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There are great benefits to connectedness, but we haven't wrapped our minds around the costs.

What's Happening ...
Topic: Miscellaneous 7:33 am EDT, Mar 26, 2008

Prompted by a comment from Decius about No Country and catch phrases ...

"The crime you see now, it's hard to even take its measure."

You can't talk about war with someone who has never been there, not because they are stupid or dimwitted, but because they don't have the senses to feel it with."

News reports in February revealed that officials at a West Texas youth prison had been accused of sexually abusing inmates. The revelations that followed included reports of youth beatings, lax medical care and a culture of retaliation against whistle-blowers.

"My name is Shinseki, and I am a soldier," he said, poking fun at his reputation for spartan public statements.

Legislation passed in May was supposed to address the problems. To some extent it did, according to one lawmaker.

"We probably don't have management raping kids now," said state Rep. Jerry Madden.

The studio distributing “The Kite Runner,” a tale of childhood betrayal, sexual predation and ethnic tension in Afghanistan, is delaying the film’s release to get its three schoolboy stars out of Kabul -- perhaps permanently -- in response to fears that they could be attacked by Afghans angered by the film's culturally inflammatory rape scene.

These were dark movies -- the feel-bad films of the year -- conjured up in what movie people seem to collectively sense as grave times, hatched in producers' offices and on writers' laptops not long after the 2004 election and amid increasing setbacks in the Iraq war and gloomy environmental warnings. Some of the filmmakers and actors wore orange ribbons or rubber bracelets to protest alleged incidents of torture by the United States at its prison in Guantanamo Bay, and in Afghanistan and Iraq -- the subject of "Taxi to the Dark Side," which won Best Documentary Feature.

When not offering a surfeit of death and gloom, Academy nominees this year focused, in at least some metaphorical way, on all the looming issues:

Lovers died in a time of war; the thirst for oil took precedence over humanity; greedy corporate types stooped lower than low; a killer roamed the desolate US-Mexican border... [ Read More (1.1k in body) ]


Flash in the Pan
Topic: Cars and Trucks 7:51 pm EDT, Mar 24, 2008

Since people seemed to like the Akira motorcycle, I thought I'd mention the Mach 5 on display at the New York Auto Show.

Also appearing on the show floor are some unique vehicles that first came to life on-screen, including the Mach 5, a prop car from the upcoming "Speed Racer" film.

Flash in the Pan


Standard Operating Procedure
Topic: Documentary 7:36 pm EDT, Mar 23, 2008

Errol Morris's latest film opens April 25.

Is it possible for a photograph to change the world? Photographs taken by soldiers in Abu Ghraib prison changed the war in Iraq and changed America’s image of itself. Yet, a central mystery remains. Did the notorious Abu Ghraib photographs constitute evidence of systematic abuse by the American military, or were they documenting the aberrant behavior of a few “bad apples”? We set out to examine the context of these photographs. Why were they taken? What was happening outside the frame? We talked directly to the soldiers who took the photographs and who were in the photographs. Who are these people? What were they thinking?

Over two years of investigation, we amassed a million and a half words of interview transcript, thousands of pages of unredacted reports, and hundreds of photographs. The story of Abu Ghraib is still shrouded in moral ambiguity, but it is clear what happened there. The Abu Ghraib photographs serve as both an expose and a coverup. An expose, because the photographs offer us a glimpse of the horror of Abu Ghraib; and a coverup because they convinced journalists and readers they had seen everything, that there was no need to look further. In recent news reports, we have learned about the destruction of the Abu Zubaydah interrogation tapes. A coverup. It has been front page news. But the coverup at Abu Ghraib involved thousands of prisoners and hundreds of soldiers. We are still learning about the extent of it.

Many journalists have asked about “the smoking gun” of Abu Ghraib. It is the wrong question.

As Philip Gourevitch has commented, Abu Ghraib is the smoking gun. The underlying question that we still have not resolved, four years after the scandal: how could American values become so compromised that Abu Ghraib -- and the subsequent coverup -- could happen?

From the archive:

According to one who was present, Churchill suddenly blurted out: "Are we animals? Are we taking this too far?"

From earlier this month, President Bush:

Because the danger remains, we need to ensure our intelligence officials have all the tools they need to stop the terrorists.

Unfortunately, Congress recently sent me an intelligence authorization bill that would diminish these vital tools. So today, I vetoed it.

Standard Operating Procedure


Exposure
Topic: War on Terrorism 7:36 pm EDT, Mar 23, 2008

Errol Morris profiles Sabrina Harman, the woman behind the camera at Abu Ghraib.

