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		<item>
		<title>The Science of the Ponytail</title>
		<link>http://readingbyeugene.com/2012/02/14/the-science-of-the-ponytail/</link>
		<comments>http://readingbyeugene.com/2012/02/14/the-science-of-the-ponytail/#comments</comments>
		<pubDate>Tue, 14 Feb 2012 14:16:23 +0000</pubDate>
		<dc:creator>readingbyeugene</dc:creator>
				<category><![CDATA[links of the day]]></category>
		<category><![CDATA[physics]]></category>
		<category><![CDATA[ponytail]]></category>
		<category><![CDATA[rapunzel]]></category>
		<category><![CDATA[rapunzel number]]></category>
		<category><![CDATA[science]]></category>

		<guid isPermaLink="false">http://readingbyeugene.com/?p=1670</guid>
		<description><![CDATA[In more bizarre scientific research, physicists have come up with an equation that explains and predicts the shape of a ponytail. Professor Raymond Goldstein worked on the equation with Professor Robin Ball from the University of Warwick and Patrick Warren, from Unilever&#8217;s Research and Development Centre. According to them, this equation aims to &#8220;solve a problem that [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=readingbyeugene.com&amp;blog=11343307&amp;post=1670&amp;subd=readingbyeugene&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>In more bizarre scientific research, physicists have come up with an equation that explains and predicts the shape of a ponytail.</p>
<p>Professor Raymond Goldstein worked on the equation with Professor Robin Ball from the University of Warwick and Patrick Warren, from Unilever&#8217;s Research and Development Centre. According to them, this equation aims to &#8220;solve a problem that has puzzled scientists and artists ever since Leonardo da Vinci remarked on the fluid-like streamlines of hair in his notebooks 500 years ago&#8221;.</p>
<p>The <a href="http://prl.aps.org/abstract/PRL/v108/i7/e078101">abstract</a> of the paper, which will appear in <em>Physical Review Letters Journal</em>, follows:</p>
<blockquote><p><em>A general continuum theory for the distribution of hairs in a bundle is developed, treating individual fibers as elastic filaments with random intrinsic curvatures. Applying this formalism to the iconic problem of the ponytail, the combined effects of bending elasticity, gravity, and orientational disorder are recast as a differential equation for the envelope of the bundle, in which the compressibility enters through an “equation of state.” From this, we identify the balance of forces in various regions of the ponytail, extract a remarkably simple equation of state from laboratory measurements of human ponytails, and relate the pressure to the measured random curvatures of individual hairs.</em></p></blockquote>
<p>The best part? The scientists have come up with a new mathematical quantity known as the <a href="http://en.wikipedia.org/wiki/Rapunzel">Rapunzel</a> Number. Very clever.</p>
<p>###</p>
<p>(via <a href="http://www.bbc.co.uk/news/science-environment-17012795">BBC News</a>)</p>
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		<title>Television in Putin&#8217;s Russia</title>
		<link>http://readingbyeugene.com/2012/02/13/television-in-putins-russia/</link>
		<comments>http://readingbyeugene.com/2012/02/13/television-in-putins-russia/#comments</comments>
		<pubDate>Mon, 13 Feb 2012 19:11:16 +0000</pubDate>
		<dc:creator>readingbyeugene</dc:creator>
				<category><![CDATA[links of the day]]></category>
		<category><![CDATA[Russia]]></category>
		<category><![CDATA[Russian television]]></category>
		<category><![CDATA[Russian TV]]></category>
		<category><![CDATA[Russian TV shows]]></category>
		<category><![CDATA[television]]></category>

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		<description><![CDATA[There are two targeted TV audiences in Russia these days: older Russians who are nostalgic for their pre-perestroika youth and younger viewers who are curious about a Communist system that today seems unimaginable. This New York Times piece profiles some of the shows: The jokes on a new Russian sitcom called “The Eighties,” are punctuated [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=readingbyeugene.com&amp;blog=11343307&amp;post=1667&amp;subd=readingbyeugene&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>There are two targeted TV audiences in Russia these days: older Russians who are nostalgic for their pre-perestroika youth and younger viewers who are curious about a Communist system that today seems unimaginable. This <em>New York Times</em> piece <a href="http://www.nytimes.com/2012/02/13/arts/television/in-putins-russia-tv-mirrors-longing-for-normalcy.html?pagewanted=all">profiles</a> some of the shows:</p>
