Thursday, December 30, 2010

Making Money Through

No summary of 2010, visual or otherwise, would be complete without an extensive overview of what pundits call Monetary Stimulus, quantitative easing or Large Scale Asset Purchases, and the peasantry calls, just as correctly (with a few footnotes), the printing of money. If there are two words that define what we had an absence and an abundance of in the past year, those would be jobs, and money. As some of the key jobs-related charts were presented yesterday, below, once again courtesy of BusinessWeek, are the main charts that among other things demonstrate the various currency manipulation playbooks, the price of gas in bacon and other products, the annotated strength of the dollar through time, and what is actually printed when the Fed does print money.

The first chart shows the progression of dollar strength (and weakness) with an annotation for contemporaneous global events. What is ironic is that while everyone realizes the world is still in a very week position, the core debate over who is weaker - Europe or the US, is sure to provide many hours of entertainment in 2011. And as a bonus, the man whose policies, together with those of Bernanke, are instrumental in just how weak the dollar gets, is presented in his key natural states: from lying just every so slightly, to lying a lot, to lying profusely to save his life, to lying at such a rate, it would make those whose pants are burning, blush with envy. And now you will know how to distinguish the four... 

The next chart deals with the actual money printing, but not in an deeply philosophical manner, one in which hours of debate are wasted over whether trillions in excess reserves are actually printed money (even though the last time someone acquired USTs, MBS, and soon Munis and ETFs, with pixie dust, the legal consequences were not all that palatable). Of the just over $300 billion in actual currency printed in 2010, the vast majority was in $100 bills, next up was $20s, followed by $5s, $10s, and lastly, singles. Not a single $50 bill was printed. Also noted: the amount of cash in corporate America. Of particular interest: GM has more than half of its market value, or $27.5 billion sitting in cash. Lastly, and this not come as a surprise to many, the money multiplier: the money supply divided by the monetary base, is at near record lows, courtesy of the $1 trillion in excess reserves.

Another popular meme in 2010 was pricing X in Y, most often the stock market in gold, in which basis it is still down for the year, as gold (not to mention silver), despite the short memory of many, is by and far the best performing asset class of 2010. Those who followed our advice in early 2010 to avoid stocks and to invest in gold, are ahead of most. The chart below takes a comic approach to this relative performance, showing how much the price of gas changed when priced in other "currencies."

Last, and probably most interesting, is the graphic presentation of the currency manipulator playbook: in a world in which Ben Bernanke knows very well he has little competition when it comes to doing as he chooses with the world's reserve currency (for now), other sovereigns are forced to come up with their unique responses. The playbook below shows all the various defensive tactics adopted so far. Luckily, few offensive plays have been established to date. We doubt that will be the status quo for a long time.

And as John Taylor and many others have pointed out, now that the fiscal "stimulus" of the payroll tax has been exhausted in a few short weeks courtesy of the jump in crude oil, and any further fiscal intervention not likely to occur unless Congress wants another incumbent bloodbath next time around, as Americans are tired of subsidizing banker lifestyles, expect to see many additions to the FX manipulation playbook, as the year progresses and monetary intervention continues to be the only direct way of making sure every new banker bonus year is a record one is via the Fed and its ongoing dollar printing-cum-debasement. That said, should the bankrupt European house of cards continue to wave a white flag of surrender every 3 months, the race to the bottom may not have a clear winner well after 2011 is also history.

All charts courtesy of BusinessWeek





A little OTB update: Yes, it's still dead and its employees have been put to pasture...except for CEO Gene Rayburn. Earlier this year, it was noted that Rayburn was being paid $125,000 a month and it turns out he's on payroll through January 14. The Daily News reports, per the governor's office, "Rayburn has stayed on to 'finish everything up.' The restructuring specialist is dealing with the outfit's remaining issues in bankruptcy court and is making sure money owed to various creditors and staffers is paid out... By the time he is through, Rayburn will have been paid at least $750,000 for six months on the job. His predecessor made $175,000 annually."




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Fox <b>News</b>, Hypocrisy, And “Politically Correct” Journalism

My earlier post about Megyn Kelly's absurd equation of illegal immigration and rape in a discussion about changes to the Associated Press Style Guide.

Windows Phone Marketplace hits 5000 Apps and is Cracked

There's been good news and bad for Microsoft this week. The good news is that the number of apps available in the new Windows Phone marketplace has been growing steadily since October and has now passed the 5000 mark. ...

BIl Hemmer - Fair And Balanced Alive And Well - Fox <b>News</b> | Mediaite

Fox News host Bill Hemmer, preparing for a long night in Times Square alongside Megyn Kelly for Fox's All-American New Year's Eve has strongly defended Fox against the charge the network's anything but a shoot it down the middle real ...


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Tuesday, December 28, 2010

personal financeonline personal finance


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Phila. Gay <b>News</b> Editor On Elton John: &#39;Couldn&#39;t Find A Better <b>...</b>

After struggling to adopt for years, one of music's most influential men is now a dad. Sir Elton John and his partner, David Furnish, now have a son, born to a surrogate in California on Christmas Day.

