Student Loan Debacle

Ripping Off Young America: The College-Loan Scandal
The federal government has made it easier than ever to borrow money for higher education – saddling a generation with crushing debts and inflating a bubble that could bring down the economy
http://www.rollingstone.com/politics/news/ripping-off-young-america-the-college-loan-scandal-20130815

This is a very sad thing to read, but none-the-less I recommend it strongly to my reader(s). I complain about student loans from time to time and still expect to be paying on mine for the next decade (I graduated in ’95). This should be something that gets everyone worked up, but somehow no one seems to give a damn.

Ain’t America Grand?

Born lucky

Practice and Genes
http://dilbert.com/blog/entry/practice_and_genes/

I used to believe that plenty of perspiration with a dash of inspiration would lead to success achieving goals. Now, in my cynical old age, I believe it boils down to the three factors of real estate: luck, luck and luck. If you aren’t born to the right parents (or have the right genes), don’t go to the right schools (or get the right training) and hang out with the right friends (have the right training partners/coaches) your chance of success is about the same as winning the lotto, or, as I like to say, about the same chance of getting struck by lightning, dancing naked on a golf course, at midnight. Though I have achieved notable success on an average scale (though, to be fair, much of that was from the cratering ‘middle class‘ and not so much on me), I have achieved, statistically speaking, zero along my chosen path (to build space stations, for those of you not regular reader(s)). Maybe it was rose colored glasses when I was a youth, but it seems to me that when I was young (going on 35 years ago now, man that is a big number!) there were people who achieved their goals through perspiration and inspiration. Today those people are lotto winners (also for you not-regular-readers: ‘lotto winners’ is a generic term for me to represent big payouts at very long odds) and for the most part are individually trumpeted. Back in the ‘good old days’ these kinds of success were not lauded because they (as I recall) were common enough to be boring.

Genes go a very long way to having success in many areas, but genes alone, meaning without extensive practice AND the determination to succeed, account for very little once one is out of high school. Self successful people tend to have a variety of common traits and while the right genes (parents) are certainly among them, they also have a wide streak of determination and the willingness to put in long hours training (which, for a more sedentary position, like a PhD or MBA, might be hours and hours of research). Genes without perspiration and genes without determination are just amusing stories to tell others about ‘lost’ potential. So, yes, luck plays a huge part (get a lock on the parents, schools and friends and you have to work hard to screw it up), but not an exclusive part. Luck without the ‘genes’ to take advantage of the random opportunities that life throws at you on a daily basis is just more sad stories about ‘lost’ potential.

Smart dust

Devices Connect with Borrowed TV Signals, and Need No Power Source
Devices that can make wireless connections even without an onboard battery could spread computing power into everything you own.
http://www.technologyreview.com/news/518111/devices-connect-with-borrowed-tv-signals-and-need-no-power-source/

It has been a while, sorry to my regular reader(s). Nothing has really grabbed me until this…

One of the reasons for the phenomenal increase in wireless gadgets has been the phenomenal _decrease_ in energy consumption to operate them (remember the initial cell phones? They weren’t nicknamed ‘bricks’ for nothing! My parent’s was practically hard-wired into their car and while in principle portable, it was too heavy to move regularly, and that was just a couple of decades ago). Our current environment is awash in electromagnetic radiation (of radio/microwave origin, it is also awash in sun light half of every day and light is electromagnetic radiation) and I have often wondered about extracting that energy for some sort of use (see rectenna). This article is interesting because they have demonstrated that it is indeed feasible, now someone just has to develop a compelling use case and produce the product for less than what it is worth…

Prisoner’s Dilemma Writ Large

The prisoner’s dilemma:

Two members of a criminal gang are arrested and imprisoned. Each prisoner is in solitary confinement with no means of speaking to or exchanging messages with the other. The police admit they don’t have enough evidence to convict the pair on the principal charge. They plan to sentence both to a year in prison on a lesser charge. Simultaneously, the police offer each prisoner a Faustian bargain. If he testifies against his partner, he will go free while the partner will get three years in prison on the main charge. Oh, yes, there is a catch … If both prisoners testify against each other, both will be sentenced to two years in jail.

