myPod Story

Earlier in the fall of '08, this blogger faced heavy-duty dental work. A new dentist prescribed a crown on a tooth with deteriorating fillings. Lovely. Past experience with the installation of a dental crown featured the noise of the grinding as the original tooth was reduced to a stump upon which the crown was seated. Since this wasn't the blogger's first rodeo with a power tool in his mouth, a noise supressor was needed. This blogger immediately thought of a CD-player with ear phones; the sound of the blogger's favorite music would block out the sound of the dental grinding. A trip to the nearest big-box electronics store found this blogger strolling out with a Classic iPod. A combination of the CD player on the laptop plus iTunes software enabled the transfer of more than 100 CDs to the iPod. Amazing. Welcome to the 21^st century. This blogger blocked the sound of grinding with a medley of tunes through the iPod earphones. If this is (fair & balanced) technological progress, so be it.

[x Wikipedia]
iPod

iPod is a brand of portable media players designed and marketed by Apple Inc. and launched on October 23, 2001. The product line-up includes the hard drive-based iPod Classic, the touchscreen iPod Touch, the video-capable iPod Nano, the screenless iPod Shuffle and the iPhone. Former products include the compact iPod Mini and the spin-off iPod Photo (since reintegrated into the main iPod Classic line). iPod Classic models store media on an internal hard drive, while all other models use flash memory to enable their smaller size (the discontinued Mini used a Microdrive miniature hard drive). As with many other digital music players, iPods, excluding the iPod Touch, can also serve as external data storage devices. Storage capacity varies by model.

Apple's iTunes software can be used to transfer music to the devices from computers using certain versions of Apple Macintosh and Microsoft Windows operating systems. For users who choose not to use Apple's software or whose computers cannot run iTunes software, several open source alternatives to iTunes are also available. iTunes and its alternatives may also transfer photos, videos, games, contact information, e-mail settings, Web bookmarks, and calendars to iPod models supporting those features. Apple focused its development on the iPod line's unique user interface and its ease of use, rather than on technical capability. As of September 2007, more than 150 million iPods had been sold worldwide, making it the best-selling digital audio player series in history.

The name iPod was proposed by Vinnie Chieco, a freelance copywriter, who (with others) was called by Apple to figure out how to introduce the new player to the public. After Chieco saw a prototype, he thought of the movie "2001: A Space Odyssey" and the phrase "Open the pod bay door, Hal!", which refers to the white EVA Pods of the Discovery One spaceship. Apple researched the trademark and found that it was already in use. Joseph N. Grasso of New Jersey had originally listed an "iPod" trademark with the U.S. Patent and Trademark Office in July 2000 for Internet kiosks. The first iPod kiosks had been demonstrated to the public in New Jersey in March 1998, and commercial use began in January 2000, but had apparently been discontinued by 2001. The trademark was registered by the USPTO in November 2003, and Grasso assigned it to Apple Computer, Inc. in 2005.

Wikipedia® is a registered trademark of the Wikimedia Foundation, Inc.

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They Became What They Didn't Understand

The Flatster provides a bleak benediction for this holiday season: "...For the next few years we’re all going to be working harder for less money and fewer government services — if we’re lucky." The root of his bleak view of the future rests with the Masters of the Universe who had no idea what they were selling to investors. Click on this link for the story on the Wisconsin school boards who got caught up in a global Ponzi scheme. The key to the story is an investment advisor who didn't know what he was selling to the Wisconsin school boards. If this is a (fair & balanced) tale of greed beyond the dreams of avarice, so be it.

[x NY Fishwrap]
All Fall Down
By Thomas L. Friedman

I spent Sunday afternoon brooding over a great piece of Times reporting by Eric Dash and Julie Creswell about Citigroup. Maybe brooding isn’t the right word. The front-page article, entitled “Citigroup Pays for a Rush to Risk,” actually left me totally disgusted.

Why? Because in searing detail it exposed — using Citigroup as Exhibit A — how some of our country’s best-paid bankers were overrated dopes who had no idea what they were selling, or greedy cynics who did know and turned a blind eye. But it wasn’t only the bankers. This financial meltdown involved a broad national breakdown in personal responsibility, government regulation and financial ethics.

