Dirty money and university funding

Lovely rant by Simon Jenkins about LSE.

With felicitous timing, London's Royal Court theatre is staging Richard Bean’s hilarious if chaotic play, Heretic, about a university department eager for a grant from a multinational company and ready to suppress academic rigour to do so. It is clearly based on the University of East Anglia and climate change, but the words LSE and Gaddafi could be substituted throughout.

The global-warming sceptic, played by Juliet Stevenson, is ostracised and driven to madness by her colleagues, as her professor argues that their department is merely a unit to “service clients … a virtual budget centre providing tools to the market”. Eager for money, he quotes a Chinese proverb: “Man must stand for long time with mouth open before roast duck fly in.”

For the LSE, Gaddafi of Libya was pure roast duck. Journalists trawling through the recent jobs, contacts and pronouncements of LSE academics, including directors Lord Giddens and Sir Howard Davies – who has now resigned – have been aghast. Despite references to “the context of the times”, the story is of a respected academic institution apparently in mesmerised thrall to a dictator, and actively participating in sanitising his image.

Gaddafi was seen praised by LSE luminaries in a cringe-making video link as “the world’s longest serving leader”. His son, Saif al-Islam, settled in a north London palace to write an LSE PhD and dispense trips and contracts. He was declared as being committed to “democracy, civil society and deep liberal values” and was even invited to give the Ralph Miliband memorial lecture, an unusual honour for any student. His appreciation was swift. The university accepted a £1m contract to train 400 regime-approved “future leaders” from Libya. The mind boggles at it all.

It does indeed look as though LSE had lost its ethical bearings. But so do most universities when they get drawn into the reality distortion field that surrounds large bodies of money. The Divinity School in Cambridge was built with money from the Hinduja brothers. And Oxford’s Said Business School was built with money from a Syrian arms dealer. American universities are even worse — largely because they are better at fundraising.

I have a friend who was, for a time, deputy head of a major college and whose portfolio included fundraising. He hated it, and once said that, after a day’s schmoozing with potential donors, he felt physically dirty and had to take a shower when he got home. Another prominent academic friend resigned from the Mastership of an Oxbridge college because he couldn’t stand the social and ethical obligations of fundraising.

You don’t have to go to the extreme of believing that “behind every fortune lies a crime” to concede that truly untainted money is very rare. As state funding continues to evaporate, the pressures on universities to prostitute themselves in order to obtain donations from rich individuals will intensify. So we will see more of the ethical doublethink practised by LSE and other elite universities as they pocket the loot while claiming that research priorities and academic values are entirely untouched by theiir mendicancy. It’s nauseating but — hey — ivory towers are expensive to maintain.

iCapitalism

Well, well. Nasty ol’ Steve Jobs rejected this iPhone App. Here’s what the FAQs say.

How do I play?

Click on the Play tab. Then click Increase Your Level. You will be presented with a list of level upgrades you can purchase with real money.

So there’s really no skill involved?

None at all! The person who pays us the most wins. The rest are displayed on a leaderboard in descending order.

Does my money get me anything besides a higher spot on the leaderboard?

When you increase your level you can enter a custom message. All other players can see this when you’re on leaderboard. The top payer player becomes the “Head Honcho,” and their (inevitably more important) message will be the first thing everyone sees when they boot the app.

WikiLeaks and the cowardice of American journalism

I know the British press is nothing to write home about, but I’ve never understood why American journalists take themselves so seriously. They, after all, are the ‘professionals’ who missed Enron, the banking catastrophe and the Bush Administration’s ludicrous case for going to war in Iraq. Until recently, they were also the ‘professionals’ who were so impaled on the horns of the ‘balance as bias’ dilemma that many of them missed the global warming issue. So I’ve been cheering this fiery piece by Naomi Wolf about the slippery way US journalists have been willing to hang Julian Assange out to dry.

Here is what readers are not being told: We have ALL handled classified information if we are serious American journalists. I am waiting for more than a handful of other American reporters, editors and news organizations to have the courage — courage that is in abundance in Tahrir Square and on the pages of Al Jazeera, now that we no longer see it on the editorial page of the New York Times or the Wall Street Journal — to stand up and confirm the obvious. For the assault on Assange to be credible, they would have to come arrest us all. Many of Bob Woodward's bestselling books, which have made him America's highest-paid reporter, are based on classified information — that's why he gets the big bucks. Where are the calls for Woodward's arrest? Indeed Dick Cheney and other highest-level officials in the Bush administration committed the same act as Bradley Manning in this case, when they illegally revealed the classified identity of CIA operative Valerie Plame.

So why do all these American reporters, who know quite well that they get praise and money for doing what Assange has done, stand in a silence that can only be called cowardly, while a fellow publisher faces threats of extradition, banning, prosecution for spying — which can incur the death penalty — and calls for his assassination?