<blockquote><p><em>The jokes on a new Russian sitcom called “The Eighties,” are punctuated with faded archival footage; Moscow without neon or traffic and Russians lining up around the block to buy sausage. It’s a coming-of-age comedy like “That ’70s Show” or “Happy Days” but focused on the naïveté and insularity of Soviet society in a way that makes viewers feel sophisticated and modern. A nerdy university student tries to impress a pretty girl who just moved back from France. “When I was a kid, I went abroad too,” he boasts. “Mongolia.”</em></p></blockquote>
<p>And Russia&#8217;s version of <em>The Bachelor</em>:</p>
<blockquote><p><em>“Let’s Get Married!” is a dating show like “The Bachelor,” but without the time — or budget — for sunset balloon rides across Moldovan wine country or hot-tub getaways on the Black Sea. Instead, it brings a jolt of Slavic fatalism to romance: the bachelor has his choice of three eligible and comely young women, but first he must listen to the advice and commentary of a panel of older women who cross-examine him and the potential brides. Also, for no better reason than a flair for excess, the bachelor and his prospective brides sometimes wear theme costumes: he as a hussar officer and they as Tolstoyian ballroom belles, he as Aladdin and they as a harem of belly dancers.</em></p></blockquote>
<p>Still playing today, my favorite Russian TV show is <a href="http://en.wikipedia.org/wiki/What%3F_Where%3F_When%3F">Что? Где? Когда?</a>, a very exciting and challenging team trivia game.</p>
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		<title>Twitter, Facebook, and Personality Type</title>
		<link>http://readingbyeugene.com/2012/02/13/twitter-facebook-and-personality-type/</link>
		<comments>http://readingbyeugene.com/2012/02/13/twitter-facebook-and-personality-type/#comments</comments>
		<pubDate>Mon, 13 Feb 2012 18:51:55 +0000</pubDate>
		<dc:creator>readingbyeugene</dc:creator>
				<category><![CDATA[links of the day]]></category>
		<category><![CDATA[Facebook]]></category>
		<category><![CDATA[personality]]></category>
		<category><![CDATA[study]]></category>
		<category><![CDATA[Twitter]]></category>

		<guid isPermaLink="false">http://readingbyeugene.com/?p=1665</guid>
		<description><![CDATA[What can one glean of someone&#8217;s personality type based on preference for Twitter vs. Facebook usage? David Hughes at Manchester Business School and his colleagues surveyed 300 people online and were scored on the &#8221;big five&#8221; personality factors of extraversion, neuroticism, conscientiousness, openness, and agreeableness. The study&#8217;s findings are summarized here: People who used Facebook mostly for socialising [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=readingbyeugene.com&amp;blog=11343307&amp;post=1665&amp;subd=readingbyeugene&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>What can one glean of someone&#8217;s personality type based on preference for Twitter vs. Facebook usage? <a href="http://www.e-metrixx.com/">David Hughes</a> at Manchester Business School and his colleagues surveyed 300 people online and were scored on the &#8221;big five&#8221; personality factors of extraversion, neuroticism, conscientiousness, openness, and agreeableness. The study&#8217;s findings are summarized <a href="http://bps-research-digest.blogspot.com/2012/02/facebook-or-twitter-what-does-your.html">here</a>:</p>
<blockquote><p><em>People who used Facebook mostly for socialising tended to score more highly on sociability and neuroticism (consistent with past research suggesting that shy people use the site to forge social ties and combat loneliness). Social use of Twitter correlated with higher sociability and openness (but not neuroticism) and with lower scores on conscientiousness. <strong>This suggests that social Twitter users don&#8217;t use it so much to combat loneliness, but more as a form of social procrastination</strong>. </em></p>
<p><em>What about using the sites as an informational tool? There was an intriguing divergence here. People who said they used Facebook as an informational tool tended to score higher on neuroticism, sociability, extraversion and openness, but lower on conscientiousness and &#8220;need for cognition&#8221;. Informational users of Twitter were the mirror opposite: they scored higher on conscientiousness and &#8220;need for cognition&#8221;, but lower on neuroticism, extraversion and sociability. The researchers interpreted these patterns as suggesting that Facebook users seek and share information as a way of avoiding more cognitively demanding sources such as journal articles and newspaper reports. Twitter users, by contrast, use the site for its cognitive stimulation &#8211; as a way of uncovering useful information and material without socialising (this was particularly true for older participants).</em></p>
