Category: Books

Banks Often Less Transparent and Less Flexible than Bank Alternatives

I saw a C-Span interview on their weekend Book TV today (3/16/17), with Professor Lisa Servon. She pointed out that many of the highly regulated, and much-criticized, alternative banking services, offer a more transparent, more flexible, and more friendly service environment than the incumbent banking industry. She even argues that for those with low-incomes, and low-education, the alternative services are often less expensive. This happens because those with low-incomes and low education are often those who by mistake or by difficult circumstance, incur high fees at banks.
She points out that many who are bankless, previously made use of bank services, but decided to go with the alternatives. She suggested that in a free market environment, some of the alternatives might creatively destroy the incumbent banks.
Servon is clearly no libertarian, but much of what she says is thought-provoking.

Servon’s book is:
Servon, Lisa. The Unbanking of America: How the New Middle Class Survives. New York: Houghton Mifflin Harcourt Publishing Co., 2017.

“Death Has Never Made Any Sense to Me”

(p. 10) . . . , Kinsley is intent on being wryly realistic about coping with illness and the terminal prospects ahead. He makes fun of a fellow boomer, Larry Ellison, the C.E.O. of Oracle, who has spent millions in a quest for eternal life, and who was quoted as saying, “Death has never made any sense to me.” Kinsley quips: “Actually the question is not whether death makes sense to Larry Ellison but whether Larry Ellison makes sense to death. And I’m afraid he does.”

For the full review, see:
PHILLIP LOPATE. “Senior Moments’.” The New York Times Book Review (Sun., APRIL 24, 2016): 10.
(Note: ellipsis added.)
(Note: the online version of the review has the date APRIL 18, 2016, and has the title “Michael Kinsley’s ‘Old Age: A Beginner’s Guide’.”)

The book under review, is:
Kinsley, Michael. Old Age: A Beginner’s Guide. New York: Tim Duggan Books, 2016.

Under Communism Inventiveness Did Not Yield Economic Benefits

(p. A17) The Soviet Union may have pioneered in space with Sputnik and Yuri Gagarin, but today Russia has less than 1% of the world commercial market in space telecommunications, the most successful commercial product so far stemming from space exploration. Russians may have won Nobel Prizes for developing the laser, but Russia today is insignificant in the production of lasers for the world market. Russians may have developed the first digital computer in continental Europe, but who today buys a Russian computer? By missing out on the multi-billion-dollar markets for lasers, computers and space-based telecommunications, Russia has suffered a grievous economic loss.
Accompanying this technical and economic failure was a human tragedy. Russian achievements in science and technology occurred in an environment of political terror. The father of the Russian hydrogen bomb, Andrei Sakharov, wrote in his memoirs that the research facility in which he worked was built by political prisoners, and each morning he looked out the window of his office to see them marching under armed guard to their construction sites. The “chief designer” of the Soviet space program, Sergei Korolev, was long a prisoner who worked in a special prison laboratory, or sharashka. The dean of Soviet airplane designers, A.N. Tupolev, also labored for years as a prisoner in a special laboratory. Three of the Soviet Union’s Nobel Prize-winning physicists were arrested for alleged political disloyalty. Probably half of the engineers in the Soviet Union in the late 1920s were eventually arrested. In 1928 alone 648 members of the staff of the Soviet Academy of Sciences were purged.
When one looks at these statistics and at the genuine achievements of Soviet science, one is forced to ask basic questions about the relation of freedom to scientific progress.
. . .
Mr. Ings admirable effort to reach nonspecialized readers sometimes leads him to make exaggerated statements. He claims that we have “good agricultural and climate data for Russia going back over a thousand years” when in fact the data is incomplete and unreliable.
. . .
The claim that the Soviet Union was a scientific state brings Mr. Ings close, in his conclusion, to condemning science itself. He sees science and technology as causing a coming global ecological collapse, and he thinks that in some ways the demise of the Soviet Union was a preview of what we will all soon face. In one of his final sentences he says: “We are all little Stalinists now, convinced of the efficacy of science to bail us out of any and every crisis.” “Stalin and the Scientists” deserves attention, but a very critical form of attention. It is based on an impressive amount of study, and most readers will learn a great deal. It is, however, incomplete and overdrawn.

