher of children, died on Thursday morning. He was 94.With Christmas upon us, I've been reflecting on two things Jesus said here:Richard Hargesheimer said his father had been in poor health and passed away in Lincoln, Nebraska.
On June 5, 1943, Hargesheimer, a P-38 pilot with the 8th Photographic Reconnaissance Squadron, was shot down by a Japanese fighter while on a mission over the Japanese-held island of New Britain in the southwest Pacific. He parachuted into the trackless jungle, where he barely survived for 31 days until found by local hunters.
They took him to their coastal village and for seven months hid him from Japanese patrols, fed him and nursed him back to health from two illnesses. In February 1944, with the help of Australian commandos working behind Japanese lines, he was picked up by a U.S. submarine off a New Britain beach.
"'Love the Lord your God with all your heart and with all your soul and with all your mind.'[a] 38 This is the first and greatest commandment. 39 And the second is like it: 'Love your neighbor as yourself.'[b] 40 All the Law and the Prophets hang on these two commandments."I have been frequently amazed at people who exhibit such selflessness, as exhibited by Fred Hargesheimer.
Scott Cleland is one tough Google (GOOG) critic.From his office in McLean, Va., as founder and president of research firm Precursor, Cleland routinely fires off pages of analysis whenever news on Google's market dominance hits the media.
Cleland's words have irked Google, which is engaging in an unusual behind-the-scenes effort to counter Cleland's views. The case is spotlighting the issue of how companies should deal with critics on the public stage.
"First generation [corn] ethanol I think was a mistake. The energy conversion ratios are at best very small."- Al Gore, speaking at a Green Energy Conference on November 22, 2010
"Ethanol is not an ideal transportation fuel. The future of transportation fuels shouldn't involve ethanol."
- Secretary of Energy Steven Chu, November 29, 2010
No one knows what brought on the blast of political honesty in the last eight days of November. Having been a rabid ethanol booster for most of his political career, there was former Vice President Al Gore reversing course and apologizing for supporting ethanol. Of course Gore's reason for taking that position was perfectly understandable -- for a politician. As he told the Athens energy conference attendees, "One of the reasons I made that mistake is that I paid particular attention to the farmers in my home state of Tennessee, and I had a certain fondness for the farmers of Iowa because I was about to run for President."
Translated from politics-speak into English, pandering to farmers gets votes. But if your claimed position is to plan some sort of energy policy for everyone else, then getting farmers' votes shouldn't determine what's the right thing to do for the nation's fuel supplies.
MATTHEW CARTER, a type designer and the recipient of a MacArthur genius grant, was recently approached in the street near his home in Cambridge, Massachusetts. A woman greeted him by name. "Have we met?" Mr Carter asked. No, she said, her daughter had pointed him out when they were driving down the street a few days before. "Is your daughter a graphic designer?" he inquired. "She's in sixth grade," came the reply.Mr Carter sits near the pinnacle of an elite profession. No more than several thousand type designers ply the trade worldwide, only a few hundred earn their keep by it, and only several dozens--most of them dead--have their names on the lips of discerning aficionados. Then, there is Mr Carter. He has never sought recognition, but it found him, and his underappreciated craft, in part thanks to a "New Yorker" profile in 2005. Now, even schoolchildren (albeit discerning ones) seem to know who he is and what he does. However, the reason is probably not so much the beauty and utility of his faces, both of which are almost universally acknowledged. Rather, it is Georgia and Verdana. Mr Carter conjured up both fonts in the 1990s for Microsoft, which released them with its Internet Explorer in the late 1990s and bundled them into Windows, before disseminating them as a free download.
Miguel Bustillo & Ann Zimmerman
Tri Tang, a 25-year-old marketer, walked into a Best Buy Co. store in Sunnyvale, Calif., this past weekend and spotted the perfect gift for his girlfriend.Last year, he might have just dropped the $184.85 Garmin global positioning system into his cart. This time, he took out his Android phone and typed the model number into an app that instantly compared the Best Buy price to those of other retailers. He found that he could get the same item on Amazon.com Inc.'s website for only $106.75, no shipping, no tax.
Mr. Tang bought the Garmin from Amazon right on the spot.
The world of dance is very much about the unrelenting and occasionally cruel quest for perfection. I've worked with many dancers, and have made what I naively thought to be a worthwhile or even beautiful photograph, only to have the perfectionist inside the dancer rise up and shred it. "Ooh, no. You can't use that, look at the position of my ring finger on my left hand!" I am only being midly facetious here. Ballet demands perfection, which of course is unattainable. Any dancer who sticks with it has heard the call to be perfect, in their head, and perhaps in their dreams. I would speculate many a little girl, as they take their first stumbles in toe shoes, has drifted to sleep with visions of being lifted into the lights before adoring thousands, and then drowning delightfully in a sea of tossed roses from a rapturously applauding audience.More often, though, the call to perfection is more of a bark, harsh and unforgiving, from a dance master or mistress, or a choreographer, who, understandably driven by their own sense of discipline and vision, pushes the dancer to that point where the laws of gravity simply fall away. As Balanchine once said, "Dance is music made visible." That's hard to do. I was blessed to work briefly for ABT and made this picture of the magnificent Marcelo Gomes and Julie Kent, who together and apart, are the epitome of grace and elegant lines. As they took this position, I was stupefied at the exacting nature of the choreographer, and the giving nature of the dancers, striving to bend their bodies to his will.
William DalrympleHerat, Afghanistan
Herat, in western Afghanistan, is one destination in that tragic country that is still safe, or relatively so. It is one of the most spectacular cities in the entire region and, for a brief period after the death of Timur in 1405, was the capital of the Timurid empire. Here Bihzad illuminated his miniatures; Babur wrote some of the most telling passages in his memoirs; and the Timurid princess Gohar Shad built one of the great colleges of the world. Today there are occasional reports of kidnappings and hold-ups between the airport and the town. But inside the city, there is no sense of tension or danger, and no one looks at you askance as you wander through the mosques, the ruins and the fabulous covered bazaars.
Instead, it feels welcoming, gently prosperous and, by Central Asian standards, surprisingly middle class. On the outskirts, on the hillside of Takht Safar, where the bright young things of Herat gather to watch the sun going down, to picnic, sip tea and listen to music under groves of cedars, mulberries and umbrella pines, you can grasp what Afghanistan would be like if peace were miraculously to break out: it feels not dissimilar, and no more threatening, than inland Turkey. In some ways, Herat feels as if it is high on the Anatolian plateau not far from Ankara; but here, you have the place, and the ruins, to yourself. There is not another traveller to be seen.
When Robert Byron was here in the 1930s he loved not just the grand ruins but also the eccentricity of Herat, and much of that still survives. When our plane touched down on the tarmac, the passengers were not taken into the old 1950s terminal, as the man who had the key had gone off for noon prayers. So, instead, our luggage was delivered by tractor, and dumped on the edge of the apron. It seemed an unsurprising fate for bags carried by an airline, Pamir Air, which at check-in had given me a boarding pass marked "Kabul-Riyadh" and when I pointed out that I was going to Herat, replied that it didn't matter: "They'll let you on the plane anyway."
The great and the good who sit on the board of San Francisco's prestigious Asian Art Museum are grappling with problems that run deeper than reviving recession-hit visitor numbers or repairing a dented endowment fund.A financial derivative gone bad is threatening to become the last straw that tips the museum into bankruptcy - unless a stand-off involving the city and two prominent US financial institutions can be resolved within the next two weeks.
The museum's problems have touched off a war of words in recent days. Dennis Herrera, San Francisco's city attorney, fired off letters last week to JPMorgan Chase and bond insurer MBIA, accusing them of taking millions of dollars in fees from the city while washing their hands of the problems to which they have contributed.
"The city's involvement is not just for the city attorney to write a letter and say it's everyone else's problem," retorted Mitchell Sonkin, chief portfolio officer at MBIA. The city itself had short-changed the museum in recent years, forcing it to draw more heavily on its endowment, and should take part in a rescue.
Seeking to head off escalating scrutiny over Internet privacy, a group of online tracking rivals are building a service that lets consumers see what information those companies know about them.The project is the first of its kind in the fast-growing business of tracking Internet users and selling personal details about their lives. Called the Open Data Partnership, it will allow consumers to edit the interests, demographics and other profile information collected about them. It also will allow people to choose to not be tracked at all.
When the service launches in January, users will be able to see information about them from eight data and tracking firms, including BlueKai Inc., Lotame Solutions Inc. and eXelate Inc.Additional tracking firms are expected to join once the system is live, but more than a hundred tracking firms and big Internet companies including Google Inc. and Yahoo Inc. are not involved.
For a brief, surreal moment, the prevailing narrative in Washington was that the 2008-09 bail-outs were not really so bad. In September, Treasury secretary Tim Geithner called the government's troubled asset relief programme "one of the most effective emergency programmes in financial history", claiming that the final cost to taxpayers would be less than $50bn.Steven Rattner, the Wall Street banker who oversaw the Obama administration's rescue of the auto sector, wrote in the Financial Times in October that "without exaggeration, this legislation [establishing Tarp] did more to keep America's financial system - and therefore its economy - functioning than any passed since the 1930s".
But Wednesday's document dump from the Federal Reserve - a congressionally ordered "WikiLeak moment" - puts this bargain-bail-out patter in a new perspective. The post-Lehman rescues were far broader than Tarp, and far riskier for taxpayers, even if the alternative of a systemic meltdown would have been worse.
Richard Branson and Rupert Murdoch are entrepreneurs with an admirable record of ignoring conventional wisdom, so it is worth watching when they do the same thing at once.In this case, they are launching iPad-only publications. Sir Richard bowled into New York on Tuesday to unveil a £1.79 or $2.99 monthly magazine called Project, while Mr Murdoch is about to launch a "newspaper" called The Daily, for which he hopes 800,000 people will pay $1 a week. Both will charge readers in an era when most internet publications are free.
The fact that Mr Murdoch will separate his new daily publication from "the open web" by publishing on the iPad has provoked scepticism and hostility in digital media circles. "Murdoch keeps fighting the internet and the internet keeps on winning," wrote Mathew Ingram, of the GigaOm technology blog.
This fits into a bigger debate about whether companies are balkanising the web to gain economic leverage. Tim Berners-Lee, the British scientist who invented the World Wide Web, complained in Scientific American about Facebook's private accumulation of data, and of print publishers' "disturbing" wish to create closed worlds.
In the midst of the biggest green car push in automotive history - what with Chevrolet touting its extended-range electric Volt as the greatest thing since sliced bread while crossing green swords with Nissan, which is shouting similar missives from the rooftops about its all-electric Leaf - it has become readily apparent that the vast majority of the American consumer public couldn't be bothered. As in they couldn't care less. That is unless someone - i.e., Washington - is throwing money at them to care.Hybrid sales in this market are going to finish the year down again, which will mark three straight years of decline, and this includes the $4.00+ per gallon spike in the late spring-summer of 2008, when fuel economy hysteria took hold in the U.S. for four solid months. It seems that the Shiny Happy Green Sensibilities Act - or whatever you want to call the ongoing "shove-it-down-the-American-consumer-public's-throats-and-they-will-learn-to-lilke-it" mentality that pollutes the political brainiacs/stumblebums in Washington and Northern California - is going nowhere.
As a matter of fact our illustrious leaders in Washington used a considerable chunk of money from the 2009 economic stimulus package to buy up hybrids from various auto manufacturers to prop-up hybrid vehicle sales, couching it as a noble attempt at improving the overall fuel-efficiency of the government fleet, when in fact the real reason was to not only - hopefully - jump-start American consumer thinking into accepting these vehicles as being mainstream choices, but to help the vehicle manufacturers who were battered and bullied to build the vehicles in the first place to keep the production lines going.
But alas, this is the pattern we find ourselves in as a nation at the moment. A minority of the citizenry in an absolute lather about climate change - aided and abetted by maliciously clueless politicos with an axe to grind and an agenda that has more to do with their personal ambitions than it does with such quaint ideas as "being good for the country" - dictating to the majority of the American public how it's going to be.
We are fortunate to have Southwest serving Milwaukee. Madison service would be that much better, of course.
Despite a stubbornly sour national economy congressional members' personal wealth collectively increased by more than 16 percent between 2008 and 2009, according to a new study by the Center for Responsive Politics of federal financial disclosures released earlier this year.And while some members' financial portfolios lost value, no need to bemoan most lawmakers' financial lot: Nearly half of them -- 261 -- are millionaires, a slight increase from the previous year, the Center's study finds. That compares to about 1 percent of Americans who lay claim to the same lofty fiscal status.
And of these congressional millionaires, 55 have an average calculated wealth in 2009 of $10 million or more, with eight in the $100 million-plus range.
Dawn C. Chmielewski and Claudia Eller,
Once upon a time, there was a studio in Burbank that spun classic fairy tales into silver-screen gold.But now the curtain is falling on "princess movies," which have been a part of Disney Animation's heritage since the 1937 debut of its first feature film, "Snow White." The studio's Wednesday release of "Tangled," a contemporary retelling of the Rapunzel story, will be the last fairy tale produced by Disney's animation group for the foreseeable future.
"Films and genres do run a course," said Pixar Animation Studios chief Ed Catmull, who along with director John Lasseter oversees Disney Animation. "They may come back later because someone has a fresh take on it ... but we don't have any other musicals or fairy tales lined up." Indeed, Catmull and Lasseter killed two other fairy tale movies that had been in development, "The Snow Queen" and "Jack and the Beanstalk."
To appreciate what a sea change this is for the company, consider that a fairy tale castle is a landmark at Disney theme parks around the world and is embedded in the Walt Disney Pictures logo. Fairy tale characters from Disney's movies populate the parks, drive sales of merchandise and serve as the inspiration for Broadway musicals.
Alas, Snow White, Sleeping Beauty, Ariel, Jasmine and the other Disney royals were all born in the 20th century. Now, different kinds of Disney characters are elbowing their way into the megaplexes and toy aisles, including Pixar's "Toy Story" buddies Buzz Lightyear and Woody, Capt. Jack Sparrow from "Pirates of the Caribbean" and a platoon of superheroes from the recent acquisition of Marvel Entertainment.
The Brigham Young University's Museum of Art in Utah US opens on November 12 an exhibition with paintings by the 19th century Danish painter Carl Heinrich Bloch. The exhibition will run until May 7Carl Bloch became famous as religous painter after he was commisioned to paint 23 new paintings from the bible in the Kings Oratory (Kongens Bedekammer) at Frederiksborg Castle. The original paintings had been destroyed in the big fire in1859 which destroyed large areas of the castle.
I was commissioned by the Brigham Young museum to photograph panoramas from all the Danish and Swedish churches where Carl Bloch's altar paintings are found.
Some of these original paintings have been lend to the exhibition in US.
However the most important panorama was the panorama from the Kings Oratory. These paintings are his main religous work which his church altar paintings are based on.
Douglas Belkin & Neil King, Jr.
Last week's election rout did more than put Republicans in charge of the U.S. House of Representatives. It upended the electoral map that propelled President Barack Obama to the White House.Mr. Obama bagged traditionally liberal Wisconsin and its ten electoral votes two years ago, part of a sweep that also included states that hadn't tilted Democratic for decades. That went into reverse Tuesday. The party suffered heavy losses in Ohio and Pennsylvania, two big states that had backed Mr. Obama in 2008, as independent voters swung to the right. Other presidential territory--Virginia, Indiana and North Carolina--swung back to the GOP.
The depth of the party's losses outside Washington, in state-level-contests, can be seen in this working-class city. The president won handily here in 2008 along with surrounding Brown County. Last week, Republicans carried all 18 races on the county's ballots, right down to the clerk of the court. The GOP took control of the governor's office, the state assembly and the state senate--the first time the state has reverted so abruptly to one side since 1938.
The resurgence of interest in Pabst Blue Ribbon beer is somewhat astonishing. Left for dead in the 1980's, Pabst has been resurrected with clever marketing, as illustrated by this billboard on Madison's Regent Street. It appears to be an "impressionistic" approach to their identity. Much more on Pabst here (Blekko). Note that I have no idea if the beer is actually any good......
Finally, while attending a few recent events, I noticed that "tall 16oz" cans of beer are making a comeback. As always everything old is new again.
From its beginning as a sailboat equipment company to its success in capturing the admiration and loyalty of legions of landlubbers, Lands' End has stayed true to its famous mantra, "Guaranteed.Period.®" In addition to the company's focus on quality, they have kept their eyes on their customer. In 2008 they were named to the NRFF-AMEX Top Ten for consistent excellence in customer service and retained that standing in 2009. To find out how this predominately catalog and Internet retailer continues to win accolades from consumers the world over, we caught up with Nick Coe, President of Lands' End. You'll find "quality" resonates through the answers of this top exec, who fell in love with retailing when he was intrigued by quality in "great tailoring or a perfect pair of jeans" - products he couldn't afford.In the five years NRF Foundation and American Express have conducted the Customers' Choice survey, Lands' End has consistently been ranked in the top ten. How do you continue to delight your customers year after year?
As my reference to the Japanese yen might suggest, I am pretty skeptical about the likelihood of this happening, at least with some of the more excited predictions. So, by the way, is the ADB, whose recent report (“The Future Global Reserve System — An Asian Perspective”), suggests that by 2035, the RMB may comprise about 3 to 12 per cent of international reserves. This is a pretty reasonable prediction, in my opinion, and far from the more feverish claims we see reported almost daily.
If the renminbi ever becomes a major trading or reserve currency, it is going to take a long time for this to happen and will require a radical transformation of the Chinese economy and the role of the government. This may seem like a surprising statement. After all nearly every week we see reports about a new breakthrough for the renminbi, and almost every day someone important somewhere speculates publicly about what the world will be like when (never if) the renminbi displaces the dollar.
But away from all “qualitative” arguments about why this is unlikely, and there are many, I think there is a problem with the arithmetic of reserve currency accumulation. If the rest of the world is going to use the renminbi as a reserve or trading currency, clearly it needs a mechanism by which to accumulate renminbi. This is something on which a surprisingly large share of people who talk about the future of reserve currencies don’t seem to focus.
They predicted the “electronic frontier” of the Internet, Prozac, YouTube, cloning, home-schooling, the self-induced paralysis of too many choices, instant celebrities, and the end of blue-collar manufacturing. Not bad for 1970.
In the opening minutes of Future Shock, a 1972 documentary based on the book of the same name, a bearded, cigar-puffing, world-weary Orson Welles staggers down an airport’s moving walkway, treating the camera like a confidante. “In the course of my work, which has taken me to just about every corner of the globe, I see many aspects of a phenomenon which I’m just beginning to understand,” he says. “Our modern technologies have changed the degree of sophistication beyond our wildest dreams. But this technology has exacted a pretty heavy price. We live in an age of anxiety and time of stress. And with all our sophistication, we are in fact the victims of our own technological strengths –- we are the victims of shock… a future shock.”
Phoebe Philo, the 37-year-old creative director of Céline, is surprisingly frail for someone who a year ago accomplished the Herculean feat of turning the river of trend and washing fashion’s Augean stables clean of decorative bling. A 2010 nominee as British Designer of the Year, she was also behind one of the most heralded collections at last week’s women’s wear shows in Paris.
Medium height, with wispy brown hair and prominent cheekbones, her thin frame swamped by a black leather jacket and a long, man’s shirt over slouchy black trousers, she can seem almost fragile. On the other hand, she has chosen St John, a restaurant in Clerkenwell, London, known for its “nose to tail” menu of offal and other meaty innards, so clearly she has a carnivorous, protein-packing side.
“Well, it’s run by a friend,” she says when she arrives in the stripped-down white space and sits at the paper-covered table. “And it has a straightforwardness that I quite like. It’s very to-the-point.”
To wit: there are “peas in the pod” on the menu. Literally. Undressed, unshelled, peas in the pod, like the kind you get in the market. Or, as Philo says, like the kind that might have “come right from the garden”. She orders some of those with fresh lemonade – the kind they make in America, with just lemon juice, water, and sugar – plus a green salad, some cured mackerel and a roast beef sandwich, because she “rather fancies some white bread”. I opt for lemonade, some cauliflower and lentils, a green salad and a cheese plate. Philo looks at me appraisingly.
The last seven years have had much in common with the period of 1893 to 1900. But the turmoil this country experienced during the first few years of the 20th century also seems to be mirrored in the events of today.
Certainly the nation once witnessed the rise of the more radical elements, whether they were far-left anarchist movements or center-left progressives. Those movements attested to a very real battle being waged for the heart and soul of what the American Century would become. Its apex was marked by one president's assassination and by the dreams of an inventor who wanted to revolutionize our mobility.
Given what has transpired over the last two years, it is haunting to read Teddy Roosevelt's letter to Congress and his personal thoughts on companies whose sole reason for existence is to make their owners wealthy without regard to the damage they were doing to society. One wonders what would have happened if today's Wall Street Masters of the Universe had been confronted in a White House with the same resolve that Roosevelt showed to J.P. Morgan.
If the world is on the brink of an out-and-out currency war, a variety of battalions has been out on manoeuvres in the past few weeks. The Bank of Japan, after six years off the battlefield, has launched a fusillade of intervention to hold down the yen in foreign exchange markets. Brazil used the guerrilla tactic of doubling taxes on capital inflows to stop the real surging. India and Thailand warned that they too might bring heavy ordnance into play.
The main combatants, the US and China, continued to exchange rhetorical salvos. Washington (and Brussels) identified undervalued currencies such as the renminbi as a prime cause of global macroeconomic imbalances. Beijing retorted that such aggression risked bringing mutual destruction upon the great economic powers.
On Monday Dominique Strauss-Kahn, managing director of the International Monetary Fund, voiced his concern. “There is clearly the idea beginning to circulate that currencies can be used as a policy weapon,” he said. “Translated into action, such an idea would represent a very serious risk to the global recovery.”
In a SPIEGEL interview, former United States Secretary of State Condoleezza Rice discusses America's fight for German reunification, Soviet leader Mikhail Gorbachev's woes at the time, Chancellor Helmut Kohl's merits and the later mistakes of his successor, Gerhard Schröder.
SPIEGEL: Madame Secretary, when the Berlin Wall fell in 1989, European nations like Great Britain and France were very worried about the prospect of German unification. America was the only country that didn't appear to be concerned. Why not?
Condoleezza Rice: The United States -- and President George H.W. Bush -- recognized that Germany had gone through a long democratic transition. It had been a good friend, it was a member of NATO. Any issues that had existed in 1945, it seemed perfectly reasonable to lay them to rest. For us, the question wasn't should Germany unify? It was how and under what circumstances? We had no concern about a resurgent Germany, unlike the British or French.
SPIEGEL: Because a unified German was in America's strategic interest?
Rice: If you were going to have a Europe that was whole and free, you couldn't have a Germany that was divided. So, with the possibility that Soviet power was going to be receding from Europe, it made perfectly good sense to try to achieve reunification on terms that nobody would have thought thinkable, even four or five years before.
The tweets started arriving in August, and they did not mince words. One of the first accused the South Korean government of being "a prostitute of the United States." The Twitter account, under the name "uriminzok," or "our nation," seemed to be part of a sprawling North Korean digital operation that included a Facebook account (registered as a man interested in "meeting other men," but solely for "networking purposes") and a series of YouTube videos meant to celebrate the might of the North Korean military.
A spokesman for the North Korean government quickly denied any involvement with the Facebook and Twitter accounts, but he acknowledged that they were the work of government supporters living in China and Japan. The owner of the Facebook page (which the Palo Alto, Calif., company eventually deleted, citing violation of its terms of service) told a South Korean news agency that it was run by a Pyongyang-based publishing outlet affiliated with the government. Apparently, even the notoriously isolated rulers of North Korea know how to practice what the U.S. State Department calls "21st-century statecraft."