There were worse pictures than Gilligan. But, leaving aside that photographs of death and nudity, however newsworthy, don’t get much play in the press, the power of an image does not necessarily lie in what it depicts. A photograph of a mangled cadaver, or of a naked man trussed in torment, can shock and outrage, provoke protest and investigation, but it leaves little to the imagination. It may be rich in practical information, while being devoid of any broader meaning. To the extent that it represents any circumstances or conditions beyond itself, it does so generically. Such photographs are repellent, in large part because they have a terrible, reductive sameness. Except from a forensic point of view, they are unambiguous, and have the quality of pornography. They are what they show, nothing more. They communicate no vision and, shorn of context, they offer little, if anything, to think about, no occasion for wonder. They have no value as symbols.

Of course, the dominant symbol of Western civilization is the figure of a nearly naked man, tortured to death—or, more simply, the torture implement itself, the cross. But our pictures of the savage death of Jesus are the product of religious imagination and idealization. In reality, he must have been ghastly to behold. Had there been cameras at Calvary, would twenty centuries of believers have been moved to hang photographs of the scene on their altarpieces and in their homes?

The image of Gilligan achieves its power from the fact that it does not show the human form laid bare and reduced to raw matter but creates instead an original image of inhumanity that admits no immediately self-evident reading. Its fascination resides, in large part, in its mystery and inscrutability—in all that is concealed by all that it reveals. It is an image of carnival weirdness: this upright body shrouded from head to foot; those wires; that pose; and the peaked hood that carries so many vague and ghoulish associations. The pose is obviously contrived and theatrical, a deliberate invention that appears to belong to some dark ritual, a primal scene of martyrdom. The picture transfixes us because it looks like the truth, but, looking at it, we can only imagine what that truth is: torture, execution, a scene staged for the camera? So we seize on the figure of Gilligan as a symbol that stands for all that we know was wrong at Abu Ghraib and all that we cannot -- or do not want to -- understand about how it came to this.

From the archive:

According to one who was present, Churchill suddenly blurted out: "Are we animals? Are we taking this too far?"

From last month, President Bush:

Frei: The Senate yesterday passed a bill outlawing water-boarding. You, I believe, have said that you will veto that bill.

Mr Bush: That's not -

Frei: Does that not send the wrong signal ...

Mr Bush: No, look... that's not the reason I'm vetoing the bill. The reason I'm vetoing the bill - first of all, we have said that whatever we do ... will be legal.

Exposure


Wall Street's crisis
Topic: Economics 9:20 am EDT, Mar 23, 2008

Goldman Sachs's latest calculations (*), which suppose that American house prices will eventually fall by 25% from their peak, suggest that total losses will reach just over $1.1 trillion.

That suggests a serious problem, but not a catastrophic banking crisis.

Unfortunately, things are not quite so simple.

It would not take many homeowners to walk away from their debts for the losses to grow rapidly.

(*) About that estimate, and a more pessimistic alternate view:

In reaching its conclusion, Goldman estimated a peak-to-trough house price fall of 25 per cent. In his comments on the FT’s forum, Professor Roubini suggests that, after price falls of 20 per cent from the peak, losses on mortgages could be as much as $1,000bn. With a 40 per cent fall, they could be $2,000bn. He adds another $700bn for other losses, to reach total financial sector losses of close to $3,000bn, or about 20 per cent of GDP.

So how does Roubini reach these much higher figures? The difference between him and Goldman is not so much in assumptions about the house price fall: 25 per cent for Goldman Sachs and 20-40 per cent for Roubini. Both also estimate that lenders would lose half of the loan value after repossession. But Goldman believes that just 20 per cent of households in negative equity would default, while Prof Roubini believes 50 percent might default.

Wall Street's crisis


Peeps Show II
Topic: Arts 10:51 am EDT, Mar 22, 2008

The second annual Sunday Source Peeps Diorama Contest drew more than 800 sugar-filled entries from our readers. Here, the 37 best creations.

Peeps Show II


On Corporate Power and Natural Living
Topic: Futurism 8:31 pm EDT, Mar 21, 2008

I have often referenced this essay and people seem to ignore it, but I thought that it might make a good companion piece to Paul Graham's latest essay.

The belief that corporate power is the unique source of our problems is not the only idol we are subject to. There is an idol even in the language we use to account for our problems. Our primary dependence on the scientific language of “environment,” “ecology,” “diversity,” “habitat,” and “ecosystem” is a way of acknowledging the superiority of the very kind of rationality that serves not only the Sierra Club but corporate capitalism as well.

... Perhaps the most powerful way in which we conspire against ourselves is the simple fact that we have jobs. We are willingly part of a world designed for the convenience of what Shakespeare called “the visible God”: money. When I say we have jobs, I mean that we find in them our home, our sense of being grounded in the world, grounded in a vast social and economic order. It is a spectacularly complex, even breathtaking, order, and it has two enormous and related problems. First, it seems to be largely responsible for the destruction of the natural world. Second, it has the strong tendency to reduce the human beings inhabiting it to two functions, working and consuming. It tends to hollow us out.

