The Orthodox Establishment Did Not Understand Michael Milken’s Brilliantly Disruptive Innovations

(p. C13) I . . . ended [the year] with . . . with Richard Sandler’s “Witness to a Prosecution: The Myth of Michael Milken.”

. . .

Mr. Milken’s brilliance led to investments in companies that the “establishment” ignored. When those companies generated outsize returns, there was more interest in trying to find wrongdoing than in understanding his innovative approach to investing.  . . . disrupting established orthodoxies is difficult and . . . the rules established by social structures are riddled with biases that can end up undermining the public good.

For the full review, see:

Nina Rees. “12 Months of Reading: Nina Rees.” The Wall Street Journal (Saturday, December 9, 2023): C13.

(Note: ellipses, and bracketed words, added.)

(Note: the online version of the review has the date December 8, 2023, and has the title “Who Read What in 2023: Political Voices and Policy Makers: Nina Rees.”)

The new book on Michael Milken praised above is:

Sandler, Richard V. Witness to a Prosecution: The Myth of Michael Milken. ForbesBooks: Charleston, South Carolina, 2023.

A book on Milken that I found convincing many years ago is:

Kornbluth, Jesse. Highly Confident: The Crime and Punishment of Michael Milken. New York: William Morrow & Co., 1992.

Nebraska Interest Cap Regulation Reduced Consumer Payday Loan Options

(p. A1) Nebraska’s payday lenders have all shut down in the two years since voters capped the interest rate they could charge.

The last handful gave up their delayed-deposit services business licenses in December [2021], according to records kept by the Nebraska Department of Banking and Finance.

Just six months earlier, there had been 19 such businesses.

. . .

. . ., Ed D’Alessio, executive director of INFiN, a national trade association representing delayed-deposit businesses, said the closures were predictable, based on the experience of other states that have imposed similar rate caps.

“Nebraska’s 36% rate cap on delayed-deposit loans was never about consumer protection,” he said. “It was about activists’ thinly veiled desire to eliminate a regulated service valued by many.

“But Nebraskans’ need for credit did not go away. Instead, they have been left with fewer options for managing their financial obligations,” D’Alessio said.  . . .

Payday loans, also known as cash advances, check advances or delayed-deposit loans, are a type of short-term, high-cost borrowing that people use to get small amounts of immediate cash.

For the full story, see:

Martha Stoddard. “Payday Lenders Disappear From State After Rate Cap.” Omaha World-Herald (Tuesday, Sept 13, 2022): A1-A2.

(Note: ellipses, and bracketed year, added.)

(Note: the online version of the story was updated Oct. 18, 2023 [sic], and has the title “Payday lenders disappeared from Nebraska after interest rate capped at 36%.”)

Cancer “Vaccines Are Probably the Next Big Thing”

(p. A5) “Vaccines are probably the next big thing” in the quest to reduce cancer deaths, said Dr. Steve Lipkin, a medical geneticist at New York’s Weill Cornell Medicine, who is leading one effort funded by the National Cancer Institute. “We’re dedicating our lives to that.”

For the full story, see:

ARLA K. JOHNSON, Associated Press. “Vaccine Against Cancer Could Be Closer Than Ever.” Omaha World-Herald (Sunday, July 9, 2023): A11.

(Note: bracketed date added.)

(Note: the online version of the story was updated Nov 2, 2023, and has the title “The next big advance in cancer treatment could be a vaccine.”)

Biden’s Centrally Planned Cancer “Moonshot” Funds Surgery as Key to a Cure

(p. A5) WASHINGTON — President Joe Biden’s administration on Thursday [July 27, 2023] announced the first cancer-focused initiative under its advanced health research agency, aiming to help doctors more easily distinguish between cancerous cells and healthy tissue during surgery and improve outcomes for patients.

The administration’s Advanced Research Projects Agency for Health, or ARPA-H, is launching a Precision Surgical Interventions program, seeking ideas from the public and private sectors to explore how to dramatically improve cancer outcomes in the coming decades by developing better surgical interventions to treat the disease.

. . .

The initiative could markedly improve cancer treatments and make scientific breakthroughs that have as yet unknown applications, said Arati Prabhakar, director of the White House Office of Science and Technology.

“What’s true is that many cancer treatments still start with surgery,” she told The Associated Press in an interview. “So being really smart and attacking and developing new technology to make that first step better could really revolutionize how we are able to treat cancer for so many Americans.”

For the full story, see:

ZEKE MILLER Associated Press. “Cancer Research Initiative Part of Biden ‘Moonshot’.” Omaha World-Herald (Friday, July 28, 2023): A5.

(Note: ellipsis, and bracketed date, added.)

(Note: the online version of the story was updated Nov. 2, 2023, and has the title “Biden announces an advanced cancer research initiative as part of his ‘moonshot’ effort.”)

