Eco Factor: Fuel cell to be used to power a small robotic watercraft.
The U.S. Office of Naval Research is trying to use a new microbial fuel cell that runs on mud to power a small robotic watercraft. The Navy has been using small microbial fuel cells to power sensors and now the goal is to develop a larger version that can power a watercraft.
Facebook employees are an elite group of coders, engineers and entrepreneurs who have all it takes to manage the 400+ million user base Facebook has developed over years. The Facebook team is extremely small and the ratio of a Facebook engineer to Facebook users is more than one million. This is possibly the largest ratio amongst all tech giants.
Facebook is now a part of 2010 TopCoder(R) Open as a sponsor. It also has plans of taking in winners as interns and full time employees. Facebook says,
Help develop the second most-trafficked site and one of the largest MySQL installations in the world.
Facebook uses PHP, C++, Python, Java and Erlang besides other languages.
Every technology has some form of a limit. Tech companies like Facebook hack these technologies to scale them according to their needs and go beyond that limit. Facebook uses Cassandra, Hive, Scribe, and Thrift open source projects and is active in developing them as well.
Facebook boasts more by saying,
At Facebook, we move fast. Our rapid development cycle is supported by tools that always keep us operating ahead of the curve. Our engineers are able to write code and have it running live on the site that same night – see the impact you’re making in real-time.
Learn more at the http://www.topcoder.com/tco10 page.
A sport utility vehicle full of people headed for a funeral rolled over Sunday morning on Interstate 55, leaving one person dead and sending seven to the hospital.
The SUV was headed south about 10:45 a.m. on I-55 just north of McLean when the right rear tire came off and the driver lost control. The front seat passenger, a 61-year-old Wisconsin woman, was thrown from the SUV and was pronounced dead on the scene, McLean County Coroner Beth C. Kimmerling said in a news release.
The woman’s name has not been released. It was not known whether she was wearing a seat belt.
The SUV was the last vehicle in a three-vehicle group that was traveling from Rockford to St. Louis for a funeral. Seven other passengers were taken to Advocate BroMenn Medical Center in Normal.
Read the original article from Journal Star.
Distributed via Chicago Press Release Services
Among the many toys on the 2011 Ford Fiesta will be Sync AppLink, a downloadable upgrade to the Sync hands-free system that allows drivers to use voice commands to control applications on Android or BlackBerry smartphones. While Sync has always allowed drivers to control calls and text messages via voice commands on connected cell phones, AppLink extends voice control to third-party downloadable apps—which Ford says is an industry first.
The first AppLink-ready apps will be the Pandora internet radio player, Stitcher podcast player, and BlackBerry-only Twitter client OpenBeak.
For 2011, all Ford vehicles with Sync will have AppLink capability. Ford plans to gradually add voice support for many more applications, as well as connectivity for the ever-popular iPhone (expected next year), which is noticeably absent from the initial release. AppLink-ready applications will be available from the Android, BlackBerry, and iPhone download stores just like other smartphone apps.
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Eco Factor: Zero-emission scooter powered by electricity.
American manufacturer ZEV is claiming to have developed the world’s fastest and most powerful production electric scooter on the market. Costing $7237, the ZEV7000 puts out a continuous output of 7KW, with a peak output of about 8KW and 14KW of standing start/launch power.
CARMEL, Calif., April 20 /CHICAGOPRESSRELEASE.COM/ — The Quail Motorcycle Gathering (www.quaillodgeevents.com) today announced that the technologically-advanced four-in-one Ducati Multistrada 1200 and the custom Kestrel Falcon will be unveiled at the Quail Motorcycle Gathering on Saturday, May 8 to be held at Quail Lodge Golf Club in Carmel, Calif.
“We are honored that Ducati and Falcon Motorcycles, the most distinguished companies in the industry, have chosen to debut their newest masterpieces at The Quail,” said Courtney Porras, Director of Special Events for Quail Lodge Golf Club. “Our guests will be among the first to have the unmatched opportunity to compare the aesthetics and engineering of these rare bikes.”
Ducati will be debuting its first production spec of the Ducati Multistrada 1200, the most technologically advanced motorcycle on the market. The Multistrada has the ability to change from Sport, Touring, Urban and Enduro to accommodate every rider’s needs via four pre-set programs. The groundbreaking bike combines innovative design, customized suspension and traction control with a 150 hp Testastretta 11 degree engine.
Equally impressive, Falcon Motorcycles, acclaimed for their meticulous custom creations, will introduce its follow up to the “Bullet Falcon”, The Kestrel, created around a 1970 Triumph Bonneville engine that Falcon’s Ian Barry cut in half and re-engineered. The one-of-a-kind motorcycle underwent more than 2,000 hours of radical design and fabrication work. Except for 10 inches of the original Triumph frame-neck, the entire frame, front forks, gas and oil tanks, exhausts, handlebars, levers – in fact every part of the motorcycle including the cylinders, were made 100 percent from scratch, in-house at the Falcon Motorcycles Los Angeles workshop. The Kestrel is the second creation in Falcon’s Concept Ten, a collection of very different one-off bikes designed and fabricated around the engines of rare pre and post-war British motorcycles. The first is the acclaimed “Bullet Falcon,” which has come to be recognized as one of the most iconic two-wheelers in recent motorcycle history.
