Coyote Blog

Via Zero Hedge, Time's covers around the world this week.  Spot the outlier

I am actually sympathetic to the case that the NCAA should allow student athletes to make money as athletes (just as student business majors are allowed to make money in business and student musicians are allowed to make money in music).

But seriously?  Probably the highest profile, most contentious international diplomatic crisis of the last five years and Time chose not to put it on the cover this week?  There are only two explanations, and neither are good.  1)  Time felt that a story about American mis-steps might hurt sales.  or 2)  Time is protecting their guy in the White House.  The athlete cover story does not have an expiration date, so is the kind of story a magazine holds for a slow week.  It is hard to describe last week as a "slow week."

Catastrophic Anthropogenic Climate Change is the magic theory -- every bit of evidence proves it.   More rain, less rain, harder rain, drought, floods, more tornadoes, fewer tornadoes, hotter weather, colder weather, more hurricanes, fewer hurricane -- they all prove the theory.  It is the theory that it is impossible not to confirm.  Example

It will take climate scientists many months to complete studies into whether manmade global warming made the Boulder flood more likely to occur, but the amount by which this event has exceeded past events suggests that manmade warming may have played some role by making the event worse than it otherwise would have been...

An increase in the frequency and intensity of extreme precipitation events is expected to take place even though annual precipitation amounts are projected to decrease in the Southwest. Colorado sits right along the dividing line between the areas where average annual precipitation is expected to increase, and the region that is expected to become drier as a result of climate change.

That may translate into more frequent, sharp swings between drought and flood, as has recently been the case. Last year, after all, was Colorado's second-driest on record, with the warmest spring and warmest summer on record, leading to an intense drought that is only just easing.

Generally one wants to point to a data trend to prove a theory, but look at that last paragraph.  Global warming is truly unique because it can be verified by there being no trend.

I hate to make this point for the five millionth time, but here goes:  It is virtually impossible (and takes far more data, by orders of magnitude, than we posses) to prove a shift in the mean of any phenomenon simply by highlighting occasional tail-of-the-distribution events.  The best way to prove a mean shift is to actually, you know, track the mean.  The problem is that the trend data lines for all these phenomenon -- droughts, wet weather, tornadoes, hurricanes -- show no trend, so the only tool supporters of the theory have at their disposal is to scream "global warming" as loud as they can every time there is a tail-of-the-distribution event.

Let's do some math:  They claim this flood was a one in one thousand year event.  That strikes me as false precision, because we have only been observing this phenomenon with any reliability for 100 years, but I will accept their figure for now.  Let's say this was indeed a one in 1000 year flood that it occurred over, say, half the area of Colorado (again a generous assumption, it was actually less that that).

Colorado is about 270,000 KM^2 so half would be 135,000 KM^2.  The land area of the world (we really should include oceans for this but we will give these folks every break) is about 150,000,000 km^2.  That means that half of Colorado is a bit less than 1/1000 of the world land area.

Our intuition tells us that a 1 in 1000 year storm is so rare that to have one means something weird or unusual or even unnatural must be going on.  But by the math above, since this storm covered 1/1000 of the land surface of the Earth, we should see one such storm on average every year somewhere in the world.  This is not some "biblical" unprecedented event - it is freaking expected, somewhere, every year.  Over the same area we should also see a 1 in 1000 year drought, a 1 in 1000 year temperature high, and a one in one thousand year temperature low -- every single damn year.  Good news if you are a newspaper and feed off of this stuff, but bad news for anyone trying to draw conclusions about the shifts in means and averages from such events.

I have a column up at Forbes on Monday discussing the irony of how progressives, in opposing Larry Summers as Fed Chairman, have essentially made common cause with the 1%, who opposed Summers because they feared that he might end the quantitative easing gravy train for the financial markets.

Save the Cat.  It is actually a book on screenwriting, but you don't need to be a writer to enjoy it.  I zipped through it in a few hours.  I just downloaded the sequel, which is perhaps more targeted at movie buffs in that it takes his framework from the first book and shows how 30 famous movies follow it.

The reason it is compelling is that it lays out the script formula -- down to the minute -- followed by a LOT of modern movies.  I have seen the structure discussed in this book repeated in enough other books to be convinced that it is indeed the formula used by most writers, taught to most amateurs, and eschewed only by the most confident.

My wife's first reaction was: how limiting, to turn movies into repetitious formulas.  There is in fact a substantial school of thought that Save the Cat has singled-handedly killed movie-making creativity.    I understand and sympathize with that response, but remember that symphonies and sonnets and Shakespeare plays and Greek tragedies all have a defined "standard" formula as well.   Here, for example, is the typical structure of a Sonata (many or even most first movements of symphonies are in this format) (source)

Even when artists violated these forms, they were familiar with the forms and knew they were violating them and were doing so for a reason.  When you take Music 101, a lot of the time is learning these forms.  So why shouldn't one do something similar in trying to appreciate film?

