Does Anyone Have A Feeling For Numbers Anymore?

The Boston Globe, in its usual blundering math-challenged media way, blithely published an editorial the other day that included this hilarious "fact"

Since June, Israel has limited its exports to Gaza to nine basic
materials. Out of 9,000 commodities (including foodstuffs) that were
entering Gaza before the siege began two years ago, only 20 commodities
have been permitted entry since. Although Gaza daily requires 680,000
tons of flour to feed its population, Israel had cut this to 90 tons
per day by November 2007, a reduction of 99 percent. Not surprisingly,
there has been a sharp increase in the prices of foodstuffs.

OK, the Gaza has over a million residents, but do these 1.4 million people really require 1.36 million pounds of flour a day??  I find that hard to believe, and amazing that no editor even asked the question, much less checked.

Update:  Did a search.  Found this.  The Palestinian ministry puts consumption around 350 tons per day.  That makes a bit more sense.  Congratulations on missing the number by over 3 orders of magnitude.  You can bet they are doing a lot of quality fact-checking on those global warming estimates too.

Update 2: I agree with the commenter that the number they should have used was something like 680,000 pounds rather than tons.  I would have written it off as a typo, transposing tons for pounds, but the math was based on it being tons, not pounds, so it is not just a typo issue.

Feed Your Gambling Habit

I am all for full legalization of gambling, but, at the risk of preaching at you, if you are betting one of the following Superbowl prop bets with any kind of cash, you might have a gambling problem.  Here are several examples from Sports Book Review:

What song will Tom Petty open with?
Petty is this year's halftime entertainment in
Glendale; FOX advertised this fact during previous NFL games using
"Runnin' Down a Dream" off the 1989 album Full Moon Fever. That's a
strong indicator the song will at least be part of what will be a short
set, although a medley like the one Prince performed last year is
certainly possible.

"Runnin' Down a Dream" is the favorite at +110, followed by the 1977 classic "American Girl" at +175.

Color of liquid winning head coach is doused in?
Football lore has it that Bill Parcells got the first Gatorade shower
in 1985, courtesy of Jim Burt and Harry Carson, when the Giants beat
the Washington Redskins
17-3 during a midseason game. The Gatorade was orange (+200), as it was
when Parcells took a bath after winning Super Bowl XXI. But Bill
Belichick was doused in a clear liquid (+300) after winning Super Bowl
XXXIX over the Eagles.

Halftime commercial to have highest rating
Budweiser is the big favorite at "“180, followed by godaddy.com at +275.
Last year's winner was a commercial by Hewlett-Packard; the Bud Light
ads didn't even crack the Top 3. So Anheuser-Busch has reportedly taken
out nine (!) Super Bowl ads this year; Bud should be the value pick
here by sheer volume alone.

Length of National Anthem
American Idol winner Jordin Sparks will sing the
Star-Spangled Banner at Super Bowl XLII, presumably because FOX is the
television host for both programs. The over/under for this prop is
103.5 seconds. Sparks took about 102 seconds to complete the anthem at
Game 1 of the 2007 NBA Finals between the San Antonio Spurs and the Cleveland Cavaliers.

Here are a few others I found at this site, with all the prop bets you could ever wish for:

2008 Super Bowl XLII Props - First offensive lineman called for a holding penalty.
Chris Snee (NYG)
David Diehl (NYG)
Grey Ruegamer (NYG)
Kareem McKenzie (NYG)
Shaun O'Hara (NYG)
Dan Koppen (NE)
Logan Mankins (NE)
Matt Light (NE)
Nick Kaczur (NE)
Rich Seubert (NE)
Stephen Neal (NE)
Field (Any Other Player)
Who will the MVP of the Game thank first?
Teammates
God
Family
Coach
Doesn't thank anyone

We must be a secular society - God's fallen to third.  I always wanted to see someone from the losing side get interviewed right after the winner thanked God for their win.  Wouldn't you just love the losing player to say "Well, you heard it.  God was against us.  What chance did we have?"

An Environmental Plea

If the word "environmentalist" wasn't so corrupted, I would consider myself to be one.  For years, the main charity I have supported with my money and my advocacy has been private land trusts like The Nature Conservancy.  Just because I don't think that governments should quash individual rights to force people not to develop their own land does not mean that I don't think certain pieces of land are worth protecting from development.  But I do it the old-fashioned way -- I and others spend money to buy that land.  Here is more on why I (mostly) like  groups like the Nature Conservancy and here is a post wherein I lament the shift in charity from spending your money to achieve goals to spending money to lobby the government to force other people to achieve your goals.