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Cable <b>News</b> Ratings 2010: Top 30 Programs Of The Year (PHOTOS)

2010 is almost done, and the cable news ratings for the entire year are in. As always, Fox News came out on top, thoroughly dominating the competition and taking the top 12 slots on the ratings list.


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Phila. Gay <b>News</b> Editor On Elton John: &#39;Couldn&#39;t Find A Better <b>...</b>

After struggling to adopt for years, one of music's most influential men is now a dad. Sir Elton John and his partner, David Furnish, now have a son, born to a surrogate in California on Christmas Day.

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2010 is almost done, and the cable news ratings for the entire year are in. As always, Fox News came out on top, thoroughly dominating the competition and taking the top 12 slots on the ratings list.


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Phila. Gay <b>News</b> Editor On Elton John: &#39;Couldn&#39;t Find A Better <b>...</b>

After struggling to adopt for years, one of music's most influential men is now a dad. Sir Elton John and his partner, David Furnish, now have a son, born to a surrogate in California on Christmas Day.

Chupacabra Watch: Kentucky Livestock Killer Could Be Hairless Coyote

Weird News From Our Partners. Fark � Fark's 2010 Headline of the Year contest: Politics tab headlines � Fark's 2010 Headline of the Year contest: Showbiz tab headlines ...

Cable <b>News</b> Ratings 2010: Top 30 Programs Of The Year (PHOTOS)

2010 is almost done, and the cable news ratings for the entire year are in. As always, Fox News came out on top, thoroughly dominating the competition and taking the top 12 slots on the ratings list.


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Phila. Gay <b>News</b> Editor On Elton John: &#39;Couldn&#39;t Find A Better <b>...</b>

After struggling to adopt for years, one of music's most influential men is now a dad. Sir Elton John and his partner, David Furnish, now have a son, born to a surrogate in California on Christmas Day.

Chupacabra Watch: Kentucky Livestock Killer Could Be Hairless Coyote

Weird News From Our Partners. Fark � Fark's 2010 Headline of the Year contest: Politics tab headlines � Fark's 2010 Headline of the Year contest: Showbiz tab headlines ...

Cable <b>News</b> Ratings 2010: Top 30 Programs Of The Year (PHOTOS)

2010 is almost done, and the cable news ratings for the entire year are in. As always, Fox News came out on top, thoroughly dominating the competition and taking the top 12 slots on the ratings list.


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Phila. Gay <b>News</b> Editor On Elton John: &#39;Couldn&#39;t Find A Better <b>...</b>

After struggling to adopt for years, one of music's most influential men is now a dad. Sir Elton John and his partner, David Furnish, now have a son, born to a surrogate in California on Christmas Day.

Chupacabra Watch: Kentucky Livestock Killer Could Be Hairless Coyote

Weird News From Our Partners. Fark � Fark's 2010 Headline of the Year contest: Politics tab headlines � Fark's 2010 Headline of the Year contest: Showbiz tab headlines ...

Cable <b>News</b> Ratings 2010: Top 30 Programs Of The Year (PHOTOS)

2010 is almost done, and the cable news ratings for the entire year are in. As always, Fox News came out on top, thoroughly dominating the competition and taking the top 12 slots on the ratings list.


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Phila. Gay <b>News</b> Editor On Elton John: &#39;Couldn&#39;t Find A Better <b>...</b>

After struggling to adopt for years, one of music's most influential men is now a dad. Sir Elton John and his partner, David Furnish, now have a son, born to a surrogate in California on Christmas Day.

Chupacabra Watch: Kentucky Livestock Killer Could Be Hairless Coyote

Weird News From Our Partners. Fark � Fark's 2010 Headline of the Year contest: Politics tab headlines � Fark's 2010 Headline of the Year contest: Showbiz tab headlines ...

Cable <b>News</b> Ratings 2010: Top 30 Programs Of The Year (PHOTOS)

2010 is almost done, and the cable news ratings for the entire year are in. As always, Fox News came out on top, thoroughly dominating the competition and taking the top 12 slots on the ratings list.


bench craft company scam

Phila. Gay <b>News</b> Editor On Elton John: &#39;Couldn&#39;t Find A Better <b>...</b>

After struggling to adopt for years, one of music's most influential men is now a dad. Sir Elton John and his partner, David Furnish, now have a son, born to a surrogate in California on Christmas Day.

Chupacabra Watch: Kentucky Livestock Killer Could Be Hairless Coyote

Weird News From Our Partners. Fark � Fark's 2010 Headline of the Year contest: Politics tab headlines � Fark's 2010 Headline of the Year contest: Showbiz tab headlines ...

Cable <b>News</b> Ratings 2010: Top 30 Programs Of The Year (PHOTOS)

2010 is almost done, and the cable news ratings for the entire year are in. As always, Fox News came out on top, thoroughly dominating the competition and taking the top 12 slots on the ratings list.


bench craft company scam

Phila. Gay <b>News</b> Editor On Elton John: &#39;Couldn&#39;t Find A Better <b>...</b>

After struggling to adopt for years, one of music's most influential men is now a dad. Sir Elton John and his partner, David Furnish, now have a son, born to a surrogate in California on Christmas Day.

