The big “middle class” rip-off: How a short sale taught me rich people’s ethics
So many of us are clueless about business and finance. Here’s why that’s just the way the investment class likes it
An interesting article that had this comment that really spoke to me:
For my entire life (and I don’t think this will ever change) I’ve watched friends and family engage in one Fred Flintstone-esque, get-rich-quick scheme after another. I’ve also been caught up in more of these than I’m comfortable admitting, and they always fail, without exception. At the same time (at least in my own circles) this starry-eyed group of middle- and lower-class strivers vote overwhelming for the Republican Party. I find a direct correlation with an unlikelihood to ever become wealthy corresponding with a stronger commitment to vote Republican. They further solidify institutional advantages of the business elite to which they will never, ever belong.
I also admit to being drawn into an MLM (multi-level marketing, e.g., Amway) or two over the years so I am certainly not immune from the get rich quick concept, but to me it is all about barriers to entry. If there are no significant barriers, then there should be no significant profit. When you see obscene profits and there are no barriers to entry (or those barriers are simply having the right parents, attending the right schools and/or hanging out with the right crowd) then you know you have found a place where the elite have engineered themselves a spot fleecing the sheeple.
I particularly like the author’s observation regarding the correlation between people believing they can get rich quick and their support for the GOP. I have seen it a number of times myself and am always surprised at how vehement some people object to taxes yet have no problem taking advantage of the services those taxes provide (how about them highways, for instance; ever feel the need to call 911? wanna take that idiot neighbor to court?) OR taking advantage of the ‘welfare’ of social security and/or unemployment (which, btw, we all pay for during normal times!).
Things aren’t going to change until we, the sheeple, stop voting for people who only have the elite’s best interest in mind. Any chance this will change in any of our lifetimes?
The Astonishing Story of the Federal Reserve on 9-11
Yes, I know that the Fed really isn’t part of the govt, so this really isn’t praise for the govt, but it is an amazing read and remarkably gripping considering it is about banking and mundane things like check clearing. Give it a read, I think you will be surprised, perhaps even shocked, how James Bondian it reads.
I never really gave it much thought, but 9/11 really was a worst-case scenario for the banking system. So much banking is in NYC and in and surrounding the Trade Center that in retrospect the fact that our economy didn’t melt down is a tribute to the largely unseen people making things work. A little sad to me that the heroic work of these unsung heros is tarnished (to put it mildly) by the greedy ‘capitalists’ in Wall Street out to make a buck.
On an unrelated issue I am too lazy to make as a separate blog entry for, anyone notice that Ebola is about to become a huge deal?
Ebola outbreak: Experts warn cases could number one million by January as ‘window closes’ to stop disease becoming endemic
It becomes increasingly hard to avoid the tin-hat thinking that, given the number of companies developing an Ebola Vaccine (my dear wife works at the NIH Vaccine Research Center and is in the midst of testing one such vaccine), this is entirely coincidental. It is amazing timing that just as a couple of vaccines are ready for human testing there is an outbreak that looks like it will become an epidemic. No doubt these companies have already seen their stock skyrocket; presuming their vaccines show efficacy (the preliminaries are very encouraging) no doubt many countries will stockpile huge amounts of their vaccine even further inflating their value. I wonder, though, if any of that money will translate to vaccines given to the at-risk population, given that most of those countries have little or no hard currency and some barely have governments.
Also, with the massive increase in the number of people infected, we are performing a giant experiment to increase the transmissibility of the disease, much like that done to ferrets (for those of you who missed it, this paper was briefly censored because people were worried about terrorists using the same technique; here we are doing it ‘naturally’ instead). If you were lacking for reasons to lie awake at night, this should help fill the need.
U.S. Falling Into the Islamic State’s Trap
This post almost exactly echos my thoughts about these ISIS (or whatever they call themselves) dewds in Iraq: they are going to fade away if they can’t get the US to attack them. The average Joe and Jill in the US has not the faintest idea of the chaos in the middle east, the competing loyalties, the family ties that go back thousands of years, the fact that there hydraulic despotism (literal as well as figurative) all around the region due to its arid nature, etc. Also, the average Joe/Jill won’t take a few minutes to do any research to see if that spouts from the mouths of our ‘great leaders’ is anything but nonsense, the most glaring that Saddam was in bed with al-Qaeda (exactly the opposite: he hunted down and exterminated any trace of it he could find; the fact that despite his efforts there were some members in Iraq shouldn’t come to any surprise to anyone who isn’t surprised that Ted Kaczynski spent 17 years bombing people right here in the good old USofA). As such Americans have this rather quaint idea that unlike, say, the gangs in LA, the mob in Chicago, etc., the Middle East is a monolithic entity and only simple things happen. Heck, just drive up into the mountains of West Virginia and check out the feuds that ‘only’ go back a hundred years or so. Why should we expect a region that is literally the seat of civilization be immune from such things? So, the region is entirely fragmented by competing groups with various levels of influence and reach and after spending trillions of dollars and inflaming millions of people (and creating 10’s of thousand more terrorists!) by elevating Osama and al-Qaeda to the top of the pile, now we are going to do the courtesy of shifting our efforts to magnifying ISIS instead. How many trillions will we spend making ISIS the rally point for all the new terrorists we will be creating as we go about dropping bombs in this highly volatile region?
Sometimes I have to wonder if this really is an emotional knee-jerk (emphasis on ‘jerk’) reaction by our ‘great leaders’ or if it is really part of a 0.1% agenda to keep the (borrowed; anyone notice that once again we are going to ‘war’ without paying for it?) money flowing into the military-intelligence industrial complex? Sometimes I almost think Osama was being paid by the 0.1% to stir everything up. Perhaps those wearing tin foil hats have it right and we are all just bizarre puppets in some even more bizarre version of the Matrix, except we aren’t in a computer generated world where the computers harvesting our bio-electricity, we are in a world generated by the elite and they are harvesting our money.