Of course, my claim to be an environmentalist just because I, you know, spend my money and time on private conservation efforts would be laughed off because I take the wrong stand on certain litmus test environmental issues (e.g. global warming, of course).  In this world, someone who buys a silly and environmentally worthless $19.99 carbon offset has more environmental street-cred than I do.

So I guess it is nice, at least for once, to be in agreement with those "real" environmentalists:

The government's bid to make fuel consumption more environmentally
friendly will involve petrol and diesel being mandatory blended with
2.5pc biofuel from this April and the country's leading supermarket
chain is aiming to use twice this amount at over 300 of its petrol
stations.

But campaigners believe this is not the green alternative people think they are getting.

Jenn
Parkhouse from Norwich Friends of the Earth said: "From April, people
will have no choice but to contribute to the destruction of forests,
the eviction of small farmers and rising food prices which will mean
more hunger.

"More and more people now realise the need for a
strong movement to stop the destruction caused by the biofuel industry
and the legislation which encourages it."

Trojan Horse for Totalitarianism

Over at Maggies Farm, The News Junkie discusses a topic close to my heart, how feel good government programs like health care and education become Trojan horses for fascism. 

When Government Intervenes in Bargaining

A lot of conservatives have an incredible loathing for unions.  Which is one of the reasons why I differ from them as a libertarian.  In a free society, any group of people, including workers at a company, should be able to associate to achieve certain goals, including to increase their bargaining power in wage negotiations.  As I said here:

If a group of even two people want to get together at GM and call
themselves a "union" and approach management to negotiate, they should
be able to have at it.  In a free society, this is how things should work -- any
number of employees should be able to organize themselves.  If they get
enough people, then they will have enough clout, perhaps, to be
listened to by management.

Here is where the problem comes in, though.  Over history, governments have intervened to increase the power of unions vs. the companies they work for.  Some of the early legislation was fine from an individual rights perspective - e.g. "companies can't hire thugs to beat the crap out of workers to get them to come back to work."  However, over time, the government has passed laws to increase the bargaining power of unions artificially and to increase their power in general (e.g. to violate workers association rights by forcing them to join a pre-existing union or to at least pay union dues as a pre-condition to work in certain companies or industries).  In some states we have come nearly full cirle, to the point that it is almost impossible to prevent unions from using violence in strikes, for example against people crossing picket lines.

So when I see studies like this one, I don't see it as an indictment of unions per se, since unions exist in "right to work" states, but rather an indictment of government intervention trying to ham-handedly balance bargaining.  Here is the interesting chart, from a study by Arthur Laffer:

Righttoworkstates

Michigan in particular has made itself downright hostile to employers.  Given that the official government position is that "we aim to tilt the bargaining power against you in your negotiations with your largest suppliers," it is a wonder any business locates there.

Aren't These the Same?

I saw these two posts one after the other on Q&O.  One is about Chavez's food regulations in Venezuela, the other is about a government health care plan in California.  One is about government takeover of a critical industry, price controls, supply rationing, and demonizing large private corporations, and the other is about the same thing, but in Venezuela.  Since Chavez is further along with his program, we might see how things are working out for him:

Venezuela's top food company has accused troops of illegally seizing
more than 500 tonnes of food from its trucks as part of President Hugo
Chavez's campaign to stem shortages.

The leftist Chavez this
week created a state food distributor and loosened some price controls,
seeking to end months of shortages for staples like milk and eggs that
have caused long lines and upset his supporters in the OPEC nation.

The
highly publicised campaign has also included government crackdowns on
accused smuggling, with the military seizing 1,600 tonnes of food and
sending 1,200 troops to the border with Colombia....

He also threatened to expropriate companies selling food above regulated prices.

"Anyone
who is distributing food ... and is speculating, we must intervene and
we must expropriate (the business) and put it in the hands of the state
and the communities," Chavez said during the inauguration of a new
state-run market in Caracas.

Yep, sounds about the same.  Fortunately, people in the West can still travel across borders to get health care when government rationed and price-controlled services are not available, as many Canadians and British do. So in the US, when we implement all these same steps, we'll be able to travel to..., travel to...  Where will we be able to go?

I Love Maps

I have always loved maps.  As a kid, I could spend hours looking through an Atlas.  And, even better, my dad had this huge book in his office that had a collection of US maps by county, showing all kinds of crazy demographic and economic information.  I loved that book.   Since then, I have never found it on sale any where, but this map is a good example of the kind of thing it used to include.  Via strange maps, it is a map of leading religions by county.  The map also has a clever way of showing where the plurality is a majority. 

