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James,
I appreciate your critique of Capitalism: A Love Story and am happy to publish it. Discussing the film around the office, we felt like your review would serve as a great launching pad for further conversation about this provocative but flawed movie.
Readers Say It Doesn’t Matter If the MRI Bankrupts the Country
Mark Gimein’s piece on MRIs, “The Machine That’s Bankrupting America” was not received well by TBM readers. “Wow. Thanks for misrepresenting the state of Americn healthcare,” milano87 writes before itemizing her clarifications on the piece and the healthcare system.
Pay at Goldman Sachs To Get Even Bigger
You'll recall the howls of outrage earlier this year when onetime ward-of-the-state Goldman Sachs (GS) announced that it was setting aside $11.6 billion in compensation for the first half of the year. Surely, given that public outcry and given the bureaucratic gnashing of teeth going on now at the Pittsburgh G20, Goldman has learned its lesson, right?
Word of the Week
In his testimony before the members of the House Financial Services Committee on Wednesday, Treasury Secretary Timothy Geithner talked a lot about the new Consumer Financial Protection Agency. That’s the independent body that will be in charge of safeguarding consumers from misleading or abusive credit card, mortgage, and other loan practices. Geithner said that the agency won’t treat all financial firms as equals though. “The CFPA will allocate its oversight resources on the basis of risk to consumers,” he said.
Fix Wall Street! But ... How?
Madoff's Inflated Losses: We Told You So
An AP story today notes that the estimates of how much investor money Bernie Madoff lost have been wildly exaggerated. You'll recall that since Madoff's arrest last December, the figure of $50 billion was widely cited.
A Good Housekeeping Exchange
On Friday, Sept. 11, The Big Money published a story by Paul Smalera titled “The Deal Behind the New Good Housekeeping Seal.” It argued that the magazine’s new green award is bogus. Good Housekeeping disputed elements of the article in a comment, and Editor in Chief Rosemary Ellis sent a more detailed critique that evening.
Word of the Week
This week, the Securities and Exchange Commission moved forward with its attempt to shed light on the “dark corners” of the U.S. stock market. The commission proposed a ban on so-called “flash orders,” which “allow a select group of traders to see requests to buy and sell stocks and other securities a split second before the rest of the market,” the Washington Post reports.
The Anglicization of the Wall Street Journal
Global ownership of media is not intrinsically bad, which is good considering it's inevitable these days. In general, Rupert Murdoch's purchase of the Wall Street Journal has had many salutary effects on the paper that far outweigh a few things I could do without.
That said, the audience for the Journal remains overwhelmingly American, and it serves no one's purpose to publish a paper that its audience can't understand. I have noticed a steady increase in the use of British phrases that aren't commonly, if ever, used by Americans.
What's Your Question for Rosabeth Moss Kanter?
Later this month, The Big Money Editor James Ledbetter will conduct an exclusive one-on-one interview with Rosabeth Moss Kanter, Harvard Business School professor and author of the just-released book SuperCorp: How Vanguard Companies Create Innovation, Profits, Growth and Social Good.
Meltdown Anniversary Watch, Part 5
Over the weekend, two remarkably similar articles argued that Lehman's collapse was a sacrificial lamb. That is, the fourth-largest investment bank in the United States had to go into bankruptcy in order to create a sense of crisis strong enough to save the rest.
What's Your Question For Zipcar's Founder?
Later this month, The Big Money Editor James Ledbetter will conduct an exclusive one-on-one interview with Robin Chase, founder and former CEO of the pioneering car-sharing service Zipcar, and currently the CEO of the ride-sharing service GoLoco. We'll be talking about car-sharing, innovation and technology.
TBM Readers Respond: Save College As We Know It!
Earlier this week, Zephyr Teachout argued that just like newspapers, universities will be dismembered by the Web. Reader responses ranged—some agreed while others remained quite skeptical. Here are a few choice highlights:
Word of the Week
A front-page story in Sunday’s New York Times discussed what the paper describes as Wall Street’s next big money-making scheme: buying “life settlements.” What’s a life settlement? Basically, it’s the selling of your life insurance policy to some third party in exchange for cash. The buyer becomes your policy’s beneficiary and takes over payment of the premiums. Upon your death, whoever bought your policy no longer has to pay the premiums and gets to collect your death benefit.
Van Jones’ Unsurprising Fall From Grace
It is not hard to imagine Van Jones signing a piece of paper he did not read. Back in April, I wrote a profile of Jones for TBM just as he was starting to work for the White House. When I visited, he was juggling two BlackBerrys and a briefing binder and kept mentioning how disorganized he was. When he wasn’t giving a speech, his thoughts were never in one place for more than 60 seconds. He is a jumble until he opens his mouth to speak the green-economy gospel.
Meltdown Anniversary Watch, Part 4
As we approach the anniversary of Lehman Brothers' bankruptcy, new meltdown memes are entering the media stream. Over the weekend, Richard Beales of Breakingviews.com assessed the state of the prime brokerage business (that is, helping hedge funds to manage and trade against their holdings) and concluded: Everything has changed.
Word of the Week
According to Monday’s Wall Street Journal, “Through more than 50 deals known as ‘loss shares,’ the FDIC has agreed to absorb losses on the detritus of the financial crisis—from loans on two log cabins in the woods of northwestern Illinois to hundreds of millions of dollars in busted condominium loans in Florida.” OK, this sounds confusing. What’s a loss share and why are log cabins involved?
Meltdown Anniversary Watch, Part 3
Floyd Norris’s New York Times column this morning is not exactly pegged to this month’s anniversary of the meltdown. Nonetheless, Norris offers up a meme we suspect will recur throughout this month’s coverage, namely: Ben Bernanke is a genius.
TBM Now on Kindle
Part of modern publishing means embracing as many platforms as practical. Here at The Big Money, in our first year we've not made a huge push to optimize our site for mobile devices, but we are making progress.
How To Buy a Facebook Friend
Facebook has rarely been the platform for propriety. And yet, when a barrier is crossed like, say, buying people, it shocks the senses. That’s where uSocial comes in.
“Friends: people say they can't be bought, though in this day and age it's simply not the case,” is the marketing battle cry of this upstart with a simple mission. They promise that their Facebook marketing service can net you friends “in packages up to 5,000.”
Meltdown Anniversary Watch, Part 2
In today's Wall Street Journal, Dennis Berman offers a variation on Joe Nocera's Meltdown Anniversary meme: Don't look there for the meaning of the meltdown, look here.
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