The Wall Street Journal reports that U.S. citizens have suddenly become quite thrifty.
Usually, frugality is good for individuals and for the economy. Savings serve as a reservoir of capital that can be used to finance investment, which helps raise a nation's standard of living. But in a recession, increased saving -- or its flip side, decreased spending -- can exacerbate the economy's woes. It's what economists call the "paradox of thrift."
U.S. household debt, which has been growing steadily since the Federal Reserve began tracking it in 1952, declined for the first time in the third quarter of 2008. In the same quarter, U.S. consumer spending growth declined for the first time in 17 years.
The Wall Street Journal reports that U.S. citizens have suddenly become quite thrifty. Usually, frugality is good for individuals and for the economy. Savings serve as a reservoir of capital that can be used to finance investment, which helps raise a nation's standard of living. But in a recession, increased saving -- or its flip side, decreased spending -- can exacerbate the economy's woes. It's what economists call the "paradox of thrift." U.S. household debt, which has been growing steadily since the Federal Reserve began tracking it in 1952, declined for the first time in the third quarter of 2008. In the same quarter, U.S. consumer spending growth declined for the first time in 17 years. Hard-Hit Families Finally Start Saving, Aggravating Nation's Economic Woes...br clear="both" style="clear: both;"/
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Astrophysicist Neil DeGrasse Tyson, author of Death by Black Hole and Other Cosmic Quandaries, tells the entertaining story of what it's like to be sucked into a black hole. Neil DeGrasse Tyson: Death by Black Hole (via How Good is That?)...br clear="both" style="clear: both;"/
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German Billionaire Merckle Commits Suicide - WSJ.com — Did he leave a suicide note? None is mentioned. The fact that he was in the cement business gives me pause as to what really happened. Not that I want to stereotype anyone.
The family of Adolf Merckle said the German billionaire committed suicide after his business empire [...]
Apple Introduces Revolutionary New Laptop With No Keyboard
While we properly view this as satire today, I would bet my 1940s rollerskates key that down the decades there will be an internet connective device like this. The world does go around and around, don’t you know.
Apple Introduces Revolutionary New Laptop With No Keyboard
While we properly view this as satire today, I would bet my 1940s rollerskates key that down the decades there will be an internet connective device like this. The world does go around and around, don’t you know.
Patrons at Cecil's Jazz Club in West Orange, N.J., savored one of the last nights for smoking in bars and restaurants. (Photo: Marko Georgiev/The New York Times)
A journalist writing for the Financial Times complains that Britain's indoor smoking ban has resulted in more pubs closing and a decline in beer sales of 10 percent.
I [...]
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Eric A. Morris is a researcher at U.C.L.A.'s Institute of Transportation Studies, concentrating on a variety of transportation issues including history, economics, and management. He weighed in here earlier on the gas tax. Here is his first of two posts on road tolls.
Why You're Going to Love Paying to Drive on Roads That Used [...]
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The Times (of London) recently reported that "The F.B.I. has been forced to transfer agents from its counter-terrorism divisions to work on Bernard Madoff's alleged $50 billion fraud scheme."
This might lead you to ask an obvious counter-question: Has the anti-terror enforcement since 9/11 in the U.S. helped fuel the financial meltdown? That is, has the [...]
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PureSolo.com is a site and free downloadable software that enables musicians to play along to a wide variety of professional, original and well-known music tracks, then record and share the music.
According to the press release, PureSolo.com was founded by a mixture of entrepreneurs who included ex-Goldman Sachs financiers, and a professional trumpeter who has played [...]
PureSolo.com is a site and free downloadable software that enables musicians to play along to a wide variety of professional, original and well-known music tracks, then record and share the music.
According to the press release, PureSolo.com was founded by a mixture of entrepreneurs who included ex-Goldman Sachs financiers, and a professional trumpeter who has played with everyone from Ray Charles, to Kylie, and albums like Pet Shop Boys ‘Very’ and Tina Turner’s ‘Simply The Best’.
What do you think? Are these the backing tracks you’ve been looking for? Go to the site, download the software, mess about with it - and come back and report!
After seeing the post on Palm’s official blog about the airing of a new episode of the History Channel’s Modern Marvels featuring the Treo line of smartphones, I promptly scheduled a recording on my DVR at 4:00PM and 9:00PM (redundancy is to ensure that I would get it!).
It’s nice to see Palm products being featured [...]