Chupacabra Watch: Kentucky Livestock Killer Could Be Hairless Coyote

Weird News From Our Partners. Fark � Fark's 2010 Headline of the Year contest: Politics tab headlines � Fark's 2010 Headline of the Year contest: Showbiz tab headlines ...

Cable <b>News</b> Ratings 2010: Top 30 Programs Of The Year (PHOTOS)

2010 is almost done, and the cable news ratings for the entire year are in. As always, Fox News came out on top, thoroughly dominating the competition and taking the top 12 slots on the ratings list.


bench craft company scam

Phila. Gay <b>News</b> Editor On Elton John: &#39;Couldn&#39;t Find A Better <b>...</b>

After struggling to adopt for years, one of music's most influential men is now a dad. Sir Elton John and his partner, David Furnish, now have a son, born to a surrogate in California on Christmas Day.

Chupacabra Watch: Kentucky Livestock Killer Could Be Hairless Coyote

Weird News From Our Partners. Fark � Fark's 2010 Headline of the Year contest: Politics tab headlines � Fark's 2010 Headline of the Year contest: Showbiz tab headlines ...

Cable <b>News</b> Ratings 2010: Top 30 Programs Of The Year (PHOTOS)

2010 is almost done, and the cable news ratings for the entire year are in. As always, Fox News came out on top, thoroughly dominating the competition and taking the top 12 slots on the ratings list.


bench craft company scam

Phila. Gay <b>News</b> Editor On Elton John: &#39;Couldn&#39;t Find A Better <b>...</b>

After struggling to adopt for years, one of music's most influential men is now a dad. Sir Elton John and his partner, David Furnish, now have a son, born to a surrogate in California on Christmas Day.

Chupacabra Watch: Kentucky Livestock Killer Could Be Hairless Coyote

Weird News From Our Partners. Fark � Fark's 2010 Headline of the Year contest: Politics tab headlines � Fark's 2010 Headline of the Year contest: Showbiz tab headlines ...

Cable <b>News</b> Ratings 2010: Top 30 Programs Of The Year (PHOTOS)

2010 is almost done, and the cable news ratings for the entire year are in. As always, Fox News came out on top, thoroughly dominating the competition and taking the top 12 slots on the ratings list.


bench craft company scam

Phila. Gay <b>News</b> Editor On Elton John: &#39;Couldn&#39;t Find A Better <b>...</b>

After struggling to adopt for years, one of music's most influential men is now a dad. Sir Elton John and his partner, David Furnish, now have a son, born to a surrogate in California on Christmas Day.

Chupacabra Watch: Kentucky Livestock Killer Could Be Hairless Coyote

Weird News From Our Partners. Fark � Fark's 2010 Headline of the Year contest: Politics tab headlines � Fark's 2010 Headline of the Year contest: Showbiz tab headlines ...

Cable <b>News</b> Ratings 2010: Top 30 Programs Of The Year (PHOTOS)

2010 is almost done, and the cable news ratings for the entire year are in. As always, Fox News came out on top, thoroughly dominating the competition and taking the top 12 slots on the ratings list.


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Thursday, December 23, 2010

Companies Making Money



Le Web 10 host Loic Le Meur just finished his on-stage interview with Alexander Tamas, Partner at one of the most watched technology investment firms on the planet, DST / Mail.ru Group.


That’s quite a presence you have: Groupon, Zynga, Facebook and … Twitter?


Not Twitter (smiles).


What is DST?


The firm originated in Russia, grew out of social networking company called Mail.ru, and at some point we started making international investments. Facebook was our first one.


How big is your stake in Facebook now?


It’s hard to say, we’ve made some straightforward investments and then we bought as many shares from early employees and investors as possible. We’ve definitely invested more than $500 million in total though.


So Facebook was your first investment – how did that come about?


Well, we owned and ran a social network in Russia, but the dynamics there were different, we were actually ahead of most social sites. Every single one of our countries became really big. So, we knew there was money in it, and we realized quickly that it was only a matter of time for Facebook to become really large worldwide.


Did you lead the Mail.ru Group IPO as well?


Yes, that was last month.


Is it the biggest tech IPO in Europe to date?


In the past few years, yes. The initial market valuation was about $6 billion, we’re now at roughly $8 billion.


So when’s the Facebook IPO planned?


I don’t have any comments on that (smiles).


Do you sit on the Facebook board?


No we actually don’t, but we obviously have good relationships with management and other board members. our perspective is that it’s entirely possible to be a major investor in a company without being on the board, as long as you have an open dialogue with the people in charge.


You got in late, what was Facebook’s valuation at the time?


We got in at a $6.5 billion valuation. It’s difficult to say what the valuation is now – although I can tell you the secondary market ones are based on limited information and generally not super accurate.


