Showing posts with label economics. Show all posts
Showing posts with label economics. Show all posts

Wednesday, January 01, 2020

Books read in 2019

Not much blogging going on here still, but here's my annual list of books read for 2019.
  • Graham T. Allison, Destined for War: Can America and China Escape Thucydides's Trap?
  • Ross Anderson, Security Engineering (3rd edition, draft chapters)
  • Herbert Asbury, The Barbary Coast: An Informal History of the San Francisco Underworld
  • Heidi Blake, From Russia with Blood: The Kremlin's Ruthless Assassination Program and Vladimir Putin's Secret War on the West
  • Rutger Bregman, Utopia for Realists: How We Can Build the Ideal World
  • Oliver Bullough, Moneyland: The Inside Story of the Crooks and Kleptocrats Who Rule the World
  • Bryan Caplan and Zach Weinersmith, Open Borders: The Science and Ethics of Immigration
  • C.J. Chivers, The Fighters: Americans in Combat
  • Sefton Delmer, Black Boomerang
  • Nina J. Easton, Gang of Five: Leaders at the Center of the Conservative Crusade (bio of Bill Kristol, Ralph Reed, Clint Bolick, Grover Norquist, and David McIntosh)
  • Ronan Farrow, Catch and Kill: Lies, Spies, and a Conspiracy to Protect Predators
  • Ronan Farrow, War on Peace: The End of Diplomacy and the Decline of American Influence
  • Ian Frisch, Magic is Dead: My Journey into the World's Most Secretive Society of Magicians
  • Anand Giridharadas, Winners Take All: The Elite Charade of Changing the World
  • Reba Wells Grandrud, Sunnyslope (Images of America series)
  • Andy Greenberg, Sandworm: A New Era of Cyberwar and the Hunt for the Kremlin's Most Dangerous Hackers
  • Jodi Kantor and Megan Twohey, She Said: Breaking the Sexual Harassment Story That Helped Ignite a Movement
  • Stephen Kinzer, Overthrow: America's Century of Regime Change From Hawaii to Iraq
  • Michael Lewis, Flash Boys: A Wall Street Revolt
  • Jonathan Lusthaus, Industry of Anonymity: Inside the Business of Cybercrime
  • Ben MacIntyre, A Spy Among Friends: Kim Philby and the Great Betrayal
  • Joseph Menn, Cult of the Dead Cow: How the Original Hacking Supergroup Might Just Save the World
  • Anna Merlan, Republic of Lies: American Conspiracy Theorists and Their Surprising Rise to Power
  • Jefferson Morley, Our Man in Mexico: Winston Scott and the Hidden History of the CIA
  • Sarah T. Roberts, Behind the Screen: Content Moderation in the Shadows of Social Media
  • Hans Rosling, with Ola Rosling and Anna Rosling Rönnlund, Factfulness: Ten Reasons We're Wrong About the World--and Why Things Are Better Than You Think
  • Russell Shorto, Amsterdam: A History of the World's Most Liberal City
  • Alexander Stille, The Sack of Rome: Media + Money + Celebrity = Power = Silvio Berlusconi
  • Jamie Susskind, Future Politics: Living Together in a World Transformed by Tech
  • Erik Van De Sandt, Deviant Security: The Technical Computer Security Practices of Cyber Criminals (Ph.D. thesis)
  • Tom Wolfe, The Right Stuff
  • Tim Wu, The Attention Merchants: The Epic Scramble to Get Inside Our Heads
Top for 2019: Bullough, Farrow (Catch and Kill), Wu, Chivers, Rosling, Greenberg, Blake, Allison, Caplan and Weinersmith, Kinzer, Delmer.

I started the following books I expect to finish in early 2020:

Myke Cole, Legion versus Phalanx: The Epic Struggle for Infantry Supremacy in the Ancient World
Walter LaFeber, Inevitable Revolutions: The United States in Central America (2nd edition)
Brad Smith and Carol Anne Browne, Tools and Weapons: The Promise and Peril of the Digital Age
Peter H. Wilson, The Holy Roman Empire: A Thousand Years of Europe's History

Two books I preordered and look forward to reading in 2020:

Anna Wiener, Uncanny Valley: A Memoir (due out January 14)
Thomas Rid, Active Measures: The Secret History of Disinformation and Political Warfare (due out April 21)

(Previously: 20182017201620152014201320122011201020092008200720062005.)

