luni, 16 martie 2015

Seth's Blog : The one who makes things worse

The one who makes things worse

Every committee or organization has at least one well-meaning person who is pushing to make things more average.

"On behalf of the masses, the uncommitted, the ones who don't care, we need to dumb this down, smooth out the edges and make it more average. We need to oversimplify it, make it a bit banal, stupid even. If we don't, then some people won't get the joke, won't be satisfied, or worse, complain."

And, by amplifying the voice of the lizard brain, he gets under our skin and we back off, at least a little. We make the work a little more average and a little worse.

This is the studio executive who demands a trite plot, with the usual stereotypes and tropes, played by the usual reliable actor types.

This is the record producer who wants the new song to sound a whole lot like the last song.

This is the NGO executive who fears that the new campaign will offend some minor donors...

Yes, it's true that the remarkable, edgy stuff we wanted to make wasn't going to be embraced by everyone. But everyone is rarely the point any more.

In the service of honest communication, perhaps the one who makes things worse should acknowledge that this is what he does for a living. That way, if we want things to be a little more average, we'll know who to ask.

       

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duminică, 15 martie 2015

Mish's Global Economic Trend Analysis

Mish's Global Economic Trend Analysis


Massive Brazil Protests: Hundreds of Thousands Demand President Rousseff Resign

Posted: 15 Mar 2015 11:42 AM PDT

Protesters in 16 Brazilian states and the capital took to the streets of Brazil today demanding the resignation or impeachment of Dilma Rousseff. They are upset over inflation, austerity, and Rousseff's involvement in the Petrobras scandal.

For background, see my March 5 post Brazil Succeeds Beyond Wildest Dreams in Winning "Currency War"

In every Brazilian state, people have had enough, Hundreds of Thousands March in Brazil to Protest Rousseff.
The largest protest occurred in Sao Paulo, with 240,000 people as of 2:40 p.m. local time, according to its military police. Protests occurred in cites of 16 states and the federal capital, according to O Globo website. Its TV network reported 45,000 protesters in Brasilia, 20,000 in Belo Horizonte, and 20,000 in Belem, citing the military police of those cities. No violence or vandalism were reported.

Higher taxes and increased prices for government-regulated items like gasoline are rankling Brazilians as the biggest corruption scandal in the nation's history ensnares elected and appointed officials. The approval rating of Rousseff's government has plummeted since she won a close re-election last October. Today's protests are the largest since June 2013 demonstrations in which more than a million people decried deficient public services and demanded an end to corruption.

The president will meet at the end of the day with ministers from her political coordination team to evaluate the protests, Agencia Estado reported.

The demonstrations were organized by activists on social networks including Twitter and Facebook, as messages reached citizens via WhatsApp. Protesters nationwide sported canary-yellow shirts, sang the national anthem and waved flags. In Rio, where the march snaked along Copacabana beach, one banner with Brazil's flag read "Beloved Country," while another said "Military Intervention Now!"

Today marks the 30th anniversary of Brazil's return to democracy after a 21-year military dictatorship.
Real vs. US Dollar



Since July, the Real has fallen from 2.20 to the US dollar to 3.25 to the US dollar. That's a decline of 35% in less than a year.

Ironically, in March of 2012 and previously in 2011, Brazilian officials were complaining about the strength of the Real. See Brazil Succeeds Beyond Wildest Dreams in Winning "Currency War" for details.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Seth's Blog : Double and half (freelancer math)

Double and half (freelancer math)

Successful freelancers need to charge at least double the hourly rate that they'd be happy earning doing full time work. (In many fields, it's more like 4 or 5x).

And they need to spend at least half their time getting better at their craft (and helping the market understand and appreciate what they do).

Your mileage may vary, but one sure route to becoming an unhappy freelancer is charging just enough and hoping that the low price will keep you busy all the time. 

[If you're a freelancer with a career or marketing question, I'm recording a course on this topic and will be including reader questions as part of it. The form is open until tomorrow, Monday, at midnight. Thanks.]

       

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sâmbătă, 14 martie 2015

Mish's Global Economic Trend Analysis

Mish's Global Economic Trend Analysis


How Long Before Cash is Banned?

Posted: 14 Mar 2015 10:42 PM PDT

A regular reader who I trust 100% has been traveling in Italy for a month. She has this report on cash vs. credit cards.
Hi Mish

I've been in Italy for a month. It's quite amazing how many places ask you to pay cash. Even at hotels, they would like you to pay your €1000+ bills in cash. And people 'wonder' why these countries always get into trouble.