We haven’t purchased Facebook shares in quite some time though.


The Zynga investment came after Facebook?


Yes.


Why haven’t they been acquired yet?


If you’re a founder of company like Zynga, with fast growth and massive revenues, it only makes you wealthy on paper, right. So you used to have two choices: sell or take it public. Now, companies can get liquidity early on, so it takes the pressure of.


We invested $150 million in Zynga, but we didn’t disclose at what valuation.


So Groupon was almost sold …


I can’t comment on the rumors, but I can tell you that they’re going for it. They realize they have something special and there’s a lot of potential for Groupon to become a generation-defining company. They’re shooting for the stars.


By the way, I’m always amazed when people discuss valuations of private companies without actually knowing the financials. The truth is most people can’t say whether investments come cheap or expensive, as commentators. It all depends on how you measure growth, and most people tend to think linearly.


When we invested in Groupon, they sold 4 million groupons, a month later it was 25% more. The potential was obvious. They’ll hit 20 million groupons sold next week.


How does a startup get an investment deal out of DST? Is Twitter big enough, as an example?


It’s definitely an interesting company, but there are more. What we look at is that you have to be on a path to become a clear leader in your segment, companies that could theoretically go public today. We want to know all companies, but we focus our investments on those with long-term sustainability.


You know, we’re not an early-stage investor. We’re really small, with no people on the ground. So we can’t really help companies when they’re just getting started, apart from writing a check, and that’s not what we want. There are many more capable firms for that.


So startups should give you a call when they hit a $1 billion valuation?


Not really, we’ll also talk to you if you’re clearly on a path to becoming a $1 billion company down the line.


What about Foursquare?


There are lots of opportunities for them, they’re seeing good growth, so it could become a really interesting company for sure.


You’re (sort of) a European fund – why don’t you invest more here?


Groupon, Zynga and Facebook really just happened to be US companies, we look all over the world for companies. We tick boxes, and we can do that anywhere.


Many of the startups in Europe for some reason want to sell out early. That’s not what we’re looking for. There aren’t enough role models here, so less confidence.


Do you look at Asia, more specifically India, China and Japan?


It’s definitely a geography we’re looking at. We know a lot of the companies there already.


What’s your advice for young entrepreneurs?


Not many people have the opportunity to really change the world. If you have an urge to build something that could, don’t focus on the money, but the legacy you’ll leave behind.


It’s a once-in-a-lifetime opportunity to build a generation-defining company, so I applaud people for shooting for the stars. It’s a much more rewarding thing than doing it for the money.


I mean, look at Le Web, it’s not just about the money right, it’s also the community, helping out startups throughout Europe.


Loic: yes, we actually got a few offers, but we’re not looking at that right now.



Pocket Gems has raised $5 million in funding from Sequoia Capital and other Silicon Valley luminaries as it competes in the crowded iPhone game market.


The small San Francisco company has had five major hits on the iPhone, even though its founders were still in university when they launched their first game a year ago. The funding from venerable venture capital firm Sequoia is a testament to the rapid growth of the iPhone as a viable platform for making money with games. The funding also included Michael Dearing, an eBay veteran and associate professor at the Stanford University Institute of Design, Jeff Fluhr, co-founder and former chief executives of StubHub, and Omar Hamoui, founder of AdMob. Sequoia partner Jim Goetz will join Pocket Gems’ board.


That’s rarified company for an independent maker of iPhone games with only 11 employees. But Pocket Gems has seen all five of its games hit the top 10 list on the iPhone and have been downloaded more than 15 million times. Daniel Terry, chief executive, and Harlan Crystal, chief technology officer, founded Pocket Gems in 2009 while Terry was still an MBA student at Stanford University. Their first game was Tap Farm for the iPhone, and they’ve followed it up with Tap Store, Tap Jungle, Tap Zoo and Tap Zoo Christmas.


In an interview, Terry said they were in the right place at the right time to take advantage of the emerging virtual goods business model on the iPhone. Just a year ago, Apple launched its in-app purchases, which allowed gamers to buy virtual goods within a game. That turned out to be a much more lucrative business opportunity for many game makers, including Ngmoco, which was acquired for $403 million by Japan’s DeNA. All of Pocket Gems games are free-to-play, where users play for free and pay real money for virtual goods via the in-app purchases.


Goetz said in an interview that Sequoia — which has funded lots of blockbusters from Apple to Electronic Arts — was interested in Pocket Gems because the team was so skillful at building hit games and the technology to go with them. Many game developers outsource the social networking in their games to companies such as OpenFeint. But Terry said that Pocket Gems uses Facebook Connect and has built its own platform for encouraging gamers to share games with their friends.


In the past, venture capital firms focused on Facebook game companies rather than iPhone game companies. But Facebook is now the domain of big companies such as Zynga, CrowdStar, EA Playfish, Disney-Playdom and others. With the Ngmoco purchase, mobile gaming is getting a lot more attention. Smartphones are gaining traction and the overall mobile gaming market could almost double from $6 billion in 2009 to $11 billion in 2015, according to Juniper Research. Much of the increase could come from virtual goods sales.