Save the Cat presents the movie version of this.  Other books like this book provide a separate take.  But what is amazing is not that they are different -- they use different terminology -- but how absolutely similar they are when you cut through the jargon, down to the script page numbers for each event.

PS-  This may be one of those if you can't do, teach things.  His book on writing screenplays is a bestseller, though he only had two movies produced from his work (he died fairly young) and one of these won a Razzie for worst screenplay of the year.  To some extent, it all depends on how you define "success".  He sold a couple of dozen spec scripts, which is the very definition of "not easy".

Seriously, I am not joking.  The Arkansas State Police apparently reserve the right not to consider any complaints of police brutality or mis-use of force if they are not filed within a half hour of the incident:

The killing led to a town hall meeting Monday, and the city prosecutor, Kyle Hunter, was assigned to investigate, saying his job was to determine whether the actions were justified. Hunter requested an investigation by the state police, who were not called in following the killing of the 107-year-old Isadore, but, theArkansas Times reports, state police declined Hunter’s request:

With the lapse in time, [Arkansas State Police’s Bill] Sadler said, the crime scene has been compromised, the local law enforcement agency (the Pine Bluff PD) has already processed the evidence, and the witnesses were (long since) no longer sequestered. "It's a credibility issue and a forensic issue," he said.

"APB routinely responds to those requests when they come in in a timely matter," he said. He said that requests typically come within 30 to 40 minutes after deadly force was used.  Sadler said that there was no law or protocol requiring local authorities to call in the state police in a situation in which an officer uses deadly force. "That is the choice of the local jurisdiction," he said. If called, they could have arrived within half an hour, he said. "We would have immediately responded."

I have made this argument before -- your lifetime Medicare taxes cover only about a third of the benefits you will receive.   Social Security taxes are set about right -- to the extent we come up short on Social Security, it is only because a feckless Congress spent all the excess money in the good years and has none left for the lean years.

But Medicare is seriously mis-priced.  I have always argued that this is dangerous, because there is nothing that screws up the economy more than messed up price signals.  In particular, I have argued that a lot of the glowy hazy love of Medicare by Americans is likely due to the fact that it is seriously mis-priced.  Let's price the thing right, and then we can have a real debate about whether it needs reform or is worth it.

A recent study confirms my fear that the mispricing of Medicare is distorting perceptions of its utility.

As debate over the national debt and the federal budget deficit begins to heat up again, an analysis of national polls conducted in 2013 shows that, compared with recent government reports prepared by experts, the public has different views about the need to reduce future Medicare spending to deal with the federal budget deficit. Many experts believe that future Medicare spending will have to be reduced in order to lower the federal budget deficit [1] but polls show little support (10% to 36%) for major reductions in Medicare spending for this purpose. In fact, many Americans feel so strongly that they say they would vote against candidates who favor such reductions. Many experts see Medicare as a major contributor to the federal budget deficit today, but only about one-third (31%) of the public agrees.

This analysis appears as a Special Report in the September 12, 2013, issue of New England Journal of Medicine.

One reason that many Americans believe Medicare does not contribute to the deficit is that the majority thinks Medicare recipients pay or have prepaid the cost of their health care. Medicare beneficiaries on average pay about $1 for every $3 in benefits they receive. [2] However, about two-thirds of the public believe that most Medicare recipients get benefits worth about the same (27%) or less (41%) than what they have paid in payroll taxes during their working lives and in premiums for their current coverage.

Update:  Kevin Drum writes on the same study.  Oddly, he seems to blame the fact that Americans have been trained to expect something for nothing from the government on Conservatives.  I am happy to throw Conservatives under the bus for a lot of things but I think the Left gets a lot of the blame if Americans have been fooled into thinking expensive government freebies aren't really costing them anything.

The other day I joked that most of my memories of Spanish in high school were of trying to learn and conjugate the subjunctive, an activity for which English speakers are not well-prepared.

In fact, the only example of a unique subjunctive verb conjugation I can think of in English is "were".  For example in "if I were a rich man,..."

I am sure there must be others.  I could Google it, but does anyone know any off hand?

Update:  We already have an awesome answer in the comments.  Though I am unclear how anyone that proficient in grammar can stand to regularly read this blog.  Makes me even more self-conscious about proof-reading better, which I actually have been attempting, even if the results are not obvious.

