Irrational Finance

Quote

Two excerpts from Rational Irrationality: The real reason that capitalism is so crash-prone.

What boosts a firm’s stock price, and the boss’s standing, is a rapid expansion in revenues and market share. Privately, he may harbor reservations about a particular business line, such as subprime securitization. But, once his peers have entered the field, and are making money, his firm has little choice except to join them. C.E.O.s certainly don’t have much personal incentive to exercise caution. Most of them receive compensation packages loaded with stock options, which reward them for delivering extraordinary growth rather than maintaining product quality and protecting their firm’s reputation.

Here is another on financial innovation, which made me think of my bank post:

Limiting the development of those securities would stifle innovation, the financial industry contends. But that’s precisely the point. “The goal is not to have the most advanced financial system, but a financial system that is reasonably advanced but robust,” Viral V. Acharya and Matthew Richardson, two economists at N.Y.U.’s Stern School of Business, wrote in a recent paper. “That’s no different from what we seek in other areas of human activity. We don’t use the most advanced aircraft to move millions of people around the world. We use reasonably advanced aircrafts whose designs have proved to be reliable.”

Domain Anonymity and the Brilliance of Entertainment Lobbyists

Asides

To rid the internet of piracy, entertainment companies are willing to greatly reduce privacy, at least where website registration is concerned.

Where the entertainment industry views proxy registration as a pirate’s tool for obfuscation, privacy advocates see identity concealment as a feature that can enable free speech and freedom from harassment.

So there’s a new proposal to force any “commercial” website, which could cover pretty much anything, to have real WHOIS/contact info. This is a terrible idea, and of course there are already ample and simple means to bypass proxy services being actually abused with a court order. But they want to go a step further, so potentially a parenting blogger with ads or affiliate links on their site would be forced to put their actual home address and phone number in a public directory anyone on the internet can access, or break the law. What could go wrong? EFF has more about why this impacts user privacy.

I think the better question here, is when has the entertainment industry ever proposed something good for consumers or the internet? I’m not kidding, 100% serious: have they ever been right?

It seems like a good approach for governing bodies like FCC, ICANN, or Congress to just blanket oppose or do the opposite of what MPAA or COA propose, and they’ll be on the right side of history and magically appear to be a very tech-savvy candidate or regulator.

Sting

Personal

I’m in the midst of finals, so there is not a lot of time for extra-curricular writing here. Things have still been busy. Most notably, I am now a member of the Web Standards Project, and you can see where my bio will eventually go. A friend in San Francisco told me the other day that whenever I come up in conversation it’s as “Photo Matt,” partly because no one can remember my last name. This was exciting to hear because it puts me a single word away from one-word celebrities such as Sting, Prince, Common, Madonna, Ludacris, Seal, and Poe. I suppose I’m in the less-exclusive two-word celebrity club with the likes of Snoop Dogg, Puff Daddy (P. Diddy?), Big Boi, and Andre 3000. Right. The reason I think it’s all funny is that the filename of my bio is photomatt.html, breaking the convention of every other bio on the WaSP site. I guess Molly forgot my last name.

Once again, sorry for the unexpected break in posting. As my schedule settles things should return back to normal, whatever that may be. Besides, all the action is on WordPress anyway, which is fast-approaching its version 1.2 release. Version 1.0 was a big deal and made a lot of necessary architectual changes that we really needed to move forward, but I think 1.2 is the one that’s going to make waves. As a welcome side-effect of WordPress’ recent surge in popularity, there has been a lot more activity with volunteers sending in patches and working on documentation, both of which are sincerely appreciated. The official chat channel has been busy too, #wordpress on irc.freenode.net. I currently have two bots running in the channel, wpbot and pressbot. Wpbot is based on the interesting Mozbot package, which has great logging features and a few other nicities, but just wasn’t what I was ultimately looking for. What I really wanted was JiBot, and that’s what pressbot is. It was more involved installation than Mozbot—I had to download and compile Python, SQLite, and a number of Python packages—but it has been totally worth it. I have been doing a number of development-related setups lately, especially on Windows, and I can’t wait until I get a free moment to write about them. My productivity and organazation has improved several-fold as a result of a few pieces of well-connected open-source software.