Terry said the company was profitable within weeks after its founding and remains so today. He also said that revenues are now above a million dollars a month, though he declined to be more specific. The company’s games are available on iOS (iPhone, iPod Touch, iPad) devices and will expand to Android soon. Terry said the company will hire new developers to increase its pace of development.


“The App Store ecosystem has democratized mobile game development,” said Terry, who got his MBA four months ago.”If you have a good game, you can get it in front of tens of millions of players.”


Next Story: How to protect your company in a WikiLeaks world Previous Story: Bing exec explains how social can win the search race




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Wednesday, December 22, 2010

Making Money System



The FEC just put a halt to political contributions via text message. The CTIA (the Cellular Telecommunications Industry Association) accused the FEC of "a history of imposing additional burdens that are above and beyond what the law requires," but the real problem is the carriers' inability to deliver contributions in a timely manner. If carriers were willing to address this and a way to more accurately account for who the donation is coming from, we could easily see mobile giving making an impact in the 2012 elections. It just needs to be accountable and transparent.



Instead of criticizing the ruling, wireless companies should address the problems their billing systems might have separating corporate funds from political contributions and also making sure that donors could not use the system to exceed the $50 limit for anonymous donations. These requirements aren't going "above and beyond the law," but are necessary to prevent illegal contributions from flowing to candidates. Additionally, federal law requires campaign contributions be forwarded to a campaign within ten days, but mobile companies typically work on a thirty day billing cycle. Many non-profits who have experimented with mobile giving usually find it takes even longer to get their money -- sometimes more than 90 days -- if they aren't receiving a large amount of donations. This won't work for campaigns soliciting donations 3 weeks before Election Day.



As easy as it is to put the blame on the FEC for holding back progress, the real problem is the unwillingness to make changes to the carriers' system for processing mobile contributions. There is enough unregulated money coursing through the body politic without wireless companies creating a new platform for abuse.



A method for making political contributions via text would be a victory for those who believe in the power of small-dollar contributions, but my desire for justice and accountability is far greater. When the wireless companies take the necessary steps to accommodate the FEC -- in time, I believe they will -- our democracy will benefit by allowing individuals to more easily contribute to the candidates they support and causes they are concerned about. The potential for mobile contributions remains great, but they must be done right.








"Being good in business is the most fascinating kind of art," Andy Warhol famously said. "Making money is art and working is art and good business is the best art." Having gotten his start as an immensely successful commercial artist selling product illustrations to advertisers and department stores, Warhol bent the American consumerist system to artistic ends throughout his career -- embracing capitalism at a time when many in the creative sphere viewed it skeptically, if not with outright hostility. Now a new exhibition at the Indianapolis Museum of Art called "Andy Warhol Enterprises" has seized upon a recent resurgence of interest in the artist's work to closely examine just how Warhol treated business, commerce, and, above all, money in his art and life.



At an economic moment when the art market is booming -- with a Warhol painting selling for $63.4 million at Phillips de Pury last month -- as the rest of the country struggles through a grueling recession, wealthy businessmen have been demonstrating extraordinary confidence in art as a liquid financial asset. Warhol, it could be said, took the opposite approach -- he saw business as a dependable artistic asset. To discuss the ways in which the Pop artist approached this sweeping subject, ARTINFO executive editor Andrew M. Goldstein spoke to the exhibition's co-curator Sarah Urist Green, who organized the show with art critic Allison Unruh.




Andy Warhol for Sony Beta cassette tapes, 1981 / © The Andy Warhol Foundation for the Visual Arts, Inc.




One of the interesting things about your exhibition is that it is sponsored by PNC Bank, which is in itself a commentary of a kind on the relationship between business and art.



When I got a call from Max Anderson, our director, asking if I would be interested in curating a show in conjunction with PNC bank and the Warhol Museum, my first reaction was a little bit hesitant. But I thought, "Warhol certainly wouldn't mind having a show sponsored by a bank. He would probably have really liked it." And I love the fact that Warhol had the corporation Andy Warhol Enterprises -- it has always stood out to me as a really fine example of Warhol as an entrepreneur -- and Andy loved money. So I though lets do a show about Andy loving money, but in a critical, engaged way.



Did they have any part in coming up with the show's conceit?



No, this is something that we pitched to them. And they loved it. I especially thought it was hilarious that for once we would be able to even flaunt a sponsor's name and logo in conjunction with the exhibition. Whenever we were creating collateral for the show I was able to say "don't forget the logo" and "make the logo bigger."



The exhibition catalogue shows Warhol as a shameless self-promoter, even appearing on Japanese film ads like the cliché of Bill Murray's character going to sell Japanese whiskey in "Lost in Translation."