It is an interesting idea in game theory and when I have read about it in the past it was sort of an academic idea that didn’t speak to me in a visceral level. This was compounded when I would see the same dilemma play out in several of the police procedural shows my wife and I like to watch. However, I was just over at another blog where I was prompted to comment on what I termed the Walmart phenomenon. After I clicked ‘send’ I started to think that my little theory is a real-world example of the prisoner’s dilemma, but with many actors who are in isolation because of their reluctance to communicate.

So here is my basic idea: When a Walmart comes to town often the locals get up in arms in anger because they expect that dramatically fewer shoppers will choose to spend at the local shops because of the (often dramatically) lower prices at Walmart. In most instances the Walmart opens anyway and an interesting thing happens: many of the same people that complained about the store are none-the-less in there shopping. Each consumer, individually, makes the best decision for their own circumstances (pay much less for the same or functionally identical product), yet in aggregate, those decisions have a dramatic negative impact on their collective future. When their dollars are spent on goods domestically produced (as opposed to goods produced overseas), those dollars have a multiplication effect in the domestic economy. As a consequence, for instance, paying $10 for a domestically produced T-shirt might actually pay back the individual (through an overall gain to society) more than the savings than if they paid, say, $5 for the functionally identical T-shirt at Walmart that was produced overseas. Thus, as a society, we are all in the prisoner’s dilemma…

Much like how the cooperating prisoners get a lesser charge, but if one squeals on another the squealer goes free, if we, as a society, all could agree that spending the $10 on the T-shirt was best (something I believe has the potential to be proven mathematically) there still exists the opportunity for individuals to buy the $5 T-shirt and thus double the sentence of the cooperating consumers. Of course, acting in aggregate a small enough fraction wouldn’t have a noticeable impact, but that is probably not a stable situation and society could easily follow the ‘squealers’ over into non-compliance (become squealers) and everyone winds up with a worse sentence (the loss of the multiplier effect).

As I put it in my comment, “I think that the majority of us are complicit in the slitting of our own throats, one tiny decision [purchase] at a time.” Is there a way out? Walmart has become the successful behemoth it is by catering to the ‘squealers’ and I can’t conceive of a situation that would make a rational board change their behavior. Any sort of government ‘interference’, even if it could somehow be pushed past our ruling oligarchy, would run into all sorts of widespread resistance (even in absence of our highly polarized electorate) because individually each person would rather make the decision to save a few bucks now. Perhaps if we switched to the pure virtual economy (something I keep thinking about, but have yet to do any writing about), but that probably implies a level of globalization we, as a society, are likely not yet ready to contemplate.

Ain’t it great?

Tax reform proposals to be secret for 50 years
http://money.cnn.com/2013/07/25/pf/taxes/tax-reform/index.html?hpt=hp_t3

Taking a page from the Obama (“our rationale for killing US citizens has to remain secret so the terrorists can’t take advantage of it”) playbook now the Senate is going to keep its public deliberations secret. Maybe the pendulum is about to start swinging back (I have read some bloggers (here for instance) that think that this Snowden thing is the trigger for the return), but I am not so sure. I was pretty sure that Bush Jr. was going to declare Marshall Law to keep himself in office a while longer and was a wee bit surprised when he allowed the normal transition of power to take place. However, given my predilections to think that Obama is the Antichrist (and here for why the right might back him), I am starting to wonder if he will be the one to do it instead. He has done nothing but shred our Constitution since he took office (and it was pretty damn tattered after Cheney was done with it!), why not got that extra step and install himself as dictator? After all, it is trivial to argue that the Congress is not acting in the best interests of our nation, I imagine he could get a lot of popular support for declaring Congress Null and Void (not that they are likely to object much, heck, they might go ahead and vote him in as dictator! Not that much different from the powers they have already given him). I (re)developed these suspicions when I heard about his recent speech where he blamed everything on Congress. Funny thing is, anything that is related to defense or security has full bipartisan support, so the ‘obstruction’ there is only in the minds of a few liberals that still believe the Kool-Aid that Obama fed them back in the primaries of his first election.