Fundamentally, without major government commitments to high-speed rail, America simply will not have a high-speed passenger rail network. This should probably be discomfiting, since every other economic superpower (the EU, Japan and China) does have a high-speed rail network. That makes America look a bit backward. The time horizon for building such a network is several decades, and it's interesting to think about what will happen in the middle decades of this century if air transport becomes unaffordable due to high fuel costs and America doesn't have an electric alternative for high-speed intercity transit.
Politically, I would describe what's going on here as a loss of confidence in the principle of government investment and planning, in the face of the demonstrated incapacity of the contemporary American government to do an adequate job of investment and planning. That incapacity is largely due to conservative political opposition to government intervention in the economy, either for ideological reasons or because it entails higher taxes or because it treads on the toes of vested business interests. But the fact that the American government can't get its act together to create a decent modern passenger rail network doesn't mean that governments in general are incapable of doing so, or that it isn't a good idea. Europe, Japan, and China seem perfectly capable of doing this job. A more narrow response to the rail problem, specifically, would be to encourage a BOT deal in which the government uses eminent domain to create the rail corridor and turns to the private sector to raise the capital, build it and perhaps run it. But, again, this doesn't question the need for the government to plan national infrastructure, which seems to me to be pretty hard to gainsay.
For one weekend every year since 2003, tiny Concord, Georgia, population 336, becomes a photography mecca. “Slow Exposures” lures photographers, curators, and editors to look at pictures from the South, to discuss and debate them, and to exchange experiences, all thanks to the wonderful Chris Curry and Nancy McCrary, with the help of a staff of cheerful volunteers. Southern conviviality and hospitality create an ambiance that is most of all creative and communicative. Chris and Nancy created the festival as a photographic center representing the rural South. It is a non-profit organization, with proceeds going toward the preservation and restoration of historic buildings and land in Pike County, and attracts devotees and newcomers for a full slate of photographic events: a juried photography show, an all-day portfolio review, and exhibitions, all in beautifully restored local buildings. This year, John Bennette, a curator, collector, and champion of artists, conceived the wonderful exhibition “Southern Memories: Part I” for the festival, on view in the restored Whiskey Bonding Bar, in Molena. The show is John’s subjective vision of the South, shaped by his memories—he grew up in Birmingham, Alabama, and now lives in New York. Asking himself what is important in the South, he came up with four categories: the land, God, school, and Southern history; he believes that history—i.e., the Civil War—still drives Southern culture today. His show avoids the extremes of rich and poor and stays away from clichés. Many of the artists he included were discovered in earlier “Slow Exposure” shows, and were surprises to me.
It's late afternoon on a football Sunday in the Northeast, circa 1976. Outside, the sun is setting. Soon your mother will call you up for dinner. But, before then, you want more football. You flip over to NBC and there, in West Coast sunshine, is a team wearing silver and black, playing with a kind of controlled recklessness. Their logo features a pair of crossed swords and a man with an eyepatch; their coach is a shambling, wild-haired guy; their quarterback is nicknamed Snake; and their owner looks like he carries a stiletto in his jacket. You watch them play and before you know it, you've fallen in love with this team. Before you know it, you've abandoned your Redskins or Eagles or Jets. You're now an Oakland Raiders fan. If any of the above resonates for you, then you will want to read Peter Richmond's new book, “Badasses: The Legend of Snake, Foo, Dr. Death, and John Madden's Oakland Raiders,” which has just been published by Harper. Richmond, who is the author of numerous books on sports (as well as a Shouts & Murmurs piece about Ken Griffey, Jr. published in The New Yorker), kindly agreed to answer a few questions by e-mail.
Keith Libbey & Evan Thomas:
Most Americans spend dozens, if not hundreds, of hours attempting, not always successfully, to do their tax returns. We spend almost $30 billion paying accountants to fill out the complicated forms, and by some estimates we devote $110 billion of our own labor just keeping track of all the necessary records and paperwork. Americans pay about 85 percent of the taxes they owe, better than in most countries, but the shortfall is still a drain on the Treasury (and the rich seem to find a way to avoid taxes legally). Is this costly, demoralizing struggle between the IRS and the rest of us really necessary?
The short answer is no. There is a way to relieve almost all Americans of the annual April 15 nightmare. What’s more, it’s a necessary first step toward a plan to cut the looming federal deficit. The time is right for thoroughgoing tax reform—a true clean slate—that will bring in more revenue while giving the public a greater sense of fairness. The reforms we propose will even allow most people to take home more pay than they do now.
The place to start is to cut almost everyone’s payroll and income taxes by half. Yes, you read that right. Cut most tax rates, which now run from 10 to 39 percent, by half. All individual taxes would be collected through company withholding taxes on compensation (salary, bonus, deferred payments, etc.) and investment income (dividends, interest, capital gains, rents) to individuals. The very rich—those making more than $2 million a year—would still pay a top tax rate of 30 percent on earned income. The rate on investment income would be 15 percent. The result: individuals would not have to file tax returns, most Americans would take home more pay than they do now, the tax base would be broadened, and the AMT—the alternative minimum tax, which sweeps up more taxpayers every year—would be eliminated.
Too good to be true? There’s no free lunch. The revenue lost to the government—roughly half of all personal federal taxes—has to come from someplace else. The best fix is to eliminate all deductions and exemptions for individual taxpayers—all those tax breaks that were intended to promote economic activity or serve worthy social goals but have ended up creating myriad unfair outcomes. It’s true that the wealthiest 1 percent currently pays about 18 percent of all taxes. Still, thanks to clever tax dodges, the top 400 income earners pay an average tax rate of 16.6 percent; megabillionaire Warren Buffett notes that his secretary pays a higher tax rate than he does.
The Economist:FROM “Wikinomics” to “Cognitive Surplus” to “Crowdsourcing”, there is no shortage of books lauding the “Web 2.0” era and celebrating the online collaboration, interaction and sharing that it makes possible. Today anyone can publish a blog or put a video on YouTube, and thousands of online volunteers can collectively produce an operating system like Linux or an encyclopedia like Wikipedia. Isn’t that great?
No, says Jaron Lanier, a technologist, musician and polymath who is best known for his pioneering work in the field of virtual reality. His book, “You Are Not A Gadget: A Manifesto”, published earlier this year, is a provocative attack on many of the internet’s sacred cows. Mr Lanier lays into the Web 2.0 culture, arguing that what passes for creativity today is really just endlessly rehashed content and that the “fake friendship” of social networks “is just bait laid by the lords of the clouds to lure hypothetical advertisers”. For Mr Lanier there is no wisdom of crowds, only a cruel mob. “Anonymous blog comments, vapid video pranks and lightweight mash-ups may seem trivial and harmless,” he writes, “but as a whole, this widespread practice of fragmentary, impersonal communication has demeaned personal interaction.”
If this criticism of Google, Facebook, Twitter and Wikipedia had come from an outsider—a dyed-in-the-wool technophobe—then nobody would have paid much attention. But Mr Lanier’s denunciation of internet groupthink as “digital Maoism” carries more weight because of his career at technology’s cutting edge.
Retired Army Special Forces Sgt. Maj. Alan Farrell is one of the more interesting people in this country nowadays, a decorated veteran of the Vietnam War who teaches French at VMI, reviews films and writes poetry. Just your typical sergeant major/brigadier general with a Ph.D. in French and a fistful of other degrees.
This is a speech that he gave to vets at the Harvard Business School last Veterans' Day. I know it is long but a lot of you can't go outside anyway because of the hurricane:
--------
"Ladies and Gentlemens:
Kurt Vonnegut -- Corporal Vonnegut -- famously told an assembly like this one that his wife had begged him to "bring light into their tunnels" that night. "Can't do that," said Vonnegut, since, according to him, the audience would at once sense his duplicity, his mendacity, his insincerity... and have yet another reason for despair. I'll not likely have much light to bring into any tunnels this night, either.
The remarks I'm about to make to you I've made before... in essence at least. I dare to make them again because other veterans seem to approve. I speak mostly to veterans. I don't have much to say to them, the others, civilians, real people. These remarks, I offer you for the reaction I got from one of them, though, a prison shrink. I speak in prisons a lot. Because some of our buddies wind up in there. Because their service was a Golden Moment in a life gone sour. Because... because no one else will.
Sebastiaan de Rode Aeolus Cello Quartet 21 August 2010 from Kate Zellmer.
Henny Sender and Vanessa Friedman
:
Just weeks after Mr Obama was inaugurated wearing a Hickey Freeman suit, HMX, the Chicago-based owner of that brand as well as Hart Schaffner Marx among others, filed for bankruptcy protection. After an auction in August last year, Mumbai-based SKNL became the latest Asian group to buy a collection of premier western fashion brands.In doing so, it joined Megha Mittal, of the Indian Mittal steel dynasty, who last year bought the German luxury brand Escada; Li & Fung of Hong Kong, which two years ago snapped up Hardy Amies, couturier to Britain's royal family; and Hong Kong-based S.C. Fang & Sons, which bought Pringle of Scotland in 2000.
From individual consumers of luxury goods, the Chinese and Indians have become consumers of luxury companies, in a shift that has far-reaching implications for the $80bn (€63bn, £52bn) a year industry. Many of the recent acquisitions have been driven by a wish to raise production standards in Asia and, in the long term, change a tenet of the luxury industry: the importance of production in "country of origin". The notion that to merit its price tag, a luxury item must be made in the country where it is designed and where its label was born is on the wane.
What is the biggest problem with the news media in America today?
Mr Rosen: The cost of changing settled routines seems too high, but the cost of not changing is, in the long term, even higher. A good example is the predicament of the newspaper press: the print edition provides most of the revenues, but it cannot provide a future. I know of no evidence to show that young people are picking up the print habit. So if the cost of abandoning print is too high, the cost of sticking with it may be even higher, though slower to reveal itself. That's a problem.
Another example is the decline of trust. In the mid-1970s over 70% of Americans told Gallup they had a great deal or fair amount of confidence in the press. Today: 47%. Clearly, something isn't working. But revisions to the code of conduct that has led to this decline would be seen by most journalists as increasing the risk of mistrust. I've tried to argue that the View from Nowhere—also called objectivity—should be replaced by "here's where we're coming from." That strikes most people in the American press as dangerous and unworkable. But the current course is unsustainable: trust continues to decline, with a big acceleration after 2003. When I mention this to journalists, they say: "Trust in all big institutions has declined, Jay." Which is true (except for the military). But is that really an answer? You're supposed to be the watchdogs over dubious actors. Why aren't you an exception?
I could go on, but I think you see the pattern. Change is too expensive; the status quo is unsustainable.
"It was the best of times, it was the worst of times; it was the age of wisdom, it was the age of foolishness ..."
-- Charles Dickens, A Tale of Two Cities, 1859
For the past 120 days I have pored over economic reports, commerce data, home sales across America, stats on inflationary trends and sales tax reports by state (when they can be found). I've sorted the data by date published, then prioritized it by importance to the economy, and looked for correlations positive or negative. But no matter how many times I read over the data, I can come to only one solid conclusion: We have now finished changing into a two-tiered economy.
This change didn't start with the downturn of the past two and a half years; instead, the completion of our segregation into two financial classes is what directly caused the downturn. No longer is the belief that "there's the 20 percent of the population that live in poverty and then there's the rest" a comfortably distant concept.
The discomfort line now divides those who "feel afraid" that they live in poverty-like circumstances, or soon will - even if they are gainfully employed - from "the rest." And instead of a 20/80 split, have-nots to haves, today it may well be 60/40.
The 2011 Nissan Leaf is the world's first mass-market all-electric automobile, to be built in the hundreds of thousands globally/annually by Nissan beginning this winter. And may I say, thank God and Carlos Ghosn, chief executive of Nissan. Not so much a game changer as a game starter, the Leaf is a five-seat, five-door passenger EV sedan sold from California to Maine, with a nice, round 100-mile estimated range; 0-60 mph acceleration of around 10 seconds; and a top speed of 90 mph. The U.S. price is $32,780 (not counting the $7,500 federal tax credit for EVs) and includes a host of value-added, segment-competitive features, such as Bluetooth, navigation, 16-inch alloy wheels. Such a car would have been science fiction five years ago.
When David Zucker was a schoolkid in Milwaukee in the 1960s, one of his teachers made a prediction. "She said to me once, when I was fooling around in class, 'Zucker, I know one day I'll be paying good money to see you make me laugh, but right now, get your ass back in that chair and crack that book!'"
She was right. This badly behaved schoolkid would go on to reinvent US screen comedy with a movie called Airplane!, which he co-directed and co-wrote. Today, speaking in Manhattan, David is feeling a little rough. He was out the night before, it turns out, celebrating the film's 30th anniversary with the movie's co-creators, his younger brother Jerry and their lifelong friend Jim Abrahams. "I just couldn't get out of bed this morning," he says.
Well may they celebrate. Airplane! made $83m on its first release in 1980 (on an outlay of a mere $3.5m), and launched an entire comedy franchise, from the Police Squad TV shows to the Naked Gun movies they grew into – reconfiguring, in the process, one-time 1950s romantic lead Leslie Nielsen into a comic hero. Somewhere along the way, Zucker, Abrahams and Zucker (ZAZ for short) also inspired Saturday Night Live, launched another comedy titan of the 1980s, John Landis, and even gave the Farrelly brothers their big writing break.
More than a century ago, Thorstein Veblen—American economist, sociologist and social critic—warned that the United States had developed a bizarre and debilitating network of social habits and economic institutions. Ascendant financial practices benefited a limited group at the expense of the greater society; yet paradoxically Americans deemed these practices necessary, even commendable. Far from lambasting the financiers plundering the nation’s resources, we lauded them as the finest members of society. Their instincts, wisdom and savoir faire were idealized, their avarice and chicanery promoted under the banners of patriotism and virtue.
Veblen, an inveterate reader of ethnographies, noticed a historical pattern that could illuminate America’s peculiar relationship with its economic institutions. Societies everywhere fall between two extremes. First, there are societies in which every person works, and no one is demeaned by his or her toil. In these societies, individuals pride themselves on their workmanship, and they exhibit a natural concern for the welfare of their entire community. As examples of such “productive” societies, Veblen mentions Native Americans, the Ainus of Japan, the Todas of the Nilgiri hills and the bushmen of Australia. Second, there are “barbarian” societies, in which a single dominant class (usually of warriors) seizes the wealth and produce of others through force or fraud—think ancient Vikings, Japanese shoguns and Polynesian tribesmen. Farmers labor for their livelihood and warriors expropriate the fruits of that labor. Exploitative elites take no part in the actual production of wealth; they live off the toil of others. Yet far from being judged criminal or indolent, they are revered by the rest of the community. In barbarian societies, nothing is as manly, as venerated, as envied, as the lives of warriors. Their every trait—their predatory practices, their dress, their sport, their gait, their speech—is held in high esteem by all. Our world falls into the latter form. There remains a class that pillages, seizes and exploits in broad daylight—and with our envious approval. Who are the barbarian warriors today? According to Veblen, the modern barbarians live on Wall Street. They are the financiers summarily praised for their versatility, intelligence and courage in the face of an increasingly mysterious economy. Today a growing number of Americans feel at risk of economic despair; in a world of unsatisfying professional options and constant financial insecurity, the image of Wall Street life offers a sort of relief. It symbolizes the success possible in the modern world.
In order to be for a democracy, or in our case, a functioning Federal Republic, one has to have an informed electorate. Of course, that is infinitely more difficult than one might think. For even when the raw truth of a story comes to light from unimpeachable sources, it is frightening how the vested interests today will immediately attack the information and the source involved - in order to lessen the impact of the truth on the public at large - with frightening speed.
As mentioned in this column, I seem to spend an inordinate amount of time refuting e-mails in which there is no truth to the claim being made, whether it's about the Auto Task Force, why the financial system melted down or any other major hot-button issue. On the other hand, I get such e-mailings far more often than I do links to a legitimate news story. Moreover, all too often the e-mail's forwarder, who believes completely in the e-mail no matter how outrageous the claims made in it, often point out to me that they no longer read newspapers because of "known" bias.
That is scary. People will trust an unknown and angry blogger - whose bias screams through his or her words, and who knowingly and intentionally misleads the reader - before they'll trust verifiable facts in the media.
The nice people of Rupert's world sat down with Google head man - Eric Schmidt. The Wall Street Journal team peppered Eric with lots of interesting questions. Some of his answers would make the usual PRHHM (Public Relations hacks handlers and minders) squirm.
In the Googlesphere it has become clear that all information should be held sacred as long as Google has a copy and is in charge of what gets shown and not shown. As Schmidt noted in the Techonomy conference on August 4, 2010 , all information should be subject to "much greater transparency and no anonymity." ... because he assumes that (Google) technology is ultimately good (as opposed to evil). I think that makes me very nervous. And thank you, I vote for my Government which I think is called a democracy. Going back to the WSJ article, Schmidt continues - "Most people..... They want Google to tell them what they should be doing next."
In general I believe that personalization is part of the mix. My view is that 'context' is better term than 'personalization'. I don't think that everything needs to be/should be uniquely or personalized. That is not how we are in our work and personal lives. To assume that this is the case is blatantly arrogant in my view. What happens if you get this wrong? And yes people who should know better do get these sort of things wrong - frequently. Just look at credit reports. But Google doesn't seem to want to think about that because.... Mr. Schmidt is a believer in targeted advertising because, simply, he's a believer in targeted everything: "The power of individual targeting—the technology will be so good it will be very hard for people to watch or consume something that has not in some sense been tailored for them." ....This is a direct quote from the WSJ. Too bad that Big Brother Google will be the arbiter or this and thence directly or indirectly control and influence our tastes.
So we’re at that stage of life that many would, and have, described as “dying.” True enough, we’re noticing some of the icky stuff – creeping paralysis and numbness on the left side, and the weakness and reduced mobility that go with it. We have less stamina, particularly late in the day and there’s creeping fatigue – I’m napping and sleeping more. Things I used to do relatively easily are getting harder – dressing, getting in and out of cars, walking, especially late in the day.
That I’m able to do these things at all at this point in the progression of my disease has a lot to do with my “Heidi muscles,” the legacy of three years with trainer and rehab specialist Heidi Engel. She’ll be the topic of a post in the very near future, complete with her exercise regimen for dying people (yes, it makes sense!).
I am in Tate Modern with no Baedeker. Nor Lonely Planet, Rough Guide, Time Out or any other type of guidebook. For Lucy Honeychurch, heroine of EM Forster’s Room with a View, this would be a desperate situation. Without a guidebook in Florence’s Santa Croce, she is bereft, close to tears, unsure what she should be looking at, unable to recall any of the building’s history and upset at having no one to tell her which of the sculptures and frescoes is most beautiful.
I, however, am supremely confident. I may not have a guidebook but I am equipped with “Google Goggles”, and thus have at my fingertips more information than exists in any guidebook ever written – perhaps more even than the combined wisdom of all guidebooks ever written.
Disappointingly, Google Goggles are not physical goggles, or glasses of any kind, but an app that will soon become available for iPhones and already works with Android smartphones. Put simply, whereas Google lets you search the internet using keywords, this allows you to search with an image. You use the phone’s camera to take a photo of something – a church, a monument, a painting or a sculpture – then wait a few seconds for the image-recognition software to scan it, before being offered a full range of information about it. The implications for travel are huge.
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.
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.
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.”
Last Friday was a scramble for government security personnel and independent privacy advocates, and should also have stood out to anyone concerned with the growth of online commerce, civic action, and social networking. The U.S. government's Office of Management and Budget, which is the locus of President Obama's drive toward transparency and open government, popped out three major initiatives that combine to potentially change the landscape for online identity and privacy, not only within government but across the Internet.
In this blog I'll summarize the impacts of all three documents, as well as the next steps that I see necessary in these areas. The documents (all distributed as PDFs, which is not the easiest format to draw commentary) are:These documents are not long, but the complexity of the policy areas they address ensure that no blog could cover everything of importance, nor could a single commentator like me provide a well-rounded view. I'll focus on the changes they make to policies that are known to require change, with a "job well done" pat on the back. In highlighting gaps and omissions, I'll deliberately swim around the shoals that others have loudly pointed to already, focusing instead on problems that I believe deserve more attention.
- A discussion draft of the National Strategy for Trusted Identities in Cyberspace. Comments can be viewed and entered on a feedback site.
- An OMB Memorandum on Guidance for Online Use of Web Measurement and Customization Technologies.
- An OMB Memorandum on Guidance for Agency Use of Third-Party Websites and Applications.
At the corner of Lakeland Avenue and Maple Avenue overlooking Lake Monona are two well-preserved Late Woodland animal effigies now referred to as a lynx and a bear. These mounds were originally part of a dense and extensive cluster of mounds that extended along the north shore of Lake Monona. Once part of the Simeon Mills farm, this site was still a favored Winnebago campground as late as the late 19th century. Most of the mound cluster, which included a bird effigy with a reported wingspan of 568 feet, was destroyed by turn-of-the-century residential development. Nearby, the beautiful sculpture, entitled "Let the Great Spirits Soar," was carved by Harry Whitehorse, a Winnebago whose ancestors have lived in the Four Lakes area for hundreds of years. The sculpture was carved from a storm-damaged hackberry tree and honors his Indian ancestors and the effigy mound builders.
If we need any further illustration of the potential threats to our own economy from uncontrolled borrowing, we have only to look to the struggle to maintain the common European currency, to rebalance the European economy, and to sustain the political cohesion of Europe. Amounts approaching a trillion dollars have been marshaled from national and international resources to deal with those challenges. Financing can buy time, but not indefinite time. The underlying hard fiscal and economic adjustments are necessary.
As we look to that European experience, let’s consider our own situation. We are not a small country highly vulnerable to speculative attack. In an uncertain world, our currency and credit are well established. But there are serious questions, most immediately about the sustainability of our commitment to growing entitlement programs. Looking only a little further ahead, there are even larger questions of critical importance for those of less advanced age than I. The need to achieve a consensus for effective action against global warming, for energy independence, and for protecting the environment is not going to go away. Are we really prepared to meet those problems, and the related fiscal implications? If not, today’s concerns may soon become tomorrow’s existential crises.
I referred at the start of these remarks to my sense five years ago of intractable problems, resisting solutions. Little has happened to allay my concerns. But, of course, it is not true that our economic problems are intractable beyond our ability to react, to make the necessary adjustments to more fully realize the enormous potential for improving our well-being. Permit me a note of optimism.
A few days ago, I spent a little time in Ireland. It’s a small country, with few resources and, to put it mildly, a troubled history. In the last twenty years, it took a great leap forward, escaping from its economic lethargy and its internal conflicts. Responding to the potential of free and open markets and the stable European currency, standards of living have bounded higher, close to the general European level. Instead of emigration, there has been an influx of workers from abroad.
It started with an email sent to the Chevrolet employees at their Detroit headquarters and warned them not to use the word Chevy in lieu of the far more formal Chevrolet. GM PR people added that there was a plastic jar put into the hallway there so that each time someone heard another use the now "forbidden" word, they would deposit money as a personal penance. This decision, they said, was simply protecting the brand image of Chevrolet, much the way Coke or Apple protected its image. The memo was signed by the President of Chevrolet and GM's Vice President for Marketing.
Apparently at Ed Whitacre's new GM, morons have retaken the institution.
Are they not aware that "Chevy" has been an affectionate nickname for Chevrolet for at least 80 years and is not likely to go away? Did these executives not know that "Coke" is to "Coca-Cola" what "Chevy" is to "Chevrolet"?
People don't call their computers "Apple" -- "Mac" being to "Macintosh" what "Chevy" is to "Chevrolet" -- and certainly nobody calls anything "my Apple iPod."
