The Lilies of the Street

May 10, 2012
Posted by Jay Livingston

Felix Salmon (here) writes about using “neutrinos to transmit information, at the speed of light, right through the center of the earth.”  He continues:

If this was successfully implemented, price information from Sydney could reach New York in just 40.2 milliseconds, compared to the 84.4 milliseconds it takes to send that information on fibers around the surface of the earth. The difference is more than enough time for traders in New York to make real money arbitraging securities listed in both cities.

I don’t know enough about neutrinos, arbitrage, or Felix Salmon to be sure, but I think he’s being ironic. 

In 2009, we learned that Goldman Sachs was making untold millions by using computerized “high frequency” trading. 

Powerful algorithms — “algos,” in industry parlance — execute millions of orders a second and scan dozens of public and private marketplaces simultaneously. They can spot trends before other investors can blink, changing orders and strategies within milliseconds. (From the New York Times)

That year, Goldman paid its 30,000 employees year-end bonuses that averaged $700,000. That’s the average; many executives and traders took away millions

Those neutrino  arbitrageurs and derivative traders make up a fair chunk of the 1% (or really the half of one percent, according to Scott Winship)  They got rich and stayed rich by moving money around.  At warp speed. The Republicans tell us it would be disastrous and unfair to raise their tax rate from 37% to 39%, even though in reality, thanks to complicated tax laws, many of them pay a rate that’s half of what their office staff pay. Why disastrous and unfair?  Because they are “job creators.” 

Behold these job creators, the lilies of the Street. They manufacture not, they service not, they heal not, teach not, entertain not . . .  yet Solomon in all his glory never had the kind of moolah they have amassed. Goldman’s profits in 2009 were about $13 billion. 

Do we have an estimate of how many jobs they created? 

HT: Dan Hirschman

Tar Heels Do It Again

May 9, 2012
Posted by Jay Livingston

Is North Carolina once again lining up on the wrong side of history?

The citizens of North Carolina voted yesterday to prohibit gay marriage.  It wasn’t the first time North Carolina put marriage in its constitution.*

The text of 1875 constitution says that interracial marriages are “banned forever.”  Not quite. The ban lasted 92 years.  When North Carolina drafted a new constitution in 1971, the US Supreme Court had already declared state intermarriage laws unconstitutional. 

Will it take that long for the Court to take a similar view of laws banning same-sex marriage?  That depends on who appoints the justices.  But I suspect that public opinion will turn much sooner, even in North Carolina.  In 20-30 twenty years, most Americans will look at these laws the way we now look at those 19th-century anti-miscegenation statutes that survived until 1967 – with the binge-drinker’s  morning-after sense of embarrassment.  “Did I really do those things?” – as though the denial of rights to whole categories of people had been unintentional, not really harmful, and in retrospect maybe even kind of amusing. 

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* I found this image at the Think Progress page on Twitter (here).  It can surely now be found in many other places.

Sendak and Childhood

May 9, 2012
Posted by Jay Livingston

All happy childhoods are alike.  Each happy childhood is unhappy in its own way.  Or maybe not.  But just as people differ in how they view their own childhoods, cultures too vary in their dominant image of childhood. 

I’ve posted before (here for example) that in American movies children are often morally superior to adults – wiser, more competent, and more honest.  They are also untainted by the complexities and troubles of the adult world. 

That’s not the way Maurice Sendak saw it.  Those monsters in Where the Wild Things Are were based on his own aunts and uncles. 

In 1993, Art Spiegelman visited Sendak “at his idyllic Connecticut estate” and drew the experience for The New Yorker.

Sendak and Spiegelman both work in the panel format. Both are children of Polish Jews and have family who were killed in the holocaust.  It’s possible that they also share an almost un-American view of childhood. 

(This probably violates the New Yorker copyright, but until they come for me, I’ll leave it up. You can see the full Spiegelman story here.)

Choosing Junk

May 8, 2012
Posted by Jay Livingston

Some people, many people in fact, prefer junk food. They buy it even when the food labels and the fast food outlets post the caloric counts and ingredients that tell them it’s junk 

If you assume that Google’s auto-complete reflects volume, many people also prefer junk news and information.
 
Andrew Gelman  links to this article comparing our media diet to junk food.  Here’s a screen shot of an excerpt, but the whole thing is worth reading.