Modern Marvels
After seeing the post on Palm’s official blog about the airing of a new episode of the History Channel’s Modern Marvels featuring the Treo line of smartphones, I promptly scheduled a recording on my DVR at 4:00PM and 9:00PM (redundancy is to ensure that I would get it!).
It’s nice to see Palm products being featured on TV, right? Click on the YouTube link to watch the clip!
Evan Chesler, presiding partner at Cravath, is the latest to raise his voice against the billable hour. In an op-ed piece he penned for Forbes magazine, Chesler says:
I'm a trial lawyer. I bill by the hour. So do the associates who work for me. I have lots of clients, so I can pretty much work, and bill, as much as I want. This needs to be fixed. Yes, you read that correctly.
Of course, partners and clients and even journalists have been calling for or predicting the death of the billable hour for years. As Chesler himself contends in his piece, nobody really likes the billable hour:
The billable hour makes no sense, not even for lawyers. If you are successful and win a case early on, you put yourself out of work. If you get bogged down in a land war in Asia, you make more money. That is frankly nuts.
Of course, there is a reason that the billable hour won't die. More on that after the jump.
Chesler indirectly makes the point for the billable hour, though he almost certainly doesn't intend to:
How much do I bill per hour? We don't make numbers public at Cravath, but you can assume I'm not cheap.
He then goes into an elaborate analogy about expensive contractors, expensive kitchens, and other expenses that I cannot afford.
But the fundamental beauty of the billable hour isn't really addressed.
"I'm not cheap." The billable hour still provides an excellent way for lawyer A to whip it out over lawyer B. "My firm is not cheap," or "the negotiated price point for high end litigation services accurately reflects my added intellectual value, and it's not cheap" doesn't have quite the right ring to it does it?
The legal profession is an adversarial system ... and -- to quote Herm Edwards -- "you play, to win, the game!" The billable hour is an easy "mini-game" to calculate.
Regardless of the efficacy of Chesler's article, it's still pretty interesting that he made the argument in the first place. AmLaw Daily offers this interesting information:
Client fees have been an issue for Cravath recently. In December, when the firm announced it was cutting its associate bonuses to roughly half of the 2007 payments, Cravath made a point of announcing that its fees would be frozen in 2009. This was not completely helpful to corporate customers as the firm refused to publish its fee schedule. The only publicly available fee information from the firm was filed in mid-2008 as part of a long-running employment discrimination case. In that matter, a mid-career litigation partner posted his billable rate at $875 an hour, a $205 an hour increase since 2004.
The billable hour probably isn't going anywhere anytime soon. But it is nice to dream.
The 5th Circuit has upheld the convictions of former Enron CEO Jeff Skilling, but they have determined that he should be resentenced. The AP reports:
A three-judge panel of the 5th U.S. Circuit Court of Appeals in New Orleans on Tuesday denied Skilling's request that his convictions be overturned because they were based on an incorrect legal theory.
We don't have our hands on the 105-page opinion, but apparently Skilling's argument that Enron was just ahead of the curve on the whole global financial crisis thing wasn't enough to overturn his convictions.
Samsung has been making moves to launch laptops here in the U.S. and one of their first may be a 12-inch netbook with a Via Nano chip. However, they won't display it publicly for fear of Intel's wrath. Here's what seems to be happening:
Samsung has been making moves to launch laptops here in the U.S. and one of their first may be a 12-inch netbook with a Via Nano chip. However, they won’t display it publicly for fear of Intel’s wrath. Here’s what seems to be happening:
Intel offers “guidelines” on how big a netbook can be and still run an Atom chip. The maximum seems to be 10 inches, small enough to look like a netbook. Because these low-powered chips disappoint so many buyers - think MacBook Air - putting them into anything that resembles a real laptop is tantamount to admitting that the chip isn’t powerful enough to handle regular work. Hence the moniker “netbook” and the consistently diminutive names like “nano” and “atom.”
Via’s Nano chip is equally underpowered (in a good way, not a bad way). It takes very little juice to run and as I’ve said before about the Air you honestly don’t expect these things to churn through spreadsheets and then do a little video editing before lunch. Samsung’s new netbook should be similar to the MSI netbook was saw earlier. The existence of this 12-incher does poke a hole in the wrath theory but could there be a more powerful chip coming down the pike to supply these “midbooks?”
Whoever predicted that Apple would introduce iWork '09 today gets a gold star. Keynote, Pages and Numbers all received what I would consider minor updates; no need to run around all willy nilly for these, methinks.
Whoever predicted that Apple would introduce iWork ‘09 today gets a gold star. Keynote, Pages and Numbers all received what I would consider minor updates; no need to run around all willy nilly for these, methinks.