That's perfect, right? But he was doing that from the beginning. Something we didn't have an image of in the catalogue but that was always in my mind in developing the show was the classified ad he put in the Village Voice in 1966 that said, "I will endorse with my name any of the following" and then it was just a list of all of the things he was happy to endorse, which included "anything." So he was a bit of a whore, as it were, from the beginning. One of the ideas that we have really tried to work against in this exhibition is that there was a turning point in Warhol's career -- this idea that before he was shot there was a certain integrity to his work and after a turning point it all dissipated and he became a servant to celebrities and society members. I don't believe that that is true. He even said later in his career, "I was always a commercial artist."



That is so interesting because that recent biography of him, Pop: The Genius of Andy Warhol, ends when he was shot in 1968, essentially condensing the last two decades of his career into a few paragraphs, largely dismissing it as commercial work.



I know. It's a great book, it's excellently researched, has great material, but it just ends! He was shot in 1968 but he didn't die until 1987. It is really incredible that that perception persists -- I mean, it is really prevalent, especially, of that generation. This exhibition is one of several in the past few years that is re-examining his later work including the "Last Decade" show and "Pop Life." These other exhibitions are looking at his later work in a fresh light. But I feel sometimes that the members of Warhol's own generation, or the people who were there, were sometimes clouded in their judgment and unable to see the irony of his later work.



I think it is so interesting your catalogue opens with a picture of Warhol sitting behind a desk. I can't think of another artist, like that, sitting behind a desk. Even Jeff Koons or Damien Hirst wouldn't take that picture.



Oh, no. You have seen pictures of them at their desk in their studios, maybe sitting with desks or papers or tables behind them, or maybe at a computer, but not this -- in such an officious role! I love that photo. It hasn't been published very much, and it was really important to us to include it. There is actually another version of this photo that is backed up a little more and it shows that, to the right of the telephone, there is a TV facing him.



The essays in the catalogue present Warhol as this businessman sitting behind a desk, running Warhol Enterprises, concocting a new moneymaking scheme every day, wearing a tie, and flying by Concorde. And it certainly worked: the final valuation of his estate was $228 million.



That's correct, though I'm not sure exactly how the Warhol Museum came to that figure. I am pretty sure that it is the valuation of his work at the time of his death plus all of the other art work he collected, because he had quite a collection of decorative art and some work by other artists, as well. Also, it includes his real estate holdings.



So, just like any other CEO.



Exactly. In the exhibition we have a portfolio that says "Andrew Warhol Enterprises Inc." on the front and it sort of goes through the value of his estate in 1965, and lists artworks that he owned -- some small Rauschenberg works and other items. But he did amass quite a bit of wealth in his days. Even in the 50s, in the first decade of his career, he did amazingly well as a commercial artist. So he was very well off even before he became famous.



What was he like as a boss?



As a boss? Well, we interviewed Vincent Fremont in the catalog and that is one account of many accounts, but at a certain point in my research it became unhelpful to read the accounts of everyone who worked for him. The people who were very close to him seemed to love him, like Pat Hackett [Warhol's secretary]. While they had not an uncomplicated relationship with Warhol, they certainly had extreme fondness for him. But then you read accounts like Bob Colacello's "Holy Terror" and you see a different side but one that is cited often, the flip side of Andy Warhol, where while he could be incredibly encouraging to other people, to other employees, other artists, he was also pretty cruel in certain regards as well.



What fascinates me is that while he presents this image as a business man -- "the business artist" -- his own management of his affairs was much more like an artist. He hardly paid anyone except with drugs, or parties, or the occasional lunch money.



Part of Warhol's brilliance at an early age was getting people to help him for free. In the 50s he would have these coloring parties where he would invite his friends to Serendipity 3 to help him hand-color his blotted line drawings, and he had his mother help him as well. He certainly had paid assistants, too. All of his films made it look like people in the factory were just sitting around, but he was certainly very good at getting people to work for him for free, and I'm sure it was mutually beneficial. It turned from the "Factory" into the "Office", and his staff members grew as his life progressed. But he certainly did know how to run a business and get the most out of his employees.



Did they have health care? Or anything like that?



I don't know, but there is a great Warhol quote: "Employees made the best dates. You don't have to pick them up and they are always tax deductible."



It is funny to think about how much of a chaotic mess his workplace was.



Well, you see the time capsules, and you get a small glimpse of his business life because the time capsules were basically his sweeping off his desk every so often and putting it in a box. And if you go to the Warhol Museum archives and you take a peek in those time capsules, it is really astounding the amount of stuff that almost anyone would throw away that Warhol kept.



What stands out in your memory?



Ticket stubs, taxi receipts, small notes about his finances. If you look in his diaries, you will see that the "Andy Warhol Diaries" actually originated because his accountant wanted him to track his daily expenses, and then it expanded from there. But it will say "taxi, 3 dollars" and so on. That is in the "Andy Warhol Diaries" that Pat edited. He would call her in the mornings and she would transcribe his day-to-day activities for many years. And some of them... I mean, it's funny, but pretty tedious at a certain point. He will say who he went out with the night before, who was at Studio 54, et cetera. They also found in the time capsules over a thousand dollars in cash that he just stuck in one of the boxes. I tried to get that for the show, actually, but I think they gave it to the Warhol Foundation.