Additional key motorcycles on display, amongst many others include a 1974 Ducati 750 SS, the last new bike of its kind sold in the United States; 1949 Vincent Black Lighting, one of only 30 motorcycles ever built and a 1937 Harley-Davidson 61ci Overhead valve V-Twin, also known as the “Knucklehead,” one of the most handsome and readily recognizable motorcycles of all time. The Quail has also added a 1975-1977 Honda GL 1000 feature display.
Other highlights include the all new Honda VFR1200F, featuring the world’s first dual clutch transmission; Ducati test-rides; an Adam Wright photography exhibit; therapeutic chair massages; live entertainment and a delicious Southern flavor barbeque lunch highlighting The Monterey Peninsula region’s best local ingredients. Attendees will have access to the Bonhams & Butterfields’ auction of rare motorcycles and memorabilia which includes a beautifully restored 1957 Mondial 125cc Grand Prix dohc ‘Dustbin’, a rare 1910 Royal Pioneer 30.50ci Single, and a collection of four Vincent Prototypes built for Vincent’s reincarnation.
To kick-off The Quail Motorcycle Gathering, enthusiasts are invited to participate in a one-day Motorcycle Tour on Friday, May 7, 2010. The scenic tour, limited to 50 participants, will wind through 100 miles of the Monterey Peninsula coastline, and will finish the day with an exclusive dinner. The cost to participate is $250 per person, which will include a gift bag, lunch, track time at the legendary Mazda Raceway Laguna Seca (where you can experience the “corkscrew” first hand,) and entrance into the evening reception, featuring special guest speakers and a preview of the Bonhams & Butterfields Auction Motorcycles.
About the Quail Motorcycle Gathering
Tickets to The Motorcycle Gathering are $65 per person, $10 for children 12 and under, and inclusive of lunch, musical entertainment and access to the Bonhams & Butterfields auction. Quail is proud to be partnering with Riders for Health as the official event charity (www.riders.org). For more information call 877-734-4628 or visit www.quaillodgeevents.com. Tickets are on sale now, and can be purchased online at www.quaillodgetickets.com. A limited number of entrants and event sponsorships are still available. For more information please call (877) 734-4628.
SOURCE Quail Lodge Golf Club
http://www.quaillodgeevents.com
Distributed via Chicago Press Release Services
The Sprint HTC Evo 4G is set for its big coming-out party on May 12 in New York City. And as with the Evo’s cousin, the Windows Mobile-powered HD2, it looks like movies are going to play a big part of the device — so much so that Sprint’s giving an advance screening of "Prince of Persia: The Sands of Time," ahead of its Memorial Day release. And if the thought of two hours of Jake Gyllenhaal in a loin cloth isn’t exciting enough, Sprint CEO Dan Hesse’s also going to be on hand for the big event.
Still no word about when the Evo 4G will actually be available (or what it will cost); the invite only says "this summer." Stay tuned.
Researchers at the Southern Methodist University (SMU) in Dallas are developing new miniature camera technology and an iris recognition application built on a high-resolution, light and compact platform known as Panoptes. The technology is designed to help the military and border patrol to track combatants in dark caves or alleys and airport security personnel to quickly and unobtrusively identify a subject from an iris scan. ..
Continue Reading Tiny Panoptes technology holds promise for military surveillance and iris recognition
Tags: Biometrics,
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Northrop Grumman,
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CAMBRIDGE, Mass., April 20 /CHICAGOPRESSRELEASE.COM/ — Brightcove, the leading online video platform, today announced that Paul Goetz has joined the company’s executive team as senior vice president of sales for North America. Goetz brings a wealth of management, sales and strategic experience to Brightcove from his successful 19-year tenure at EMC Corporation and most recently at SAVVIS, where he was responsible for the company’s sales and consulting group. At Brightcove, Goetz will help scale the company’s sales organization and drive customer acquisition activities across North America.
“Brightcove is experiencing tremendous demand for our online video platform, so we are very happy to have Paul join the team to ramp our sales organization and accelerate growth across our customer base in North America,” said David Mendels, Brightcove president and chief operating officer. “Paul brings a wealth of experience to the table, as well as a proven ability to deliver substantial revenue growth and drive results for some of the biggest brands in the world. I look forward to his contributions to the Brightcove team in the year ahead.”