First shown was Keynote, which Phil Schiller, ever the showman, noted was used to make the very presentation so many of us were looking for to. Nothing crazy, really: a few new transitions, some slide-object-rearranger thing, etc. There is a new application for the iPhone (and iPod touch) that lets you control Keynote. Imagine, being able to hit “next” on your slide for only 99 cents. Eh, sorta neat. Should be free.
Next was Pages, the application that doesn’t know if it’s a word processor or a page layout toolset. Not a whole lot here, either: a new full-screen view mode, dynamic page outlines that automatically appear (to give you a better sense of when the page ends, I guess), and some feature that merges data from Numbers with Pages. Seems like that should have been there from Day One.
Lastly, Numbers, Apple’s impression of Excel, has all new stuff that will not appeal to any of you unless you work for H&R Block. New mathematical functions, charts, etc. White shirt, pencil-thin tie sort of stuff.
Apple has also added the ability to share documents over the Internet at iWork.com, which surely must give Google Docs a run for its money. Oh, wait, Google Docs is free and Apple wants money for this ground-breaking feature.
Needless to say, short of actually using iWork for some time, it looks like a rather benign update. Apple wants $99 for a family license. Or, becuase the new iWork requires Leopard, you can grab the Leopard+iWork combo starting at the end of the month for $169.
Proper photos & the like when Apple decides to upload ‘em.
Don't expect Tim Geithner to set any records when it comes to doling out the rest of the Treasury's bailout fund.img src="http://feedproxy.google.com/~r/rss/magazines_fortune/~4/ULBGK7xOyu0" height="1" width="1"/
So president-elect Barack Obama wants to make the deployment of broadband Internet networks part of a sweeping stimulus package that he hopes would create new jobs, update the nation's hospitals, schools and other facilities, and lift the United States out of recession.img src="http://feedproxy.google.com/~r/rss/magazines_fortune/~4/7l94XHQHhdg" height="1" width="1"/
I've been coveting these Nike SB 720° Dunks, fashioned after Atari's vintage skating-themed arcade game 720°, since they dropped this Summer. Thanks to eBayer jcnice08 who put a pair of size 13's up for competitive bid I finally got 'em, and for a sweet price to boot!
I fucking loved the 720° arade game back in the day and sunk many a quarter into it's boombox-bedecked, oddly-angled-joystick-having shell when I was a kid. Its groundbreakingly original subject-matter, sleek polygonal design, refreshing gameplay, killer-bee attacks and signature "skate or die" warning made for one addictive game.
The kicks themselves caught my eye with the combination of muted and bold colors and the checker-board patern interior. Now that I got I 'em I'm happy to report they look really pretty on my feets.
New York-based emcee Bisc1, who is down with the Embedded Records crew and friendly with Imageyenation homies the Nuclear Family, released his debut album 'When Electric Night Falls' early in 2008. Fresh for '09 he's back with a fancy remixed version of the album, called 'The Strange Love Project: WENF Remixtape,' which boasts remixes from Cassettes Won't Listen, Omega One and Nuk Fammers Scott Thorough and Snafu amongst others. It also comes with a collection of complementary artwork by a whole host of artists who were tasked with interpreting Bisc's music in a visual medium.
To download the "freemixtape" you'll need to give Bisc your name and e-mail address. And if your monitor's set to a low screen resolution you might have trouble viewing the download page which requires a lot of screen space and doesn't have any scroll-bars.
New Millennium ATLiens Hollweerd are back with the follow-up to this Summer's 'Edible Phat' project, another "mixtalbum" called 'Electricity Showroom.' Once again it's another 100% free album-length download, and just like their last one it's packed with eccentric Dirty South awesomeness.
German producer/remixer Kimono Kops has graced these pages with remixes of M.I.A. and Bloc Party, but he's ringing in the New Year with an original cut of his own called "The Trade."
It's sweet, catchy, coolly detached, and yet warmly passionate, and reminds me of Depeche Mode, The Blow, Joy Division, Architecture In Helsinki and The Chromatics all at once!
Los Angeles-based beatmaker Dert is a former member of Christian Rap crew Tunnel Rats who's produced for other vaguely Christ-friendly Rap acts including Visionaries member LMNO. These days he's qouting RZA, paying homage to Dilla and sampling the shit out of Björk for a free downloadable album called 'Talk Strange: A Beat Tape Inspired by Björk.'