<p><em>Finally, what about people&#8217;s overall preference for Twitter or Facebook? Again, people who scored higher in &#8220;need for cognition&#8221; tended to prefer Twitter, whilst higher scorers in sociability, neuroticism and extraversion tended to prefer Facebook. Simplifying the results, one might say that Facebook is the more social of the two social networking sites, whereas Twitter is more about sharing and exchanging information. </em></p></blockquote>
<p>It&#8217;s an interesting study, though I would have liked to see a sample size of a magnitude higher, and more balanced with the female-male ratio.</p>
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		<title>Smart People Ask Questions</title>
		<link>http://readingbyeugene.com/2012/02/13/smart-people-ask-questions/</link>
		<comments>http://readingbyeugene.com/2012/02/13/smart-people-ask-questions/#comments</comments>
		<pubDate>Mon, 13 Feb 2012 13:45:56 +0000</pubDate>
		<dc:creator>readingbyeugene</dc:creator>
				<category><![CDATA[links of the day]]></category>
		<category><![CDATA[intelligence]]></category>
		<category><![CDATA[society]]></category>

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		<description><![CDATA[This Harvard graduate makes a few conclusions about smart people: I have noticed one overarching theme among smart people: they ask questions. When someone explains something new to me, I’ll usually just nod my head like I know what they’re talking about. If I don’t understand something, I’ll just Google it later. After all, I don’t want [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=readingbyeugene.com&amp;blog=11343307&amp;post=1662&amp;subd=readingbyeugene&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>This Harvard graduate <a href="http://tmac721.tumblr.com/post/17500383225/what-ive-learned-about-smart-people">makes a few conclusions</a> about smart people:</p>
<blockquote><p><em>I have noticed one overarching theme among smart people: <strong>they ask questions.</strong> When someone explains something new to me, I’ll usually just nod my head like I know what they’re talking about. If I don’t understand something, I’ll just Google it later. After all, I don’t want this person to think I’m a moron. Smart people are different. If they don’t understand something, or even if they think they understand something, they’ll ask questions. I distinctly remember, as an immature and perhaps arrogant freshman, a guest lecture in one of my classes. After explaining what I thought was a straightforward concept, the guest lecturer asked if anyone had any questions. Looking around the room, every student simply nodded, indicating everything was clear. A question, however, came from a tenured professor who had undoubtedly been exposed to the material before. At the time, I thought nothing of it, and perhaps even thought that I was smarter than the professor because I understood a concept he/she didn’t. Now, I am confident that this professor did not ask the question just to make the guest lecturer feel better, to start a discussion, or anything else. The intonation of the question and the intensity with which the professor listened to the response definitively suggested that the professor’s question was genuine, and that the answer was of great importance.</em></p>
<p><em>Based on the research and findings of so many of the students and professors here, it’s clear that this trend is no accident. Not only do smart people ask questions when they don’t understand something, but they also ask questions when the world thinks it understands something. Smart people challenge the very limit of human understanding, and push the envelope of what’s possible farther than many people would argue it’s meant to be pushed. Smart people don’t take claims at face value, and smart people don’t rest until they find an explanation they’re comfortable accepting and understanding.</em></p></blockquote>
<p>There&#8217;s a lot to add here, especially in terms of introversion and extroversion of individuals and their ability/desire to ask questions. But the author&#8217;s point is a good one.</p>
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		<title>Gorgeous Timelapse of Saint Petersburg, Russia</title>