For the full review, see:
LOREN GRAHAM. “BOOKSHELF; No Good Deed Went Unpunished.” The Wall Street Journal (Tues., Feb. 21, 2017): A17.
(Note: ellipses added.)
(Note: the online version of the review has the date Feb. 20, 2017, and has the title “BOOKSHELF; Science Under Stalin.”)

The book under review, is:
Ings, Simon. Stalin and the Scientists: A History of Triumph and Tragedy, 1905-1953. New York: Atlantic Monthly Press, 2017.

“The Powers of a Man’s Mind Are Directly Proportioned to the Quantity of Coffee He Drinks”

(p. C9) . . . certain aspects of 18th-century Parisian life diluted the importance of sight. This was, after all, a time before widespread street lighting, and, as such, activities in markets (notably Les Halles) were guided as much by sound and touch as by eyes that struggled in the near dark conditions. Natural light governed the lives of working people, principally because candles were expensive. Night workers–such as baker boys known as “bats,” who worked in cheerless basements–learned to rely on their other senses, most notably touch.
. . .
“For Enlightenment consumers, a delicious food or beverage had more than just the power of giving a person pleasure,” writes Ms. Purnell; taste, it was held, could influence personality, emotions and intelligence. Take coffee, “the triumphant beverage of the Age of Enlightenm ent.” Considered a “sober liquor,” it stimulated creativity without courting the prospect of drunkenness. Sir James Mackintosh, the Scottish philosopher, believed that “the powers of a man’s mind are directly proportioned to the quantity of coffee he drinks.” Voltaire agreed and supposedly quaffed 40 cups of it every day. Taste was also gendered: Coffee was deemed too strong for women; drinking chocolate was thought more suitable.

For the full review, see:
MARK SMITH. “The Stench of Progress.” The Wall Street Journal (Sat., MARCH 11, 2017): C9.
(Note: ellipses added.)
(Note: the online version of the story has the date MARCH 10, 2017.)

The book under review, is:
Purnell, Carolyn. The Sensational Past: How the Enlightenment Changed the Way We Use Our Senses. New York: W. W. Norton & Company, 2017.

Panopticon: “Bentham’s Most Infamous Idea”

(p. C6) Perhaps the most fascinating chapter of the book, highlighting Mr. Crawford’s ability to mix philosophy and reporting, is the one about the panopticon. The idea of an annular building with a central observation tower was conceived by the philosopher Jeremy Bentham (1748-1832). The utilitarian is known most superficially by students of and visitors to University College, London, as the eccentric who willed that, after his death, his body be preserved seated on a chair in a glass case.
Mr. Crawford fleshes out the story, noting that, in fact, the smartly dressed Bentham figure that sits inside a glass display case today is actually a skeleton of the man, his head a wax replica of the real one that did not survive the preservation process. When I was a regular at University College one summer, I was told that the cabinet holding the “Auto-Icon” (Bentham’s term) was rolled over to the lecture hall on occasion, something that I don’t recall witnessing.
The author’s real purpose in discussing Bentham’s most infamous idea is to describe the utopian–or dystopian, depending upon one’s point of view–concept. In one embodiment, it took the form of a rimless wagon wheel, in which someone situated at the hub could oversee activities in all directions, making the layout ideal for insuring that workers in a factory did not take more breaks than allowed, inmates did not misbehave in a prison or students did not cheat on an exam.
Bentham’s insight was that the mere fact that those being observed knew that they were being watched would cause them to alter their behavior for the better. Could Bentham have imagined that his idea would form the foundation of our surveillance society? Looking at our culture today–with its CCTV, smartphones and so on–to some it surely seems that we live in a permanent panopticon. “All this,” Mr. Crawford writes, “from a ‘simple idea in architecture.’ “

For the full review, see:
HENRY PETROSKI. “What Goes Up.” The Wall Street Journal (Sat., MARCH 11, 2017): C6.
(Note: ellipses added.)
(Note: the online version of the story has the date MARCH 10, 2017, and has the title “The Lives and Deaths of History’s Greatest Buildings.”)