One could say that the reason for the silence has to do with the sexual misconduct charges in Sweden. But any serious journalist in America knows perfectly well that the two issues must not be conflated. The First Amendment applies to rogues and scoundrels. You don't lose your First Amendment rights because of a sleazy personality, or even for having committed a crime. Felons in jail are protected by the First Amendment. Indeed the most famous First Amendment cases, the ones that are supposed to showcase America's strength and moral power, involve the protection of speech most decent people hate…

Wallflowers at the Revolution

Nice rant by Frank Rich in the NYT.

Perhaps the most revealing window into America’s media-fed isolation from this crisis — small an example as it may seem — is the default assumption that the Egyptian uprising, like every other paroxysm in the region since the Green Revolution in Iran 18 months ago, must be powered by the twin American-born phenomena of Twitter and Facebook. Television news — at once threatened by the power of the Internet and fearful of appearing unhip — can’t get enough of this cliché.

Three days after riot police first used tear gas and water hoses to chase away crowds in Tahrir Square, CNN’s new prime-time headliner, Piers Morgan, declared that “the use of social media” was “the most fascinating aspect of this whole revolution.” On MSNBC that same night, Lawrence O’Donnell interviewed a teacher who had spent a year at the American school in Cairo. “They are all on Facebook,” she said of her former fifth-grade students. The fact that a sampling of fifth graders in the American school might be unrepresentative of, and wholly irrelevant to, the events unfolding in the streets of Cairo never entered the equation.

The social networking hype eventually had to subside for a simple reason: The Egyptian government pulled the plug on its four main Internet providers and yet the revolution only got stronger. “Let’s get a reality check here,” said Jim Clancy, a CNN International anchor, who broke through the bloviation on Jan. 29 by noting that the biggest demonstrations to date occurred on a day when the Internet was down. “There wasn’t any Twitter. There wasn’t any Facebook,” he said. No less exasperated was another knowledgeable on-the-scene journalist, Richard Engel, who set the record straight on MSNBC in a satellite hook-up with Rachel Maddow. “This didn’t have anything to do with Twitter and Facebook,” he said. “This had to do with people’s dignity, people’s pride. People are not able to feed their families.”

En passant: it’s been interesting to hear the frustration of intelligent US citizens about the non-availability of Al Jazeera on American cable channels and networks. It’s the old story: “600 channels and nothing on TV”.

What it’s really like in Cairo

If, like me, you’re finding it hard to figure out from the blurred footage on Al Jazeera what’s really going on, this typically vivid Robert Fisk dispatch might help.

Of course, it would be an exaggeration to say that stones cloaked the sky, but at times there were a hundred rocks soaring through the sky. They wrecked an entire army truck, smashing its sides, crushing its windows. The stones came out of side roads off Champollion Street and on Talaat Harb. The men were sweating, headbands in red, roaring their hatred. Many held white cloth to wounds. Some were carried past me, sloshing blood all over the road.

And an increasing number were wearing Islamist dress, short trousers, grey cloaks, long beards, white head caps. They shouted Allahu Akbar loudest and they bellowed their love of God, which was not supposed to be what this was all about. Yes, Mubarak had done it. He had brought the Salafists out against him, alongside his political enemies. From time to time, young men were grabbed, their faces fist-pulped, screaming and fearful of their lives, documentation found on their clothes to prove they worked for Mubarak’s interior ministry.

Many of the protesters – secular young men, pushing their way through the attackers – tried to defend the prisoners. Others – and I noticed an awful lot of “Islamists” among them, complete with obligatory beards – would bang their fists on these poor men’s heads, using big rings on their fingers to cut open their skin so that blood ran down their faces. One youth, red T-shirt torn open, face bloated with pain, was rescued by two massive men, one of whom put the now half-naked prisoner over his shoulder and pushed his way through the crowd.

Thus was saved the life of Mohamed Abdul Azim Mabrouk Eid, police security number 2101074 from the Giza governorate – his security pass was blue with three odd-looking pyramids stamped on the laminated cover. Thus was another man pulled from the mob, squealing and clutching his stomach. And behind him knelt a squadron of women, breaking stones.

There were moments of farce amid all this. In the middle of the afternoon, four horses were ridden into the square by Mubarak’s supporters, along with a camel – yes, a real-life camel that must have been trucked in from the real dead pyramids – their apparently drugged riders hauled off their backs. I found the horses grazing gently beside a tree three hours later. Near the statue of Talaat Harb, a boy sold agwa – a peculiarly Egyptian date-bread delicacy – at 4 pence each – while on the other side of the road, two figures stood, a girl and a boy, holding identical cardboard trays in front of them. The girl’s tray was filled with cigarette packets. The boy’s tray was filled with stones.