Saturday, June 05, 2010

Abe Heward's new blog on software testing

Veteran software tester Abe Heward has started up a blog on software testing, which I'm sure will also include many items of epistemological, economic, and skeptical interest.  He's already got posts on how the post hoc ergo propter hoc fallacy is relevant to software testing, why good testers aren't robots (and the flaws in one company's attempt to treat them as if they were), and on opportunity cost and testing automation.

Check it out at www.abeheward.com.

Monday, May 31, 2010

The market for creationism

Todd Wood of the Center for Origins Research at Bryan College has gotten around to doing what I haven't done, updating my analysis of the market for creationism that I did in early 2007.  He confirms some of the trends I noted, such as that the market for creationism has been growing and is dominated by Answers in Genesis.  His update goes further, and includes a comparison to the National Center for Science Education, noting that he market for criticism of creationism has grown along with the market for creationism.  He also points out that the groups involved got a boost revenue in 2005 during the Dover trial, that the AiG split from Creation Ministries International doesn't appear to have hurt AiG, and that "Godquest," formerly known as Creation Science Evangelism, the Hovind organization, is the #3 creationist organization for revenue behind AiG and the Institute for Creation Research.

Wood reports the following numbers for recent years:
2003:
$14.6 million market
AIG: 61.6%
ICR: 30.6%
*CEM: 4.2%
*CRS: 1.7%
*CM: 1.6%
*CSC: 0.4%

2004:
$15.8 million market
AIG: 65.7%
ICR: 26.8%
CEM: 3.1%
CRS: 2.0%
CM: 1.9%
CSC: 0.4%

2005: **
$10.8 million market
AIG: 50.4%
ICR: 40.3%
CEM: 5.1%
CRS: 1.0%
CM: 2.5%
CSC: 0.6%

2006:
$21.3 million market
AIG: 64.1%
ICR: 30.9%
CEM: 2.2%
CRS: 1.1%
CM: 1.3%
CSC: 0.3%

2007:
$25.6 million market
AIG: 69.5%
ICR: 27.6%
CEM: no data
CRS: 1.2%
CM: 1.1%
CSC: 0.3%
CMI: 0.3%

2008:
$33.3 million market
AIG: 68.2%
ICR: 26.2%
CEM: no data
Godquest: 2.8%
CRS: 0.7%
CM: 1.0%
CSC: 0.2%
CMI: 0.9%
Check out Todd Wood's post for more details.

Friday, October 30, 2009

Maricopa County Notices of Trustee's Sales for October 2009

I haven't posted one of these things in a while, so I figured it was about time.

The big peak was in March, with a total of 10,725 that month. October's total was 6,618.

Friday, June 26, 2009

$40 million in federal housing stabilization money not working in Phoenix

In April 2009, the city of Phoenix received $40 million in federal stimulus money under the Neighborhood Stabilization Program. This program is designed to put a floor on house prices by providing zero-interest loans of up to $15,000 to home buyers to cover downpayments and closing costs on purchases of foreclosed homes.

The number of home buyers who have used this program to date: zero.

Several hundred people have applied for the program, but none has purchased a home yet.

The program requires that buyers have incomes between $55,350 and $104,400, depending on size of family, must complete eight hours of financial counseling in budgeting and home ownership, and must invest $1,000 of their own money. The NSP loan must be repaid in the event that the home is sold or refinanced.

(Via ABC15.com.)

Wednesday, June 17, 2009

Technology tidbits

From the Technology Quarterly report in the June 6-12, 2009 issue of The Economist, a few articles of interest:

Thursday, May 07, 2009

Who's behind the financial meltdown?

The Center for Public Integrity, an organization I support, has just published the results of an investigation into the roots of the recent economic crisis and the major players involved:
The top subprime lenders whose loans are largely blamed for triggering the global economic meltdown were owned or backed by giant banks now collecting billions of dollars in bailout money — including several that have paid huge fines to settle predatory lending charges. The banks that funded the subprime industry were not victims of an unforeseen financial collapse, as they have sometimes portrayed themselves, but enablers that bankrolled the type of lending threatening the financial system.
...