So many people were in on it: People who had no business buying a home, with nothing down and nothing to pay for two years; people who had no business pushing such mortgages, but made fortunes doing so; people who had no business bundling those loans into securities and selling them to third parties, as if they were AAA bonds, but made fortunes doing so; people who had no business rating those loans as AAA, but made a fortunes doing so; and people who had no business buying those bonds and putting them on their balance sheets so they could earn a little better yield, but made fortunes doing so.

Citigroup was involved in, and made money from, almost every link in that chain. And the bank’s executives, including, sad to see, the former Treasury Secretary Robert Rubin, were clueless about the reckless financial instruments they were creating, or were so ensnared by the cronyism between the bank’s risk managers and risk takers (and so bought off by their bonuses) that they had no interest in stopping it.

These are the people whom taxpayers bailed out on Monday to the tune of what could be more than $300 billion. We probably had no choice. Just letting Citigroup melt down could have been catastrophic. But when the government throws together a bailout that could end up being hundreds of billions of dollars in 48 hours, you can bet there will be unintended consequences — many, many, many.

Also check out Michael Lewis’s superb essay, “The End of Wall Street’s Boom,” on Portfolio.com. Lewis, who first chronicled Wall Street’s excesses in Liar’s Poker, profiles some of the decent people on Wall Street who tried to expose the credit binge — including Meredith Whitney, a little known banking analyst who declared, over a year ago, that “Citigroup had so mismanaged its affairs that it would need to slash its dividend or go bust,” wrote Lewis.

“This woman wasn’t saying that Wall Street bankers were corrupt,” he added. “She was saying they were stupid. Her message was clear. If you want to know what these Wall Street firms are really worth, take a hard look at the crappy assets they bought with huge sums of borrowed money, and imagine what they’d fetch in a fire sale... For better than a year now, Whitney has responded to the claims by bankers and brokers that they had put their problems behind them with this write-down or that capital raise with a claim of her own: You’re wrong. You’re still not facing up to how badly you have mismanaged your business.”

Lewis also tracked down Steve Eisman, the hedge fund investor who early on saw through the subprime mortgages and shorted the companies engaged in them, like Long Beach Financial, owned by Washington Mutual.

“Long Beach Financial,” wrote Lewis, “was moving money out the door as fast as it could, few questions asked, in loans built to self-destruct. It specialized in asking homeowners with bad credit and no proof of income to put no money down and defer interest payments for as long as possible. In Bakersfield, Calif., a Mexican strawberry picker with an income of $14,000 and no English was lent every penny he needed to buy a house for $720,000.”

Lewis continued: Eisman knew that subprime lenders could be disreputable. “What he underestimated was the total unabashed complicity of the upper class of American capitalism... ‘We always asked the same question,’ says Eisman. ‘Where are the rating agencies in all of this? And I’d always get the same reaction. It was a smirk.’ He called Standard & Poor’s and asked what would happen to default rates if real estate prices fell. The man at S.& P. couldn’t say; its model for home prices had no ability to accept a negative number. ‘They were just assuming home prices would keep going up,’ Eisman says.”

That’s how we got here — a near total breakdown of responsibility at every link in our financial chain, and now we either bail out the people who brought us here or risk a total systemic crash. These are the wages of our sins. I used to say our kids will pay dearly for this. But actually, it’s our problem. For the next few years we’re all going to be working harder for less money and fewer government services — if we’re lucky.

[Thomas L. Friedman became The New York Times' foreign-affairs columnist in 1995. He won the 2002 Pulitzer Prize for commentary, his third (The earlier Prizes were awarded in 1983 and 1988.) Pulitzer for this paper. Friedman's latest book, The World is Flat: A Brief History of the 21st Century, (2005) won the inaugural Goldman Sachs/Financial Times Business Book of the Year award. Friedman received a B.A. degree in Mediterranean studies from Brandeis University in 1975. In 1978 he received a Master of Philosophy degree in Modern Middle East studies from Oxford.]

Copyright © 2008 The New York Times Company

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