Congress looked serious about finance reform – until America's biggest banks unleashed an army of 2,000 paid lobbyists.
t's early May in Washington, and something very weird is in the air. As Chris Dodd, Harry Reid and the rest of the compulsive dealmakers in the Senate barrel toward the finish line of the Restoring American Financial Stability Act – the massive, year-in-the-making effort to clean up the Wall Street crime swamp – word starts to spread on Capitol Hill that somebody forgot to kill the important reforms in the bill. As of the first week in May, the legislation still contains aggressive measures that could cost once- indomitable behemoths like Goldman Sachs and JP Morgan Chase tens of billions of dollars. Somehow, the bill has escaped the usual Senate-whorehouse orgy of mutual back-scratching, fine-print compromises and freeway-wide loopholes that screw any chance of meaningful change.
The real shocker is a thing known among Senate insiders as "716." This section of an amendment would force America's banking giants to either forgo their access to the public teat they receive through the Federal Reserve's discount window, or give up the insanely risky, casino-style bets they've been making on derivatives. That means no more pawning off predatory interest-rate swaps on suckers in Greece, no more gathering balls of subprime shit into incomprehensible debt deals, no more getting idiot bookies like AIG to wrap the crappy mortgages in phony insurance. In short, 716 would take a chain saw to one of Wall Street's most lucrative profit centers: Five of America's biggest banks (Goldman, JP Morgan, Bank of America, Morgan Stanley and Citigroup) raked in some $30 billion in over-the-counter derivatives last year. By some estimates, more than half of JP Morgan's trading revenue between 2006 and 2008 came from such derivatives. If 716 goes through, it would be a veritable Hiroshima to the era of greed.
Consumer Watchdog continues to push its case that Google Inc.'s behavior necessitates antitrust scrutiny, releasing a report that alleges that the company is abusing its dominance in online search to direct users to its own services.
The study cites online traffic data that the Santa Monica group claims show the Mountain View Internet giant seized large portions of market share in areas like online maps, video and comparison shopping after its search engine began highlighting links to its products in results.
Google called the report's methodology and premise flawed and said its practices are designed to benefit users.
Amid all the doom and gloom, one sector in the country’s economy has a bright future and promises high yields.
Despite a deep recession that sent gross domestic product plunging 15 per cent last year, some budding domestic agribusinesses reported double-digit growth.
Agriculture was one of the few economic sectors to grow, albeit a small 0.2 per cent rise.
But to see the real potential, one must look further ahead. Global demand for food is expected to surge in coming decades. And Ukraine is well positioned to benefit.
With its rich black soil, favourable climate and proximity to markets, experts say the country could go far beyond regaining its position as the breadbasket of Europe.
“Ukraine is already among the top five grain exporters in the world,” says Andriy Yarmak, an agribusiness expert. “With investment, it could double its recent annual harvests and “become one of the top exporters of meat in about 10-15 years”.
Google has mapped every wireless network in Britain in order to use the information for commercial purposes, it has emerged.
Every WiFi wireless router – the device that links most computer owners to the internet - in every home has been entered into a Google database.
The information was collected by radio aerials on their Street View cars, which have now photographed almost every home in the country.
The data is then used on Google's Maps for Mobile application to locate mobile phones such as iPhones in order for users to access information relevant to the area such as restaurants, cinemas, theatres, shops and hotels.
The project had remained secret until an inquiry in Germany earlier this month in which Google was forced to admit that it “mistakenly” downloaded emails and other data from unsecured wireless networks where they we
In 1910, two men set out to be the first to reach the South Pole in a race that would be both heroic and tragic. The men had different reasons for their journeys, took different routes and made different decisions that would ultimately seal their respective fates, and those of their teams.
The American Museum of Natural History delves into this storied event to bring visitors as close as possible to this historic event and the people involved in their new exhibit, “Race to the End of the Earth,” starting May 29. Artifacts, photographs, replicas and models give life to the two rivals and their treacherous 1,800-mile marches to the center of Antarctica.
Robert Falcon Scott set off from Wales on July 15, 1910 on what was originally intended to be a primarily scientific expedition, but which quickly morphed into a quest to make history on behalf of the British Empire.
Meanwhile, Norwegian explorer Roald Amundsen, whose plan to reach the North Pole first had been thwarted by both Frederik Cook and Robert Peary, had secretly turned his sights on the South Pole. He left Oslo in June 3, 1910 with the intent of beating Scott to his goal.
It's hard to wrap your brain around the numbers, to make sense of what they portend. Mexico, home to the world's richest man, has had more than 10,000 people killed -- often horrifically -- since January 2007, just a month after President Felipe Calderon declared a literal war on drugs in his country.I visited Juarez 26 years ago.... during a trip into Mexico. The people were wonderful to a stranger.
Calderon has flooded the country with nearly 50,000 soldiers and federal police to combat the various regional cartels -- Juarez, Sinaloa, Gulf and Zetas -- mostly in the northern and northwest parts of Mexico. The United States, through the Merida Initiative, has committed $1.4 billion to fund the effort. The results have been less than stellar.
According to the Los Angeles Times (the only major U.S. newspaper that has been extensively covering this political and social calamity), not only has the military racked up more than 3,400 alleged violations with Mexico's human rights commission, but in Juarez, the bloodiest of this war's battlefields -- if you can call a city of about 1.2 million people a battlefield -- the army's presence coincided with an increase in slayings. Since 2008, more than 4,000 people have been killed there, though Juarez was being patrolled by about 10,000 troops and federal police. In 2007, there were about 2,300 drug-related killings -- in the entire country.
Habeas Corpus: From England to Empire. By Paul Halliday. Harvard University Press; 502 pages; $39.95 and £29.95. Buy from Amazon.com, Amazon.co.uk
WHEN discussing habeas corpus or the “Great Writ of Liberty”, as the most revered legal device of the Anglophone world is often known, jurists and civil libertarians tend to become misty-eyed. In 1777 Charles James Fox, a radical British politician, described habeas corpus during a parliamentary debate on its suspension as “the great palladium of the liberties of the subject” and deplored the “insolence and temerity” of those “who could thus dare to snatch it from the people”.
Nearly 230 years later, in an impassioned attack from the Senate floor on the Bush administration’s bill to suspend habeas corpus for anyone determined to be an “unlawful enemy combatant”, Barack Obama declared: “I do not want to hear that this is a new kind of world in which we face a new kind of enemy.” Another senator, Arlen Specter, roared: “The right of habeas corpus was established in the Magna Carta in 1215…what the bill seeks to do is set back basic rights by some 900 years.” In Britain, Lord Hoffmann, a law lord reviewing government “control orders” to detain terrorist suspects in 2007, thundered: “Such is the revulsion against detention without charge or trial, such is this country’s attachment to habeas corpus, that the right to liberty ordinarily trumps even the interests of national security.”
Energy Secretary Chu gave a talk at the EIA/SAIS Energy Conference on April 6-7. I want to share a few highlights of it, and give my impression. Both the Powerpoint slides and audio can be accessed at this link.
My general view of the talk is that Chu is extremely optimistic, in terms of what he thinks can be done. He also fails to tell listeners what our real problems are.
Wow! Slide 2 indicates that Chu thinks America has the opportunity to lead the world in a new industrial revolution. How does he think that is going to be done?
The first industrial revolution was during a time of increasingly available energy, because of the new use of coal. That is very unlikely in the future, both because of peak oil, and because of hoped-for constraints on fossil fuel use because of climate change issues. Net energy available to society is likely to be going down, not up! It is hard to understand an industrial revolution under those circumstances, unless it is a retooling to a much lower level--but later slides make it clear that is not what he is thinking of.
Iceland | From the financial crisis to open data
In 2008 in Iceland the financial system imploded. "Not surprisingly, this has led to a demand for more transparency, more access to public data and more effective communication by the government. All of a sudden Open Data is seen as a high priority among various lobby groups, branches of government and in restoration planning" says Hjalmar Gislason, an open data activist and member of the Open Knowledge Foundation’s Working Group on EU Open Data. In a long and detailed post, Gislason explains how this is not just part of the "momentum" open data is gaining in Europe, but a further step in a path that started in late '90s.
The Icelandic Modern Media Initiative and the presence of Wikileaks surely have a positive impact on the whole scenario and there is no doubt they will help boosting any future open data bill. The effects will be seen soon: "In December a rare cross-party parliamentary proposal (the first step in passing new legislation) was made, proposing a “default open” strategy for any public sector data. The Prime Minister’s Office has formed a committee that is to propose changes and improvements in legislation and suggest how to define the boundaries between data that is to be open and data that shall remain closed."
Dear Mr. Zuckerberg,
I was astonished to discover that, despite the concerns of users and severe criticism from consumer activists, "Facebook" would like to relax data protection regulations on the network even further. Your current privacy policy states that in future user data is to be automatically passed on to third parties. These parties are supposed to comprise previously vetted operators of websites and applications. Anyone who does not want this to happen must take action themselves and use the opt-out function. I use the Internet every day, both professionally and privately, and am a member of several social networks, including Facebook. Social networks are an enrichment and it is difficult to imagine our lives without them. Networks such as Facebook link millions of people across national boundaries, and it is for this very reason that particular importance must be attached to protecting privacy. As you know, I, in my capacity as Federal Minister of Consumer Protection, am striving to ensure that personal data on the Internet is protected. Private information must remain private - I think that I speak for many Internet users in this respect. Unfortunately, Facebook does not respect this wish, a fact that was confirmed in the most recent study by the German consumer organisation "Stiftung Warentest". Facebook fares badly in this study. Facebook was graded as "poor" in respect of user-data policy and user rights. Facebook also refused to provide information on data security - it was awarded a "5" (= poor) in this category as well.
It is therefore all the more astounding that Facebook is not willing to eliminate the existing shortcomings regarding data protection, but is instead going even further. Decisions such as this will not engender trust in an enterprise in the long term.
China's insomniac twitterati were on fire this afternoon U.S. time, powered no doubt by much caffeine and sugar in the the wee hours of the morning in China. Half an hour before Google's David Drummond posted his announcement that Google.cn is now effectively operating from Google.com.hk, Guangzhou-based open source programmer @LEMONed broke the news that google.cn was being redirected to the Hong Kong service. Reacting to the news, @wentommy quipped: "One Google, One World; One China, No Google."
As of now (still early morning in Beijing), Google.com.hk is accessible from mainland China although specific search results for sensitive terms result in a browser error - or in other words, are blocked. Same as it's always been for sensitive searches on Google.com from inside mainland China. This is network filtering and would happen automatically as part of the "great firewall" Internet filtering system.
The ball is now in the Chinese government's court in two ways:
1) Whether they will block all of google.com.hk, which until now has not been blocked. If they are smart they will just leave the situation as is and stop drawing media attention to their censorship practices. The longer this high profile fracas goes on, the greater Chinese Internet users awareness will be about the lengths to which their government goes to blinker their knowledge of the world. That may inspire more people to start learning how to use circumvention tools for getting around the censorship. Chinese censorship is only effective if a large percentage of the population isn't very conscious of what they're missing. As I like to explain it: if you're born with tunnel vision you assume it's normal until somehow you're made aware that life without tunnel vision is both possible and much better. The longer this story remains in the headlines, the more people will become conscious of their tunnel vision and think about ways to eliminate it.
A taxi pulled up to Apple's Fifth Avenue store one recent morning, and while the meter was running a pair of tourists dashed out to have their photos taken near the entrance, a glass cube of such incorporeal lightness that it seems in danger of floating away.
Had those architectural pilgrims arrived a minute later, they might have noticed a 70-ish man in a rumpled blue blazer struggling to balance an overpacked briefcase on a rolling suitcase. He was hatless, coatless, and tieless, and his shirt pocket was weighed down by a fistful of fine Japanese pencils.
It was the prizewinning Pennsylvania architect Peter Bohlin, stopping by to kick the tires on his little creation, which he first sketched for Apple chairman Steve Jobs using one of his ever-present Itoya pencils. Told that tourists had photographed it with their iPhones, Bohlin chuckled and said, "I hear that happens a lot."
Barely four years after Apple opened the store in the basement of the General Motors tower, Bohlin's ethereal one-story structure - a glorified vestibule, really - has become a must-see attraction as well as Apple's highest-grossing location. According to Cornell University scientists who analyzed 35 million Flickr images, the Cube is the fifth-most-photographed building in New York, the 28th worldwide.
Let me begin by saying that I'm tremendously honored to be here doing the welcoming keynote at SXSW. I have a huge feeling of warmth whenever I think about SXSW. Part of this is deeply personal - I met my soulmate here. I have met countless friends here. And made more professional connections than I can possibly enumerate. Walking down Red River fills me with a flash of fun memories.
What’s powerful about SXSW is first and foremost the people. From there, the content spills out beautifully. But as we think of the power of this conference to bring people together, I want to expressly call out the amazing work of Hugh Forrest, your fearless organizer. Hugh has done a phenomenal job of bringing diverse groups here to Austin to engage with one another. And for that, I’m eternally grateful.
For those of you who are old-timers, you know how special this conference is. For those of you who are new here, you're going to have a fantastic time! Just one bit of advice: beware of the tequila and, especially, of any future colleagues who may offer you tequila.
"The OECD rates Canada's banks as the safest in the world - the United States comes in fortieth, two places behind Botswana."
-- From I.O.U., by John Lanchester
There's always a pile of new books near my desk; currently, most of them deal with the history of the financial crisis. When time allows I open a couple more, read them and mark key points with highlighters for easier reference. It's always gratifying to find a passage in which a well-regarded economics writer makes the same points I have in my work, but I like books even better when they teach me things I did not already know.
An example: Barry Rithholtz, a market commentator, put the total cost of the current bailout in terms that most anyone can understand. It is now more than the nation spent for "The Marshall Plan, the Louisiana Purchase, the Apollo moon landings (and all costs of NASA's space flights), the Korean War, the Vietnam War, FDR's New Deal, the Invasion of Iraq and the 1980s Savings and Loan Scandal, combined and adjusted for inflation."
That statement alone should have the public up in arms, demanding smart actions that will make sure it never happens again.
The books I've been reading lately also cover the fundamental economic theories of both John Maynard Keynes and Milton Friedman. Keynes is known for promoting government deficit spending in hard times, while Friedman believes in deregulating and privatizing everything. What I now find interesting is that nobody carrying the banner of either of these two economic giants seems to get Keynes' or Friedman's fundamental economic viewpoints entirely right.
Antitrust lawyer and Open Book Alliance leader Gary Reback has been called the “antitrust champion” and the “protector of the marketplace” by the National Law Journal, and has been at the forefront of many of the most important antitrust cases of the last three decades. He is one of the most vocal opponents of the Google Books settlement. I interviewed Reback a few months ago, and Google Books was one of the topics we discussed. In the column below, Reback discusses Google Books and its ties to Google search.
This Thursday leaders of the international publishing industry will watch with bated breath as a federal judge in New York hears arguments over whether to approve the Google Book Settlement.
More a complicated joint venture among Google and five big New York publishers than the resolution of pending litigation, the proposed settlement once promised unprecedented access to millions of out-of-print books through digital sales to consumers and online research subscriptions for libraries. But with the passage of time and the ability to examine the deal more closely, the promises proved illusory. The big publishers, as it turns out, have reserved the right to negotiate secret deals with Google for the books they claim through the settlement (pdf).
Meanwhile, torrents of outrage rained down on the New York court – from authors whose ownership rights will be appropriated through the settlement’s procedures, from librarians fearful of price exploitation by Google, from privacy advocates worried that Google will monitor the reading habits of library patrons, from libertarians incensed over the use of a legal procedure to effect the widespread appropriation of property, from digital booksellers concerned about Google’s unfair advantage in the marketplace.
This Cham Ruins panorama (click to view) was captured in My Son, Vietnam during the month of April, 2007 by Jim Zellmer
Another panoramic scene.
On Tuesday, the Icelandic parliament is expected to introduce a measure aimed at making the country an international center for investigative journalism publishing, by passing the strongest combination of source protection, freedom of speech, and libel-tourism prevention laws in the world.
Supporters of the proposal say the move would make Iceland an “offshore publishing center” for free speech, analogous to the offshore financial havens that allow corporations to hide capital from authorities. Could global news organizations with a home office in Reykjavík soon be as common as Delaware corporations or Cayman Islands assets?
“This is a legislative package to create a haven for freedom of expression,” Icelandic member of parliament Birgitta Jónsdóttir confirmed to me, saying that a proposal for comprehensive media law reform will be filed in parliament on Tuesday, and that whistle-blowing specialists Wikileaks has been involved in drafting it. There have been persistent hints of an Icelandic media move in recent weeks, including tweets from Wikileaks and a cryptic message from the newly created @icelandmedia Twitter account.
The text of the proposal, called the Icelandic Modern Media Initiative, is not yet public, but the most detailed evidence comes from a video of a talk by Julian Assange and Daniel Schmitt of Wikileaks, given at the Chaos Communications Congress hacker conference in Berlin on Dec. 27:
More than a million spectators gathered before the Capitol on a frosty January afternoon to witness the inauguration of Barack Obama, who promised in his campaign to change Washington’s mercenary culture of lobbyists, special interest influence and backroom deals. But within a few months of being sworn in, the President and his top aides were sitting down with leaders from the pharmaceutical industry to hash out a deal that they thought would make health care reform possible.
Over the following months, pharmaceutical industry lobbyists and executives met with top White House aides dozens of times to hammer out a deal that would secure industry support for the administration’s health care reform agenda in exchange for the White House abandoning key elements of the president’s promises to reform the pharmaceutical industry. They flooded Congress with campaign contributions, and hired dozens of former Capitol Hill insiders to push their case. How they did it—pieced together from news accounts, disclosure forms including lobbying reports and Federal Election Commission records, White House visitor logs and the schedule Sen. Max Baucus releases voluntarily—is a testament to how ingrained the grip of special interests remains in Washington.
This Cham Ruins panorama (click to view) was captured in My Son, Vietnam during the month of April, 2007 by Jim Zellmer
Another panoramic scene.
At first glance, McLeod’s Tyre Shop in Lucedale, Mississippi, seems an unlikely venue for a political salon. It is a large, spare room, its contents pushed to the corners as if by an invisible centrifugal force, or maybe the weak wind of the ceiling fan. To the right of the entrance, four tyres stand on tiny podiums like sculptures in an art gallery. In the far right-hand corner of the room, a large 1920s stove slumbers beneath a Mississippi State football flag, which Doug McLeod hung to taunt his rivals from Ole Miss – the University of Mississippi. And in the far left-hand corner, a long counter is crowded with well-thumbed copies of every newspaper (local, state and national) from the past two weeks – kindling for starting and settling scores.
“A Mississippi lady once asked me where I went to church. I told her Sacred Heart and she said, ‘Well, we all have to worship somewhere, don’t we?’”
We walk in at the tail end of an argument between four men, just in time for McLeod to jam his finger into one of the newspapers and say, with an air of finality, “And that’s why they should raise interest rates.” McLeod has owned this tyre shop for more than 30 years, and in that time he has established himself as a local character and the shop as a destination: a place where he and others can hold forth. The scene is both chaotic and relaxed, with high-energy McLeod spinning like a top while visitors sit or lean, idling on about all subjects but their tyres.
The men assembled here, in one of the most Republican counties in the American deep south, are conservative. In fact, the latest demographics say they – southern, white males aged over 35 – are the Republican party. Despite differences on many subjects – football, Ford trucks, fiscal policy – they all agree that their interests are not represented in Washington, not by Barack Obama and the Democrats and not even by their own party.
The world's largest Internet search company and the world's most powerful electronic surveillance organization are teaming up in the name of cybersecurity. Under an agreement that is still being finalized, the National Security Agency would help Google analyze a major corporate espionage attack that the firm said originated in China and targeted its computer networks, according to cybersecurity experts familiar with the matter. The objective is to better defend Google -- and its users -- from future attack.
Google and the NSA declined to comment on the partnership. But sources with knowledge of the arrangement, speaking on the condition of anonymity, said the alliance is being designed to allow the two organizations to share critical information without violating Google's policies or laws that protect the privacy of Americans' online communications. The sources said the deal does not mean the NSA will be viewing users' searches or e-mail accounts or that Google will be sharing proprietary data.
The partnership strikes at the core of one of the most sensitive issues for the government and private industry in the evolving world of cybersecurity: how to balance privacy and national security interests. On Tuesday, Director of National Intelligence Dennis C. Blair called the Google attacks, which the company acknowledged in January, a "wake-up call." Cyberspace cannot be protected, he said, without a "collaborative effort that incorporates both the U.S. private sector and our international partners."
The door of a dry-cleaner-size storefront in an industrial park in Wareham, Massachusetts, an hour south of Boston, might not look like a portal to the future of American manufacturing, but it is. This is the headquarters of Local Motors, the first open source car company to reach production. Step inside and the office reveals itself as a mind-blowing example of the power of micro-factories.
In June, Local Motors will officially release the Rally Fighter, a $50,000 off-road (but street-legal) racer. The design was crowdsourced, as was the selection of mostly off-the-shelf components, and the final assembly will be done by the customers themselves in local assembly centers as part of a “build experience.” Several more designs are in the pipeline, and the company says it can take a new vehicle from sketch to market in 18 months, about the time it takes Detroit to change the specs on some door trim. Each design is released under a share-friendly Creative Commons license, and customers are encouraged to enhance the designs and produce their own components that they can sell to their peers.
The Rally Fighter was prototyped in the workshop at the back of the Wareham office, but manufacturing muscle also came from Factory Five Racing, a kit-car company and Local Motors investor located just down the road. Of course, the kit-car business has been around for decades, standing as a proof of concept for how small manufacturing can work in the car industry. Kit cars combine hand-welded steel tube chassis and fiberglass bodies with stock engines and accessories. Amateurs assemble the cars at their homes, which exempts the vehicles from many regulatory restrictions (similar to home-built experimental aircraft). Factory Five has sold about 8,000 kits to date.
Greetings. About a week ago, in Google and the Battle for the Soul of the Internet, I noted that:Even here in the U.S., one of the most common Internet-related questions that I receive is also one of the most deeply disturbing: Why can't the U.S. require an Internet "driver's license" so that there would be no way (ostensibly) to do anything anonymously on the Net?
After I patiently explain why that would be a horrendous idea, based on basic principles of free speech as applied to the reality of the Internet -- most people who approached me with the "driver's license" concept seem satisfied with my take on the topic, but the fact that the question keeps coming up so frequently shows the depth of misplaced fears driven, ironically, by disinformation and the lack of accurate information.
So when someone who really should know better starts to push this sort of incredibly dangerous concept, it's time to bump up to orange alert at a minimum, and the trigger is no less than Craig Mundie, chief research and strategy officer for Microsoft.
At the World Economic Forum in Davos two days ago, Mundie explicitly called for an "Internet Driver's License": "If you want to drive a car you have to have a license to say that you are capable of driving a car, the car has to pass a test to say it is fit to drive and you have to have insurance."
"I am not making a political statement with this video,” writes the photographer Grewe, a tree-climbing arborist by day. “My intentions are purely artistic. The imagery is intense and I found audio to compliment it.”
We live in a world of great and increasing complexity, where even the most expert professionals struggle to master the tasks they face. Longer training, ever more advanced technologies—neither seems to prevent grievous errors. But in a hopeful turn, acclaimed surgeon and writer Atul Gawande finds a remedy in the humblest and simplest of techniques: the checklist. First introduced decades ago by the U.S. Air Force, checklists have enabled pilots to fly aircraft of mind-boggling sophistication. Now innovative checklists are being adopted in hospitals around the world, helping doctors and nurses respond to everything from flu epidemics to avalanches. Even in the immensely complex world of surgery, a simple ninety-second variant has cut the rate of fatalities by more than a third.Looks like a must read.