According to the analysis:

  • At least 21 of the top 25 subprime lenders were financed by banks that received bailout money — through direct ownership, credit agreements, or huge purchases of loans for securitization.
  • Nine of the top 10 lenders were based in California, including all of the top five — Countrywide Financial Corp., Ameriquest Mortgage Co., New Century Financial Corp., First Franklin Corp., and Long Beach Mortgage Co.
  • Twenty of the top 25 subprime lenders have closed, stopped lending, or been sold to avoid bankruptcy. Most were non-bank lenders.
  • Eleven of the lenders on the list, including four recipients of bank bailout funds, have made payments to settle claims of widespread lending abuses.
Check out the full report.

Tuesday, April 28, 2009

Obama's $100M proposed budget cut, in perspective

A nice visual depiction of what it amounts to.



(Via The Agitator.)

Thursday, April 23, 2009

Nassim Taleb's ten principles for a black-swan-proof world

At the Financial Times (with more detail for each item):

1. What is fragile should break early while it is still small.

2. No socialisation of losses and privatisation of gains.

3. People who were driving a school bus blindfolded (and crashed it) should never be given a new bus.

4. Do not let someone making an “incentive” bonus manage a nuclear plant – or your financial risks.

5. Counter-balance complexity with simplicity.

6. Do not give children sticks of dynamite, even if they come with a warning .

7. Only Ponzi schemes should depend on confidence. Governments should never need to “restore confidence”.

8. Do not give an addict more drugs if he has withdrawal pains.

9. Citizens should not depend on financial assets or fallible “expert” advice for their retirement.

10. Make an omelette with the broken eggs.

(Via Will Wilkinson.)

The banker who said no

A banker who resisted the urge to invest in toxic assets during the boom is cleaning up during the bust. Andy Beal of Beal Bank in Plano, Texas "virtually stopped making or buying loans" from 2004 to 2007, leading people around him to think he was crazy. Now he's buying up loans at fire sale prices and has tripled his bank's assets to $7 billion in the last 15 months, and without government bailout money.

Beal is also known for high-stakes poker games against the top poker players in the world, in which he has lost more than he's won, but occasionally taken for a lot of money (including an $11 million win in one day).

Friday, March 20, 2009

Immigration and jobs

Despite the common concern that immigrants to the U.S. take jobs that would otherwise go to American citizens, immigrants actually create jobs and promote innovation. Two recent articles in The Economist look at this topic. In the March 7, 2009 issue, a study by Harvard economist William Kerr and University of Michigan economist William Lincoln looked at how patent production changes in response to changes in the number of H-1B visa holders, immigrants with technical skills. When the number of H-1B visas was increased by 10%, total patenting increased by 2%, caused mostly by patent activity by immigrants. However, rather than reducing the number of patents by the native population, those also increased.

In the March 14, 2009 issue's special report on entrepreneurship, it's noted that H-1B visas are capped at 85,000/year, and a maximum of 10,000 from any one country, increasing the wait for large countries such as India and China, where the wait time is about six years. There are over one million people waiting. This issue also notes that about half of Silicon Valley's startups are founded by immigrants, and about 25% of all U.S. science and technology startups have a CEO or CTO who is an immigrant, and these companies employ 450,000 people and generate $52 billion in annual revenue. A quarter of U.S. patent applications in 2006 name foreign nationals as inventors or co-inventors.

Sunday, March 01, 2009

Using the stimulus to accelerate the downturn

$10.1 billion in federal stimulus money has been released to the states by the Department of Housing and Urban Development, and Arizona is receiving more than $150 million of that. And what is that money to be used for, in a state where there are tens of thousands of homes for sale with few buyers (50,000+ in Maricopa county alone)?

Building more housing.

The Arizona Republic reports that
Millions of dollars more will go to state and local programs. That includes $32 million to begin construction of affordable rental housing, $22 million to prevent homelessness and $12 million to build or repair public housing across the state.
To the extent this money is used to build new homes, as opposed to repairing deteriorating ones, it's just going to accelerate the decline of home prices, putting more homeowners underwater and providing them with more incentive to walk away from their mortgages. Now, I think that a further decline in home prices is inevitable, no matter what the stimulus money tries to do, but it's ridiculous to throw additional money at accelerating that process. It makes about as much sense as using federal stimulus money to give grants to investment bankers to develop more complex collateralized debt obligations.