CNA
Cards Not Appreciated

In essence, CNA just confirms two things we already know.

  1. Italy, Greece, and other club-med states want to crack down on rampant tax evasion.
  2. Businesses resist.

What's the Real Problem?

Is the problem really tax evasion, or is the problem that taxes are so freaking high on so many things, in so many ways, that everyone hides income every chance they can?

There are already limits on cash transactions. I wonder ... How long will it take for cash transactions to be banned entirely?

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Return of the Buggy Whip; Streetcar Named Imprudent

Posted: 14 Mar 2015 10:30 AM PDT

Detroit, fresh out of bankruptcy, wants to waste $137 million on a streetcar project that will cost $45 million per mile to implement.

Detroit is not the only city to recently hop on the nostalgia bandwagon. For example, USA Today reports Atlanta, other cities see a streetcar renaissance.
ATLANTA – Once upon a time this city was crisscrossed by electric streetcars. At the peak of streetcar travel in the mid-1920s, some 800 streetcars covering 200 miles of track carried 97 million passenger trips a year. The story was the same around much of the nation: More than 800 other cities also had streetcars.

By the end of the 1940s, streetcars were virtually gone from Atlanta and before long, from the American landscape.

Now, streetcars are coming back to Peachtree Street — and to many other American streets for that matter.

Tucson's $196 million Sun Link Streetcar Project, recently named the Public Works Project of the Year by the American Public Works Association, will operate on a 3.9-mile route between downtown and the University of Arizona when it begins service in late July.

In late summer or early fall, Washington, D.C., will open its $135 million, 2.4-mile H Street streetcar line. It's expected to provide more than a million rides in the first year and help revitalize a once-thriving retail district in the nation's capital.

Construction began in April 2012 on Seattle's First Hill Streetcar, a 2.5-mile, $134 million line expected to begin service in the fall. The streetcar will run between Occidental Avenue in Pioneer Square and Denny Way in Capitol Hill, serving 10 stations along South Jackson Street, 14th Avenue South, Yesler Way and Broadway.

Streetcar projects are in various stages of design or development in more than a dozen other cities, including Dallas, which plans to open a line from Union Station downtown to Oak Cliff in early 2015; Salt Lake City, where Mayor Ralph Becker's administration is pushing a plan for a streetcar in the central business district downtown, and Kansas City, Mo., which announced last month that it had selected a vendor to operate and maintain its planned two-mile downtown streetcar line.
St. Louis Streetcars

Also consider St. Louis is not alone in resurgence of streetcars.
In 2002, the Tampa region opened its TECO Line, on which streetcars cruise a 2.7-mile path — past the Florida Aquarium, cruise terminals and the Tampa Bay Times Forum — between downtown Tampa and historic Ybor City.

St. Louis, waiting to move forward with its own trolley concept, is far from the only city with plans on paper or wheels already on rails.

A heavy infusion of federal dollars is fueling the efforts. St. Louis received a $24.99 million grant in 2010 for the Loop Trolley, to run from the University City Library to the Missouri History Museum in Forest Park.

But the resurgence faces growing pains. Questions dogged the Loop Trolley's early management, and a pending federal lawsuit seeks to stop the project. In Cincinnati, the city is considering halting construction.

And some critics point to markets such as Tampa to suggest that once completed, new lines aren't exactly teeming with passengers.

"There is no evidence that ridership is very significant or that you are going to attract very many riders," said Randal O'Toole, a senior fellow at the Cato Institute, a libertarian think tank in Washington. He asked whether cities are "just building Disneyland rides to make yuppies happy."

O'Toole questioned the wisdom of plowing so much government money into "obsolete transportation systems." The modern-day version of the urban streetcar, he added, costs significantly more than buses to operate per mile and doesn't even reach the speeds of their long-ago predecessors.
Detroit's Nostalgic Desire

Bloomberg reports Detroit's Desire Is Named Streetcar in Transport Revival.
Electric streetcars may roll Detroit's streets again after 60 years in an attempt to use mass transit to resuscitate the bankrupt auto capital.

Seventeen corporate and philanthropic donors will pay about two-thirds of $160 million to build and run a 3.3 mile (5.3 kilometer) line from downtown north to the New Center district. Groundbreaking is July 28, a 2016 opening is planned and, while streetcars won't erase Detroit's symbiotic relationship with the internal combustion engine, backers say they'll enliven an area that's attracting residents and jobs.