		<link>http://readingbyeugene.com/2012/02/11/gorgeous-timelapse-of-saint-petersburg-russia/</link>
		<comments>http://readingbyeugene.com/2012/02/11/gorgeous-timelapse-of-saint-petersburg-russia/#comments</comments>
		<pubDate>Sun, 12 Feb 2012 03:37:33 +0000</pubDate>
		<dc:creator>readingbyeugene</dc:creator>
				<category><![CDATA[video]]></category>
		<category><![CDATA[Russia]]></category>
		<category><![CDATA[Saint Petersburg]]></category>
		<category><![CDATA[Timelapse]]></category>

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		<description><![CDATA[This is a gorgeous timelapse video of one of the most beautiful cities in the world, Saint Petersburg, Russia. Watch as we get numerous overhead views of the city, including a stunning fireworks display over the Neva River. For the stunning closing, we see the opening and closing of the Palace Bridge over the Neva [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=readingbyeugene.com&amp;blog=11343307&amp;post=1657&amp;subd=readingbyeugene&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>This is a gorgeous timelapse video of one of the most beautiful cities in the world, Saint Petersburg, Russia. Watch as we get numerous overhead views of the city, including a stunning fireworks display over the Neva River. For the stunning closing, we see the opening and closing of the <a href="http://www.saint-petersburg.com/bridges/palace-bridge.asp">Palace Bridge</a> over the Neva River.</p>
<p>The video was shot by <a href="http://vk.com/an_ef">Andrew Efimov</a> using Canon 7D and 5D Mark II cameras. The cut scenes are of a violin duet by Igot Zalivalov and Sofia Bridge. What a beautiful composition as a whole. Highly recommended seeing this one <a href="https://vimeo.com/36397732">large</a>.</p>
<div class='embed-vimeo' style='text-align:center;'><iframe src='http://player.vimeo.com/video/36397732' width='400' height='300' frameborder='0'></iframe></div>
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		<title>Thought Experiment: The End of the NFL</title>
		<link>http://readingbyeugene.com/2012/02/10/thought-experiment-the-end-of-the-nfl/</link>
		<comments>http://readingbyeugene.com/2012/02/10/thought-experiment-the-end-of-the-nfl/#comments</comments>
		<pubDate>Fri, 10 Feb 2012 21:45:20 +0000</pubDate>
		<dc:creator>readingbyeugene</dc:creator>
				<category><![CDATA[links of the day]]></category>
		<category><![CDATA[longreads]]></category>
		<category><![CDATA[football]]></category>
		<category><![CDATA[Kevin Grier]]></category>
		<category><![CDATA[NFL]]></category>
		<category><![CDATA[sports]]></category>
		<category><![CDATA[Tyler Cowen]]></category>

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		<description><![CDATA[The NFL season may be over, but the conversation on the growing phenomenon of head injuries and cognitive problems among football players will continue. Tyler Cowen and Kevin Grier contemplate a thought experiment on the demise of the NFL: Before you say that football is far too big to ever disappear, consider the history: If you [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=readingbyeugene.com&amp;blog=11343307&amp;post=1650&amp;subd=readingbyeugene&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>The NFL season may be over, but the conversation on the growing phenomenon of head injuries and cognitive problems among football players will continue. Tyler Cowen and Kevin Grier <a href="http://www.grantland.com/story/_/id/7559458/cte-concussion-crisis-economic-look-end-football">contemplate a thought experiment</a> on the demise of the NFL:</p>
<blockquote><p><em>Before you say that football is far too big to ever disappear, consider the history: If you look at the stocks in the Fortune 500 from 1983, for example, 40 percent of those companies no longer exist. The original version of Napster no longer exists, largely because of lawsuits. No matter how well a business matches economic conditions at one point in time, it&#8217;s not a lock to be a leader in the future, and that is true for the NFL too. Sports are not immune to these pressures. In the first half of the 20th century, the three big sports were baseball, boxing, and horse racing, and today only one of those is still a marquee attraction.</em></p>