The book under review, is:
Crawford, James. Fallen Glory: The Lives and Deaths of History’s Greatest Buildings. New York: Picador, 2017.

Brits Saw America “as a Place to Dump Their Human Waste”

(p. 11) . . . , Isenberg — a historian at Louisiana State University whose previous books include a ­biography of Aaron Burr — provides a cultural ­history of changing concepts of class and inferiority. She argues that British colonizers saw their North American empire as a place to dump their human waste: the idle, indigent and criminal. Richard Hakluyt the younger, one of the many colorful characters who fill these pages, saw the continent as “one giant workhouse,” in ­Isenberg’s phrase, where the feckless poor could be turned into industrious drudges.

For the full review, see:
THOMAS J. SUGRUE. “‘Hicks’ and ‘Hayseeds’.” The New York Times Book Review (Sun., JUNE 26, 2016): 11.
(Note: ellipsis added.)
(Note: the online version of the review has the date JUNE 24, 2016, and has the title “A Look at America’s Long and Troubled History of White Poverty.”)

The book under review, is:
Isenberg, Nancy. White Trash: The 400-Year Untold History of Class in America. New York: Viking, 2016.

Muzzled Chinese Historian Dares to Publish Truth of Cultural Revolution

(p. 7) BEIJING — It seemed that China’s censors had finally muzzled Yang Jisheng, the famed chronicler of the Mao era. Last year, he had finished writing a widely anticipated history of the Cultural Revolution. But officials warned him against publishing it and barred him from traveling to the United States, he has said, and he stayed muted through the 50th anniversary of the start of that bloody upheaval.
Now Mr. Yang has broken that silence with the publication of his history of the Cultural Revolution, “The World Turned Upside Down,” a sequel to “Tombstone,” his landmark study of the famine spawned by Mao’s policies in the late 1950s. The 1,151-page book is the latest shot fired in China’s war over remembering, or forgetting, the dark side of its Communist past, a struggle that has widened under the hard-line president, Xi Jinping.
“I wrote this book to expose lies and restore the truth,” Mr. Yang writes in the book, which has been quietly published in Hong Kong, beyond the direct reach of Chinese censors. “This is an area that is extremely complicated and risky, but as soon as I entered it, I was filled with passion.”
Since Mr. Xi took power in 2012, the Communist Party authorities have denounced historians who question the party’s lionization of its past and exhume grim events like the Cultural Revolution, which Mao started in 1966, opening a decade of purges and bloodshed.
Tens of millions were persecuted and perhaps a million or more people were killed in that convulsive time. But officials say dwelling on such events is subversive “historical nihilism” aimed at corroding the party’s authority.

For the full story, see:
CHRIS BUCKLEY. “Historian’s New Mao Book Turns Acclaim in China to Censure.” The New York Times, First Section (Sun., JAN. 22, 2017): 7.
(Note: the online version of the story has the date JAN. 21, 2017, and has the title “Historian’s Latest Book on Mao Turns Acclaim in China to Censure.”)

The English translation and condensation of Mr. Yang’s earlier book, is:
Yang, Jisheng. Tombstone: The Great Chinese Famine, 1958-1962. Translated by Stacy Mosher and Guo Jian. New York: Farrar, Straus and Giroux, 2012.