Churchbodies

New Grisham Novel

I have not been able to read a Grisham lawyer novel since "the Runaway Jury,"  which was an absolutely amazing ode to the joys of jury tampering.  Seldom does one see an author treat so many abuses of due process and individual rights so lovingly, all because it is OK to take away a defendant's right to a fair trial as long as the defendant is an out-of-favor corporation.  (On the other hand, Grisham's "the Painted House," about growing up on a small cotton farm in the south, is wonderful).

Grisham's biases in the Runaway Jury become clearer to me now that I now he pals with Dickie Scruggs, notorious Mississippi tort lawyer who is soon to be sharing a cell next to Jeff Skilling, that is unless they can delay his investigation until Jon Edwards is attorney general.

Anyway, it seems Grisham may be up for the bad timing award:

With what might seem like startlingly bad timing, Scruggs chum/novelist (and campaign donation co-bundler,
if that's the right term) John Grisham is just out with a new fiction
entitled The Appeal, whose thesis, to judge by Janet Maslin's oddly favorable review in the Times,
is that the real problem with the Mississippi judicial system is that
salt-of-the-earth plaintiff's lawyers are hopelessly outgunned in the
task of trying to get friendly figures elected to judgeships to sustain
the large jury verdicts they win. One wonders whether any of Maslin's
editors warned her about recent news events -- she doesn't seem aware
of them -- that suggest that the direst immediate problems of the
Mississippi judiciary might not relate to populist plaintiff's lawyers'
being unfairly shut out of influence. Of course it's possible she's not
accurately conveying the moral of Grisham's book, and if so I'm not
likely to be the first to find out about it, since I've never succeeded
in reading more than a few pages of that popular author's work. By the
way, if you're wondering which character in the novel Grisham presents
as the "hothead with a massive ego who hated to lose," yep, it's the
out-of-state defendant.

If you would prefer a novel that make villains of tort lawyers and treats Mississippi as a trial-lawyer run legal hellhole, my novel BMOC is still on sale (and actually selling pretty steadily) at Amazon.

The UN Joke Just Continues

The UN remains a caricature of itself.  I hadn't known this, but am not surprised:

In the 17 months since [the UN Human Rights Council's] inception, the body has passed 13 condemnations, 12 of them against Israel.

LOL.  I'm not a huge Israel fan (its socialist to a stupid degree and maintains what are effectively two-tiers of individual rights, for its Jewish and Arab residents) but this is absurd.  Apparently the Council has the same problems as the human rights commission it replaced:

The problems begin with the council's composition. Only 25 of its 47
members are classified as "free democracies," according to Freedom
House's ranking of civil liberties. Nine are classified as "not free."
Four -- China, Cuba, Russia and Saudi Arabia -- are ranked as the
"worst of the worst." These nations are responsible for repeated
violations of the U.N.'s own Universal Declaration of Human Rights. Yet
it is they who dominate the council, leading a powerful bloc of
predominantly Arab and African nations that consistently vote as a unit.

Its predecessor human rights commission played a central role in my guide to "how to spot a dictatorship."

Update: More here

Thanks, Trial Lawyers

Because of the all-to-prevalent theory (which may become even more common if Jon Edwards becomes our next AG) that every accident must be the fault of the nearest person with deep pockets, I wasted an hour today.

I visited the NFL experience today with my son.  The NFLX is a kind of football-themed fair or amusement park that the NFL sets up near the site of each Superbowl  (HA HA NFL -- I said it.  I said "Superbowl" and not "the big game."  Come and get me).  After waiting in a reasonable line to enter, we found that to play the games (e.g. throw the football through a hoop) every participant (read 10,000+ people) had to individually fill out and sign a liability waiver and get a wristband attesting to the fact.  There were about 16 clerks at work, but it still was about an hour-long wait. 

It struck me that the NFL could have come up with a much better process.  Why not have people with Internet access (about everyone, since almost 98% seemed to be there with tickets they bought on the internet) print out the waiver and bring it with them already filled out?  The manager on-site claimed that Arizona state law and the Arizona AG required that the process proceed the way it did.  I give that explanation about a 50-50 between being correct and just covering their butt for something stupid.

Anyway, once signed, we had a good time at the event, and it was well worth the effort.

Save It

The Arizona Republic this morning had some goofy headline in their print edition that said something like "How should you spend your $800 tax rebate?"  Far be it for me to presume to tell people how to spend their own money (what do I look like, a Congressman?) but here is a bit of advice:  Save it.  Because this is not a grant, it is a loan.

All of these rebates will be paid for with additional deficit spending.  This means that everyone will eventually pay for their rebate in the form of a) higher future taxes; b) higher future prices due to inflation; or c) increased job insecurity and/or lower future earnings due to reduced output in the economy; or d) all of the above.

