Monthly Archives: September 2008

The man who loved typewriters

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One of the distinguishing marks of a great magazine is that it constantly surprises one. The obituaries in the Economist are like that. Last week it ran a fascinating obit of Martin Tytell, a New Yorker who became the world expert on typewriters.

Mr Tytell could customise typewriters in all kinds of ways. He re-engineered them for the war-disabled and for railway stations, taking ten cents in the slot. With a nifty solder-gun and his small engraving lathe he could make an American typewriter speak 145 different tongues, from Russian to Homeric Greek. An idle gear, picked up for 45 cents on Canal Street, allowed him to make reverse carriages for right-to-left Arabic and Hebrew. He managed hieroglyphs, musical notation and the first cursive font, for Mamie Eisenhower, who had tired of writing out White House invitations.

When his shop closed in 2001, after 65 years of business, it held a stock of 2m pieces of type. Tilde “n”s alone took up a whole shelf. The writer Ian Frazier, visiting once to have his Olympia cured of a flagging “e”, was taken into a dark nest of metal cabinets by torchlight. There he was proudly shown a drawer of umlauts.

It’s been a staple assumption of detective fiction since time immemorial that every typewriter had a unique ‘fingerprint’, and Tytell made a good living as a forensic consultant for the FBI. But he also refuted the theory by building an exact replica of Alger Hiss’s typewriter for the spy’s defence team. Not that it did Hiss any good.

So where are the Masters of the Universe now?

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The first really amusing piece to come out of WallStreetCrash 2.0 — an elegant essay by Tom Wolfe, who coined the phrase in Bonfire of the Vanities.

The Masters of the Universe is a phrase from that book referring to ambitious young men (there were no women) who, starting with the 1980s, began racking up millions every year — millions! — in performance bonuses at investment banks like Salomon Brothers, Lehman Brothers, Bear Stearns, Merrill Lynch, Morgan Stanley and Goldman Sachs. The first three no longer exist. The fourth is about to be absorbed by Bank of America. The last two are being converted into plain-vanilla Our Town banks with A.T.M.’s in the lobby and, instead of Masters of the Universe, marginally adult female cashiers with wages in the mid-three figures per week, stocked with bags of exploding dye to hand the robbers along with the cash. American investment banking, the entire industry, sank without a trace in the last few days.

So where have they gone? To Greenwich, Connecticut, apparently, where is where the hedge funds hang out. And they left some time ago, it seems.

The hottest, brightest, most ambitious young men began abandoning investment banking in favor of hedge funds six years ago. Your correspondent can describe scenes of raging carotid-aneurytic anger as the young hotshots resigned. Security goons seized them by the elbow and marched them off the floor at six miles an hour. They couldn’t touch anything in or on their desks — not even the framed picture of Mom and Buddy and Sis, propped upright from behind by little cardboard wings covered in synthetic velvet — so furious were their superiors. Their biggest producers and future leaders were walking out on them.

An interesting snippet from the piece: hedge funds allow their investors to withdraw their money on only four days in the year (i.e. once a quarter). The next one is September 30 — next Tuesday. It’ll be interesting to see what happens: will some funds be hollowed out and become mere shells? And if so, where will their investors put their money next?

Androids and walled gardens

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This morning’s Observer column…

‘We are all,’ said Keynes, ‘the slaves of some defunct philosopher.’ The question that will increasingly preoccupy mobile-phone executives from now on is which deceased sage is more appropriate for their product. Up to now, the relevant thinker has been Lenin – who, you may remember, was a control freak. Given that most mobile operators had their origins in traditional telephone companies – which liked to think they ‘owned’ their customers – this is hardly surprising. These outfits have control freakery in their corporate DNA.

Last week, the first mobile phone based on Google’s Android operating system was released by T-Mobile in the US. (The network is bringing it to the UK in November.) The philosophy underpinning the device is radically different from anything we have seen thus far in the mobile-phone market. The world is about to become a more interesting place. And what happens next could have far-reaching implications…

CORRECTION: An observant reader, Duncan Thomas, has just spotted an error in the piece as published. The piece says that “the most important difference [between the Google phone and the iPhone] is that the Android software ecosystem will not be an uncontrolled, open space”. That ‘not’ ought to have been deleted. Drat and double drat.

LATER: Webmonkey’s five reasons why Android might do the business

1. It promises to run on most modern smart phones – More cell networks will support Android than iPhone does — the iPhone is bound to just AT&T. Mobile providers NTT DoCoMo, Sprint Nextel, T-Mobile and more have committed to the project. Also, more handsets will operate on it. You might even get more life out of your old phone if it supports it. Handset manufactures HTC, LG, Motorola and Samsung have already signed on.
2. It’s open-source software – Any programmer can whip up some code to match popular features from any other phone. Under the Apache license, any programmer can take the code and port their own version of the OS.
3. It has support for Google products out of the box – The latest Android demonstration displayed the phone’s compass prominently in Google Maps. You can bet Google will have the latest and greatest features of their software running on Android before it hits other operators.
4. Third-party developers have more access – iPhone prohibits people from using its internet capabilities for things like VoIP or an alternative browser. Android’s API allows you to create an application for anything, even the dialing software. The evidence is in the 50 applications already developed for the Android Developer Challenge last May.
5. Android allows for ‘unlocked’ phones – Most handsets in America, including the iPhone, are locked by software to a cell phone provider’s network. While there are various ways to jailbreak, it’s not easy and might break your terms of service. The availability of downloading and installing your own unlocked OS might just change the game in respect to shopping for mobile phone providers and signing contracts. If this method gets more popular, it is conceivable phone networks may drop the contracts in lieu of (better) European pre-pay pricing.