In riveting stories, Gawande takes us from Austria, where an emergency checklist saved a drowning victim who had spent half an hour underwater, to Michigan, where a cleanliness checklist in intensive care units virtually eliminated a type of deadly hospital infection. He explains how checklists actually work to prompt striking and immediate improvements. And he follows the checklist revolution into fields well beyond medicine, from disaster response to investment banking, skyscraper construction, and businesses of all kinds.
An intellectual adventure in which lives are lost and saved and one simple idea makes a tremendous difference, The Checklist Manifesto is essential reading for anyone working to get things right.
”Whoever you are, I have always depended on the kindness of strangers”. The last line of Tennessee Williams’ A Streetcar Named Desire – uttered by its desperate heroine to the doctor taking her to a mental asylum – is an apt summary of the US financial sector in 2009.
As the crisis abated, banks took maximum advantage of the kindness of taxpayers and regulators to return to their core business: making money for shareholders and employees.
Ultra-low interest rates, dwindling competition and pent-up demand for their services sparked a renaissance in profits and share prices of the financial institutions that emerged from the turmoil in reasonable shape.
The question is whether history will repeat itself, or even just rhyme, this year. Here are my ten, utterly personal and non-exhaustive, predictions for the year ahead in US finance.
1) Strangers will be a lot less kind. With banks boasting about their new-found health, regulators will pull the plug on most of the measures they introduced to drag the financial industry back from the brink. A host of acronyms (Tarp, Talf, PPIP, TLGP) will be forgotten but not missed.
Nothing makes a person sound smarter than articulating some huge idea about how the world is going to change, or how they can change it, over the coming years.
A big idea can lead to countless books, TV appearances, and a nice stream of speaking fees at conferences across the country.
Big ideas -- the likes of which you might hear from Malcolm Gladwell or the Freaknomics authors -- make for excellent food for thought and intellectually stimulating discussion.
Every few years a man, or a woman, whose name is often familiar to few beyond the circle of their family and friends, is ambling through a more or less anonymous life when they find themselves ambushed by history. For many of these people, their life changes forever. Frequently, tragically, it ends; leaving behind an image that haunts the world long after they themselves have gone.Certainly a superior choice to the Political Class bank's CEO: Goldman's Lloyd Blankein.
Neda Soltan was such a person, a young beautiful woman who had studied philosophy, was now an aspiring singer, who found herself abruptly catapulted from the crowds of Tehran to become the face of protest against Iran’s repressive rulers; a symbol of rebellion against the fraudulent election that had just returned Mahmoud Ahmedinejad to power.
Like the nameless student who taunted that tank in Tiananmen Square, like Jan Palach, the Czech student who died after setting himself alight in Wenceslas Square in January 1969 to protest against the Soviet-led invasion of Czechoslovakia, Neda Soltan became the icon for the mutiny against Iran’s brutish regime as images of her face, and amateur footage of her murder by a sniper from the pro-government Basij militia, sprinted around the world. Like the photograph taken in South Vietnam of a bewildered young girl, the victim of a napalm attack, running naked down a road; and like the images of those skin-and-bones internees, standing semi-naked in the prison camp run by Bosnian Serb forces in Omarska in 1992, their ribs as prominent as xylophone keys, the image of Neda Soltan lying bleeding on a Tehran street has become the shorthand for the horrors of a conflict. With their beseeching eyes such images become, as the war photographer Don McCullin has pointed out, our modern versions of religious icons.
Under other circumstances, this would have been a year to savour in the long, rapid ascent of Lloyd Blankfein. Goldman Sachs, the investment bank he has led for three years, not only navigated the 2008 global financial crisis better than others on Wall Street but is set to make record profits, and pay up to $23bn (€16bn, £14bn) in bonuses to its 31,700 staff.
For Mr Blankfein, a scholarship boy from the Bronx whose first financial job at Goldman was selling gold coins in its commodities trading arm, has prospered to an extent that was implausible even 10 years ago, when it became a public company. Its influence has spread throughout the world, from New York and London to Shanghai and São Paulo.
A good slice of its success is attributable to Mr Blankfein, a tough, bright, funny (everyone remarks upon his unpretentious, wisecracking manner) financier who reoriented Goldman. Under his leadership, trading and risk-taking have pushed to the fore, reducing the influence of its investment banking advisers.
In 2009, however, Wall Street faced a wave of public anger at how banks that survived only with the assistance of taxpayers seemed unchanged and unrepentant. Goldman’s profitability, and suspicions that its deep links with governments around the world give it unfair advantages, made it a symbol of Wall Street greed and excess. It was described by the Rolling Stone writer Matt Taibbi as “a great vampire squid wrapped around the face of humanity”.
Perhaps that’s not the most polite way of putting it, but fact checking continues to emerge as a favorite practice of the public and certain elements of the press. (Though most of us in the press spend more time calling bullshit on each other than checking our own work.) In a recent column for Columbia Journalism Review, I stated that fact checking “is becoming one of the great American pastimes of the Internet age.”
Everybody loves to call bullshit. Thanks to the Internet, it’s easier than ever before.
The irony is that this trend emerges at a time when professional fact checkers, who traditionally worked at magazines, are being laid off. As a result, it appears as though the future of fact checking is in open, public and participatory systems and organizations, rather than the closed, professional systems traditionally used by large magazines. The Internet has made this shift possible.
Here’s a selection of fact checking-related news from the past year:
Twenty years after it was toppled, the area around the Berlin Wall is becoming a battleground again. In the streets neighbouring Berlin’s Todesstreifen – the once heavily guarded “death strip” on the east side – a new conflict is brewing. This time, it is between wealthy newcomers to the German capital’s regenerated core, and less monied residents, who fear being displaced.
Silvia Kollitz, an anti-development activist, is a resident of Prenzlauer Berg, a once dilapidated but now chic district of east Berlin. She feels her local area, with its pretty, tree-lined streets and sleek cafés, is being turned into a refuge for the rich. “The new buildings being put up are just for people with lots of money – who don’t use state schools and look at the rest of us as ‘local colour’ from behind their locked gates and high walls,” she says.
While Kollitz and fellow activists are seeking to halt these changes, they are fighting a strong tide. For the first time since the second world war, Berlin is attracting the international wealthy. Shaking off its gloomy cold war past, the city’s rebuilt centre is now packed with designer emporia, five-star hotels – Berlin has more than New York – and restaurants, sandwiched between Prussian palaces and new ministry buildings.
THERE is a widespread view, particularly among environmentalists and liberals, that big businesses are environmentally destructive, greedy, evil and driven by short-term profits. I know — because I used to share that view.Much more on Jared Diamond here.
But today I have more nuanced feelings. Over the years I’ve joined the boards of two environmental groups, the World Wildlife Fund and Conservation International, serving alongside many business executives.
As part of my board work, I have been asked to assess the environments in oil fields, and have had frank discussions with oil company employees at all levels. I’ve also worked with executives of mining, retail, logging and financial services companies. I’ve discovered that while some businesses are indeed as destructive as many suspect, others are among the world’s strongest positive forces for environmental sustainability.
The embrace of environmental concerns by chief executives has accelerated recently for several reasons. Lower consumption of environmental resources saves money in the short run. Maintaining sustainable resource levels and not polluting saves money in the long run. And a clean image — one attained by, say, avoiding oil spills and other environmental disasters — reduces criticism from employees, consumers and government.
More here.Asking to delay repayment on your debt - or defaulting, as the world’s press is carefully not calling it - has turned out not to be a good way for Dubai’s Sheikh Makhtoum to win friends and influence lenders to Nakheel, the property arm of the state-owned conglomerate Dubai World. Markets have tumbled worldwide; investors, reminded that governments can be subprime too, have dumped the debt of other dodgy-looking economies (including Greece); and in Dubai… everyone is on holiday.
What is surprising here is not that Dubai is on the verge of default. It is that anyone was willing to lend them ludicrous sums of money in the first place. Calculated Risk points out that Sir Win Bischoff, then at the (US) state-controlled Citi and now, appropriately enough, at the (British) state-controlled Lloyds Banking Group, was raving about raising $8bn of loans for Dubai last year and as recently as December chose to go public with a “positive outlook on Dubai”. Another non-surprise: state-controlled Royal Bank of Scotland was Dubai World’s biggest loan arranger. In the UK, Dubai World has been buying up a long list of property, according to Anita Likus at The Source; the assumption is it will shortly be selling.
Twenty years ago, on the night of November 9, 1989, following weeks of pro-democracy protests, East German authorities suddenly opened their border to West Germany. After 28 years as prisoners of their own country, euphoric East Germans streamed to checkpoints and rushed past bewildered guards, many falling tearfully into the arms of West Germans welcoming them on the other side. Thousands of Germans and world leaders gathered in Berlin yesterday to celebrate the "Mauerfall" - the dismantling of the Berlin Wall and German reunification - and to remember the approximately 100-200 who died attempting to cross the border over the years. Collected here are photographs both historic and recent, from the fall of the Berlin Wall. Be sure to pause on photos 12 - 15, and click them to see a fade effect from before to after. (38 photos total)
Now to the regional takeaway from our trip
We believe that few trust the United States. This is obvious in private conversation. And it is clear to all that confidence in the dollar is low. This is mostly mentioned only in private.
In public there is quiet response when the Treasury Secretary of the United States utters words about a strong dollar. Asians have heard that for years and with the many different accents of the various Treasury Secretaries. Geithner would serve the country better by ceasing to mouth the same words that his predecessor Snow and others used. He is not believed. Frankly, in some circles he is actually seen as an incompetent political hack. He is blamed by some for the insufficiency of the New York Fed under his presidency to supervise the primary dealers that failed – Countrywide, Bear Stearns, and Lehman. And the ethics issues surrounding the NY Fed under his tenure are viewed as appalling; this continues to surface in private conversations. Some folks are puzzled about why Obama maintains his support for Geithner. Some just attribute it to the President’s inexperience as a leader.
My takeaway is that our present Secretary of the Treasury is seriously and sustainably injuring the image of the United States. He has lost credibility. His actions are real and they impact markets. My conversations with those who are attempting to market GSE securities to Asians and getting rebuffed are validation enough for me on this point. When the Fed stops buying GSE mortgage backed securities, this reality will hit the markets in a re-pricing of that asset class. Spreads are going to widen.
The American federal budget deficits are worrisome everywhere. Policy promises from Washington to reduce them are greeted with great skepticism. Often they are privately described as American arrogance. Publicly, Asians are very polite and do not often subject their guests to embarrassing criticism. Privately they are quite candid. In my view they are correct: America is arrogant and seems to pretend that it is still the best and most trustworthy financial and capital market in the world. There is no basis for the US to have such a view of itself. We have squandered our reputational capital as a financial center leader.
A friend sends along the following chart. It examines the prior private sector experience of the cabinet officials since 1900 that one might expect a president to turn to in seeking advice about helping the economy. It includes Secretaries of State; Commerce; Treasury; Agriculture; Interior; Labor; Transportation; Energy; and Housing & Urban Development and excludes Postmaster General; Navy; War; Health, Education & Welfare; Veterans Affairs; and Homeland Security — 432 cabinet members in all.
As credit card companies face rising public anger, new regulation from Washington and staggering new rates of default and bankruptcy, FRONTLINE correspondent Lowell Bergman investigates the future of the massive consumer loan industry and its impact on a fragile national economy.
In The Card Game, a follow-up to the Secret History of the Credit Card and a joint project with The New York Times, Bergman and the Times talk to industry insiders, lobbyists, politicians and consumer advocates as they square off over attempts to reform the way the industry has done business for decades.
"The card issuers could do anything they want," Robert McKinley, CEO of CardWeb.com, tells FRONTLINE of the industry's unchecked power over consumers. "They could change your interest rate. They could impose an annual fee. They could close your account." High interest rates along with more and more penalty fees drove up profits for the industry, Bergman finds, as the banks followed the lead of an aggressive upstart: Providian Bank. In an exclusive interview with FRONTLINE, former Providian CEO Shailesh Mehta tells Bergman how his company successfully targeted vulnerable low-income customers whom Providian called "the unbanked."
"They're lower-income people-bad credits, bankrupts, young credits, no credits," Mehta says. Providian also innovated by offering "free" credit cards that carried heavy hidden fees. "I used to use the word 'penalty pricing' or 'stealth pricing,'" Mehta tells FRONTLINE. "When people make the buying decision, they don't look at the penalty fees because they never believe they'll be late. They never believe they'll be over limit, right? ... Our business took off. ... We were making a billion dollars a year."
Chef Dominique Crenn was raised in Versailles, France. She now makes an incredible Thanksgiving dinner, but when she first came to the U.S., the entire holiday threw her off.
She sat down with NPR's Steve Inskeep to discuss how she cooks for Thanksgiving.
"I was a little bit lost when I came here," she told Inskeep. "I had no idea what Thanksgiving was about."
In France, turkey is eaten at Christmas. So the American phenomenon of Thanksgiving turkey and dressing mystified her.
"Oh, a month before Christmas, we're gonna eat Turkey?"
But now, she's hooked. Crenn has been celebrating Thanksgiving for about 20 years. "This is a pretty cool holiday," she said.
Goldman Sachs apologised for its role in the financial crisis on Tuesday and pledged $500m over five years – or about 2.3 per cent of its estimated bonus and salary pool for 2009 – to help 10,000 US small businesses recover from the recession. The moves come as the bank tries to defuse a political and public backlash over its plans to share billions of dollars among top dealmakers after rebounding sharply from the turmoil and earning record profits in the first nine months of the year.
Lloyd Blankfein, Goldman’s chief executive, told a corporate conference in New York that the bank regretted taking part in the cheap credit boom that had fuelled the pre-crisis bubble. “We participated in things that were clearly wrong and have reason to regret,” said Mr Blankfein. “We apologise.”
Mr Blankfein also told the conference he wished he had not told the UK’s Sunday Times newspaper that Goldman did “God’s work” – a remark that was seized upon by the bank’s critics – and said it had been meant as a joke.
Mr Blankfein spoke hours before Goldman revealed plans to invest $500m over five years in business education, technical assistance and venture capital to help 10,000 small businesses across the US. The yearly amount of about $100m to be spent on the initiative – which will be overseen by a panel co-chaired by Warren Buffett, a Goldman investor – is equivalent to a good trading day at Goldman. In the third quarter, the bank had 36 days in which traders made more than $100m.
Mr Buffett told the Financial Times that the small business programme was not a response by the bank to recent criticism. “This is a big initiative,” he said. “This is not a one-day or one-year wonder. It’s a continuous programme.”
The financial crisis hasn't been kind to General Electric Co. Its stock has lost almost half its value, the government has stepped in to prop up its enormous financial arm, and sales have slumped in core industrial businesses.
But Chief Executive Jeffrey Immelt now has his eye on a huge new pool of potential revenue: Uncle Sam's stimulus dollars. Mr. Immelt, a registered Republican, quips about the shift in thinking in the nation's corner offices: "We're all Democrats now."
GE has high hopes for the strategy. It says that over the next three years or so it could bring in as much as $192 billion from projects funded by governments around the globe, such as electric-grid modernization, renewable-energy generation and health-care technology upgrades.
The company is just starting to see a payoff. Last month, for example, President Barack Obama announced $3.4 billion in government-stimulus grants for power-grid projects. About one-third of the recipients are GE customers. GE expects them to use a good chunk of that money to buy its equipment.
The government has taken on a giant role in the U.S. economy over the past year, penetrating further into the private sector than anytime since the 1930s. Some companies are treating the government's growing reach -- and ample purse -- as a giant opportunity, and are tailoring their strategies accordingly. For GE, once a symbol of boom-time capitalism, the changed landscape has left it trawling for government dollars on four continents.
East German documents provide a crucial piece of history, supporters of the project say, but putting them back together could take hundreds of years. A computerized system would help, but it's costly.Reporting from Berlin and Zirndorf, Germany, - Martina Metzler peers at the piles of paper strips spread across four desks in her office. Seeing two jagged edges that match, her eyes light up and she tapes them together.
"Another join, another small success," she says with a wry smile -- even though at least two-thirds of the sheet is still missing.
Metzler, 45, is a "puzzler," one of a team of eight government workers that has attempted for the last 14 years to manually restore documents hurriedly shredded by East Germany's secret police, or Stasi, in the dying days of one of the Soviet bloc's most repressive regimes.
Two decades after the heady days when crowds danced atop the Berlin Wall, Germany has reunited and many of its people have moved on. But historians say it is important to establish the truth of the Communist era, and the work of the puzzlers has unmasked prominent figures in the former East Germany as Stasi agents. In addition, about 100,000 people annually apply to see their own files.
Wal-Mart was the victim of a serious security breach in 2005 and 2006 in which hackers targeted the development team in charge of the chain’s point-of-sale system and siphoned source code and other sensitive data to a computer in Eastern Europe, Wired.com has learned.
Internal documents reveal for the first time that the nation’s largest retailer was among the earliest targets of a wave of cyberattacks that went after the bank-card processing systems of brick-and-mortar stores around the United States beginning in 2005. The details of the breach, and the company’s challenges in reconstructing what happened, shed new light on the vulnerable state of retail security at the time, despite card-processing security standards that had been in place since 2001.
In response to inquiries from Wired.com, the company acknowledged the hack attack, which it calls an “internal issue.” Because no sensitive customer data was stolen, Wal-Mart had no obligation to disclose the breach publicly.
Wal-Mart had a number of security vulnerabilities at the time of the attack, according to internal security assessments seen by Wired.com, and acknowledged as genuine by Wal-Mart. For example, at least four years’ worth of customer purchasing data, including names, card numbers and expiration dates, were housed on company networks in unencrypted form. Wal-Mart says it was in the process of dramatically improving the security of its transaction data, and in 2006 began encrypting the credit card numbers and other customer information, and making other important security changes.
“Wal-Mart … really made every effort to segregate the data, to make separate networks, to encrypt it fully from start to finish through the transmission, ” says Wal-Mart’s Chief Privacy Officer Zoe Strickland. “And not just in one area but across the different uses of credit card systems.”
Wal-Mart uncovered the breach in November 2006, after a fortuitous server crash led administrators to a password-cracking tool that had been surreptitiously installed on one of its servers. Wal-Mart’s initial probe traced the intrusion to a compromised VPN account, and from there to a computer in Minsk, Belarus.
A few weeks ago, shortly after Goldman Sachs reported its latest blowout quarter, the firm’s chief executive, Lloyd Blankfein, spoke at a Fortune magazine breakfast.
In normal times, Mr. Blankfein might have been forgiven for bragging a bit about the just-reported quarter — over $3 billion in profit on $12 billion in revenue. It had generated some $6 billion just in one division: fixed income. It had more than $160 billion in cash or cash equivalents on its balance sheet. And of course it had long since repaid, with interest, the $10 billion it had accepted from the Treasury Department during the darkest days of the crisis.
But of course those weren’t the numbers the media and the public had focused on in the wake of Goldman’s earnings. Instead, people were fixated on the $5.3 billion the firm had set aside for its executives’ year-end bonuses. Added to first and second quarter set-asides of $4.6 billion and $6.6 billion, the firm had put aside $16 billion so far this year for employee bonuses. Nearly 50 percent of the firm’s revenue was going toward compensation. And there was still one more quarter to go!
Was it fair, commentators kept asking, that barely a year after the taxpayers had essentially saved the financial system, this firm that took government capital should now be paying multimillion-dollar bonuses? Was it right? Which, not surprisingly, is what Fortune’s managing editor, Andrew Serwer, asked Mr. Blankfein within minutes of taking the stage.
In private, Goldman executives are scornful of the sentiment behind this question. Their view, in essence, is that they should be applauded for being able to pay such big bonuses, because it means their business is successful. People who want them to pay less, they believe, want them to fail.
But Mr. Blankfein, a charming, funny man who has been Goldman’s boss since 2006, is far too smart to say that out loud. Nonetheless, what he did say was revealing. Treasury’s original decision to use the Troubled Asset Relief Program to shore up the banks’ capital, Mr. Blankfein said, “was a sensible thing to do at the time.”
The new way of reading books arrived hesitantly. It exploited a novel technology, reflected changing public habits of consumption and radically altered the distribution and economics of the traditional publishing industry.
The paperback represented an intimidating revolution to the 1930s book industry. It took high literature to a far wider audience. But established publishers disdained it, fearing it would cheapen the industry and drive down profits. It might not have been – as its ancestor the pamphlet novel was in the 1840s – assailed as a threat to the “eyesight of a rising generation”, yet the reaction had much else in common with how the emergence of the electronic book is now being regarded.
At the Frankfurt Book Fair this week, the talk has been all about the impact of the e-book, with scores of sessions and seminars devoted to discussing the implications of devices such as Amazon’s Kindle and the Sony Reader. Another hot topic is Google’s digitisation of, so far, 10m books including about 9m still protected by copyright.
It will be business as usual for Goldman Sachs this morning. The bank will annoy a lot of people.
Goldman, the institution that came through last year’s financial crisis best – arguably the only pure investment bank left standing – will say how much money it made in the third quarter (a lot) and how many billions it has stored for bonuses (about $5.5bn towards a likely 2009 bonus pool of $23bn).
For believers in Goldman’s ethical standards and way of doing business, these are difficult times. Although it avoided the mistakes that brought down Bear Stearns and Lehman Brothers, forced Merrill Lynch into Bank of America’s arms, and prodded Morgan Stanley further into lower-risk retail broking, Goldman has become a whipping boy.
There is outrage that, having taken government money to survive the crash, Goldman is in such rude health that it will hand out billions in bonuses. Matt Taibbi, a Rolling Stone writer, caught the mood memorably by describing Goldman as “a giant vampire squid wrapped around the face of humanity”.
Such is Goldman’s importance to Wall Street and regulation that I am devoting a pair of columns to it. Today, I will discuss the Goldman problem (different and less egregious to what Mr Taibbi believes, but still a problem). Next week, I will suggest what should be done about it by regulators and the bank itself.
Goldman executives were wounded by how seriously Mr Taibbi’s piece was taken despite their riposte that vampire squids are small creatures that present no danger to humanity. He accused it of profiting from bubbles such as the US internet and housing booms, and of repeatedly “selling investments they know are crap” to retail investors.
This, they toss off with the certainty of wine-fuelled genius, also explains the rise in the gold price.Bank spreads are at record levels. Their cost of funds is nearly 0, while they lend it out at 4.99% or (much) greater. Plus, the fees.
Actually, I do not think that is how the bank risk paradox will play out.
There are going to be much larger write-offs and reserves taken at all the big banks, with the peak in reported bad news probably coming next year. However, the taxpayer will not be asked for more capital, and the Federal Reserve and Treasury will gradually dismantle the temporary support structures, just as they say.
How is this possible? Because the public will pay through usury, not taxation. There is a big difference, of course. Usury is less visible, and you cannot effectively vote against it.
Blood will flow, but it will do so not as a catastrophic bath for the banks, but as a gradual transfusion to them from their customers.
There will be headline risk for the banks' management and public securities, which is why I think that their CDS protection is too cheap at the moment.
One source of headline risk is the spectre of Federal Government reform of the financial system. God knows there is a good case to be made for de-cartelising the industry, but that is not going to happen.
"By buying U.S. Treasuries and mortgages to increase the monetary base by $1 trillion, Fed Chairman Ben Bernanke didn’t put money directly into the stock market, but he didn’t have to. With nowhere else to go, except maybe commodities, inflows into the stock market have been on a tear. The dollars he cranked out didn’t go into the hard economy, but instead into tradable assets."
— "The Bernanke Market," Wall Street Journal, July 15, 2009
"In the last week alone, the European Central Bank allocated the record sum of $619 billion to 1,1,00 financial institutions – at a paltry 1 percent interest rate. And yet the money is not going where the central banks want it to go, namely into the pockets of businesses and consumers – at least not at reasonable interest rates."