Paul Goetz brings more than 20 years of technology sales experience, most recently serving as senior vice president of U.S. sales and consulting at SAVVIS Corporation, where he led engagements with major consumer brands, media organizations and software-as-a-service (SaaS) providers. Prior to SAVVIS, Goetz spent 19 years at EMC Corporation, where he served as vice president of global consulting and managed services and was responsible for worldwide advanced services sales. In this role, Goetz worked with many of EMC’s top clients, built a highly productive global sales force, and led the design of the services sales model for the company. Early in his career, Goetz quickly rose through the ranks at EMC, moving up through sales management, to leading sales for Switzerland, Portugal, Spain and Italy, and later serving as vice president for solutions and services marketing for the company.
“I am very excited to join the Brightcove team given the company’s tremendous momentum and leadership position in the online video market,” said Goetz. “I have focused my entire career around client-facing leadership roles because I am passionate about solution selling and client relationships. I look forward to leveraging my experience and immediately contributing to the successful executive and sales team Brightcove already has in place.”
Goetz joins the Brightcove executive management team reporting to David Mendels.
About Brightcove
Brightcove is a cloud-based online video platform. Media companies, businesses and organizations worldwide use Brightcove to publish and distribute video on the Web. Founded in 2004, Brightcove has offices across North America, Europe and Asia and customers in 42 countries. For more information, visit http://www.brightcove.com.
SOURCE Brightcove
Distributed via Chicago Press Release Services
A lovely little piece, with whirling planets playing a tune.
Note: The creators are pro-Pluto, but anti-elliptical orbits, because that would look ugly.
(h/t, SLOG)
When you think of Nero – you automatically think of Nero Burning Rom. Since as far back as 1997, Nero Burning Rom has been my personal go-to software for burning all my ISO files, ripping DVDs and CDs, and helping me utilize daemon tools. The software has also been a vital piece of software for those that liked to rip media, since Nero always kept on top of the latest codecs. However with the latest version of Nero, which just launched last week, it looks like Nero wants to be more than just a reputable burning software application, but a complete multimedia suite for those who love editing video, backing up their computer, and burning discs.
Nero Multimedia Suite 10 is marketing itself as a three products in one solution. It incorporates Nero Vision Xtra, Nero Burning Rom, and Nero BackitUp & Burn. I got some hands on time with the complete suite and I have to say, that if you are looking for a simple PC software solution that encompasses video editing, ripping, and backing up – Nero has got you covered. The suite’s interface on the surface is no frills. But it’s not meant to be – it’s meant to let users navigate and create content easily without having to be Steven Spielberg.
Nero Vision Xtra is the sweet spot of the Nero Multimedia Suite 10. It works kind of like a beginner’s version of Final Cut Pro, but with the easier interface of even iMovie. That also means that you don’t need a Mac to edit together a snazzy looking video. The software also lets you import video easily from any of your mobile devices – Nero will support just about any file type. So you won’t need to download a codec for your software to recognize it. Just plug in your iPhone, BlackBerry, or camcorder and pull the video off. Once you do, you can start the editing process. The interface is robust, but not so much so that you become overwhelmed. Within in a few clicks you can have a movie made with special effects, rotations, sound overlays, and then have your masterpiece uploaded to YouTube. So yes, you can easily upload your videos directly to YouTube just as you would with iMovie, but this time it’s for the PC.
Nero Burning ROM hasn’t changed much since its most recent version, but this time there is support for Blu-Ray burning and playback without the need of a plugin. You can also split up data that may be too big to burn on to one disc – on to multiple discs. You can also set the region for discs you want to burn or enable SecurDisc for protection of your files. Again the interface is simple and reminiscent of the previous versions. So those who are concerned that Nero ROM has been transformed – no need to worry – it’s exactly the same, but with a few enhancements.
The third portion of the Nero 10 suite is the Nero BackItUp & Burn app – this is basically a one-step solution for users to select partitions, folders, or hard drives to back up. You can opt to select to backup specific folders every day, or when changes are done. You can also search folders of older back-ups in case you overwrite it in the future and need to retrieve an older version. Backups can be started manually or on a schedule as well, and are easily done with a few clicks. Once again, you don’t need to be a rocket scientist to figure out this software, and your files will be backed up in case your hard drive decides to head south for the winter.
Amongst these core three Nero products in the Nero Multimedia Suite 10, the suite also offers an abundance of multimedia tools that you will grow to appreciate very quickly. These tools let you sort and find images, music, and videos easily, and tag your favorite ones. You can also crop and edit videos along with advanced video editing i.e. chroma keys for green screening, lens distortion effects, and adding effects with color. There is also the ability to make a cover for your video or music CD with the included Nero CoverDesigner. The list goes on and on with all the features that Nero packs into this suite.
Conclusion:
Until now there has been a severe void in getting decent easy to use video editing software for the PC, and Nero delivers. Nero Multimedia Suite 10 is easy to navigate and use, without requiring an instructional class to learn how to operate it. It might be missing a more visually stimulating interface but in terms of functionality it delivers. Now only if they dared to enter into the Mac marketplace… Nero Multimedia Suite 10 retails for $79.99 for the disc or downloadable version.
The Good: Easy to use robust software that delivers video editing, burning, and back up software in a single package. Great Value.
