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Wednesday Morning News

Good Morning Conflucians!!

What an interesting week we’re having so far. Mmm, love me some greed on wall street. And between the New Wall Street (don’t look at the man behind the curtain) Dem party and the Batshit Crazy (socialist, or now mexican, under every rock) Repub party, no one is noticing that our ship is headed straight for the iceberg. But never mind, we’ll fix that by bailing out the iceberg consortium. So let this be a bit of a distraction with some other news.

Laughter acts like exercise:

Dr. Lee S. Berk, a preventive care specialist and psychoneuroimmunology researcher at Loma Linda University’s Schools of Allied Health (SAHP) and Medicine, and director of the molecular research lab at SAHP, Loma Linda, CA, and Dr. Stanley Tan have picked up where Cousins left off. Since the 1980s, they have been studying the human body’s response to mirthful laughter and have found that laughter helps optimize many of the functions of various body systems. Berk and his colleagues were the first to establish that laughter helps optimize the hormones in the endocrine system, including decreasing the levels of cortisol and epinephrine, which lead to stress reduction. They have also shown that laughter has a positive effect on modulating components of the immune system, including increased production of antibodies and activation of the body’s protective cells, including T-cells and especially Natural Killer cells’ killing activity of tumor cells.

Their studies have shown that repetitious “mirthful laughter,” which they call Laughercise©, causes the body to respond in a way similar to moderate physical exercise. Laughercise© enhances your mood, decreases stress hormones, enhances immune activity, lowers bad cholesterol and systolic blood pressure, and raises good cholesterol (HDL).

As Berk explains, “We are finally starting to realize that our everyday behaviors and emotions are modulating our bodies in many ways.” His latest research expands the role of laughter even further.

A clown a day will keep the doctor away.

The fun part of social networks is when you’re engaged in the social hunt:

Kevin Wise, an assistant professor of strategic communication at the University of Missouri School of Journalism, studied people’s habits when they navigate Facebook. Wise says previous studies on social networking sites involved merely surveying study participants. Wise conducted his study differently.

“Rather than asking people to report their uses of Facebook, we wanted to see them in action,” Wise said. “We wanted to see if there is a way to categorize Facebook use, not based on what people say about it, but what they actually do when they are using it.”

Wise categorized participants’ actions into two different groups: social browsing and social searching. He defines social browsing as navigating the site without a targeted goal in mind. Wise says people use social browsing when they survey the general landscape, such as their newsfeed or wall, without looking for specific information. Wise defines social searching as searching the social networking site with the goal of finding certain information about a specific person, group, or event.

Wise found that participants tended to spend much more time on social searching than social browsing. Not only did participants spend more time on social searching, but they seemed to enjoy it more as well.

“We found a more positive response from participants during social searching, or when they had homed in on a particular target,” Wise said. “Ultimately, it appears that Facebook use is largely a series of transitions between browsing the environment, then focusing in on something interesting or relevant.”

So hunting your friends and acquaintances is what we like to do. Nothing like a good hunt to start off the morning.

Some progress in fuel cell research:

A new form of platinum that could be used to make cheaper, more efficient fuel cells has been created by researchers at the Department of Energy’s SLAC National Accelerator Laboratory and the University of Houston. The process, described in the April 25th issue of Nature Chemistry, could help enable broader use of the devices, which produce emissions-free energy using hydrogen.

“This is a significant advance,” said scientist Anders Nilsson, who conducts research at the Stanford Institute for Materials and Energy Sciences, a joint institute between SLAC and Stanford University. “Fuel cells were invented more than 100 years ago. They haven’t made a leap over to being a big technology yet, in part because of this difficulty with platinum.”

Fuel cells hold significant promise for clean energy because the cell’s only byproduct is water. But current fuel cell designs can require as much as 100 grams of platinum, pushing their price tags into the thousands of dollars. By tweaking platinum’s reactivity, the researchers were able to curtail the amount of platinum required by 80 percent, and hope to soon reduce it by another 10 percent, greatly trimming away at the overall cost.

“I think with a factor of ten, we’ll have a home run,” Nilsson added.

We launched a secret min shuttle the other day:

The X-37 has had a long and chequered development history. It was built by Boeing’s “Phantom Works” advanced-concepts shop, originally for NASA – though it had Air Force heritage from the beginning, drawing heavily on the USAF’s X-40 experiments.