Assume the following conditions:

1. I am increasingly liable for any dumbass thing my employees say or do.  It does not matter if it is absolutely against my values and company rules, if someone, say, uses a racial epithet with a customer or another employee, I will likely at least get sued.  Given my deductibles on insurance, I am out $20,000 a case even if I win.
2. Minimum wages have increased faster than the production value of unskilled, inexperienced laborers.
3. Obamacare is raising the minimum cost of a full-time employee by at least $2,000-$3,000 a year, not including the as-yet-to-be-define but likely expensive record-keeping and administrative requirements 
4. In states like California, the law increasingly gives employees the ability to make new claims on my income (e.g. fake workers comp and disability claims) or to even make themselves un-firable (by asking for a family medical leave, or claiming a disability, or claiming to be a whistle-blower).

Against this backdrop, what am I going to do?  I am going to hire more skilled and experienced workers who justify my minimum employment costs.   I am going to hire mature people less likely to get me in trouble via their immature actions.  I am going to hire people with a long work history so I can see there is not a history of scams and fraud.

In other words, I am going to hire older people.  And thus:

Of all the issues I raised above, the first one gets the least attention but in our customer contact business is perhaps the most important.  The cost of hiring a knucklehead is immense.  And the folks that do stupid stuff in 1 are often the very same people who try to take us in 4.

So much for that Keynesian stimulus notion (emphasis in the original)

With everyone focused on the 5th anniversary of the Lehman failure, we are taking a quick look at how the world's developed (G7) nations have fared since 2008, and just what the cost to restore "stability" has been. In a nutshell: the G7 have added around $18tn of consolidated debt to a record $140 trillion, relative to only $1tn of nominal GDP activity and nearly $5tn of G7 central bank balance sheet expansion (Fed+BoJ+BoE+ECB). In other words, over the past five years in the developed world, it took $18 dollars of debt (of which 28% was provided by central banks) to generate $1 of growth. For all talk of "deleveraging" G7 consolidated debt has been at a record high 440% for the past four years.

The theory of stimulus -- taking money out of the productive economy, where it is spent based on the information of hundreds of millions of people as to the relative value of millions of potential investments, and handing it to the government to spend based on political calculus -- never made a lick of sense to me.  I guess I would have assumed the multiplier in the short term was fractional but at least close to one, indicating in the short run that if we borrow and dump the money into the economy we would get some short-term growth, only to have to pay the piper later.  But we are not even seeing this.

Taxes are usually the heart of the discussion when people talk about the bad business climate in California.  And certainly their taxes are just insanely high.  But for folks like me, an even bigger barrier is the regulatory environment. We are closing several operations in California at the end of this year mainly because we are just exhausted with the compliance costs and regulatory barriers to expansion.    In Ventura County, for example, we have  a camping operation that has never made money because it is under-scale. We have the capital and desire to expand it, but it has just proven impossible to do so.

A big reason for this is the regulation in California and in Ventura County.    We once had to get something like 7 permits just to remove a dangerous and dilapidated deck.  We added a 500 gallon fuel tank for fueling boats (to eliminate the unsafe practice of driving in and out of town with about 100 5-gallon fuel containers) and it took over 3-years of trekking to multiple county and state offices to get it permitted.  We thus despaired of trying to get a campground expansion approved.   Approximately the same expansion that cost us just under a million dollars in Alabama several years ago was going to cost over $5 million and Ventura County, and the County was still piling on requirements when we gave up.  And this is even before we fart with crazy California break laws and other nuttiness.

I have often told folks that I would love to see a liberal defender of all this regulatory overreach try to construct and open a restaurant in Ventura County.  It would be fascinating to watch.   (All this musing was touched off by this article on underground restaurants that try to sidestep this regulatory cost and mess).  We are a service business and California still has a lot of money, so we still operate in California.  But I continue to wonder why any company, like a manufacturer, remains in California.  Sell there yes, but produce anything you can out of state and ship it in.  Even as a service business we do a bit of this, no longer stick-building anything but having all our buildings, cabins, stores, etc built in Arizona as modular buildings and then shipped to California.  Even our labor force is partially "imported", as we hire folks who live in their RV's to come from all over the country to live and work at our campgrounds.

As I read the other day, if Silicon Valley were not already in California, would anyone in their right mind put it there?

Postscript:  One other story:  California's regulatory environment has caused a real shift in the culture as well.  At one location that we are closing this year, a local attorney has regular dinner meetings with groups of our employees to brainstorm among the group to see if they can come up with something to sue us over.

