Unrequired Reading

Stuff I meant to post about in the past week:

Writing about restaurants in New Orleans (with a go-to mention of Finis Shelnutt):

“When people are still mucking out their houses, chefs are living in FEMA trailers, and others are finding out they are going to get screwed by their insurance company, I don’t want to be the guy who is writing about how the foie gras is not quite up to snuff,” he said.

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Why bashing Wal-Mart is not a good strategy for the Dems:

By restraining inflation, intense competition of the sort that Wal-Mart provides eases pressure on the Federal Reserve to do the job with higher interest rates. Note the paradox: At one level, intense competition destroys jobs, as some companies can’t compete, but the larger effect is to increase total job creation by fostering favorable economic conditions.

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Get your picture taken with Jesus.

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NO,LA: It’s the civil engineering, stupid!

Why didn’t the Corps design a consistent, redundant system? In large part, the reason was foot dragging — or worse — by pols on the state, local, and federal levels. In some cases, political opposition prevented the Corps from seizing land to build sturdier foundations. Plus, Louisiana’s local levee boards were lousy stewards. Levee officials were political animals, not engineering experts, and sometimes proved more interested in running ancillary “economic development” projects than working with the Corps to make sure the levees were up to their task. (It’s not because New Orleans is poor and black: the levees protect New Orleans’s richer, whiter suburbs too.) In addition, the Corps warned that many of New Orleans’s manmade canals, obsolete for years, should be closed or at least gated -— to no avail. Moreover, when the Corps, along with state officials, came to understand that wetlands restoration is a vital part of the flood protection system, not a tree-hugger’s afterthought, Congress balked at spending the required $14 billion over several decades for coastal restoration.

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The Chinese village of Dafen is like the opposite of William Gaddis’ The Recognitions:

In just a few years, Dafen has become the leading production center for cheap oil paintings. An estimated 60 percent of the world’s cheap oil paintings are produced within Dafen’s four square kilometers (1.5 square miles). Last year, the local art factories exported paintings worth €28 million ($36 million). Foreign art dealers travel to the factory in the south of the communist country from as far away as Europe and the United States, ordering copies of famous paintings by the container. [. . .]

Some five million oil paintings are produced in Dafen every year. Between 8,000 and 10,000 painters toil in the workshops. The numbers are estimates: No one knows the exact figure, which increases by about 100 new painters every year. But it’s not just professional copy painters who are drawn to Dafen — graduates of China’s most renowned art academy also come here. They complete only a small number of paintings a month and earn as much as €1,000 ($1,282).

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A guy used the graphics engine of the computer game Half Life to make a video tour of Frank Lloyd Wright’s Fallingwater house.

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Go see Little Miss Sunshine when you get the chance. We caught it yesterday. So did a couple of children sitting in the row behind us. They were less than 10 years old, and I’m sorta wondering if their mom noticed the “R” rating on the movie, or just thought it would be a fun flick about children’s beauty pageants, with that guy from The Daily Show. She may’ve been a little surprised when Alan Arkin was snorting heroin in one of the opening scenes. Anyway, it was a really wonderful flick, with a punchline that almost had us crying with laughter.

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And have a good holiday.

Housing ka-boom

LONG article about how a popular type of mortgage, the option ARM, does not actually provide money for free, and is about to annihilate a lot of homeowners’ finances:

After prolonging the boom, [option ARM] mortgages could worsen the bust. They also betray such a lack of due diligence on the part of lenders and borrowers that it raises questions of what other problems may be lurking. And most of the pain will be borne by ordinary people, not the lenders, brokers, or financiers who created the problem.

Gordon Burger is among the first wave of option ARM casualties. The 42-year-old police officer from a suburb of Sacramento, Calif., is stuck in a new mortgage that’s making him poorer by the month. Burger, a solid earner with clean credit, has bought and sold several houses in the past. In February he got a flyer from a broker advertising an interest rate of 2.2%. It was an unbeatable opportunity, he thought. If he refinanced the mortgage on his $500,000 home into an option ARM, he could save $14,000 in interest payments over three years. Burger quickly pulled the trigger, switching out of his 5.1% fixed-rate loan. “The payment schedule looked like what we talked about, so I just started signing away,” says Burger. He didn’t read the fine print.

After two months Burger noticed that the minimum payment of $1,697 was actually adding $1,000 to his balance every month. “I’m not making any ground on this house; it’s a loss every month,” he says. He says he was told by his lender, Minneapolis-based Homecoming Financial, a unit of Residential Capital, the nation’s fifth-largest mortgage shop, that he’d have to pay more than $10,000 in prepayment penalties to refinance out of the loan. If he’s unhappy, he should take it up with his broker, the bank said. “They know they’re selling crap, and they’re doing it in a way that’s very deceiving,” he says. “Unfortunately, I got sucked into it.” In a written statement, Residential said it couldn’t comment on Burger’s loan but that “each mortgage is designed to meet the specific financial needs of a consumer.”