China’s “Ruthless” One Child Policy Forced Some Women to Have Abortions

(p. 15) Deng Xiaoping, China’s leader after 1978, had set a target of quadrupling the country’s per capita national income by 2000. China’s planners decided that they could achieve this goal only if, in addition to increasing the size of the pie, there were fewer people to share it.
So they determined, in their words, to “adjust women’s average fertility rate in advance.” The man who ran the program that treated women as if they were production functions was a rocket scientist, Song Jian, who had worked on ballistic missiles. Song went on to help manage the giant Three Gorges Dam on the Yangtze River. His was a world in which unintended consequences were not important.
Population control was not unusual in the 1980s. India also had a fertility-­control program. The United Nations gave its first-ever population award to the Chinese minister for population planning in 1983 (along with Indira Gandhi). But China’s application of population control was particularly ruthless.
In 2012, Feng Jianmei, a factory worker pregnant with her second child, was taken to a clinic, forced to sign a document consenting to an abortion and injected with an abortifacient. She was in her seventh month. Pictures of her lying next to her perfectly formed seven-month dead fetus went viral. But hers was hardly an unusual case. In the 1990s, population targets became a major criterion for judging the performance of officials. It is no surprise that they carried out the one-child policy ruthlessly. Reading this account, one wonders why rape as a weapon of war is (rightly) seen as a war crime, whereas the forcible violation of women’s bodies in pursuit of government policy wins United Nations awards.

For the full review, see:
JOHN PARKER. “Little Emperors.” The New York Times Book Review (Sun., JAN. 10, 2016): 15.
(Note: the online version of the review has the date JAN. 8, 2016, and has the title “”One Child,’ by Mei Fong.”)

The book under review, is:
Fong, Mei. One Child: The Story of China’s Most Radical Experiment. Boston, MA: Houghton Mifflin Harcourt, 2016.

Walt Disney “Tossed Out the Corporate Playbook”

(p. 4) Here is something that might surprise you: Walt Disney, that icon of American ingenuity, was in financial straits through most of his career. You probably thought he would have been a business genius — a model for others to study. But Disney was an atrocious businessman, constantly running his company into the ground. At the same time, though, he was a corporate visionary whose aversion to typical business practices led to the colossus that the Walt Disney Company became.
. . .
Disney could have expanded the company steadily, building on the success of Mickey Mouse. Instead, he placed a huge and highly risky bet on feature animation. “Snow White” was four years in production and cost over $2 million ($33.5 million in today’s dollars), most of it borrowed from Bank of America against the receipts of the cartoon shorts. The gamble paid off. “Snow White” earned nearly $7 million ($117 million today), most of which he immediately sank into a new studio headquarters in Burbank, Calif., and a slate of features.
. . .
He didn’t care one whit about money. Even his wife, Lillian, complained that she didn’t understand why he didn’t have more of it. After all, she said, he was Walt Disney. Had he not been the studio’s creative force, had the studio not been so closely identified with him, he almost certainly would have been ousted. As it was, both the bankers and his brother pressured him to rein in his ambitions and compromise on the quality of his films.
. . .
And though Disney’s capriciousness and constant reinvention of his company drove his brother and others crazy, it also kept re-energizing the Disney studio and led, in 1955, to Disneyland — a triumph that at last put the company on solid financial footing. Not incidentally, Disneyland sprang from another of Disney’s beliefs: that it was hard to wring greatness from a bureaucracy. He and his team designed the park as a separate entity from the studio, WED Enterprises.
None of this would have been possible without Roy Disney’s understanding that his primary job was to realize his brother’s dreams. He was the businessman whom Disney needed to deal with other businessmen. Walt Disney, at his core, was an artist who tossed out the corporate playbook and operated, as artists usually do, by inspiration. In the end, the company flourished precisely because Disney was such an indifferent businessman.

For the full commentary, see:
NEAL GABLER. “A Visionary Who Was Crazy Like a Mouse.” The New York Times, SundayBusiness Section (Sun., SEPT. 13, 2015): 4.
(Note: ellipses added.)
(Note: the online version of the commentary has the date SEPT. 12, 2015, and has the title “Walt Disney, a Visionary Who Was Crazy Like a Mouse.”)