To some, a streetcar conjures not a revivifying force, but the folly of the People Mover, an elevated train built in 1987 that loops 2.9 miles around downtown. It was left with lower-than-expected ridership after plans flopped for a larger, regional rail system.
Another Burden

Streetcars are "a terrible idea" that will benefit property owners and not low-income Detroiters who don't live near the Woodward Avenue corridor, said George Galster, professor of urban affairs at Wayne State University.

He said there's no guarantee that the cost of operating the streetcar won't fall on the city, which a year ago filed the largest U.S. municipal bankruptcy, an $18 billion case.

"All the city of Detroit needs is another expensive boondoggle," Galster said.

M-1 Rail was awarded a $25 million federal grant, and it's asked for another $12 million. The project will proceed with or without more government money, Cullen said in a June 18 statement. The project allocates $20 million to operate the line for 10 years or until it is turned over to the regional transit authority.
Streetcar Named Imprudent

Design World gets the last word with Streetcar Named Imprudent.
City politicians are funding a streetcar project traversing a mere three miles and slated to cost $137 million, or a little over $45 million per mile, not counting the inevitable cost overruns.

Detroit isn't the only city rolling out a streetcar project. At least 16 other U.S. cities have trams in the works and many more have publicly stated their streetcar dreams. But Detroit's project is mysterious. Its promoters seem oblivious to advances in automotive technology, showcased just down the street from them at the NAIAS, that could easily make streetcars and similar forms of mass transit obsolete. And it increasingly looks as though obsolescence could strike just as many streetcar projects now on the drawing boards are ready for their first passengers.

Tour the displays at NAIAS and you get an idea why: Driverless, connected vehicles could well form the basis for an energy efficient way of moving people around. Consider how a commuter might head home from work a few years from now. An empty car will roll up as he or she leaves the office. Time in the car will be spent doing Facebook posts or watching TV rather than driving. That's because the car will contain no steering wheel. The journey home will be faster than what's possible today though there will be more cars on the road. And the car will deliver its occupants to their doorstep, not to a tram station. With that accomplished, the vehicle will head off to wait for other riders.

The hardware is already in place to make this vision of driverless commuting a reality. The equipment needed for a car with no driver looks a lot like the equipment used for parking-assist systems found in high-end vehicles today. It basically consists of electric power steering and brakes, a computer, and a variety of sensors. The part of the puzzle that still needs development is the software. But the required programming is rapidly being perfected. Cars in Google's Self-Driving Car project, for example, have already logged nearly 700,000 autonomous miles. Google claims it should have remaining software issues fixed by 2020.

Meanwhile, Toyota has been testing driverless vehicle technology on roads in Ann Arbor, Mich. for the past two years. Also in Ann Arbor, the University of Mich.'s Transportation Research Institute has equipped 2,800 cars with wireless technology for communicating with each other and with traffic lights. It plans to instrument 9,000 more this way in 2015 and eventually expand to 20,000 vehicles. The goal is safer travel, fewer traffic delays, and a better understanding of how to automate vehicles.

Unfortunately, the main attraction of streetcar projects seems to be federal subsidies. Municipalities asking for these funds generally justify them by citing benefits such as better mobility and economic stimulus for the local economy. Trouble is, these scenarios usually assume streetcars will compete with vehicle technology pretty much the way it is today, not the way it is likely to evolve as automation increasingly eliminates drivers.

The reality is that trams and trains make sense only in areas characterized by high population density—think New York City, San Francisco, Atlanta, or a similar megalopolis. A survey of the Detroit landscape might bring to mind several phrases to describe the view, but "high population density" would not be one of them. As connected car technology progresses, let's hope that even the dullest politicians will be able to see that streetcar projects are likely to be losing propositions.
Political Desire to Waste Money

Streetcars make no economic sense, and they haven't since 1940. And with driverless cars five years away, Detroit ought to be looking forward, not back.

Buggy whips would actually make more sense. No one could possibly waste over $100 million on them.

Then again, never underestimate politicians' desire and ability to waste as much money as possible on useless pet projects.

For more on driverless vehicles, please see Driverless Cars and Trucks: Who Wants One? How Many Jobs Will Vanish?

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Seth's Blog : Magic and irrational

Magic and irrational

Today is Pi day, the 14th day of the 3rd month of the fifteenth year... 3.1415

Pi is our most famous irrational number. Not irrational in the sense that it's a foolish argument, a form of wishing for one thing while doing another. No, pi is irrational in a magical, beautiful sense. It can't be cropped off and fit into a box. The closer you look at pi, the more you see, forever.