The Bad: Interface is aesthetically very plain and lacks any bells and whistles but delivers in functionally. On a few instances it tended to freeze in between operations but it quickly recovered.
“The ideal is to grow corn for food,” said Ilya Gelfand , a Michigan State University postdoctoral researcher, “then leave the leftover stalks and leaves on the field for soil conservation and produce cellulosic ethanol with the other half.”
“It comes down to what’s the most efficient use of the land,” said Phil Robertson, University Distinguished Professor of crop and soil sciences and one of the paper’s authors. “Given finite land resources, will it be more efficient to use productive farmland for food or fuel? One compromise would be to use productive farmland for both — to use the grain for food and the other parts of the plant for fuel where possible. Another would be to reserve productive farmland for food and to grow biofuel grasses — cellulosic biomass — on less productive land.” (more…)
ST. LOUIS, April 20 /CHICAGOPRESSRELEASE.COM/ — Express Scripts is the first organization ever to quantify the hidden healthcare costs of very common behaviors related to prescription drugs, such as forgetfulness and procrastination, estimating the annual wasteful spending at $163 billion.
(Logo: http://www.newscom.com/cgi-bin/prnh/20080827/EXPRESSSCRIPTSLOGO)
The Express Scripts 2009 Drug Trend Report, released today, quantifies changes in drug spend on a year-to-year basis and details the costly effects of irrational behaviors on pharmacy-related costs. Express Scripts, one of the nation’s largest pharmacy benefit managers, has produced the Drug Trend Report for each of the past 14 years.
The Express Scripts 2009 Drug Trend Report creates a set of personas, such as Robert the Loyalist, to illustrate common behaviors that contribute to the billions we waste each year. Express Scripts is the first company to apply behavioral science to address healthcare challenges that individuals, policymakers and employers have faced for years.
“The good news is that these potential savings in the pharmacy benefit are tied to one of the few variables in healthcare we can readily influence: behavior,” said Steven Miller, MD, senior vice president and chief medical officer at Express Scripts. “This research shows that in terms of achieving lower costs and improved outcomes, healthcare reform starts in the home.”
Miller added, “If we optimized every individual’s behavior relating to prescription drugs, we could achieve savings that in five years would cover the projected costs of the recently passed national healthcare reform legislation.”
The $163 billion in wasteful spending results from three key factors:
The 2009 Drug Trend Report is the first to link spending to both market forces and behavioral factors. Overall, the drug spend for the United States increased 6.4 percent in 2009, reversing a pattern of lower drug trend increases in previous years, the report says. Market forces drove trend up by 8.3 percent, while behavior drove down trend by nearly 2 percent.
For example, within traditional prescription drugs, Express Scripts clients saved $1.4 billion through the increased use of generics and lower-cost brands. More than of half that savings, $790 million, came from Express Scripts’ behavior-centric programs in partnership with clients. Those savings were over and above some market factors that also helped hold down spending, such as the expiration of branded patents, which allows development of lower-cost generic drugs.
Through the lens of behavior, Express Scripts also has broken down the behavior-related waste by therapy class. For example, more than one-third of the annual spend (35.5 percent) on high cholesterol medication could be saved with better behavior.
Bob Nease, chief scientist at Express Scripts, said, “We have good cause for optimism that the behaviors causing this vast waste in healthcare can change. Express Scripts’ advanced application of behavioral science to healthcare, which we call Consumerology, has proved very successful in achieving behavior changes through programs that are fully voluntary.”
Other notable trends found in the Drug Trend Report include that diabetes is the top driver of total cost increases in the traditional drug sector because of growth in utilization and cost per prescription. Spending for drugs used to treat viral infections increased by approximately 25 percent primarily because of increased prevalence of use for agents used to treat influenza.
The full report is available for download at www.express-scripts.com
About Express Scripts
Express Scripts, Inc., one of the largest pharmacy benefit management companies in North America, is leading the way toward creating better health and value for patients through Consumerology®, the advanced application of the behavioral sciences to healthcare. This approach is helping millions of members realize greater healthcare outcomes and lowering cost by assisting in influencing their behavior. Headquartered in St. Louis, Express Scripts provides integrated PBM services including network-pharmacy claims processing, home delivery services, specialty benefit management, benefit-design consultation, drug-utilization review, formulary management, and medical and drug data analysis services. The company also distributes a full range of biopharmaceutical products and provides extensive cost-management and patient-care services. More information can be found at http://www.express-scripts.com and http://www.consumerology.com/ .
SOURCE Express Scripts
http://www.express-scripts.com
Distributed via Chicago Press Release Services
Filed under: Technology, Ford, Lincoln
On our way to Stanford last week, we came across a murdered-out Toyota Prius with an “I♥OPEC” vanity plate. Prime Twitter fodder if we’ve ever seen it. Unfortunately, even with our smartphone streaming navigation directions and a podcast through the Ford Fusion’s SYNC system, we couldn’t safely tweet our find. Well, Ford’s about to rectify that issue with the introduction of AppLink, a downloadable upgrade to the SYNC infotainment system that allows drivers to control their smartphone apps through voice commands.