<p><em>The most plausible route to the death of football starts with liability suits. Precollegiate football is already sustaining 90,000 or more concussions each year. If ex-players start winning judgments, insurance companies might cease to insure colleges and high schools against football-related lawsuits. Coaches, team physicians, and referees would become increasingly nervous about their financial exposure in our litigious society. If you are coaching a high school football team, or refereeing a game as a volunteer, it is sobering to think that you could be hit with a $2 million lawsuit at any point in time. A lot of people will see it as easier to just stay away. More and more modern parents will keep their kids out of playing football, and there tends to be a &#8220;contagion effect&#8221; with such decisions; once some parents have second thoughts, many others follow suit. We have seen such domino effects with the risks of smoking or driving without seatbelts, two unsafe practices that were common in the 1960s but are much rarer today. The end result is that the NFL&#8217;s feeder system would dry up and advertisers and networks would shy away from associating with the league, owing to adverse publicity and some chance of being named as co-defendants in future lawsuits.</em></p></blockquote>
<p>They contemplate it might take some time, at least ten years:</p>
<blockquote><p><em>Imagine the timeline. A couple more college players — or worse, high schoolers — commit suicide with autopsies showing CTE. A jury makes a huge award of $20 million to a family. A class-action suit shapes up with real legs, the NFL keeps changing its rules, but it turns out that less than concussion levels of constant head contact still produce CTE. Technological solutions (new helmets, pads) are tried and they fail to solve the problem. Soon high schools decide it isn&#8217;t worth it. The Ivy League quits football, then California shuts down its participation, busting up the Pac-12. Then the Big Ten calls it quits, followed by the East Coast schools. Now it&#8217;s mainly a regional sport in the southeast and Texas/Oklahoma. The socioeconomic picture of a football player becomes more homogeneous: poor, weak home life, poorly educated. Ford and Chevy pull their advertising, as does IBM and eventually the beer companies.</em></p></blockquote>
<p><a href="http://www.grantland.com/story/_/id/7559458/cte-concussion-crisis-economic-look-end-football">Very interesting read</a>. Will the day ever come when Americans refer to soccer when they say football?</p>
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		<title>Why Presidents Fail</title>
		<link>http://readingbyeugene.com/2012/02/10/why-presidents-fail/</link>
		<comments>http://readingbyeugene.com/2012/02/10/why-presidents-fail/#comments</comments>
		<pubDate>Fri, 10 Feb 2012 18:45:04 +0000</pubDate>
		<dc:creator>readingbyeugene</dc:creator>
				<category><![CDATA[links of the day]]></category>
		<category><![CDATA[longreads]]></category>
		<category><![CDATA[Barack Obama]]></category>
		<category><![CDATA[james fallows]]></category>
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		<description><![CDATA[From this extensive piece on Barack Obama and his presidency, James Fallows considers why presidents fail: We judge presidents by the specific expectations they ask to be measured against: inspiration (Kennedy, Reagan, Obama), competence and experience (Eisenhower, the first George Bush), strategic cunning (Johnson, Nixon), integrity and personal probity (Carter), inclusiveness and empathy (Clinton), unshakable [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=readingbyeugene.com&amp;blog=11343307&amp;post=1645&amp;subd=readingbyeugene&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>From <a href="http://www.theatlantic.com/magazine/archive/2012/02/obama-explained/8874/?single_page=true">this extensive piece</a> on Barack Obama and his presidency, James Fallows considers why presidents fail:</p>
<blockquote><p><em>We judge presidents by the specific expectations they ask to be measured against: inspiration (Kennedy, Reagan, Obama), competence and experience (Eisenhower, the first George Bush), strategic cunning (Johnson, Nixon), integrity and personal probity (Carter), inclusiveness and empathy (Clinton), unshakable resolve (the second Bush). But eventually each is judged against his predecessors, a process that properly starts with a reminder that all begin their terms ill-equipped, in ways that hindsight tends to obscure.</em></p>
<p><em>The sobering realities of the modern White House are: All presidents are unsuited to office, and therefore all presidents fail in certain crucial aspects of the job. All betray their supporters and provoke bitter criticism from their own side at some point in their term. And all are mis-assessed while in office, for reasons that typically depend more on luck and historical accident than on factors within their control. These realities do not excuse Obama’s failings, but they do put his evolution in perspective.</em></p>