Continued...



--



Visit "The Business Artist: How Andy Warhol Turned a Love of Money Into a $228 Million Art Career" on ARTINFO for the rest of Andrew Goldstein's interview with IMA curator Sarah Urist Green about the themes in her probing exhibition, including a discussion of Warhol's role as Factory foreman, his money paintings, and his vulgarity, and to see a slide show of Andy Warhol's most famous money-making works.



--



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Sunday, December 19, 2010

foreclosure agents



I mentioned at some point the Congressional Research Service report on robo-signing and foreclosure fraud. I managed to snag a copy of it, and it does a pretty good job of laying out the stakes, which it agrees are completely unknown at this point. It reiterates that the servicers believe they have performed lawfully and not wrongfully foreclosed on anyone, but that the robo-signing problems could be masking more substantive issues around the true ownership of the mortgage and the property.


The report goes through the fact that the land recording system that was set up in this country in the colonial age has only recently been disrupted by the advent of MERS, the electronic registry which short-circuited that process and substituted themselves as the mortgagee on official documents, with the constant trading of mortgages happening on their database. “The use of MERS raises a number of legal questions,” the report says, “such as whether MERS has the legal standing to initiate foreclosures in its own name and to what extent recording MERS as mortgagee or assignee provides sufficient notice to subsequent purchasers under state recording statutes, which are currently being litigated in many jurisdictions.”


It also covers the chain of title issues with the servicers and the trustees in securitization. Basically, both the servicers and the trustees are supposed to act as agents for the mortgage holders, in this case the investors in the mortgage-backed securities. However, the report admits that “engaging in loss mitigation efforts usually is more expensive and time consuming for servicers than initiating foreclosure,” which is at direct odds with the financial incentive of the mortgage holder. In addition, “Although servicers of securitized mortgages are supposed to act as agents on behalf of the MBS investors, one of the servicer’s affiliates may have an interest in the underlying mortgages, which some have argued creates a conflict of interest.”


The report also looks at the judicial and non-judicial foreclosure process in the states, which they agree is a state matter. This is why a solution from Congress will be so impossible to manage, as the states have their own particular laws around these issues. The report discusses the legal standing to foreclose in judicial states, the issue at the heart of foreclosure fraud, and what prompted the robo-signing, some theorize.


Here’s where the report gets interesting. The report is in the typically muted CRS style, where the risks are downplayed somewhat and all claims are counter-balanced with competing counter-claims. But this was a significant note:




eric, there is no such thing as race OK. It was a term which sprang forth from the heady pre scientific days of philosophers.


The concept of race in today’s society is loaded with assumptions, political agendas, and unspoken emotional associations. According to philosophers, Bernasconi and Lott, it was first used in its modern form in 1685, by Francios Bernier. However, in the 17th century when the term was first emerging in intellectual discourse, ‘race’ had a variety of meanings; indeed, no one was committed to a specific definition. It was not until 1775 in his essay, Of the Different Races of Men, that Immanuel Kant gave the term its first explicit definition


But why was ‘race’ an issue at this time? Not unlike the multiplicity of connotations the idea has in today’s society, ‘race’ evolved from a complex interaction of philosophical, scientific, religious and political frameworks.


The concept of race in today’s society is loaded with assumptions, political agendas, and unspoken emotional associations. According to philosophers, Bernasconi and Lott, it was first used in its modern form in 1685, by Francios Bernier. However, in the 17th century when the term was first emerging in intellectual discourse, ‘race’ had a variety of meanings; indeed, no one was committed to a specific definition. It was not until 1775 in his essay, Of the Different Races of Men, that Immanuel Kant gave the term its first explicit definition


But why was ‘race’ an issue at this time? Not unlike the multiplicity of connotations the idea has in today’s society, ‘race’ evolved from a complex interaction of philosophical, scientific, religious and political frameworks.


http://www.suite101.com/content/the-intellectual-origins-of-race-a8926


or more to your leanings see:


The next question is “Can race be Biblically defined?” The term race does not appear in the Bible. The Bible refers to differing peoples in terms such as family, tribe, people and nation. It groups people according to familial relationships and then into nationalities. An example of familial relationship is found in Genesis 10, where the genealogies listed are grouped by family. It should be noted that nowhere are the sons of Noah associated with race or color. An important passage on this matter is found in Genesis 10:5:


“By these were the isles of the Gentiles divided in their lands; every one after his tongue, after their families, in their nations” (Gen. 10:5).


Note that familial and national division is shown, as well as division by geography and language (tongue). The significance of this will be discussed later in this paper. No where in the Bible is prejudice based on what we determine as race; i.e. color of hair, skin, eyes or physical characteristics. When God commanded the children of Israel to be a separated people or to utterly destroy other peoples, it was always based on the principle of separation from sin. The same principle of separation is presented in the New Testament when Christians are commanded to come out of the world and not be unequally yoked with the unsaved. (See 2 Cor. 6:14)


Skippy here…so right from the start you set up your self to false terminology.


http://www.bible-truth.org/race.htm


Skippy…ethnicity, ideology, nationality, tribe, what ever but, NO *racial*. Its a scam, to pit you against each other.