— "How German Banks are Cashing In on the Financial Crisis," Der Spiegel, July 1, 2009
Two weeks ago, in meetings with their North Texas dealers, both Toyota and Honda voiced concern about how the economic recovery was going to hold up over the next few quarters. It wasn’t public news yet in the States, but Japanese executives already knew that their imports and exports had fallen sharply through the summer. And, while our business media were cheerleading because the Dow Jones was once again flirting with 10,000, in Japan their exports had just fallen 36 percent; metal shipments to the U.S. were down by more than 80 percent, automobile shipments by 50 percent. This was a problem here, too: In August America’s dealers seriously needed Japanese vehicles to restock their depleted inventories.
Toyota and Honda took different tacks for the fourth quarter. Toyota said it will spend $1 billion in advertising to move the retail market. Honda, always more cautious in difficult times, said it would spend nothing during the same period. Honda added that it will keep dealer inventories at a 30-day supply of unsold vehicles, half the inventory considered normal.
hy is a soon-to-be success story gathering dust at TATA dealers across India? Much like the initial growing pains of the Ford Model T, the $2000 Nano currently lies on waiting list. Given the lopsided supply/demand and construction conflagrations with the government, I reckon enterprising Indians are flipping the Nanos living in parking lot limbo for profit. Still, my precious few moments sitting in somebody’s dusty Nano left me impressed. Not because it was a perfect machine: I saw automotive history in the making.
Rarely in America is a car designed around a vision: witness the overweight performance icons clawing for yesteryear’s glory, car based trucks and globally designed, badge engineered atrocities. Not with the TATA Nano: behold the homegrown hero.
The Nano is born from an undying need for affordable transportation in a country with a growing but repressed middle class. This group needs a family vehicle superior to tube frame rickshaws and 150cc motorcycles carrying four or more people. Yes, really: I saw a family of four riding a motorcycle through the congested, fast paced, life threatening streets of Bangalore. Make no mistake: a car at this price and size is the automotive embodiment of “If you Build It, They Will Come.”
It’s all about the lakhs; the Nano is designed around a price befitting the Indian working class. One look around the beast shows the good, bad and ugly of the situation.
Exterior fit and finish is respectable, until you spot the unfinished rear hatchback seams, hurriedly painted over. That stylish rear hatch is glued shut, so cargo is only accessible from the rear seat. And the list of price-conscious ideas doesn’t stop: three-lug wheels, single arm wiper blade and an adorable looking center exit exhaust.
Look past the grime and the disrepair and it is possible to see beautiful buildings in Cairo. But resurrecting the spirit of the city that used to be called the “Paris of the Orient,” is a daunting challenge.
The Sept. 14th Newsweek cover line — “Is Your Baby Racist?” — should have included a sub-head, “Is Dick Cheney a Butcher?”
Featured inside the magazine was a full-page, stand-alone picture of former Vice President Dick Cheney, knife in hand, leaning over a bloody carving board. Newsweek used it to illustrate a quote that he made about C.I.A. interrogators. By linking that photo with Mr. Cheney’s comment and giving it such prominence, they implied something sinister, macabre, or even evil was going on there.
I took that photograph at his daughter Liz’s home during a two-day assignment, and was shocked by its usage. The meat on the cutting board wasn’t the only thing butchered. In fact, Newsweek chose to crop out two-thirds of the original photograph, which showed Mrs. Cheney, both of their daughters, and one of their grandchildren, who were also in the kitchen, getting ready for a simple family dinner.
However, Newsweek’s objective in running the cropped version was to illustrate its editorial point of view, which could only have been done by shifting the content of the image so that readers just saw what the editors wanted them to see. This radical alteration is photo fakery. Newsweek’s choice to run my picture as a political cartoon not only embarrassed and humiliated me and ridiculed the subject of the picture, but it ultimately denigrated my profession.
Which brings up an interesting, and not trivial question: why is the U.S. , home of no anti-trust enforcement during the last eight years, home of raw capitalism, supposed home of competition, about to be without a single decent source of unbiased news? And why is Britain, socialist leader among English-speaking peoples, suddenly the Keeper of the Realm when it comes to objective news reporting? Who wouldn’t take the BBC over the U.S.’ National Public Radio? Who wouldn’t take the Financial Times over the WSJ? Or the Guardian over the NYT?The Financial Times is an excellent read (their iPhone app is better than either the Wall Street Journal's or the NY Times). I think the Wall Street Journal and New York Times have interesting articles from time to time. Kudos to the Financial Times for sticking to their knitting, as it were.
The British have not lost the ability to be “fair and balanced,” the self-mocking theme of Fox TV, although Rupert has certainly taken out a lot of the competition.
Why is it, for instance, that the best programs on U.S. politics, the Kennedy assassination, global warming, and even Israel – South African nuclear cooperation, have all come out of Britain? Why can they tell our news stories better than we can? Mostly, I think, they are just neutral. There is something strong in the British psyche that still believes in telling the truth, that still sees the news as news, and not as advertising conveyor belt. The U.S. has totally lost this view, with the exceptions noted above, and in some small papers, although many of those have gone their own sad, ad-driven route.
Indeed, in a time when owners are pointing to a lack of ads to support their product, I think they are missing the whole point: they are losing subscribers, and the ads are following.
Today, I read the FT religiously, the NYT increasingly, and the WSJ almost not at all. I’m not alone; several friends have recently canceled their WSJ subscriptions, so fed up are they with Murdoch’s machinations. I don’t see how the WSJ can survive, being a Murdoch bauble, even if he sees it as the crown jewel. What he thinks doeesn’t matter, or worse, matteres and is morally wrong, as advertisers on Fox have proven lately by dropping the Beck show like a stone.
A growing number of U.S. insurers are paying for patients to have medical procedures performed more cheaply overseas. And that's raising the profile of a few companies you've probably never heard of. Video: Bangkok Bypass Surgery
IN THE PAST THREE MONTHS, THE CREAKY Barron's staff has replaced a hip, two knees and undergone various nips and tucks. Based on average prices, these cost a total of at least $100,000. But abroad, say in Singapore, the tab would have been about $50,000, including stays in a private room, airfare and a vacation for the patients and their companions. Elsewhere in Asia, medical care is even cheaper. That's why more U.S. insurers are considering financing treatment for Americans willing to travel abroad. In fact, "medical tourism" could help rein in the health-care costs that devour 16% of America's gross domestic product.
That possibility is raising the profile of a few publicly traded companies you've probably never heard of: Thailand's Bumrungrad Hospital (ticker: BH.Thailand) and Bangkok Dusit Medical Services (BGH.Thailand), Singapore's Parkway Holdings (PWAY.Singapore) and Raffles Medical (RFMD.Singapore), and India's Apollo Hospitals (APHS.India). Says Prathap Reddy, the U.S.-trained cardiologist who founded Apollo in 1983 and is its chairman: "We bring excellent care at a cost benefit. If the U.S. were to cover all its people, there would be a demand/supply gap. India can step in with equivalent care at one-fifth the cost."
EARLIER this year Andrew Grove taught a class at Stanford Business School. As a living legend in Silicon Valley and a former boss of Intel, the world’s leading chipmaker, Dr Grove could have simply used the opportunity to blow his own trumpet. Instead he started by displaying a headline from the Wall Street Journal heralding the recent takeover of General Motors by the American government as the start of “a new era”. He gave a potted history of his own industry’s spectacular rise, pointing out that plenty of venerable firms—with names like Digital, Wang and IBM—were nearly or completely wiped out along the way.
Then, to put a sting in his Schumpeterian tale, he displayed a fabricated headline from that same newspaper, this one supposedly drawn from a couple of decades ago: “Presidential Action Saves Computer Industry”. A fake article beneath it describes government intervention to prop up the ailing mainframe industry. It sounds ridiculous, of course. Computer firms come and go all the time, such is the pace of innovation in the industry. Yet for some reason this healthy attitude towards creative destruction is not shared by other industries. This is just one of the ways in which Dr Grove believes that his business can teach other industries a thing or two. He thinks fields such as energy and health care could be transformed if they were run more like the computer industry—and made greater use of its products.
Dr Grove may be 73 and coping with Parkinson’s disease, but his wit is still barbed and his desire to provoke remains as strong as ever. Rather than slipping off to a gilded retirement of golf or gallivanting, as many other accomplished men of his age do, he is still spoiling for a fight.
Eirik Johnson’s quietly theatrical photographs carry the sense of a way of life and work that is on the cusp of slipping away. For four years, Seattle-born Johnson travelled through Oregon, Washington and northern California, around the former boomtowns that were built on the now-declining salmon and timber industries.
He describes the resulting series, published as Sawdust Mountain, as “a melancholy love letter of sorts, my own personal ramblings”. Many of Johnson’s works are informed by the epic, picturesque 19th-century landscapes of Carleton Watkins, who took some of the earliest known images of the region. In others, his use of space and colour pays homage to several living photographers.
Johnson’s images are rendered all the more intense by his palette, through which he uses the region’s faded light to emphasise the down-at-heel tones of the man-made environment. His muted colours are a counterpoint to William Eggleston’s photographs of the American south, whose “harsh bright light and colours … seemed like the mirror opposite of what I saw present in the northwest,” says Johnson.
When he boarded his flight from London to Oslo, Farouk al-Kasim, a young Iraqi geologist, knew his life would never again be the same. Norway was a country about as different as it was possible to imagine from his home, the Iraqi port city of Basra. He had no job to go to, and no idea of how he would make a living in the far north. It was May 1968 and al-Kasim had just resigned from his post at the Iraq Petroleum Company. To do so, he had had to come to the UK, where the consortium of western companies that still controlled most of his country’s oil production had its headquarters.
For all its uncertainties, al-Kasim’s journey to Norway had a clear purpose: he and his Norwegian wife, Solfrid, had decided that their youngest son, born with cerebral palsy, could only receive the care he needed there. But it meant turning their backs on a world of comforts. Al-Kasim’s successful career had afforded them the prosperous lifestyle of Basra’s upper-middle class. Now they would live with Solfrid’s family until he could find work, though he had little hope of finding a job as rewarding as the one he had left behind. He was not aware that oil exploration was under way on the Norwegian continental shelf, and even if he had known, it wouldn’t have been much cause for hope: after five years of searching, still no oil had been found.
But al-Kasim’s most immediate problem on arriving in Oslo that morning was how to fill the day: his train to Solfrid’s home town did not depart until 6.30pm. “I thought what I am going to do in these hours?” he says. “So I decided to go to the Ministry of Industry and ask them if they knew of any oil companies coming to Norway.”
“If you live in Birmingham,” declared Tony Blair when he was UK prime minister, “and you have an accident while you are, for example, in Bradford, it should be possible for your records to be instantly available to the doctors treating you.”
Not any more. Or not, at least, if the Conservatives win the next general election. For the Tories have pledged to scrap the country-wide version of the National Health Service’s electronic patient record.
Back in 2002, the idea of a full patient record, available anywhere in an emergency, was the principal political selling point for what was billed as “the biggest civilian computer project in the world”: the drive to give all 50m or so patients in England (the rest of the UK has its own arrangements) an all-singing, all-dancing electronic record. Roll-out was meant to start in 2005 and be completed by 2010.
Under a Conservative government, development of the local record – exchangeable between primary care physicians and their local hospitals – would continue. Nationally, clinicians would still be able to seek access to it when needed from the doctors who would hold it locally. But the idea of a national database of patients’ records, instantly available in an emergency from anywhere in the country, would disappear.
This may or may not matter, depending on your point of view. For many clinicians, the idea of an instantly available national record was always something of a diversion. It is access to a comprehensive record locally that is crucial for day-to-day care.
Nonetheless, the Conservatives’ decision to scrap the central database is a symbolic moment for a £12bn ($20bn, €14bn) programme that has struggled to deliver from day one. It is currently running at least four years late – and there looks to be no chance in the foreseeable future of its delivering quite what was promised.
.....
On top of that, while there was a £6bn budget for the 10-year central contracts, no money was earmarked for training, in spite of the lesson, from the relatively few successful installations of electronic records in US hospitals, that at least as much has to be spent on changing the way staff work as is spent on the systems themselves.
One thing I’ve learned over the years is this - screwing over your users while yelling “the lawyers made me do it!” rarely ends well. Particularly when the lawyers are just being lazy, and free speech rights are at stake.
Flickr really stepped in it this time. And they’ve sparked a free speech and copyright fascism debate that is unlikely to cool down any time soon.
Sometime last week they took down a photoshopped image of President Obama that makes him look like the Heath Ledger (Joker) character from The Dark Knight. The image was created and uploaded to Flickr by 20 year old college student Firas Alkhateeb while “bored over winter school break.” It was also later altered yet again by someone else and used to create anti-obama posters that went up in Los Angeles.
Thomas Hawk has a good overview of some of the other details, but the short version is the image was removed by Flickr sometime last week due to “due to copyright-infringement concerns.”
People are angry over the takedown. There are lots of pictures mocking President Bush on a Time Magazine cover on Flickr that haven’t been removed. And of the Heath Ledger Joker character.
Over the next decade, systems which create and store digital records of people's movements through public space will be woven inextricably into the fabric of everyday life. We are already starting to see such systems now, and there will be many more in the near future.
Here are some examples you might already have used or read about:These systems are marvellously innovative, and they promise benefits ranging from increased convenience to transformative new kinds of social interaction.
- Monthly transit swipe-cards
- Electronic tolling devices (FastTrak, EZpass, congestion pricing)
- Cellphones
- Services telling you when your friends are nearby
- Searches on your PDA for services and businesses near your current location
- Free Wi-Fi with ads for businesses near the network access point you're using
- Electronic swipe cards for doors
- Parking meters you can call to add money to, and which send you a text message when your time is running out
Unfortunately, these systems pose a dramatic threat to locational privacy.
Of all the planes to touch down in Oshkosh this week, one towers above all others. That’s the Airbus A380.
We’ve written about the 380 before, and it’s tough to call a plane that’s already in service at three different airlines experimental, but today Airbus gave us – and the rest of the crowd here – something much cooler than your typical commercial jet landing. Flying in from Toulouse (via Milwaukee) under the command of test pilot Terry Lutz, the 380 did multiple flybys over the airfield, showing off for the thousands of assembled plane watchers before touching down at 3:15 local time.
As the plane rolled to a stop, it’s four engines still roaring, we couldn’t help but be awed all over again by its sheer size: 239 feet long, 79 feet high, with a wingspan of almost 80 269 feet and weighing in at 610,000 pounds. Seeing the plane in the company of so many other things with wings (some of them not so small themselves) puts those numbers in perspective. And while it might seem silly to call an aircraft the size of the A380 graceful, there’s no other way to describe the way it gently turned and banked as it circled the airfield before making its final approach. We’ve made it clear from the start that we love this plane, and today in Oshkosh we found a reason to love it a little bit more.
The only way these big developments have been able to get planning permission is for a local authority to parcel together a big tract of land (usually formerly industrial or railway land, often formerly publicly owned) and to give over the whole thing to a developer who is charged with driving the “regeneration” that the public sector has largely lost the ability to conceive. Consequently, rather than the network of public streets interspersed with public spaces, private blocks and semi-private but accessible courtyards that forms the fabric of the traditionally complex city centre, we get the pseudo-civic space of the mall without walls. Protest in these spaces is banned, as is public gathering, distribution of leaflets, drinking, sleeping and, of course, photography. Yet there has been no outcry.
Particularly in the UK, we have become so inured to the smooth transition of public assets into private ownership that even the loss of our public spaces seems to us quite natural. I have been asked to stop taking photos of new office buildings from the public street outside, I have been stopped in malls, in piazzas and by canals. I have even been asked to stop taking notes. What Debord was calling for was a city in which what was important was not the way it looked or how many new shops it had but the multiplicity of ways in which it could be used. His way of subverting the structure of a Paris that had been conceived by Baron Haussmann, with wide avenues to enable an army swiftly to quell a revolution, was to walk across it on an aimless walk – the famous dérive – in which the flâneur concentrates on the mundane and the banal and does not allow his gaze to be directed to the formal or the ceremonial.
. . .
The Guatamalan architect Teddy Cruz, who works in the strange hinterlands between the wealth of San Diego and the poverty of Tijuana just across the border in Mexico, has called for a new system of measuring the success of a city – one based not on density of population or on the value of turnover and rent but on the frequency of social transactions. It represents a radical departure. The idea of regeneration that has emerged over the past couple of decades has been based solely on the generation of money. Big, retail-led and commercial schemes are encouraged, even subsidised, planning controls are loosened to accommodate them and civic democracy and local objections are overridden as the objectives of rising property prices, increased local taxes and the presence of “flagship” and “anchor” stores and brands becomes a planning Xanadu.
Summary: One indicator of the massive changes sweeping America is the destruction of longtime solid business models. This post discussed colleges; today we look at the news media. Tons of ink have been spilled on this, but IMO ignoring some likely outcomes.
The major news media are on a treadmill. Loss of credibility shrinks their audience, hence less revenue, hence reduced funding. Which reduces the quality of their product, hence even less audience. Worse is the loss of advertisers to new media (e.g., Craigslist and Google), which means less revenue, less funding for news collection, and smaller audiences.
This posts speculates about the future, what new models might emerge from this turmoil. Here are some guesses.
I don’t mean to slight Michael Jackson’s once-formidable talent, nor do I dismiss his troubled personal life. But have we become so frivolous as a nation that any entertainer’s tragic and untimely death warranted more news coverage — day after day after day — than the real issues that will confront each of us now and in the all-too-near future? Apparently so. Most of us know more about the last two days of Jackson’s life than we know about the negotiations in which Washington forced GM and Chrysler into bankruptcy. You certainly know more about Jackson’s death that the names on the list of the 25 individuals who destroyed the world’s financial system. Of course, none of the 25 has died; they still work at the same jobs.
Let Them Eat Cowboys?
Not to be overly dramatic, but this should remind any thinking person of the declining days of the Roman Empire. Its citizens refused to deal with the decay and legitimate problems of their cities and empire, instead demanding more and more coliseums be built for their personal entertainment.
Well, we do have a new billion-dollar stadium for the Cowboys. And it has certainly received far more press coverage than the recently passed House Bill that proponents claim will save the planet from global warming. Yes, forces are gathering to reverse our 100-year history of citizens’ free travel to work and for leisure – and of that freedom’s benefits to our economy.
We revere Henry Ford: the inventor of modern mass production; the man who put Americans on wheels; the stolid Midwesterner whose ingenuity, common sense and hard work built an empire. Yet this same man was a bundle of contradictions: a pacifist who built tanks and warplanes, and who unleashed frightful brutality against his own striking workers; a hardheaded tycoon who strove to restore a sentimental vision of small-town life. He was, in short, the quintessential American: a hero and a fool.
"Fordism" also became a beacon for the world. Lenin's Russia, Hitler's Germany and many poor countries looked to the magic of mass production - and the magic of automobiles - to catapult their way to prosperity. Still, it's a little surprising that Greg Grandin wants to explain Henry Ford's America by taking us up the Amazon, where an old-fashioned water tower rises out of the jungle, hinting at a lost utopia.
Grandin, author of "Ford-landia," has rediscovered one of Ford's most ambitious but least known ventures. In 1927, Ford obtained a Connecticut-size chunk of the Brazilian jungle. His immediate goal was to establish a rubber plantation to supply his factories' insatiable demand for tires and gaskets, but he also saw an opportunity to bring Brazil the same blessings that he prided himself on bringing to his Michigan workers: good wages, plus the standards of middle-class propriety that spelled the difference between civilization and chaos.
For $25,000 to $250,000, The Washington Post is offering lobbyists and association executives off-the-record, nonconfrontational access to "those powerful few" — Obama administration officials, members of Congress, and the paper’s own reporters and editors.Related: Helen Thomas.
The astonishing offer is detailed in a flier circulated Wednesday to a health care lobbyist, who provided it to a reporter because the lobbyist said he feels it’s a conflict for the paper to charge for access to, as the flier says, its “health care reporting and editorial staff."
The offer — which essentially turns a news organization into a facilitator for private lobbyist-official encounters — is a new sign of the lengths to which news organizations will go to find revenue at a time when most newspapers are struggling for survival.
And it's a turn of the times that a lobbyist is scolding The Washington Post for its ethical practices.
"Underwriting Opportunity: An evening with the right people can alter the debate," says the one-page flier. "Underwrite and participate in this intimate and exclusive Washington Post Salon, an off-the-record dinner and discussion at the home of CEO and Publisher Katharine Weymouth. ... Bring your organization’s CEO or executive director literally to the table. Interact with key Obama administration and congressional leaders …
“Spirited? Yes. Confrontational? No. The relaxed setting in the home of Katharine Weymouth assures it. What is guaranteed is a collegial evening, with Obama administration officials, Congress members, business leaders, advocacy leaders and other select minds typically on the guest list of 20 or less. …
Read more: http://www.politico.com/news/stories/0709/24441.html#ixzz0K6yNKyHp&C
The following chart lists the price, download and upload speeds of residential Internet services in the U.S. and Japan.NTT (Nippon Telegraph and Telephone) is the major incumbent telephone operator in Japan. NTT has focused on fiber-optic business while Yahoo! BB (a subsidiary of SoftBank Telecom Corp.) has had first-mover advantage for DSL Internet. Due to unbundling requirements, Yahoo! BB and @nifty provide DSL service by renting NTT’s telephone lines at low prices.
Cable/DSL service In the U.S., the price for cable or DSL (1Mbps-7 Mbps) ranges from roughly $20-45/month. Comcast has higher speed Internet, 15Mbps-50Mbps, and costs $43-$140 per month.
In Japan, the typical Internet speed is higher than the U.S. (8Mbps-50Mbps), and costs $30-60 per month. J:COM, a large cable Internet provider, has cable Internet up to 160Mbps, costs $63 ($0.4 per megabit).
“Could you live here?” and “would you live here?” are two of the most common questions colleagues ask each other at the end of a business trip. Responses rarely take the form of a shrugged “I don’t know” or a half-hearted “I guess so”. Rather, they typically come in vehement declarations suggesting that considerable thought has gone into the topic already. Here are a few I’ve heard over the years:
On the train to Chicago’s O’Hare: “No way. It’s neither one thing nor the other and just look at this sad excuse of a train to the airport.”
In a cab to Vancouver International Airport: “Definitely not for me – seems a bit sleepy and limp.”
In a big Mercedes en route to Hong Kong’s Chek Lap Kok: “I could do it for a short stint but it wouldn’t be for the quality of life.”
Hitching a ride with an associate to Geneva’s Cointrin: “If I could get a great flat close to the lake and move my five closest friends, then it would be amazing.”
Being taxied to Fukuoka airport: “If I wanted the best of Japan but also great connections to the rest of Asia then it would be my first choice.”
Assessing quality of life is a difficult business and, as a result, surveys on the subject throw up different results.
The Economist Intelligence Unit’s liveability ranking, released this past Monday, put Vancouver, Canada, in the top spot out of 140 world cities, followed by Vienna.
Canada, Australia and Switzerland dominated the rest of the top 10, with Melbourne in third place, Toronto in fourth, Calgary and Perth tied for fifth/sixth, Geneva in eighth and Zürich and Sydney tied for ninth/10th. Helsinki was seventh, while London was 51st, behind Manchester at 46th. Asia’s best city was Osaka, Japan, at 13th, while the top US spot was Pittsburgh, Pennsylvania at 29th.
Mercer’s quality of living survey, released in April and covering 215 cities, was led by Vienna, followed by Zürich, Geneva, Vancouver and Auckland. Singapore was the most liveable Asian locale in 26th place, Honolulu was best in the US at 29th and London was the highest UK scorer at 38th.
There are similarities between these lists and Monocle’s and the reason is simple. According to Jon Copestake, editor of the EIU report, cities that score best tend to be mid-sized, in developed countries, offering culture and recreation but without the crime or infrastructure problems seen in places with larger populations.
