Tony Blair’s Big Question

April 3rd, 2014 [link]

“Have you figured out how I can be on the right side of history without being on the wrong side of now?”

New Yorker cartoon showing a politician querying his staff.

Quote of the Day

April 3rd, 2014 [link]

“Many of history’s great inventions are really great appropriations — middling ideas if used as intended, brilliant when reoriented or co-opted.”

Kathryn Schultz, The New Yorker, April 7, 2014.

The unknown known

April 2nd, 2014 [link]

This I want to see.

What Zuckerberg is really up to

April 2nd, 2014 [link]

Very perceptive post by Felix Salmon. The gist:

Is it too early to declare that Zuckerberg has ambitions to become the Warren Buffett of technology? Look at his big purchases — Instagram, WhatsApp, Oculus. None of them are likely to be integrated into the core Facebook product any time soon; none of them really make it better in any visible way. I’m sure he promised something similar to Snapchat, too.

Zuckerberg knows how short-lived products can be, on the internet: he knows that if he wants to build a company which will last decades, it’s going to have to outlast Facebook as we currently conceive it. The trick is to use Facebook’s current awesome profitability and size to acquire a portfolio of companies; as one becomes passé, the next will take over. Probably none of them will ever be as big and dominant as Facebook is today, but that’s OK: together, they can be huge.

Zuckerberg is also striking while the iron is hot. Have you noticed how your Facebook news feed is filling up with a lot of ads these days? Zuckerberg is, finally, monetizing, and he’s doing it at scale: Facebook’s net income grew from $64 million in the fourth quarter of 2012 to $523 million in the fourth quarter of 2013. At the same time, his stock — which he is aggressively using to make acquisitions — is trading at a p/e of 100. If you’re going shopping with billions of dollars in earnings multiplied by a hundred, you can buy just about anything you like.

Eventually, inevitably, Facebook (the product) will lose its current dominance. But by that point, Facebook (the company) will have so many fingers in so many pies that it might not matter.

Hmmm… We’ll see.

Why Snapchat is interesting

April 2nd, 2014 [link]

As usual, danah boyd nails it:

Snapchat offers a different proposition. Everyone gets hung up on how the disappearance of images may (or may not) afford a new kind of privacy. Adults fret about how teens might be using this affordance to share inappropriate (read: sexy) pictures, projecting their own bad habits onto youth. But this is isn’t what makes Snapchat utterly intriguing. What makes Snapchat matter has to do with how it treats attention.

When someone sends you an image/video via Snapchat, they choose how long you get to view the image/video. The underlying message is simple: You’ve got 7 seconds. PAY ATTENTION. And when people do choose to open a Snap, they actually stop what they’re doing and look.

In a digital world where everyone’s flicking through headshots, images, and text without processing any of it, Snapchat asks you to stand still and pay attention to the gift that someone in your network just gave you. As a result, I watch teens choose not to open a Snap the moment they get it because they want to wait for the moment when they can appreciate whatever is behind that closed door. And when they do, I watch them tune out everything else and just concentrate on what’s in front of them. Rather than serving as yet-another distraction, Snapchat invites focus.

Furthermore, in an ecosystem where people “favorite” or “like” content that is inherently unlikeable just to acknowledge that they’ve consumed it, Snapchat simply notifies the creator when the receiver opens it up. This is such a subtle but beautiful way of embedding recognition into the system. Sometimes, a direct response is necessary. Sometimes, we need nothing more than a simple nod, a way of signaling acknowledgement. And that’s precisely why the small little “opened” note will bring a smile to someone’s face even if the recipient never said a word.

Snapchat is a reminder that constraints have a social purpose, that there is beauty in simplicity, and that the ephemeral is valuable. There aren’t many services out there that fundamentally question the default logic of social media and, for that, I think that we all need to pay attention to and acknowledge Snapchat’s moves in this ecosystem.

My idea of a perfect blog post. It’s insightful, thought-provoking and beautifully written.

More NSA fallout?

April 2nd, 2014 [link]

Nearly half the nation’s adults changed their behavior online because of the National Security Agency’s NSA snooping programs, according to a new poll.The Harris Interactive survey found that 47 percent of adults were thinking more carefully about what they do, what they say or where they go on the Internet in light of the spying revelations that began emerging last summer.ADVERTISEMENTMore than a quarter of the 2,000 people surveyed said they were doing less banking online, and 24 percent said they were less inclined to use email.


Balance as Bias — redux

April 2nd, 2014 [link]

Apropos the discussion of the latest IPCC climate change report, there was a discussion on Radio 4′s Today programme this morning about the media’s role in public (mis)understanding of the problem. I’m glad to see that the travesty of having Nigel Lawson on the programme recently to ‘balance’ a leading climate scientist was discussed. It was an example of the old “balance as bias” problem.