NASA saw the craft as a potential “lifeboat” for the International Space Station, but that requirement wouldn’t really call for a winged re-entry vehicle: the ISS lifeboat is in fact a common-or-garden Soyuz capsule – perhaps now to be replaced at some point by an American Orion salvaged from the ruins of the Constellation moonbase programme. Neither has wings, or any real need for them.

So we no longer want much of a civilian manned space program, but a military one is just fine and good. Alrighty then.

So our lovely senators have noticed the recent changes from Facebook:

Last week, Facebook launched some major new products, including social plugins, its Like button for the web, and its Open Graph API. It also launched a product that has some serious privacy issues: ”Instant Personalization”, which automatically hands over some of your data to certain third-party sites as soon as you visit them, without any action required on your part. I’ve previously discussed at length why I think this could lead to a major backlash. And now four Democratic US Senators — Charles Schumer, Michael Bennet, Mark Begich and Al Franken — are calling on Facebook to change its policies.

This morning the senators sent a letter addressed to Mark Zuckerberg that details these issues (they’ve also separately reached out to the FTC, urging it to establish more rules around social networks). Here are the senators’ three main concerns, along with my own commentary:

1. Publicly available data. Facebook’s expansion of publicly available data to include a user’s current city, hometown, education, work, likes, interests, and friends has raised concerns for users who would like to have an opt-in option to share this profile information. Through the expanded use of “connections,” Facebook now obligates users to make publicly available certain parts of their profile that were previously private. If the user does not want to connect to a page with other users from their current town or university, the user will have that information deleted altogether from their profile. We appreciate that Facebook allows users to type this information into the “Bio” section of their profiles, and privatize it, but we believe that users should have more control over these very personal and very common data points. These personal details should remain private unless a user decides that he/she would like to make a connection and share this information with a community.

We all know how they’re all about protecting us from large powerful corporations. I believe Facebook and related organizations will recognize this for what it is, the Senators have noticed new players making big money, and they want their cut. Wonder how I’ve become so cynical.

The Arizona’s new “papers please” law may hurt H-1B workers:

H-1B workers in Arizona that can’t immediately prove they’re working in the U.S. legally may find themselves detained by police or even jailed under the state’s new immigration law.

Legal experts said that an H-1B worker questioned by a police officer that has “reasonable suspicion” about his or her immigration status could be arrested while doing nothing more than going to a restaurant, grocery shopping or even taking a walk around the block if they don’t have their H-1B papers at the ready.

Federal immigration law requires that all non-U.S. citizens, including H-1B workers, have documentation showing that they are in this country legally, but visa workers are rarely asked to produce their papers at any time or place, said legal experts.

Many visa holders aren’t likely to carry valuable and hard-to-replace paperwork on them at all times for practical reasons — they could be lost or stolen. Under the new Arizona law, though, every police officer becomes, in effect, an immigration enforcement agent that can demand the paperwork at any time.

The main documents that foreign workers would need to show if asked include their I-94 card, which shows their lawful status, and most likely their passport.

Immigration experts noted that there are a number of ways that an H-1B worker can be in this country legally, but not have the paperwork to prove it.

For example, a worker could be carrying an expired I-94 card while waiting for new paperwork from U.S. immigration authorities, a process that could take months. Under current laws that worker could be in the U.S. legally even though the paperwork doesn’t reflect it, said Gregory A. Wald, an attorney at Squire, Sanders & Dempsey LLP. “Is a police officer in Arizona going to understand that?”

Here are a few stories related to the evils of Powerpoint. I can attest to this myself. First up, how the main enemy from the militaries point of view isn’t the terrorists, but in fact Powerpoint:

Gen. Stanley A. McChrystal, the leader of American and NATO forces in Afghanistan, was shown a PowerPoint slide in Kabul last summer that was meant to portray the complexity of American military strategy, but looked more like a bowl of spaghetti.

“When we understand that slide, we’ll have won the war,” General McChrystal dryly remarked, one of his advisers recalled, as the room erupted in laughter.

The slide has since bounced around the Internet as an example of a military tool that has spun out of control. Like an insurgency, PowerPoint has crept into the daily lives of military commanders and reached the level of near obsession. The amount of time expended on PowerPoint, the Microsoft presentation program of computer-generated charts, graphs and bullet points, has made it a running joke in the Pentagon and in Iraq and Afghanistan.