<p><em>Presidents fail because not to fail would require, in the age of modern communications and global responsibilities, a range of native talents and learned skills no real person has ever possessed. These include “smarts” in the normal sense—the analytical ability to cope with the stream of short- and long-term decisions that come at a president nonstop. (How serious is the latest provocation out of North Korea? What are the “out year” budget implications of a change in Medicaid repayment formulas?) A president needs rhetorical clarity and eloquence, so that he can explain to publics at home and around the world the intent behind his actions and—at least as important—so that everyone inside the administration understands his priorities clearly enough that he does not have to wade into every little policy fight to enforce his preferences.</em></p>
<p><em>A president needs empathy and emotional intelligence, so that he can prevail in political dealings with his own party and the opposition in Washington, and in face-to-face negotiations with foreign leaders, who otherwise will go away saying that this president is “weak” and that the country’s leadership role is suspect. He needs to be confident but not arrogant; open-minded but not a weather vane; resolute but still adaptable; historically minded but highly alert to the present; visionary but practical; personally disciplined but not a prig or martinet. He should be physically fit, disease-resistant, and capable of being fully alert at a moment’s notice when the phone rings at 3 a.m.—yet also able to sleep each night, despite unremitting tension and without chemical aids.</em></p></blockquote>
<p>Regardless of your political stance, I suggest setting aside an hour to <a href="http://www.theatlantic.com/magazine/archive/2012/02/obama-explained/8874/?single_page=true">read this piece</a> by James Fallows.</p>
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		<title>The Rise of V for Vendetta</title>
		<link>http://readingbyeugene.com/2012/02/10/the-rise-of-v-for-vendetta/</link>
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		<pubDate>Fri, 10 Feb 2012 18:40:28 +0000</pubDate>
		<dc:creator>readingbyeugene</dc:creator>
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		<category><![CDATA[V for Vendetta]]></category>

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		<description><![CDATA[First published in 1982, the comic series V for Vendetta charted a masked vigilante&#8217;s attempt to bring down a fascist British government and its complicit media. Many of the demonstrators are expected to wear masks based on the book&#8217;s central character. The BBC asked Alan Moore, author of V for Vendetta, for his thoughts on [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=readingbyeugene.com&amp;blog=11343307&amp;post=1643&amp;subd=readingbyeugene&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>First published in 1982, the comic series <em>V for Vendetta</em> charted a masked vigilante&#8217;s attempt to bring down a fascist British government and its complicit media. Many of the demonstrators are expected to wear masks based on the book&#8217;s central character.</p>
<p>The BBC <a href="http://www.bbc.co.uk/news/technology-16968689">asked</a> Alan Moore, author of V for Vendetta, for his thoughts on how his creation had become an inspiration and identity to Anonymous and other protesters around the world.</p>
<blockquote><p><em>At the start of the 1980s when the ideas that would coalesce into V for Vendetta were springing up from a summer of anti-Thatcher riots across the UK coupled with a worrying surge from the far-right National Front, Guy Fawkes&#8217; status as a potential revolutionary hero seemed to be oddly confirmed by circumstances surrounding the comic strip&#8217;s creation: it was the strip&#8217;s artist, David Lloyd, who had initially suggested using the Guy Fawkes mask as an emblem for our one-man-against-a-fascist-state lead character.</em></p>
<p><em>When this notion was enthusiastically received, he decided to buy one of the commonplace cardboard Guy Fawkes masks that were always readily available from mid-autumn, just to use as convenient reference.</em></p>
<p><em>To our great surprise, it turned out that this was the year (perhaps understandably after such an incendiary summer) when the Guy Fawkes mask was to be phased out in favour of green plastic Frankenstein monsters geared to the incoming celebration of an American Halloween.</em></p>
