Things are as messy as ever in the music streaming business yet most people are surprisingly determined in pushing forward. MySpace is now launching its Music service in the UK after being available in the US and recently in Australia and New Zealand. The free streaming service will offer millions of songs, though no exact figure was provided, and tens of thousands videos taking Spotify, which is very popular in the country, head on.

“The UK is renowned for its passionate and committed music fans, and MySpace has had a rich history with its artist community. Acts like Arctic Monkeys and Lily Allen embraced MySpace from the outset, and are now synonymous with the site. I’m thrilled to announce MySpace Music is now officially available to all artists and music fans in the UK,” MySpace Music president Courtney Hold writes.

MySpace Music will be completely free in the UK with an ad-supported revenue model. There will be ads in between songs as all the advertising will be on the site itself. Of course, this is true for most websites in the world so it’s not exactly surprising. However, Spotify, which will likely be its greatest competitor in the UK, does insert audio ads between tracks in the free version of the service so this may very well be MySpace’s biggest draw.

MySpace has support from … (read more)

An analyst report from RBS examines how investors are going absolutely bonkers for precious metal ETFs:

RBS: The strong price gains seen in November across the precious metals have brought with them fresh investor interest in the sector. At end November all four families of precious metal ETFs stood at record highs in both volume and value terms. But the net speculative long positions on COMEX/NYMEX also stand at near record levels for all of the precious metals.

Here’s the breakdown:

Gold ETF holdings rose by 24t (1%) in November to a record 1,762t. Holdings are up by 573t (48%) YTD. The value of gold ETF holdings rose by $8.5bn (15%) to a record $66.6bn as the gold price rose by $136/oz (13%). Total ETF value has increased by $34bn (101%) YTD. In euro terms the gold price rose by 11% mom as the US dollar finished the month 2% weaker against the euro. The euro value of gold holdings rose by 13% in November, ending the month at €44.5bn.

Silver ETF holdings rose by 787t (7%) in November to a record 11,882t. ETF value rose by $1bn (17%) as the silver price rose by 9% mom in US dollars and 8% in euros. YTD holdings have advanced by 3,628t (44%) and the value of holdings has increased by 142% in US dollars and 125% in euros.

Platinum ETF holdings rose by 1.7t (9%) in November to a record 20.4t and the value of holdings rose by 9% in US dollars and 7% in euros. YTD platinum holdings have advanced by 121% and their value has increased by 255% in US dollars and 231% in euros.

Palladium ETF holdings rose by 1.3t (4%) in November to a record 35.3t and their value advanced by 15% in US dollars and 14% in euros. YTD palladium holdings have risen by 72% and their value has increased by 237% in US dollars and 214% in euros.

Join the conversation about this story »

See Also:

• Here’s The Real Peak In Gold
• Interest Brews In The Other Yellow Metal: Uranium
• Chinese Metal Stockpiling Is Coming To An End

By Kirk Noble Bloodsworth

Forest Shomberg walked free from a Wisconsin prison last month after serving six years for a crime he did not commit. Thanks to post-conviction DNA testing and increasing awareness of the unreliability of eyewitness testimony, Dane County District Attorney Brian Blanchard announced that the county will not retry the case. Every time I hear about people like Forest, I have deeply mixed emotions. As the first death-row inmate to be exonerated by DNA evidence. I know firsthand what it is like to spend time in prison for a crime I did not commit.

Forest overcame the longest of odds to win his freedom in a system that was convinced of his guilt. Imagine the patience and persistence that took. Imagine the hardships he endured being isolated from friends and family. Imagine never knowing if the truth would come out. Somehow, Forest and his loved ones found the strength to persevere. For this I am extremely happy.

But exonerations like Forest’s are also deeply unsettling to me because they demonstrate the very serious problems confronting our criminal justice system. The fact is we still get it wrong far more often than we should. Some of the same errors that caused me to spend almost nine years in prison for a crime I did not commit also led to Forest’s wrongful conviction.

In both cases, an innocent man was arrested because he looked similar to a sketch compiled by police from eyewitness accounts. In both cases, an innocent man was convicted based on eyewitness testimony. And in both cases, an innocent man went to prison while the real perpetrator went unpunished.

Initially, the judge in the case did not let the defense present expert testimony about the unreliability of eyewitness identification. Only after post-conviction DNA testing revealed that Forest’s DNA did not match the DNA on the victim’s clothes did the powerful evidence about the factors that can lead witnesses to misidentify a perpetrator, including police sketches, seem to make a difference.

Fortunately, the State of Wisconsin has since developed model procedures for police sketches and conducting lineups. Like the recommendations in The Justice Project’s publication, Eyewitness Identification: A Policy Review, the Wisconsin Department of Justice recommends that sketches be used “cautiously, if at all,” and that police use sequential, rather than simultaneous, lineups and photo arrays. Because eyewitness misidentification is the leading cause of wrongful convictions, every state should enact these procedures to make sure that people like Forest and people like me do not have to endure the tragedy of being imprisoned for someone else’s crime.

We must take the necessary steps to prevent eyewitness misidentification. States can implement simple, common sense best practices to protect against eyewitness misidentifications. Forest Shomberg’s story and my own story are only two of the many cases of wrongful conviction based on eyewitness identification that prove such reforms are desperately needed.

A warm chewy bagel smeared with cream cheese is one of our absolute favorite treats in the whole wide world. This recipe from Healthy Bread in Five Minutes a Day by Jeff Hertzberg and Zoë François shows us how to make an easy and healthy version right at home!

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Luxury home builder Toll Brothers just reported their fourth quarter results today.

While they continued to lose money mostly due to inventory write-downs and other charges, they are becoming increasingly optimistic about the future housing market.

Why?

Because they’ve noticed that their key customers, wealthy Americans, are doing just fine, and have a very bright future.

They also say houses are more affordable than they’ve been in a very long time. So perhaps it’s time you upgraded your life with one of their latest models…

Check out why selling McMansions is awesome business right now >>>

Join the conversation about this story »

See Also:

• Toll Brothers: Look, McMansions Are More Affordable Than Ever (TOL)
• California Housing Market Continues To Recover, Befuddling Bears
• McMansion Living Comes To Iraq

On this day, 15 years ago, the Japanese saw the launch of the first PlayStation. Ahh yes, December 3rd, 1994, huge day for gaming. While the younger generation wouldn’t know how gaming was back then, there was a time when all

Bristol, Acre Resources

Sustain are an integrated sustainability solutions provider strategically focused on solving the energy carbon equation. Our goal is to design, develop and deliver the solutions that will meet our clients’ needs as we help them on their journey towards a sustainable future.
With expertise across the sustainability space and by employing a partnership approach, Sustain are able to offer their clients an integrated solution to carbon management.

As a Project Manager you will play an instrumental role in the ongoing delivery of innovative carbon reduction programmes. Primarily you will deliver Project Management services and administer Community Energy Saving Programmes (CESP) across the UK, monitoring and reporting on project progress. In addition you will be expected to:

– Project manage the installation of energy efficiency measures and low carbon technologies
– Liaise with the client and project team to set the project scope, ensuring delivery on time and within budget
– Monitor and report on project progress. Identifying any potential issues that arise during the project process and deal with these in a timely and efficient manner
– Develop and maintain strong working relationships with clients/stakeholders in the public and private sector
– Compile financial and progress reports for internal and external publication
– Coordinating the activity of subcontractors

The successful candidate will have a proven track record of managing complex, multi-stakeholder projects. Further skills and experience required:

– Project management experience, ideally within the sustainability or built environment sectors
– Experience balancing conflicting priorities and delivering projects to customers on time and within budget.
– Excellent communication and influencing skills
– Being a qualified Prince 2 Practitioner (or having a similar qualification) would be a distinct advantage
– Relevant degree (or equivalent) in the environmental or built environment sectors is desirable
– Evidence of a strong commitment to environmental and social causes of concern

If you have a background in Project Management and are as passionate about the environment as we are, have energy to succeed and a real ‘can do’ attitude then please apply today or contact James Hobbs on +44(0) 203 008 4699 for further information.

Sustain have engaged Acre, their preferred recruitment partner, to manage the recruitment of their Project Manager.
 

Filed under: Car Buying, Lexus, Toyota

According to the experts-of-such-things at Kelley Blue Book, the average vehicle will only retain about 35 percent of its original value after the initial five-year ownership period, often making depreciation the greatest expense incurred by drivers over that time period. That’s a hefty chunk of change to be sure, so a vehicle’s anticipated resale value should be of prime concern when shopping for your next car or truck.

Since 2003, KBB has published its Best Resale Value Awards, which seek to inform consumers of projected resale value for any particular model after five years and 75,000 miles worth of service. Considering its historic reputation for quality, it comes as little surprise that Toyota takes home the trophy as the brand with the best projected resale value and that its subsidiary Lexus grabs the award in the luxury category. We have to wonder, though, how the company’s many current woes might damage its perceived value down the line.

Making up the Top 10 Models for 2010 are the Audi A5, BMW M3, Chevrolet Corvette and Camaro SS, Honda CR-V, Mini Cooper and Clubman along with the Prius, RAV4 and Tacoma from Toyota. See here for a more comprehensive list and make the jump for the official press release.

[Source: KBB]

Continue reading Toyota tops Kelley Blue Book best resale value awards

Toyota tops Kelley Blue Book best resale value awards originally appeared on Autoblog on Thu, 03 Dec 2009 07:58:00 EST. Please see our terms for use of feeds.

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The earlier you light up your cigarettes, the higher the levels of cotinine, a by-product of nicotine you’ll have in your blood, regardless of how many cigarettes you have throughout the day, say the results of a study recently published in the journal Cancer Epidemiology, Biomarkers & Prevention.

Researchers looked at 252 healthy people daily cigarette smokers, with an emphasis on their urges to smoke and when they lit up their first cigarette of the day. The researchers then measured the cotinine levels in the smokers’ blood. what they found was that that the range was extremely variable – from between 16 ng/mL (mostly among smokers who waited at least a half hour before the first cigarette) to 1180 ng/mL (mostly among smokers who lit up not long after waking).

It’s not yet understood why this happens, but researchers may now be able to use this information to work on various approaches to smoking cessation tools and techniques.

~~~

Image: PhotoXpress.com

Post from: Blisstree

Early A.M. Cigs Mean More Poison in Body

Ideally, you want to fund yourself in a currency that’s going down, so that when it comes time to pay back your lender, you’re giving back less money than you borrowed. It’s the essence of the carry trade, and it’s why many believe that the relentlessly declining dollar is the basis for a new, bubble-making carry trade.

The old standby, the Japanese Yen, has been a disaster, as it’s surged to a 14-year high.

But Morgan Stanley is giving the greenlight to start borrowing in yen:

We have been yen bulls for an extended period. Now that we have reached our long-standing target of ¥85, we think that the risk-reward for holding long JPY positions is less interesting. Indeed, there are a number of factors which suggest that it’s a good time to book some profit in USD shorts and begin to use the JPY as the funding currency. 

The roadmap for the 2009 FX market can easily be captured by the “punish the printer” theme. The most aggressive printers, namely the US and UK, have seen their currencies underperform, particularly against those currencies where the risk of printing was always close tozero — namely Australia, New Zealand and most EM countries such as Brazil. This theme has pushedv aluations to an extreme in most cases.

While the UK and US still have issues with respect to successfully reversing their balance-sheet expansion, and for that reason we still think the dollar and sterling will struggle to fully reverse this year’s losses until it is clear they can successfully exit their QE programs, the level of the yen on a relative basis suggests to us that it is a good time to substitute some dollar shorts for yen
shorts. Playing a reversal of the “punish the printer” theme is perhaps one of the biggest currency
opportunities available in 2010, and we will continue to monitor it accordingly.

As can be seen in Exhibit 1, a basket of long USD and GBP against EUR and JPY is at fairly interesting levels for those inclined to fade the heavily populated “punish the printer” theme amongst the world’s four most liquid currencies. If we are right about USD/JPY, then this could start to turn now, especially as the EUR is around 30% expensive against both sterling and the dollar.

Why do we think USD/JPY is close to a bottom?

We think that Japanese authorities will want to resist yen strength around the ¥85 area, given that a break of this level sets up a test of all-time lows in USD/JPY around ¥80. Japan has not intervened in the currency market since 16 March 2004, not resisting the recent bout of dollar weakness. And despite risks to the domestic economy from the strong currency, they have kept to the spirit of the G20’s desire to deal with global imbalances. This has also been at a time when China’s renminbi has
been linked to a very weak dollar. Japan has been a good global citizen, but after this week’s surprise
announcement of further liquidity measures by the Bank of Japan, it is perhaps an early indication that they are getting increasingly concerned about their economic prospects at a time when other central banks are thinking more about their exit strategies.

This might also imply that if the yen were to strengthen further the probability of intervention would rise quite sharply.  Coordinated intervention cannot be ruled out either, given that Federal Reserve Chairman Bernanke has recently talked about a strong dollar being a source of global stability and that the Fed is attentive to the implications of changes in the value of the dollar and will formulate policy to guard against risks to their dual mandate. The recent Fed minutes also referred to the link between the dollar and inflation. There are many countries which are currently unhappy with dollar
weakness (strength in their own currencies) or the low level of the federal funds rate such as the Eurozone, Canada, New Zealand, Switzerland, Brazil, Hong Kong, China and other Asian countries. A general stabilization of the dollar would suit everyone’s needs and help to contain any inflationary pressure in the US.

Source: Morgan Stanley: FX Impulse: Time to fund in Yen instead of Dollars?

Join the conversation about this story »

See Also:

• The Nikkei Explodes 3.8% Higher
• The Nikkei Is Perfectly Aligned With The S&P 500 As Measured In Gold
• With Dollar At 14-Year Low Against Yen, Japan Raises Hints Of Dramatic Intervention

Google is plowing ahead with Street View despite all the opposition from several concerned parties and it’s a good thing too, the feature is quickly becoming a huge repository as more and more cities and countries are added to the list. The program just got a huge boost with a bunch of new locations added in one fell swoop, fun places like SeaWorld and other theme parks, Stonehenge, nine new cities in Canada and an entire country, Singapore, which we covered yesterday.

“Today’s update to Street View is a whale of a launch — literally! We’ve added imagery gathered by our Trike for several special attractions we’ve partnered with in the United States, including the SeaWorld parks. Of course, that includes photos of SeaWorld’s biggest star, Shamu,” Julie Sohn from Content Partnerships Team at Street View wrote.

Continuing in the same line as Google’s cheesy play-on-words, the new SeaWorld photos are bound to make a big splash – literally. Virtual visitors will be able to move around the parks and even view the dolphins in mid air. Three SeaWorld locations are now available in Street View, but they’re not the only theme parks to be added. Images from Hersheypark in Pennsylvania were also part of the update and rollercoaster enthusiasts can check out all the rides before actually v… (read more)

Stocks have jumped about 70% from the March lows.  As we’ve noted, they have also blasted past most estimates of fair value, which are generally around 900 on the S&P 500 on a cyclically-adjusted price-earnings ratio (see professor Robert Shiller’s chart below),

London economist Andrew Smithers says valuations are even more extreme.  In a recent interview with Kate Welling of Weeden & Co., he put the overvaluation at 40%:

Would you mind running through how you arrive at that 40% overpriced valuation?

Certainly. The EPS on the S&P 500 for the 12 months to June 20, 2009 were $7.51, making the P/E with the index at 1073 (when I ran the numbers on Oct. 13) 143, which was 10 times the long-term average P/E, using data which start in 1871.

Which superficially sounds like a lot more than 40% overvalued —

Yes, but that doesn’t mean the market is horribly expensive, because profits have recently been
quite depressed. Equally of course, though this point is often ignored, claims that the market is selling at some low future multiple would not show that the market today is cheap.

In order to assess value, it is necessary either to calculate the level at which the EPS would be if profits were neither depressed nor elevated, or to use a metric of value which does not depend on profits. The cyclically adjusted P/E (CAPE) normalizes EPS by averaging them over 10 years [See chart above]. It thus follows the first of those two possible methods. Using even longer time periods has advantages, particularly as EPS have been exceptionally volatile in recent years —and using longer time periods raises the current measured degree of overvaluation.

The other methodology we use measures stock market value without reference to profits: the q ratio. It
compares the market capitalization of companies with their net worth, also adjusted to current
prices. The validity of both of these approaches can be tested and is robust under testing —and they produce results that agree. Currently, both q and CAPE are saying that the U.S. stock market is
about 40% overvalued.

Of course, today’s overvaluation doesn’t tell you much about what stocks will do next week, next year, or even the next 5-10 years.  As the chart above shows, before the 2007 market crash, stocks were overvalued for the better part of 20 years–and observing that didn’t help you make money.  On the contrary, it usually got you fired.

What today’s valuation does suggest is that stocks are priced to return a bit less than average over the next decade, perhaps 3% real per year (inflation adjusted), as compared to the 6%-7% average.

Today’s valuations also suggest that stocks may have gotten way ahead of themselves, especially in light of the structural problems that will continue to bog down the economy.

As the chart above illustrates, every one of the prior mega-busts in the past century has been followed by a “trough” in which the cyclically adjusted PE ratio hit the high single-digits.  We didn’t quite make it there in March (the P/E bottomed around 12X), although we did get close.

This, combined with what is likely to be a decade of deleveraging, consumer retrenchment, and sluggish growth as we work off our debt binge, suggests that we still yet might hit that single-digit low before we take off on another secular bull market again.  This could be achieved either through another market crash, or a prolonged period of backing and filling as earnings growth gradually reduces the long-term PE ratio (this is what happened in the 1970s).

On the other hand, it is possible that that enormous stimulus and zero interest rates over the past two years will produce that “v-shaped” recovery.   At this point, given the extent of the recent rally, it would presumably have to be one heck of a “V” to send stocks soaring from here.  But the last eight months have already made idiots out of almost everyone.

See: The Stock Market Rally That Turned Gurus Into Fools

Join the conversation about this story »

See Also:

• Stocks Back To Fair Value!
• DOW 5000, Revisited
• The Idiot-Maker Rally

In between gorging on caramels and sugary holiday cookies, it’s nice to have one or two treats that veer toward the other end of the spectrum. These pfeffernusse cookies with candied citrus peel and a dash of pepper fit the bill quite nicely!

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Luxury home builder Toll Brothers (TOL) reported a fourth quarter loss of $111.4 million ($0.68 per share) today.

This net loss was worse than the -$0.46 analysts expected and the -$0.49 reported a year ago. Excluding inventory write-downs and a costs for the early retirement of debt they almost broke even, losing just $9.6 million in the quarter.

Yet despite the worse than expected loss, Toll made it clear that they felt the housing bottom was past, and highlighted that housing affordability was now better than it has been in a very long time. The problem is just that people have far less to spend these days, especially when it comes to buying a luxury property from Toll.

Toll CEO Robert Toll: Recent news reports indicate that one in four Americans have mortgages that exceed the value of their homes, which restricts their ability to sell and move to another home. On the other hand, affordability hovers near an all-time high, mortgage rates are near historic lows, and home prices, although down to 2003 levels, have improved sequentially over the past two quarters according to the most recent S&P/Case-Shiller Home Price Index. And although the volume of home sales continues to be near record lows, inventories of unsold homes are declining nationally.

Toll is getting more aggressive, and confident, against its competition as well.

“In the past few months, we have been seeing and competing for a greater number of attractive land acquisition opportunities from financial institutions and other sellers. With our strong cash position, our record low net-debt-to-capital ratio and our demonstrated access to liquidity, we believe we can take advantage of opportunities that arise from the current state of distress in our industry.

“As has happened in previous downturns, we believe there will be further consolidation in our industry. Many of the small- and mid-sized private builders, who historically have been our primary competitors in the luxury niche, are facing serious capital constraints, among other problems, and are either hobbled or no longer in business.

See their full earnings release here.

Join the conversation about this story »

See Also:

• California Housing Market Continues To Recover, Befuddling Bears
• Latest Facts About The State Of The Housing Market
• Today’s Housing Numbers Do Not Tell Us Anything About The Economy

We all love to take a long, refreshing shower to begin the day or even to end a long, tiring day. While showering is a great option to get fresh, it uses up quite a lot of water. So, we now have eco-friendly showers that can actually refresh you while saving a lot of water. In this feature, we bring you 10 of these. (more…)

Beauty

"Though we travel the world over to find the beautiful,  we must carry it with us or we find it not." ~ Ralph Waldo Emerson

Preface:  Random Acts of Kick Arse is a movement to bring more of {monthly theme} into our lives, and the lives of those around us. 

October Theme:  Beauty.  Find ways to incorporate/see more beauty in the world.

The Results:  Beauty.  What would it look like?  How could I both see more beauty in my world, and possibly even bring a little more at the same time?  Would I be more aware of what and who I was surrounded by?  Beauty, it seemed, was perplexing for me.  And then I happened to hear an old Beatles song:

"…speaking words of wisdom, let it be."

And so I did…I just "let it be".

November unfolded beautifully.  There was much beauty in the whole month.  I experienced this daily, and my life was touched in some wonderful ways.  Today, I'll highlight one of those.

Strangers.  To friends. 

Deep beauty in what can really develop in such a short period of time.

I spent a week of my November at a leadership and self-awareness workshop in North Carolina.  Myself and six strangers coming together, to grow in ways we weren't really sure about – and all led by our wonderful leader Holly (not pictured). 

Picture with me walking into a small room and not knowing anyone.  Then transition that with leaving that same room, feeling completely comfortable telling this same group of people anything.  And trusting them to be there, to support you on your journey.  Five days.  Late nights.  Lots of coffee (or tea!).  And desserts!  A developing bond, a connection that touched upon the soul…the soul of everyone there.  A sharing of thoughts freely and openly.  Courageous steps for everyone, and constant love and support along the way. 

I arrived back from this workshop with new life.  Beliefs in what CAN be.  A belief that all is possible, and that there are people out there who care deeply.  People who were strangers to me just three short weeks ago.  So, to each of you there with me that week, if you are reading this…thank you.  Thank you for shining your beauty into my life.

And to all of you reading here…there is so much beauty just in your presence.  You…taking the time from your busy schedule to read these words here.

There can be beauty in so many moments of our life, if we can carry that beauty within us first…

Beauty.

You.  Me.  Our world.

What is Random Acts of Kick Arse (RAOKA)?  With the idea that there are so many ways we can do small things to change the world for good, Sami, from Life, Laughs, and Lemmings took an idea she had and created this movement.  The movement:  A new theme to focus on each month, bringing a little more good to the world.  The movement started in October 2009, with a core group of participants:

Melissa from Operation NICE
Lori from Jane Be Nimble
Dani from Positively Present
Brandi from Joy Rebel
Zeenat from Positive Provocations
Sami from Life, Laughs, and Lemmings

Each month a topic will be chosen to focus on, and then at the start of the next month, the participants will write about their experiences from the previous month.

Interested in joining the movement?  Contact Sami for details.

December Theme:  Wackiness (as chosen by me!)

Logo courtesy of Melissa from Operation NICE

Craigslist and eBay are heading for all-out war as the two companies are preparing to fight it out in a lawsuit filed by the auctions site set to begin next Monday. The lawsuit is the culmination of a tense relationship between the two companies which has been going for more than five years now. eBay owns a minority stake in the privately-held Craigslist, the reason behind the dispute. The company is also saying that it plans to expand its classified offerings with acquisitions or partnerships in several countries.

eBay bought a stake in Craigslist in 2004 from one of the original investors, initially owning a 28.4 percent slice of the company. Despite initial claims that it would focus on Craigslist in the classified ads market, it later launched a competitor to the site, Kijiji, using inside knowledge it gained as a shareholder at Craigslist, the classifieds company says. This is the object of another lawsuit filed by Craigslist for unfair competition and other claims.

In 2007, after the launch of Kijiji in the US, Craigslist diluted eBay’s stake in the company to just 24.85 percent, losing its seat on the board in the process, a move which eBay claims was made using various illegal tactics. It filed a lawsuit as a consequence and, after two delays, the legal proceedings are about to s… (read more)

Deutsche Bank is out with an outlook for 2010, which includes various themes and risks investors need to watch out for.

The basic idea, laid out by strategists Jim Reid, Mahesh Bhimalingem, and others is that things look good in the beginning of the year, but that trouble spots loom on the horizon.

One in particular they highlight is the possibility of a sovereign default, an issue that’s come to the foreground since Dubai.

They write:

Although we’re positive in the near-term, looking at the world today it’s clear that
the current macro environment will be difficult to sustain. The markets will need
evidence in 2010 that there is an observable path back to fiscal discipline for those
countries that have been most aggressive in responding to the fall-out from this
crisis. If not we continue to run the risk of Sovereign land mines disturbing the
benign corporate landscape. 

Indeed if 2010 is a difficult year it’s highly unlikely that the catalyst comes from
within the equity or corporate credit markets. This means the macro environment
will decide 2010, and in reality investors in Sovereign debt around the world will
probably decide the fate of risk assets. In late 08/09 the authorities had little to
lose in aggressively attempting to stave off a Depressionary cycle. So far they
deserve extremely high marks. However 2010 could be a transitional year
between heavy intervention and the paying of the bills. A return to positive global
growth should help but we would expect more volatility in 2010 than in H2 2009.

Now, see the rest of their worries >>

Join the conversation about this story »

See Also:

• Morgan Stanley: Here Comes A Brutal 2010

There are a few countries out there that have “artist resale rights,” which make little sense and do a lot more to harm artists than help them. Earlier this year, we wrote about plans for Australia to implement such a right and Michael Scott alerts us to the news that a watered down version of the plan is moving forward. If you’re unfamiliar with it, the concept is that even after an artist has sold a piece of artwork, such as a painting, if the owners later decide to sell it, they must give back a percentage of the sale price to the original artist. The (faulty) thinking on this is that poor, starving artists sell their paintings or sculptures or whatever for next to nothing, and it’s only later, when they’re famous, that they’re actually worth anything — but the artist will never get a cut of that value.

Of course, that’s not true. In reality, if those earlier works are so valuable, so are many newer works as well — which the artist can create and sell for much more than ever before. Meanwhile, the problem with an artist resale right is it actually decreases the incentive for anyone to buy the original artwork, knowing that they’ll have to sell it for that much more before they can actually make a profit — since they’ll have to kick back fees to the artists. It adds an unnecessary tax that acts as friction in the art market. The Australian plan tries to limit at least some of this issue by only having the resale tax kick in after the second resale. But, of course, this just moves the unnecessary friction up a level, and doesn’t change the thought process that goes into the buying decision. With any other product, once you sell it, you’ve sold it. It makes no sense to allow the original creator to retain a cut of any later sale. Imagine if that were the case with cars or houses as well? Who would ever think that was reasonable?

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