McCain’s Blizzard of Lies

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From Paul Krugman’s NYT column…

Dishonesty is nothing new in politics. I spent much of 2000 — my first year at The Times — trying to alert readers to the blatant dishonesty of the Bush campaign’s claims about taxes, spending and Social Security.

But I can’t think of any precedent, at least in America, for the blizzard of lies since the Republican convention. The Bush campaign’s lies in 2000 were artful — you needed some grasp of arithmetic to realize that you were being conned. This year, however, the McCain campaign keeps making assertions that anyone with an Internet connection can disprove in a minute, and repeating these assertions over and over again.

Take the case of the Bridge to Nowhere, which supposedly gives Ms. Palin credentials as a reformer. Well, when campaigning for governor, Ms. Palin didn’t say “no thanks” — she was all for the bridge, even though it had already become a national scandal, insisting that she would “not allow the spinmeisters to turn this project or any other into something that’s so negative.”

Oh, and when she finally did decide to cancel the project, she didn’t righteously reject a handout from Washington: she accepted the handout, but spent it on something else. You see, long before she decided to cancel the bridge, Congress had told Alaska that it could keep the federal money originally earmarked for that project and use it elsewhere.

So the whole story of Ms. Palin’s alleged heroic stand against wasteful spending is fiction…

Krugman’s point — that if people campaign like this then you get some idea of how they’re going to govern. In other words, it’s all about

the relationship between the character of a campaign and that of the administration that follows. Thus, the deceptive and dishonest 2000 Bush-Cheney campaign provided an all-too-revealing preview of things to come. In fact, my early suspicion that we were being misled about the threat from Iraq came from the way the political tactics being used to sell the war resembled the tactics that had earlier been used to sell the Bush tax cuts.

And now the team that hopes to form the next administration is running a campaign that makes Bush-Cheney 2000 look like something out of a civics class. What does that say about how that team would run the country?

User-generated science

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This is the headline on an interesting piece in last week’s Economist about the effect of the web on scientific publishing. Excerpt:

Peer-review possesses other merits, the foremost being the ability to filter out dross. But alacrity is not its strong suit. With luck a paper will be published several months after being submitted; many languish for over a year because of bans on multiple submissions. This hampers scientific progress, especially in nascent fields where new discoveries abound. When a paper does get published, the easiest way to debate it is to submit another paper, with all the tedium that entails.

Now change is afoot. Earlier this month Seed Media Group, a firm based in New York, launched the latest version of Research Blogging, a website which acts as a hub for scientists to discuss peer-reviewed science. Such discussions, the internet-era equivalent of the journal club, have hitherto been strewn across the web, making them hard to find, navigate and follow. The new portal provides users with tools to label blog posts about particular pieces of research, which are then aggregated, indexed and made available online.

Although Web 2.0, with its emphasis on user-generated content, has been derided as a commercial cul-de-sac, it may prove to be a path to speedier scientific advancement. According to Adam Bly, Seed’s founder, internet-aided interdisciplinarity and globalisation, coupled with a generational shift, portend a great revolution. His optimism stems in large part from the fact that the new technologies are no mere newfangled gimmicks, but spring from a desire for timely peer review…

You want fries with that $700 billion, Mr Paulson?

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A few days ago I mentioned that the markets were thinking about the possibility of the US government defaulting on its debts. Professor Charles Goodhart, a noted UK economist, then came on BBC Radio explaining that it was impossible for a government to default in this way, and I assumed I had simply misunderstood the signals. But in today’s Financial Times, Gillian Tett reports as follows:

This week, the cost of insuring against a US default via credit derivatives hit record levels. Yesterday, London dealers were quoting between 23 and 28 basis points, meaning it costs €23,000 ($33,600) to €28,000 a year to insure €10m in bonds. But the quotes for McDonald’s were about 25bp-26bp.

Yes, you read that right: the entity that brought us big fries and the floppy clown commands as much gravitas in the credit world as the mighty US of A.

These CDS prices might seem weird: it is extremely unlikely the US will default. But there are at least two factors making investors jittery. One is the rising cost of US bail-out plans. If you spend $50bn here (to support money market funds), $85bn there (to rescue AIG), another $30bn (to complete the Bear Stearns deal) and then $700bn (for a bail-out), soon you are talking serious numbers.

More specifically, the rescue proposals from Hank Paulson, US Treasury secretary, are threatening to push gross US debt well above 70 per cent of GDP for the first time since 1954…

Interesting, eh?

Evening in America

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[McCain] tried to remind viewers of his greater experience and heroic combat career, while also casting himself as a maverick outsider ready to storm the barricades. Mr. McCain wanted to be the true revolutionary in the room, but his is the Reagan revolution, and for a lot of people right now, it doesn’t look like morning in America.

The New York Times, summing up last night’s Presidential campaign debate.