AppLink will be exclusive to the 2011 Ford Fiesta when it hits dealers later this year and, at launch, it will only work with Blackberry and Android-powered devices running SYNC software. When it does arrive, the first three supported apps are Stitcher, Pandora (bye-bye XM/Sirius) and Orangatame’s OpenBeak Twitter program. More apps are sure to be available in the following months and Ford has setup a developer channel on SYNCMyRide to get programmers going.
For those of you currently rolling in a SYNC-equipped Ford or Lincoln, AppLink will be available as a download sometime next year, and for all you Apple fanboys, fear not, iPhone integration is on the way. Make the jump for all the details and a brace of videos showing off the technology.
Gallery: Ford SYNC with AppLink
[Source: Ford]
2011 Ford Fiesta to include AppLink, voice-control Blackberry and Android apps [w/videos] originally appeared on Autoblog on Tue, 20 Apr 2010 00:01:00 EST. Please see our terms for use of feeds.
I grew up in central Ohio and occasionally would visit Dayton to see live music. The fourth largest city in Ohio is home to Wright-Patterson Air Force Base, the National Museum of the United States Air Force, and the Dayton Peace Accords. Now, the city has the claim to fame of of having the greenest fleet in Ohio. Greater Dayton RTA reports:
Ten new hybrids will complement RTA’s fleet with four of the new coaches rolling into service following the ceremony. RTA’s entire green fleet will be on display including a new hybrid diesel bus, an electric trolley bus, and a paratransit Tesco vehicle…
The hybrid diesel Gillig coaches are powered by clean diesel hybrid electrical propulsion systems that reduce emissions, save fuel and are smoother and quieter than conventional buses. The hybrids use the latest General Motors- manufactured parallel drive technology, which is more efficient than traditional systems. The buses utilize long-life, non-hazardous and maintenance-free NiMH batteries that capture and store braking energy as well as solid state advanced controllers that manage and blend power sources to optimize performance.
Via: Green Car Congress
Image: Automotive.com
Now that the American financial sector is safe and unsound once again, has the threat of serious economic crisis genuinely passed? And has the structure of American capitalism actually improved? Or did the Fed merely dress a sow in lingerie and call her a raving beauty?
In other words, what did the Fed accomplish by lavishing billions of dollars upon the financial sector? Was the Fed’s inflationary rescue mission really worth all the trouble? Or would the nation have been better off if Bernanke and Paulson had simply gone golfing while Bear Stearns failed?
At first glance, the Fed’s rescue seems to have halted a serious crisis in its tracks. The rescue also seems to have preserved the viability of the American banking system. But upon closer inspection, we discover that the Fed’s rescue also preserved at least one dysfunctional characteristic of our economic system – namely, an over-reliance on “asset-swapping” activities, rather than “asset-producing” activities.
Australian author, James Cumes, asserts that the US economy has become overly dependent on trading things back and forth, rather than manufacturing goods and selling them. He calls this new reality the “Goldman Sachs Phenomenon.”
“In the larger Anglo-Saxon economies,” says Cumes, “transfer of ownership [has] supplanted fixed-capital investment as the most common form of what purported to be ‘investment.’ Investment has become a means of making a fast buck, not by entrepreneurial effort, construction of factories and installation of productive equipment, but by gambling to add market value through mergers and acquisitions…that would lead to higher shareholder value in the marketplace…
“Despite the higher, short-term market values [that might ensue], they would not necessarily add anything to productivity or to the volume or value of final output” – “Inevitably,” Cumes continues, “there are social impacts from this deal-maker, day-trader, casino-like type of ownership investment, especially to the extent that it spreads over a more and more major part of the economy…Inequality is dramatically intensified by generous bonuses for senior executives and others in financial firms in the United States and such other financial centres as London.”
The Fed’s bailout of the financial sector seems to have supercharged the Goldman Sachs phenomenon. Not only do the top dogs at publicly traded financial firms “make bank,” they continue to make bank even after destroying billions of dollars of shareholder wealth. And the top dogs enjoy their privileged positions under the watchful, doting eyes of the Federal Reserve and Treasury. No bad deed goes unrewarded.
“Of course, there is justice in rewarding effort and enterprise,” Cumes concludes. “That is historically one of the ways in which a capitalist system has justified and maintained itself; but there are other considerations too. “Indeed, if our present essentially democratic capitalism is to survive – and survive securely – it must pay attention to social outcomes. Poverty in the midst of plenty is not a comfortable social situation. Some inequality there will always be but gross and growing inequalities must, over time, be a threat to social, political and even strategic stability, as well as economic and financial stability.”