Well, the talking points on Obama and Syria must be out on Jornolist, and we see the results at Kevin Drum's place, among others.  Apparently, Obama's handling of Syria marks him as a great President:

If you want to give Obama credit, give him credit for something he deserves: being willing to recognize an opportunity when he sees it. I can guarantee you that George W. Bush wouldn't have done the same. But Obama was flexible enough to see that he had made mistakes; that congressional approval of air strikes was unlikely; and that the Russian proposal gave him a chance to regroup and try another tack. That's not normal presidential behavior, and it's perfectly praiseworthy all on its own.

In the meantime, it's rock solid certain that Assad isn't going to launch another gas attack anytime soon, which means that, by hook or by crook, Obama has achieved his goal for now. No, it's not the way he planned it, but the best war plans seldom survive contact with reality, and the mark of a good commander is recognizing that and figuring out to react. It may not be pretty to watch it unfold in public in real time, but it's nonetheless the mark of a confident and effective commander-in-chief. It's about time we had one.

Wow, this is so brazenly absurd that if I hadn't lived through the last several decades, I would never have believed it was possible to make something like this stick.  I am so glad that I am not a Red or Blue team member such that I would have to occasionally humiliate myself to support the team like this.

Recently small town Grantville, Georgia police chief Doug Jordan flew out to meet with our very own Sheriff Joe.

Following their meeting, Jordan expressed his hopes to establish Grantville’s own drug team. He also planned to have some of his officers travel to Arizona for training.

Seriously?  A dedicated drug team?  Grantville has a population of 3,096 in 2011.  Here it is in all its metropolitan glory:

Next, they will be wanting a tank.

I wasn't really going to post on this but since it is making the news, Equal Marriage Arizona (of which I am co-chair) is putting on hold our efforts to amend the Arizona Constitution in 2014 and will defer to 2016.

At some point when this quiets down, I will write an extended article about the experience, which was certainly a learning exercise for me (and by the way did nothing to dissuade me from my general default stance of avoiding politics like the plague).

We honestly thought that an effort initiated and led by Republicans and libertarians was the right choice for a heavily red state like Arizona, and I am still convinced of that.  In fact, I think we knocked some of the Conservative opposition on their heels, and several Conservative commentators publicly stated that ours was a dangerously (for them) effective approach.  In addition, a number of prominent Republicans took me aside and thanked me -- they felt that getting this passed would help save the party from its worst impulses.

From the beginning, I had some nervousness that our language was not perfect (though the lawyers were happy with it), but it was polling well and even more than a year in advance we were polling over 50% of probable voters in 2014.

The buzz saw we ran into was not from the  Conservative opposition but from those we thought of as our allies.  Several prominent LGBT and gay marriage groups turned against us early, and pressured nearly every other group on the Left to oppose us, even getting a number of groups who had endorsed us early to withdraw their endorsements.

The reasons for this were myriad, and I may write that story at some future date.  Some of the wounds were self-inflicted on our part, and some were frankly due to my failings as a leader in this political arena.  But I am convinced that these groups were never, ever going to support us.   Some groups honestly worried that 2014 was too early in Arizona.  Others had... other concerns.  Scott Shackford of Reason makes some pretty good guesses, but there were issues beyond these.

We have all read the scare stories that tell us how many chemicals we are exposed to in X food or Y activity.  No evidence of harm from exposure is given, but the very number of chemicals is used to scare us -- certainly something in there must be bad!

Well, prepare to be really frightened of this common food product:

What they found ...[were] over 4,000 different non-volatile compounds across the different samples, results which he presented today at the 246th National Meeting & Exposition of the American Chemical Society. “It’s very complex,” Collins says of the chemistry.

What is he discussing?  Whiskey.  I will add that it also has a lot of dihydrogen monoxide too.

Janet Yellen may soon be a victim of affirmative action.  I know that sounds odd, but I think it is true.

To preface, I have no preferences in the competition to become the next head of the Federal Reserve, and assume that Janet Yellen and Larry Summers are equally qualified.   I don't think the immense power the Fed has to screw with the economy can be wielded rationally by any individual, so it almost does not matter who sits in the chair.  Perhaps someone with a bit less hubris and a little more self-awareness would be better with such power, which would certainly mitigate against Summers.

But Yellen has a problem.  When this horse race first emerged in the press, many in the media suggested that Yellen would be a great choice because she was a woman, and qualified.  Most of the press coverage centered (probably unfairly given that she does seem to be quite qualified) on her woman-ness.  This leaves Yellen with a problem because many people were left with a first impression that the reason to choose her was primarily due to her having a womb, rather than her economic chops.

This is the downside of affirmative action.

I recently discussed a book that sucks, so here is one that does not suck: Wool.  I am not sure what makes it so compelling, but I had a lost couple of days when I blew off what I was supposed to be doing and read all of the first five books (the first few are short so that all five are only about 500 pages altogether).