“PowerPoint makes us stupid,” Gen. James N. Mattis of the Marine Corps, the Joint Forces commander, said this month at a military conference in North Carolina. (He spoke without PowerPoint.) Brig. Gen. H. R. McMaster, who banned PowerPoint presentations when he led the successful effort to secure the northern Iraqi city of Tal Afar in 2005, followed up at the same conference by likening PowerPoint to an internal threat.

“It’s dangerous because it can create the illusion of understanding and the illusion of control,” General McMaster said in a telephone interview afterward. “Some problems in the world are not bullet-izable.”

Famous information designer Edward Tufte agrees:

In corporate and government bureaucracies, the standard method for making a presentation is to talk about a list of points organized onto slides projected up on the wall. For many years, overhead projectors lit up transparencies, and slide projectors showed high-resolution 35mm slides. Now “slideware” computer programs for presentations are nearly everywhere. Early in the 21st century, several hundred million copies of Microsoft PowerPoint were turning out trillions of slides each year.

Alas, slideware often reduces the analytical quality of presentations. In particular, the popular PowerPoint templates (ready-made designs) usually weaken verbal and spatial reasoning, and almost always corrupt statistical analysis. What is the problem with PowerPoint? And how can we improve our presentations?

And finally here’s another article on how Powerpoint makes you dumb:

In August, the Columbia Accident Investigation Board at NASA released Volume 1 of its report on why the space shuttle crashed. As expected, the ship’s foam insulation was the main cause of the disaster. But the board also fingered another unusual culprit: PowerPoint, Microsoft’s well-known ”slideware” program.

NASA, the board argued, had become too reliant on presenting complex information via PowerPoint, instead of by means of traditional ink-and-paper technical reports. When NASA engineers assessed possible wing damage during the mission, they presented the findings in a confusing PowerPoint slide — so crammed with nested bullet points and irregular short forms that it was nearly impossible to untangle. ”It is easy to understand how a senior manager might read this PowerPoint slide and not realize that it addresses a life-threatening situation,” the board sternly noted.

PowerPoint is the world’s most popular tool for presenting information. There are 400 million copies in circulation, and almost no corporate decision takes place without it. But what if PowerPoint is actually making us stupider?

This year, Edward Tufte — the famous theorist of information presentation — made precisely that argument in a blistering screed called The Cognitive Style of PowerPoint. In his slim 28-page pamphlet, Tufte claimed that Microsoft’s ubiquitous software forces people to mutilate data beyond comprehension. For example, the low resolution of a PowerPoint slide means that it usually contains only about 40 words, or barely eight seconds of reading. PowerPoint also encourages users to rely on bulleted lists, a ”faux analytical” technique, Tufte wrote, that dodges the speaker’s responsibility to tie his information together. And perhaps worst of all is how PowerPoint renders charts. Charts in newspapers like The Wall Street Journal contain up to 120 elements on average, allowing readers to compare large groupings of data. But, as Tufte found, PowerPoint users typically produce charts with only 12 elements. Ultimately, Tufte concluded, PowerPoint is infused with ”an attitude of commercialism that turns everything into a sales pitch.”

The Supremes will tackle an interesting case about disclosure and transparency in a case about ballot measures:

In a high-profile legal challenge, the U.S. Supreme Court will today tackle questions about freedom of speech, the nature of signing petitions for ballot measures, the public’s right to know and the government’s interests in preserving the integrity of the election process.

Depending on the scope of the court’s ruling, ripples could be felt not only among the other 23 states that utilize ballot initiative and referenda (only one of which does not have public disclosure of information about petition signers), but potentially also in the arenas of campaign finance disclosure, public availability of voter registration lists and the open caucus systems used in some states to select party nominees.

“This case holds the potential to unravel decades of court precedent upholding the importance of meaningful disclosure in educating voters about how money is being spent to influence their votes on Election Day,” Paul Ryan, an attorney at the nonpartisan Campaign Legal Center, told OpenSecrets Blog.

The Center for Responsive Politics, which filed an amicus brief with the court that supported neither party but implored justices not add any new impediments to campaign finance disclosure, will attend and cover today’s oral argument at the Supreme Court.

And finally, a bit more about the terrible oil spill in the Gulf of Mexico:

Rear Adm Mary Landry, who is in charge of the government clean-up effort, said work on sealing the leaks using several robotic submersibles could take months.

About 1,000 barrels (42,000 gallons) of oil a day are gushing into the sea.

An investigation has been ordered into the cause of the leak, which began when an oil rig exploded and sank last week.

The joint investigation, by the interior and homeland security departments, will have the power to compel witnesses to testify, and will look into possible violations by the operators of the rig, Transocean.