FTX Fraudster Sam Bankman-Fried Gave “More Than $5 Million” to Biden’s Winning 2020 Presidential Campaign

Bankman-Fried was convicted of fraud on November 2, 2023.

(p. B4) On the same day that Sam Bankman-Fried’s trial on federal fraud charges begins, the best-selling author Michael Lewis is set to publish a widely anticipated book on Tuesday [Oct. 3, 2023] about Mr. Bankman-Fried’s failed cryptocurrency exchange, FTX.

Mr. Lewis, the author of “The Blind Side,” “The Big Short” and “Moneyball,” spent months interviewing Mr. Bankman-Fried and other top FTX executives, and had access to the company’s headquarters in the Bahamas for the book, “Going Infinite.”

The book features previously unreported details about Mr. Bankman-Fried’s empire, from its founding in the Bay Area to its epic collapse in the Bahamas last year. Here are some takeaways.

. . .

Mr. Bankman-Fried started his first company, the hedge fund Alameda Research, alongside Tara Mac Aulay, an Australian mathematician who moved in the same philanthropic circles.  . . .

According to the book, Ms. Mac Aulay grew to consider Mr. Bankman-Fried “dishonest and manipulative,” and other senior figures at Alameda accused him of mismanagement.

. . .

When FTX was thriving, Mr. Bankman-Fried became a prolific political donor, contributing more than $5 million to Joseph R. Biden Jr.’s 2020 presidential election effort.

For the full story, see:

David Yaffe-Bellany. “Takeaways From a New Book on Sam Bankman-Fried.” The New York Times (Tuesday, October 3, 2023): B4.

(Note: ellipses, and bracketed date, added.)

(Note: the online version of the story has the date October 2, 2023, and has the same title as the print version. Where the online version has more detailed wording, the passages quoted above follow the online version.)

The book reporting new details on the FTX debacle is:

Lewis, Michael. Going Infinite: The Rise and Fall of a New Tycoon. New York: W. W. Norton & Company, Inc., 2023.

Highly-Taxpayer-Subsidized Lincoln Airline Collapses After Three Months

The “American Rescue Plan Act” was also called the “Covid-19 Stimulus Package” or the “American Rescue Plan.” (To paraphrase Shakespeare on a rose: a “boondoggle” by any other name smells just as foul.)

(p. B2) LINCOLN — Red Way, the startup airline that had been providing service from Lincoln to destinations such as Las Vegas and Orlando, is ceasing operations at the end of the month.

. . .

The Lancaster County Board issued a written statement Wednesday [Aug. 23, 2023], saying it “is deeply disappointed and troubled at this unexpected and sudden turn of events.”

The board said there are “many unanswered questions regarding the Red Way project, (and it) looks forward to receiving a full accounting of this situation as the Lincoln Airport Authority charts a new path forward to serve our community.”

Board member Matt Schulte lamented the $3 million in lost American Rescue Plan Act funds — $1.5 million each from Lancaster County and the City of Lincoln — but called the air travel experiment a chance worth taking.

“I personally voted for this project believing that the air service would develop long term service,” he said. “Unfortunately, it didn’t work. I hope this failed experiment does not have a negative impact on the ability to expand service to the city of Lincoln.”

. . .

Airport officials had seemed optimistic about the airline’s prospects, noting that it had sold 10,000 tickets in just its first two weeks of operation.

In fact, Red Way flew just over 13,000 total passengers in June and July.

But cracks had started to show recently.

Red Way announced in July that it was dropping seasonal flights to Atlanta, Austin and Minneapolis in early August, months earlier than planned, because of poor ticket sales. That news came just two days after the airline had announced new flights to Tampa and Phoenix over the winter months.

Nick Cusick, who resigned from the Airport Authority Board in July after serving more than 10 years, confirmed to the Lincoln Journal Star on Wednesday that Red Way had already burned through most of a $3 million incentive fund provided through ARPA dollars.

It used more than $900,000 in the first month and it withdrew even more in the second month, Cusick said.

For the full story, see:

MATT OLBERDING, Lincoln Journal Star. “Red Way Airline Ceasing Operations.” Omaha World-Herald (Thursday, Aug. 24, 2023): B2.

(Note: ellipses, and bracketed date, added.)

(Note: the online version of the story was updated Sept. 30, 2023, and has the title “Lincoln’s Red Way ceasing operations less than 3 months after inaugural flight.”)

If Regulators Allow, Improved Photosynthesis Can Feed More of the Poor Using Less Land

(p. A13) For decades, scientists have pursued a tantalizing possibility for bolstering food supplies and easing hunger for the world’s poorest: improving photosynthesis, the biological process in plants that sustains nearly all life on Earth.

Now, researchers say that by using genetic modifications to increase the efficiency of photosynthesis, they significantly increased yields in a food crop, soybeans, providing a glimmer of potential that such methods could someday put more food on tables as climate change and other threats make it harder for vulnerable populations across the globe to feed their families.