The title is pretty straightforward insomuch as it's an 18-track beat tape built around samples of various original songs and remixes from the Icelandic weirdo's extensive catalog. It's also free to download, which is something I suggest you do since the Dilla-esque Boom-Bap beats it showcases are all pretty freakin' dope.
With all the support and encouragement I got to buy the team, I think its appropriate to share the decision making process behind what happened and why. Buying the Cubs was a unique opportunity to own one of the most storied franchises in sports. Its a team that represents so much to so many, with [...]
With all the support and encouragement I got to buy the team, I think its appropriate to share the decision making process behind what happened and why. Buying the Cubs was a unique opportunity to own one of the most storied franchises in sports. Its a team that represents so much to so many, with such a unique legacy, that when the opportunity arose, I decided to go for it.
I’m not going to get into the numbers, or the people, or much of the process other than to say that the person I worked with at the Trib was great. The person I worked with at the Cubs did a great job as well. Nothing about the process was anything but positive when it came to the people assigned to work with me.
During the entire process I thought I had a very strong chance of being able to buy the team. I thought I could offer a competitive price. I thought I had the experience to come in and improve the business so that I could continue to invest in the product on the field without having to squeeze every nickel from Cubs fans. I also thought I could win over Major League Baseball. All told, I thought my experience in owning a team and most importantly, my commitment to always trying to win, would give me an important advantage.
From my perspective, the Cubs being a winning team was important to the seller, the Tribune company, even after they sold. When the Cubs won, the newspaper sold more copies, more people watched the games on WGN and listened on the radio, which in turn meant those mediums could sell more advertising at a higher rate. On the flipside, if the new owner was purely about making money at the expense of a winning team, it could cause the value of the seller’s other assets to decline faster than they otherwise would. Not that this would compensate for significant delta in ds;rd price, but it could break ties.
On the flipside, my dedication to winning could also make my job of getting approval with MLB baseball much harder. Some people thought it meant that I would spend on players like I did in my early days with the Mavericks. Back before I learned that sometimes GMs put keeping their jobs ahead of trying to win championships. But thats another story for another time. I had no intentions of trying to outspend the Yankees or Red Sox. There was no reason to. I didnt have to beat either of those teams unless I made it to the World Series. The only teams I had to be better than were those in the National League, and more importantly, those in my division. There were no big spending rivals close to home, so the AL East could spend themselves silly. My plans were to spend to win, not to spend for spending’s sake. IMHO, the money I could save being in the 2nd tier of payroll could be invested in scouting and development. I made this clear to any and all of the owners that I spoke to across the league. Of course that didnt stop some from trying to convince some owners otherwise.
In particular, a lot of the “intelligence” that I would be a big time spender seemed to come out of Chicago. The “conventional wisdom” of people that I talked to around the league suggested that Jerry Reinsdorf, the owner of the White Sox was going to be my primary obstacle to getting approval from MLB should I buy the Cubs. Contrary to popular belief, I think I have a good relationship with Jerry. I know I have a good relationship with all the people I deal with at the Bulls. We are probably on the same side of NBA issues 99pct of the time. I honestly don’t know what if any information was coming from Jerry, or his position on my owning a team. He was very cordial to me and made it clear that he would be happy to talk to me about anything at any time, although we never did get the chance to chat.
My sense of the entire situation was that whoever the new owner of the Cubs would be, it was in the Sox best interest for things to stay business as usual. Published TV ratings and other published measures showed that the Cubs were more popular than the Sox, yet before I even started looking at the Cubs, I knew from my discussions with people in the NBA that the Cubs and Sox were treated as equals in their business dealings. That was great for the Sox, not so good for the Cubs. Im guessing the people in the Sox organization knew, that if I bought the team, particularly at the price point that was being suggested in the papers, there was no way I would just accept parity in future business dealings. I was going to have to try to negotiate the very best deals possible for the Cubs, even if it was at the expense of the White Sox.
In my conversations with owners around the league, they seemed to understand this point. But what was most interesting to me, was that a recurring theme was that they thought I would be good for baseball. Many had talked to NBA owners who explained that I did my homework and was a good partner. That in my areas of strength, in particular technology, I would make sure I tried to contribute and help the league how and where I could. It was pretty obvious that more than a few of the owners hoped I would come in and stir things up and stand up and speak for the owners when it came to digital rights and the future of technology and how it would impact the teams and leagues profitability. They were hoping I would be the new guy to come in and take the commissioners’ arrows. Which of course I would be fine with and happy to do if it got me their confirmation vote.