Now, this isn't actually quite that bad, since it does apparently focus on some particular communities--a third of the money is for Native American communities that didn't get a housing bubble of speculative buying. Some of it is also for families that need short-term help with utility bills, rent, or other expenses (something that the Modest Needs Foundation has been doing for years with private donations). And Tucson is apparently using it to improve energy efficiency of existing public housing units. Those are all much more reasonable uses of the money than building more houses.

Tuesday, February 17, 2009

Chase Bank makes stupid offers, and loses money by failing to live up to them

I recently wrote about how Chase Bank's inflexible systems just cost it money by not allowing me to make a $100 payment to my mortgage account to make up an erroneous underpayment. Instead, I had to make an entire additional payment, depriving them of a significant amount of future interest.

In January, I received an offer from Chase Bank to open a checking account with them, with a minimum deposit of $100. After I set up direct deposit, within ten business days of the first deposit they would deposit $125, which would be mine to keep so long as I left the account open and receiving direct deposits for at least six months.

I asked an online banker whether there was any minimum amount that had to be direct deposited, and was told no. I decided to set up the account in person at a branch near my office, and again asked whether there was any minimum direct deposit. The banker told me no, there was no minimum--if I wanted to deposit only $1 per paycheck, that would be fine.

As I have no interest in using Chase Bank as my primary bank--I'm quite happy with a regional bank that is one of the top-rated places to work in the country and has demonstrated reliability to me repeatedly over several decades--I decided to maximize my return on this otherwise non-interest-earning account by minimizing my deposits. My employer provides a convenient way for me to control my own direct deposits into up to three different banks, so I added a new direct deposit of $0.01 per paycheck into my new Chase Bank account.

The first $0.01 went in on January 15. On January 30, no $125 had been deposited, so I sent an online email inquiry asking when I could expect to see it. A response a couple days later told me I needed to call in to get an answer to my question, so I dialed the toll-free number, waited on hold, and finally got to a person who told me I needed to wait four to six weeks after the first direct deposit.

My second $0.01 went in on January 30. My third $0.01 went in on February 13. Still no $125.

Today, I got another $125 offer from Chase Bank, which prompted me to dig up my application materials and see that they promised my $125 would be deposited within ten business days, not four to six weeks. So I called and left a message for the banker at my branch, I sent another online inquiry asking whether Chase Bank is going to remedy its failure to honor its offer, and called in to the toll-free number again. I described the issue to my "telephone banker," and he asked for my account information. When he brought up my account, he asked if the $0.01 deposits were pre-authorizations for direct deposit, and I told him no, those are the deposits--I was told multiple times that there was no minimum deposit, and there is nothing in the written offer that mentions a minimum deposit. He was unable to solve the problem, and said he would have to send it to be researched, and I would hear back within a couple of days.

If they didn't want to honor the offer, they shouldn't have made it in the first place. By failing to live up to it, they're costing themselves even more money. It's surprising to me that this is probably the strongest of the major banks in the U.S., and the least likely of the majors to end up costing the U.S. Treasury money in the long run from the TARP's preferred investments ($25 billion put into Chase so far).

UPDATE (February 18, 2009): I received a voice mail from Chase Bank stating that the promised $125 will be deposited into my account within the next two weeks. My real-life banker left me a voice mail saying that the issue was that their system doesn't automatically count direct deposits for issuing an award if they are less than $1. So they do intend to honor their offer, it will just take longer since I used the system in a way they apparently didn't anticipate (or did anticipate with the same reasoning companies use with rebates).

UPDATE (February 25, 2009): My $125 was deposited yesterday.

Saturday, February 07, 2009

How Chase Bank's inflexibility is costing it money

My mortgage has been purchased by Chase Bank a couple of times (after the first time, I refinanced with another bank and then Chase bought my mortgage from them), and they're my current lender. I pay extra principal with every payment, usually about 30% more. For my February payment, I decided to reduce the extra principal a bit, for various reasons including keeping a bit more cash on hand in current economic conditions.

Unfortunately, I made a $100 error in my payment. Rather than paying an extra $40.37, I underpaid the monthly payment by $59.63. I learned my mistake when I received my mortgage statement, indicating that my entire payment was in "suspense funds received" and had not been applied to my mortgage at all.