Nick Denton: Blog Maven / Thief

Design

Every once in a while someone you hear a story that makes your blood boil. Sometimes it happens to someone you know. Joe Clark has the complete details, but here’s a rundown of the events as I understand them:

  1. Noel Jackson redesigns Fleshbot using CSS and XHTML, all in perfectly compliant code. I talked with him for a bit of this, sent some screenshots. He worked really hard on it and the result was, if I may say so, gorgeous despite the questionable content.
  2. Joe contacts Nick Denton on behalf of Noel saying what a neat thing Noel had done and recommending they hire him. Joe can be a nice guy like that.
  3. Denton responds that they can’t really afford anything like that right now.
  4. Noel’s design shows up on Fleshbot, a few days later they remembered to credit him for it.
  5. Later Noel’s exact code, right down to an empty div he had to add to get the layout to work just right, shows up on Gawker and Gizmodo. Some colors are changed, and likely due to incompetence of the implementor the other new designs have numerous mistakes added.
  6. Noel steams quietly for a few days, then talks to Nick Denton. Denton doesn’t see what the big deal was using Noel’s copyrighted work on several other sites. It reminds me of people who rip off other’s designs and then don’t understand why you’re mad about it. The copies are not as high quality as the original, as well.

Smells rotten to me. Personally I was quite fond of Gizmodo, as it really is a high quality blog, but I’m not going to visit it anymore and I’ve delinked it because I don’t want to support a company with such low ethical standards. I encourage you to consider the situation and come to your own conclusions. All I can do at this point to support Noel at this point is let more people know about what’s happened to him, in the hope that possibly this could end on a more positive note.

Update: Denton has emailed me and is telling everyone that he has posted chat transcripts that clear everything up. I applaud him for putting more information out there, but it doesn’t seem to help his case much. I suppose anyone can claim ignorance as the reason for a mistake. Some will believe that, some won’t. What makes the difference is actions from here on out, now that everything is “clear.”

Once a little boy sent me a charming card with a little drawing on it. I loved it. I answer all my children’s letters—sometimes very hastily—but this one I lingered over. I sent him a card and I drew a picture of a Wild Thing on it. I wrote, “Dear Jim: I loved your card.” Then I got a letter back from his mother and she said, “Jim loved your card so much he ate it.” That to me was one of the highest compliments I’ve ever received. He didn’t care that it was an original Maurice Sendak drawing or anything. He saw it, he loved it, he ate it.

From Maurice Sendak, the author of Where the Wild Things Are.

Nathan Myhrvold and Modernist Cuisine

Review

Nathan Myhrvold, an interesting character I’ve following for a few years now, has been in the news lately for his co-authorship with Maxime Bilet and Chris Young of the new food bible Modernist Cuisine: The Art and Science of Cooking (Amazon link). (Peep that beautiful, 100% WordPress-powered site.) I pre-ordered it forever ago, a fact that may surprise friends who know how little I cook, but I do love food and I was as interested in the pictures and the result of a detail-oriented and science-driven obsession with quality that goes all the way down to the stochastic printing process as the articles/recipes .

The books are, in a word, stunning. I’m probably a lifetime away from attempting a 30-hour burger, but last night I did try a sous-vide approach to a New York sirloin and it turned out amazing. (Though that photo probably won’t be in a future edition of Modernist Cuisine.) The fact I can barely scramble eggs but made a super-good steak might portend the apocalypse. I think sous-vide cooking is something that will appeal a lot to engineers or analytically minded folks because it’s a controlled process with predictable outcomes.

Here are some interesting links and videos I’d recommend around Modernist Cuisine, sous-vide cooking, and Nathan Myhrvold himself:

If you made it this far, two bonuses:

At the EG Conference in 2007 I interviewed Nathan Myhrvold about the Dvorak keyboard layout, which I’ve used about 11 years now, and here’s that video:

Second, Mark Pearson of Pear Press (also associated with one of my other favorite authors John Medina) recommends the Pizza Nepoletana technique in volume 2 page 26 as an accessible dish, and the tip on decanting wine in a blender.

Thanks to many friends for the links, and also for listening to me blather on about this for the past week or two. You may also be subject to more experiments in the future.

I’m just going to keep updating this post with more links: