Blog

  • Forget The Euro, The Stock Market Has A New Obsession

    chart

    There’s a reason we keep highlighting bank credit indicators like the TED spread. They’re on the march (widening every day), and it’s becoming obvious that the stock market is taking its marching from it.

    As BTIG’s Mike O’Rourke observes:

    The key focus for many equity investors was the widening of swap spreads across the board.  Whether one looks at the 2 year swap spread, the TED spread, Libor-OIS and so on, they all continue to move in the same direction – wider.  The bottom line is that equity investors will continue to remain tentative until some level of stability emerges among these spreads.  Market participants are accustomed to watching the S&P 500 chase the Euro around all day and now, a new trend is emerging.  Today the S&P 500 Financials traded inversely to the 2 year swap spread.  As usual, the market sees a trend and exploits it until it reverses.  This type of market behavior leans more towards  the category of speculating than it does investing. 

    In theory this ends when market participants become more comfortable with banking health. In practice, signs like that which we got out of Spain today don’t look like what we get when a crisis is abating.

    Join the conversation about this story »

    See Also:

  • Paul Gray Dead- No More Slipknot Bass Player: Farewell Slipknot Bassist!

    Slipknot bassist Paul Gray dead! The Slipknot Bass player passed away last May 24. The Slipknot bassist was found no longer breathing in a suburban Iowa hotel room. The cause of death is not yet revealed. However, police’ initial investigation sees no foul play on the incident.

    Slipknot bassist Paul Gray is also known as number #2, or “The Pig”. Slipknot bassist Paul Gray is an American musician popularly known as the bassist of the Grammy Award winning rock band Slipknot.



    Paul Gray has good bonding with his Slipknot bandmates and also with their fans. The Slipknot bassist has stated on MTV News in 2008, just before the release of Slipknot’s most recent album, All Hope Is Gone.

    “It makes you kind of speechless, man. Some kid who’s so depressed or things are going so bad for them that they actually want to take their own lives, and then they listen to a Slipknot lyric or a song … and that actually gets them through that? I mean, what can you say?” Gray said. “I’m just happy that we’re able to do something and actually touch somebody like that, where they do feel empowered to keep pushing on and keep going through what they’re going through, and surviving. It’s an overwhelming feeling.”

    Farewell Slipknot bassist Paul Gray!

    Related posts:

    1. Live Streaming UFC 113 Josh Koscheck Vs Paul Daley
    2. Study Reveals That Husbands Can Also Experience Postpartum Depression
    3. Shrek to be Released in 3D

  • US Futures Still Heading Down, Nikkei Dives 2.2%

    Asia picks up the baton that the US handed off in the final minutes of trading.

    Here’s the Nikkei. It’s now down over 2%.

    chart

    Us futures are off significantly. Dow futures are off nearly triple digits.

    Meanwhile the euro is holding $1.23 by the skin of its teeth.

    For a wrapup of the US market action, see here.

    Join the conversation about this story »

  • Spy Shots: 2011 Volkswagen Jetta caught nearly uncovered

    Filed under: , ,

    2011 Volkswagen Jetta – Click above for high-res image gallery

    A cameraphone-wielding member of GMInsideNews has caught what looks to be a pair of Volkswagen prototypes in Michigan, and while it’s hard to tell the full extent of the changes or the size of the sedans, he appears to have snagged the next-generation Jetta undergoing testing.

    Even with the Ford Fusion and Chrysler minivan providing a bit of scale, it’s hard to pin down the dimensions of the prototypes. However, we’re more inclined to assume that the VWs are the refreshed Jetta, particularly based on the roofline, greenhouse and overhangs, as well as the previously released official renderings of the forthcoming 2011 NMS, which looks markedly more assertive than what we see here.

    While the odd Toyota-like badge on the boot is a nice touch, don’t expect that element to make it to production. Instead, the 2011 Jetta will finally replace the current model’s ovoid headlamps with the more angular, aggressive units found on the refreshed Golf and GTI. Out back, the trunk benefits from a subtle lift and tuck, with new rectangular taillamps and slightly blistered fenders finishing off the refresh. Assuming our product cycle prediction hats are on straight, we can expect to see the new Jetta in person later this year, with sales beginning in early 2011.

    [Source: GMI]

    Spy Shots: 2011 Volkswagen Jetta caught nearly uncovered originally appeared on Autoblog on Mon, 24 May 2010 20:26:00 EST. Please see our terms for use of feeds.

    Permalink | Email this | Comments

  • Moon Boulder Scores Three Points [Space]

    See that trail? That’s what a big-as-a-house boulder does while falling into a 60-meter-wide crater on the Moon. Why? NASA said that maybe it was an earthquake. Or micro-asteroids impacts. I’m going to blame the the Moon Nazis. [NASA] More »










    NASAMoonSpaceEarthTechnology

  • Gowalla Android App Ugraded With Commenting, Photo Sharing, and Social Network Integration

    Gowalla is really raising their game lately. The latest version of their Android app, labeled Gowalla 2.0, is now available in the Android Market and takes it up a notch towards Foursquare.  Overall, the 2.0 app has many new features including:

    • Sharing and viewing photos attached to a location
    • Comment on posts
    • View bookmarked Spots
    • View Facebook/Twitter profiles
    • Accept or reject friend requests
    • View more of your friends’ Passport info

    In addition to the new features, Gowalla 2.0 also has some core improvements to it’s design. The app perform tasks faster than you have previously experienced. It is very very fast, even on 2G.  Along with the new features, Gowalla should provide a better experience for users.  Personally I really enjoy using it to locate friends and places to spend time.  It’s good fun.

    If you want to check out Gowalla 2.0 and I recommend you do, head on over to the Android Market and search “Gowalla.”

    Let us know what you think!

    Source: Gowalla

    Might We Suggest…

    • Android Screenshots: No Root Required with EVO
      We’re not sure if this is a bug that will get fixed, an easter egg, or what, but when we heard reports of unrooted EVO users being able to use the screen capture app ShootMe, we had to test it out ou…


  • Simmon to make announcement “on the future of the Senate campaign” tomorrow

    The Simmons campaign has called a press conference for 9 a.m. in New London. Spokesman Raj Shah won’t say what the topic will be. “I’m on a tight leash on this one,” he said by phone tonight. But he promised it will be “newsworthy.”

  • Subaru Legacy tem preço revelado

    mercado

    A marca começou a oferecer a nova geração do Legacy no mercado brasileiro. Além disso, o modelo é oferecido em três versões.

    A versão mais barata é equipada com um motor de 2.0 litros que rende 170 cavalos de potencia e custa R$ 110 mil.

    Já a versão top de linha, é equipada com tração integral e motor de 3.6 litros de seis cilindros que rende 280 cavalos de potencia e custa R$ 165 mil.

    A versão top de linha também conta com controle de estabilidade, bancos de couro, faróis de xenônio e teto solar.

    Mas o que chama a atenção no modelo é sua traseira que se parece bastante com a traseira do Honda New Civic.

    Fonte: Auto Esporte


  • Breakthrough Announced on ‘Don’t Ask, Don’t Tell’

    In the culmination of today’s big push from activists to repeal “Don’t Ask, Don’t Tell,” the White House budget director, Peter Orszag, has written a (rather reluctant) letter to Rep. Patrick Murphy (D-Penn.) and Sen. Joe Lieberman (I-Conn.) to say that the Obama administration “supports [their] proposed amendment” to next year’s defense bill scrapping the 17-year old ban on open gay military service.

    That clears the way for Lieberman to insert his amendment into the bill during the Senate Armed Services Committee’s mark-up on Wednesday. Murphy will do the same when the bill’s House counterpart goes up for a floor vote later this week. Their basic legislative fix: repeal the “Don’t Ask, Don’t Tell” in the legal sense, but allow the Defense Department to formally implement repeal after Secretary of Defense Robert Gates’ working group on repeal issues its report in December. That working group, chaired by Army Gen. Carter Ham and Pentagon General Counsel Jeh Johnson, is soliciting opinion from around the uniformed military about how the details of repeal ought to work.

    LGBT-rights groups are pretty much over the moon. A representative press release:

    “This announcement from the White House today is long awaited, much needed, and immensely helpful as we enter a critical phase of the battle to repeal the ‘Don’t Ask, Don’t Tell’ law,” said Alexander Nicholson, Executive Director of Servicemembers United and a former U.S. Army interrogator who was discharged under “Don’t Ask, Don’t Tell.” “We have been making the case to White House staff for more than a year now that delayed implementation is realistic, politically viable, and the only way to get the defense community on board with repeal, and we are glad to see the community and now the administration and defense leadership finally rally around this option.”

  • LeBron Update: James LeBron’s Goodbye Cavaliers, Obama plead on Bulls’ behalf!

    James LeBron Update: Lebron’s goodbye or possible farewell to Cleveland Cavaliers has resulted to various appeals. President Barack Obama pleaded LeBron James on Chicago Bulls’ behalf. Cleveland Cavaliers forward-LeBron James will become a free agent on July… a possible LeBron’s goodbye scenario to his teammates. From this fact, President Obama has told the media that LeBron James should join the Chicago Bulls, his favorite NBA team.

    As part of LeBron update, Obama appealed when James is deciding whether to go to another team or stay with the Cleveland Cavaliers after they were knocked out of the playoffs in the second round.

    In an interview with broadcaster Marv Albert, Obama has stated that James would fit well with the Chicago Bulls players. Albert met with Obama on the renovated White House basketball court on Friday.



    Cleveland Mayor Frank Jackson, had a playful statement of his own last Monday: “I think the White House would look good in Cleveland. He [Obama] would fit well in Cleveland. It would be nice.”

    Basketball is the president’s best game and seems to have a special reverence for LeBron James. How LeBron’s goodbye to Cavaliers will affect LeBron James’ fans and the whole NBA fans?

    Related posts:

    1. What’s Next For Lebron?
    2. MVP – LeBron James
    3. Truth Behind Lebron James’ Mom and Delonte West Affair

  • Mexico vs England in Wembley, 3-1 England victory

    Mexico vs England in Wembley, 3-1 England victory Mexico failed in its first big test and lost to England with a score of 3-1 at the Wembley Stadium in England. It was a friendly match which was used to measure the fitness of both teams for the soccer World Cup 2010, South Africa.

    Despite the large lead on the scoreboard, England showed the same superiority in the game.

    The meeting, held at Wembley Stadium in London, Mexico was the first dispute in Europe as part of the last phase of preparation for the World Cup where they will play the June 11 opening game against host of South Africa.

    Meanwhile, for England was the last at home before his debut against the United States on 12 June.

    England players: Green (Joe Hart, 46 ‘), Johnson, Ferdinand (Jamie Carragher, 46′), King, Baines, Milner (Adam Johnson, 84 ‘), Gerrard, Carrick (Tom Huddlestone, 62′), Walcott (Lennon Aaron , 76 ‘), Rooney, Crouch (Jermain Defoe 46′). Fabio Capello DT

    Mexico players: Perez, Aguilar (Pablo Barrera, 51 ‘), Osorio, Francisco Rodriguez, Salcido, Torrado, Marquez, Juarez Giovani Dos Santos (Cuauhtemoc Blanco, 72′), Vela (Andres Guardado, 62 ‘); Franco. DT Javier Aguirre

    Goals: 1-0 .- Ledley King (16 ‘), 2-0.-Peter Crouch (34′), 2-Guillermo Franco 1.-(45 ‘), 3-1 .- Glen Johnson (46′)

    Related posts:

    1. Englands won over Mexico, FIFA South Africa 2010
    2. Watch England Mexico Friendly Match World Cup 2010 Highlights
    3. FIFA Is Still Elusive For Mexico

  • Announcing the Structure 2010 Launchpad Finalists!

    Vishal Sikka (SAP) joins Stacey onstage at Structure 2009.

    I can’t open my email these days without seeing a new cloud-based startup pitch (or three). Meanwhile, startups offering everything from platforms as a service to various ways to bridge hybrid clouds are raising venture capital (GigaOM Pro, sub req’d) after a fairly fallow period for investment, and large buyers are scooping up more mature startups left and right. Which is why this year at Structure 2010, we’re adding a new feature: the Launchpad.

    Veteran attendees to GigaOM events will recognize the format from our Mobilize conference and our green IT-focused Green:Net as the session when startups launch — or launch their products or services — to a room full of VCs, industry players and financial press. Two awards will be given: an audience choice award (determined by SMS voting) and a judges’ selection.

    So after much deliberation and consideration, today we announce our Launchpad 11. It was meant to be 10, but we had such a hard time choosing, we just increased the finalists to 11. They are:

    • Benguela – A stealth-mode startup founded by Amazon EC2 veterans.
    • Cloudant – Provider of MapReduce-based data management for enterprises, including analytics and search.
    • Cloudswitch – Maker of software to connect private clouds to public clouds.
    • Datameer – Offers the ability to organize big data using Hadoop through a spreadsheet interface.
    • Greenqloud – Provides completely carbon-neutral cloud infrastructure with commodity gear.
    • GridCentric – Turns your compute farm into a high-performance, private cloud in seconds.
    • nephosity – Allows non-programmers to allocate tasks and workflows on the cloud.
    • Northscale – Provides a simple, fast, schema-free mechanism for storing data objects using memcached.
    • Riptano – Developer of software and services on top of the open-sourced Apache Cassandra (Facebook’s data layer) data storage platform.
    • SolidFire – Offers a next-generation block-based storage appliance for cloud computing providers and big enterprises.
    • Zettar Inc – Enables the creation of secure private storage clouds using commodity hard drives.

    And in honor of the Launchpad 11, for a limited time, we’re offering discounted tickets: $795 for the full two days vs. the regularly priced $995 — but just until this Friday at 11:55 p.m. PST. Simply enter the code LAUNCH11 when you register (applies to new registrations only).

    See you in June!



    Atimi: Software Development, On Time. Learn more about Atimi »

  • What It Could Mean That Walmart Has Discounted The iPhone To $97


    Apple Jan 2010

    Walmart will start selling the 16GB 3GS iPhone for a blockbuster price of $97 tomorrow as part of its big advertising campaign to “rollback” prices this spring.

    The price drop by the big-box retailer represents a $100 discount, but could also signal that Apple (NSDQ: AAPL) is trying to clear out inventory to make way for a new phone coming in June, as has been the pattern now for three consecutive years. If price is your big concern, the deal is attractive. However, if features are what you are looking for, waiting two weeks to see if a new device is unveiled at the company’s Worldwide Developer’s Conference on June 7 is probably wise.

    Apple also announced today that CEO Steve Jobs would deliver the opening keynote at WWDC at 10, and began inviting media to the sold-out event in San Francisco.


  • Supreme Court Says Antitrust Law Applies To The NFL; No Exclusive Licensing Allowed

    Earlier this year, we mentioned the Supreme Court was reviewing a lawsuit over whether or not the NFL had the right to have an exclusive license for its apparel. A company, American Needle, who had supplied apparel to various NFL teams, sued the NFL after it had entered into a long-term exclusive contract with Reebok to handle all team apparel. American Needle claimed that this was a clear anti-trust violation, as all of the teams had colluded to exclude everyone else from the market. The NFL argued, instead, that the entire league should be viewed as a single company. Today, the Supreme Court ruled against the NFL, saying that each team should be viewed as a separate company. The case then gets sent back down to be reconsidered:




    The details of this particular case are somewhat unique, in that it really only applies to situations where there are sports leagues (Major League Baseball is the only sports league that has an official exemption from Congress for antitrust issues — though it’s not clear why the different treatment). However, the decision by retiring Justice John Paul Stevens highlights the importance of competition, and the problems of letting organizations team up, just because teaming up makes better financial sense for all of those organizations:


    Directly relevant to this case, the teams compete in the market for intellectual property. To a firm making hats, the Saints and the Colts are two potentially competing suppliers of valuable trademarks. When each NFL team licenses its intellectual property, it is not pursuing the “common interests of the whole” league but is instead pursuing interests of each “corporation itself,” Copperweld, 467 U. S., at 770; teams are acting as “separate economic actors pursuing separate economic interests,” and each team therefore is a potential “independent cente[r] of decisionmaking,” id., at 769. Decisions by NFL teams to license their separately owned trademarks collectively and to only one vendor are decisions that “depriv[e] the marketplace of independent centers of decisionmaking,” ibid., and therefore of actual or potential competition.

    This makes a lot of sense. Otherwise, you could argue that any particular industry could set up an organization of which all the companies in that industry are a “member” and allow that single organization to negotiate exclusive deals, with the argument that it’s “for the common interests of the whole.” But, that’s obviously collusion, with the intent to harm consumers. Thankfully, the Supreme Court saw through the flimsy claim that such a structure makes companies immune to antitrust law.

    Permalink | Comments | Email This Story





  • Dershowitz’s Idea of “Fair” International Law

    by Kevin Jon Heller

    So, Alan Dershowitz has decided that international law needs to be “delegitimized,” because it is unfair to Israel.  It is reasonable to consider, therefore, what Dershowitz believes a “fair” international law would allow Israel to do.  Here is one of his suggestions, from a 2002 Jerusalem Post editorial entitled “New Response to Palestinian Terrorism” (emphasis mine):

    In light of the willingness of suicide bombers to die in the process of killing Israelis, the traditional methods of deterrence and retaliation seem insufficient. To succeed, Israel must turn the Palestinian leadership and people against the use of terrorism and the terrorists themselves. One way to do this is to make terrorists directly bear the responsibility for losses inflicted on the Palestinian cause as a direct result of their terrorism.

    Here is my proposal. Israel should announce an immediate unilateral cessation in retaliation against terrorist attacks. This moratorium would be in effect for a short period, say four or five days, to give the Palestinian leadership an opportunity to respond to the new policy. It would also make it clear to the world that Israel is taking an important step in ending what has become a cycle of violence.

    Following the end of the moratorium, Israel would institute the following new policy if Palestinian terrorism were to resume. It will announce precisely what it will do in response to the next act of terrorism. For example, it could announce the first act of terrorism following the moratorium will result in the destruction of a small village which has been used as a base for terrorist operations. The residents would be given 24 hours to leave, and then troops will come in and bulldoze all of the buildings.

    The response will be automatic. The order will have been given in advance of the terrorist attacks and there will be no discretion. The point is to make the automatic destruction of the village the fault of the Palestinian terrorists who had advance warnings of the specific consequences of their action. The soldiers would simply be acting as the means for carrying out a previously announced policy of retaliation against a designated target.

    Further acts of terrorism would trigger further destruction of specifically named locations. The “waiting list” targets would be made public and circulated throughout the Palestinian-controlled areas. If this automatic policy of destroying targets announced in advance is carried out with the full support of the entire government, including those who are committed to a resumption of the peace process, a clear message will be sent to the Palestinian people: Every time terrorists blow themselves up and kill civilians, they are also blowing up one of their own villages.

    The most charitable reading of this proposal is that Dershowitz is advocating that Israel commit a wide variety of war crimes and/or crimes against humanity involving civilian objects.  The less charitable one — and the more persuasive — is that he is advocating that Israel commit a wide variety of war crimes and/or crimes against humanity involving civilians themselves.  After all, given that he is calling for an “automatic,” discretion-less response, the bulldozers would knowingly and deliberately kill civilians if they did not heed Israel’s call to flee a village targeted for destruction — as they almost certainly wouldn’t.

    If Dershowitz thinks that international law is unfair because it does not permit these kinds of crimes, I hope it remains unfair for decades to come.

  • Lexus issues stop-sale, recall on LS 460 and LS 600h

    Filed under: , , , , , ,


    True to predictions, The Detroit News is reporting that Lexus has issued a stop sale on its LS 460 and LS 600h (standard and long-wheelbase) luxury sedans due to a problem with the electronic steering system that can temporarily cause the steering wheel to become off-centered. Apparently, the wheel will return to its correct position after about five seconds of misalignment. Toyota issued a recall on Friday, May 21st to address the defect. Click here to see the recall notice from the National Highway Traffic Safety Administration.

    Although Toyota has reportedly fixed the problem on new models rolling down the assembly lines in Japan, those recalibrated machines are not expected to hit dealership lots in America until the middle of June. In the meantime, the 3,800 or so owners of affected 2009 and 2010 LS sedans are being urged to avoid turning the steering wheel rapidly after holding it in full lock in the opposite direction.

    We would imagine that there are certain scenarios where following such advice may prove difficult to follow, but Toyota is so far reporting that no injuries or accidents have been caused by the issue.

    [Source: The Detroit News]

    Lexus issues stop-sale, recall on LS 460 and LS 600h originally appeared on Autoblog on Mon, 24 May 2010 19:57:00 EST. Please see our terms for use of feeds.

    Read | Permalink | Email this | Comments

  • Subaru Impreza WRX STI Cosworth CS400 gets 395-hp, 0-62 in 3.7 secs

    Subaru Impreza WRX STI Cosworth CS400

    Here its is – Cosworth’s insane road-going version of the Subaru Impreza WRX STI. The model will go on sale in June in the UK and will be limited to a production run of just 75 units.

    Cosworth engineers took the Impreza WRX STI’s 2.5L boxer engine and added high-performance pistons, connecting rods, head gasket and bearings, remapped the ECU, modified turbocharger and wastegate and threw in a custom exhaust system.

    Click here to get prices on the 2010 Subaru Impreza WRX STI.

    All that gives the Subaru Impreza WRX STI Cosworth CS400 a total of 395-hp with a maximum torque of 398 lb-ft. That allows the Subaru Impreza WRX STI Cosworth CS400 to go from 0-62 mph in 3.7 seconds with a top speed electronically governed at 155 mph. The Subaru Impreza WRX STI Cosworth CS400 also gets a revamped suspension (lowers ride height by 10 mm) and a new chassis, which is a joint effort between Cosworth, Bilstein and Eibach.

    Styling upgrades include a new front bumper, foglights, mesh grille and a rear spoiler. The Subaru Impreza WRX STI Cosworth CS400 rides on 18-inch alloy wheels.

    Subaru Impreza WRX STI Cosworth CS400:

    – By: Omar Rana


  • Democratic lawmakers working on backup plans for state budget

    Posted by Michelle Manchir, Ray Long, Monique Garcia and Rick Pearson at 7:50 p.m.

    SPRINGFIELD — As lawmakers try to cobble together a budget before their Memorial Day deadline, House Democrats on Monday started exploring two backup options on the major obstacle of how to make a $3.7 billion state worker pension payment.

    A House committee approved a measure that would allow Gov. Pat Quinn to skip the payment next year. That has emerged as an option after Republicans balked at borrowing to cover the pension costs for the second year in a row.


    House Majority Leader Barbara Flynn Currie, D-Chicago, said lawmakers will attempt once more this week to win support for borrowing the money, but Democrats advanced the payment-skipping measure just in case.



    “It’s important for us to have on the back burner something that will get us out of this bind,” Currie said.



    Skipping the payment would result in billions of dollars in lost investment earnings over time, Currie said. Illinois has the most chronically underfunded pension system in the nation.



    Leading House Democrats said they are working on another backup plan. To entice Republican support to get the 71 votes needed for approval, they would tie pension borrowing to approving new bonds to pay for road and school construction.



    Democrats still are not confident that Republicans would support the combined package, but noted that in the past, GOP members voted for additional highway bonding and school construction and might fear criticism for failing to bring jobs and pork projects back to their home districts.



    One House Republican, Rep. Bill Black of Danville, said he’s willing to vote to borrow for pensions. “I don’t see how you can leave here and not borrow money,” said Black, a member of House GOP leadership who is not seeking re-election.



    Speaking in Chicago, Quinn did not box himself in politically during what is supposed to be the legislature’s final week. He refused to say if he’ll sign a spending plan that does not include pension borrowing.



    “We want to do the right thing, so my focus is on that,” Quinn said. “I’m not going to anticipate anything other than that.”



    Following a closed-door Democratic caucus tonight, Rep. Frank Mautino, D-Spring Valley, said the budget proposals to be considered on Tuesday will not have tax increases.



    Rep. Elaine Nekritz, D-Northbrook, said a series of proposed cuts she put together with a coalition of rank-and-file Democrats would be heard in House committees Tuesday. But she wasn’t overly optimistic they would be approved. The proposed cuts include reducing vehicle mileage reimbursement rates for state workers, eliminating salaries for part-time board and commission members, trimming agency budgets and requiring state retirees to pay premiums for health care.

    “Generally, when you’re talking about spending reductions and other things of that nature it runs into some challenges,” Nekritz said.

    House Speaker Michael Madigan, D-Chicago, declined to provide details on the budget plan.