It HAS to be this way.  Unlike private wealth creation, the government can't get wealth from nowhere.

Licensing Everything

In case you thought the government was sane.  By a strict reading of the law, a license would be required to put a smoke detector in your own house.

Looming Problems at Fannie Mae

Maxed Out Mamma tells us that Fannie Mae may already have huge subprime exposure (emphasis added):

Maybe most voters believe
that FNMA and FHA are just in the conservative loan business.
HAHAHAHAHAHAHAHA. Certainly no "trained journalist" is going to ask any
questions about this topic.

Both Fannie and FHA will go to DTIs of over 60% in some cases. Especially refis. Try this thread on FHA.
If only I had saved down the 100 odd links or so I've run into over the
last year about how brokers were getting loans that the subprime
companies refused (who have since defaulted) through under FNMA!!! The
reason they did it as a last resort was only because FNMA paid less for
the loan. FNMA is already going to run into huge problems because of
the slopover into their portfolio in the interim between most of the
subprime lenders going down and FNMA's meaningful tightening of lending
standards. So FNMA already faces years of worsening financial trouble
without any new risks. Why does OFHEO oppose this? Hmmmm?

You can get information on Fannie's loan types at efanniemae.com. Believe me, they do high LTV, hybrids, 40 year etc. This page will show you information about Fannie's ARM products. Take a look. Take a good look. You want a 100% interest-only? They got it!! In fact, they'll take downpayment assistance, and go up to 105% with special programs. Chortle! Ya want interest-only ARM hybrids with DAP? Sure. BRING IT ON, cries Fannie. Simultaneous seconds? Sure 'nuff!!! (By the way, this is the escape from the refusal of the MI companies to play.)

The
bottom line is that every risk afflicting Alt-A lenders in high-cost
areas can afflict Fannie and really has. It's just that no one is
paying attention.

Prosecutorial Abuse

Tom Kirkendall has stayed on the case of Enron Task Force prosecutorial abuse even while most of the world has turned away, apparently believing that "mission accomplished"  (ie putting Skilling in jail) justifies about any set of shady tactics.

But the evidence continues to grow that Skilling did not get a fair trial.  We know that the task force bent over backwards to pressure exculpatory witnesses from testifying for Skilling, but now we find that prosecutors may have hidden a lot of exculpatory evidence from the defense.

Meanwhile, continuing to fly under the mainstream media's radar
screen is the growing scandal relating to the Department of Justice's
failure to turnover potentially exculpatory evidence to the defense
teams in two major Enron-related criminal prosecutions (see previous
posts here and here). The DOJ has a long legacy of misconduct in the Enron-related criminal cases that is mirrored by the mainstream media's myopia in ignoring it (see here, here, here, here and here).

This motion
filed recently in the Enron-related Nigerian Barge criminal case
describes the DOJ's non-disclosure of hundreds of pages of notes of FBI
and DOJ interviews of Andrew Fastow, the former Enron CFO who was a key prosecution witness in the Lay-Skilling trial and a key figure in the Nigerian Barge trial.

Enron Task Force prosecutors withheld the notes of the Fastow
interviews from the defense teams prior to the trials in the
Lay-Skilling and Nigerian Barge cases. If the Fastow notes turn out to
reflect that prosecutors withheld exculpatory evidence or induced
Fastow to change his story over time, then that would be strong grounds
for reversal of Skilling's conviction and dismissal of the remaining
charges against the Merrill Lynch bankers in the Nigerian Barge case.

The post goes on to describe pretty substantial violations of FBI rules in handling interviews with Fastow, including destruction of some of the Form 302's summarizing early interviews.  The defense hypothesis is that Fastow changed his story over time, particularly vis a vis Skilling's involvement, under pressure from the task force and the 302's were destroyed and modified to hide this fact from the defense, and ultimately the jury.

Long Time in Coming

Just about everything in the PC architecture has been upgraded -- much better microprocessors, more elaborate OS's, more memory, a much higher bandwidth bus architecture, etc.  However, one bit of 1980's era design still sits at the heart of the computer - the BIOS.  Sure, manufacturers have agreed to some extensions (particularly plug and play) and motherboard makers add in extensions of their own (e.g. for overclocking) but the basic BIOS architecture and functionality, which sits underneath the OS and gets things started when you flip the "on" switch, is basically unchanged. 

A few years ago, Intel proposed a replacement, but ironically only Apple has picked up on the BIOS replacement called EFI.  Now, it appears, at least one leading motherboard manufacturer for PC's is putting a toe in the water:

The specification allows for a considerable change in what can be implemented
at this very low level.

