Economists continue to debate the extent to which free markets are truly efficient.
It seems to me that two things are certain:
free markets are remarkably efficient at …
1. accumulating wealth, and
2. consolidating power.
Beyond that, it seems to me that free markets are not that efficient at all.
When the news broke today that a crane had fallen in New York City I immediately went to the web in search of video footage. CNN was my first stop. As expected, they had a video clip at the top of the page.
The next two minutes were a stunning realization of all that is wrong with the current attempts to monetize online video. The clip was 75 seconds long. In order to watch the clip I had to endure a 30 second pre-roll advertisement . . . for VIAGRA! …
As they say on Wait, Wait, Don’t Tell Me, “and now for some quotes from this week’s news.”
First, a delightful blog I discovered called The Big Picture by Barry L. Ritholtz. In a post titled The Underlying Basis of Finance and Credit, Mr Ritholtz observes:
Over the entire history of human finance, the underlying premise of all credit transactions — loans, mortgages, and all debt instrument — has been the borrower’s ability to repay.
Except for [the 5 year period from 2002 to 2007] the entire history of human finance was rather reasonable about the basis for making loans in general, and extending mortgage loans in particular.
For 99.9996% of the last 1.2 million years, loans were granted primarily on the condition of whether or not the lender believed that the borrower could repay. Between 2002 and 2007 this condition was dropped.
All power corrupts, but we need the electricity.
— Unknown
Suppose you were an idiot and suppose you were a member of Congress. But I repeat myself.
— Mark Twain
As I watched the latest meltdown from the latest cabinet confirmations I can’t help but think that Mark Twain may have been on to something in his assessment of people who run for political office.
It has been obvious to me for a long time that congress is broken. I couldn’t quite articulate exactly how I thought it was broken but I knew something was wrong. And then I discovered Lawrence Lessig’s latest mission. Partnering with Joe Trippi, he is determined to change congress. He makes a powerful case that lobbying and special interests have eroded the very foundations of the constitution.
I think there is only one book to a man. It is true that a man may change or be so warped that he becomes another man and has another book but I do not think that it is so with me.
— John Steinbeck, Journals of a Novel: The East of Eden Letters
East of Eden was the first book that I read by Steinbeck. It was moving and well written and rich with characters. Then I discovered Journals of a Novel: The East of Eden Letters and suddenly I felt I had been given a back stage pass to the mind of a writer.
Steinbeck had already written Of Mice and Men (1937) and The Grapes of Wrath (1939) when he set out to write East of Eden (1951). In the intervening years he lived through two divorces and served as a war correspondent. Despite the critical success of his earlier works, his standing as a major novelist had faded. As today’s quote reveals, Steinbeck also felt that he had not yet told the one story that was within him. His editor, Pascal Covici, did all that he could to encourage Steinbeck. Covici sent Steinbeck a number of notebooks and instructed Steinbeck to use them to write.
You ask me why I spend my life writing?
Do I find entertainment?
Is it worthwhile?
Above all, does it pay?
If not, then, is there a reason? …
I write only because there is a voice within me that will not be still.
— Sylvia Plath
For ten years during my late twenties and early thirties I kept a journal. I started writing modestly in college and it eventually grew into such a compulsion that I would often write for hours a day. The pen seemed to have a mind of its own. Sometimes I would start a sentence not knowing where it was going, only to be amazed at the journey that it would launch. Even as computers started to enter my life, I wrote everything longhand. There was something magic about the connection between my thoughts and the paper, linked through the pen clasped in my fingertips.