<p><em>It was also the year in which the term &#8220;Guy Fawkes Night&#8221; seemingly disappeared from common usage, to be replaced by the less provocative &#8216;bonfire night&#8217;.</em></p></blockquote>
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		<title>On Failing vs. Forgetting</title>
		<link>http://readingbyeugene.com/2012/02/10/on-failing-vs-forgetting/</link>
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		<pubDate>Fri, 10 Feb 2012 13:53:39 +0000</pubDate>
		<dc:creator>readingbyeugene</dc:creator>
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		<description><![CDATA[Bryan Caplan writes: According to the human capital model, failing (i.e., never knowing) course material should have exactly the same career consequences as forgetting (i.e., no longer knowing) course material.  Either way, you lack the skills &#8211; and the labor market should treat you accordingly. According to the signaling model, in contrast, the consequences of failing and [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=readingbyeugene.com&amp;blog=11343307&amp;post=1639&amp;subd=readingbyeugene&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>Bryan Caplan <a href="http://econlog.econlib.org/archives/2012/02/the_career_cons.html">writes</a>:</p>
<blockquote><p><em>According to the human capital model, failing (i.e., never knowing) course material should have exactly the same career consequences as forgetting (i.e., no longer knowing) course material.  Either way, you lack the skills &#8211; and the labor market should treat you accordingly.</em></p>
<p><em>According to the signaling model, in contrast, the consequences of failing and forgetting can totally diverge. When you fail to learn useless material, you send a bad signal.  When you demonstrate mastery of useless material, you send a good signal &#8211; whether or not retain what you learned.  Employers naturally snub people who fail, yet smile upon those who merely forget.</em></p></blockquote>
<p>Caplan is right on both accounts. But what he neglects to consider is, for instance, employers&#8217; interpretation of the signal. If someone failed their computer science courses, for example, it&#8217;s highly unlikely they&#8217;ll do well as a computer scientist. On the other hand, if someone studied computer science in undergrad, did quite well, but chose to go into another field upon graduation (and consequently forgot most of what he learned in those CS courses), is that equivalent to the student who failed most of his courses? Absolutely not. Why? Because the person who has mastered the courses previously has a very likely chance of re-learning the material. What&#8217;s more, he&#8217;ll do so quicker because he has familiarity with the material better than the person who failed.</p>
<p>It comes down to this: in most cases, the person who forgets is a better candidate than the one who failed.</p>
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		<title>On Art as Investment</title>
		<link>http://readingbyeugene.com/2012/02/09/on-art-as-investment/</link>
		<comments>http://readingbyeugene.com/2012/02/09/on-art-as-investment/#comments</comments>
		<pubDate>Thu, 09 Feb 2012 20:28:45 +0000</pubDate>
		<dc:creator>readingbyeugene</dc:creator>
				<category><![CDATA[links of the day]]></category>
		<category><![CDATA[art]]></category>
		<category><![CDATA[finance]]></category>
		<category><![CDATA[investment]]></category>

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		<description><![CDATA[Sarah Thornton writes about the &#8220;gravity-defying surge&#8221; of people buying art as investments: The bulk of revenues comes from &#8220;ultra high net worth&#8221; individuals, many of whom operate at a level far above national economies. Even those who have taken blows in recent years remain super-rich. If they were worth £3bn in 2007, maybe they&#8217;re [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=readingbyeugene.com&amp;blog=11343307&amp;post=1637&amp;subd=readingbyeugene&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>Sarah Thornton <a href="http://www.guardian.co.uk/commentisfree/2012/feb/05/art-recession-dodging-super-rich">writes</a> about the &#8220;gravity-defying surge&#8221; of people buying art as investments:</p>
<blockquote><p><em>The bulk of revenues comes from &#8220;ultra high net worth&#8221; individuals, many of whom operate at a level far above national economies. Even those who have taken blows in recent years remain super-rich. If they were worth £3bn in 2007, maybe they&#8217;re worth £2bn now. It&#8217;s not like they&#8217;re feeling the pinch.</em></p>