And there were scenes that must have meant personal sorrow and anguish for those who experienced them. There was a tall, muscular man, wounded in the face by a slice of stone, whose legs simply buckled beside a telephone junction box, his face sliced open yet again on the metal. And there was the soldier on an armoured personnel carrier who let the stones of both sides fly past him until he jumped on to the road among Mubarak’s enemies, putting his arms around them, tears coursing down his face.

Clueless in Cairo

This is the headline on a great column by Nicholas Kristof in the NYT. What was obvious from the beginning was that the Egyptian popular uprising posed terrible problems for the US, which has spent 30 years cosying up to Mubarak and his thugs (who, among other things, have been very obliging in providing torture services in circumstances where the CIA has been too squeamish). It seems only yesterday that Hilary Clinton was describing the Mubarak regime as “stable”. Kristof points out that not only are the Obama crowd way behind the Egyptian curve, but by making a big deal of their success in persuading the old brute not to run for election they have actually made a bad situation worse for US interests in the longer run. It’s astonishing to watch a powerful and supposedly intelligent Administration make such idiotic decisions. First their response to WikiLeaks. Now this. But let’s hear Kristof on the matter:

I’m afraid that too many Egyptian and American officials have been spending their time talking to each other, and not enough time talking to grassroots Egyptians in Tahrir Square and elsewhere. Everybody I’ve interviewed in Tahrir has said that as a starting point, Mubarak has to resign. Now! People aren’t going to be placated by him saying that he won’t run again – especially since it was never clear that he planned to do so anyway.

Fundamentally, what Egyptians want is not just a change in the individual at the top – although they want that – but also a change in the system. They want a democracy. They want a voice. They want an end to corruption. And now that they’ve found their voices, I don’t think they’re going to be easily silenced.

I’m also struck that the anger at Mubarak is growing. At first, the demands were simply that he leave office. But today on Tahrir, I heard people say and saw signs saying that he should be exiled, put on trial, or even executed. One dramatic sign showed Mubarak in a hangman’s noose.

The point is that there is zero confidence in Mubarak. So the idea that Egyptians would trust him to rule for months more, and possibly engineer a succession to a Mubarak clone, is preposterous.

I also fear that this choreography – sending former diplomat Frank Wisner (whom I admire) to get Mubarak to say he won’t run for reelection — will further harm America’s image. This will come across in Egypt as collusion between Obama and Mubarak to distract the public with a half step; it will be interpreted as dissing the democracy movement once again. This will feed the narrative that it’s the United States that calls the shots in the Mubarak regime, and that it’s the United States that is trying to outmaneuver the democracy movement. In effect, we have confirmed to a suspicious Egyptian public that we are in bed with Mubarak and trying to perpetuate his regime (even without him at the top) in defiance of a popular democratic movement.

Great stuff.

LATER: This interesting piece by Craig Scott in openDemocracy:

On the Egypt front, Luke Johnson in the American Independent reminded us of Secretary of State Clinton’s interview with Al Arabiya TV in Egypt in March 2009.2 Clinton engaged in downplaying to the point of virtual dismissal the relevance of the annual Department of State’s country report on the human rights situation in Egypt. That 2008 report (published in early 2009) discusses in considerable detail the extensive and systemic use of torture by the police and security services in Egypt. That apparatus has been instrumental to sustaining Mubarak in power for the past 30 years (not to mention to the US’ outsourcing of torture-for-intelligence). In response to a journalist’s question, Clinton commented, “We issue these reports on every country. We consider Egypt to be a friend and we engage in very forthright conversations with our friends. And so we hope that it will be taken in the spirit in which it is offered, that we all have room for improvement.”

Where on Earth is Neville? The Met’s investigative zeal

Interesting excerpt from the interrogation of Assistant Commissioner John Yates by the House of Commons – Culture, Media and Sport Committee on September 2, 2009.

Q1891 Chairman: The evidence which the Guardian produced and indeed gave to this Committee actually came from you originally. It is evidence that was handed over to the court from the police investigation—

Mr Yates: Yes, it was unused material.

Q1892 Chairman:— which reached the Guardian. The key one, which you will be familiar with, is the email and “this is the transcript for Neville”. Why did you not think that it was sufficiently important to interview Neville?

Mr Yates: Well, again we took advice on this and it did form part of the original case and formed part of, what we call, the sensitive, unused material. There are a number of factors around it, some practical issues. Firstly, the email itself was dated, I think, 29 July 2005 and we took possession of it in August 2006, so it was already a minimum of 14 months old, that email, that is the minimum and we do not know when it was actually compiled or sent. We know from the phone company records that they are not kept for that period of time, so there was no data available behind that email. There was nothing to say that Neville, whoever Neville may be, had seen the document and, even if the person, Neville, had read the email, that is not an offence. It is no offence of conspiracy, it is no offence of phone-hacking, it is no offence of any sort at all.

