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Posts tagged as Finance

And Remember to Tip Your Waiters Real Good Tonight, Wall Street

Are you enjoying Bonus Day? (It's every New Yorker's favorite holiday, in this long stretch between Christmas and Passover.) The verdicts have been rolling in all day, as they are also rolling across the world between now and the end of the month. It's a funny thing! Remember how we used to hear about "talent retention"? That big compensation was mandatory to keep great talent at a firm (that was performing quite poorly)? That was already rich coming from a small industry that ditched of tens of thousands of staff, but it seems extra-hilarious now in the season of the wee bonus. READ MORE

The Best Thing For American Rock 'N' Roll

"A weak dollar is the best thing for American rock 'n' roll." READ MORE

Wine Will Soothe The Pain

An upside to the potential collapse of the single European currency: cheaper wine! The downside is a worldwide financial crisis, but it probably won't hurt so much if you're drunk on a fine, newly-affordable Italian red. [Via]

Your Depressing Read For The Day

Here's John Lanchester reviewing the new Michael Lewis collection. As is always the case with Lanchester's writing about the financial crisis (and usually with Lewis as well), you will find yourself quite entertained throughout, and then you will finish it and think, oh God, we're SO SCREWED.

Will We Learn The Lessons Of The Current Crash?

I would like to think that if we make it through the persistent financial troubles of our age and eventually return to some semblance of economic prosperity, the inevitable crash that follows on a few years after will be met with the knowledge that austerity is not a solution to recession, because we have run that experiment this time around it is impossible to argue otherwise, but I know that it's not gonna be the case. Because we're not gonna make it through the persistent financial troubles of our age. It's all downhill from here, folks! Watch out for those fires.

The Tetris Effect


1. Computer Space

When I was in second grade, my teacher sent a note home to my mother. I had recently been skipped ahead from first grade to second grade and the new teacher was worried about me. I was keeping up with the class fine, I was having no problem with that, she said in the note, but she was worried about me because all I would ever write or talk or draw about in class or in my journal or for homework were video games. They seemed to be the only thing that I thought about. She wondered whether maybe there might be something wrong with me for me to be so obsessed with games.

In the opening scene of the film, a boy is wandering along an empty stretch of highway, the frame filled with waves of desert heat. His face is blank and he carries a metal lunchbox in one hand, swinging it back and forth as he goes. He is no older than six or seven. The batteries of the sun are slowly dying; heat waves play with the orange light, bending it into shimmers. As the last credits fade into the skyline, a policeman in an SUV pulls up alongside the boy and asks him where he thinks he's going. "California," the boy says. His face is blank, his eyes ciphers. The policeman keeps talking to him, but all the boy will say in response is "California."

"When [he] was born, in 1971, his steel blue eyes seemed crossed in an unusual way, drawing immediate concern from his parents. A local pediatrician…dismissed [their] worries, ensuring them that the boy had a lazy left eye that would improve with time…. Finally, an ophthalmologist diagnosed retinoblastoma, a dangerous cancer that strikes one in twenty thousand children.... Doctors removed the boy's left eye, to prevent the tumor from spreading.... Before he turned two, [he] was fitted with a glass prosthesis. It was an approximation of his natural eye, the best they could produce at the time, but it had no movement, making it quite obvious."

"The Tetris Effect" is 12,639 words long. You are welcome to read it later with Instapaper.

I was born with a bad left eye. The eye was called "lazy," as if it were a sign of poor moral character instead of a glitch in the coordination of one or more of the half-dozen muscles of each eye. My lazy eye limited my depth perception and made things hard for me during PE class and at recess. At softball, I always struck out, no matter how I swung: on the basketball court, chest-passed balls hit me full in the face and this was sometimes because of my poor vision and sometimes because they had been intended by others to hit me full in the face. Every day after school, I sat on the carpet in our living rooms and played video games on our Genesis. When I played video games, my lazy eye didn't matter anymore because the screen I was playing the games on had no depth; it was flat. I could move through this sixteen-bit pixel world as well as someone with perfect vision. Maybe even better.

The next scene takes place in a psychiatric clinic, where the boy sits quietly playing with plastic blocks on the floor as his mother and stepfather talk with his psychiatrist about the boy running away, which we find out is a thing he does often. The boy arranges the colored blocks in interlocking patterns on the carpet; from them, he builds towers that rise up above his knees, as high as his chest, but he refuses to speak. He will not say anything to anyone, not a word, except "California." His stepfather reminds the psychiatrist that it has been this way for two years, since the death of the boy's twin sister in an accident, that in two years there has been no change.

"His depth perception was poor. Intense pain in the socket often forced him to leave the class to visit the school nurse. One day in second grade, older children gathered around, cheering him to 'take it out, take it out.' Reluctantly, he complied, drawing even more unwanted attention….'I never had more than one or two friends, if that,' [he] recalls. 'I was always a bit of an outsider.'"

When she read the note, my mother wasn't too worried. She didn't think the video game thing was a problem because boys will be boys and she had two of them to deal with, after all, but she told me that maybe for a while I should try writing and drawing and talking about some different things at school, because then my teacher would be less concerned and also because, of course, there were other things in the world besides video games. I nodded my way through her speech and said "yes" and "okay" and "I understand" and when she was finished I went back to the living room, where the game I had been playing was paused, waiting for me.

