One day, you may be lucky enough to have a scarcity problem. A product or a service or even a job that's in such high demand that people are clamoring for more than you can make.

We can learn a lot from the abysmal performance of Apple this weekend. They took a hot product and totally botched the launch because of a misunderstanding of the benefits and uses of scarcity.

Seth's Blog: Scarcity

Andy Grove:

Energy independence is the wrong goal. Here is a plan Americans can stick to.

Our Electric Future

I once decided it would be a good idea to name a bar in San Antonio “The Basement” so tour guides at the Alamo actually have an answer when jokesters ask where the basement is. But it turns out there actually is a bar in San Antonio called The Basement. This time I’ve got a name for a bar that doesn’t seem to exist already as far as my Google Search can tell (I’m sure someone will tell me if I’m wrong). This bar would probably best be located in Silicon Valley: "The Progress Bar".

A while back, a group of us joked about opening a restaurant called The Random Wok. Nominally, it's a Chinese restaurant, but there is no menu, and there are no waitstaff to take your order. Instead, you walk in and sit down at a table, any table. People emerge from the kitchen at unpredictable intervals, arbitrarily carrying trays of unspecified foods to randomly selected tables. It's like a cross between dim sum and churrascaria, except that both the food and the service are systematically unsystematic.

Ironic Sans: Idea: A Bar in Silicon Valley

A choice quote:

"I tell people: buying a house, and buying a house on fire, are two different things."

Two other thoughts:

The economy is virtually unfathomable.

We don't know how bad it's going to get.

See also part two.

Charlie Rose Talks to Jamie Dimon, CEO at JP Morgan, at the Aspen Ideas Festival

Malcolm Gladwell on the challenge of hiring in the modern world

His new book comes out in November.

From the archive:

The evidence suggests that from an executive perspective, the most desirable employees may no longer necessarily be those with proven ability and judgment, but those who can be counted on to follow orders and be good "team players."

Here the purpose of the personality tests administered by career coaches becomes clear. They are useless as measures of ability and experience, but they may be reliable indicators of those who are "cheerful, enthusiastic, and obedient." The dismal experiences of many middle-aged job seekers suggest that corporations would rather find conformists among younger workers who haven't been discarded by employers and aren't skeptical about their work.

The Mismatch Problem

The truth, though it would not exactly set Americans free, would at least open a window to wider economic and political understanding. Readers should ask themselves how much angrier the electorate might be if the media, over the past five years, had been citing 8 percent unemployment (instead of 5 percent), 5 percent inflation (instead of 2 percent), and average annual growth in the 1 percent range (instead of the 3–4 percent range). We might ponder as well who profits from a low-growth U.S. economy hidden under statistical camouflage. Might it be Washington politicos and affluent elites, anxious to mislead voters, coddle the financial markets, and tamp down expensive cost-of-living increases for wages and pensions?

Let me stipulate: the deception arose gradually, at no stage stemming from any concerted or cynical scheme. There was no grand conspiracy, just accumulating opportunisms. As we will see, the political blame for the slow, piecemeal distortion is bipartisan—both Democratic and Republican administrations had a hand in the abetting of political dishonesty, reckless debt, and a casino-like financial sector. To see how, we must revisit forty years of economic and statistical dissembling.

Numbers racket: Why the economy is worse than we know

For the published authors (and book wonks) in the house:

Booklert lets you keep track of the Amazon rank of your (or anyone else's) books. You get an email or a tweet of the latest ranks at regular intervals. And you choose how often - anything from every hour, to once a week.

Booklert

Our tissues, genes, and organs are becoming, in the words of the head of one pharmaceutical company, 'the currency of the future'. From the trafficking of women for their eggs to 'beauty junkies', Donna Dickenson reveals the ingenious ways that body parts are converted into profits. Drawing on 20 years of insider knowledge, Dickenson's sweeping exploration goes beyond the horror stories to suggest a range of strategies to bring the global biotechnology industry to heel.

Body Shopping: The Economy Fuelled by Flesh and Blood

This presentation provides an analysis of the various factors behind a six year, six-folding in oil prices and the market conditions likely to either accelerate that rise or result in a significant downturn.

Next Stop for Oil Prices: $100 or $150?

The subprime mortgage crisis has already wreaked havoc on the lives of millions of people and now it threatens to derail the U.S. economy and economies around the world. In this trenchant book, best-selling economist Robert Shiller reveals the origins of this crisis and puts forward bold measures to solve it. He calls for an aggressive response--a restructuring of the institutional foundations of the financial system that will not only allow people once again to buy and sell homes with confidence, but will create the conditions for greater prosperity in America and throughout the deeply interconnected world economy.

Shiller blames the subprime crisis on the irrational exuberance that drove the economy's two most recent bubbles--in stocks in the 1990s and in housing between 2000 and 2007. He shows how these bubbles led to the dangerous overextension of credit now resulting in foreclosures, bankruptcies, and write-offs, as well as a global credit crunch. To restore confidence in the markets, Shiller argues, bailouts are needed in the short run. But he insists that these bailouts must be targeted at low-income victims of subprime deals. In the longer term, the subprime solution will require leaders to revamp the financial framework by deploying an ambitious package of initiatives to inhibit the formation of bubbles and limit risks, including better financial information; simplified legal contracts and regulations; expanded markets for managing risks; home equity insurance policies; income-linked home loans; and new measures to protect consumers against hidden inflationary effects.

This powerful book is essential reading for anyone who wants to understand how we got into the subprime mess--and how we can get out.

The Subprime Solution: How Today's Global Financial Crisis Happened, and What to Do about It