The guy who really nailed this in words of one syllable is Paul Krugman. When the topic of media bias came up in a session he did with Harvard students years ago, he said something like this (I’m paraphrasing):

Here’s the problem. Dick Cheney [then US Vice President] says that the earth is flat. Here’s how the New York Times reports it: “VP says Earth Flat; Others Disagree”.

This is where American journalism’s concern with not having a point of view becomes pathological. The earth isn’t flat. Never was. And there’s a high probability that human intervention is warming the planet.

Quote of the Day

April 1st, 2014 [link]

“At times, the act of following Egyptian politics seems almost cruel — it’s like watching a lightning-fast sport played very badly, with every mistake reviewed in excruciating slow motion”.

Peter Hessler, The New Yorker, March 10, 2014

Michael Lewis on Lightspeed

April 1st, 2014 [link]

Michael Lewis is, IMHO, one of the best long-form journalists around and his new book is well up to his usual standard. In many ways, it adheres to the classic Lewis formula: find a scandalous set-up of which most people are blissfully unaware; locate some smart guys who have detected the systemic scam and figured out a way to profit from their ingenuity; and then tell their story.

In this case, the story is basically about the speed of light – or, to be more precise, about how the time-difference (in millionths of a second) that it takes an electronic share transaction to traverse one fibre-optic connection rather than another can provide an exceedingly lucrative trading advantage to those who have the kit and the know-how to exploit it.

In the video clip he explains the nub of the idea but, as always, it’s not so much the story as the way Lewis tells it — which is why his book is a must-read for anyone who cares about this stuff.

Writing about it in Quartz, Matt Phillips quotes from another part of the TV interview

“If it wasn’t complicated, it wouldn’t be allowed to happen,” he says. ”The complexity disguises what is happening. If it’s so complicated you can’t understand it, then you can’t question it.”

“This problem”, Phillips says, “goes beyond stock markets: The US financial system is awash in unnecessary complexity. And the reasons are simple: Complexity is profitable and it keeps regulators at bay. ”The jargon of bankers and banking experts is deliberately impenetrable,” wrote economists Anat Admati and Martin Hellwig in their indispensible The Bankers’ New Clothes: What’s Wrong with Banking and What to Do about It. “This impenetrability helps them confuse policy makers and the public.”

There are some echoes of the sub-prime/CDO scandal in Lewis’s new book, in that the people who are supposed to understand how the system worked had little or no idea what was going on under their corporate noses. He recounts how the ‘good’ guys in his tale discovered this when they sought to enlighten leading figures in the financial world about flash trading:

The most sophisticated investors didn’t know what was going on in their own market. Not the big mutual funds, Fidelity and Vanguard. Not the big money-management firms like T. Rowe Price and Capital Group. Not even the most sophisticated hedge funds. The legendary investor David Einhorn, for instance, was shocked; so was Dan Loeb, another prominent hedge-fund manager.

This is an indicator of a really serious underlying problem in our networked world — the stupendous power that superior knowledge, IQ and technical understanding confers on some people. We are completely dependent on systems that are so complex that virtually nobody understands how they work — and how they can be manipulated and gamed by those who do understand them. The obvious rejoinder is “twas ever thus”, but I think that’s too complacent. What’s different now is that the level of technical expertise needed is beyond the reach or capacity of almost everyone. Which means that the elites who do ‘get’ it — and those who employ them — have colossal advantages.

LATER The book has made a BIG impact, to judge from the media coverage, and mostly the reactions have been complimentary. But there were a few contrary opinions. And Andrew Ross Sorkin, writing in the New York Times made some good points.

There is only one problem with Mr. Lewis’s tale: He reserves blame for the wrong villains. He points mostly to the hedge funds and investment banks engaged in high-frequency trading.

But Mr. Lewis seemingly glosses over the real black hats: the big stock exchanges, which are enabling — and profiting handsomely — from the extra-fast access they are providing to certain investors.

While the big Wall Street banks may have invented high-speed trading, it has gained widespread use because it has been encouraged by stock markets like the New York Stock Exchange, Nasdaq and Bats, an electronic exchange that was a pioneer in this area. These exchanges don’t just passively allow certain investors to connect to their systems. They have created systems and pricing tiers specifically for high-speed trading. They are charging higher rates for faster speeds and more data for select clients. The more you pay, the faster you trade.

That is the real problem: The exchanges have a financial incentive to create an uneven playing field.

Footnote: Readers on IoS devices may not be able to see the video clip, for reasons best known to the late Steve Jobs.

Lessig on Equality

March 31st, 2014 [link]

Larry Lessig is the most compelling lecturer I know. Here he is talking about equality and the dysfunctionality of the US political system.