Eleven of the rig’s workers are still missing and presumed dead in the disaster off the Louisiana coast.

Workers on a nearby oil platform were evacuated by the US authorities on Monday after the oil slick came dangerously close.

The leaks – about 5,000ft (1,525m) under the surface – were found on Saturday, four days after the Deepwater Horizon platform, to which the pipe was attached, exploded and sank.

The resulting oil slick now has a circumference of about 600 miles (970km) and covers about 28,600 sq miles (74,100 sq km).

British oil company BP, one of the firms operating the rig, has not been able to activate a device known as a blow-out preventer, designed to stop oil flow in an emergency.

That’s a bit of the news today. Chime in with what you’re hearing. Tell some jokes. Post something silly. We need to laugh. Even more than usual.

51 Responses

  1. When are we going to have a 3rd Party that could shake the establishment? I kinda envy the Brits:

    Liberal Democrats Could Destroy Britain’s Two-Party System

    After 13 years of Labour Party rule, Britain is on the verge of historic change as the May 6 general election approaches. For the first time, the Liberal Democrats, the country’s third party, could win a big enough share of the vote to force electoral reform and end the traditional two-party system.

    • I have to admit to envying them. Oh why oh why.

    • That, and national health care, and six weeks of vacation a year, and paid parental leave, and …..

      {{sigh}} Not for the first time, I think that the Revolutionary War was not a good idea in the long run.

  2. A clown a day will keep the doctor away

    That depends on the clown.

  3. Mayor Fenty for President! He certainly beats President Sausage-middle in the looks department.

  4. I’m thinking I’ll get an anonymous GMail account and send the above sections on the evils of Power Point to my boss. EVERY thing he does is in PP. He tosses nice electronic communications gadgets because he can’t create PP slides on them.

    • No wonder I struggle with PP presentations. So hard to get one’s research findings or most any complex information into a sensible form using the templates.

      With the old overhead projectors, you at least had a portrait-style page to hold more lines than the landscape-style PP slides.

      With either, you have to make sure the type point size is large enough to be readable by the audience.

      PP forces info to be broken into teeny segments. Conceptually it can be hard to consider it all as a whole, when the PP shows a bunch of visually separate subjects.

  5. We get marched into meetings, on a monthly basis, resplendent with Microsoft products and phrases like Six Sigma, Paradigm, and a host of other Greek stuff.

  6. and the open caucus systems used in some states to select party nominees.

    “open” caucus? Hahahahaha.

  7. WASHINGTON — President Obama said Tuesday that every politically painful choice must be considered — including spending cuts, tax increases, even changing the new health-care law — as he launched what he hopes will be a bipartisan effort to reduce the government’s soaring budget deficits. ….

    Despite his own campaign promise not to raise taxes on anyone who makes less than $200,000 annually, Obama said that it was a political game to try to get a president to rule things in or out when facing a debt crisis. ….

    Underscoring his commitment to consider any recommendations, Obama agreed in private with a Republican demand that the health-care law be open to possible changes, according to commission co-Chairman Alan Simpson, a former Republican senator from Wyoming.


    Is cutting the funds for two wars on the table too?

    • You must be joking. Hahahahahaha! Cut military spending? It will never happen. We are all going to be serfs with no retirement money while Wall Street and the Pentagon party on.

    • So he’s already going after healthcare subsidies himself? Figured it would take a Republican to do that….oh yeah, Obama IS a Republican.

  8. RD and DK will likely sympathize with me:

    The big headline out of the University of Washington is that their president quit. But the real news this week came from the UW classrooms, not the boardroom. It turns out our flagship university, due to budget cuts, is dropping laboratory experiments from some of its core science courses.

    I saw this in the UW student newspaper, The Daily. Example: An intro class on the fundamentals of engineering mechanics, called Aeronautics & Astronautics 210, was until recently taught with a weekly session in which students did hands-on experiments with forces, pulleys and basic machines. This year: No labs. Because they’re too expensive. “I prefer more labs than lecture, but then labs are very time consuming and very intensive in terms of the manpower to run the lab,” the class’s professor told The Daily. ….

    Learning science without experiments would be like learning to cook by ordering takeout.