But these “big picture” concerns do not seem to concern the head of the Fed and Treasury. In fact, throughout this crisis, Bernanke and Paulson have assiduously avoided implementing (or even suggesting) any regulatory changes that would impinge upon the limitless liberties of Wall Street’s investment banks. The perpetrators of the crisis remain in power and the corporate structures that supported their recklessness remain in place. Instead, incredibly, Treasury Secretary Paulson wags his regulatory finger at hedge funds.
Huh? Why? Hedge funds did not create the crisis, they merely profited from it. Aren’t the investment banks the ones who created trillions of dollars of crazy derivatives? And aren’t they the ones who loaded their balance sheets with suicidal quantities of leverage? And aren’t they the ones who are now receiving billions of dollars of government support?
So here’s a radical idea: How about regulating the perpetrators of the crisis, rather than the profiteers? Or maybe the Fed should require all the top-ranking officers of every company that receives a bailout to resign? Or how about one upper-level resignation for every $1 billion a Wall Street investment bank borrows from the Fed’s discount window.
This isn’t complex stuff, folks. If the Treasury Secretary sincerely wished to clean up and re-regulate the banking system, his new regulations would only require about 50 words:
Implement these regulations and you would have forever eradicated the DNA of financial catastrophe from the American financial system.
But what would critics say about such “draconian” new regulations? (We’ll call these regulations the “Level Playing Field Act of 2008.”) After choking on their foie gras, they would probably protest, “That’s not nearly enough compensation for top officers! You’d lose the top talent!” Then they would protest: “What! No off-balance sheet financing? Are you crazy? That’s where all the juice is! You would lose the ability to ramp up return on equity!”
To which we would reply: “Hallelujah!” and “Amen!”… Finally, we could purge the financial system of all the “talent” that has delivered America’s most severe credit crisis since the Great Depression. Finally we could purge the system of the “creative” leverage that the “talent” has amassed over the last several years. Finally, we’d have a banking system that would operate like one – a banking system that would provide capital to entrepreneurial endeavors, rather than to catastrophic speculations.
The American financial system does not need “talent” and “creativity.” It needs prudence and perspicacity. It does not need creative bankers. It needs dull bankers.
Why? Because the American financial system needs to safeguard its capacity to finance creative and talented entrepreneurs. It needs to safeguard its capacity to preserve the purchasing power of our currency and to safeguard the legendary America capacity to create wealth from the bottom-up, not to destroy wealth from the top-down.
But the American financial system still possesses too much talent and creativity to operate prudently. In fact, Ben Bernanke and Hank Paulson may be the most creative finance officials in American history.
Consider yourselves forewarned!
Eric J. Fry
for The Daily Reckoning Australia
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If you shine a light on a cluster of cockroaches, they scatter and hide. But when you shine a light on a cluster of investment banking con men, they simply stare back and reply, “The SEC’s charges are completely unfounded in law and fact and we will vigorously contest them and defend the firm and its reputation.”
As the entire investing world knows by now, Goldman Sachs is the latest cockroach to scuttle under the spotlight. Last Friday, the Securities and Exchange Commission accused Goldman of defrauding investors out of $1 billion.
The details of the SEC’s complaint allege that Goldman failed to disclose “vital information” about a mortgage-back security called Abacus. The SEC said: “Unbeknownst to investors, Paulson & Co. [a hedge fund]…which was posed to benefit if the [securities in Abacus] defaulted, played a significant role in selecting which [securities] should make up the portfolio…In sum, Goldman Sachs arranged a transaction at Paulson’s request in which Paulson heavily influenced the selection of the portfolio to suit its economic interests.”
Goldman responded in classic fashion – crying “Foul!” and claiming that it is the victim of a gross misunderstanding. Does anyone really believe them? To rephrase the question, does anyone really believe that this single instance of alleged fraud is the only such instance?
This question reminds us of another truism about cockroaches: There’s never just one. Any financial firm that is capable of committing a fraud as egregious and flagrant as the one the SEC’s complaint describes is certainly capable of committing a second fraud…and maybe even a third or a fourth…or a fortieth.
The fraud the SEC identifies in its complaint against Goldman is not a mere “Oops!” It is a fraud that every licensed stockbroker in the land would recognize as a career-ending no-no.
“The product was new and complex,” explained Robert Khuzami, a director from the SEC’s Division of Enforcement, “but the deception and conflicts were old and simple.”
In other words, a lie is a lie.
Nevertheless, your editor is content to let due process run its course…and to wait as long as necessary for the guilty verdict to arrive.
Whatever the ultimate verdict, Goldman is already “guilty by association” in the eyes of most Americans. It is guilty by its close association with the practices that precipitated the financial crisis of 2008. It is also guilty by its close association with the powers in Washington who decided which firms would receive billions of dollars of emergency assistance (i.e. Goldman Sachs) and which would be allowed to fail (i.e., Lehman Bros.). And most of all, it is guilty by its close association with the obscene sense of entitlement that characterizes Wall Street pay practices.
In short, America hates Goldman Sachs.