EFI is a specification that defines a software interface between an operating
system and platform firmware. EFI is intended as a significantly improved
replacement of the old legacy BIOS firmware interface used by modern PCs....

Graphical menus, standard mouse point-and-click operations,
pre-operating-system application support such as web browsers, mail applications
and media players, will all feature heavily within EFI.

The Critical Flaw with Catastrophic Global Warming Theory

I began with an 85-page book.  I shortened that to a 50-minute film, and then a 9-minute film.  With that experience, I think I can now pull out and summarize in just a few paragraphs why we should not fear catastrophic global warming.  Here goes:

Climate catastrophists often argue that global warming theory is "settled science."  And they are right in one respect:  We have a pretty good understanding of how CO2 can act as a greenhouse gas and cause the earth to warm.  What is well agreed upon, but is not well communicated in the media, is that a doubling of CO2, without other effects that we will discuss in a moment, will heat the earth about 1 degree Celsius (plus or minus a few tenths).  This is not some skeptic's hallucination -- this is straight out of the IPCC third and fourth assessments.  CO2, acting alone, warms the Earth only slowly, and at this rate we would see less than a degree of warming over the next century, more of a nuisance than a catastrophe.

But some scientists do come up with catastrophic warming forecasts.  They do so by assuming that our Earth's climate is dominated by positive feedbacks that multiply the initial warming from CO2 by a factor of three, four, five or more.  This is a key point -- the catastrophe does not come from the science of greenhouse gases, but from separate hypotheses that the earth's climate is dominated by positive feedback.  This is why saying that greenhouse gas theory is "settled" is irrelevant to the
argument about catastrophic forecasts.  Because these positive feedbacks are NOT settled science.  In fact, the IPCC admits it does not even know the sign of the most important effect (water vapor), much less its magnitude.  They assume that the net effect is positive, but they are on very shaky ground doing so, particularly since having long-term stable systems like climate dominated by positive feedback is a highly improbable.

And, in fact, with the 100 or so years of measurements we have for temperature and CO2, empirical evidence does not support these high positive feedbacks.  Even if we assign all the 20th century warming to CO2, which is unlikely, our current warming rates imply close to zero feedback.  If there are other causes for measured 20th century warming other than CO2, thereby reducing the warming we blame on CO2, then the last century's experience implies negative rather than positive feedback in the system.  As a result, it should not be surprising that high feedback-driven forecasts from the 1990 IPCC reports have proven to be way too high vs. actual experience (something the IPCC has since admitted).

However, climate scientists are unwilling to back down from the thin branch they have crawled out on.  Rather than reduce their feedback assumptions to non-catastrophic levels, they currently hypothesize a second man-made cooling effect that is masking all this feedback-driven warming.  They claim now that man-made sulfate aerosols and black carbon are cooling the earth, and when some day these pollutants are reduced, we will see huge catch-up warming.  If anything, this cooling effect is even less understood than feedback.  What we do know is that, unlike CO2, the effects of these aerosols are short-lived and therefore localized, making it unlikely they are providing sufficient masking to make catastrophic forecasts viable.  I go into several reality checks in my videos, but here is a quick one:  Nearly all the man-made cooling aerosols are in the northern hemisphere, meaning that most all the cooling effect should be there -- but the northern hemisphere has actually exhibited most of the world's warming over the past 30 years, while the south has hardly warmed at all.

In sum, to believe catastrophic warming forecasts, one has to believe both of the following:

  1. The climate is dominated by strong positive feedback, despite our experience with other stable systems that says this is unlikely and despite our measurements over the last 100 years that have seen no such feedback levels.
  2. Substantial warming, of 1C or more, is being masked by aerosols, despite the fact that aerosols really only have strong presence over 5-10% of the globe and despite the fact that the cooler part of the world has been the one without the aerosols.

Here's what this means:  Man will cause, at most, about a degree of warming over the next century.  Most of this warming will be concentrated in raising minimum temperatures at night rather than maximum daytime temperatures  (this is why, despite some measured average warming, the US has not seen an increase of late in maximum temperature records set).  There are many reasons to believe that man's actual effect will be less than 1 degree, and that whatever effect we do have will be lost in the natural cyclical variations the climate experiences, but we are only just now starting to understand.

To keep this relatively short, I have left out all the numbers and such.  To see the graphs and numbers and sources, check out my new climate video, or my longer original video, or download my book for free.

UPDATE: Based on a lot of comment activity to this post at its mirror at Climate Skeptic,
I wanted to add a bit of an update.  It is sometimes hard to summarize
without losing important detail, and I think I had that happen here.