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Thursday, December 9, 2010

Companies Making Money






The Wall Street Journal surveyed the pre-tax earnings of the CEOs of the 456 biggest American companies and discovered that, as corporate profits have once again increased, they've made 3 percent more money overall. That doesn't sound like much, but there's an upward trend: The CEOs of the 65 companies whose fiscal year ended more recently and covered more of the recovery saw their pay increase by almost 15 percent.



The best-paid exec in the country is Liberty Media's Gregory Maffei, who made $87.1 million. Ralph Lauren came in at No. 9, making $27 million. The story also comes with an interactive graphic decoding the jargon that companies use on financial statements to justify paying so much.



The Year's Top Ten Highest Paid CEOs

How To Read A Proxy Statement

Paychecks for CEOs climb





You wanna know what the mother of all bubbles was? Us. The human race.”


That’s Gordon Gekko in the distinctly-mediocre Wall Street: Money Never Sleeps.


This weekend brought a rush of stories about a “bubble” that may or may not be re-inflating in Silicon Valley. The New York Times kicked it off, venture capitalist Fred Wilson (who is featured prominently in the story) quickly responded, and then Newsweek weighed in just to make sure the “Bubble 2.0″ moniker was secure. Uh oh, right? Not so fast.


One giant nugget of information in the NYT piece (co-written by TechCrunch alum Evelyn Rusli) is a bit buried:


For starters, this is not a stock market bubble. None of the companies are publicly traded.


In other words, if this “bubble” were to pop, it wouldn’t be the mothers and fathers of the world hoping to put their children through school who would be getting screwed. It would be the private investors. It would be a handful of (mostly) rich people who would be out of some of their money.


I suppose the employees of the collapsing startups could also be screwed somewhat. But they’d undoubtedly find work again quickly. And the founders would start new companies. Just like after the first bubble.


Business Insider has a good rundown of the actually public tech companies — you know, the kind mom and pop can and do actually invest in. The consensus there? Pretty wonderful, actually. Not over-the-top outrageous, just very solid for the most part.


Now, that doesn’t mean a “Bubble 2.0″ couldn’t pop and adversely affect the overall ecosystem. In fact, I’m sure it would to some extent, mainly because less money coming in would mean less innovation across the board. But it wouldn’t cause everything to collapse.


We all just lived through a very real bubble. The housing bubble. The results of it popping almost completely brought down not only our own economy, but much of the world’s economy as well. Real people lost their life savings. People went to jail. More people should have been locked up forever. It’s almost insulting to mention this supposed new web bubble in the same breath as that.


Again, this “Bubble 2.0″, if it does exist, is mainly just troublesome for investors. Smaller angel investors, in particular, are getting squeezed out of deals because early stage valuations are getting ridiculously high in some cases.


Undoubtedly it’s true that some of those startups should not be accepting so much money at such valuations, but that’s on them. If they fail, it will be a lesson to other startups. Maybe the motto is: go big and go home (at least in the early stage).


Another underlying current here is that many private investors aren’t comfortable with the state of the startup ecosystem. And yet many of them continue to do deals that they may not be comfortable with. Again, that’s on them. They’re all doing due diligence. If they don’t think a deal is worth it, they obviously shouldn’t do it. But some don’t seem to be able to turn down their name being attached to a high-profile investment — even if projections have it panning out to be a 2x exit. (The horror!)


Maybe some of them would actually be more comfortable investing in what Wilson calls “The Mess“. That is, startups in their awkward years. They’re neither new and sexy nor mature and money-making. Not surprisingly, no one seems to want to invest in those, besides current investors. But maybe those are where some deals are to be found.


In the press, there are two kinds of sexy stories to write: over-exuberance and death. We just got done with a week’s worth of over–exuberance surrounding the Google/Groupon deal. Holy shit, $6 billion dollars for a company that has only really been at it for a little over a year? That’s awesome! Let the good times roll.


The deal ultimately fell apart and in came the death stories. There needs to be balance in the world, after all. We know this just as well as anyone. The $6 billion Groupon deal made web investing as hot as the sun for a few days. And now it’s a bubble.


But wait. “Bubble 2.0″ has existed before. Here it is in 2005 — with Wilson worrying about some of the same things he’s still worried about. And here it is again in 2007 — with John Dvorak worrying that social media among other things would pop the bubble. And wasn’t it for sure a bubble later that year when Microsoft invested in Facebook at a $15 billion valuation? I was sure I heard that over and over and over again. Turns out, that was a pretty damn awesome investment, strategic or not.


There are dozens of other examples as well.


So maybe this is actually “Bubble 4.0″ or “Bubble 5.0″. Or maybe it’s not a big bubble at all. After all, if it pops and gum gets over only a few faces, will anyone do anything other than point and laugh, then go on with their lives?


[image: 20th Century Fox]



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