Some of what Gabler discusses in the commentary quoted above, is also discussed in his biography of Disney:
Gabler, Neal. Walt Disney: The Triumph of the American Imagination. 1st ed. New York: Alfred A. Knopf, 2006.

Lenin Sought to Enserf the Soul

(p. B11) Mr. Navrozov’s contempt for Lenin, the leader of the Bolshevik Revolution, and Stalin, his brutal successor, arose out of intellectual loathing, not of a personal history of exile or repression. In his book, “The Education of Lev Navrozov: A Life in the Enclosed World Once Called Russia” (1975), he described Lenin as a “barbarian” unworthy of his country’s deification.
“He had to enserf every soul psychologically,” he wrote. “He had to destroy inside every soul all the psychology of independence that had been accumulating throughout the history of Russia.”
The book, which was partly autobiographical, was praised by the philosopher Sidney Hook and the historian Robert K. Massie.
. . .
. . . , Saul Bellow, in his novel “More Die of Heartbreak” (1987), placed Mr. Navrozov among the dissident writers Aleksandr Solzhenitsyn, Vladimir Maximov and Andrei Sinyavsky as “commanding figures, men of genius, some of them.”
. . .
. . . , [Navrozov] cautioned that the Affordable Care Act was reminiscent of Soviet-socialized medicine. “Obamacare will destroy the delicate fabric of existing free-market medical services,” he wrote in 2012 on Newsmax.

For the full obituary, see:
RICHARD SANDOMIR. “Lev Navrozov, Literary Translator and Soviet Dissident, Dies at 88.” The New York Times (Tues., FEB. 14, 2017): B11.
(Note: ellipses, and bracketed word, added; italics in original.)
(Note: the online version of the obituary has the date FEB. 9, 2017.)

The Navrozov book mentioned above, is:
Navrozov, Lev. The Education of Lev Navrozov: A Life in the Closed World Once Called Russia. New York: Harper’s Magazine Press, 1975.

Wall Street Needs Return to Partnership Culture

(p. A17) Ever since the crisis of 2008, banks have been subject to ferocious attack and more regulation. In “Why Wall Street Matters,” William Cohan, the author of earlier books on Goldman Sachs and Lazard Frères, mounts a defense of Wall Street banking institutions and argues that much of the regulation after 2008 has been counterproductive. In his view, the main culprit in the financial meltdown was Wall Street’s compensation culture, and he presents some controversial proposals to reform it.
. . .
So what went wrong? Where did useful innovation morph into lunacy that almost brought down the whole system? The sea change began in 1969, Mr. Cohan says, when the first investment bank (Donaldson, Lufkin & Jenrette) sold equity to the public. Previously investment banks were partnerships whose capital came from the net worth of the individual partners, who would assume only the most modest risk since investment failure might endanger their life savings. But once a firm’s capital could be increased by debt and equity financing–in essence, by other people’s money–the calculus shifted.
. . .
Mr. Cohan’s solution is to replace Wall Street’s broken compensation system: the bonus culture that creates incentives to take big bets with other people’s money while avoiding accountability when the bets go bad. He says that we need to “return to a compensation system that more closely resembles that of the partnership culture” of earlier times. Going well beyond calls for a claw-back of bonuses when trouble hits, Mr. Cohan proposes that the leaders of Wall Street firms be required to put their entire net worth on the line. Their co-op apartments, houses in the Hamptons, art collections and bank accounts would all be “fodder for the bank’s creditors” if something goes wrong.

For the full review, see:
Burton G. Malkiel . “BOOKSHELF; Big Bonus, Big Problem; Dodd-Frank and the Volcker Rule address the wrong problems and did nothing to fix Wall Street’s broken compensation culture.” The Wall Street Journal (Weds., March 1, 2017): A17.
(Note: ellipses added.)
(Note: the online version of the review has the date Feb, 28, 2017.)

The book under review, is:
Cohan, William D. Why Wall Street Matters. New York: Random House, 2017.