I immediately called Chase. Even though it was an hour before their call center closed, I was unable to get to a human being. Instead, after being told I was being transferred to customer service, I got an automated message saying that my call could not by completed. I looked for online options for payment, but the Chase website referred me instead to their phone-based "FastPay" system. The "FastPay" system by phone charges a $15 fee (which the phone system says can be avoided by using the online payment system) and only allows making a full payment.

I tried again the next morning, and got through to Tonja, a customer service rep who told me that I could only make a full payment through the phone (not the $100 I wanted to pay), but said if I connected an external bank account online, I could make the payment that way, and as soon as the extra $100 was received, the payment would be applied as normal. I'm also well within the 15-day grace period for a payment, so I don't have to worry about late fees.

Online, I searched through some counter-intuitive menu options--within the mortgage account, payment options send you to the page about FastPay over the phone--I finally found that from the front page I could get to an option to connect an external account. I started the process, and learned that my bank could not be connected instantly by putting in my online banking authentication information, but had to use a method of verification where Chase puts two small deposits in my account and I come back later and input those amounts back to Chase to prove that it's my account (or at least that I have access to it). It then allowed me to attempt the instant verification method, despite its previous claim that my bank didn't accept it, but that failed (and I probably shouldn't have tried--Chase shouldn't have my authentication credentials to another bank). It then said it would take up to two business days for these deposits to go through.

The next day, my bank showed me that there were two pending deposits from Chase (yet another cost Chase is incurring), so I went back to the verification page and entered those amounts. Chase's website informed me that because those deposits had not been made yet, I was not allowed to verify the amounts yet. Dumb design. I tried again later in the evening, and my verification was accepted. Now I went to the page to make a payment, only to find that once again, the only option is to make an entire payment. Contrary to what Tonja told me, I cannot pay just an additional $100, because there is an outstanding payment that hasn't been made, and my $1100 sitting in "suspense funds" doesn't count and can't be used.

Well, I've got the money in savings, so I decided that if Chase is going to make things so difficult, I'm going to go ahead and make a full extra payment and deprive them of a little more interest over the life of my loan, in addition to the overhead costs they've incurred through this episode. The website told me it would take two business days to process, so it will be applied on February 11--still during the grace period. But now I still am not sure that the $1100 will be applied to principal reduction, so I called in again and spoke with Kim. I explained what has happened, and pointed out to her that Chase is losing money from its inflexibility, and she offered to move $100 from my January extra payment to February so that I could cancel the additional payment. I thanked her for the option (which I would have needed to take if I didn't have the money to spare), but declined, since that would result in an increase in interest. I asked if she could verify that the $1100 would be applied correctly, and she suggested that I call in again after I see online that the new payment is applied--which will incur yet further costs to Chase.

This is a nice demonstration of how an inflexible payment system doesn't deal well with partial payments can cost a company money and customer goodwill.

Sunday, February 01, 2009

Happiness, charity, religiosity, and liberals vs. conservatives

In a recent paper, Jamie Napier and John Jost argue that the reason conservatives are happier than liberals is that they are, for ideological reasons, not pained by observing high levels of income inequality. They draw this conclusion on the basis of responses to a survey item about attitudes about meritocracy that ranges from a scale of "hard work generally doesn't bring success--it's more a matter of luck" to "hard work pays," which Will Wilkinson shows cannot do the job of supporting their explanation:
I strongly agree that success, understood as a significant upward move on a valued status dimension, is largely a matter of luck. But I also strongly agree that hard work (in a society with decent institutions) usually brings a better life. It’s possible to work hard and achieve a better life without ever winning anything you’d count as success. So I haven’t a clue how I’d answer this question. Do I believe in meritocracy or not?
He observes that there's also a much better explanation for the answers to that question than assuming a blindness or lack of care about inequality:
If one wants to see a meritocratic bent as a common cause of conservative leanings and higher happiness, here’s a less tendentious explanation. (1) Those with a greater sense of the efficacy of their behavior — with a greater sense of being in control — will tend to (a) think hard work brings a better life, (b) be happier, (c) see policies that seem to penalize hard work as unjust. (2) People likely to see high taxes as an unjust penalty on hard work tend to identify as “conservative.”
And a further problem about attributing a blindness to inequality to conservatives is that conservatives give more to charity than liberals, as Wilkinson's commenter John Thacker points out (and I've previously observed at this blog). Thacker attributes the difference to religiosity; again, I've previously pointed out that he is apparently correct on this point (also see this post and the previous reference on conservatives vs. liberals), that the religious give far more to charity than the secular, even if you don't count donations to churches. (But apparently Christians are well-known in the service industry as lousy tippers.)