. . .  Their methods will also have to pass muster with government regulators before crops transformed this way will ever reach farmers’ fields.

. . .

Without major changes to agriculture, governments’ targets for mitigating climate change are at risk, scientists warn. Yet addressing malnutrition and hunger in the short term might require pressing more land and other resources into service, which could accentuate warming.

That is why scientific advancements that could help us produce more nourishment without using more land, whether by improving photosynthesis or otherwise, hold such promise.

. . .

The new research in Illinois focuses on “non-photochemical quenching,” a mechanism in plants that protects them from sun damage. When plants are in bright sunlight, they often receive more light energy than they can use for photosynthesis. This mechanism helps them shed the excess energy harmlessly as heat. But after the plant is shaded again, it doesn’t stop very quickly, which means the plant wastes precious time and energy that could be put toward producing carbohydrates.

The researchers’ genetic transformations help plants adjust more quickly to shade. In multilayered plants like rice, wheat, maize and soy, this extra nimbleness could theoretically increase photosynthesis in the middle layers of leaves, which are constantly flitting between sunlight and shadow during the day.

For the full story, see:

Raymond Zhong and Clare Toeniskoetter. “Researchers Alter Genes To Refine Photosynthesis And Improve Crop’s Yield.” The New York Times (Friday, August 19, 2022): A13.

(Note: ellipses added.)

(Note: the online version of the story has the date Aug. 18, 2022, and has the title “Scientists Boost Crop Performance by Engineering a Better Leaf.”)

To Force Use of Organic Farming, Government Banned Chemical Fertilizers; A Ban Which “Devastated” Crops and “Destroyed the Farmers”

(p. A6) GALENBINDUNUWEWA, Sri Lanka—For more than half a century, Pahatha Mellange Jayaappu has tilled the field on his modest farm in Sri Lanka’s agricultural heartland, unswayed by recurrent political and economic turmoil.

Now the 71-year-old is just trying to eke out enough of a harvest to feed his family after an abrupt ban on chemical fertilizers last year devastated his crops. He says he has given up on planting for profit.

“We have lived through armed insurrections and bad government policies,” Mr. Jayaappu said. “This is the worst year I’ve ever seen. They have destroyed the farmers.”

Many Sri Lankans aren’t getting enough to eat, and farmers and agricultural experts say the food shortages are set to worsen. The government reversed the ban in November and promised fresh supplies of chemical fertilizers, but farmers said many received only a small amount, and too late for the current growing season.

. . .

The ban on imports of agricultural chemicals took effect in May 2021, and the rice harvest the following March was down 40%, according to government data. Prices soared. Sri Lanka, which had been largely self-sufficient in rice, was forced to use some of its fast-dwindling foreign reserves to import the key staple. Other crops, like tea, an important foreign-exchange earner, have also suffered. In May, the country defaulted on its external debt.

. . .

Mr. Wickremesinghe was installed by Parliament last month after his predecessor, Gotabaya Rajapaksa, fled the country and resigned in the face of mass protests over fuel shortages and food prices.  . . .

Mr. Rajapaksa billed the ban as a nationwide shift to organic farming, but agricultural experts say that requires a yearslong transition. Opposition lawmakers said cutting off imports of fertilizer, which the government heavily subsidizes for farmers, was a shortsighted attempt to hold on to foreign reserves.

. . .

Farmers complained that the organic fertilizers that came on the market after the ban took effect were poor quality, full of material that wasn’t fully decomposed. And the haste of the ban left insufficient time to make their own compost, or learn how to farm organically.

For the full story, see:

Shan Li and Philip Wen. “Sri Lanka’s Farmers Struggle to Survive.” The Wall Street Journal (Saturday, August 20, 2022): A6.

(Note: ellipses added.)

(Note: the online version of the story was updated Aug. 19, 2022, and has the title “Sri Lanka’s Farmers Struggle to Feed the Country—and Themselves.”)

Milton Friedman Made the Case for Freedom to 15 Million Viewers

New York Times reviewer Szalai says that watching Milton Friedman’s “Free to Choose” documentary today is a surreal experience. To the contrary, I say that watching Milton Friedman’s documentary today is an exhilarating experience and watching the the evening news today is a surreal experience. (As a graduate student at the University of Chicago, I was in the audience for a couple of the episodes of Milton Friedman’s “Free to Choose” documentary.)

(p. C1) The documentary series “Free to Choose,” which aired on public television in 1980 and was hosted by the libertarian economist Milton Friedman, makes for surreal watching nowadays. Even if Ronald Reagan would go on to win the presidential election later that year, it was still a time when capitalism’s most enthusiastic supporters evidently felt the need to win the public over to a vision of free markets and minimal government.  . . .