Save time and buy the anthology.

I don't know how many of you read it, but for me Wool seems to echo many themes from A Canticle for Leibowitz.  The series are totally different in style and content and story-telling and characters, but none-the-less they both address themes like the recurrence, almost cyclicality, of man's failings and the role of rules (even arbitrary rules) and authority in breaking or reinforcing these cycles.

And speaking of things this novel reminded me of, in the latter parts of the anthology we are introduced in Wool to a sort of instruction manual for the state that is a kind of dark version of Seldon's psycho-history in the Foundation novels.

The whole novel is familiar and highly creative at the same time.  Go buy it.

I just finished reading Dan Brown's new novel Inferno.  Dan Brown novels tend to be love-it-or-hate-it things for me.  They are structured exactly like computer adventure games, with a series of quests and puzzles that lead to the next quest or puzzle which eventually reveal a larger story line and a final confrontation.  Just as this sort of adventure game can be engaging or tedious and repetitive, so too can be Dan Brown books.  The Da Vinci Code is excellent, the others are meh, just overly-convoluted snipe hunts.

So I had expected to either love or hate Inferno.  It turns out it was awful, but for an entirely unexpected reason:  for some insane reason, Dan Brown seems to have come under the spell of Paul Ehrlich doomsters, and has crafted a book with a deep fear of population growth that is right out of the 1970's.

Mild spoilers follow (mild meaning most of this is revealed in the first third of the book)

It is clear from almost the beginning of the book that Brown's hero, Robert Langdon, is on the trail of some sort of mad genius who is convinced that the Earth is headed for a horrible collapse due to human population growth.  This character is enamored of the medieval black death and believes that the best thing for modern man would be some sort of repetition of this kind of plague.

The exhausting part for any rational person trying to read this book is that it is clear that the author Brown mostly agrees with this character.  We know this because all of the arguments characters marshal against the villain are so lame and half-hearted.  In general, the tone of the response to this man is "yes, you are absolutely correct that human population growth will inevitably lead to a complete catastrophe but your idea of a plague is a bad solution."

By the end of the book, everyone formerly opposed to this scientist have come around to reluctantly agreeing with his point of view.  If you ever read Tom Clancy's Rainbow 6, where an environmental group tries to kill off most of the world's population, this is essentially the same plot written, incredibly, by an author that seems to agree with the basic idea.  If you are not convinced that Dan Brown himself agrees with the terrorist, I will also provide one more convincing piece of evidence -- though since it is a much bigger spoiler I will leave it for the end below the fold.  If you have read the book or don't intend to, skip below the fold and then come back.

This idea of catastrophic population growth is idiotic.  Accelerating population growth is a trend that is not a trend.

There is absolutely no trend towards out of control population growth.   In fact, the trends actually run in the opposite direction, with birth rates and population growth rates falling such that most demographers foresee an Earth stabilizing around 9-10 billion people and possibly falling in population after that.  Since Dan Brown uses senior UN officials in the book to agree that population growth will result in disaster, I will use UN figures.  These are from a 2005 UN population report.

First, population growth rates have been falling for decades and will continue to fall.  They are falling in every part of the world.

A cynic might argue that this is due to death and disease, but in fact birth rates are falling everywhere

This data is about 10 years old but Wikipedia summarizes the most recent UN data and shows this trend has continued (TFR is total fertility rate):

People focus on the amount the world population has increased over the last 60 years to produce shock numbers, but the real stunner is the drop in fertility rates -- nearly in half, which is really astounding.  I still have my treasured first edition of Ehrlich's Population Bomb.  It is hilarious reading, all the more so because he gets everything so wrong, yet the media still tends to take him seriously.

The recurring theme in Inferno is that man's greatest problem is that he has successfully tackled many diseases and thus increased life expectancy, and it is this longer life expectancy that will be the roots of mankind's Malthusian downfall.

However, exactly the opposite is true.  There is a ton of scientific work that says that longer life spans lead to lower fertility rates  (the other thing that most contributes to lower fertility rates is economic growth).  Here is a chart right out of the UN study linked above showing a clear inverse correlation between life expectancy and birth rates.   Correlation is not causation, but this is backed by a ton of other empirical evidence to support causation.

Wow.

There is no trend towards accelerating population growth -- the trend is in the opposite direction, to deceleration.  And folks who have underestimated man's ingenuity in feeding larger populations have always turned our to be wrong.  Ehrlich said there was no way --- absolutely no way -- India could feed an additional 200 million people by 1980.  Well, in 2013 it feeds an additional 800 million people to a better standard that the country was fed in Ehrlich's time.  Hell, we could probably feed an additional half billion more just by repealing laws that put a significant amount of America's food production into automotive fuels.