Most of us tend to play some version of the game every time we travel and, while some quickly conclude they wouldn’t trade their current set-up for anywhere else in the world, I’d argue there are considerably more who are tempted to give up their current address for a place that promises better housing, worklife, transport, schools, restaurants, weather, shopping and weekend pursuits.
Late last year, for one night only, fans of the musical The Lion King were turned away from the Lyceum theatre in London’s West End. If they had been able to peer inside at the stage they would have witnessed not Simba, dancers in multicoloured costumes and “The Circle of Life” but a solitary, slender 45-year-old Canadian with bouffant hair standing behind a lectern. There were no props, apart from the video screen relaying his image around the huge auditorium, but this didn’t bother the youngish crowd who had bought 4,000 tickets at around £20 a piece to listen to one of two consecutive performances.
The speaker was the influential journalist, author and ideas entrepreneur Malcolm Gladwell, in town to promote his latest book, Outliers: The Story of Success. But this wasn’t a book reading or a Q&A session of the kind authors traditionally submit to. Neither was it a slide show, as you might expect to find at a lecture. Instead, the author recounted a single vignette from the book – the tale of why a plane ended up crashing, from the perspective of the pilots and those in the control tower – and burnished it into a narrative with all the chill and pace of a traditional ghost story. Even the lighting was kept deliberately low to create the right atmosphere. The performance lasted precisely an hour and five minutes, and no questions were invited after Gladwell had finished speaking. Rather than a talk about a book, it looked more like a carefully choreographed stage show.
attle found the criticism painful. Popping another tomato in his mouth, he lets slip that the reason Lunch with the FT took so long to arrange – more than a year – was that he was stung by what I had written. “That’s why I avoided speaking to you.”
. . .
But last year his Berlin contract was extended to 2018 – an impressive vote of confidence from an orchestra that, unusually, is entirely self-governing while receiving most of its funds from the state. And a visit to the London Proms revealed a man who had matured and mellowed. He had finally begun to learn German. He still struggles to speak it (“anyone less linguistically gifted than me is hard to imagine”, he confesses), but by attempting to do so he had broken an important psychological barrier. His podium gestures were as jubilant as ever, but his Brahms had acquired unmistakable depth.
Sitting across the lunch table, I begin to understand why. Rattle is settling into comfortable middle age. The blue T-shirt may advertise a man still young at heart but the curls are white and thinning. Yesterday’s boy wonder is now older than most of his orchestra. He has begun to slow down, to be slightly less sensitive to criticism.
But there’s another factor at work. Rattle has made his home in Berlin, something not even Herbert von Karajan, his most illustrious predecessor, had done. He lives in one of the city’s leafy quarters and is often seen doing the family shopping in its open-air markets. It’s as if he has gone native. So what has he learned about the Germans?
“People are more subtle and complicated than they are made out to be,” he answers, pouring some of the red wine he has brought outside. Does this mean Germans are not the humourless caricature peddled by England’s tabloid newspapers? Rattle sighs. It wasn’t until his late twenties, he says, after discussing the horrors of the Nazi era with Viennese conductor Rudolf Schwarz, a Belsen survivor who resumed his career in Birmingham after the war, that he became aware of the complexities of national identity.
The news came to us at HBR just after our newest issue went to the printer; that issue contains, sadly, the last article he wrote for our pages. Because it is the July-August issue, and will arrive on newsstands two weeks hence, it will seem strange to many readers that the byline makes no note of his passing -- and worse, that the editor's letter is mute on the many accomplishments of his rich and long life. Such are the perils of print publishing, and for that we apologize.
But here let it be said that, when work began last January on envisioning the July-August issue -- a special, double-sized issue devoted wholly to exploring how the business landscape would be transformed by the financial crisis and recession -- Peter Bernstein's voice was the first we sought to include. He was the master at explaining issues of financial risk, and there has scarcely been a time when the world needed his kind of clear analysis more.
In response to a vaguely worded invitation from us (deliberately so, in the interests of giving Peter full license to address what he felt needed to be addressed), he came back with a tightly crafted essay called "The Moral Hazard Economy."
If the car senses erratic steering and rapid corrections, the telltales of fatigue, the Attention Assist will advise you to get some rest as it displays a big coffee cup icon in the instrument panel (this is my favorite ISO 9000 icon, by the way). Attention Assist is just one of a dozen or more marquee safety systems Mercedes has piled onto the E-class for 2010, and it's clear at the outset that Mercedes is returning to safety as a transcendent brand value after years of marketing itself as the spoils of well-paying bad behavior, the glittery metal floss under Britney Spears' untrussed derriere.
Suddenly, the E-class is, again, the car for grown-ups.
I won't parrot the company line about the E-class being the heart and soul of the brand, except that it is. The E-class is a "business saloon," the standard-issue Mercedes -- stout, reliable, comfortable and enduring. This is the stainless-steel Rolex of cars, steadily elegant and appropriate for any occasion, and you have to admire the alacrity with which the E-class can go from being a tan airport taxi drone in Berlin to being a valet-park star in Beverly Hills.
To save you the suspense, I'll tell you now: The new E-class is a fantastic car but for one huge, agonizing, inexcusable error that baffles me like a Rubik's Cube the size of the Seagrams Building. More on that in a moment. For now, consider a short list of some of the more fun safety systems available on the E-class as standard or options.
HE recent scandals about poisoned baby milk, contaminated pet food and dangerous toys from China have raised questions about manufacturing standards in the country that has become factory to the world. In China’s defence, it was probably inevitable that as production grew so would the problems associated with it, at least in the short term. Similarly, it could be argued that China is going through the same quality cycle that occurred during Japan’s post-war development or America’s manufacturing boom in the late 19th century—but in an environment with infinitely more scrutiny.
A response to both these observations can be found in “Poorly Made in China” by Paul Midler, a fluent Chinese speaker who in 2001 moved to China to work as a consultant to the growing numbers of Western companies now replacing factories in Europe and America with subcontracting relationships in the emerging industrial zone surrounding Guangzhou. It was the perfect period to arrive. The normal problems of starting a business, such as getting clients or providing a value proposition, do not hinder Mr Midler, who had the benefit of being in the right place at the right time.
Long before the current financial crisis, nearly two years ago, a little-noticed cloud darkened the horizon for the US government. It was ignored. But now that shadow, in the form of a warning from a top credit rating agency that the nation risked losing its triple A rating if it did not start putting its finances in order, is coming back to haunt us.
That warning from Moody’s focused on the exploding healthcare and Social Security costs that threaten to engulf the federal government in debt over coming decades. The facts show we’re in even worse shape now, and there are signs that confidence in America’s ability to control its finances is eroding.
Prices have risen on credit default insurance on US government bonds, meaning it costs investors more to protect their investment in Treasury bonds against default than before the crisis hit. It even, briefly, cost more to buy protection on US government debt than on debt issued by McDonald’s. Another warning sign has come from across the Pacific, where the Chinese premier and the head of the People’s Bank of China have expressed concern about America’s longer-term credit worthiness and the value of the dollar.
The US, despite the downturn, has the resources, expertise and resilience to restore its economy and meet its obligations. Moreover, many of the trillions of dollars recently funnelled into the financial system will hopefully rescue it and stimulate our economy.
When Vivek Ranadivé decided to coach his daughter Anjali's basketball team, he settled on two principles. The first was that he would never raise his voice. This was National Junior Basketball—the Little League of basketball. The team was made up mostly of twelve-year-olds, and twelve-year-olds, he knew from experience, did not respond well to shouting. He would conduct business on the basketball court, he decided, the same way he conducted business at his software firm. He would speak calmly and softly, and convince the girls of the wisdom of his approach with appeals to reason and common sense.
The second principle was more important. Ranadivé was puzzled by the way Americans played basketball. He is from Mumbai. He grew up with cricket and soccer. He would never forget the first time he saw a basketball game. He thought it was mindless. Team A would score and then immediately retreat to its own end of the court. Team B would inbound the ball and dribble it into Team A's end, where Team A was patiently waiting. Then the process would reverse itself. A basketball court was ninety-four feet long. But most of the time a team defended only about twenty-four feet of that, conceding the other seventy feet. Occasionally, teams would play a full-court press—that is, they would contest their opponent's attempt to advance the ball up the court. But they would do it for only a few minutes at a time. It was as if there were a kind of conspiracy in the basketball world about the way the game ought to be played, and Ranadivé thought that that conspiracy had the effect of widening the gap between good teams and weak teams. Good teams, after all, had players who were tall and could dribble and shoot well; they could crisply execute their carefully prepared plays in their opponent's end. Why, then, did weak teams play in a way that made it easy for good teams to do the very things that made them so good?
The first thing our guide Mr. Li said to the people whom he knew had inflicted untold suffering onto his country was “Welcome. I hope you had a good flight.” Then he paused. "We call you the U.S. Imperialists, since you came in and divided our homeland. When some Korean calls you U.S. Bastards or U.S. Imperialists, I will just translate that. I hope that’s okay, I’m just doing my job.”
a Mr. Li was one of the guides on a tour of Pyongyang in October of 2008, the last month that American tourists were allowed access to the city. I visited as part of a group of 25 Americans, mostly young professionals and students; many said they wanted to see the country before it collapsed under the weight of its own obsolescence. We knew beforehand that our movements would be strictly controlled throughout the tour, and that we were not allowed to wander freely. Our guides showed us the parts of Pyongyang that we were supposed to see. Their filtering the trip was a very valuable way to process information in a place so radically different from anything resembling our definition of normality.
Ron Grassi says he thought he had retired five years ago after a 35-year career as a trial lawyer.I noticed this Wachovia building recently and thought the sunset scene was, perhaps appropriate.
Now Grassi, 68, has set up a war room in his Tahoe City, California, home to single-handedly take on Standard & Poor’s, Moody’s Investors Service and Fitch Ratings. He’s sued the three credit rating firms for negligence, fraud and deceit.
Grassi says the companies’ faulty debt analyses have been at the core of the global financial meltdown and the firms should be held accountable. Exhibit One is his own investment. He and his wife, Sally, held $40,000 in Lehman Brothers Holdings Inc. bonds because all three credit raters gave them at least an A rating -- meaning they were a safe investment -- right until Sept. 15, the day Lehman filed for bankruptcy.
“They’re supposed to spot time bombs,” Grassi says. “The bombs exploded before the credit companies acted.”
As the U.S. and other economic powers devise ways to overhaul financial regulations, they have yet to come up with plans to address one issue at the heart of the crisis: the role of the rating firms.
That is why it was all the more bewildering to have Sen. Dodd come to the gymnasium of the Cornwall Consolidated School on a beautiful spring afternoon for two hours and somehow manage not to utter a single word about the controversies surrounding his role as chairman of the Senate Banking Committee.
These are not exactly state secrets. There was the widely reported sweetheart or VIP mortgage loan from Countrywide Financial to the senator as well as the six-figure campaign contributions from the American Insurance Group whose executives, according to language Sen. Dodd wrote into a bailout bill, were entitled to large bonuses paid for with our tax dollars.
The organizer and moderator of Saturday's forum, Harriet Dorsen, a member of the local Democratic Party committee, told the Lakeville Journal newspaper last week, "I think there are going to be a lot of tough questions."
There weren't. They were all softballs. Instead of the usual give and take, with citizens speaking their minds, all the questions had to be written out in advance on index cards and then submitted to the moderators. A contingent from the Lakeville Journal (including my wife, Cynthia, who is the newspaper's executive editor) was on hand, armed with probing questions.
My trip was significantly less copacetic - due to "fog" (read: noxious pollution) at Pudong no planes were landing. Our evening flight was cancelled, and the the next day's flight delayed three or four hours. We ended up circling in Shanghai, landing in Hangzhou first, deplaning, and only later flying back to Shanghai. Total trip time: 23 hours.
I observed in my flight mates a similar kind of resignation that you saw - but I don't think it is due to any sort of calmness. Instead I saw a powerlessness in front of authority. Again and again people on the plane turned to me and asked me to call my embassy - saying "they will pay attention to you. But they don't care about us Chinese". One passenger (shanghainese) demanded that they hurry us to Shanghai because we had so many foreigners on the plane, and it was a major loss of face for China. The awareness and sensitivity to the poor treatment of local travelers reached a fever pitch when the biscuits and water came to us as we cooled our heels in Hangzhou. One passenger erupted in fury "Where did that Japanese tour group go? Have you given them better food? Have you given them *noodles*? How dare you!"
(The gate attendant's response is a topic for a whole other post. She, a young and pretty woman with trendy heavy glasses and a bejeweled mobile phone, turned to the angry passenger and said "of course we haven't given the Japanese noodles! We will never forget the Nanjing Massacre!"....)
An Indian mother is set for an entry into the Guinness World Records after eating 51 of the world's hottest chilli in two minutes.
Anandita Dutta Tamuly, 26, gobbled up the "ghost chillis" in front of visiting British chef Gordon Ramsay in the north-eastern state of Assam.
Ms Tamuly told Associated Press she "felt terrible" - because she had managed 60 in an earlier local event.
Mr Ramsay tried a chilli but said "it's too much" and pleaded for water. He is in Assam for a television shoot of a global food series.
San Francisco's food scene is probably the most vibrant in the Americas. Whether they're starting trends or perfecting them, Bay Area chefs have long been among the world's most creative. But amidst all the innovation, there has been one faithful and beloved constant on the city's many tables: sourdough bread.
It's hard to find someone who doesn't like sourdough, but even rarer are people who know what makes it so distinctive. It's often thought to be a flavouring, or perhaps a baking technique, something pioneered in Gold Rush-era San Francisco. In fact, sourdough is simply bread in which the rise comes not from a package of shop-bought yeast, but from wild yeast that is in the air everywhere.
As the original leavened bread – all bread was "sourdough" until Louis Pasteur's germ theory led to packaged yeast – sourdough has a long and storied past. But as a let-them-eat-cake epoch gives way to home pleasures and the local food movement, sourdough is equally suited to our own times. Classic, inexpensive and uniquely local, sourdough is as fascinating to kids and novices as it is to practiced bakers and mad scientists of all ages.
Sourdough is an ancient art, but with just two ingredients its simplicity is as remarkable as its heritage. Flour and water are mixed and left to stand on a windowsill or kitchen counter. In a matter of days wild yeast take over and the mixture begins to froth and bubble with life. If you've ever wondered at the origins of this or that cooking method – "who on Earth thought to try this?" – sourdough is that rare thing, a miraculous culinary phenomenon that won't give you that feeling. With yeast naturally in the air, it's easy to imagine how an afternoon's forgetfulness in ancient Egypt led to the invention of leavened bread.
His performance in Vietnam was particularly intriguing. He knows the country well and is treated almost as a celebrity - a reflection of both the quirks of history, and his moral and political courage, qualities that helped propel his White House run.
Senator McCain spent five years as a prisoner of war in Hanoi at the height of the Vietnam conflict, having been shot down and crashing his jet fighter into a lake on the edge of the capital. His vivid descriptions of being tortured - he refused offers of early release as the son of a leading admiral - did not stop his efforts years later. He not only returned to enemy territory but, as a prominent and hawkish Republican, played a key role through the late 1980s and 1990s in America's long delayed reconciliation and normalisation with its victorious opponent.
In his political twilight, Senator McCain could be forgiven for resting easy during his first return to the Vietnamese capital in five years. Despite political and social differences, the two countries are open to trade and investment, and have taken the first steps to a military relationship - a pipe dream just a decade ago.
He remains restless, however. In a speech to the country's diplomatic academy, he passionately urged both nations to get even closer. "Today, the hardest work of normalisation is behind us. The time has come, I believe, for us to move from the normalisation of our ties commensurate with Vietnam's rising status in the region and the world. We should not simply rest on our laurels and allow the relationship to plateau. It is time to take the next step."
“It was the sixth such attack this week and one of 66 this year by Somali pirates, a collection of shrewd businessmen and daring opportunists who have pulled off a series of spectacular seizures using high- and low-tech gear, from satellite phones and rocket-propelled grenades to battered wooden skiffs and rickety ladders,” the Washington Post reported today about the attack on a U.S.-operated container ship. “In the past year, their booty has included the MV Faina, a Ukrainian ship loaded with tanks and antiaircraft guns, and the MV Sirius Star, a 300,000-ton, 1,000-foot-long Saudi oil tanker that is the largest ship to be seized in history.”
For months, a former senior CIA officer has been telling me that pirate activity off Somalia was a problem that needed to be aggressively dealt with. By chance, I had a meeting with him yesterday as the Maersk Alabama hijacking was unfolding. Here’s what he had to say (he updated his remarks today):
The American response to date has been incredibly naïve and woefully ineffective. Now, predictably, you have an American taken hostage. All of which should have been prevented. You’ve got a failed state in Somalia and pirates operating in an area of ocean that is larger than the state of Texas but we’ve been trying to deal with this from the ocean side, by sending the navy and with a limited application of technology, such as satellites and drones. We can’t afford to patrol that big a piece of the ocean; it’s too expensive to leave a naval task force out there.
This stunning accommodation offers deluxe living in the heart of England's capital city. A gated property with secure parking and armed guards, this is the perfect property to relax in complete luxury. Exquisitely furnished with many priceless antiques, royal collections and rare artefacts. 400 people work at the Palace to cater to your every need, including domestic servants, chefs, footmen, cleaners, plumbers, gardeners, chauffeurs, electricians, and two people who look after the 300 clocks.More: The 10 Best April Fools' Jokes and Econoland.
The palace consists of 19 state rooms, 600 bedrooms and 78 bathrooms. There is an adequate sized banquet hall to entertain your guests in the evening and a throne room which is an unusual but popular additional feature.
The owners do reside in the property but are discreet and are available should you require any assistance. They also own other properties throughout the United Kingdom. Please contact them for further details.
One unhappy hallmark of the Great Recession is a dramatic spike in financial distress. Moody's predicts that the default rate on corporate debt--which helps foretell bankruptcies--will be three times higher this year than in 2008. Home foreclosures are already at record highs, and going higher. Defaults on credit cards and other consumer debt will crest right behind mortgages.
The Obama administration is on the case, bailing out banks and homeowners and aiding dozens of industries either directly, through a financial-rescue scheme that could top $2 trillion, or indirectly, through the $787 billion stimulus bill. Automakers, furniture companies, real estate developers, and even porn magnates have their hands out.
[See a tally of the bailout efforts so far.]
Those efforts ought to help soften a sharp recession. But the unprecedented aid to the private sector may also unleash new problems, the way antibiotics have generated stronger strains of bacteria. "There's something fundamental about the need for failure," says Syd Finkelstein, a professor at Dartmouth's Tuck School of Business and author of Think Again: Why Good Leaders Make Bad Decisions and How to Keep It From Happening to You. "We're tinkering with the genetic DNA of a capitalist society."
The crash has laid bare many unpleasant truths about the United States. One of the most alarming, says a former chief economist of the International Monetary Fund, is that the finance industry has effectively captured our government—a state of affairs that more typically describes emerging markets, and is at the center of many emerging-market crises. If the IMF's staff could speak freely about the U.S., it would tell us what it tells all countries in this situation: recovery will fail unless we break the financial oligarchy that is blocking essential reform. And if we are to prevent a true depression, we're running out of time.
Brief remark - from early reports regarding the toxic assets plan, it appears that the Treasury envisions allowing private investors to bid for toxic mortgage securities, but only to put up about 7% of the purchase price, with the TARP matching that amount - the remainder being "non-recourse" financing from the Fed and FDIC. This essentially implies that the government would grant bidders a put option against 86% of whatever price is bid. This is not only an invitation for rampant moral hazard, as it would allow the financing of largely speculative and inefficently priced bids with the public bearing the cost of losses, but of much greater concern, it is a likely recipe for the insolvency of the Federal Deposit Insurance Corporation, and represents a major end-run around Congress by unelected bureaucrats.
---
Last week, the Federal Reserve announced its intention to purchase a trillion dollars worth of Treasury debt by creating the little pieces of paper in your pocket that have “Federal Reserve Note” inscribed at the top. In effect, the Fed intends to monetize the Treasury debt in an amount that exceeds the entire pre-2008 monetary base of the United States.
Apparently, the Fed believes that absorbing part of the massively expanding government debt and maybe lowering long-term rates by a fraction of a percentage point will increase the capacity and incentive of the markets to purchase risky and toxic debt. Bernanke evidently believes that the choice between a default-free investment and one that is entirely open to principal loss comes down to a few basis points in interest. Even now, the expansion of federal spending as a fraction of GDP has clear inflationary implications looking a few years out, so any expectation that long-term Treasury yields will fall in response to the Fed's buying must be coupled with the belief that investors will ignore those inflation risks.
This is a book report on The Rise and Decline of Nations: Economic Growth, Stagflation, and Social Rigidities, by Mancur Olson. There isn’t a whole lot about how nations pulled themselves out of their medieval stagnation (see A Farewell to Alms for that), so a better title for this still-in-print book from 1982 would be “How Rich Countries Die.”
Table 1.1 shows annual rates of growth in per-capita GDP for each of three decades, the 1950s, 60s, and 70s, in a range of rich countries. Contrary to our perception of the U.S. as a growth dynamo and the Europeans as sclerotic, France and Germany tremendously outperformed the U.S., as did most of the other countries. If we have grown larger it is because our population has expanded much faster than the European countries.
Chapter 2 summarizes Olson’s groundbreaking work on how interest groups work to reduce a society’s efficiency and GDP. Some of this work seems obvious in retrospect and indeed Adam Smith noted that businessmen rarely met without conspiring against the public interest. There are a handful of automobile producers and millions of automobile consumers. It makes sense for an automobile company, acting individually, to lobby Congress for tariffs. The company will reap 20-40 percent of the benefits of the tariff. It doesn’t make sense for an individual consumer, however, to lobby Congress. It will cost him millions of dollars to lobby against Congress and preventing the tariff will save him only a few thousand dollars on his next car purchase. The economy suffers because some resources that would have been put to productive use are instead hanging around Washington and because cars are more expensive than they should be.
Why are the unsecured creditors of banks and quasi-banks like AIG deemed too precious to take a hit or a haircut since Lehman Brothers went down? From the point of view of fairness they ought to have their heads on the block. It was they who funded the excessive leverage and risk-taking of banks and shadow banks. From the point of view of minimizing moral hazard - incentives for future excessive risk taking - it is essential that they pay the price for their past bad lending and investment decisions. We are playing a repeated game. Reputation matters.
Three arguments for saving the unworthy hides of the unsecured creditors are commonly presented:
John Thain is giving us a tour of what is soon to become America’s most infamous office, with its $87,000 rug, $68,000 sideboard, $28,000 curtains – all part of a $1.2m redecoration scheme. This was early December, a little under two months before Thain would be fired in the same room by his new boss, Ken Lewis, chief executive of Bank of America.
For now, before a price tag had been placed on every item in his office, the 53-year-old chief executive of Merrill Lynch was in high spirits. The worst year on Wall Street in nearly a century was coming to an end, and Thain could rightfully claim to have saved his bank from ruin. Over a weekend in mid-September, as Lehman Brothers collapsed into bankruptcy, Thain pulled off a coup: he persuaded BofA, one of the few financial giants in the US that didn’t need government money to survive, to pay $29 per share for his own firm, even though Merrill was days away from following Lehman into bankruptcy.
Thain had taken over as Merrill chief executive nine months before that weekend deal. Now, he appeared to be one of the few Wall Street leaders who grasped the enormity of the credit crisis. Thanks to his analytical approach to the marketplace, it seemed, Merrill shareholders could look forward to a stake in Bank of America. “I have received thousands of e-mails saying, ‘Thank you for saving our company’,” Thain told us that day. And yet he admitted that the decision to sell Merrill Lynch – a 94-year-old institution that was always “bullish on America” – had been painful. “This was a great job. This was a great franchise. Emotionally, it was a huge responsibility.”