  • New Scientist Article – Omega-3: Fishy claims for fish oil

    This New Scientist article, Omega-3: Fishy claims for fish oil, is good review and casts doubt on the need for omega-3 fatty acid supplementation. That said, I haven’t changed my recommendations for vegans who normally get way too much omega-6s and have lower blood levels of EPA and DHA.

    Thanks, Matt!

  • Peter Gleick: Water and Misleading Advertising and Marketing–Where are the FDA and FTC?

    Advertising is the art of convincing people to spend money they don’t have for something they don’t need. — Will Rogers

    It may be necessary to fool people for their own good…Average intelligence is surprisingly low. It is so much more effectively guided by its subconscious impulses and instincts than by its reason. — John Benson, President of the American Association of Advertising Agencies

    It should be hard to sell private water. After all, most of the people reading this blog have access, a few feet away, to unlimited, remarkably cheap, high-quality tap water from systems owned by the public. So in order to sell water and water-related products, advertisers and marketers have to pull out all the tricks in the book. In particular, they can’t sell “water”–they have to sell youth, health, beauty, romance, status, image, and, of course, the old standbys, sex and fear.

    For bottled water, all of these tricks are being employed, despite federal laws that require manufacturers to use honest labels about contents and restrict advertisers from making unsubstantiated health or medical claims. As early as 1906, the United States passed the Pure Food and Drug Act that required that claims about products could not contain any “statement, design, or device” that was “false or misleading in any particular.”

    But bottled water companies today are advertising all sorts of bottled waters and water-treatment devices as miracle cures for all sorts of ills. Consumers can find water “ionizers,” vibrationally charged interactive water, energy enhanced water infused with luck or love, weight-loss waters, super-oxygenated water machines, magnetized water, rhythm-structured water, and on and on. Many of these are described in detail in my new book “Bottled and Sold: The Story Behind Our Obsession with Bottled Water.” They are just some of the magical bottled waters and devices pushed on ignorant consumers or people with real health concerns who don’t know where else to turn for help. Pseudoscientific claims for bottled waters can be found in brochures, health stores, and magazines, and especially on the Internet. As use of the Internet has exploded, we are seeing a proliferation of websites that make explicit, unsubstantiated, outlandish, and often blatantly fraudulent claims about the health benefits of bottled waters. And we’re sucking it up by the gallon.

    Water Number: 115 liters of bottled water, per person, per year. Twenty years ago, Americans drank around one gallon (under 4 liters) of bottled water a year, mostly from office coolers. Today, on average each American drinks around 30 gallons (115 liters) each year, mostly from single-serve plastic bottles that we throw away. Why? There are many reasons, also discussed in the new book. But one of them is intensive advertising and marketing to move us off of tap water and onto commercial products.

    As I write this, I’m sitting on an airplane. In the seatback pocket front of me is one of those in-flight magazines trying to sell captive customers a remarkable collection of garbage, unnecessary knickknacks, and weird consumer goods that make unsubstantiated claims, unchallenged by regulators who are charged with protecting the public. I can buy products that claim to reverse my balding and regrow hair, electronically determine the best feng shui electromagnetic orientation for my furniture, and several that claim to purify my water or alter my water in ways to promote better skin and healthier hair, improve my circulation and sleep, and remove contaminants that aren’t typically found in my water.

    And these things are expensive. Really expensive. One handheld water “filtration system” is supposed to eliminate unhealthy things in water when you wave it around inside a glass of water. It costs around $30 (plus shipping and handling) and lasts for around 400 glasses of water. If consumers do the math, it turns out this filter, even if it works, produces water at over $300 per cubic meter (about 264 gallons), while tap water costs around $1 per cubic meter. Another product claims to add extra oxygen to water to promote health, even though we get our oxygen into our bloodstreams through the lungs, not the stomach. And what would a consumer pay for this product? Well over $200, plus electricity costs — quite expensive for a burp.

    It is time for our federal regulators to do their jobs. And it would help for our local water providers to work to restore confidence in our public water supplies by fixing and upgrading tap water systems. And a little advertising might help too.

    Peter Gleick


    Dr. Gleick’s blog posts are provided in cooperation with the SFGate. Previous posts can be found here.