PostScript / Large spoiler and more discussion below the fold 

Continue reading ‘Trend That Is Not A Trend: Dan Brown is an Idiot Edition’ »

This is a pretty amazing statement Justin Gillis in the New York Times.

This month, the world will get a new report from a United Nations panel about the science of climate change. Scientists will soon meet in Stockholm to put the finishing touches on the document, and behind the scenes, two big fights are brewing....

In the second case, we have mainstream science that says if the amount of carbon dioxide in the atmosphere doubles, which is well on its way to happening, the long-term rise in the temperature of the earth will be at least 3.6 degrees Fahrenheit, but more likely above 5 degrees. We have outlier science that says the rise could come in well below 3 degrees.

In this case, the drafters of the report lowered the bottom end in a range of temperatures for how much the earth could warm, treating the outlier science as credible.

The interesting part is that "mainstream science" is based mainly on theory and climate models that over the last 20 years have not made accurate predictions (overestimating warming significantly).  "Outlier science" is in a lot of cases based on actual observations of temperatures along with other variables like infrared radiation returning to space.  The author, through his nomenclature, is essentially disparaging observational data that is petulantly refusing to match up to model predictions.  But of course skeptics are anti-science.

Via Reason on Teach for America (TFA)

The best evidence we had before today was a randomized evaluation conducted by Mathematica Policy Research between 2001 and 2003, which found that TFA teachers bested other teachers at teaching math — with gains for students equal to about a month of additional instruction —  and were not significantly different from them on teaching reading.

A follow-up using the same data showed that that result held for students across the math score distribution, not just the average student. “These results suggest that allowing highly qualified teachers, who in the absence of TFA would not have taught in these disadvantaged neighborhoods, should have a positive influence not just on students at the top of the achievement distribution but across the entire math test score distribution,” the authors concluded.

We sponsor a TFA teacher each year, and have fun doing a few little things for their classroom through the year (we collect school supplies at the beginning of the year, bring presents during the holidays).  Short of the school choice we really need, this is the best way we have found to help K-12 education.

Via the AZ Republic:

The pay gap between the richest 1 percent and the rest of America widened to a record last year.

...

Last year, the incomes of the top 1 percent rose 19.6 percent compared with a 1 percent increase for the remaining 99 percent.

...

But since the recession officially ended in June 2009, the top 1 percent have enjoyed the benefits of rising corporate profits and stock prices: 95 percent of the income gains reported since 2009 have gone to the top 1 percent.

That compares with a 45 percent share for the top 1 percent in the economic expansion of the 1990s and a 65 percent share from the expansion that followed the 2001 recession.

The Federal Reserve is pumping over a half trillion dollars of printed money into inflating a bubble in financial assets (stocks, bonds, real estate, etc).  It should be zero surprise that the rich, who disproportionately get their income and wealth from such financial assets, should benefit the most.   QE is the greatest bit of cronyism the government has yet to invent.

(yes, I understand that there are many reasons for this one-year result, including tax changes that encouraged income to be moved forward into last year and the fact it was a recovery off of a low base.  Never-the-less, despite decades of Progressive derision for "trickle down" economics, this Administration has pursue the theory that creating an asset bubble that makes the rich much richer will in the long term help the economy via the "wealth effect.")

... the first thing you think of with this video is the Wrath of Khan

That is according to our senior Arizona Republic columnist EJ Montini  (via Expresso Pundit)

The U.S. is big enough and strong enough to act on behalf of the innocent victims, including children, who were killed in Syria by the chemical weapons. But those who are against it say this is not our fight. That we shouldn’t go it alone. That the chemical attack wasn’t against Americans. That we can’t be sure what we’d be getting ourselves into. And that there is no clear objective, other than acting in response to an atrocity.

I understand the reasoning.

Given all that, however, I wonder why was so many Americans were furious with former Penn State assistant football coach Mike McQueary.

Remember him?

He was the guy who saw the now imprisoned former coach Jerry Sandusky raping a boy in a Penn State shower.

McQueary was vilified for not acting to stop the attack.

This is an absurd comparison for any number of reasons.  The most obvious is that no one would have been put in danger, and the financial costs were nil, for the Penn State coaches to stop Sandusky's abuse.  Further, Penn State officials had a clear legal obligation for the safety of folks on their property.  Finally, Penn State had the ability to easily stop and prevent the illegal activity.

