How the Masters of the Universe got that way

By Michael Fraase

Tuesday, 11 November 2008 09:18PM CDT

Section: Business

Freakout dollarLast September, the US Federal Reserve Board bailed out American International Group (AIG) to the tune of US$85 billion. In return, the US citizenry received 80% of the company. This was one of those “too big to fail” deals.

Here’s how the New York Times explained the reasoning behind the bailout:

“If AIG had collapsed—and been unable to pay all of its insurance claims—institutional investors around the world would have been instantly forced to reappraise the value of those securities, and that in turn would have reduced their own capital and the value of their own debt. Small investors, including anyone who owned money market funds with AIG securities, could have been hurt, too. And some insurance policy holders were worried, even though they have some protections.“

Um, isn’t that how it’s supposed to work? When you make a bad investment, you take the loss—you can bet your ass that the individual AIG investors have already taken their losses. Insurance is another matter entirely of course, but as the Times stated, there are protections already in place for AIG policy holders. Because the value of investments in AIG are not being reset, the Federal Reserve has done nothing to prevent this from happening again. Worse, there’s nothing being done to address the “too big to fail” issue. If an entity is too big to fail it’s too big to exist. Pretty simple—not exactly rocket science.

Oh, but we’re not done yet. Not hardly.

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The next 6,500 days

By Michael Fraase

Sunday, 09 November 2008 02:18PM CDT

Section: Internet

Semantic webIt’s been about 6,500 days since Tim Berners-Lee published the first page on the web. 6,500 days. Everything that’s happened on the web has happened in the last 6,500 days.

Earlier this week, Kevin Kelly spoke briefly—but deeply—at the Web 2.0 Summit on what’s likely to happen with regard to the web during the next 6,500 days.

I’ve followed most of what Kevin Kelly has done for the last 20 years because he’s a completist—he does something until it’s done and then moves on. He thinks deeply and completely. And he’s at it again.

Kelly begins by pointing out that what’s happened on the web in its first 6,500 days is impossible. “There’s not enough money in the world, 6,000 days ago, to accomplish all the things that have happened already,“ said Kelly. We have to start thinking differently about what’s impossible, he says.

First, we linked data and shared packets. Then we linked pages on the web and shared those links. Throughout both of these phases we were concerned about the sharing piece of the equation. We’ve mostly gotten over these concerns.

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Election night with the master

By Michael Fraase

Wednesday, 05 November 2008 11:37AM CDT

Section: Politics

Bob Dylan 2008Bob Dylan played the University of Minnesota last night for the first time ever. While the front-of-house sound was a mixed bag—the guitars were clear as a bell; Dylan’s vocals were incredibly mushy—it was an historic, yet vaguely predictable night.

Dylan’s shows are usually either spectacular or spectacularly lackluster. The US election night show was more erratic than John McCain’s campaign. Chalk it up to constantly different arrangements for the old chestnuts, I suppose. The mushy vocals were attributable to a crooner with a croak and bad microphone selection. But Masters of War, It’s Alright, Ma (I’m Only Bleeding), and Blowin’ In The Wind were exceptionally well done.

Last summer, Dylan told the Times of London, “We’ve got this guy out there now who is redefining the nature of politics from the ground up: Barack Obama. He’s redefining what a politician is, so we’ll have to see how things play out. Am I hopeful? Yes, I’m hopeful that things might change. You should always take the best from the past, leave the worst back there and go forward into the future.“ So you just had to know this show was going to be a political statement.

The setlist was carefully selected for US election night:

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