Q1893 Chairman: Sorry to interrupt, but you say there is nothing to say whether Neville had read the email, but you could have asked him.

Mr Yates: Well, if I can finish, there is no clear evidence as to who Neville was or who is Neville. It is supposition to suggest Neville Thurlbeck or indeed any other Neville within the News of the World or any other Neville in the journalist community. Mulcaire's computers were seized and examined. There is nothing in relation to Neville or Neville Thurlbeck in those computers and, supported by counsel latterly and by the DPP, they both are of the view, as we are, that there are no reasonable grounds to suspect that Neville has committed any offence whatsoever and no reasonable grounds to go and interview him.

Q1894 Chairman: Well, it does seem an extraordinary coincidence though that somebody working for the News of the World sends an email, saying, "This is the transcript for Neville" when the chief reporter of the News of the World is called Neville and you think that this is not sufficient to ask Neville Thurlbeck whether he is the Neville referred to in the email.

Mr Yates: Well, there is no evidence of an offence being committed, which is what I said first.

Palin’s Facebook

Fascinating blog post which starts out documenting the speed and efficiency with which critical comments about Palin are removed from her page and then chokes on this.

A commenter posted the following at 18:12:

“It’s ok. Christina Taylor Green was probably going to end up a left wing bleeding heart liberal anyway. Hey, as ‘they’ say, what would you do if you had the chance to kill Hitler as a kid? Exactly.”

I think I literally gasped when I read that. Remember, Christina Taylor Green was the 9 year old girl killed by the shooter. Apparently she had been brought there by her mom, who thought she might get a kick out of meeting Rep. Giffords, having recently been elected to her student council.

I assumed, as a matter of course, that this particular comment would be deleted with greatest possible speed.

So I kept hitting refresh, hoping to use this as an example to say, “You see, Palin’s Facebook editing at least has the good judgement to remove clearly offensive content such as this.” But it didn’t come down.

Thanks to Peter Armstrong for the link.

Facebook: the Gold(man) rush

It’s funny how people never learn. This useful report from Good Morning Silicon Valley brings back memories of the first Internet boom, and of the unscrupulous role that, ahem, major investment banks played in fuelling the lunacy. GMSV notes a WSJ article stating that Facebook’s 2009 profit was $200 million on revenue of $700 million, and goes on:

The New York Times’ DealBook reports today that Goldman Sachs Capital Partners, a $20.3 billion investment fund, was given first dibs at the Facebook investment but declined because of concern that the Palo Alto company’s $50 billion valuation is too high. The report also cited unnamed sources who say Facebook’s 2010 net income was $400 million on revenue of $2 billion. A Bloomberg report compares Facebook to Google: A $50 billion valuation is about 25 times the reported 2010 revenue, while Google’s price-to-sales ratio is estimated at 9. Another Facebook-Google comparison of note comes from Connie Loizos at peHUB: “When Google went public in 2004, it steered clear of sweetheart deal-making. … Deals like that of Facebook-Goldman reek of an old boys club way of doing business.”

Yep. Even if I had any money (which I don’t) and was minded to invest in tech stocks (which would be unethical, given my newspaper column) I wouldn’t ever touch a deal in which Goldman was involved. This, after all, is the bank that was recently fined for screwing its own clients. And now some of those saps are stampeding to get a ludicrously overpriced slice of the Facebook action. In ordinary life, they say that one sucker is born every minute. In the stock market, their birth rate seems to be considerably higher.

Later: It seems that the minimum investment Goldman requires for anyone who want to be involved in its Facebook fund is $2m. For disconsolate souls who don’t have that much money to lose, Silicon Valley Insider has this consoling news:

There’s a fun penny stock called Snap Interactive, whose fortune is tied to Facebook.

The company has the most popular dating app on Facebook and charges a small fee for some users. It’s managed to generate $2.7 million in revenue last quarter up from $1.7 million the quarter before.

That growth has gotten some investors attention, and now the stock price is soaring — its up over 1,000% in the last 30 days. So, if you want to roll the dice, and you want to play a Facebook company on the public markets, here’s your chance.

Er, their chart suggests that you may have missed even that boat.

This looks like a bubble to me, folks, with Goldman Sachs manning the airpump. The strategy seems clear: to stampede Facebook into a flotation by triggering the SEC rules that a company with more than 499 shareholders has to float.

In the interests of balance… I should point out that not everyone agrees with me that Facebook is over-valued at $50 billion.