None of these statements are true for Syria.  The costs in lives and property, both to ourselves and to the citizens of Syria, are potential enormous.  It's not clear it is the US's job to police the area, and in fact history has proven that unilaterally adopting the policeman role, even with the best of intentions, can hurt our country's reputation and relations in the long-term.  Finally, its not at all clear that we could stop Assad from doing whatever he wishes, short of sending in troops to remove him from power, and even then his replacement may likely be just as bad.  Oddly for a liberal in the foregin policy sphere, Montini seems to be making a form of the "might makes right" argument, that the US is obligated just because it is big and strong.

Tellingly, I don't see Montini advocating for use military force to help citizens in any other of the scores of countries where they are being mistreated.  It is more likely that what Montini is really concerned about is the loss of the prestige and credibility of Barack Obama.  A lot of blood has been spilled for thousands of years for the prestige of state leaders.  I for one am happy if this country is finally wising up to this game.

Last time we were in Italy, my wife and I vowed that we would try to learn some Italian before we return (she has some high school French and I have a fair amount of Spanish).   Well, we never did much about it.  I will confess that despite being often skeptical of the paradox of choice, it may actually explain my lack of action.  I could not make up my mind between the various courses.

Then along came my son, who has decided with his roommate that they want to do a semester abroad in Italy next year.  I am not sure why he chose Italy -- I can only assume it had something to do with my euphoric descriptions of finding myself in Milan on Vogue fashion night and being surrounded by Italian models.  You know that language course ad with the guy picking up the Italian course so he can have his one chance at the Italian supermodel?  It's a funny ad, but I fear it may actually hit kind of close to home in my household.

Anyway, my son pushed me over the top to buy a course.  The conflicting online reviews can leave your head spinning, but the general conclusions I came to were:

• Rosetta Stone is all marketing, but not the best course
• Pimsleur got the most positive ratings.

So I went with the Pimsleur course.  It is PC-based, which fits how my family works.  It allows four installations, so each family member got one.  And it allows its lessons to be downloaded to mp3 files so you can listen in the car or on your iPod (though you lose out on the other parts of the lesson which are non-audio).

So far, 20 days into the thing, I have been happy.  I have never thought of myself as good at languages but I have decided to trust the process.  So far, I feel like I am learning and retaining a lot.  My son reports that he thinks it is better than Rosetta Stone, which his roommate is using.

The weird part for me, who learned Spanish from a grammar nazi, is to work with verbs without first learning all the conjugation rules.   In fact, the course seems to work this way -- you learn examples and phrases first, then over time go back and learn the grammar behind what you are doing.  It seems to work, for a few reasons.  One is that a lot of the verbs you need early on to say basic things (is, go, like) have non-standard conjugations anyway, so memorizing them is what you would have had to do with any approach.  A second reason is that it is a hell of a lot more fun to say useful things than to spend what I remember to be years farting around with conjugation and use rules for the subjunctive.  After all, I am not trying to write an academic paper in Italian, I am trying to enjoy my tourist experience.  The third reason this is working for me is that I do remember a lot of my old Spanish verb conjugations, and it turns out Italian conjugates (at least in the present tense) very similarly to Spanish.

Postscript:  To the early joke about learning Italian to meet women, I will say we were all laughing through about the first 7 lessons of Pimsleur.  If you had designed a course solely to pick up people of the opposite sex, I am not sure one bit of the first few lessons would have been different.  Seriously, we were repeating phases like "do you want to have a drink at your place or mine?"

The New York Times has a long article on  Harvard Business School's effort to change its culture around women.  Given that both my wife and I attended, albeit 25 years ago, I have a few thoughts.