The reports on the evidence given by the Vice Chairman of the Federal Reserve Board, Don Kohn, to the Senate Banking Committee about the Fed's role in the government's rescue of AIG, have left me speechless and weak with rage. AIG wrote CDS, that is, it sold credit default swaps that provided the buyer of the CDS (including some of the world's largest banks) with insurance against default on bonds and other credit instruments they held. Of course the insurance was only as good as the creditworthiness of the party writing the CDS. When it was uncovered during the late summer of 2008, that AIG had nurtured a little rogue, unregulated investment banking unit in its bosom, and that the level of the credit risk it had insured was well beyond its means, the AIG counterparties, that is, the buyers of the CDS, were caught with their pants down.
Instead of saying, "how sad, too bad" to these counterparties, the Fed decided (in the words of the Wall Street Journal), to unwind ".. some AIG contracts that were weighing down the insurance giant by paying off the trading partners at the full value they expected to realize in the long term, even though short-term values had tumbled."
An LSE colleague has shown me an earlier report in the Wall Street Journal (in December 2008), citing a confidential document and people familiar with the matter, which estimated that about $19 billion of the payouts went to two dozen counterparties between the government bailout of AIG in mid-September and early November 2008. According to this Wall Street Journal report, nearly three-quarters was reported to have gone to a group of banks, including Société Générale SA ($4.8 billion), Goldman Sachs Group ($2.9 billion), Deutsche Bank AG ($2.9 billion), Credit Agricole SA's Calyon investment-banking unit ($1.8 billion), and Merrill Lynch & Co. ($1.3 billion). With the US government (Fed, FDIC and Treasury) now at risk for about $160 bn in AIG, a mere $19 bn may seem like small beer. But it is outrageous. It is unfair, deeply distortionary and unnecessary for the maintenance of financial stability.
Don Kohn ackowledged that the aid contributed to "moral hazard" - incentives for future reckless lending by AIG's counterparties - it "will reduce their incentive to be careful in the future." But, here as in all instances were the weak-kneed guardians of the common wealth (or what's left of it) cave in to the special pleadings of the captains of finance, this bail-out of the undeserving was painted as the unavoidable price of maintaining, defending or restoring financial stability. What would have happened if the Fed had decided to leave the AIG counterparties with their near-worthless CDS protection?
The organised lobbying bulldozer of Wall Street sweeps the floor with the US tax payer anytime. The modalities of the bailout by the Fed of the AIG counterparties is a textbook example of the logic of collective action at work. It is scandalous: unfair, inefficient, expensive and unnecessary.
celand’s de facto bankruptcy—its currency (the krona) is kaput, its debt is 850 percent of G.D.P., its people are hoarding food and cash and blowing up their new Range Rovers for the insurance—resulted from a stunning collective madness. What led a tiny fishing nation, population 300,000, to decide, around 2003, to re-invent itself as a global financial power? In Reykjavík, where men are men, and the women seem to have completely given up on them, the author follows the peculiarly Icelandic logic behind the meltdown. by MICHAEL LEWIS April 2009
Just after October 6, 2008, when Iceland effectively went bust, I spoke to a man at the International Monetary Fund who had been flown in to Reykjavík to determine if money might responsibly be lent to such a spectacularly bankrupt nation. He’d never been to Iceland, knew nothing about the place, and said he needed a map to find it. He has spent his life dealing with famously distressed countries, usually in Africa, perpetually in one kind of financial trouble or another. Iceland was entirely new to his experience: a nation of extremely well-to-do (No. 1 in the United Nations’ 2008 Human Development Index), well-educated, historically rational human beings who had organized themselves to commit one of the single greatest acts of madness in financial history. “You have to understand,” he told me, “Iceland is no longer a country. It is a hedge fund.”
My friend professor Uwe E. Reinhardt of Princeton University presented ECONOMIC TRENDS IN U.S HEALTH CARE: Implications for Investors, at J.P. Morgan's annual healthcare conference on Tuesday, January 13 2009. The first half of the presentation (46 slides!) deals with macroeconomic and financial issues in Uwe's inimitable style - equal portions of wit and insight. The second half deals with the embarrassing mess known as health care in the US.
I wrote a few months back about some intriguing research on the power of gratitude, showing that people who kept "gratitude journals," (keeping track of the good things that happen to them and things that they appreciate in life) not only reported better physical and mental health, their partners also noticed it as well (including reports that they slept better). A new study shows that the positive effect of gratitude on signs of well-being such as mastery, relationships with others, and self-acceptance happen over and above personality factors. Similar to the study of gratitude journals, this study by Alex Wood and his colleagues suggests, that regardless of one's personality, taking time to notice and appreciate the good things in life can help all of us. This strikes as me as an especially important finding given the difficult times.
Here is the source and the abstract for those of you who want to know more:
For his maiden congressional address, Obama cleaned President Bush's clock in terms of TV viewers willing to watch him speak to a bunch of stuffed congressional suits in the House chamber. Which isn't saying much. But it is something for a new president to cling to, especially when you're otherwise up against the sleuths of "NCIS."
Obama got 52.4 million viewers last night (rounded off for those visiting the bathroom) in 37.2 million homes for a 49 share and 32.5 rating. In his last joint address in 2008 GWB got 37.5 million in 27.7 million homes for a 38 share and 24.7 rating. Bush did top Obama in 2003 with 62 million and a 56 share and we didn't even have the Iraq reality show going then. (But it was coming.)
Bush's first joint session appearance drew nearly 39.8 million and a 42 share.
However, Obama still lags the audience-drawing power of one President Bill Clinton. Sixteen years ago this week, when there were millions fewer Americans, Big Bill drew nearly 15 million more viewers -- 66.9 million for his first congressional speech in 44.2 million homes for a 44.3 rating.
Toyota Motor Corp.'s incoming president, Akio Toyoda, has a sobering message for the giant company founded by his grandfather: It has gotten too fancy for its own good.
On Monday, three top executives who helped lead Toyota the past four years -- including Mitsuo Kinoshita, one of the primary architects of the company's global expansion -- announced their retirement. The departures clear the way for Mr. Toyoda's planned makeover of the world's biggest auto maker.
He is expected to focus, most of all, on abandoning kakushin, or "revolutionary change," current president Katsuaki Watanabe's term for changing the way Toyota designed its cars and factories. It spawned technological advances, but led to cars that were often costlier to produce.
The 52-year-old Mr. Toyoda is also working to fix a pricing strategy that put the company at odds with some U.S. dealers, who felt its cars were getting too expensive, according to people familiar with the situation.
They won't be racing but BMW's famous Art Cars will be back on display. The Los Angeles County Museum of Art will feature four of BMW's 16 art cars until Feb. 24.
Among the four are some of our favorites:
-- Roy Lichtenstein's 1977 Group 5 320i with its wild wing and body work.
-- Frank Stella's graph-paper 3.0 CSL.
-- The 1979 Group 4 M1 that Andy Warhol painted with a brush.
All three cars raced at Le Mans with their new paint jobs.
Robert Rauschenberg's 1986 6-series was not a race car and, with its more conventional bodywork, seems far more restrained than the rest.
Charles Hollis "Chuck" Taylor looked down at his shoes and saw opportunity.
His Spaulding basketball sneakers were killing his feet.
Tired of the pain, the player hobbled into Converse Rubber Co. in 1921 and told owner Marquis Converse what he wanted — a sneaker with a higher ankle and a patch for better support, and a rubber sole with treads that made for a better grip for faster running and breaks.
Converse agreed to cobble one together. The upgraded All-Star shoe was born.
Over the next half-century, Taylor almost single-handedly established the Converse All-Star as the most popular athletic shoe ever.
Known as Chucks in tribute to Taylor, the shoes sold 750 million pairs before Converse was bought by Nike in 2003.
Taylor didn't just build a brand. He also changed the face of basketball through integration, boosted the careers of some of the game's most legendary coaches and helped make roundball one of the most popular sports in the world, notes Abraham Aamidor, author of "Chuck Taylor: Converse All Star."
What transpires in the next 2 seconds is the heart and soul, the essence and spirit, of the Roadster. This is the trick this one-trick pony does better than perhaps any sports car on Earth. We in the business call it "rolling acceleration."
At about 20 mph I nail the go pedal, and the power electronics module summons a ferocious torrent of amps, energizing the windings of the 375-volt AC-induction motor. Instantly -- I mean right now, like, what the heck hit me? -- the motor's 276 pound-feet of torque is converted to dumbfounding acceleration. Total number of moving parts: one.
Street lights streak past me like tracer bullets. My little mental circuits go snap-pop with the thrust. God has grabbed me by the jockstrap and fired me off his thumb, rubber band-style. Wow.
Meanwhile, over in the Porsche, 19th-century mechanical forces are taking their own sweet time. The driver has to clutch, shift to a lower gear, and de-clutch -- a regime that takes about half a second if he's talented. When he pushes on the accelerator pedal, the throttles in the Porsche's throat open, the fuel injectors start hosing down the cylinders with high-test, and the variable-angle cams rotate to maximize intake-valve duration. The flashing fire in the cylinders can now apply its maximum force to the pistons.
When it comes time to chart designer Chris Bangle's contribution to the BMW brand's aesthetic, few pundits will praise his pulchritudinous perversion of pistonhead passion, or thank him for the aesthetic affectations for which BMW is now known. In other words, the "Bangle Butt" will be Chris' lasting legacy. Of course, this is also the man who removed the words "flame surfacing" from art school and placed them on the tip of his detractors' tongues. That and Axis of White Power. (Oh! How we laughed!) Equally improbably, the Buckeye State native helped the expression "Dame Edna glasses" cross into the automotive lexicon. Yup. It's been a wild ride. Literally.CAR:
BMW design boss Chris Bangle is to leave the car industry, it was announced today. In a statement, BMW said Bangle was quitting 'to pursue his own design-related endeavors beyond the auto industry.'Bangle grew up in Wausau, WI.
Bangle, 52, was the architect of the often controversial flame surfacing look that transformed BMW design from the Russian doll mentality of the 1990s to the edgy – some would say radical and divisive – styling of today.
The cars Bangle spannered
The outgoing design chief has overseen the launch of the current 1-, 3-, 5- and 7-series saloons and hatchbacks, as well as the raft of niche models that have seen BMW's model range explode in recent years: the Z3, Z4, Z8, X3, X5, X6 and 6-series were all conceived on his watch.
It is no secret that bailout transparency is a problem.
Now that taxpayers have become financiers, we have a right to know where the money is going. In search of organizations with the curiosity and resources to help figure that out, we trolled the Internet for good, easily available bailout information and came up with several sites worth looking at.
You can get charts describing the allocation of bailout money from a variety of sources. Some are easier to find than others, and we’ll leave it up to the reader to figure out what it means that the WSJ has a quick link for the Super Bowl but not the bailout.
But even after you find them, charts will only get you so far.
If you are looking to understand the big picture, you should go first to organizations that focus specifically on tracking the bailout. Not only do they piece together information from a variety of sources, saving you the trouble, but a few also do their own snooping around.
A good place to start is Open the Government, an organization devoted to greater government transparency in general, and with a specific page on the bailout. The page is a good launching pad because it compiles a lot of information—from government organizations, news outlets and watchdogs—as well as providing a calendar of relevant dates. In the spirit of common cause, Open the Government also links to other bailout watchdog groups.
But few of the former Soviet bloc countries had better jokes than the Hungarians. After all, several of their national characteristics—quick intelligence, mordant wit and an eye for the main chance—are summarised in the now legendary humorous definition of a Hungarian: “Someone who enters a revolving door behind you but comes out in front”.
My two favourites are set in the time immediately after the 1956 revolution:
In the first, Comrade teacher announces the day’s lesson in School Number One, Budapest: Marxist criticism and self-criticism.
“Istvan, please stand up and tell us what Marxist criticism and self-criticism means,” she instructs.
The little boy stands up. “Comrade teacher, Marxist criticism is how we must view my parents, who joined the reactionary counter-revolutionary forces who sought to destroy our heroic workers’ and peasants’ state, and then fled to the imperialist, capitalist west, to continue their intrigues against the Socialist regime.”
“Excellent, Istvan. And what is your Marxist self-criticism?”
“I didn’t go with them.”
Look carefully, and it is really the birth of the modern West that we see taking place here: snippets of news and sensation helped define a shared experience of the past and present, as political debates laid the foundations of democratic culture. If the Reformation is often credited with having turned the West toward the Enlightenment, another such force must be the growing taste for news and its multiple retellings. While other cultures were arguing over the interpretations of sacred texts, England’s was arguing over the nature of government in print. We are the beneficiaries.
The exhibition itself could have been much more clear in its chronological and thematic organization, particularly because the knotty politics of 17th-century England — centering on its civil wars — are treated as if they were far more familiar than is the case, but these documents repay the patience of careful reading.
When Sir Walter Raleigh was convicted of treason and executed in 1618, his eloquent speech on the scaffold was reported not by newspapers — which had not yet evolved — but in private written accounts. The real revolution came in the 1620s under the influence of “corantos” imported from Amsterdam, which provided the main news of the week. The corantos (which are still recalled in the names of newspapers, like The Hartford Courant) also inspired opposition from the government over their reports of troop movements during the Thirty Years’ War, leading to censorship and even imprisonment.
But the demand for news — and opinion — increased. Press censorship collapsed with the beginning of the civil wars of the 1640s, but the debates of this era were so intense and so much a part of public consciousness that news publications became instruments in the political battles between monarchists and parliamentarians. Newspapers were counterfeited, imitated, mocked and attacked. Parliament tried to reimpose censorship in 1643, and the poet John Milton wrote his famous speech demanding “Liberty of Unlicenc’d Printing.” But newspapers, complained Sir Roger L’Estrange, an ardent monarchist, make “the multitude too familiar with the actions and counsels of their superiors.” He created The Observator, shown at the Folger — the “pre-eminent Tory journal of its day.”
I'm baffled by WhosHere. And I'm no newbie. I built my first Web page in 1994, wrote my first blog entry in 1999, and sent my first tweet in October 2006. My user number on Yahoo's event site, Upcoming.org: 14. I love tinkering with new gadgets and diving into new applications. But WhosHere had me stumped. It's an iPhone app that knows where you are, shows you other users nearby, and lets you chat with them. Once it was installed and running, I drew a blank. What was I going to do with this thing?
So I asked for some help. I started messaging random people within a mile of my location (37.781641 °N, 122.393835 °W), asking what they used WhosHere for.
For the wealthy, Tuesday's inauguration is the dream party: a chance to rub elbows with the similarly rich and powerful, to become part of a historic moment, and (most importantly), to get access to the man of the moment.
It also is a chance to drown their financial sorrows in an emotional wave of optimism.
Yet it may come as a surprise that at a time of financial crisis and Green correctness, many of the wealthy are choosing to arrive by private jet.
According to an article in Bloomberg, as many as 600 private jets were expected to touch down in D.C. for the inauguration. The runway at Washington Dulles was closed Saturday to allow as many as 100 small planes to park. And the Metropolitan Washington Airports Authority said it expected a total of 500 small jets to land from Jan. 16 through Jan 21.
"That would set a record, topping the 300 the airport accommodated for President George W. Bush's 2004 inaugural," an Airports Authority says in the article.
LIKE their counterparts in China, Vietnam's ruling Communists seem even more than usually sensitive to criticism. This month two leading reformist newspaper editors, Nguyen Cong Khe, of Thanh Nien (Young People), and Le Hoang, of Tuoi Tre (Youth Daily), were both told that their contracts would not be renewed, apparently because they were too good at their jobs. Their papers have assiduously uncovered official corruption, most notably with a joint exposé in 2006 about a crooked transport-ministry road-building unit. The journalists behind that story were punished by a Hanoi court last October for "abusing democratic freedoms". Now it looks as if their editors, too, have been culled. A spate of other arrests last year suggests a wider clampdown. AFP Read all about it (or not)
Ever since the start of doi moi (renewal) reforms in 1986, economic liberalisation has been accompanied by a gradual political loosening. There are around 700 newspapers in circulation. All are government controlled, but some are relatively outspoken. Meanwhile, a young, tech-savvy population has taken to reading opinion on the internet, in blogs penned by pseudonymous authors. These commentators are questioning government policy with increasing zeal. A day after the two journalists were arrested last year, their newspapers openly attacked the government's actions, hitting a few raw nerves. The government now also wants to curb the pesky bloggers, announcing rules in December restricting politically sensitive content on the internet.
Marcus Landry blocks Ralph Sampson III's shot (Sampson is a 6'11" freshman while Landry is a 6'7" Senior). [Buy this print]
"The monopoly on good ideas does not belong to a single party," President-elect Obama reportedly told congressional leaders Monday during a private meeting about an economic stimulus package. "If it's a good idea, we will consider it."
When it comes to taxpayer money—raising, spending, and occasionally deigning to return it—neither party in Congress has demonstrated particularly good ideas lately. The majority of lawmakers seem to believe that stimulating the economy means expanding recurring welfare programs, plowing money into pet projects of only limited or short-term use, and bestowing inadequate, selective tax cuts.
But if Obama is looking for ideas, he might consult with Nina Olson, the national taxpayer advocate at the IRS. In her annual report to Congress, released yesterday, Olson makes a persuasive case for overhauling the U.S. tax system.
Bloggers: If you suddenly find Air Force officers leaving barbed comments after one of your posts, don't be surprised. They're just following the service's new "counter-blogging" flow chart. In a twelve-point plan, put together by the emerging technology division of the Air Force's public affairs arm, airmen are given guidance on how to handle "trolls," "ragers" -- and even well-informed online writers, too. It's all part of an Air Force push to "counter the people out there in the blogosphere who have negative opinions about the U.S. government and the Air Force," Captain David Faggard says.
Over the last couple of years, the armed forces have tried, in fits and starts, to connect more with bloggers. The Army and the Office of the Secretary of Defense now hold regular "bloggers' roundatbles" with generals, colonels, and key civilian leaders. The Navy invited a group of bloggers to embed with them on a humanitarian mission to Central and South America, last summer. Military blogger Michael Yon recently traveled to Afghanistan with Defense Secretary Robert Gates.
In contrast, the Air Force has largely kept the blogosphere at arms' length. Most of the sites are banned from Air Force networks. And the service has mostly stayed away from the Pentagon's blog outreach efforts. Captain Faggard, who's become the Air Force Public Affairs Agency's designated social media guru, has made strides in shifting that attitude. The air service now has a Twitter feed, a blog of its own -- and marching orders, for how to comment on other sites. "We're trying to get people to understand that they can do this," he tells Danger Room.
Barry Fox is in big demand. The UW infectious disease specialist had lucrative side jobs working for seven different drug companies in just one year, including one that paid an undisclosed sum of $20,000 or more, records show.
Fox is one of dozens of University of Wisconsin-Madison physicians who also work for drug companies. Some sit on advisory boards; others do promotional or educational work. Fox, for example, did promotional work involving an antibiotic for one company in 2007, working five days for what appears to be at least $2,000 a day, his disclosure form says.
Doctors' moonlighting for drug companies - though legal - is coming under increased scrutiny, both at UW and across the country. This month, the trade group Pharmaceutical Research and Manufacturers of America enacted a voluntary ban on company gifts of branded pens, sticky notes and other items and dinners for doctors. Also of special concern are university physicians who are sought by drug companies because of the influence and respect they wield with colleagues practicing in communities.
Most patients have no knowledge of the side work. Even the university is not aware of exactly how much its doctors earn from drug and medical device companies; they are required to disclose only ranges of income received, and no range beyond $20,000.
More than 30 UW physicians exceeded the $20,000 threshold in 2006 and 2007, records show. At least one of those doctors made at least 20 times that amount in previous years - more than $400,000, paid by a maker of orthopedic implants. But that became known in 2006 only because of records filed in a lawsuit.
Last week, for the first time, signs went up in a handful of UW Health clinics alerting patients about doctors' drug company ties. In addition, the dean of the medical school said the university's policies need to be shored up. Among other things, the medical school might begin requiring doctors to specify how much they are paid, said Robert Golden, head of the UW School of Medicine and Public Health.
Further, U.S. Sens. Herb Kohl (D-Wis.) and Chuck Grassley (R-Iowa) have introduced a bill that would require drug and medical device companies to disclose payments made to physicians. Kohl said it would be best to ban the practice, noting that the medical industry spends $20 billion a year in payments and gifts to doctors.
"The relationship between the doctor and patient is frayed," Kohl said.
Economic policy is based on a collection of half-truths. The nature of these half-truths changes occasionally. Economics as a scholarly discipline consists in the periodic rediscovery and refinement of old half-truths. Little progress has been made in the past century or so towards understanding how economic policy, rules, legislation and regulation influence economic fluctuations, financial stability, growth, poverty or inequality. We know that a few extreme approaches that have been tried yield lousy results - central planning, self-regulating financial markets - but we don't know much that is constructive beyond that.Via Yves Smith.
The main uses of economics as a scholarly discipline are therefore negative or destructive - pointing out that certain things don't make sense and won't deliver the promised results. This blog post falls into that category.
Much bad policy advice derives from a misunderstanding of the short-run and long-run impacts of events and policies. Too often for comfort I hear variations on the following statements: "The long run is just a sequence of short runs, so if we make sure things always make sense in the short run, the long run will take care of itself." This fallacy, which I shall, unfairly, label the Keynesian fallacy, compounds three errors.
IN THE early 1990s America’s opinion-makers competed to outdo each other in triumphalism. Economists argued that the “Washington consensus” would spread peace and prosperity around the world. Politicians debated whether the “peace dividend” should be used to create universal health care or be allowed to fructify in the pockets of the people or quite possibly both. Francis Fukuyama took the optimists’ garland by declaring, in 1992, “the end of history” and the universal triumph of Western liberalism.
Samuel Huntington thought that all this was bunk. In “The Clash of Civilisations?” he presented a darker view. He argued that the old ideological divisions of the Cold War would be replaced not by universal harmony but by even older cultural divisions. The world was deeply divided between different civilisations. And far from being drawn together by globalisation, these different cultures were being drawn into conflict.
Huntington added another barb to his argument by suggesting that Western civilisation was in relative decline: the American power-mongers who thought that they were the architects of a new world order were more likely to find themselves the victims of cultural forces that they did not even know existed. The future was being forged in the mosques of Tehran and the planning commissions of Beijing rather than the cafés of Harvard Square. His original 1993 article, in Foreign Affairs, was translated into 26 languages and expanded into a best-selling book.
It is a sorry place at which we Americans find ourselves this none-too-festive holiday season. The biggest names on Wall Street have gone to their rewards or into partnership with the U.S. Treasury. Foreigners stare wide-eyed from across the waters. A $50 billion Ponzi scheme (baited with, of all things in this age of excess, the promise of low, spuriously predictable returns)? Interest rates over which tiny Japanese rates fairly tower? Regulatory policy seemingly set by a weather vane? A Federal Reserve that can't make up its mind: Is it in the business of central banking or of central planning? And to think -- our disappointed foreign friends mutter -- all of these enormities taking place under a Republican administration.
Trust itself entered a bear market in 2008, complementing and perhaps surpassing the selloffs in stocks, mortgages and commodities. Never to be confused with angels, we humans seem to outdo ourselves when money is on the line. So it is that Bernard Madoff, supposed pillar of the community, stands accused of perpetrating one of the greatest hoaxes since John Law discovered the inflationary possibilities of paper money in the early 18th cent
Party of the year: The $86,000 partridge-hunting trip funded by AIG, a government-rescued insurance firm, for some top clients. They had fun, but the public outcry was such that lots of other firms cancelled their holiday parties lest they be accused of wasting money in tough times. Cheers!
Badly-timed nickname: Awarded jointly to Whole Foods Market and Starbucks. Being known, respectively, as Whole Paycheck and Fourbucks is fine when the going is good, but not when consumers are obsessed with value for money. Both of these pricey retailers have had a miserable year. Whole Foods’ shares are down by 75% so far in 2008, and shares in Starbucks are down by over half.