Megadose vitamins due to one man

The Vitamin Myth: Why We Think We Need Supplements
http://www.theatlantic.com/health/archive/2013/07/the-vitamin-myth-why-we-think-we-need-supplements/277947/

I guess I was too young to appreciate Pauling in his prime. By the time I was old enough to form lasting impressions he was already starting to be considered a crank and most of what I have read about him has been post-crank, so I never really developed any sort of hero worship for the guy (sort of like Hoyle and his Steady State idea). Reading this article was quite eye opening to me. More than likely had Pauling kept his mouth shut the ‘Nutraceutical‘ industry would be a fraction of its size (and possibly regulated by the FDA, not that that doesn’t come with its own baggage).

The evidence is quite solid now, mega dose vitamins shorten your life and increase the risk of cancer and disease.

Time to buy copper!

A Shuffle of Aluminum, but to Banks, Pure Gold
http://www.nytimes.com/2013/07/21/business/a-shuffle-of-aluminum-but-to-banks-pure-gold.html?pagewanted=all&_r=0

A very interesting read on how the great USofA now works. In addition to the direct tax payer transfer from the govt to special interests (no less than sixteen _trillion_ dollars!), now we have a govt sponsored ‘tax’ that pulls another $5 billion dollars out of people’s pockets. Of course, that is pennies compared to the ‘tax’ on crude oil:

In 2011, for instance, an internal Goldman memo suggested that speculation by investors accounted for about a third of the price of a barrel of oil. A commissioner at the Commodity Futures Trading Commission, the federal regulator, subsequently used that estimate to calculate that speculation added about $10 per fill-up for the average American driver. Other experts have put the total, combined cost at $200 billion a year.

And pennies, of course, compared to the above mentioned $16 trillion dollars ponied up directly by the tax payer, but when our idiot ‘sequester’ is about shaving a few 10’s of billions off our (admittedly bloated; why do we need so many aircraft carriers?) budgets we have at least $200 billion being sucked out of our economy because of accounting trickery with zero (really, can it even be that high? surely it must be very negative) benefit to our nation.

Portions of the article talk about how JP Morgan is trying to do with copper what Goldman is already doing with aluminum, so brace yourself for sky high copper prices in the next few years. I am not sure it even qualifies as speculation since I am quite sure that these massive ‘banks’ have the fix solidly in.

PIXAR explained

The Pixar Theory: Every Character Lives in the Same Universe
http://mashable.com/2013/07/12/the-pixar-theory/

A pleasant diversion, this article, and I highly recommend it to those who have enjoyed Pixar movies (note to those of you who haven’t seen them: they are, for the most part, equally as watchable for adults as for kids). It rather interestingly ties all the movies together and explains a lot of otherwise difficult to explain issues.

Lets make it even easier for people to get fleeced!

SEC lifts ban on hedge fund ads
http://www.usatoday.com/story/money/business/2013/07/10/hedge-fund-ads/2505463/

There appeared to be a brief period where, after costing the US economy at least $22 trillion dollars and probably no less than twice that in the global economy, where some regulation would be put back into the system. However, we are now back to more than business as usual, letting hedge funds advertise to the even more credulous lottery playing sheeple will be sure to increase profits at hedge funds beyond their already unbelievable rate (what is with this 2% + 20% business anyway? And why can’t I get in on the action?) by extracting money from said sheeple’s pockets. Oh yea, they will be sure to require a signed document stating the ‘investor’ (gambler, something that is true for most hedge funds already) is ‘accredited’, but no different than the liar loans people will cheerfully sign on the dotted line.

Ain’t America Great?

Forensic Flies

Forensic Fly Moves North
Insects can aid death investigations, but non-native species complicate matters.
http://news.nationalgeographic.com/news/2013/07/130710-fly-blowfly-forensic-time-of-death-climate-science/

Kinda gross, but interesting to me since I have been interested in forensics since a teenager (I was _extremely_ skeptical of the original CSI because I was used to seeing forensics being done badly, I was pleasantly surprised to see it wasn’t totally BS (however, that Miami thing was embarrassing (never watched the NY version))). This sort of thing will lead to a field day for the defense as they can now make the bug people’s testimony into nonsense (or more nonsensical than it already is to the 12 clueless people in the box).