"Though [he] is a heavily traumatized boy, he has a certain fixation with building, stacking things," the psychiatrist says. The camera cuts away to the boy, building the tower from blocks on the carpet. It rises skyward, one block on top of the other; the boy seems completely focused on the activity, oblivious to the fact that people are talking about him. "These little monuments he makes," she says, her voice breaking, "I like to think that they mean something."

The world's first commercial electronic video game, Computer Space, was released in 1971. The world's first electronic stock market, the National Association of Securities Dealers Automated Quotations (NASDAQ), opened in 1971. The world's first scholarly journal devoted to the study of autism and autism spectrum disorders in children, The Journal of Autism and Developmental Disorders, published its first issue in 1971.

The boy's stepfather wears a black suit and has a black briefcase which he fingers as he talks to the psychiatrist. He drinks coffee and paces around the conference room; this is a waste of his time, he needs to get back to the office. He tells the psychiatrist that it's been two years with no change and that they've decided it's time to move the boy into an institution. In the next scene, which takes place in a dingy working class kitchen, we find out that the boy's birth father thinks that this is wrong, that the boy should be at home with his family, but that he can't really do anything about it because he can't afford another mouth to feed or a custody battle to fight, because he's just a blue collar guy dressed in a stained polo shirt, powerless against the power suit.

"[He] quickly became enamored with making money. Sometimes he'd wash dollar bills, drying them off with a towel and placing them between the pages of thick books on his shelf to make them look crisp and new. Working odd jobs on Sundays and holidays, including an $11-an-hour stint at a local IBM research lab, he built a small savings account that he began to invest in mutual funds."

My favorite game when I was in second grade was called Kid Chameleon, which was a game in which your character, traveling through a dangerous virtual world, could take on different identities by collecting masks. The masks changed your character; they changed you and allowed you to do different things, to be different than the person you were normally. I wrote about the game and talked about it and drew about it every day at school because I thought it was important, more important than anything else in the world. You put on the masks and you were made different; you were yourself but you were also something else, someone else, different. I couldn't understand why everyone else couldn't see how important it was.

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A Conspiracy of Hogs: The McRib as Arbitrage

One of McDonald’s most divisive products, the McRib, made its return last week. For three decades, the sandwich has come in and out of existence, popping up in certain regional markets for short promotions, then retreating underground to its porky lair—only to be revived once again for reasons never made entirely clear. Each time it rolls out nationwide, people must again consider this strange and elusive product, whose unique form sets it deep in the Uncanny Valley—and exactly why its existence is so fleeting. READ MORE

'Margin Call' as Inefficient Propaganda

Here is a very negative take on Margin Call, the new "thriller" (it's not really) about a boutique Wall Street firm that suddenly finds out that it's been engaged in garbitrage (did I just make that up??? Google says "not really") and its VOLATILITY METRICS ARE THROUGH THE ROOF and OMG SELL SELL SELL THIS CRUD TO DEUTSCHE! Which is kind of hilarious. I love that there's a movie with a plot based on analysts and graphs. Also Demi Moore gives her best performance ever, and of course I'm including her star turn in Charlie's Angels. Also MARY MCDONNELL is in it, deliciously briefly, and I'd watch dog food commercials if she starred in them. So while describing the film-going experience as spending "107 valuable minutes of your life hate-watching poorly-scripted/directed banker-propaganda that tries to make you believe that, despite their obvious flaws and all, deep down those Wall Street bankers are complex human beings, just like you and me" is technically correct, it's also technically correct that people on Wall Street are complex human beings, just like you and me! And actually the film is pretty clear that, in speed-selling off a heap of dung to get out first, the fictional film and its fictional brokers and risk management folks are just being the biggest jerks imaginable—not tortured heroes, but pretty much Grade A Assholes. But yeah, it's kinda silly. And also: just so phenomenally functionally untrue, though I appreciated their detailed approach to financial math. I did spend about a third of the film trying to make up some puns about Quinto and quants. (I spent another third gazing upon Zachary Quinto's randy eyebrows.) Anyway, while it's a problematic movie politically, and fascinating/unbelievable, is it more problematic than The Skin I Live In and it's vast rapeyness? Whatever, this is all moot now, the new Harold and Kumar is out, and that's a flick we can all get behind. (Seriously, best franchise ever.) (via)

Missing $700 Million? Why Worry!

"Federal regulators have discovered that hundreds of millions of dollars in customer money has gone missing from MF Global in recent days, prompting an investigation into the brokerage firm....The recognition that money was missing scuttled at the 11th hour an agreement to sell a major part of MF Global to a rival brokerage firm. MF Global had staked its survival on completing the deal. Instead, the New York-based firm filed for bankruptcy on Monday.... The discovery that money could not be located might simply reflect sloppy internal controls at MF Global. It is still unclear where the money went. At first, as much as $950 million was believed to be missing, but as the firm sorted through its bankruptcy, that figure fell to less than $700 million by late Monday." READ MORE

Rich People Actually Don't Understand Business Either

Remember how a former co-CEO of Goldman Sachs became governor of New Jersey and then became CEO of a derivatives brokerage that then had a $191.6 million quarterly loss (its fourth quarter of loss!) and was probably going to file for bankruptcy and was suspending from doing business by the Fed? Makes you think.