Paul Graham says:

In an artificial world, only extremists live naturally.

It will always suck to work for large organizations, and the larger the organization, the more it will suck.

Watching employees get transformed into founders makes it clear that the difference between the two is due mostly to environment—and in particular that the environment in big companies is toxic to programmers. In the first couple weeks of working on their own startup they seem to come to life, because finally they're working the way people are meant to.

From last fall:

In The Culture of the New Capitalism, a book based on a series of lectures given at Yale in 2004, Richard Sennett describes how the widespread use of enterprise systems has given top managers much greater latitude to direct and control corporate workforces, while at the same time making the jobs of everyday workers and professionals more rigid and bleak.

The spread of Enterprise Systems has resulted in a declining emphasis on creativity and ingenuity of workers, and the destruction of a sense of community in the workplace by the ceaseless reengineering of the way businesses operate. The concept of a career has become increasingly meaningless in a setting in which employees have neither skills of which they might be proud nor an audience of independently minded fellow workers that might recognize their value.

On Corporate Power and Natural Living


Amy, Amy, Amy
Topic: Music 8:31 pm EDT, Mar 21, 2008

So where's my moral parallel?

Amy, Amy, Amy


America was conned - who will pay?
Topic: Business 10:36 pm EDT, Mar 20, 2008

The crisis will only end when house prices stop falling and banks stop racking up huge losses on their loans. Doing that, however, will require the US government to intervene directly in the real estate market to end the wave of foreclosures. Ideologically, it is ill-equipped to take that step and, as a result, property prices will fall and the financial meltdown will go on and on.

Business, of course, needs consumers to carry on spending in order to make money, so a way had to be found to persuade households to do their patriotic duty. The method chosen was simple. Whip up a colossal housing bubble, convince consumers that it makes sense to borrow money against the rising value of their homes to supplement their meagre real wage growth and watch the profits roll in.

As they did - for a while. Now it's payback time and the mood could get very ugly. Americans, to put it bluntly, have been conned.

In the longer term, lessons must be learnt from the turmoil. One is that you don't solve the problems of a collapsing bubble by blowing up another, which is what Alan Greenspan did after the dotcom fiasco in 2001 - the most irresponsible behaviour of any central banker in living memory.

From the archive:

The belief that corporate power is the unique source of our problems is not the only idol we are subject to. There is an idol even in the language we use to account for our problems.

... Perhaps the most powerful way in which we conspire against ourselves is the simple fact that we have jobs. We are willingly part of a world designed for the convenience of what Shakespeare called "the visible God": money. When I say we have jobs, I mean that we find in them our home, our sense of being grounded in the world, grounded in a vast social and economic order. It is a spectacularly complex, even breathtaking, order, and it has two enormous and related problems. First, it seems to be largely responsible for the destruction of the natural world. Second, it has the strong tendency to reduce the human beings inhabiting it to two functions, working and consuming. It tends to hollow us out.

From last summer:

How far do housing prices have to fall before a slump becomes a bust?

If the pessimists are right that there’s more to come, look out. A 10 percent decline in prices is likely to feel pretty awful. And then everyone might agree on what a housing bust is.

From January:

Because all asset hyperinflations revert to the mean, we can expect housing prices to decline roughly 38 percent from their peak.

America was conned - who will pay?


Don't Fear the Bear
Topic: Business 10:29 pm EDT, Mar 20, 2008

Barry "Big Picture" Ritholtz:

How on Earth was a strawberry-picker in California making $15,000 a year able to qualify for a no money down loan on a $720,000 mortgage? That is just unconscionable.

Housing prices might not fall all at once, though -- they can just go sideways for twelve years and that's the inflation-adjusted equivalent of a 20 percent drop.

It was so obvious it was going to fall apart eventually. What is so amazing is how long it took to actually happen.

From James Suroweicki in early November:

The havoc on Wall Street following the collapse of the subprime-mortgage market boils down to a simple truth: for years, lots of very smart people took lots of very foolish risks, betting borrowed billions on dubious mortgage derivatives, and eventually the odds caught up with them. But behind that simple truth is a more surprising one: the financial whizzes made bad decisions in part because that’s what they were paid to do.

One lesson of the current market chaos, then, is that it’s hard to get incentives right.

From 159 years ago, on incentives:

It hits the poor, not because it wants to hurt them, but to frighten the rich ...

From a Financial Times op-ed by Lawrence Summers, in a popular thread from late November:

Without stronger policy responses than have been observed to date, there is the risk that the adverse impacts will be felt for the rest of this decade and beyond.

Don't Fear the Bear


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