Commenters are correct that positive feedback dominated systems can
be stable as long as the feedback percentage is less than 100%.  By
trying to get too compact in my arguments, I combined a couple of
things.  First, there are many catastrophists that argue that climate
IS in fact dominated by feedback over 100% -- anyone who talks of
"tipping points" is effectively saying this.  The argument about
instability making stable processes impossible certainly applies to
these folks' logic.  Further, even positive feedback <100% makes a
system highly subject to dramatic variations.  But Mann et. al. are
already on the record saying that without man, global temperatures are
unbelievably stable and move in extremely narrow ranges.   It is hard
to imagine this to be true in a climate system dominated by positive
feedback, particularly when it is beset all the time with dramatic
perturbations, from volcanoes to the Maunder Minimum.

To some extent, climate catastrophists are in a bind.  If historic
temperatures show a lot of variance, then a strong argument can be made
that a large portion of 20th century warming is natural occilation.  If
historic temperatures move only in narrow ranges, they have a very
difficult time justifying that the climate is dominated by positive
feedbacks of 60-80%.

The point to remember, though, is that irregardless of likelihood,
the historical temperature record simply does not support assumptions
of feedback much larger than zero.  Yes, time delays and lags make a
small difference, but all one has to do is compare current temperatures
to CO2 levels 12-15 years ago to account for this lag and one still
gets absolutely no empirical support for large positive feedbacks.

Remember this when someone says that greenhouse gas theory is
"Settled."  It may or may not be, but the catastrophe does not come
directly from greenhouse gasses.  Alone, they cause at most nuisance
warming.  The catastrophe comes from substantial positive feedback (it
takes 60-80% levels to get climate sensitivities of 3-5C) which is far
from settled science.

I Want None of This

Apparently, some conservatives are trying to fuse social conservatism with economic populism. With a bit of hawkish international projection of power thrown in.  Barf.  The only possible good outcome of this is that maybe it might lead to a redrawing of political lines between such big government folks and libertarians, but I am not that hopeful.  Does anyone really doubt that we are heading back to the bad old days of the 1970s?

Why These Particular People?

People have been defaulting on mortgages for all of recorded history.  In Roman times, such a default could well result in the mortgage-holder getting sold into slavery, so things have improved a bit.  But seriously, people default on their mortgages all the time.  So what makes those currently in default more deserving of taxpayer aid than those before them or after them?  I mean, other than the fact that the press is paying attention to these particular defaults?  A similar question was reasonably asked of 9/11 victims who scored government compensation when victims before or after of other transportation accidents and building fires have not been so rewarded.

I challenge any politician to answer this question with an answer other than "well, these people are in the media spotlight right now and as a politician, I want to be in the spotlight with them."

Update: More analysis here, including the bright side of the burst housing bubble:

Countrywide wants to be
able to take its loans that the market won't accept and refi them under
FHA or FNMA. That's what this is all about. Don't forget that.

It's
not about homeownership. Let's look at the latest 25th percentile
(starter homes) list prices for a range of CA cities, compared to the
price in January 2007:

LA: $365,000/ $429,920
OC: $414,900/ $499,000
Riverside: $259,900/ $335,000
Sacramento: $229,900/ $316,477
San Diego: $325,000/ $392,279
San Francisco: $380,000/ $468,376
San Jose: $489,950/ $580,589
Santa Cruz: $489,000/ $577,400

What
you see above is great news for all the people who would like to buy
homes without going bankrupt a few years down the line. It's VERY bad
news for banks and financial companies that made the original bad loans
without bothering to check whether the borrowers could pay the danged
loan. You figure out who this country should reward - responsible
aspiring home owners or stupid banks.

Video Update

Many of the feed readers out there grabbed my feed before I had fixed the video links in my post on my new climate video.  The links are fixed in the original post, but if those fixes are not reflected in your feed, the correct links are below.  Right click on the links to save:

Sorry about that.

New Climate Short: Don't Panic -- Flaws in Catastrophic Global Warming Forecasts

After releasing my first climate video, which ran over 50 minutes, I had a lot of feedback that I should aim for shorter, more focused videos.  This is my first such effort, setting for myself the artificial limit of 10 minutes, which is the YouTube limit on video length.

While the science of how CO2 and other greenhouse gases cause
warming is fairly well understood, this core process only results in
limited, nuisance levels of global warming. Catastrophic warming
forecasts depend on added elements, particularly the assumption that
the climate is dominated by strong positive feedbacks, where the
science is MUCH weaker. This video explores these issues and explains
why most catastrophic warming forecasts are probably greatly
exaggerated.

You can also access the YouTube video here, or you can access the same version on Google video here.