This is one of those instances where the financial industry is at fault, but they couldn’t have pulled it off without the help of idiotic consumers. Any transaction I get into worth $500,000 is not going to involve someone who put a flyer in my mailbox.

Outta touch

Sorry it’s been a quiet week, dear readers. I’ve been busy at work, but I’ve also found myself falling into one of my wheels-within-wheels paranoiac phases. It’s centered on trying to get at an understanding of the power-relations at play in the current Gulf War.

Anyway, I gotta write an article on the benefits of RFID in the pharma supply chain, so I’m gonna get to that.

I leave you with the Rev. Sun Myung Moon / sushi axis.

Team Galactico

Here’s a neat article on the finances of Real Madrid ‘football club’, the biggest sports brand in the world. The team is actually a non-profit organization, with 70,000 “club members” and a team president who gets elected by them every four years. It’s a neat take on how to build a brand with global reach, without the deep pockets of a single owner, a la the Yankees.

Making the official VM wife happy, the article is accompanied by a slide show with a nice pic of Beckham. Grr.

Drug Deal

I know this story about the generic release of Plavix requires some knowledge of how the pharmaceutical industry works, but it’s a really funny tale of corporate manuevering. The CEO of the generic company (Apotex) gives an interview with the Times in which he goofs on Bristol-Myers Squibb and Sanofi-Aventis as a couple of pikers:

Mr. Sherman, in a telephone interview, all but ridiculed his two big rivals, saying they had naïvely agreed to conditions that allowed his company to bring [generic Plavix] to market even though the deal was rejected by regulators.

“I think they acted foolishly in a number of ways,” said Mr. Sherman, a Toronto billionaire who amassed his fortune in the generic drug business.

Mr. Sherman said that he had never expected the American government to approve the deal, but that he had conducted the negotiations in a way to let him push the Apotex drug onto the market.

The twist is that BMS & SA were trying to use a loophole agreement with Apotex to keep generic Plavix off the market till 2011. Instead, the deal got shot down, but its side-provisions give Apotex 5 business days to push its drug into the distribution chain before they can lodge a complaint. So Sherman’s company is trying to get as much as $1 billion in product out before any injunction can stop it.

I know it’s another business article, but you oughtta give it a read, just for Sherman’s incredulous take on the agreement.

Malibu’s Most Wanted

We all say dumb things when we’re hammer drunk, and I think they generally fall into one of three groups:

Maudlin sentimentalities: “I love you guys,” “I could’ve gone pro if I didn’t blow out my shoulder,” or “My life is f***ed.”

Pronunciamentos: “David Duke is right! Who’s standing up for the rights of white men?” “This country will never be safe until we deport all the Eskimos,” or “The Jews are responsible for all the wars in the world.”

Things we say to get into someone’s pants: “Your poetry’s really good,” “I like Radiohead, too,” or “What do you think you’re looking at, sugar tits?”

Which brings us to the case of Mel Gibson’s DUI bust. It was funny enough to see that he’d been busted, but the humor level went through the roof when the report came out about his anti-semitic tirade toward the arresting deputy.

Dan Drezner has a neat chain-of-events that will spin out of the weekend, Chris Hitchens offers a great subhed for his Gibson column (“He is sick to his empty core with Jew-hatred”), the Times has the meta-story about the speed of scandal, and Gregg Easterbrook has a football column up at ESPN.com.

Why mention that last one? Because Disney-owned ESPN fired Easterbrook a few years ago for what were perceived as anti-semitic remarks directed at movie studio owners. I wrote about the situation here and here. For a while, Easterbrook’s Tuesday Morning Quarterback column was carried at NFL.com. It returned to ESPN this season without a comment. At the moment, it’s the lead item on ESPN.com, with the headline “Easter Tuesday.”

Maybe ESPN was just waiting for Disney CEO Michael Eisner to leave before bringing Easterbrook back. Or perhaps Willow Bay was a big fan of the column. The cold medication’s kicking in too strongly for me to make any real point here, but Easterbrook’s been “forgiven” by ESPN (which shouldn’t have fired him to begin with), even if they couldn’t get around to explaining how their interpretation of his comments has changed. Gibson, on the other hand, with his tortured apology, seems to be intent on proving the South Park guys right.

(In the process of “researching” this post, I came across a batshit-crazy anti-semitic website devoted to explaining Jewish ownership of American media. Enjoy.)