So the fact that Goldman may have actually committed a large-scale fraud is a very big deal. Suddenly, the Goldman-haters are carrying loaded weapons…and the ensuing firefight might produce some significant volatility in the financial markets.
For starters, this event might produce a very convenient excuse for a very pronounced selloff. But Goldman is not merely an excuse for a stock market selloff; Goldman is the stock market…and it is also the commodity market and the Treasury market. Goldman is the biggest market maker in the US stock market and among the biggest players in every major commodity market. Goldman is also one of the largest primary dealers of Treasury Securities.
So maybe it is no fluke that most commodities tumbled Friday, right along with the stock market. Gold and crude oil both tumbled more than 2%. And as this new week begins, Goldman’s troubles are mounting.
Citing Goldman’s “moral bankruptcy,” Britain’s Prime Minister Gordon Brown called for a full inquiry by Britain’s Financial Services Authority in conjunction with the SEC. Germany also said it would ask for detailed information about the case. Both governments had to bail out banks that lost hundreds of millions of dollars on investments marketed by Goldman.
None of this will be good news for the stock markets of the world. And yet, none of this is really a surprise either. Nearly two years ago, in a column entitled, “The Goldman Sachs Phenomenon,” your California editor remarked, “The American financial system still possesses too much talent and creativity to operate prudently… Consider yourselves forewarned!” We are re-publishing this column in today’s edition of The Daily Reckoning.
Just two months before this column first appeared, JP Morgan Chase had acquired the failing Bear Stearns. As part of the deal the Federal Reserve took responsibility for $29 billion in toxic assets from the Bear Stearns portfolio – effectively handing a $29 billion subsidy to JP Morgan, and establishing a precedent for the hundred-billion-dollar subsidies that would flow to Wall Street’s largest firms just six months later.
We smelled a rat back then…and the rat doesn’t smell any better now…
Eric J. Fry
for The Daily Reckoning Australia
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TROY, N.Y., April 20 /CHICAGOPRESSRELEASE.COM/ — The Kaleel Jamison Consulting Group, Inc. (KJCG), has been named one of Consulting magazine’s Seven Small Jewels for 2010. The Seven Small Jewels are the gems of the consulting profession. Each year, Consulting magazine identifies seven growing firms with fewer than 200 billable consultants who are helping reshape and redefine the profession with new and innovative business models, technologies and practices. The Kaleel Jamison Consulting Group was selected from among 80 applicants for this year’s award.
“We are honored and excited to have received this award,” said Fred Miller, CEO and Chief Client Strategist with the firm. “During our 40-year history, The Kaleel Jamison Consulting Group has always continued to grow and refine our learning to stay relevant for our clients.”
“The Seven Small Jewels continue to defy the odds,” says Joe Kornik, Editor in Chief of Consulting magazine. “With fewer resources, fewer clients, fewer consultants and far fewer dollars on their balance sheets, they managed to not only survive–but thrive–in an economy that hindered many of the best firms of the profession.”
The Kaleel Jamison Consulting Group, Inc. uses Inclusion as the HOW(SM) to create organizations that inspire collaboration, innovation and breakthrough ideas for higher performance. They do this though crisis intervention and rapid deployment into organizations that results in tangible impact within 6 months and a sustainable culture change within 1-2 years.
http://www.consultingmag.com/article/ART647372?C=zHg81bVhsiWQiFBp
SOURCE The Kaleel Jamison Consulting Group, Inc.
Distributed via Chicago Press Release Services
We just received an email from Sprint inviting us to join the Dan Hesse (CEO) next month for a hands-on look at the upcoming HTC EVO 4G. Not only that, but we’d be treated to a special advanced viewing of this summer’s Prince of Persia: The Sands of Time weeks before it hits theaters.
Sprint CEO Dan Hesse invites you and a guest to a May 12 event with our partner, Walt Disney Pictures, as we showcase the multimedia capabilities of HTC EVO™ 4G, the world’s first Android phone. Get a hands-on look at the device and see for yourself how HTC EVO™ 4G and Sprint’s 4G network leadership are transforming the entertainment industry.
We were at CTIA last month when Sprint unveiled the HTC EVO 4G and we have to admit this phone is everything they are claiming it is. It’s super responsive, loaded with hardware features not found elsewhere, and really feels like a winner in your hands. Unfortunately, there’s not even a hint as to launch dates and/or pricing. Why bother even throwing an event around a handset if you’re not going to advance the conversation a bit? Maybe we’ll buy Dan a large popcorn in exchange for some details.
“Sometimes fallin’ feels like flyin’, for a little while.” -Bad Blake
Volatility up. Stocks down. That’s how things looked at G plus one (Goldman plus one) yesterday. Bu where to from here?
You wouldn’t blame investors for using the Goldman story as an excuse to sell stocks right, although it’s probably not the best one. The best one would be that there aren’t a lot of stocks selling at good values. AMP reckons the whole affair is spooky enough to knock 10% off global index levels.