• I thought the article was remarkably fair given that it came from the NYT.  Men who are skeptical of the program actually are allowed to voice intelligent objections, rather than just be painted as Neanderthals
• I would have abhorred the forced gender indoctrination program, as much for being boring as for being tangential.  I am fortunate I grew up when I did, before such college group-think sessions were made a part of the process everywhere.  I would presume most of these young folks are now used to such sessions from their undergrad days.   I would not have a problem having an honest and nuanced discussion about these issues with smart people of different backgrounds, but I thought the young man they quoted in the article said it really well -- there is just no payoff to voicing a dissenting opinion in such sessions where it is clear there is a single right answer and huge social and even administrative penalties for saying the wrong thing.
• I went to HBS specifically because I loved the confrontational free-for-all of the classes.   It was tailor-made to my personality and frankly I have never been as successful at anything before or since as I was at HBS.   I say this only to make it clear that I have a bias in favor of the HBS teaching process.   I do think there is an issue that this process does not fit well with certain groups.  These folks who do not thrive in the process are not all women (foreign students can really struggle as well) but they are probably disproportionately women.  So I was happy to see that rather than dumb down the process, they are working to help women be more successful and confident in it.
• It is interesting to see that the school still struggles to get good women professors.  When I was there, the gap between the quality of men and women professors was staggering.  The men were often older guys who had been successful in the business and finance world and now were teaching.  The women were often young and just out of grad school.  The couple of women professors I had my first year were weak, probably the two weakest professors I had.  In one extreme case our female professor got so jumbled up in the numbers that the class demanded I go down and sort it out, which I finally did.  I thought it was fun at the time, but now I realize how humiliating it was.
• To some extent, the school described in the article seems a different place than when I was there.  They describe a school awash in alcohol and dominated by social concerns.  This may be a false impression -- newspapers have a history of exaggerating college bacchanalia.   At the time I was there, Harvard did not admit many students who did not have at least 2 years of work experience, such that the youngest students were 24 and many were in their 30's and 40's.  A number were married and some even had children.   To be there, they not only were paying a lot of money but they were quitting paying jobs.  The school was full of professionals who were there for a purpose.  I had heard that HBS had started to admit more students right out of college -- perhaps that is a mistake.
• The fear by the women running the school that women would show up on Halloween wearing "sexy pirate" costumes represents, in my mind, one of the more insidious aspects of this new feminist paternalism (maternalism?) aimed at fellow women.  Feminism used to be about empowering women to make whatever choices they want for their lives.   Now it is increasingly about requiring women to make only the feminist-approved choices.
• I actually wrote a novel where the protagonist was a confident successful female at HBS.   So I guess I was years ahead of the curve.

Postscript:  Below the fold is an excerpt from my novel.  In it, the protagonist Susan describes how an HBS class works and shares my advice for being successful at HBS.

Continue reading ‘Harvard Business School and Women’ »

We get literally (as they would say on the TV show Archer, literally literally and not figuratively literally) hundreds of paper bills to pay each month in our business.   We can barely keep up just with paying them all, much less vetting every one.  Which is what scam artist marketers count on when they craft fake bills they spam to businesses in hopes that some percentage, in their hustle and bustle, will pay the bills without knowing they are fraudulent.

These letters really, really tick me off.  They are sent by people who apparently cannot sell a product or service on its own merits and so must trick harried business people into accidentally sending them money.  I get these most frequently from companies that send me letters that look just like a government agency requiring yet another fee (the corporate minutes fraud).

So here is the most recent bill my accounts payable person questioned and put on my desk.   It is from a company called US Telecom, and despite the remission address on the letter it is apparently based in California.  You can click to enlarge the letter -- it is in very high resolution, which we will need to find the small print that they use to try to cover their butts.

Does this look like a regular bill to you for some service we have contracted for?  It did to me.  Note the "Due upon Receipt" at the top, the calculation below with previous balance and new balance and "pay this amount."  No reasonable person in this country would say it looks like anything but an invoice for service received.

But this is not a bill.  It is a solicitation for services.  If you send the money, then you are committed.  And by the way, per the terms below, once the agreement is in place, it cannot be terminated or amended (or likely refunded) without a signature from both parties, which means only if they approve it.  If they don't, congrats, you are stuck in this contract.  I have no idea if you actually paid, whether you would receive any services or not.  Since they priced this service without even knowing what assets I have that would be serviced (note no equipment or equipment location is listed in the bill, the first "tell" to me this was a fraud) I am not sure how they would ever provide any service.  (we were really saved by Quickbooks on this one, because my payables person flags any bill from a vendor not set up in our system).

They attempt to cover themselves, in the same way the corporate minutes scamsters do, with the small print in the last two lines at the bottom.   Can't read it?  LOL, I could not read it myself, even full size, without my glasses.  You can click through if you wish to see it on the high rez version.  But it says that it is not a bill, it is a solicitation, and that I am under no obligation to pay unless I accept the offer, which I do by paying.  But by the language, once paid, I have accepted the offer and cannot get out of it without a signature from an authorized officer of their company.  I bet that would be easy to get.

That last fine print may keep them out of jail or even let them sleep at night, but no legitimate business with a valuable product sells its services this way.

Update:  Apparently there is a legitimate US Telecom and they are understandably pissed.  They have set up a page on this billing fraud, and apparently the Attorneys General in a number of states are investigating.

Update #2:  Talk about waddling in late on a story!  These guys' registered corporate name is UST Development, run by a guy named David Bell.  Ken White of Popehat has been on these guys for years.  LOL, I even linked Ken's post a while back.  You sleazy folks out there can f*ck with me all you want but you do not want to mess with Ken White.

Update #3:  Good God, Ken did 14 posts on these guys.  Enjoy.