They had an enormous audience: The 15 million viewers who watched the first episode saw an avuncular Friedman (diminutive and smiling), leaning casually against a chair in a Chinatown sweatshop (noisy and crowded), surrounded by women pushing fabric through clattering sewing machines. “They are like my mother,” Friedman said, gesturing at the Asian women in the room. She had worked in a factory too, after immigrating as a 14-year-old from Austria-Hungary in the late 19th century. Friedman explained that these low-wage garment workers weren’t being exploited; they were gaining a foothold in the American land of plenty. The camera then cut to a tray of juicy steaks.

For the full review, see:

Jennifer Szalai. “Sounding an Alarm Over America’s Values.” The New York Times (Saturday, February 18, 2023): C1 & C4.

(Note: ellipsis added.)

(Note: the online version of the review was updated Feb. 17, 2023, and has the title “Is the Marriage Between Democracy and Capitalism on the Rocks?”)

The book based on Milton Friedman’s documentary is:

Friedman, Milton, and Rose D. Friedman. Free to Choose: A Personal Statement. New York: Harcourt Brace Jovanovich, Inc., 1980.

Public Sector Unions Make Government Unaccountable to the Will of the People

(p. A17) In 2008, six years after securing control over New York City’s public schools, Mayor Michael Bloomberg and schools chancellor Joel Klein put forward a program to tie teacher tenure to student performance. The goal was to reward the best-performing teachers with job security, encourage better student outcomes, and hold teachers accountable for demonstrated results. To most New York residents, it surely sounded like a good idea.

To New York’s teachers’ unions, however, the program was utterly unacceptable. Union leaders lobbied Albany, threatened state lawmakers (who could pass legislation binding the mayor) with the loss of political support, and walked away with a two-year statewide prohibition on the use of student test performance in tenure evaluations. In short, the union thwarted the mayor’s authority over the city’s schools and commandeered the state’s legislative power.

In this case and many others, a public-sector union served its own interests at the expense of the public’s. In “Not Accountable,” Philip Howard shows in vivid detail how such practices have made government at all levels unmanageable, inefficient and opposed to the common good. He argues that, in fact, public unions—that is, unions whose members work for the government—are forbidden by the Constitution. The argument, he notes, would have been familiar to President Franklin Roosevelt and George Meany, the longtime president of the AFL-CIO, both of whom championed private-sector labor but believed that public workers—teachers, fire fighters, policemen, civil-service employees—had no right to bargain collectively with the government.

. . .

Mr. Howard makes a persuasive case, but the chances of seeing it affect American political life are, at the moment, remote.

. . .

Still, the goal is admirable and worth pursuing. In place of public-sector collective bargaining, Mr. Howard calls for a merit-based system for hiring and evaluating government employees. Instead of stultifying work rules that thwart creativity, he envisions a public-sector structure in which employees can use their talents and judgment to improve the functioning of government. Fundamentally, Mr. Howard views the Constitution, and the law generally, as a mechanism for both action and accountability, one that entrusts powers to inevitably fallible human beings while subjecting them to the checks of others in authority and, ultimately, to the will of the people.

For the full review, see:

John Ketcham. “BOOKSHELF; Unelected Legislators.” The Wall Street Journal (Tuesday, March 14, 2023): A17.

(Note: ellipses added.)

(Note: the online version of the review was updated March 13, 2023, and has the title “BOOKSHELF; ‘Not Accountable’ Review: Unelected Legislators.”)

The book under review is:

Howard, Philip K. Not Accountable: Rethinking the Constitutionality of Public Employee Unions. Garden City, NY: Rodin Books, 2023.

Cars Give Commuters Flexible Choices Absent from Public Transit

(p. A14) Across the United States, transit systems that have relied for decades on office workers are scrambling to avoid financial collapse as commuters stay home. Many systems are asking their local governments for bailouts as federal pandemic relief runs dry, . . .

. . .

“If anyone says that they know the way out of this difficult situation, they’re fooling themselves,” said Brian D. Taylor, the director of the Institute of Transportation Studies at the University of California, Los Angeles. “This is a really challenging time.”

. . .

“You can put the New York City subway in the middle of Oklahoma and you wouldn’t have any ridership — that’s kind of the harsh reality for American transit,” Mr. Elkind said. “There’s only so much they can do with service and fares to lure riders back.”

In many cities, riders may need to go to the office only on Wednesdays. Or they want to pick up their children from school in the middle of the day or make a run to the grocery store.

For the full story, see:

Soumya Karlamangla. “With Commuters Scarce, Transit Agencies Try New Enticements.” The New York Times (Tuesday, June 20, 2023): A14.

(Note: ellipses added.)

(Note: the online version of the story has the date June 19, 2023, and has the title “With Commuters Staying Home, Transit Agencies Try to Reinvent Themselves.”)