But we don’t really have much to say about it. As we wrote yesterday, this is largely a cosmetic fight between two warring factions of the same financial oligarchy. You’ve got Goldman Sachs, the poster child for Wall Street’s innovations and machinations. And you’ve got the politicians Goldman has done its best to get on its side with campaign money. Both sides have to placate the public, which now knows it’s been getting screwed six ways to Sunday.
To be honest, the issue that preoccupies us most today is whether China’s steel production is sustainable. The thought was provoked by an article by Barry Hughes in yesterday’s Financial Review. And before we show you how we got to it we’ll offer you the conclusion: excessive production (for political benefit) is just as economically wasteful as excessive consumption.
The specifics of the issue are whether China is over-producing steel for non-economic reasons. Hughes points out that profits for steel makers are kept high by a raft of subsidies on “input prices.” “Subsidies to production include cheap, preferential capital from regulated state-owned banks; cheap land, thanks to the prevalence of party-directed expropriations and allocations; cheap exchange rates imposed politically; cheap escapes from environmental costs; and persistently cheap migrant labour.”
“The net result is subsidised manufacturing that is very profitable…Subsidised producers enjoy extraordinary profits that do not exist in other countries. Steel is not unique, but it is a prime beneficiary.” Hughes calls this below-market cost for steel “the China price.”
It’s true that we’re not breaking any new ground in showing that Chinese steel production is unsustainable. But the more interesting question is why China has chosen this path. Is it to achieve the build out of national infrastructure, a process which is heavily steel intensive and heavily capital intensive? If it’s part of a national capital asset strategy, it’s a whole different kettle of fish (although also not sustainable.”
But Hughes shows that you can make career gains in China at the provincial level by boosting the level of output. Granted, this might have been a top-down incentive to get everyone in the country on board with boosting output, which is what you’d do in an export-driven growth model. But the model is based on the distorted pricing of inputs.
Or in much simpler terms, China has been subsidising its productive industries in order to achieve export goals, which deliver political success and big GDP figures. But if the sin of the Western capitalist model (lately) is to consume too much and spend money you don’t have, the mistake the Chinese are making is just as dire. They are distorting prices and misallocating resources by producing too many goods at un-economic prices.
At least that’s our thought this morning. Not having been to China in years and having no particular local knowledge, it might be pretty stupid to make assumptions about what really is going on. But if you look only at the steel production and consumption figures, it certainly presents a riddle.
The basic economic question at stake is how long can you keep producing things in excess of demand for a political objective? Australia has a dog in this fight because if Chinese manufacturing activity, at least at the margin, is driven by production quotas and not satisfying real consumer demand at some level (foreign or domestic) then the appetite for Australian steel making minerals like iron ore and coking coal has a dangerously undefined element of fiction to it.
Let’s leave that question aside for now. But while we have our thinking caps on, let’s look at the Basel liquidity rules and see if they are going to cause trouble here in Australia. Another article in yesterday’s AFR by Geoff Winstock reports that “local banks protest at unfair Basel liquidity rules.”
The back-story is that G20 leaders asked the Basel committee on banking supervision to overhaul global banking rules so a financial crisis would never happen again. One of the issues the Big Four are not happy about is the “structural funding” solution the Basel Committee is proposing.
The “structural funding” limit proposed by the Basel regulations is designed to enhance bank liquidity. Specifically, the rule, “requires banks to keep sufficient assets in a saleable liquid form to meet withdrawals during a 30-day panic on markets.”
Aside from sounding like an arbitrary time-frame, the requirement would affect Aussie banks quite a bit. The problem is that Aussie banks have 60% of their assets in residential mortgages. And they tend to hold those mortgages directly, rather than as security. In the Basel committee’s eyes, that makes those assets riskier. Why?
The Aussie banks essentially fund long-term assets (the loans they make) with short-term liabilities (the money they borrow in foreign wholesale markets to fund their mortgage lending). Owning a mortgage directly makes it less liquid. You then have a mismatch. Banks might face a rising cost of servicing liabilities, but be unable to liquidate their assets quickly enough to match the liabilities.
U.S. and European banks solve this problem by securitising their mortgages and calling them “trading assets.” The banks still own the assets, mind you. But they own them in a fashion that makes them easier to sell if need be, in a crisis.
Of course that assumes there would be a buyer for these assets. And in a credit crisis, the market for securitised mortgages would be pretty illiquid, if the last credit crisis was any indication. What’s more, the article makes no mention of the risk of having 60% of your assets tied up in a single asset class.
But the net result of this proposal, should it go through is that it makes the Australian government the likely buyer of bank assets in a crisis. And thus, every day and in every way we move closer toward a federalisation of private sector liabilities in Australia. As elsewhere in the world, risk is being transferred and concentrated on the public sector (government balance sheet). Even the APRA scheme for providing deposit insurance on bank deposits accelerates this trend.
Just when we should be looking for ways to reduce leverage and decentralise risk, the opposite is happening. Now that’s what we call progressive.
Dan Denning
for The Daily Reckoning Australia
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