And that sort of irrational magic is at the heart of our best work. Meeting spec works fine as long as you're the only person who has to meet spec. But in any competitive environment, fitting into a box does us little good.

To be transcendent and irrational is to always have a few more digits to spare, to demand that you not be rounded off and filed away. To be human.

       

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vineri, 13 martie 2015

Mish's Global Economic Trend Analysis

Mish's Global Economic Trend Analysis


Atlanta Fed Halves GDP Forecast to 0.6%; Blue Chip Consensus Eight Miles High

Posted: 13 Mar 2015 11:52 AM PDT

It's amusing watching all the GDP forecast downgrades in the wake of a huge string of bad economic data reports, one after another.

Following the retail sales report on March 12, the Atlanta Fed GDPNow forceast fell from 1.2 percent to 0.6 percent.

"The GDPNow model forecast for real GDP growth (seasonally adjusted annual rate) in the first quarter of 2015 was 0.6 percent on March 12, down from 1.2 percent on March 6."

The Fed forgot to update their picture. It still looks like this.



Blue Chip Consensus Eight Miles High

I am wondering what the "Blue Chip" forecasters are smoking. By any chance are they getting high off the glue in the string of recent jobs report?

To be fair, the "Blue Chip" forecast is as February 24, but by then the Fed Model had already been heading south.

Regardless, we are now at 0.6 percent and falling fast in the Fed model. The latest "Blue Chip" forecast is seemingly Eight Miles High.

This calls for a musical tribute.



Link if video does not play: Byrds - Eight Miles High.

Of course, there is one rational explanation for these estimates to be so wildly different: Weather Unexpectedly Much Worse Than Economists Previously Thought.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Major Currencies vs. US Dollar: 2015 Performance

Posted: 13 Mar 2015 10:22 AM PDT

One self-explanatory chart from Bloomberg conveys the overwhelming strength of the the US dollar this year.

Major Currencies vs. US Dollar Year to Date



If you wish to include some currencies you likely have never heard of, the winner is the Malawian Kwacha, up 6.42 percent against the US dollar this year.

The Somali Shilling, up 2.74%; the Seychelles Rupee, up 2.17%; the Suriname Dollar, up 1.87%, and the Costa Rican Colon, up 1.11% round out the top five.

Best Performers vs. US Dollar



click on any chart for sharper image

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

PE Expansion US, Eurozone, Japan; S&P Number of Days Without 10% Correction; Central Bank Bubble Blowers

Posted: 13 Mar 2015 12:06 AM PDT

Albert Edwards at Society General emailed a PDF on PE expansion and other equity trends. Albert comments ...

"Mario Draghi and the ECB's manipulation of asset prices make s Greenspan's Fed look like a rank amateur. More shocking though than the plunge in the euro, and more shocking even that 25% of sovereign eurozone bonds now trade in negative territory, is what has happened to eurozone equity valuations. For, as we approach the sixth anniversary of the US cyclical bull market (a post-war record), the PE expansion of eurozone equities is simply off the scale. History suggests this will end very badly indeed. Ask Alan!"

Eurozone 6-Year PE Expanded 220% 



click on any chart for sharper image

Longest Post-War Bull Market in Months - S&P 500



Trading Days Without 10% Correction - S&P 500



12-Month Forward PEs Japan, US, Eurozone



Note the PE expansion in the US and Eurozone and the lack of it in Japan

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Damn Cool Pics

Damn Cool Pics


Renee Zellweger Is Looking Like Her Old Self Again

Posted: 13 Mar 2015 06:41 PM PDT

It wasn't too long ago that everyone was freaking out over Renee Zellweger's face. Everyone thought she looked different last time she was in the spotlight but she recently stepped out for Paris Fashion Week and she looks like she hasn't changed at all. Renee smiled for the camera as she arrived at the Miu Miu 2015 autumn/winter fashion show and she looked just like her old self.    

Earlier Post:
Everyone's Talking About Renee Zellweger's New Look























The Science Behind Human Decapitation

Posted: 13 Mar 2015 06:35 PM PDT

Death by decapitation is one brutal way to end a life but it's an execution style which is a common part of human history. When the human head is separated from its body some pretty interesting things happen from a biological standpoint and you're about to find out exactly what they are.






















Via viralnova

When Pole Dancing In The Street Goes Wrong

Posted: 13 Mar 2015 06:09 PM PDT

It's safe to say this woman is not having a good night.