If you have the bandwidth, you can download a much higher quality version by right-clicking either of the links below:

I am not sure why the quicktime version is so porky.  In addition, the sound is not great in the quicktime version, so use the windows media wmv files if you can.  I will try to reprocess it tonight.  All of these files for download are much more readable than the YouTube version (memo to self:  use larger font next time!)

This is a companion video to the longer and more
comprehensive climate skeptic video "What is Normal -- a Critique of
Catastrophic Man-Made Global Warming Theory
."

Minimum Wages and the Supply and Demand for Labor

In a post that is a nice follow-on to this one about wages in trucking, Russel Roberts has a nice post about people making minimum wage:

According to Current Population Survey estimates for 2006, 76.5
million American workers were paid at hourly rates, representing 59.7
percent of all wage and salary workers.1
Of those paid by the hour, 409,000 were reported as earning exactly
$5.15, the prevailing Federal minimum wage. Another 1.3 million were
reported as earning wages below the minimum.2
Together, these 1.7 million workers with wages at or below the minimum
made up 2.2 percent of all hourly-paid workers.

Correcting for higher state minimum wages, but also adjusting for illegal immigrants (who are a special case with super-low bargaining power) and factoring in salaried workers (who by law to be salaried have to be making much more than minimum wage) one still finds that less than 2% or less make minimum wage, about half of whom are under 25.  Roberts has a follow-on post with comments from Tim Worstall to say that even this number may be too high:

Unfortunately, on the page he's taken his information from he's missed one thing which makes his case even stronger.

Nearly three in four workers earning $5.15 or less in 2006 were
employed in service occupations, mostly in food preparation and service
jobs.

That's your waitron units and barkeeps folks. And what do we know
about people who do these sorts of jobs? Well, perhaps you have to have
actually done them (as I have, everything from the graveyard shift in a
Denny's to tending bar around the corner from this guy's
place): they all make tips. In fact, so much so that there is (or at
least used to be when that BLS report was prepared) a special minimum
wage for those in such jobs, one lower than the official Federal
minimum wage.

For example, way back when, the min. wage was $3.35 an hour. Waiters
got $2.01. You didn't really care because even serving pancakes at 5 am
you made another $25-$30 a shift ($50-$150 in a decent place). Barkeeps
got $3.35 plus tips.

The BLS numbers are reporting what employers paid employees, not
what people are actually earning. So we might in fact say that while
the number being paid the minimum wage or less is 2.2% of the workforce, the number actually earning that figure is more like 0.5%.

As an aside, speaking of bargaining power, it strikes me that prostitution is an excellent example of supply and demand in labor markets trumping government mandates.  Prostitutes have absolutely no power to run to the government for help over minimum wage or work condition violations.  They have only limited power to get government help even when they are the victim of violence from those who pay them.  But on an hourly basis, the most succesful make far more than most Americans.

There's No Shortage, Just A Price You Don't Like

In the absence of government meddling (e.g. price controls) healthy markets seldom create true shortages, meaning situations where one simply cannot obtain a product or service.  One might think there was a shortage, for example, of Superbowl tickets, since there are only a few available and tens of thousands, maybe hundreds of thousands, of people who would like to attend.  But in fact one can Google "Superbowl tickets" and find hundreds available.  You may not like the price ($3500 and up for one ticket), but they are available for sale.

Yesterday, the AZ Republic lamented that there is a shortage of truck drivers nationwide:

Trucking companies across the country are facing a shortage of long-haul drivers....

High driver turnover has traditionally been a problem throughout the
trucking industry. But retirements and growing shipping demand have
made the shortage of long-haul drivers more acute. Fewer drivers means
delayed deliveries and higher delivery costs that could be passed on to
consumers. The
issue is especially crucial for the Phoenix area, which touts itself as
a shipping hub for businesses fed up with the costs and congestion
around Los Angeles-area ports. The Valley also is headquarters to two
of the country's biggest for-hire trucking companies: Swift
Transportation and Knight Transportation....

Trucking experts say the problem goes beyond a labor shortage in the industry. They call it a threat to the economy.

"Our country needs to figure out how to fix this," said Ray Kuntz,
chairman and chief executive of Watkins and Shepard Trucking in Montana
and chairman of American Trucking Associations. "Our economy moves on
trucks."

Here is the key fact:

"¢ Long-haul wages vary by company and are typically based on
experience, safety record and commercial-driver's-license endorsements.
Long-haul drivers with two or more years of experience usually earn at
least $50,000 to $60,000 a year.

"¢ An entry-level driver with no over-the-road experience starts in the high $30,000 range. Team drivers can earn more.