The real Olive Garden scandal: Why greedy hedge funders suddenly care so much about breadsticks
Remember that “hilarious” report last week ripping the chain eatery to pieces? The back story will infuriate you
This is really the core problem with our ‘capitalistic’ society, the thieves have been put in charge. I recall reading a case study when I was back in MBA school, more than 20 ago, which was already many years old already: a predatory investor had figured out that some lumber company (long since gone now, I imagine, but I recall it being a well-known name at the time) that owned thousands of acres of mature forest carried the land on the books for the original purchase value. Realizing that the stock was grossly undervalued as a consequence, he got a bunch of cronies to pool their money to purchase a controlling interest in the stock (which is almost always way, way less than 51%, sometimes can be as little as 1 or 2%), then immediately had the land appraised which caused the stock price to skyrocket. Not content with that, he then proceeded to have all the mature forest (and some of the immature forest) logged all at once, which not only destroyed the assets of the company but caused the price of lumber to crash. Then he sold the stock before anyone was smart enough to do the calculations and realize the company was now valueless and made a humongous pile of money. That the company was completely destroyed and the livelihood of thousands of people permanently thrown in the crapper was totally fine, it was all about the bucks. This guy (don’t remember his name now, but it wasn’t like it was a secret) was sort of the trigger that lead to the massive amount of ‘corporate raiding’ that been going on since and is manifest today as the hedge funds that pick off poorly controlled companies (generally meaning that there is no committed executive with lots of stock and those stock holders that do own large blocks don’t care about the longevity of the company) that are undervalued for some reason and destroy them in the name of ‘capitalism’.
Ain’t America Grand?
Crystals Reveal Early Earth Wasn’t as ‘Hellish’ as Previously Thought
It is increasingly being held that there was water on the surface of the early Earth, possibly even before the impact that created the moon. During the late heavy bombardment models indicate that despite the wide prevalence of a molten surface on the Earth, there were locations that would have been wet and thus hospitable to early life. It is highly unlikely that we could have survived, but there are plenty of members of the Archaea that would have found the conditions perfect for life (I once worked with an organism that was most happy in dilute battery (sulfuric) acid at 70 C (158 F), for instance). As such, there was probably life from shortly after the Earth cooled from the moon forming impact. Complex life probably took so long to evolve afterwards because the only organisms to survive the late heavy bombardment were probably the ones with the most stable genetic material. For instance I worked with an organism, Nostoc commune I believe, that I was told had DNA so stable that some estimates for the rate of mutation were close to zero, so the organism today is nearly identical with that from a billion years ago. I feel that had the Earth avoided the late heavy bombardment life might not have taken several billion years to evolve into multicellular organisms. Who knows, intelligence might have evolved hundreds of millions of years ago…
Next Generation: Blood-Cleansing Device
An external device that mimics the structure of a spleen can cleanse the blood of rats with acute sepsis, ridding the fluid of pathogens and toxins.
A cool idea, but an interesting caveat:
Fink cautioned that bacterial resistance is a theoretical possibility. “Using this device will remove bacteria that sticks best to MBL, which might select for bacteria that don’t stick well to MBL,” he said. “To underestimate the bacteria would be a mistake.”
I was also amused to note the inclusion of ‘HIV’ and the even more topical ‘Ebola’; got to spew as many buzzwords as possible to maximize your chance of getting into the mainstream press and all the attention that would lead to! Of course, I would do exactly the same, so I can’t blame them…
When machines outsmart humans
I suppose someone should worry about this sort of thing, but much like the The Cambridge Project for Existential Risk I think it is largely a total waste of time (for society, of course; for the individuals involved it can be a very amusing way to pass the time). Once we as a society have reached the point where we are capable of producing AI that is capable of out smarting us, it isn’t likely to happen just once. Indeed, given that technology builds on itself, it is highly likely that many (dozens, perhaps more) groups will achieve the same breakthrough at just about the same time, so what is the chance that _all_ of these groups are working with the same rule book? Even in the unlikely event that that is the case, what is the chance they are doing it correctly (meaning in such a way to avoid the extinction of the human species)? I babble about ‘Skynet‘ from time to time, it is really just a tack-on to the general apocalypse I run off about from time to time.
Anyway, I firmly believe that machine intelligence (e.g., that smarter than we) is inevitable in the not-to-distant future. Unless we kill ourselves with a “12 Monkey’s” event, of course. Were we to somehow design an AI that doesn’t feel the need to destroy the human species (I imagine doing so quite regularly, I can’t imagine an AI not despairing at our idiocy and wanting the peace of mind knowing we won’t spread like a plague across the universe), what then? We are just pets now to coddle and take care of…
Light Detector has Unprecedented Performance
Really interesting concept, being able to cheaply detect terahertz rays (below heat but above microwaves). These rays tend to pass through the surface of most materials and are reflected from deeper within, so once this is worked out in detail we can probably use it to take pictures of people’s insides without exposing them to X-rays. Of course, it may also allow people to see right through cloths, so the good-old ‘XRay’ glasses might finally become a reality.
Our fear of fat is melting
It has been a long time coming, but it seems that the establishment has finally started to accept that high carbohydrate diets (otherwise known as low-fat diets) are bad for you. I speak about the evils of sugar from time to time, but along with Atkins and everyone else who has even hinted that refined carbohydrates are bad for you, no one cares to listen. Of course like everything else in our society, there are huge economic interests in keeping us fed with sugar, so it will be decades at least before anything fundamental changes, but such is life in the great USofA.