    I called the chairman of the UW’s Chemistry Department, who said he has also been forced to cut back on lab work. In freshman chemistry this year they’re doing only four labs a quarter instead of seven. Lab hours in introductory organic chemistry have been cut by a third. Paul Hopkins, the chemistry chairman, said his department is down nine faculty positions, out of about 40, since 2004. Teaching assistants are down 20 percent since last year. More cutting is on the way. …. All this while the number of kids majoring in chemistry at the UW has soared, from 700 across all grades in 2003 to 1,700 today. “Did you know we’re now the largest undergraduate chemistry program in the nation?” Hopkins asked.

    I did not know that. I would like to mark the occasion, as well as Day One of the search for a new UW president, by saying: Have we completely lost our minds? Why are we slashing away at one of the main engines of the local economy? In the past three years, the state has cut back a third of its expected support to the UW. …. If this goes on, the long-term results are predictable.

    Predictable and not very pretty. Even higher tuition, fewer graduates, more debt, lower purchasing power, and yet more domino effects.

    • I’m 47 and almost done with a second bachelor’s degree (this time in Biology) at UW. I suggest UW students do what *I* did — take their lower division science courses at community college. My instructors at CC were PhD’s and they taught both class and lab sections. None of this TA stuff. Community college courses save both the state and the student money. The state subsidies are lower at CC and the education is better. Honestly, I’ve no idea where the state subsidies at the UW level go. They’re certainly not going to students.

      After attending UW (at my age) and seeing what a corrupt, top-heavy org it is, I don’t cry for them. I only hope the students wise up and look at other choices (like community college) besides the UW.

    • I have a biology degree, with a chemistry minor. This is a little embarassing for a biology major to admit, but I never particularly liked labs. I became distracted by the presence, conversations, and various behaviors of those around me in lab. I can see the value of labs, but I learned more in class and from reading on my own. I liked a labless biochemistry course I took at Purdue one summer, but it was only worth 3 credits instead of the usual 4 for a laboratory science.

  9. “It’s dangerous because it can create the illusion of understanding and the illusion of control,” General McMaster said in a telephone interview afterward. “Some problems in the world are not bullet-izable.

    Just admiring the double-entendre there, of a general saying the Aghanistan problem is not bullet-izable. Is it also not one to be solved by bullets?

    Have to agree about PowerPoint. *shudder*

  10. I am very worried about the environmental effects of this oil spill.. Is this the (un)natural disaster that’s going to bring our economy to it’s knees? I can’t help thinking about all the natural habitat and gulf coastline this is going to destroy, the environmental effect this is going to have the earth and all other living things and the economic effect that will have on our country. I actually feel afraid…

  11. Cool!

    A moth new to science and found nowhere else in the world has been formally recognised as living in the UK.


    • It’s cool that they’ve discovered a new moth. However, the statement they’ve made is just hysterical:

      A moth new to science

      I didn’t know moths studied science, but this poor thing is new to it. I’m sure they meant a “recently discovered moth”. And the moth is definitely not new to anything. Evolution takes quite awhile and so this moth has been around, just not discovered.

      and found nowhere else in the world

      So it was only recently discovered, but they state that it lives nowhere else in the world, as if they’re certain of that fact (LOL).

      has been formally recognised as living in the UK

      Thank goodness it wasn’t recognized as NON-living.

      If they’d said, they’ve recently discovered a moth that they believe only lives in UK, I wouldn’t have laughed quite so much. The Brits sometimes have an interesting way of talking around things.

  12. I just woke up from a long nap to find there is a little news. The Repubs are going to allow debate on the finreg bill and Charlie Crist is going to run as an Independent. Is Europe still afloat?

    • Europe is still afloat but barely. Spain has been downgraded and the markets here got hammered. I think Portugal is even worse off and Italy is always on the brink of total disaster. Greece has not been resolved.

      The future if the Euro is not looking good. I think the next couple of days are going to be interesting. (Can I grow a mustache and start going on a rampage with false predictions like Tom Friedman? Maybe I will get invited on shows like some sorta expert and “serious” people will be taking me seriously.)

      Spain has been

      • This is an interesting article.

        Goldman’s more than a Wall Street toll collector


        • BB thx for the link. It makes exactly the point I was making downstairs.

          • The thing that is turning my stomach is the “banality of evil” point. I don’t care whether the CDO’s are legal or whether they may “have a role” in the system. I want something done about the greed on Wall Street, and I don’t care how it gets done.

            If it means making Goldman Sachs the bad guy, it’s fine with me. If Lloyd Blankfein goes down, I don’t care. He’ll do fine. I don’t care if he supported Hillary.