The obstacles seemed to be minor, the opportunity with the Cubs significant. It really was an opportunity that I thought I could be successful with on the field, and financially. More importantly, its something I could have a blast with. The Cubs had a strong organization, with strong management, so if I could do a deal, it wouldnt require changing the entire organization or culture like I had to with the Mavs. I felt I would have to tweak some things, but it was all manageable, which made me feel good that I could stay commited to the Mavs and lock in with the Cubs .
The hardest part was going to be the financial deal. I never thought it conceivable that it would be hard to spend a billion dollars on a sports team. In this case it was. Add me to the list of people who never want to participate in this type of sales process again. I tried every trick I knew to try to get them to commit to me. It reminded me of when I was 16 and selling magazines door to door “Do you mean to tell me Mrs Doe, that when you tell your husband that you spent 75 cents per day on the education and enjoyment of your family, he is going to get mad ? Of course not, he will be proud and excited for you and your family”. You name the trial close, I went for it. But I couldnt close them.
Then the credit crisis hit and hit hard.
All of the sudden, what seemed like a sane business decision, didnt seem so sane any longer. In particular, the financial participations I had been discussing with my bankers were for shorter term loans. Just refinance at the end of the term. Its what everyone is doing. Except that it no longer seemed like a safe bet that I could refinance in a few years. I didnt want to be caught with a Sumner Redstone margin call, and for better or worse, the banks were getting worried about staying in business and the idea of matching the asset to the term wasnt something they were ready to do, unless of course they could convince 30 other banks to do the same thing. I thought about writing to Congress to get a bailout…just kidding.
With the credit market on the fritz, the other option was to add investors and just pay cash. However, if we were going to pay cash, I was not going to bid anywhere near 1 Billion dollars for the assets. Once the credit crisis hit, the value of cash went through the roof. It was not just a matter of how much the Cubs were worth, it was also a matter of how much more money I could earn with that cash. Cash was and is king. Distressed investment opportunities were rolling in the door that could make me multiples of what any sports team could. I could not see any scenario where the Cubs were worth anywhere near the numbers that had been discussed in the media. There is one publicly owned team, the Atlanta Braves, that are owned by Liberty Capital. The market cap of ALL of Liberty Capital net of cash and debt got as low as $250mm dollars, and today trades for about $500mm dollars, and they own far more than just the Braves.
So there was the issue of valuation. There was also the issue of the economy. It was impossible to predict the full impact of these tough times on any sports team. That uncertainty created two issues. The first of course was valuation. How much would I be willing to pay for the team ? I wasn’t sure. More important to me was the cash flow. If the economy had a significant impact on future revenues, it would also impact how much I could invest in players. The absolute last position i wanted to be in was paying so much for the team, that if revenues fell off, I couldnt play to win.
So when it came down to it, I did what I thought was the only smart thing to do. I asked for an extension. I knew that if they got the money they wanted for the team, well my bid was not going to be high enough anyway. If they didnt, or the other bidders couldnt come up with their money, they would come back to me.
Since I got back from Massachusetts I’ve been slowly unpacking the heaps and piles of new treasures I brought back with me, since once again my family and friends pretty much outdid themselves in demonstrating how awesome they are and how well they know my taste.
As for what I gave out: this year in [...]
Since I got back from Massachusetts I’ve been slowly unpacking the heaps and piles of new treasures I brought back with me, since once again my family and friends pretty much outdid themselves in demonstrating how awesome they are and how well they know my taste.
As for what I gave out: this year in addition to the usual pile of books, music, and games, I also gifted some neat things from Etsy that were (I think) well-received. I’ll probably buy even more from Etsy next year if I can manage to get started on my shopping a little earlier.
Tuesday, 06 January 2009
Home 
Usually, frugality is good for individuals and for the economy. Savings serve as a reservoir of capital that can be used to finance investment, which helps raise a nation's standard of living. But in a recession, increased saving -- or its flip side, decreased spending -- can exacerbate the economy's woes. It's what economists call the "paradox of thrift."
Samsung has been making moves to launch laptops here in the U.S. and one of their first may be a 12-inch netbook with a Via Nano chip. However, they won't display it publicly for fear of Intel's wrath. Here's what seems to be happening:
Whoever predicted that Apple would introduce iWork '09 
Even though it's sleeveless, we envision wearing two-tone frock by rag & bone year-round.
These fourteen-karat gold letterpress necklaces have a retro charm (and price tag).
Roku's new and improved Netflix Player is one of the most recession-friendly entertainment options around.