In memoriam: A posthumous award for this year’s notable departures. Contenders include Alan Greenspan’s reputation as a great central banker; investment banks; the newspaper industry; sport-utility vehicles; fiscal prudence; the inexorable rise of BRIC economies and the theory that BRICs had “decoupled” from rich world economies; pay increases; and capitalism. But the winner is economic growth—gone, though one hopes not forever.
Now the iPod can answer the question: Am iDrunk?Fascinating.
A new product called the iBreath turns Apple Inc.'s iPod into an alcohol breathalyzer.
The $79 accessory plugs into the base of the iPod and functions like a field sobriety test. The person using the iBreath exhales into a retractable "blow wand" and the internal sensor measures the blood-alcohol content. Within two seconds, it displays the results on an LED screen. A reading of 0.08 or above sets off an alarm, signaling a blood-alcohol level above the legal limit in all 50 states.
"We are absolutely not advocating drinking and driving, but we know that people just don't observe that," said Don Bassler, chief executive and founder of David Steele Enterprises Inc. in Newport Beach, an online retailer and creator of the iBreath. "We don't want people to think that this makes it all OK, but it's a safety device that we hope people will use, and it may save lives."
The iBreath is among a growing number of products for the iPod and iPhone designed to combat excessive holiday reveling. Last Call, a new application for the iPhone, provides a tool for estimating blood-alcohol content (as well as a list of attorneys who specialize in DUI arrests).
One of the biggest issues on listeners' minds is the direction you'll take KCRW. They wonder how much like Nic Hartcourt you'll be and how your electronic influences will affect the morning slot. What say you? My responsibility in this position is to integrate the influences of all the Music Directors before me, and take it to another place altogether--which means all genres of music from all over the world.
Besides a reverence of Joe Strummer and The Clash and a good ear for underground bands that could appeal to a wider audience, I don't have that much in common with Nic musically. Nic's been great at the helm of MBE, but I'm going to bring my own music experience to the program with an appreciation of where it's been. Yes, that does mean an affinity for Electronic music and global club culture, but that's not all and I certainly will consider what works best during the morning hours.
Will you start focusing locally?
I feel like I do already to a great extent. I've been producing events locally for nearly two decades. I'm very involved in the LA scene, and KCRW is totally invested in local music, while at the same time actively making connections abroad. Personally, Silversun Pickups and Morgan Page are among my favorite local artists.
What considerations and thoughts will go into who you choose to play in studio?
Mostly looking to mix it up - everything from Afrobeat to Neo Soul and quirky Folk.
Anti-government demonstrators swarmed Bangkok's international airport late Tuesday -- halting departing flights -- as opponents and supporters of Thailand's government fought running battles in the streets of the city.
Minutes after outbound flights at Suvarnabhumi International Airport were suspended, hundreds of demonstrators -- some masked and armed with metal rods -- broke through police lines and spilled into the passenger terminal.
Seven of the top ten debtor nations are included in the world’s top ten economies. Not surprising. This is largely a result of widespread availability of affordable credit, and relatively large middle classes in these countries, and consequently a large ratio of home/property owners. Most popular rhetoric on the topic would claim that wealthy countries have grown accustomed to being wealthy and they are enthralled by consumerism – it could be argued that this high level of debt could be a result of a culture that is used to and willing to buy now, and pay later…even if it means with interest.
According to our data, Japan has the highest positive income (in gross terms) at US $2,892 Billion. Similarly, the US economy is $1,594 Billion. At the other side of the spectrum, Great Britain’s income to debt ratio is a US -$7,677 Billion, and that of France is -$1,890 Billion. But what do these statistics mean on an individual level? Well, if you were to boil down what each person in this country contributed to the nation’s income vs. debt ratio, the results would be startling. We would have to take into consideration the nation’s population to better understand this. And some may be surprised to see that the US does not fare quite as bad as imagined, comparatively:
WHEN the Germans launched, five months ago, that terrific onslaught on Verdun, which has been sustained by the French with such incomparable heroism, the enemy's offensive was welcomed by our Press, as certain to cost him sacrifices in men greater than his gain in territory. Nevertheless, the same newspapers which have called for, and now enthusiastically welcome, the Franco-British offensive, seem hardly to have realised what that advance has already meant to thousands of their readers and to many more thousands of stricken heroes in terms of human suffering. Let us neither minimise nor exaggerate the success so far gained. Everyone is discussing it, now that a halt is called. Intense pride we must all feel in the superb courage shown by our officers and men under this ordeal; but that pride should not blind us to the cost. We do not know what are the casualties incurred in the week's fighting that started last Saturday morning; but we do know that heavy sacrifices of life and limb must be made at every "push," and that a town must be depopulated of its young men for every village gained. That is the experience of this war; for every previous attempt at an advance, whether on our own part or on that of the Germans, during the general deadlock of the last 18 months, has only served to prove, the truth of the contention of M. de Bloch, set out in the Economist of January 1st. The Polish writer foretold what trench warfare would mean between conscript armies. “Battles,” he says, “will last for days, and at the end it is very doubtful whether any decisive victory can be gained.” The decision, he predicted, supposing diplomacy to be excluded, would come through famine, not through fighting.
Nissan’s announcement last week that it would offer a stripped-down version of its Versa model for under $10,000 -– a Sub-Versa, if you will -– occasioned a lot of media attention and interest, as if there was something to celebrate. To me it sounds like 1.6 liters of boredom, a mouthful of sand to thirsty car-buyers. Please. Ten grand? I can put you in automotive paradise for $10,000. Walk this way.
Go to www.motors.ebay.com and follow the link to “Cars & Trucks.” Don’t specify a make or model but simply order the 50,000 or so listings by price, and use the advanced search function to specify items with a “Buy It Now” price. What you’ll discover is an Elysian field of depreciation as the awesome rides of yesteryear -– in some cases cars that dominated automotive buff book covers just a couple of years ago –- are dispensed with for a fraction of their original sticker. With the recent spike in gas prices and the downturn in the economy, people are eating their cars -– “literally!” as Joe Biden would say.
Yes, these cars are a little older, but if you were to compare, wheel-to-wheel, the new Versa with, say, a 1991 BMW 850i –- a 12-cylinder supercoupe on 18-inch Hamann wheels and with only 47,120 miles on the clock –- well, your head would explode. The Bimmer has more technology in its ashtray.
For writers who seek to influence public affairs, timing plays a paramount role. And few writers have had better timing than Adolf Augustus Berle.Fascinating.
In the summer of 1932, with America trapped in the greatest financial crisis in its history, Berle published “The Modern Corporation and Private Property,” a scholarly yet readable analysis of America’s largest companies and their managers. Berle is largely forgotten today, yet with that book he succeeded in persuading Americans to see their economic system in a new way — and helped set the stage for the most fundamental realignment of power since abolition.
The stock market had plunged vertiginously three years earlier, and by 1932 Americans were desperate to reverse the much wider collapse that had ensued — and to make sure it wouldn’t happen again. The New Republic was soon hailing “The Modern Corporation” as the book of the year, while The New York Herald Tribune pronounced it “the most important work bearing on American statecraft” since the Federalist Papers. Louis Brandeis would cite its arguments in a major Supreme Court ruling on corporate power. Running for president, Franklin Delano Roosevelt recruited Berle — a Republican Wall Street lawyer who had supported Hoover — to join his “brain trust,” and that fall entrusted him with drafting what became the most important speech of the campaign. After the election, Berle remained in New York, yet his connection to the president he audaciously addressed as “Dear Caesar” was such that Time would characterize “The Modern Corporation” as “the economic bible of the Roosevelt administration.”
The album has a theme, although it's more loose and open to interpretation than on my last album, IBM 1401, a User's Manual.Fascinating and quite pleasant. Clusty Search: Fordlandia.
One of the two main threads running through it is this idea of failed utopia, as represented by the "Fordlândia" title - the story of the rubber plantation Henry Ford established in the Amazon in the 1920’s, and his dreams of creating an idealized American town in the middle of the jungle complete with white picket fences, hamburgers and alcohol prohibition. The project – started because of the high price Ford had to pay for the rubber necessary for his cars’ tyres – failed, of course, as the indigenous workers soon rioted against the alien conditions. It reminded me of Werner Herzog's Fitzcarraldo, this doomed attempt at taming the heart of darkness. The remains of the town are still there today. The image of the Amazon forest slowly and surely reclaiming the ruins of Fordlândia is the one that gave spark to this album. For the structure and themes of the album I was influenced by the films of Alejandro Jodorowsky, Herzog and Kenneth Anger. I was interested in a kind of poetic juxtaposition and an alchemical fusion of themes and ideas, which I feel is similar to the way Anger uses montage as an alchemical technique - as a way of casting a spell. During the making of the album, I also had in mind the Andre Breton quote about convulsive beauty, which he saw in the image of "an abandoned locomotive overgrown by luxurious vegetation". There is a strong connection to the IBM 1401 album in terms of both thematic and musical ideas and I see the two albums as belonging to a series of works.
Daniel Ariens's biggest concern right now isn't the financial crisis. It's getting his hands on snowblower engines.Dan Neil channels Karl Marx & Leon Trotsky while tooling around in the latest BMW 750Li near Chemnitz:
The chief executive of Ariens Co., a maker of mowers and snowblowers, got a curt email last month from the company that for decades supplied engines for his line of snow machines, telling him they're halting production in 60 days -- essentially cutting off motors at the peak of his season. A host of problems hobbled that supplier, including the loss of a huge customer and problems obtaining crucial parts, such as starters, from the engine maker's own supply base.
"I'm quite sure we have other suppliers that won't make it through this cycle," says the 50-year-old Mr. Ariens.
This highlights a grim reality now dawning across the U.S. economy. Deep problems existed long before the meltdown on Wall Street and won't be fixed by the government's injection of taxpayer money into the nation's banks. Even if the credit crunch eases, as now appears to be happening, companies such as Ariens are bracing for a painful recession and taking steps to survive it.
Car sales and industrial production have plunged, consumer confidence has wilted, and companies have accelerated layoffs. Manufacturing, particularly autos and machinery, is leading the way down. Exports can't be expected to cushion the impact because the slowdown is global.
My driving partner and I were in the vicinity of Chemnitz, a somewhat dire little city in the former East Germany known for its alcoholism and an enormous monument to Karl Marx. Naturally, we had to see it.I have an Ariens snowblower.
"Bitte, kennen Sie, wo ist der grossen Kopf vom Karl Marx?" we asked passersby.
The former East Germans, standing in chilly drizzle, were delighted to help the capitalist running dogs in their gigantic limousine, a 2009 BMW 750Li. They pointed us down one of the main streets -- Lumpenprolitariatstrasse, maybe? -- and there it was: A huge, glowering stone bust of the German political philosopher, about the size of a FEMA trailer. Now there, there's a redistributionist.
A Summary of Remarks by Former CIA Director Jim Woolsey at the GEOINT Symposium
At the GEOINT Symposium in Nashville, Tennessee, former director of the Central Intelligence Agency (CIA) Jim Woolsey gave a chilling account of the implications for national security related to the United States' dependence on foreign oil. He described the vulnerabilities of a resource located far from our shores, highlighting how consumer habits could have dramatic geopolitical consequences. He then offered a solution to the crisis by suggesting a way to remove oil as a strategic commodity.
Woolsey's assessment of the problem is similar to what we have heard from T. Boone Pickens, the oil businessman-turned wind power advocate. We spend in the range of $350 - $700 billion per year for oil, depending on the price per barrel. The reality is that the U.S. and other oil importers like China and India are engaging in the biggest transfer of wealth in history. The result is that the U.S. is either directly or indirectly providing funds to support countries that may not have our best interests at heart. "Oil tends to be produced by countries that are either run by autocrats or dictators. (One exception: Norway). So, one of the things we are doing with this money is contributing to the support of dictators. Putin [Russia] and Chavez [Venezuela] are a bit quieter with oil at $65 per barrel," said Woolsey. "[However], a national energy policy that depends on oil is probably one of the stupider policies ever done. Even at $65 per barrel, we still have one of the biggest transfers of wealth the world has ever seen."
Google gathers so much detailed information about its users that one critic says some state intelligence bureaus look "like child protection services" in comparison. A few German government bodies have mounted a resistance.
The little town of Molfsee, near Kiel in northern Germany, has three lakes, an idyllic open-air museum and a population just under 5,000. It’s not the likeliest place to declare war against a global power. Yet Molfsee has won the first round of a battle against a powerful digital age opponent.
During a sweltering Friday evening rush hour in early October, Jeanette Scanlon spent two-and-a-half hours with 20 other people waving a homemade Barack Obama sign at the cars flowing through a busy intersection in Plant City, Florida.A friend recently mentioned that one of the canvasers asked if they could leave an orange dot on their mailbox, notifying other workers that they have already voted! I wonder how long it will be until citizens push back on the extensive personal data mining.
"I got shot the bird one time," laughs the easy-natured Scanlon, a 43-year-old single mother of three and a Tampa psychiatrist's billing manager. "That wasn't the thumbs up I was looking for."
Scanlon is one of an estimated 230,000 volunteers who are powering Obama's get-out-the-vote campaign in the swing state of Florida. And while sign-waving is a decidedly low-tech appeal to voters' hearts and minds, make no mistake: The Obama campaign's technology is represented here. Scanlon organized the gathering — and 24 others since September — through Obama's social networking site, my.BarackObama.com. Similarly, she used the site's Neighbor-to-Neighbor tool in September to find registered voters in her own neighborhood, so she could canvass them for Obama. And this weekend, Scanlon and another 75 or so Plant City volunteers will be phoning thousands of Floridians to urge them to vote, using a sophisticated database provided by the Obama campaign to ensure they don't call McCain supporters by mistake.
The Obama campaign has been building, tweaking and tinkering with its technology and organizational infrastructure since it kicked off in February 2007, and today has most sophisticated organizing apparatus of any presidential campaign in history. Previous political campaigns have tapped the internet in innovative ways — Howard Dean's 2004 presidential run, and Ron Paul's bid for this year's Republican nomination, to name two. But Obama is the first to successfully integrate technology with a revamped model of political organization that stresses volunteer participation and feedback on a massive scale, erecting a vast, intricate machine set to fuel an unprecedented get-out-the-vote drive in the final days before Tuesday's election.
The Badgers topped Illinois 27-17.
Smiles could only be found on Penn State fans' faces during Saturday evening's 48-7 victory over Wisconsin at Camp Randall.
A fan was tasered nearby.
Appeared recently in the New York Times print edition. More here.
Declan McCullagh notes the large amount of pork in the bill that passed Friday.
It's too early for civilians. As dawn's first light falls on the jagged peaks, creeps down the dwindling glaciers and glides across glass-faced Swiftcurrent Lake, most of the tourists in the Many Glacier Hotel are still snoozing.Related: Yellowstone Sunrise VR Scene and Waterton Lakes National ParkBut down at water's edge, three early risers huddle around a camera. One of the guys, leaning on a tripod and waiting for the clouds to arrange themselves over the jagged peaks, has a Beatles haircut, the build of a shortstop and a face you've seen before somewhere.
Perhaps during pledge week.
"I want more of the color," he says, peering through a viewfinder. "OK, I'm doing it." And the film rolls.
Yes, it's Ken Burns, solemn PBS documentarian of the Civil War, jazz, baseball, Frank Lloyd Wright, Mark Twain, Congress, the Brooklyn Bridge, and more than a few other American characters and institutions. Beside him stand cinematographer Buddy Squires and writer Dayton Duncan. Upstairs in the hotel, Burns' wife and 3-year-old are sleeping.
US personalities vary by region, say researchers. It's pretty thin on the details, but luckily the original paper can be found online in full, A Theory of the Emergence, Persistence, and Expression of Geographic Variation in Psychological Characteristics. I haven't read the whole thing, nor do I know much about personality, so I have put the maps which illustrate regional variation in traits below the fold. But I do want to note the correlations between Openness and the following metrics on the state level:
The Economist. Democrat convention illustrations can be found here.
Great stuff.
Driving the speed limit early this morning, a dark blue car with flags zoomed past. A blur on my left. The nearby stop light provided an opportunity to take this photo.
Obama 12? Does it imply there are numbers 1 to 11 driving around? Or, is it a play on Adam 12? One needs to be of a certain age to recall the TV series Adam 12.
Finally, the car is a new Chevy Malibu. It's interesting that there is no mention of Joe Biden on the flags, stickers or plate, which is perhaps, for the best.
"Right. It takes unconventional and courageous thinking to come up with a plan that clears a highway lane for the well off, while the middle class and working poor are left to inhale each other's $5-a-gallon exhaust fumes. The worst thing about this ill-conceived decision ... is it allocates freedom of movement according to income."-- From "Diamond Lanes for the Rich," by Tim Rutten (Los Angeles Times, April 26, 2008)
Few think of it this way, but America already has a major flat tax that we all pay equally: the 18.4-cent federal tax that is applied to each and every gallon of gasoline we purchase, or the 24.4 cents on every gallon of diesel. Say a young person, who just lost his job at McDonald's, buys a gallon of gas to get to an interview at Burger King at the same time Warren Buffet buys a gallon of gas to get to the airport in Omaha to board his personal jet: Both the unemployed, below-minimum-wage worker and America's richest billionaire contribute the exact same amount toward the nation's highway system on that day.
Now, however, we are being told - to an increasingly urgent drumbeat - that America can no longer afford the luxury of building new infrastructure or even maintaining our current road system, because there's just no funding for these programs. It's here that the complete absence of critical thinking about America's future should astonish and dismay anyone who looks at the facts even casually.
The Economist: Every day this week, our cartoonist is sending his sketches from the Democratic convention in Denver, Colorado. Sketches from previous days can be found here. You can find up-to-the-minute coverage on our American politics blog.
About ten hours after the end of last night's closing ceremony, I headed to the Olympic Green, completely unsure of what I'd find when I got there. I hadn't heard much about when the Green will open to the ticketless public, or if it would stay open until the Paralympics -- so I knew it would either be packed to the brim, or completely deserted. I arrived to find the latter.When I approached the Olympic subway line, the streets packed with tourists and scalpers just yesterday were now empty, and only one of dozens of security checkpoints to access the subway was open -- and there wasn't even anyone in line. Unsure if my accreditation card would still be valid, I approached the checkpoint to find a guard waving me through. Two of the guards were even taking a nap -- it was obvious that I was their first customer for quite some time.
If "An Inconvenient Truth" sounded the alarm on global warming, "I.O.U.S.A.," a new documentary opening in theaters Friday, hopes to do the same for the rising federal deficit.Backed by Blackstone Group Chairman Peter Peterson, "I.O.U.S.A." follows former U.S. Comptroller General David Walker and the Concord Coalition's Robert Bixby on a "fiscal wake-up tour" across America. In the movie, which is co-written by "Empire of Debt" co-author Addison Wiggin and directed by "Wordplay" filmmaker Patrick Creadon, Messrs. Walker and Bixby argue that unless the government alters its policies and spending habits, the U.S. will be in for a serious financial meltdown.
Mr. Walker, who headed the Government Accountability Office from 1998-2008, exited his official U.S. post five years early in order to head the Peter G. Peterson Foundation and dedicate himself fulltime to fiscal education before, as he says, "we face a real economic crisis." Mr. Walker spoke with The Wall Street Journal about the dangers of the debt and what needs to be done to prevent what he foresees to be an economic catastrophe.>
Costco held a very well attended party this evening celebrating the opening of their new Middleton warehouse club [Map].
I did not see a stand to purchase law degrees.
Middleton provided a TIF (Tax Incremental Financing) agreement to the site developer. A related Isthmus article can be found here.
A few additional photos:
 |  |  |
 |  |  |
This is one of those moments when a camera in hand meets a scene waiting to be photographed: a beleaguered traveller resorting to solitaire on his PC while waiting for the promised next flight. The blue sky ignores the chaos below. Air travel is certainly, as a fellow passenger lamented, "not what it once was".
Packing light is as much about philosophy as tactics. It's about adopting a minimalist ethos that a few, well-chosen possessions will serve you better than a steamer trunk full of impedimenta. Your stuff, after all, is supposed to help you see the world, not burden you.In one sense, you have a choice to make: Is it more important to see or to be seen? If it's the former, a carry-on filled with just the essentials will allow you to cover a lot of ground unencumbered; if it's the latter, indulge yourself with multiple wardrobe options for every occasion and just go ahead and pay those extra luggage fees.
For those making the switch to packing light, a few random tips:
-- As you're packing, make two piles: one for items you absolutely, positively need, the other for stuff that would be nice to have. Put the first pile in your suitcase and the second back in your closet.
-- That said, allow yourself a tiny luxury or two. For me, it's a lightweight cotton kimono-style bathrobe, plus an iPod and speakers. Filled with my calendar and contacts, my iPod doubles as my PDA.
While capturing this sunrise scene at Old Faithful recently, I learned that the BBC is shooting a 3 part series on Yellowstone. Their videographers, equipped with some very nice equipment, spent the past two mornings waiting for the "perfect" sunrise behind Old Faithful. This scene, on their third day, was best, according to their National Park Service Ranger minder. The program will evidently air in the UK this fall and here sometime in 2009.
Location: 44.460174 -110.829563
The kind ranger also mentioned that she is often asked "where they put the animals at night?"
I have no idea what these "mimes" were publicizing at the corner of Oakland Avenue and Monroe on a Sunday evening.
co Systems (NSDQ:CSCO) is set to deliver its TelePresence high-definition videoconferencing technology to the home market within the next 12 months, said the company's top executive this week.Promising, particularly as the air travel experience continues to deteriorate.
The technology will be available via the channel, including via retailers the likes of Best Buy (NYSE:BBY) and Wal-Mart and service providers such as AT&T (NYSE:T), said Cisco Chairman and CEO John Chambers at the Cisco Live conference in Orlando, Fla."It will probably evolve. At first we'll do it ... where we're very careful on how the channel sells TelePresence and very careful that the rooms are set up right and the cameras are set up right," Chambers said. "Having said that, I think that you will see a combination of distribution points."
Chambers expects pricing of Cisco's home-use TelePresence units to come in below $10,000 depending on what functionality the user wants.
Mr Gates also realised that making hardware and writing software could be stronger as separate businesses. Even as firms like Apple clung on to both the computer operating system and the hardware—just as mainframe companies had—Microsoft and Intel, which designed the PC’s microprocessors, blew computing’s business model apart. Hardware and software companies innovated in an ecosystem that the Wintel duopoly tightly controlled and—in spite of the bugs and crashes—used to reap vast economies of scale and profits. When mighty IBM unwittingly granted Microsoft the right to sell its PC operating system to other hardware firms, it did not see that it was creating legions of rivals for itself. Mr Gates did.....
And look at what happened when Mr Gates’s pragmatism failed him. Within Microsoft, they feared Bill for his relentless intellect, his grasp of detail and his brutal intolerance of anyone whom he thought “dumb”. But the legal system doesn’t do fear, and in a filmed deposition, when Microsoft was had up for being anti-competitive, the hectoring, irascible Mr Gates, rocking slightly in his chair, came across as spoilt and arrogant. It was a rare public airing of the sense of brainy entitlement that emboldened Mr Gates to get the world to yield to his will. On those rare occasions when Microsoft’s fortunes depended upon Mr Gates yielding to the world instead, the pragmatic circuit-breaker would kick in. In the antitrust case it did not, and, as this newspaper argued at the time, he was lucky that it did not lead to the break-up of his company.
Walking around Chicago this weekend, I observed no shortage of White Sox and Cubs paraphernalia (the two teams played one another at Wrigley Field). This couple certainly expressed the spirit of the weekend.
A brilliant identity/ad campaign by the Economist and Second City.
1940's?