            I don’t want to hear their excuses or excuses being made for them. It’s time for business to develop a social conscience again, and if they can’t do it on their own, they need to be forced.

  13. Banality of Evil

    Robert Scheer:

    Goldman’s executives didn’t start with any such moral qualms or end with them, as was made clear in the testimony of Goldman Chief Executive Officer Lloyd Blankfein that followed. Blankfein basically pleaded ignorance about the company’s scams, making it clear that offering the details of such products was below his pay scale. That would be $68 million in 2007, the highest in Wall Street history, when Goldman’s bets against its customers paid off so handsomely. What was clear is that his job was to ensure the company’s immense year-end profitability with no questions asked about the methods used. “I did not know” he replied when asked about the details of the company’s trades, and at another point he added, “We’re not that smart.” Then there was “I don’t have any knowledge” on selling short, and finally, “We did not know what subsequently occurred in the housing market.”

    What he did know is that the scoundrels in his mortgage betting rooms were, as with that high-flying London operation that got AIG so much loot before it exploded, raking in enormous profits. Such ignorance is bliss for a Goldman CEO who apparently is rewarded in inverse proportion to what he knows of the operation as long as he pays attention to the bottom line.

    • More evil:

      That was certainly the case for the man whom Blankfein succeeded the year before, Henry Paulson, when Paulson went off to serve as George W. Bush’s treasury secretary. As Paulson admits in his memoir, he was unaware that suspect mortgages were at the heart of the banking meltdown, even though he was head of Goldman when those toxic mortgage securities were developed.

      And then there is that other Goldman-honcho-turned-public-servant Robert Rubin, who was a Goldman vice chairman before serving as Bill Clinton’s treasury secretary. In that Cabinet job, Rubin pushed through the Financial Services Modernization Act, which demolished the wall between investment and commercial banking. Ironically, that reversal of the New Deal regulations that had operated successfully for 60 years, the Glass-Steagall Act, was referenced by Blankfein in his Tuesday testimony explaining how Goldman and other firms spun out of control.

      When asked by Sen. Ted Kaufman, D-Del., how Goldman had morphed from a traditional investment bank backing sound business ventures to a market gambler in fanciful products, Blankfein attributed it, somewhat forlornly, to “a change in the sociology of the business that took place over the last 15 to 20 years.” He added, “I’m not sure that it was precipitated by the fall of Glass-Steagall or it caused Glass-Steagall to fall. …”

      Of course there was nothing inevitable about the fall of Glass-Steagall in 1999, since it was the result of decades of lobbying by the financial industry. That change was followed by the total deregulation of financial derivatives by the Commodity Futures Modernization Act, which Rubin had pushed and which President Clinton signed into law.

      • I’m not gonna stop you. You’re on a roll.

        • They’ve basically been running wild since the ’80s and Reagan. They may well end up bringing down our economy and with it our government. The time has come to stop them.

      • Evil?? Surely you jest.

  14. Elizabeth Warren:

    …the proliferation of toxic products fed enormous and unsustainable risk into the financial system. The lack of meaningful consumer-protection rules triggered an economic crisis that truly began one household at a time, eventually rocking the most storied institutions on Wall Street and wrecking the larger economy. While the explosive growth of risk and deceptive consumer products should have served as an early warning system, Washington plainly wasn’t paying attention.

    The lack of meaningful oversight in Washington is the direct result of the immense political power of the financial industry and its success at heading off robust rules. The industry’s onslaught over time has left us with a sluggish, bureaucratic regulatory system that is designed to be ineffective. Today, consumer-protection authority is scattered among seven federal agencies. But not one of those agencies has real accountability for making consumer protection work, and, as a result, not one has been successful at doing so.

  15. James Kwak on ABACUS (crediting Steve Waldman):

    Goldman was creating a new company (a CDO of any variety is a new legal entity) and underwriting bonds issued by that company. In this case, the company’s “business” was writing derivatives that were essentially highly customized credit default swaps (since the swaps mimicked what would have happened had there actually been a synthetic CDO). An underwriter’s role is to induce investors to put their money in the company it is underwriting, which means talking up the qualities of that company while also disclosing its defects; it is not to broker a trade between investors who want the company to do well and other investors who want the company to do badly. And even if the “company” in question is a synthetic synthetic CDO, that doesn’t change.

    Evil, evil, evil.

  16. 😯

    • “Too much of our growth in the last decade was in finance.”


      Btw, Bill’s hand look so skinny … he seems so frail. I hope he is getting enough rest. 😦

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