<p><em>The burden for the stinking rich is what to do with their money. There is currently no interest to be earned on cash, so they can&#8217;t leave it in the bank. The property market is nearly paralysed and, for these globetrotters, the drawback of real estate is that it is tied to specific currencies. A Mayfair flat sells in pounds, but the Francis Bacon painting that hangs on its wall could sell in Hong Kong dollars and take up residence on a yacht in the South Pacific. Like historic or extra-large diamonds, works by artists with international recognition are a hedge against volatile currency fluctuations.</em></p>
<p><em>Fifteen years ago financial advisers were not in the practice of recommending that rich people diversify their portfolios by buying art. Now it is the norm. While buying emergent art is high-risk, speculative investment, acquiring established masterpieces is perceived as the opposite – a back-up in hard times. If all goes wrong in the world, if the eurozone cracks, the Middle East erupts in war, and a tsunami hits Manhattan, that rare, portable 1964 Marilyn by Andy Warhol will still be worth something.</em></p>
<p><em>The auction houses are fostering a globalisation of taste with the help of galleries with international outposts such as Gagosian, Hauser &amp; Wirth and now White Cube. While wealthy Belgians used to spend their money differently from wealthy Indonesians, this is decreasingly the case.</em></p></blockquote>
<p>Felix Salmon <a href="http://blogs.reuters.com/felix-salmon/2012/02/08/weird-art-valuation-justifications-of-the-day-sarah-thornton-edition/">counters</a>:</p>
<blockquote><p><em>This would be a lot more convincing if Thornton actually named or quoted any of the financial advisers who are reportedly “recommending” buying art as an investment. Because I’d love to talk to one. Art’s a dreadful investment: it’s got a negative carry, it’s highly unpredictable in terms of value, there’s no reason whatsoever why prices should go up rather than down, and, of course, you can <a href="http://www.newyorker.com/archive/2006/10/23/061023ta_talk_paumgarten">put your elbow through it</a> at any time.</em></p>
<p><em>In my experience, the only people who ever recommend that rich people diversify their portfolios by buying art are people who are going to make money, somehow, from the deal: people selling art investment or advisory services. Everybody else is generally pretty sensible, and sticks to saying the simple truth: Buy art because you love it, not because you think it’s going to rise in value.</em></p>
<p><em>More generally, the stinking rich are, as a rule, swamped with bright ideas from people guiding them on what to do with their money. They all have family offices, replete with highly-paid investment managers: The alternative here is not to simply leave the money in the bank, earning no interest. (More likely, they own the bank, take other people’s deposits, and lend them out at a healthy profit.)</em></p>
<p><em>And the idea of art as “a hedge against volatile currency fluctuations” is just bonkers; I’m not at all surprised that the line appears in a column for the Guardian, rather than in Thornton’s normal home of the Economist. If you have billions of dollars and you want to hedge against currency fluctuations, then — and I hope you’re sitting down for this — you hedge against currency fluctuations. Options and swaps and futures and forwards and the like are as commoditized as they come in the foreign-exchange markets, and much easier and cheaper to buy and sell than any major artwork.</em></p>
<p><em>Thornton’s wrong, too, about the intrinsic value of a 1964 Marilyn by Andy Warhol. If it was worth 10% of its current value a few years ago, it can be worth 10% of its current value in a few years’ time, too. Admittedly, 10% of its current value is still “something”. But that hardly makes the Warhol a remotely sensible investment. <strong>The whole point of art is that it has no intrinsic value: that its financial value is a magical number which is some highly variable function of how much various incredibly rich people love and covet the work</strong>.</em></p></blockquote>
<p>I agree with Felix Salmon. Artwork is not a viable investment: it&#8217;s illiquid and highly speculative and subject to modern tastes and preferences. Buy artwork because you enjoy looking at it on your wall. Don&#8217;t buy it thinking that you can sell it later for a profit.</p>
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