There is no way in a Platonic vacuum to determine if a wage is too high or too low.  But the driver "shortage" gives us a really good hint that maybe these salary levels are no longer sufficient to attract people to the rather unique trucking lifestyle.  I probably could write a similar article about how there is a shortage of Fortune 500 CEO's or airline pilots who will accept a $30,000 starting salary.  The problem then is not shortage, the problem is that wage demands are rising as trucking is out-competed for talent by alternative careers.   In fact, there is not shortage, but a reluctance by trucking firms to accept a new pricing reality in the market for drivers.

By the way, to some extent this "shortage" is indeed an artificial creation of the government.  Under NAFTA, Mexican truckers were long-ago supposed to have been given access to the US market, but overblown safety concerns have been used as a fig-leaf to block the provision as a protection for US truckers and a subsidy to the Teamsters.  If a truck driver "shortage" is really a national economic problem, then let's stop blocking this NAFTA provision.  But my sense is that the trucking companies in this article would freak at this, because they are not really concerned about the national economy but, reasonably, with rising wages hurting their bottom line.  My guess is this article is the front-end of a PR push to get states like Arizona to subsidize ... something.  Maybe truck driver training.  Look for such legislative proposals soon.

 

The Income-Shift Is Reversed

Typically, wealthy individuals and investors will work hard to delay declaration of income and to push taxes off as far into the future as possible.  The present value of taxes paid a year from now are less than paying the taxes today.

But over the last several weeks, I have had casual conversations with entrepreneurs and individuals from the moderately to very wealthy, and almost to a one they have said they are trying to pull income into 2007 and 2008 in anticipation of potentially large increases in capital gains tax rates and the rates at the top of the bracket.

On a different topic, a friend and I depressed ourselves in a bar last night laying out the case that the next decade may in many ways be a repeat of the 1970s.  Already, we see both parties reverting to the economic prescriptions they promoted in the 1970s.  Further, this week may herald the beginning of an inflationary monetary and fiscal policy combined with government enforced structural limits on growth (e.g. Co2 abatement policy, trade protectionism, price controls, high marginal tax rates and capital gains tax rates, lending restrictions, etc.)  We are seriously discussing nationalizing a major industry (health care) for the first time since the 1970's (when nationalizing oil was seriously considered).  Currently we have a Republican President who is less market-oriented than his Democratic predecessor, and at least as clueless on economic issues as were Nixon and Ford.  All that's left to do is elect a new Jimmy Carter in 2008...

Dilemma that's Not Really a Dilemma

When businesses get US Census surveys, they are not the happy smiling documents one gets as an individual.  Stamped all over it is "Your Response Is Required By Law" and when filling it out, one has the suspicion that he is facilitating his own doom by providing government weenies the data ammunition they need to tax or regulate us more. 

The survey asks for total revenues and costs and payrolls cut a bunch of different ways, and takes about 1-2 hours to fill out if one is trying to be accurate.  However, I looked at the survey closer this year and  I noticed that this seven-page survey is for an individual business location

I have nearly 200 campgrounds and other recreational sites.  One of the tricks of our business is we have learned to operate a lot of small dispersed sites in a cost-effective manner.  But now it turns out that to be strictly compliant with the census process, I need to fill out all of this information for each of these sites.  In other words, rather than spend 1-2 hours (the feds say it should take an hour) on one summary report, in fact what I am technically legally supposed to do is fill out two hundred such reports, at a cost of at least 200 hours of my time.  That is 10% of a standard man-year.

So -- do I do it the "right" at the cost of 200 hours of my time or do I do it the way I did it last year?  I won't give my actual answer, which I think the post title telegraphs fairly well, but you can think about yours  (yes, Travis, I know, more rope).

Beware of U3 on Your Flash Drive

Without really knowing what I was doing, I bought a Sandisk flash drive with "U3" on it.  This is an application that when you plug the flash drive into your computer, spoofs the computer into thinking it is a CD-ROM drive, so programs can be run from it.  I presume this might be useful if you compute from a lot of public computers and want to carry your own email client around, but for me, this was useless functionality. 

All that U3 did for me was radically slow down the process of plugging my flash drive into the computer and getting my damn files on and off.  There is sort of a boot up process, and on several occasions it crashed my whole system, despite trying to update the software to the most recent version.  Unfortunately, the built in uninstaller does not work, so, like spyware, the U3 has become impossible to remove.  Despite paying $50 for this thing, I am seriously considering throwing it in the trash and getting a new one without U3 on it.

Update: Downloading this finally got rid of it.  Again, this might be a cool tool for folks who use public computers or other people's computers a lot.  However, if you don't need this functionality, and just want to move files around, you will not want the instability and incompatibility problems U3 brings.