The same Napier and Jost paper is discussed at Marginal Revolution, where commenter DocMerlin points out that:

A rather simple answer follows with (A) and (B) being true statements that result in the same statistics without the rediculious "conservatives are happy with evil" result that the study got.
1)
A) Women are much more likely to self report depression and unhappiness than men are.
B) Men are more conservative than women.

2)
A) Divorced/unmarried women are on average more liberal than married women
B) Married people are happier.

3)
A) Conservatives are more likely to attend church regularly
B) People who attend church regularly are found to be happier and healthier than those who don't (on average).

4)
A) Liberals feel guilty for their own success.
B) Conservatives don't feel guilty for their own success.

Another possible explanation is that liberals and the secular value truth over happiness, but it seems to me that the Napier and Jost paper is an example of trying to explain away an unpalatable truth. It's better to dig deeper to understand the causes of these differences before offering public policy prescriptions (or even arguments for what is individually better to do). Wilkinson, who has done extensive review of the literature on happiness and proposed public policy prescriptions, seems to me to have the better psychological explanation for the happiness difference in terms of sense of control over outcomes. That explanation also comports well with a charitability difference--if you don't feel that your contribution could make much difference, you're probably less likely to make a contribution.

Tuesday, January 13, 2009

Job creation by president

The creation of jobs in the economy is neither the president's responsibility nor within his power to do anything other than influence through policy, but it's still interesting to look at the record of job creation under the last eleven presidents (Truman to Bush Jr.), as presented at Barry Ritholtz's blog (from the Wall Street Journal's Real Time Economics):

Saturday, December 27, 2008

Anchoring and credit card minimum payments

"Anchoring" is the psychological effect that, when presented with a sample number prior to being asked to estimate some quantity, people tend to stick closer to that sample number than they would if no number were mentioned, even if the number is completely irrelevant to what's being estimated.

A study by Neil Stewart at Warwick University suggests that minimum payment amounts on credit card bills cause people to pay less on their credit cards per month than they otherwise would, since the minimum payment tends to be extremely low. While it has no effect on those who intend to pay off the full monthly amount (the only reasonable way to use credit cards, in my opinion), Stewart's work suggests that those who pay less than the full amount pay 43% less on average than they would if no minimum payment were specified.

While this might be interpreted as counter to the intent of a minimum payment, I suspect it's exactly the intended effect from the credit card companies--to drag out payments over the longest possible time and accumulate the most interest.

Friday, December 19, 2008

Credit Suisse helps solve the toxic debt problem

In a fiendishly clever plan, Credit Suisse Group AG has found a way to reduce its exposure to toxic securities and transfer risk off its balance sheets--it's paying senior executives' bonuses with them.

Managing directors and directors, the two highest ranks at the Zurich-based company, will be paid year-end bonuses in its most illiquid loans and debt. Those assets will be transferred to a "Partner Asset Facility," and those directors will receive shares of ownership in the facility. Those assets will make semi-annual payments to the owners, with the full value only to be known as the assets mature or default.

Thursday, December 18, 2008

Bank slogans as signals to depositors

The traditional bank lobby, filled with expensive marble and and furnishings, is designed to signal to the customer that the bank is stable and isn't going anywhere.

Some recent failed banks have used advertising slogans also designed to inspire confidence, such as IndyMac's "you can count on us."

Others, however, should perhaps have been recognized as clues of impending problems:

Dexia: "The short term has no future."
Fortis: "Here today, where tomorrow?"
Countrywide: "[A] lender that actually finds ways to make loans."
Fannie Mae: "As the American dream grows, so do we."
Washington Mutual: "Whoo hoo!"

(Via The Economist, October 2, 2008.)

Thursday, December 04, 2008

Wal-Mart pricing on Jesus shirts


(Via FailBlog.)